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

IMPERIAL PAR LIAMENT.

HOUSE OF LORI S—(YEsTERDIY.) I
The Loan CHANoELLOB, tooik his seat on the woolsack
at five o'clock.
IMMIGRATION OF TREE NEGROES. _
The Earl of SHAFTESBURY, seeing the noble earl
the Secretary for Foreign Affairs, called his attwat.inonthtoe
the scheme for the immigration of free Negroesi
Shaft
French colonies. it had coins to his (Earl
dee-
bury's) knowledge that a decree had be issue y the
French Government for the purpose of carrying the
scheme into effect. The question he begged to ask was,
whether it was true that any such decree had been
issued t
The Earl of CLARENDON said be was gratified in
being able to inform their lordships that the decree to
which the noble earl referred had no existence, but he
believed that certain contracts had been entered into
with several firms, and which agreements had received
the assent of the French Government on the
understanding that it should be a bona fide immigration
of free negroes. Now, it was impossible for such a con -
dition to be fulfilled, as there was no such thing as free
immigration from Western Africa. We ourselves had tried
the scheme 18 years ago, lithe negro had been treated
with every comfort, and had had his return to his native
country guaranteed to him, but the plan utterly and
signally failed. It was felt that the further trying the
plan would lead to the revival of the slave trade, and the
project was finally abandoned. The plan adopted by the
French Government was, that a number of African chiefs
were to supply a certain number of negroes on board
ship, and a form was gone through of aaking those ne-
groes whether they were willing, for a certain
amount of money, to work in a French colony
for a limited period. Now, it was perfectly clear that,
under such circumstances, there could be no free choice,
and the contractors to the French Government were
broughtinto contact withthe regular Spanish slave dealers.
Theßritish Government had entered into communication
with the French Government on the point, and the
subject had been considered by the French Government,
in order to bring the grievance to an end. The French
Government had informed her Majesty's Ministers
that although there was in fact no treaty on the subject,
yet they intended to act as if it was in existence, and
they further solemnly declared there was no intention
of reviving the slave trade, bat that they were as anxious
at the present moment to put a stop to the infamous
traffic as they were when they signed the declaration in
1815, for the suppression of the slave trade.
The Earl of DERBY did not for an instant doubt the
sincerity of the French Government, but he felt that
the scheme of free immigration was a perfect delusion,
and was in fact but the revival of the slave trade in
another form.
The Earl of CLA.RENDON said he believed there
was no intention on the part of the French Government
to forcibly put an end to the project.
Earl GREY was also of opinion that the scheme could
lead to nothing else but a revival of the slave trade. When
he held the seals of the colonial department be was con-
stantly urged to permit a trial of the scheme, but he had
invariably refused. He hoped her Majesty's Ministers
would keep the subject in view and not allow it to
sleep.
The subject then dropped.
EARL GRANVILLE AND THE EARL OF
DERBY.

The Earl of DERBY—As this, my lords, is the lad I
day—if Ibe correctly informed—upon which we are I
likely to meet before the recess, I may be allowed to
seize the present opportunity of making a few observa-
tions in reference to the extraordinary controversy which
has arisen out of a statement which I made on the open-
ing night of the session. I may, perhaps, before pro-
ceeding to the particular statement to which I refer,
remark that I was led into an inaccuracy—although it
was one of no impedance so far as my argument was
concerned—in stating that one of the first offers made to
the Government upon the part of the company to trans-
port troops across the Isthmus of Suez was made by the
directors of the company, that offer having, as I am now
informed, been made by another company. The offer
was made in the month of July, and was rejected ; and
I cannot help remarking that it is somewhat singular
that in the papers which have been laid within the last
few days upon the table of the house a letter of the
Governor-General of India, dated August 7. appears,
in which he states that if the Government at home were
not in communication with the Peninsular and Oriental
Steam-packet Company the Government of India were.
Another mistake into which I was led was that of stating
that the last offer of the Peninsular and Oriental Com-
pany to convey troops to India across the Isthmus of
Suez was made in the latter end of August, whereas I
find from the letter of Mr. Wilcox that it was made on
the 6th of September. Now, my lords, with reference
to the main points involved in the controversy which
has taken place between my noble friend opposite (Earl
Granville) and myself as to a certain letter alleged to
have been written to the Peninsular and Oriental Com
pany by the right hon. gentleman the President of the
Board of Control, I can oily say that even up to the
present moment I am at. a loss to account for the discre-
pancy which exists between my noble friend's denial
of the justice of my statement, and the infor-
mation upon which that statement was basal.
