The Sun.
London, England, 1833-06-05 00:00:00

and carriage, will be in stain quo. If anything,
our shipping will be advantaged, for the sugar
would have to he brought from the remoter
countries of China, India; or Mexico. All
this, however, is useless speculation, for we are
persuaded that the only way in which the cul-
tivation of sugar will be entirely brought to an
end is the way in which it was brought to an
end in St. Domingo; viz., by refusing emancipa-
tion too long, or by granting it in a manner cal-
culated to create discontent instead of satisfaction
and gratitude.
In the House of Commons less, if possible;
was done than in the House of Lords: Lord
EIRINGTON, with reference to the vote of the
House of Lords on Monday night, asked
whether his Majesty's Ministers intended to alter
their foreign police, Lord PALMERSTON'S
answer that they did not, must convince the
Tories in the House of Lords how need-
lessly they have shown their teeth. They
may bark and snarl, but should they ven-
ture to bite, they may perchance have a stop
put to their powers of mischief. Sir GEORGE
STAUNTON spoke for upwards of an hour, upon
the subject of the China Trade, but was inaua
dible in the gallery, and so little agreeable to the
[-louse, that at half past seven a sufficient num-
ber of Members were not left to form a House,
and it was accordingly counted out.

NEW BANK CHARTER

BANK OF ENGLAND.-(THIS DAY

The adjourned Meeting of the proprietors of Bank
Stock took place to day, fir the purpose of further consi-
dering the measures proposed by Ministers for the renewal
of the Bank Charter.
The GOVERNOR stated that since the Court last met on
Friday all the correspondence moved for by Mr. Baring
in tie House of Commons, with the Court of Directors
and the Government, had been printed for the use of the
proprietors. The reason the previous letter of Lord Althorp
bad nut been laid before the Court of Proprietors was that
the Court of Directors thought, if it had been moved for
in the House of Commons, it would not have been granted.
Mr. YOUNG submitted that the proper course to pur-
sue in the discussion of the day would be to consider each
of the points in the letter of the 2d of May seriatim.
Mr HANKET thought the question ought to be gene.
rally gone into.
Mr. RANDALL JACKSON wished to know whether the
Court of Proprietors were to take the letter of the 2d of
M,y as the basis of their proceedings, or were to take
into consideration the whole correspondence.
The GOVERNOR said the letter of the 2d of May was
to be considered as the sole basis of the discussion.
Mr. WEEDING thought the whole correspondence ought
to be taken into consideration, and was very much dis-
posed to listen to another speech from the Hon. Proprietor
who moved the resolution on Friday last.
Mr. LLOYD deprecate 4 the appearance of any difference
of opinion in the Court of Proprietors. They ha I not
met there to amuse themselves with discussions, but as
men of business, to consider a subject highly important
to the Bank and the country at large; and unless the

Court proceeded to di cuss those:subjectstvalt una

hitnity, as to the proper course of proceeding, what
would the public think of them ? On Friday last the Court
bad met for the purpose of considering the Government
p'an for the renewal of the Company's Charter. On that
occasion he had recommended to the Court of Proprietors
to accede to the Government proposition, and had moved
a resolution to that effect. To that resolution au amend-
ment bad been moved, that the consideration of the subject
should be adjourned till the papers were granted. That
having been the case, he could not permit the resolution,
and the only one now before the Court, to be supplanted
by any memo whatever. He trusted, therefore, the
Court would keep its eyes fixed on the main point in
view, and not allow itself to be led away by the sophistry
of any Hon. proprietor. He only wished to o':serve
that they were assembled, not so much for the purpose of
debate as seriously to consider what were the alternatives

left to them. The Minis!er of the Crown had recom-
mended what he thought they should adept, and

