The Sun.
London, England, 1802-04-22 00:00:00

BANK RESTRICTION BILL.

The CHANCELLOR of the EXCHEQUER
moved the Order of the Day, for the House to re-
solve itself into a Committee of the whole House,
on the Bill to continue the law now in force, re-
striding the Bank of England from making pay_
meats in cast. Which Order being read, he moved,
• ". That the SPEAKER do now leave the Chair."
The Hou,e having accordingly resolved itself into
a Committee of the whole House,
The CHANCELLOR of the EXCHEQUER said, that
having stated on a former day, to the House, the
ground on which he thought it would he proper to
continue the
.restriction on the Bank, of payment
in cash ; he thought it would be unnecessary, if not
irregular in him, in this stage of the proceeding,
to enter into any discussion of the measure, on the
former argument. He had therefore only to state
the grounds on which he should propose to fill up
the blanks, specifying the duration of this Bill, and
the continuance of the restriction, which he proposed
to be on the first of March, 1603. Jr was stated
by him, the other day, and he believed, pretty
generally acquiesced in, that from the new situa-
tion in which this country would be placed on the
return of Peace, from the present state of our ex-
port trade, the state also of the course of exchange,
and the different relations in which the various
States of Europe will stand towards each other ;
from the combination of all these things, he said,
it was advisable that the restrietions of the money
payments of the Bank should continue. There
seemed, indeed, some difference of opinion on two
or three points only. Some Gentlemen seemed to
• think that a proceeding of this sort should be founded
on a Report of a Committee, to which he owned
he could'not assent, because he did not see the ne-
cessity for such a course of proceeding. On former
occasions the objed was to ascertain the real situa-
tion of the Bank, to he satisfied of its sufficiency
to answer all demands teat could be made upon it.
At the present moment, there was no question in
that House, nor any where else, whether or not the
Boak was able to pay and discharge, in any manner,
any demand that could be made upon it ; so that
an inquiry into that matter was, now, totally un-
necessary ; it was, therefore, not in consequence of
any doubt or apprehension, or even reluctance of
the Bank, but solely on the ground of political ex-
pediency, arising out of the situation of this coun-
try, with reference to its export trade, the
course of exchange, and the commercial relations of
Foreign Nations to each other, that this measure of
continuance of the restriction upon the Bank was
proposed—On the solidity of the Bank he was en-
titled to say and assume, there was now no goes-
tien, either in that House or elsewhere.—On the
disposition of the Batik to make payments in
specie, he was also entitled to assume, .nay he
owed it to the Bank, to assert, they had mani-
fested a readiness to do so. It was, however,
thought necessary to continue this Retridion for
a while. As to the necessity of inquiring into the
causes of such necessity, and of its being founded on
the Rlant of a Committee, he had to observe,
that upon the inconvenience of such a course of
proceeding, it would occur to the Committee that
much might he said ; but besides the inconvenience,
he doulned the pradicability of that course ; for if
.a Committee were appointed to inquire into the
cense of the continuance of this Restridion, it
w. uld embrace such a train of examination as could
rot he gone over in any thing like reasonable time,
cod that consideration had operated on his mind
considerably; for if such a Committee were appoint_
,co, they could not eftedually.proceed on the subject
of their inqulty, without enteriug on a consideration
of the state olcomtnerce all over the world, and the
dtfferent commercial relations in which the States of
Europe stood towards each other, the state of com-
merce and manufactures of each ; a course of exami-
nation, in its nature, minute, operose, and much too
tedious 1-,,t• the present Session of Parliament; and for
that reason, if there wet e no other, it ought to not be
adopted ; but it was not necessary, for the grounds
of the measure now before the Committee were clear
and conclusive; every one was acquainted with
them ; they were perfedly notorious—they were
unquestionably solid—the 'commercial relations of
different States since the Peace—the Course of Ex-
change—the state of our Export Trade—all combin-
ing to make the continuance of this Restridion
necessary, the only point upon which there appear-
ed to him to b.t a question, was the period of :he
duration of the measure ; this he thought should be
governed by the probable end of the causes which
produced it. Oar Export Trade had been long, as
it were, at a stand ; we might entertain a reason-
able hope or expedation, that in a short time :t
would firld its proper channel, so that afterwards we
might feel the efred 'of an advantageous Export
Trade, the full advantages of which, however, we
could not exio:d within a short period, perhaps
ten of elve mow ha: Nor should he look for-
ward for this advantage to a very remote period,
for he trusted this trade would be immediately put
ieto its due channel. It was therefore necessary to
iderr this measure for a period, at the expiration
of which we shall have the Leo efi:s of those returns
of :i7xports which we, at present, want, the effra of
which would he to give us an advantage which we
eid net now e:ejoyi an advantage in the Course of

