The Sun.
London, England, 1857-12-12 00:00:00

bat act brought within the sharpest trials, but looking at
fate present crisis they found from the figures of the Chan-
cellor of the Exchequer that the reserve at present in the
Munk was 4i mill:ons, that was including 2 millions not autho-
rised by law. On the 11th Nov., that reserve was not 2 mil-
lions, There was, therefore, an increase between the 11th
Nov. and the 11th Dec. of something over 1 million of reserve
in the Bank. So far so good ; but during that period what
lad been the increase in the public deposits ? If the public
deposits had increased by a sum less than a million, or lees
than the increase of reserve, he could not think there had
been any real or material advance towards a state of ease and
security. He did not think that it was in the state of the
currency but in the condition of commerce that the elements
of commercial disaster existed, and he believed it would con-
tinue there so long as a belief existed that whenever difficul-
ties arose the Government could step in to relievee th em
and . The
h w. ith
ln
right hon. gentleman having quoted at some gt
unqualified approval the opinions of Lord Overstone as given
in the House of Lords on the Bank Indemnity Bill, proceeded
to remark that it had been said that the committee of last
session had taken a great deal of evidence, and that now we
were about preventing them from making a report ; but the
very circumstances under which that committee broke up
showed that all the committeeintended was to place the
evidence before the house. The Chan ellor of the Exchequer
had taunted him with a want of the appreciation of the wit-
nesses that h*d been called, bat that was not his objection,
which was really this, that the system of a large number of
w.tnesses was a circuitous machinery which would be more
easily worked in that house. What had that committee
done ? It had taken a vast deal of evidence in reference to
issue, the standard of value, and other matters, and all these
things would have to be begun again. Then the committee
would have to consider the antiquarian and unexamined
state of the relations between the Government and the Bank
of England. Now, perhaps, he might mention what per-
p+ cry few persons knew, that whenever a loan was made
the Bank of England should be a corporation until the
loan was paid. That was an assurance to cr_ditors, and
perfectly fair when governments were in bad odour, and
when banks were good, but now he thought, when persons
lent money to the Government, they should know that
they lent it on the security of the State of England. Now
al! these things were matters for inquiry in quiet and easy
times, but in times of commercial difficulty they should be
Seized upon by Parliament with the fall certainty that what-
ever course they took they would be backed up by the coun-
try. He advised that measures should be taken to bring the
principles of the Bank of England fairly to issue, and when
they'had done that they would be able to approach a very
grave question. (Hear, hear.) The right hon. gentleman
deprecated the various kinds of liability which prevailed,
and which he believed had very materially contributed to
the existing distress.
Ms. MALINS deprecated sudden violations of the law, and
expressed an opinion that it should never be dependent upon
any letters that might be issued by the Government. He
contended that the act of 1844 was false in principle, false in
theory, false in practice, as the events of 1847 and 1857
ainply testified. He opposed the committee, because he
thought the time for legislation had arrived,
Mr. HORSFALL intimated his intention of voting for the
re-appointment of the committee. He had no intention in
doing so to prevent legislation. He did not agree with hon.
members that the bill ought to be abrogated, and that there
was no safety for c mmeroe till that was done; but he
thought the bill of 1844 required some amendment. The act
had no doubt failed in its final object to prevent panics ; but
as that was the most important feature of the bill, he thought
that if the committee of inquiry could devise anything to pre-
vent them they would have accomplished what the principle
of the bill had hitherto failed in doing. He was not
Due of those who believed the crisis of 1817 arose from the
bill of 1811, or that the bill of 1819 should be made tho
smapegoat of the panics of 1825 and 1837. This act was
napable of material improvement. No bank act could pre-
vent periodical crises. In every instance the proximate cause
was to be attributed to the export of national capital, yet they
had always occurred from over-trading. Had the Govern-
ment delayed the issue of the letter 24 hours longer the con-
sequence would have been most dengerons, and he thanked
them for having issued it. It might be satisfactory to know
that the issue had received the sanction of tho noble lord the
member for London, who adopted a similar course in 1847,
and that it received the approval of Sir R. Peel. The late
Mr. Huskissow, long bef re the passing of the Bank Act of
1837, said that the occurrence of panics and commercial dis-
tress could not be foreseen or defined by any power, or their
remedy might 13" left to the head of the Government, subject
to the responsibility of Parliament. (Cries of " Divide.")
