The Sun.
London, England, 1833-06-01 00:00:00

legal tender, and relaxing the Usury Laws with respect to
bills of exchange, were undoubtedly improvements ; but
evils of the greatest magnitude remained, for which it was
not even attempted to apply a remedy. Long, varied, and
calamitous experience bad new established the fict—that
a circulating medium mainly consisting of paper money,
issued by irresponsible bodies, and convertible into cash,
at the option of the holders, was the most fluctuat-
ing, insecure, and dangetoui currency which it was
possible for a great commercial country to em.
ploy. The evils of this species of currency were
made manifest to a considerab'e extent during the crisis of
1797, which terminated in the suspension of cash-pay-
ments. It would not now be contended that the pecuni-
ary embarrassments of that period were occasioned by the
war then raging in Europe, because in 1826, when for
the five prec,ding years there had been peace with the
world, a pecuniary crisis of a still more calamitous cha-
racter occurred. The panic of 1825 and 1826, occurring
during a period of profound repose, with universal peace
abroad and perfect tranquillity at home, that panic, trace-
able to no external or intrinsic cause, had its source and
its origin in the n iture of the system itself, and in the in-
security which belonged to a paper currency, when
issued at the discretion of irresponsible bodies, and con-
vertible into cash at the option of the holder. The Bank
Directors, indeed, had stated in the evidence which they
gave before the Secret Committee of last year, that they
had at length become wise in their generation, and that,
instructed by past experi,nce, they now recognised and
acted upon the principles which they formerly repudiated,
and that in their new-burn sagacity they will avert the
recurrence of the evils which had arisen to the couktry.
But was the conduct of the Batik Directors calcu-
lated to inspire the House and country with confi-
dence in their professions? Quite the contrary.
Their new and improved rules for regulating the is-
sues of paper, so far from imparting steadiness to the
circulating medium, occasioned deep and calamitous vibra-
tions between deficiency and excess. Toe Directors stated
that their improved system commenced in 1827. Now,
in the first place, did the official accounts submitted to the
Committee tit last year establish the fact, that the new
system adopted by the Directors of the Bank of England
in 1827, hail tended to give increased steadiness and uni-
formity to the currency ? On the 27th January, the
amount of notes in circulation was 18,300,0001 ; and on
the 22d cf November, in the lollowing year, the circu-
lation had increased to 27,012,0001.; bring an increase
of bank paper in circulation to the extent of one-third, ur
up,tards of 30 per cent., and during December, 1831, to
the first week of J tnu ry, 1832, the circulation was
computtil at 16,400,0001. Now, these fluctuations in
the amount of the circulation, which have been produced
under the improved principles of 'management, which is
to give steadiness to our monet iry system, had exceeded
the fluctuations which took place before the improvement
was adopted. Between the years 1820 and 1826, the
highest circulation was 26,511,0001., and ti e lowest
16,304,000/. Thus the facts, as recorded by themselves,
showed that the fluctuations to which the circulation was
previously liaate, had increased. The practical rule of the
Bank Directors, as stated by themselves before the Com-
mittee of last year, was, when the currency was full, as
indicated by the exchanges bring at par, or about to
become uufavourable, to keep in their coffers bulli.as and
coin to the extent of one-third of their Thus
when the currency was lull, it there was 10,000 0001. of
gold in the Bank, their liabilities would be 30.000,0001.,
10,000.0001. being issued upon the deposit of gold, and
20,000,0001. upon available securities ; but supposing a
succession of bad harvests or other unfavourable events to

reduce the deposit of gold in the Bank t 5,0001., and
buypo•ing,while only this amount of treasure remained

with the Bank, the exchanges were at par, or about to
become unfavourable, then, upon the rule whicit the Bank
Directors laid down for their conduct, they would tease
to reouce their liabilities from 30,000,0001. to 15,000/.
But if abundant harvests or other favourable circuinstauces

should increase the supply of the metals in the BAuk to
J5,000,000/.2 and should the continuance of a fdvourable

exchange indicate a deficient currency, then on their own
rule the Directors would extend their issues of paper
until their liabnities became equal to 45,000,0001.
(Hear, hear.) Thus, under the new rule Of manage-
in.ot of the Bank Directors, the currency of the country
was exposed to
.the deepest vitiations. He regretted