Exehlnge. In the intertfal, it was a matter of po.
licy to continue this Restriaion, and he did not see
how it could be continued less than ten or twelve
months, for we could not expert the full benefit of
a return to our Export Trade in a much shorter
period, nor could we, in much less time, expert to
have the full benefit of those other changes which
he looked for, in the Course of Exchange, &c. nor
could these commercial relations of Foreign States,
properly find their level in a much shorter time; so
that under all the circumstances which we had to
consider at the present moment, it did not appear to
him unwise to adopt that time for the continuance
of the Restriction on the Money Payments of the
Bank of England. lic was aware that some Gen.
tlemen would say it would be better to con-
tinue tl'c measure until within a month or six
weeks, after the commencement of the next Session
of Parliament, and this was an idea which, when
he first heard it stated, he felt himself disposed to
favour; but other considerations changed his mind
upon that subject : it was impossible to anticipate,
at present, when Parliament would meet ; and if the
measure now before the Committee were made

subjed to that uncertainty, many inconveniencies
might ensue, and it should be recolleCted, that al.
most the whole commercial world was interested in
this measure, which should not be made to depend
on any thing that was uncertain in point of time.
But supposing there was a certainty that Parliament
' would meet before Christmas : should it meet in the
month of November, he should even then depre-
cate the putting this measure upon that point, and
have to discuss it again before the Holidays, if it
should be found then necessary to continue it, but
if that continuance should be necessary, and Parlia-
ment should not be assembled until the latter end of
January, or the beginning of February, then the
inconvenience would be without a remedy ; where-
as, by the continuance he now proposed, Parliament
might discuss it, if necessary, before the time of its
expiration, should it be assembled. So that on the
one hand, no inconvenience could arise, which
might not be remedied ; on the other, it was possible
for an inconvenience to be felt, without any chance
of a remedy, at least-for a while. Adding to this,
the little probability there was that the causes of
this Restriction would cease to operate before Christ.
mas ; and then, he believed, the Committee would
see the propriety of filling up the Blank with the
first of March, 1803, and, therefore, he took the
liberty of proposing it. There was another point ,
to which he thought it might not be improper for
him to advert. An Honourable Gentleman op-
p os_te to him (Mr. TIERNEY, we presume), had ob-
served, on a former day, on the authority of the
Bank to open payment of its own accord, by the Bill
as it now stands, giving notice as therein specified.
He had considered that suggestion, and was ready
to admit that the Bank had not, under the former
Bill, the power which he thought they had, nor
was the reArietien precisely such as the Hon. Gen-
tleman supposed.—[Here he read the clauSe in the
last Act of Parliament, which gives power, under
certain qualifications, to the Bank to make payment
in cashd—and then observed, nobody could doubt
that dividends were demands on the Bank ; and he
was aware mar the construction wnicn nd put upon
this clause, had been put by those who were most con-
versant in this subject ; but however that might be,
he objected to making any alteration whatever in
this clause. He did not wish to put the Bank in
a situation so invidious as it would be, by being
held out, as continuing, of their own authority,
or from motives .of their own, this restriction
of Payment in Money. He wished it to be un-
derstood, that this Restriction of Payment in
Money at the Bank, was to be continued on the
ground of political expediency, a measure judged of
by the House of Commons, not by the Bank of
England. Viewing this matter as a political mea-
sure, he would say it was fit that the House should
judge of it, and determine how long this Restric-
tion should continue, and not put it in the power
of the Bank to resume its money payments at its
own will, and without any legislative limitation.
If that power had indeed been originally given by
the Restriction Bill, he did not know that he should
now propose to curtail it, but he thought it should
not now be originated, because the measure of
the Restriction was presented to the House at
this moment . as a measure founded on poll.
tical expediency, of which Parliament, and Par..
liarnent alone ought to judge, leaving to the
Bank nothing that might place it in an invi.
dious light, by making it responsible for the ,
continuance of the Restriction ; giving it in this
respect, neither more nor less, but exactly the same
power as it possessed by the former Restrittion
Bill. He had nothing more to do at present, than
to propose that this blank be filled up with the
words, " The rst day of Mardi, 1803."
Mr. TIERNEY adverted to that part of the
CHANCELLOR of the ExeHEQUER'S speech, where
he spoke of the discretionary power of the Direc-
tors of the Bank to pay the dividends in coin. He
contended that this implied no discretionary power
to pay their debts in money, as the dividends were
not debts of the Bank, but of the Nation. It was
only when the creditor of the Nation went to the
Bank and received Bank Notes in payment of his
dividend, that he became a creditor of the Bark.
With regard to a discretionary power of placing the
Bank Directors in an invidious situation, he thought
that thus completely binding up their hands placed
them in a still more delicate situation. For the
sake of appearances, if for nothing else, it was
necessary that they should resume payments as soon
as possible. But the CHANCELLOR of the EXCHE.
QUER had argued, that this was entirely a measure
of a political nature : he could not admire that po.
licy. The two former Committees appointed on
the Restriction had judged it expedient, the- one on
account of the invasion with which we were threa-
tened, the other on account of the enemy with
whom we had to contend : but it was agreed that it
ought. to cease a month after the conclusion of
Peace. A month had now elapsed, and it was
moved still to continue the Restriction, without a
single substantial reason assigned, TheCUANCCt.LUK
of the EXCHCQUEI,‘ hacj indeed talked of new rell_
lions in which w.e were placed, but he had advanced
nothing substantial, nothing that ccold he on-
derstcod, such as a former argument relating to the
course ofeAchange which coukl be investigated.