the Court of Directors had recommended the Pro.
prietors to adopt what was so proposed. Now
what were the alternatives ? If they rejected the proposi-
tions, could they imagine that that would cause a proffer
of more liberal terms?—(Hear, hear.) The only course
then to be adopted would be, that a new company would
be formed to carry on the business of the public now in
the hands of this Company. With that company, then,
they would have to compete, and it would be not only
backed by the influence and power of the Government,
but by that all-prevailing conviction that it was the
birth of necessity.—(Hear, hear, hear.) Against such
a competition he warned the Court of Proprietors.
That was the question ; and he would therefore recom-
mend that gentlemen in the discussion of it should remem.
beri the valu able time of those who were now
(Heir, hear.)
Mr. HANKEY was of opinion that the most beneficial
objects had then obtained by an adjournment of the dis-
cussion, for it had given gentlemen an opportunity of
weighing the objections to the propositions of Govern-
ment, and it had also given an opportunity for an ample
publication of the proposed measures. He thought also
it would have the effect of creating an unanimity of feeling
in favour of the motion before the Court. He was of
opinion, that the plan and its details had placed the Com-
pany, the Government, and the country in their proper
stations. He, for one, would have been content to have
come to a conclusion at once, founded on his confidence in

the soundness and judgment of the Court of Directors.
He would, however, make two or three general observa-
tions which seemed necessary to him, impressine, on the
Proprietors the propriety o adopting the resolution before
them, and he hoped their opinion would be unanimous.
He could not regard this as a mere isolated question. He
could not but see that the Bank of England was, as it
were, the very centre of the commercial interests of the
country ; and he was of opinion that the present condi-
tion of the Company was the product of its commercial
gain, and that its station had been given it by a concate-
nation of circumstances which no human foresight could
have foreseen. But whatever had been the advantages to
itself, it had returned due advantages to the country at
large.—(Hear, hear.) The Bank of England never vio-
lated the public trust, or made an ill requital for the con-
fidence reposed in hatever evils were complained of bad
arisen from their being forced on it by circumstances which
could not have been controled. In reference to the re-
newal of the Charter, it was clear that the Government
had had every opportunity of well weighing and digest.
ing every point of importance he• ween the contracting
parties; the affairs of the Bank had been made fully
public, and on one side and on the other the public
benefit had been duly considered in making the proposi-
tions. They knew teat many wild speculations had been
proposed, and that public expectation had been directed to
the subject in a very high degree, and therefore the Go-
vernment had hid before them all that science could devise
coupled with that great monitor and guide—experience.
(Coughing.) Tee sole object to be obtained was at
sound metallic currency ; the basis of all sound currency
must be metallic, and when any other aid was called in, it
must be reduceable as far as possible to a metallic currency ;
a paper currency could only be a representative one.—
(Here there were several interruptions by shuffling of feet
and coughing, which continued to stop the lion. Speaker
at various intervals, until at last he sat down, expressing
his cordial concurrence in the resolution before the Court.)
Mr. SELWYN could not permit himself to give a silent
vote in support of the proposition inade by an Honour.
able Proprietor on Monday last ; but, in going through
all the propositions of Lord Althorp, he could not
go the length of the Honourable Mover of the re-
solution, who appeared to him to have viewed the
subject more with the overweening fondness of an impas-
sioned lover than of a careful and c insiderate Bank
proprietor,
" She has no faults, or I no faults can see,"
appeared to he the prevailing*entiment of the Hon Proprietor.
He would then at once proceed to the first point of the
proposal, which was the renewal of the Charter for
twenty one years. He thought that the worthy gentleman
who proposed a resolution on Friday (Mr. Lloyd),
seemed to have forgotten that that part of the plan was
clogged with a condition which was altogether new, viz.,
that the Charter might be put an end to at the end of ten
years. Now, in former times, the Charter was renewed
for twenty-one years, unconditionally ; and he was sorry
that the Directors had not pressed that point on the atten-
tion of the Government. He then came to the exclusive
privileges of the paper circulation. Now it was admitted
on all hands, that the circulation would be much extended
oy the proposed system, and be sincerely trusted that the
proposed publicity of accounts would act as a safety-
valve, and would be eo adjusted, that it would relieve the
country from any danger in the management of that ex-