that his Majesty's Government should have proposed the
renewal of the Bank Charter without any essential
improvement, and lest the country exposed to all the
cal.mities of an insecure and deeply fluctuating currency.
The establishment of a Government bank, issuing a fixed
amount of incontrovertible p .per, somewhat under the
%vents of the country—say 29,000,000/., and compelled,
over and above this fixed amount of incontrovertible
paper, to issue incontrovertible notes in the purchase of
gol i at the Mint price, and to receive them back again in
exchange for bullion at the saint price, then would the
circulating m-ilium be exactly on the same footing with
respect to amount and to value as if it consisted entirely of
the precious metals. The proposed bargam with the
Bank was moat improvident, and would assuredly disap.
point the just expectations of the country.
Lord ALTHORP said that it appeared that Hon.
Members had so iniaundertrood the principles on which
the Bank acted, that he could not permit the impression to

remain unanswered. It was true that the Bank of Ene-
land acted upon the principle of having bullion in their
ciiff-rs to the amount of one-child of their eircula ion,
but then that circulation ine,udsil the assets as well as
the circulation. From the way in which they managed
their circulation, when five millions was drawn from the
coffers of the Bank, the circumstance would diminish the
circulation only by five millions, and nut by fifteen
nu lions, as stited by the Hon. Alemher ; and when five
millions of bullion was paid in, it increased it in the same
proportion.
Colonel TORRENS conceited, that considering the
deposits as part of the circulation, it would tend to increase
the evil instead of diminishing it.
Sir M. W. RIDLEY inquired if country bankers, who
issued no notes would be compelled to give publicity to

their circulation, assets, and securities ? He consider,d
the plan of making five-pound Bank of England notes a
legal tender of no cone quence. It was no boon to the
c,unt,y hanks, and it was not done with their consent, or
at their requ-st.
Lord ALTHORP said that only banks of issue should
he asked to give an account of their assets and securities.
He could not see how other banks could have any circu-
lation.

Mr. BARING asked why the meisure was not extended
to Scotland as well as to England and Wales, as far as
re arded making Bank of England notes a legal tender ?
If the currency in England and Scotland were not the
same, people living on the borders of the two countries
would suffer great inconvenience.
Lord ALTHORP said that as one-pound notes were in
citculation in Scotland, the effect of this measure, if ex.
tended to that country, would be to exclude bullion alto-
gether. Admitting, therefore. as he did, that the evil. of a
ptifferent circulation in Scotland and England were great,
still he thought that the question was surrounded with
sufficient difficulty as regarded England and Wales, with
out including Scotland.

Mr. FOSTER, while he admitted that the country
banks were faulty, thought, that they were better than
the Bank of England, because they had a smaller circula
tion, with a larger proportional amount of capital. He
conceived that the plan of making Bank of England
notes legal tender, so far from diminishing, in fact greatly
increased the risk of a variation of the currency, and of
pinta: in the country.
Mr. GROTE wished to know when the discussion on
this subject would be resumed ?

Lord'ALTHORP said, on Monday se'nnight.
The CHAIRMAN of tree Committee then reported
progress, and asked leave to sit again. The House then
resumed.
__ _

Mr. BARING moved for copies of the correspondence
relative to the Bank question between the Governor of the
Bank and the Government.

Lord ALTHORP said, he should have no obj,ction to
the production of such of these papers as were to the pur-
pose; but the House would derive no benefit from the
production of all ti • correspondence, which was exces-
sively voluminous, and would tend very little to elucidate
the immediate question before the House.
Mr. BARING said be desire4snothing beyond what was
to the purpose.
SIR JOHN JEFFCOTT.
Mr. ROBINSON wished to know, with reference to
the late laatentabie affair at Exeter, whether steps had been
takees for the recall of Sir John J ffeott ?
Mr. STANLEY said, that gentleman had been only
sent out to Sierra Leone to act for a limited period, till a
successor should he appointed, which would be effected at
the'earlieto possible opportunity.
Mr. ROBINSON understood, then, that meanwhile
the judicial functions were to be performed by Sir John
Jeffcott.
Mr. STANLEY said the Hon. Member would see that
time must be allowed at any rate for communicating with
that colony before the Judge could be recalled.—(A laugh.)
Mr. O'CONNELL cou d not let this subject pass over
without allowing Sir John Jeffcott his full merit as a moat
kind, humane, and honourable man.—(Hear, hear.)

COLONIAL SLAVERY.