.

Mr. WEGUELIN denied that the issue of the letter of the
Government had led to the assistance by the Bank of persons
who would not otherwise have been assisted. So far as he
was aware no person before or after the issue of the letter had
been refused assistance on good banking security. (H ar,
bear.) Had the Government complied with the spirit of the
act they ought to have stopped all discounts on advances some
days before the Government letter was issued, but the direc-
tors took upon themselves the responsibility of continuing
such advances after that date. Considering that the effect
of the refusal would have been more serious to the commerce
of, the country than their continuing to advance contrary to
the spirit of the act. (Hear.) The proceedings of the Bank
were regularly communicated daily to the Government, and
after having watched the proceedings the Government decided
on issuing the letter. (Hear.) Nothing would b m,re dis-
astrous to the Bank, or the monetary and trading interests of
the country, as that it she ild be limited to that of a joint
stock operation, ok:to tllat of the investment of capital
tend depoeits • ; bedimiWiankss there was a feeling in the cour•
try that there was a power behind the Bank in periods like
the present to support her. in making advances to the com-
mercial world, there would be a tenfold greater panic in mo-
ruents of crisis than that they hid seen, and he referred to
Hamburg as an illustration, where a rigid system of currency
was onforeed.. The disasters in America, Germany, and this
country had arisen from a common origin, Ho agreed very
ranch in what-bad fallen from the right hon. gentleman the
member for Buckinghamshire as to the cause of our commer-
cial distresses, namely, an exportation of gold. That arose
from the war we bad carried on with Russia. During its
nontinuance there had been a drain of gold by the three great
countries engaged in it to the extent of between thirty and
forty millions annually mere than we had been in the habit of '
spending. (Hear, hear.) Now, a war expenditure resolved
Itself into a distribution of wages for the manufacture of am-
inanition, freightage of ships, &c. ; and he put it to the
house whether such an additiona' expenditure did not drive
air the prices of every consumable article. They found in
1854 and 1855 trade in a most flourishing and prosperous
condition, because every merchant who imported goods found
e ready sale for them with rising prices. (Hear.) When
peace came, the merchants considered that if we had been
prosperous in war we should be twice as prosperous in peace ;
but the consequence was the reverse, and every article im-
ported sold at a lower and declining price. (Hear.) As an
instance of that kind the hon. gentleman stated that in the
article of sugar in the four British and continental ports the
.20asumption of sugar, in the first ten months of this year,
Ind declined 100,000 tons less than in 1855. Taking that
as an example, he thought it showed that the consumption
Of Europe generally had been enhanced by the war.
The same occurrence happened after the war of 1815 ; and
that being the case, he thought we might f drly attribute the
&relaters that had occurred. He thought they were not cor-
rect in attributing the distress to the currency laws. He con-
aidered,the Government acted wisely in issuing the letter,
and he eupported the appointment of the committee. (Hear. )
Mr. B. BLACKMORE considered the pressure was far
from over. He felt from his own experience that the pres-
sure that had been felt by the commercial community was
beginning to press with great severity on the working classes,
which, if not stayed at this unfortunate period of the year,
would soon overtake the agricultural classes. lie congra-
tulated the Chancellor of the Exchequer on the flow of gold
Into the Bank coffers, because that was taken as the barome-
ter of the state of prosperity of the country. He advocated
return to the issue of 1/. and 21. Bank of England notes, as
affording great facilities to the payment of wages, with the
convertibility of the Bank Act of 1814 guaranteed, by which
means the currency would not be depreciated. He regretted
that the Government only intended to pass the Indemnity
Nl'. He thought it would have been more satisfactory to
the country, and he was sure it would have been to the
Industrious classes of the country, if, instead of the reap-
pointment of the committee, with a long delay of inquiry,
the house had been allowed to apply itself to some practical
mode to remedy the pressure that threatened the industrious
fnisses. (Divide, divide.)