As my noble friend Lord Hard wicke men-
tioned to your lordships on a former evening, I
expressed my disbelief in the possibility that the story
in reference to the President ofl the Beard of Control
could be true, when it was mentioned to me by my
noble friend in the country. When I came up to tow;,
however, I heard the same statement made in another
quarto!, and I nen began to think if nee...ls:try to make
some inquiry jet° the matter, and I now hold in nay
hand a latter which I received frcm the gentleman who
was my informant, in answer to one which I addressed
to him on the subject. I should rather not mention
the name of the writer of the letter, and perhaps it will
be sufficient to assure your lordships that he is a man
of station and positior. The first pert of the letter refers
to the refusal upon the part of the Government to accept
the offer of the company, and it then proceeds to state
the circumstance which is the subject of the controversy
—namely, that the right hon. gentleman the President
of the Board of Control actually wrote a letter to one of
the directors of the company—Mr. Anderson—to know
whether it was possible to organize a scheme for cede -
ine troops by means of their steamers ; to which the
reply was, it was not only possible, but that the thing
had been already done. I still, however, thought, my
lords, that there must be a .me mistake, and I tequaeted
my informant to go back to Mr. Anderson and ascertain
still more clearly whether or not the statement was cor-
rect. He informed me that Mr. Anderson had left
England on his aay to the East, but he came to me
about 11 o'clock on the night before Parliament itesern- '
bled and mentioned to me that be bad eon Mr.
another of the directors of the comeaey, who had can-
firmed what he had said in reference to Mr. Anderson's
having made the statement in question. I, my lords,
being under the impression—not only upon the authority
of the gentleman to whom I elude, but because the mat-
ter was talked of in more than one quarter —that he had
done so, thought myself justified in referring to the sub-
ject in this house on the first night of the session. Tee
accuracy of my statement upon that occasion having
been impugned by the noble earl opposne, however, I
requested my informant to write to Mr. Anderson, whose
I believed to be still in Paris, pointing out the cir-
cumstance that a coatradictien had been given to an as-
sertion made upon his authority, and asking him testae
Low the facts of the ems!, really stood. The centradiction
of my noble friend opposite was given on the Monday,
and on Taeaday a letter, a copy of which I hold in my
band, war addressed to Mr. Anderson in accordance
with my desire. I am, however, afraid that Mr. Alder-
son has left Paris, inasmuch as no answer to this letter
has been received, and I may observe in passing that it
seems to me to be not a little remarkable that, although
that gentleman was, I believe, in Paris on the Jay when
the newspapers containing the reports of the debates
which took place on the first night of the session, must
have reached that city, inasmuch as be has written
thence to England since that time, yet he never repu-
diated, eves in the slightest degree, the truth of the
allegation which has led to this controversy. (Hear.)
Now, my lords, I hold in my hands a letter from Mr.
Allen, which I received yesterday, and which, after re-
ferring to the circumstance of Mr. Anderson's absence
from England, goes on to state that from the impression
which exists in his own mind, coupled with the subse-
quent declarations of the right hon. gentleman the Pre-
sident of the Board of Control, "he has no hesitation in
saying there must be some misapprehension upon the
point on the part of his colleague." Your lordships,
then, will at once perceive that while Mr. Allen is dis-
posed to give full credit to the denial of the President of
the Board of Control, he recognises in hie note the exis- j
tence of an impression in the mind of Mr. Anderson that
a communication such as I stated passed between him
and the right hon. gentleman. Now, how a matter of
that nature can be the subject of mere impression I can-
not understand. Whether such a communication did or
did not take place ought to be known to Mr. Anderson
one way or the other. This, however, my lords, is the
position in which the matter stands at present. It may
become the subject of future inquiry ? but, be that as it
may, I feel bound to give the right hon. gentleman the
President of the Board of Control the full benefit of the
Explanation which has been made by my noble friend oppo-
site in
his behalf, and at the same time to express my
regret for having
made against him a charge which, if
true,
could not but be injurious to him as a public man.
(Hear, hear.)beof Aftere; what I have said I trust your
lordships will psztnnteat I did not make that '
charge, I will not say believing it to be correct
—for there would be but little merittrfiea
that—but wain
out acting on such information as justified me in think.
in g that the charge was not capable of contradiction.
Hear, hear.)
Earl GRANVILLE—I felt quite satisfied, ray
lords,
from the very
senirueticeneent of this controversy that my
noble friend did not snake the statement to which he
refers without firmly believing it to be well founded.
And after what has fallen from my noble friend this
evening, I can quite understand his supposing that he
had sufficiently good grounds for making ose of a story
which must have been to him a very tempting one to use
in the course of debate. (A laugh.) At the sa
for
the t mer
I entirely deny that there was any ground whatever
the statement respecting this letter. When the noble earl
t
opposite made the charge t,foro your lordship I sent
word to the President of the Board of Control and asked
him whether it was true or net. The answer I received
was, that it was untrue. Of course, therefore, I contra-
dicted it, but in consequence of the extreme positiveness
of the noble earl's manner, and the positive face ho put
upon it (a laugh), knowing, too, how often and how easily
mistakes and misunderstandings arise, I did not con- j
tradict him so decidedly as I might have done, but
contented myself with a simple denial of the charge,
and refrained from reeking any vehement assertions,

Subsequently ------------
I raw the President of the Board of
I Control, and he told me he bad not the slightest recol-
lection of writing suoh a letter and receiving such a
reply • that he had questioned hie private secretary and
the Secretary of the Board of Control with the same
resalt ; and that he had put himself in communication
with the Peninsular and Oriental Company on the subject,
with what results your lordships are aware. Yet, the
gentleman with whose name we are unacquainted not
only informed the noble earl that he had received this
information Irons Mr. Anderson, who has gone abroad,
but eaid be would inquire from another person con-
nected with the company, as to the facts, and returned
with the statement that Mr. Allen declared that it was
perfectly true.