The order of the day having been read for the restursp•

tion of the debate on colonial slavery, and the House
having resolved itself into a Committee thereupon.
Mr_ GODSON rose for the purpose of expressing his
sentiments upon the proposed measure of Government.
He admitted that no doubt could exist as to the question
of the time having arrived at which emancipation had
become in a degree imperative. It could not be denied
that the feeling of the people of England was almost una-
nimeus on that poin,. Such being the fact, it was ad-
visable that emancipation should take place, but it was
also advisable that it should be effected in a manner which
would be beneficial to all parties interested. The question
was a most important one, and required to b. approached
with due carrion and discrimination. It was a question
which not only affected the property of the whites
in the colonies, but also their very lives. The pro•
position he would first of all set out with was this.—
that the Parliament of England had no right to super
cede the authority of the local assemblies of our colonies.
Had that House, for instance, any power to delegate to
the Assembly of Jamaica? He denied that it ever pos-
sessed such power. This position was illustrated by the
parallel instance of the conduct of the States of America
before the separation, which never recognised the authority
of the English Parliament to interfere in their internal
management, and when obedience was attempted to be
enforced, answered the demands made upon them, not by
comp iance, but by presenting the bayonet. This position
was also strengthened by the Charter granted by Charles
11., which did not require the acts of the legislatures of
the colonies to he confirmed by the P irliament of England,
but by the King only. The people of Jamaica had always
resisted any attempts to encroach upon their undoubted
rights by the Parliament of England ; anti a measure like
the present, he was sure, the English Government would
never have ventured to apply to Scotland or Ireland before
the Union, but they were emboldened to force it upon the
colonies only because they were weak and could offs but
little resistance. He hoped, however, the sense of justice
which distinguished Englishmen would operate to prevent
the consumtnation of to flagrant an act, and that they
would pause before they recognised the principle that
power constituted right. He trusted that House would
never crime to such a decision. In considering the question
as to whether the West India possessions were property or
riot property, he could not help remarking th it the Right
Hon. Secretary for the Colonies had carefully abstained
from denying the affirmative of that proposition. He
(Mr. Go..lson) c-intended that they were property in the
strictest sense. The Hon. Member then proceeded to
contend that slaves were proprty, and in support of his
argument quoted the decision of Chief Justice Holt, and
nine other Judges, in reply to a demand from the King
in Council, that " negroes were merchandise." In 1760
the planters wished to get rid of the slave trade, but Great
Britain said she could not suffer them to put a-ide a traffiic
which was so generally lucrative to the empire. Thus it
was evident, the principl, of slavery had been fostered by
the mother country. For his own part he was willing to
admit that the system was wrong from beginning to end ;
but it W 39 fer t ose who had invested it with all ike attri-
butes of property to abolish it with safety and honesty.--
(Hear, hear.) He considered the plan proposed by the
Government to be impracticable. It would be impossible
to attempt to carry it into effect without having 4,000
stipendiary magistrates in the colonies: What would the
labourers of England think when they saw that, by this
plan, it was considered that a man who worked seven
hours anti a half was entitled to a house and garden with-

out payment of rent, besides food and raimeni? And this,
too, at a time when 10 hours were proposed as the m ixi-
mum of the labour of infants! The Hon. Member expressed
his regret that the Right Hon. Secretary had not endea-
voured to conciliate the colonists, instead of helping abuse
upon them, to which the House had most complacently
listened. The West India interest had been unfairly
treated by the Right lion. Gentleman. It had been
asserted by the Right Hon. Gentleman that there were nu
saving banks in J ,maica. Tla it was true; but a saving-
bank ~ad been establ,shed at Montego, and had only been
given up because not a single negro had ever come forward
to make a deposit in it. The Right Hon. Gentleman
had also said that the negroes had decreased in proportion
as the quantity of sugar had increased, thereby producing
an impression in the country that the planters had inhu-
manly worked their slaves to death in order to obtain a
larger quantity of sugar from their estates. Nose, he
asserted that there was not the slightest foundation for
this position, and entered into some details to prove that
his assertion could not he contradicted. The Right Hon.
Gentleman had also denied that the depreciated value of
estates in J trniica was occ isioned by the agitation of this
slave question in England. Now, of what use was
such a d nial, when it was known that ever since
the year 1823, in which year this agitation con•
menced, estates had not been seetib'e in the colonies?
He (Mr. G .dson) likewise comp! 'Med that the Right
Hon. Gentleman had always referred t.. extreme cases to
create an impressi ,n against the planters, and that he
had entirely overlooked the meritorious exertions of such
colonies as had done their duty. He had collected toge-
ther all the faults of the worst colonies, and had then
spoken of them as common occurrences even in the best.
Now, this was treating the colonists with gross injustice
in a case where their lives and proper tea were abso-
lutely at stake. After several other obs,rvations, which
the impatience of the House rendered quite inaudible,
the Hon. Gentleman proceeded to comment upon the
money part of Mr. S anlev's resolutions, which he