The CHANCELLOR of the EXCHEQUER said that
whatever doubt might have existed before the commence-
went of the debate as to the expediency and almost neces-
sity there was of the reappointment of the committee on this
inflect, it must have been removed by the course the de-
bile had taken. The house had been told by the right
h )n. gentleman opposite (the member for Buckinghamshire)
that further inquiry on the subject was superfluous, because
are facts were so plain and undoubted that no difference of
*pinion existed on tho main principle of legislation, and yet
after hearing the debate he (the Chancellor of the Exchequer)
confessed it seemed to him that if the house was reduced to
the necessity of founding a measure on the speeches of the
ptincipal members of the house who had spoken on the sub-
ject, they would find themselves in the necessity of taking a
ticket out of the legislative lottery, in hopes of its coining
out a prize. (Hear.) He was in hopes that hon. members
who supported the amendment would have laid down in most
distinct terms the principles on which to legislate, and he
appealed to the house whether the right hon. gentleman the
Member for Buckinghamshire or the right hon, gentleman
the member for the University of Oxford had clearly and dis-
tinctly enunciated the principles on which legislation should
proceed. (Hear) The right hon, gentleman concluded by
Stating tbat the Government had enunciated clear views upon
the question, but they considered it better to refer the whole
question to a committee, rather than it should be said Go-
vernment had expressed confident opinions on the question,
and were desirous of biassing hon. members, without their
having had an opportunity of examining evidence on the
question. (Hear.)

The house then divided
For the motion
Against it
Majority in favour of Government --178
Mr. NEWDEGATE inquired if was the intention of the
Government to alter the Act of 18 '4 ?
The CHANCELLOR of the EXCHEQUER said it would
be a -question for the consideration of the Government after
the committee had reported. The right hon. gentleman then
moved that it be an instruction to the committee to inquii e
into the cause of the recent commercial crisis, and how far it
Sad been affected by the issue of notes pt(yable on demand.
Mr. T. BARING thought the subject ought to be referred
vtParato committee.'
The CHANCELLOR of the EXCHEQUER said that if two
"rnbe ilnnaluttean6_ were appointed they would in reality both
intoN the same thing
Mr. iIUDO said thatif the object of the Government
was to avoid legislation, they would secure that object by
giving ono committee.
Lord J. RUSSELL said he thought the Bank ought not to
*be
be allowed to derive an profit from the increased issue under
The egANCELLOR of the EXCHEQUER said it was but
right that the Bank should be above 1
susTicion of any
Sinister motives.
Sir H. WILLOUGHBY inquired who would bear the loss,
any occurred ?
The OFIANCELLOR of the EXCHEQUER said he could not
see bow any loss ,::oold
occur. If any should take place, he
would take care to let the hon. baronet know bow it was to
be me.. (Laughter. )
Ifr. DISRAELI hoped the Government would consider the
preposit on of the hon. member for Huntingdon, and have a
second committee. Indeed,
he thought it would be well to
have a cepa ate committee for Ireland and Scotland.t
conflict
.Sir C. WOOD said that separate committees mug
Sri their proceedings.
Mr. T. BARING said the House of Lords had acted upon
the course he bad propos,,d.
Mr. NEWDEGATE thought this was conclusive as to what
the Government ought to do in the matter.
Mr. T. O'BRIEN, as ono having supported the Govern-
Inelit, thought the proposition of the right hon. gentleman
(Mr. Disraeli) was well worthy of consideration.
The motion was then agreed to.
NEW WRIT.
A new writ was ordered for the Elgin Burghs in the room
Of Mr. Duff, who had accepted the Chiltern Hundreds.
WEXFORD FREE BRIDGE.

On the motion of Mr. VANCE, the following returns were
ordered :—Return showing the amount of all moneys re-