wished that the Right Honourable Gentleman would
shew how the Restridion on the Bank would ope-
rate as a remedy for the dangers apprehended, or
how it would not rather have a contrary effed. It
appeared strange, that Peace and War were equally
an argument for continuing the Restridion. He
owned that inconveniencies might arise from suddenly
resuming payments, but he affirmed that much more
was to be dreaded from the Minister thus inter..
fering with the usual payments of the Bank, espe-
cially in such a peremptory manner. He contend-
ed that the operation of exchange will be felt sooner
than March. He did not mean even to give the
slightest hint against the credit of the Bank, or the
wisdom of those who concluded it ; but he wished
for the sake of our credit, that its payments should
be resumed as quickly as possible. Some might
privately think it desirable that the Bank should
never commence its payments again; but no Eng-
lishman would venture publicly to express such a
wish. He therefore thought some such clause as he
had suggested formerly should be introduced into
the Bill, to give the Direlors of the Bank a discre-
tionary power of resuming their payments.

Mr. M. A. TAYLOR contended that ae Divi-
dends came within the provision of the Bit. The
words were, ,‘ any debt or demand." If the Di.
vidends did not fall under one of these drnomipa.
tions, they certainly did come under the other.

The ATTORNEY GENERAL thought it un-
necessary to enter into the purport of the words,
which were plain ; but he contended that the divi-
dends came under the denomination of debts of the
Bank. When the Exchequer sent money to the
Bank for the express purpose of paying, those par-
ticular debts, and the Bank received ir, the debt
was then devolved on the Bank ; and therefore the
Bank was authorised, under the denomination of
debts, to pay the dividends in money.
Mr. TIERNEY maintained his former opinion,
as the Bank was still accountable to the Exchequer
for the money conveyed to it for the payment of the
dividends.

Mr. TONES agreed with the propriety of the
Restridion in general, but thought the period too
long.

The CHANCELLOR of the EXCHEQUER
caused the clause in the Bill to be read, from which
he proved, that all payments made from the Bank,
came under its provisions. The Bank Directors
had three times availed themselves of the clause,
and by giving intimation to the SPEAXER, had been
permitted to make particular payments in money.
When this Bill was first passed, it had a view
to the security of the Bank, and was intended to
prevent a drain of specie from it; but now the se.
curity of the Bank was fully established, and the
present Bill entirely went on grounds of political
expediency. He concluded by repeating his former
sentiments, that enlarging the powers of the Bank
Directors would only tend to place them in a more
invidious light with the Public.
Mr. N. VANSITTART observed, how incon.
venient it was in great commercial concerns, in which
light the Bank was to be considered, to have shell'
••••.A. adifl.

After a few words from Mr. DENT and Mr.
JONES, the Question on the Clause was put and ear.
ried. The Report to be received to.morrow,
Mr. CORRY rose to give notice of a Motion.
He said, that as the original Restriction imposed on
the Bank of England had for the same causes been
extended to Ireland, he thought it proper that the
present restriCtion should also be extended in the
same way. He should therefore tomorrow move
for leave to bring in a Bill to continue the Restric.
tion on the Bank of Ireland.

The House then resolved itself into a Committee
on

FRENCH WINES.

Mr. N. t'ANSTfTART observed the propriety
of rather extending the permission of importation to
the whole kingdom, than confining it to the Islands
of Jersey and Guernsey : He therefore moved, that
French Wines be permitted to be imported in
bottles, direaly into this kingdom, which was
agreed to, and the report ordered to be received
tomorrow.

Mr. N. VANSITTART moved for leave to bring
in a Bill to enable the Lords of the Treasury to
issue Exchequer Bills on the credit of certain Sup-
plies granted, and to be granted, to His Majesty for
the year 18oz.—Leave granted.
The Committee on Irish Linen IVlanufaetures,
and the Committee on Irish Elestions, were ordered
for Friday.

The House adjourned at six o'clock till t0.m0r34
row.

MAIL.

DUE.—Hamburgh - - . - - - . - t

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THE SUN.

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