The Sun.
London, England, 1833-07-02 00:00:00

;Icely to increase the crime, and it was for those who put
-Irward the objection to prove there w is. For these res.
tlns, he trusted the Commi.tee would agree to the reso-

lutions.

Sir G. PHILLIPS said a few words in explanation..

Mr. CAYLEY thought the answer of the. Right Hon.

Gentleman to the epeech of the Right Hon. Baronet was

very far from satisfactory. He maintained that the first
object of such a measure as the present was not to give se-
curity to the Bank of England or any other bank, as the
Right Hon. Gentleman stated, but to guard the commer-

dal interests of the country against those injurious fluctu-
ations in the circulation by which all commercial transac-
tions were so often deranged. He thought, if the five-
pound Bank of England notes were to he made pay-
able at the branch banks, that would give rise to conspi-
racies that might be most mischievous. It was said that

.he effect of this measure would be to raise notes of :time

51. in amount to a premium, but that might be obviated

in a great measure by an agio. There would be no great
difficulty in taking a sufficient quantity of silver coin to
the country to pay all notes less than five pounds. With
respect to the objections which had been made to the issue
of one pound notes he did not think that they were al.
together well founded. The main objection was. that
they bad been the cause of the panic in 1825, which, in
his opinion, proceeded from totally different causes; that
panic had been attributed by a Minister of the Crown to
a want of a sound circulation. In 1822 the proposal was
to increase the quantity of bank notes, by which prices
rose above the value of gold, and the consequence was the
exportation of specie, which, in fact, was the principal
cause of the panic. It was a mistake to suppose that the
circulation of the country was &pendent upon the gran.
tity of specie in it. The amount and value of the circu-
lation depended upon the property or security of those
who issued notes; and as to a panic, if it should occur, it
would be comparatively of little importance, or only a
nine days' wonder, if the circulation was founded upon

party.
Mr. WARBURTON said that there was but one good
reason assigned for the change proposed; namely, that it
would enable country bankers, at any momont, when their
own paper might be discredited, to mei,t t ,eir difficulties,
by possessing themselves of Bank of Eriglan,i paper. So
great a change, however. ought not to stand train one leg.
The great evil of the change was the lost .bility that it
would give to metallic currency. For bis part, he was
anxious to connect a metallic currency Sriih the feelings
and habits, and associations of the people that in the event
of any attempt made to put an end to that currency, those
feelings, habits, and associations might rise up and prove
Lisurtnountable obstacle to the proj.,u. 1;1. n Ise
knew that there was a party in the country, and that not
an inconsiderable one, always o❑ the alert to get rid of a
metallic currency, he was averse to any step calculated to
assist them in the attainment of their object. He hoped,
therefore, that the measure would not be carried, although
he admitted that if it were carried, one objection to it
would be obviated by the amendment which the Noble
Lord bad made in his own resolution. But he was ex-
ceediegly astonished to find, after the Bank of England
paper was to be made a legal tender, that there was no
clause in the Bill to provide for the keeping up of branch
banks. It had not been stated whether the country banks
were to issue their notes payable only in their own dis-
tricts, or whether they were to issue them payable at the
Baok of England. It was most important that if persons
were compelled to take paper, they should have their
cho ce on that point. If the proposed change should re
carried into effect, the foundation of metallic currency
would he very much narrowed. The superstructure of
Bank of England paper, which now rested on one-tenth
of its amount in gold, would then rest on one-third of
that tenth. Another great evil would be the revival of
forgery. It was well known that a Royal cemmission
had formerly been appointed to inquire into the best means
of preventing forgery, and that, alter all their investiga-
tions, they had been unable to discover any species of
note which might not be imitated in such a manner as to
deceive the great mass of the people. These were the
grounds on which he resisted the present propositions. He
hoped, therefore, that this part of the measure would not
be carried. But, if it were carried, he hoped it would
be accompanied by a clause multiplying the number of
branch banks.

Mr. GISBORNE supported the resolution on two
grounds—the very grounds which induced the Hon. Gen-
tleman who had just spoken to oppose it.—(A Laugh.)

