The Sun.
London, England, 1857-12-14 00:00:00

our trade surely should not surer became America wants
gold,"

Again, he asked—

" Do you think that that currency would run the risk of
ever being depreciated in value—that is to say, that incon-
vertible 51. notes would not exchange for five sovereigns ?—I
do ILA know as compared with sovereigns ; that, I think, is of
no consequence in the world. We want it for our internal
commerce, and we want it to pay Government for taxes."
But the next question asked, and not given by the right
hon, gentleman, was-
" How would you determine the value of a 5/. note 7-1 do
not want any value beyond its passing for 51 for taxes ; what-
ever the Government demands from me as a tax of 51."
What his friend Mr. Twells meant was that he wanted
nothicg more tha❑ that the Government should take the
51. note in payment of taxes. He was afterwards asked
his opini in as to the cause of the depreciation of the
French assignats at the time of the Revolution, and his
reply was—
" What I stated a little while ago, that a Government may
issue in excess, is very possible ; and supposing it is a corrupt
Government they have the power of doing it ; but such an
institution as our Bank of England cannot do it, because they
only issue against property, against something of equal value
with their own notes, and we consider that the further value
of their own notes is secured by the sanction of a well-estab-
lished Government ; that the guarantee of our Government,
taking it as it is in Engl tnd, is quite equal to 20,000,000'. of
gold deposited in a vault, I should be very sorry to think
otherwise of it."

There was enough in that answer to explain the difficulty
of his right bon. friend about the matter, and which ex.
cited so much mirth and merriment in the house. It
showed that Mr. Twells meant all his answers to apply
not to notes issued by the Bank of England, but to notes
guaranteed by the Government. Ile hoped this state-
ment, which he had deemed it his duty to make, would
receive as wide a publicity as that which had bean made
by the Chancellor of the Etchequer. Mr. Twells was
next asked—

" Under what does the country suffer, and why under a
drain of bullion ?—Because it cannot have supplied to it a
sufficient circulation. The House of Commons wds congratu-
lated in the year 1811 upon the adoption of a measure for
supplying the country with a circulating medium of un-
doubted credit proportioned to its wants ;' now I take it
that to secure that is the objt ct of a sound currency,
" From what is that an extract I—That was stated on ➢ir.
Hornet's motion for the Bullion Committee. A circulating
medium of undoubted credit, proportioned to the wants of
the country, I conceive, must embrace everything that can
be required of a currency. _

" Whose opinion is that ?—That is what was stated by
Lord Castlereagh, and he observed upon it that this circulat-
ing medium of undoubted credit bad ' for the first time solved
the problem of reconciling national prosperity with a state of
war; that the country had risen in manufactures, internal
improvement, revenue, and commerce with a velocity which
had never been experienced in a year of profound peace.'"
The Deputy Usher of the Black Rod here entered the
house, and with the usual formalities summoned the
Speaker to the Hause of Lords to hear the Royal assent
given to a bill.

The SPEAKER on his Feturn, announced that the
Royal assent bad been given by commission to the Bank
Issues Indernity Bill.

Mr. SPOONER, resuming his statement, proceeded to
real the following extracts from Mr, Twel4' evid .nce:—
" The gap which is created in the circulating medium by
sending out bullion to purchase can would be filled up for
the time by the inconvertible note till the exchange is turned
and then gold w-uld naturally flow in ? Yes, it would
naturally flow in just as any other commodity.
" But the bank-note, if issued ent rely by the Bank upon
the B ink's own responsibility, you would still keep liable to
be paid in gold ; you do not want to mlke any change in that?
—Not at all.

" There would be no necessi. y for it ?—None whatever.
"There are notes to the extent of 14,500,000/. now issued
upon se.unities ?—Yes.

" Do not they, upon the face of them, bear a promise to pay
on demand?—Yes,

" Supposing the demand was to extend to them, and to pay
upon that 14,500,009/., would they be able to bo paid?—No,
they would not be able to bo paid ; but the country is now put
iu such a position that they cannot demand it.