The Sun.
London, England, 1833-08-10 00:00:00

vantage. II the clause was to be retained so the Bills it
would be necessary to introduce some words to explain
that it did nut form part .f the harcain with the Bank.
Mr. Alderman THOMPSON said it was imposiible
for him to state what the opinion of the Bunk Directors
would he under the circumstances suggested by the Hon.
Member.

Mr. J. MAXWELL said that the clause would be
more beneficial to the country than to the Bank, and
hoped that the Noble Lord would not consent to omit it.
Mr. M. PHILIPS wished the clause to be omitted.

wiNthlr.thCeAßYdnLk.E Y thought it was part of the contract

Mr. HARDY observed, that if the clause were, as was
pretended, for the benefit of the country, the sooner it took
effect the better, and therefore be would vote for the
amendment of the Hon. Member for Birmingham.
The amendment was then put, and negatived.
Mr. P. SCROPE proposed to insert the words " until
Parliament shall otherwise provide," in order to mike it
quite clear that Parliament would be at liberty to repeal
the clause whenever they thought proper.
Lord ALTHORP said, be should feel it his duty to ob-
ject to the amendment, but after some further conversa-
tion the NAle Lord added that he would not then insert
the words, but consider the question further.

Sir T. FRENIANTLE thought that the clause as it
stood was not sufficiently explicit, and that by the issuing
of five guinea for 51. notes, its whole effect might be
neutralized. He therefore propo.ed to alter the clause by
leaving out the words " above 51.," and inserting " all
sums less than 101."

Mr. Alderman THOMPSON observed, that no five
guinea notes could he issued, unless under the liability of
paying the same stamp duty as 101. notes.
Mr. BARING supported the amendment.
Mr. WOOD thought the claus, would have a tendency
to lessen the quantity of gold in the country—a very seri-
ous evil.

Mr. BARNARD did not conceive that the intention of
the clause could be evaded unless by the Bank itself.
Mr. WHITMORE said he believed the tendency of the
clause would he to drain the country of specie.
Mr. P. HOWARD opposed the cl 'use, conceiving it
calculated to throw discredit on the Rink of England, and
to increase the anxiety for obtaining gold.

The House divided—
For
the Amendment
Against it
Majority --60
On our re-admission to the gallery, we found the
CHAIRMAN putting the question whether the words " so
long as the Bank shall continue to pay the said notes in
legal coin," should stand part of the clause.
Mr. HiramEs and Mr. BARING supported the insertion
of the words.

Mr. WARBURTON thought that the clause altogether
would interfere with the performance of contracts.
The SOLICITOR-GENERAL said, that the refusal
to accept the bank-note being a legal tender, would merely
place the party o jecting in the same situation as if he ha I
refused sovereigns. The debt would remain the same.
Mr. HUME wished to know whether a special con-
tract to be paid in gold would oblige the party to pay in
gold, and not in notes ?
The SOLICITOR-GENERAL merely repeated his
former statement, that the party paying might ten-
der the notes, but on the refusal of the acceptance the
debt would still remain.
The insertion of the words were then agreed to, and,
on the Chairman putting the question that the clause as
amended stand part of the Bdl,
Mr. FORSTER moved the insertion of the following
words :—" Provided always that every promissory note,
payable to the bearer on demand, which shall be issued by
any banker, corporation, or copartnership, for a less sum
thin 201., shall be payable in coin at the place where
issued, as is by law now directet:."
Mr. P. THOMSON said that the proviso of the Hon.
Member was, in effect, disposed of already by the last de-
cision of the Committee. The proposition of the Hon.
Baronet was to raise the amount to 101 , and the Hon.
Member wished to increase it to 201. It was, therefore,
unnecessary for him to discuss it.
Mr. FORSTER observed that the Hon. Baronet's pro-
position was general—his amendment was confined to
country bankers.
The motion was negatived without a division.
On the question that the clause, as amended, stand part
of the Bill,

Mr. HUME objected to the clause as a departure from
the present wholesome system, and a step to the depreci-
ation of the standard.

Mr. CLAY objected to the clause on the same ground.
The Noble Lord had assignee' no reason for this altera-
tion, nor shown the necessity of any change at all. The
oste-nsible object was to prevent a drain upon the Bank
similar to that of 1825 ; hut such a drain could never
occur again. The only effect of the measure would he to
prevent a drain produced by a distrust of the country
bankers; but this was unnecessary; for as long as the
Bank preserved its credit, that would be a sufficient pro-
tection to its notes without any law.
Lord ALTHORP said that if he could expect that this
measure would produce a depreciation of the currency,
he should have acted contrary to the principles he had
professed by introducing it; but he was confident it
would lead to no depreciation. He had given his r, asous
for the measure when he opened it to the House, and had
stated, over and over again, that in case of a commercial
panic, it would prevent a drain upon the Bank. If the
country bankers knew that their customers might refuse
to take Bank of England notes, it would be their duty to
provide specie, even beyond what the necessity of the case
required ; and the Legislature was bound to give pro-
tection to the Bank.
Mr. BARING entirely approved of the principle of the
clause. If any one supposed that it was done with a view
of promoting a depreciation of the currency, he never
made a greater mistake; its effect would rather be to
obviate such depreciation. This part of the measure had
had the approbation of nine out of ten of the London and
country bankers, and of every Loudon banker who had
been examined before the Committee. The clause would
have no effect except du -lag a panic.
Mr. M. ATTWOOD said that the effect of this clause
would be to produce depreciation, though it might. not he
intended to do so; when the Bank Restriction Act was
passed the same horror of depreciation was professed.
(The Hon. Member left the house without voting at all.)
The Committee then divided, when the numbers were—
Ayes B7
Noes

Majority in favour of the clause —39
On returning to the gallery, there was a loud call for
adjournment when
Lord ALTHORP said, that if tha House was disposed
to resume the consideration of the clauses this morning,
he would not oppose an adjournment of the Committee.
The CHAIRMAN then reported progress, and obtained
leave to sir again this day.
The other orders of the day were then disposed of, and
the House adjourned at a quarter to three o'clock.