thought would not be very palatahle either to the colo-
ni•ts or the country. He thought that the colonists were
entitled to receive a larger sun► in compensation, than the
Right Hun Secretary proposed to give them. The Right
Hon. Secretary proposed to rrise the duty on sugar from
245. t.. 27, per ca•t. Now, that additional duty of 3s.
would produce to the country a revenue of 600,0001 , and
a pinny a poundon coffee would produce 100,0001. more.
Now, ought not the House in common justice to give the
West Indians, from whose property this revenue was to be
rrise.f, and whose estates would be rendered almost value-
less by this plan, a suor equal to that which at 3 per cent.
interest would produce 700,0001. annually? He con-

tended that such a sum, which amounted to 20,000,0001.,
ought to be given them as a compensation for the loss
which they would sustain, and as an inducement to them
not to resist the law which involved them in utter
ruin. The reso'ution with which he intended to conclude

,ould embrace four distinct propositions—First of all, it
would grant immediate emancipation to the negro ; se-
condly, it would enable your resolutions to work well in
practice by concilia,ing the prejudices of the planters;
thirdly, it would provide a fund fur the raising of a capital
of 20,000.0001., which be would pay to the colonists as a
compensation ; and, fourthly, it would pledge the House
to lend 10,000 0001. to the planters on the security of the
colonies themselves. The Hon. Gentl man then moved a
resolution to the effect which we have just stated ; but we
are sorry to state that the constant interruption which he
met with in the course of his speech prevented us from
collecting the precise words in which his resolution was
couched.

Mr TANCRED then rose, but from the conversation
in the House, as well as the po•ition of the Hon Gentle-
min, we were unable to heir him distinctly. We under-
stood him to d.ffer altogether from his Hon. Friend who
preceded him as to the right of the Imperial Parliament
to legislate lor the colonies—a right which was inherent in
the legislature, was often exercised, and never abandoned.
He referred to several statutes in proof of his assertion, and
even to the Declaratory Act relative to the American tea
duties, which affirmed the right while it declared its ex-
ercise at the moment to be inexpedient. He also read the
answers to Mr. Burge, Attorney General of Jamaica, to
queries put to him as to the powers of Parliament. One of
them was, that after the passing of the Island Art, no Act
of the Bri•ish Parliament bound the colony unless it was
therein named in express words. The Hon. Gentleman then
proceeded to express his opinion that as the guilt of slavery
was common both to the legislature and the colonies, so
ought the reparation to be likewise common. Any change
front the condition of master and slave to that of master and
servant should have his support, but the change must be
gradual to be beneficial. Any sudden alteration of the
condition of slavery as now existing be should deprecate
as dangerous, and wi bout any precedent, save one, which
proved its peril. That one was St. Domingo, a colony
which produced a revenue of six millions to the mother
country in 1789, while in 1791 it was totally lost by the
course pursued. This chiefly arose from the population
being inoculated with the doctrines propagated by the
lower agents of the club of the Amis des Lois. The
Hon. Gentleman here went into a history of the revolu-
tion of St. Domingo. together with several extracts from
the various Codes Rurales, to show the necessity of cau-
tious legislation, and at the same time prove the danger of
not proceeding now to give freedom, under proper regula-
tions, to the slaves, as it was impossible to know which
had done most mischief, the decree of the French assembly
in the beginning of 1791, for slave emancipation or its
subsequent revocation in the September of the same year.
The great object now was to stimulate the industry of the
slaves, and therefore it was an exc, !lent part of the present
pl in to allow them to purchase their liberty day by day.
The Hon. Mem,er concluded by saying he would support
the resolution of the Secretary for the Colonies.
Mr. BUCKINGHAM rose amidst cries of " Question."
He said had he been in the habit of frequently trespassing
on the H-use he should nut wonder at the marks of im-
patience exhibited, but Hon. Members should recollect
that be was the only Member who proposed to abbreviate
the duration of speeches, and that he was therefore tacitly