He supported it, fir.t, because he thought it would have
tendency to enable the country to dispense with a certain
portion of gold circulation ; he supported it, secondly,
because it would, in cases of local distress, prevent the
country banker from being under the necessity of sending
to the Bulk of England for gold. The Hon. Gentleman
here quoted the opinions of Mr. Horner, Mr. Ricardo, the
Hon. Member for Essex, and others, all of whom con-
tended—Mr. Ricardo especially—that it was desirable is

have as extensive a paper circulation as was consistent with
the maintenance of the standard. He did ❑ot wish the
Bank of England to have exclusive privileges, but being
overruled in that respect, he wished those privileges to be
as limited as possible.
Mr. FRANKLAND LEWIS was at a loss to conceive
what sufficient inducement could pos,ibly exist for so
great a change as that now proposed. Could any one who
contemplated the advantage posseEped by a min who had
a bank-note in his hand, for which be felt that he could

get gold whenever he chose, or who remembered the evils
which had resulted from the suspension of cash payments
by the Bank of England, be seriously of opinion that,
under any circumstances, Bank of England notes ought to
be made a legal tender? Why endanger the security of
our circulation without any cause whatever? And that it
would be endangered, he was confident no one who was
acquainted with the subject, and who saw the proposition
as it now stood, could deny. He contended that the
amount of gold in circulation would not be in the slightest
degree diminished by the plan. The country bankers
would not require to retain so much, and therefore snore
would be left in circulation. There was no induce-
ment, therefore, to warrant the injury that would be
inflicted on the security of our circulation. Let Hon.
Gentlemen recol'ect the dreadful evils, the overwhelm-

ing misery, occasioned by the panic of 1825. The run
on the country banks was the circumstance which caused
the pressure on the Bank of England ; and this, it was
well known, was commenced by the holders of one and two
pound notes. They had already diminished the circula-
of the country hanks by one-third, and pro tanto added to
the security of the currency ; and why, having thus filled
the lower circles with gold, should they now resolve upon
such a step as this? He had no objection to a voluntary
tender ; but a compulsory one, such as proposed, be consi-
dered to he fraught with most tremendous
Mr. COBBETT rose merely to say a word about the
authorities quoted by the Hon. Member for Derbyshire
(Mr. Gisborne). He knew well what those authorities
were. The first was Mr. Horner. Well, this Mr. Hor-
ner was chairman of the Committee of 1811, which
recommended a law to compel the Bank to pay in gold in
two years from that time, which, if attempted, the whole
concern would at once have been blown up. So much
for No. I.—(A laugh.) The second was Mr Ri-
cardo. It was well known he had in 1819 voted for the
Bill, which said they should pay in gold in 1823. So
touch for No. 2. And the third auth ri y which had
been quoted was the Hon. Member for B-st.a. (Mr. Baring).
He quoted Mr. Horner, who said ti ac the ehange and
effect of it would only be felt during the tran,tion from
paper to gold ; and when they got to the trouble
would be over. Now the only error here was, that
Mr. Horner did not contempla.e '11:. change tak-
ing place at a time when the c entry was bur-
dened wi:h a debt of 800 miliihns.—(llear, hear.)
These were the three authorities of the Hon. Member fur
Derbyshire. He would teat row enter into the qt:,:.;tion,
though he would stale that he certainly differed us to the
legal tender, as he had before done. At the proper time
lie would freely state his opinions. He for one was not
for patching up, but for coining at once to that settlement
which would give the King's coin to themselves during
their lives, and to their children atter thi-m.
Mr. RICHARDS said, if the measure proposed by the
Noble Lord had been in force in 1797, there would not
have been a panic, and of course they would not have had
the Restriction Act. The measure was well calculated to
prevent the danger which arose froth persons going all at
once—as it were simultaneously—(A laugh)—with their
notes to the Bank, and he trusted the Noble Lord would
not he diverted, by any arguments he had heard, from
pressing it forward.
Mr. GRO I E must admit that up to a short time ago
this arra• ure met with his concurrence; but subsequent
inquiry had convinced him that it was calculated to effect
more harm—(Hear, bear)—than good for the country.
He was perfectly ready to admit, that to a consider •ble
extent it would be advantageous in distrusting (assuming
it was not carried too far) the country circulation ; but
there would be no advantage at all it the feeling should be
carried, as possibly it might be, to a distrust of the circu
lation even of the Bank itself. The measure did not give
the means, as he once believed it did, for maintaining
what he might term the retail circulation of coin. On
that ground, lie must withhold his assent from it. H,
admitted that, trom the competition which would arise
amongst the country banks, gout would be extended over
many of their localities ; but he doubted if it would be so
to a proper extent all over England. There would not be,
in his opinion, an adequate supply of specie over the poor
districts as well as the rich ones, in tact, there would be