;,,~_

tended circulation. The next point for consideration wa,
the making the notes a legal tender. It had been s .irl
that great inconvenience would arise in towns where the
Bank had no branch, from this part of the plan; but he did
not see that there was much danger of that, for th country
banker would be obliged, for the convenience of his cus-
tomers, to keep a quantity of gold in his coffers, so that
people would not lie obliged to send up a 51. note from
Cornwall to London in order to get it minced into gold.
He then came to the Usury Laws. In his opinion a mo-
dification of those laws would be a great national benefit j
for people who were in want of money would get it at
whatever price. That now brought him to a more
serious point in the plan--.-the price that the Bank was
to pay for their exclusive privileges.—They were to be
paid twenty-five per c-nt. of their capital at that rate,
which was worth at least 50/. That lie did not consider
falr•, though it was said that the other seventy-five per
cent. would so rise in value, from the nature of the plan,
that they would be no losers. Then again Government
were about to take from the poor pittance at present

allowed for the management of the national debt, a sum of
120,0001.: if that was carried ihto effect the Bank would
then be doing the business at a loss of 80,000/. per annum,

exclusive of the one per cent. that Government had
upon the capital which was given them at three per sent.
which they would otherwise make four of. He referred
to the figures in the appendix of the, printed papers, and
he found that the present allowance was 242,2731., while
the expense was 164,1631., and in addition to that, the
average loss of the last 10 years was 40,0001. Some
Gentleman said that was swelled by the forgeries of
Pauntleroy, but he was not the first scoundrel by whom
the Bank had lost, and probably would not be the last,
therefore, he thought, he had a right to take the average
at 40,000/. When the 120,0001. was dedtlcted, there
would, therefore, be a dead loss to the Bank of 81,0001.,

and some were even not pleased with that, but said that
the Bank should make a present of the whole sum ; but
those who talked of the immense profits of the Bank

•
should take into consideration the enormous risks which
they ran. He declared if he had read the evidence given
before the Committee, before he had bought his stock,
he would never have had a right to address that Court.
A PROPRIETOR said that since they had met last he
had bad an opportunity of reading the speech made by
L ,rd Althorp, on the subject of the Charter, in the House
of Commons, and he thought that no person could read
that speech without being convinced that it came from
one who had paid very great attention indeed to
the subject. In his opinion the whole subject for the
Court to consider now was, in what manner the Court
was interested. In his opinion the Court was not interested
in the question whether the ustny laws should be paid,
or whether the Bank of England notes should be a
legal tender.—( Hear, hear, hear.) That was a
subject more for the consideration of the Legislature than
that Court. For his own part he would not so far com-
mit the Court, as to advise them to recommend that their
notes should be made a legal tender. He thought it
would be unwise in them to do so, as it would tend
to increase the distrust of the public. Such a measure
would be making the whole property of the country de-
pendent upon the solvency of the Bank, and it was
notorious that it had several times verged upon in-
solvency. In the year 1797 it was notorious that the
Bank was nearly ruined. In 1825 nothing but the most
fortuitous circumstances prevented it from being drained
of its last guinea. The point alone in I.is opinion upon
which the Bank Proprietors were in•ere•red, was as to
the sum they should pay for their Charter, and whether the
exclusive privileges they were to enjoy were adequate to
the sum required. Certainly if the Charter was re-
newed, s )me consideration must be given ; but whe-
ther that consideration should be 100,000/. or
120,0001., was hardly worth the consideration
of that Court.—(Hear, hear.) Then came the point
as to the return of capital. Now, that did not appear
to be clearly defined, either in the speech of Lord Althorp,
or in any of his letters which had been read. The capital
belonging to the Proprietors, and the debt due from the
Government, were distinct things, and he thought that the
Proprietors could not have any reason to complain of the
conduct of Government paying part of the debt that was
due from them, as it did not follow from that that the
capital of the proprietors would be reduced. If Government
paid off one quarter of the debt due from them to the Bank,
the proprietors might invest that in Exchequer bills or other
stock, and they would then receive that dividend which
they now received of three per cent. from the Govern-
ment. Looking to the Acts of Parliament, another
question of considerable importance, and which seemed
to have been overlooked altogether, occurred to
him. The Act that passed in 1816, provided
that three millions of the debt due from the Go-
vernment to the Bank, should be paid on or before
the Ist of August, 1833. If that Act was not re•
pealed, Government were obliged to pay on that day the
amount he stwed. Now he wished the Governor to tell

him whether Government intended to pay off the quarter
of the fourteen millions due from them to the Bank, and
also the three millions they were compelled to pay if the
Act of 1816 was not repeated ?
The GOVERNOR said that if the three millions wet e
paid in 1833, Government would not undertake to re-
ceive Bank of England notes either at the Custom-house
or Excise, but if it were not paid, they would under.
take to do so. The same Proprietor said that it
might be a very expedient provision, but unless the
Act was repealed, Government were bound to pay the
money. He would not, however, at the present monu'nt
dwell upon the subject, as it is one for the consideration
of the Court of Directors. With respect to the corre-
spondence that had taken place, the Governor and Deputy-
Governor, of the 15th of April, concluded with the
following observation ;—" The Court of Directors con-
sider the three first propositions as more immediately re.
Luting to the general regulations of the currency, than to the
pecuniary interest of the Bank ; ard the Court, therefore,
beg that they may be considered merely in the character of
suggestions offered to the Court for the consideration of his
Majesty's Government." On the very same principle he
would wish the Court to act. He would wish, then, to
come to a resolution to throw the responsibility on Par-
liament and the Government, without committing them-
selves.—(Hear, hear.) The Hon. Proprietor, after
deprecating the formation of banking companies, con-
cluded by proposing several resolutions consistent with
the tenor of his speech. He proposed those resolutions
with confidence for the consideration of the proprietors,
as it would relieve them from all responsibility in the
arrangement about to take place, and would not have a
tendency to prevent their proceeding.
Mr. YOUNG was of opinion, that neither of the two
last speakers had spoken at all to the question before
the Court. The only question was that which
had been stated by Mr. Lloyd, in his address last
Friday, and that was, whether they were determined
to uphold the interests of the country as well as their own.
If they injured one of those interests, they were sure of
injuring the other; and he was sorry they had occupied so
much time in discussing other mutters that were irrelevant
to the matter in issue. He would now take the propositions
of Lord Althorp in detail. With respect to the renewal
of the Charter for 21 years, and the power of the Govern-
ment to terminate it at the end of 11 years, he thought
that was very unjust ; it was saying, " If it is a good
Charter for you, we will terminate it, but if it is a bad
one for you it shall continue." There should he a reci-
procity of interest,—the Bunk should have a similar
power over the charter to that of the Government. As to
making Bank of England notes a legal tender by every
one but by the Bunk and its branches, that was a ques-
tion that involved the security of the whole country-.
—(Cries of " Hear, hear.") All the property of the
country was to be in Bank of England notes, thereby
presuming, of course, that the Company was to be
immaculate ; and Le highly objected to the proposition.
Besides that, they must be the collectors of all the gold in
the kingdom, and the consequence would be, they would
have all the metallic currency of the country in
their own coffers. That was investing the Bank with a
power that would be most injurious to the public. If
country bankers were not to be compelled to provide a
metallic currency, how were the manufacturers of
the country to be enabled to pay the wages?—(Hear,
hear.) They would be put to a serious inconvenience
for the want of a small metallic currency, and conse-
quently the Bank would be driven to an issue of small
notes—a means, certainly, of incre .sing its respon-
sibility, and of course its difficulties.—( Hear, hear.)
He also strongly objected to the proposed interference
with the usury laws, as it would have a tendency to in-
duce persons to act indiscreetly. There was plenty
of capital in the country, and any mar. could obt lin mo-
ney at 5 per cent. 'the proposition of Lord Althorp
would induce speculatr n and consequent ruin, for many
persons would wi•hdraw their capital from trade, and
embark it for the purpose of obtaining usurious interest.
The most experienced men in the city of London strongly
objected to the measure. It was unnecessary as re-
garded the Bank, for they would never discount at
a higher rate than five per cent., nor would they
encourage distressed pet sons to ruin themselves. He had
always been an advocate for publicity, but he thought it
would be highly injurious to publish a quartery account
of the Amount of bullion in the Bank ; he thought that to
publish the amount of assets and responsibilities would be
amply sufficient. He also had a great objection to
the deduction by GlNerniiient of 120,000/. a year for
performing the public business. Taking the propositions