The Earl of DERBY—I did not say that this gentle-
man stated that Mr. Allen declared the information to
be perfectly true, but that Mr. Allen knew Mr. Ander-
son had made such a statement.
The Earl of GRANVILLE—It appears to me
been written and I beg, therefore, to protest e
alto-
gether perfectly impossible that such a letter shoualtahianvset
the burden being laid en Mr. V. Smith of making any
further attempts to clear his character.hear.)
Having said thus much, I beg to acknowledge most
cordially the honourable manner in which the noble
.earl
opposite,
not being able to substantiate.thit s aon. ccusat
inn,
and after the declaration made by my gh h
on the subject, has expressed for himself his own feelings
ri frd
on the subject.
THE INDEMNITY BILL.
On the motion for the third reading of this bill,
Lord OVERSTONE presented a petition from Bris-
tol in favour of the principle of the Bank Charter Act.
Lord STANLEY of ALDERLEY said that their
lordships were aware, from the speech from the throne,
that the immediate cause for which Parliament had been
called together before the usual time was to propose a
bill of indemnity for the violation of an Act of Parlia-
ment. Their lordships were also aware of the principle
on which the Act of 1844 had been passed. The object
of that act was to secure the country against the recur-
rence of those financial convulsions and commercial
crises which disturbed the country in former periods ;
to secure the country from the excess of paper issues ;
and also to secure the convertibility of the notes into
gold. In 1847, however, three years after the passing
of that act, a monetary disturbance occurred, in conse-
quence, as he believed, of the extensive railway trans-
actions which took place and the large amount of
money which was absorbed in the purchase of corn, and
her Majesty's Government felt it to be their duty to
issue a letter authorising the directors of the Bank of
England to depart from that provision of the act which
obliged them not to extend their note issues beyond
144 millions. The effect of the letter then written was
such as to dissipate very speedily the alarm which then
prevailed. The sanction of Parliament was asked and
given to the act, of the Government on that occasion.
Sir R. Peel, the chief author of the act of 1844, then
stated that the main object of the act was to secure the
convertibility of the bank note, and that it had suc-
ceeded in that object, and that he never contemplated
that it would be a complete guarantee or security
against the recurrence of them commercial difficulties
and financial crises which must more or less exist in
every country where commotion and credit had been
extensively developed. On the motion of Mr. Herries,
the House of Commons passed a resolution expressing
the approval of Parliament at what the Government had
done. He would therefore take it for granted, that
Parliament and the country were of opinion that the
Government and the country were justified in adoptive
the course they then took, and since that period he
believed it would be admitted that the act had corn-
pfetely succeeded in the two essential points for which
it was passed, namely, in preventing the over issue of
paper, and securing tee convertibility of the bank note.
It had not succeeded in preventing the occurrence of
financial crisis, bat he believed it was not within the
power of human legislation to frame such a law as would
prevent the recurrence of these crises. Situated as this
country was, carryine on an extensive commerce with all
parts of the world, and therefore liable to be acted on by
the monetary panics ani commercial distress of other
countries, whether arising from unwise legislation or
ether cirenrestancee, it was impossible for any legislation
to afford security arainet, the occurrence of monetary
pressure here. The unlimited issue of paper in the United
States unchecked by Government and uncontrolled by
government paper, protlezed a state of things which re-
eulted in great cornmercia: disturbance and convulsion.
The condition in the United states reacted on England,
hut the pressure here was not of equal severity because
there was in this country a well regulated paper circula-
ti en which was convertible into gold. In Hamburg, how.
ever, which had a purely metallic currency, the pressure
had beer extremely severe. It was, evident, therefore, that
neither the excessive paper issues of America, ncr the
purely metallic currency of Hamburg was able to cave a
country from periodical commercial distress. The crisis
through which they had passed began with the failure of
the Borough Bank of Liverpool, which was followed by
the failure of the house of Mr. Dennistoun of Glasgow,
and the Western and City of Glasgow Banks. If the
state of things iu 1347 justified the interference of the
Government on that occasion, the state of affairs in
1857 afforded the present Government still stronger
grounds for interference. as a comparison of the position
of the Bank of England at both periods would prove..
On the 27th Oct. in the first period the bullion was
8,337,0001., and on the 11th Nov. this year, 7,171,0001.
The reserve of notes in 1347 was 1,547,0001., and in
1857, 957.0001. In 1847 the bankers' deposit.; were
8,530,0001. ; in 1857 they reached 12,935,000/. In the
first-named year the private securities were 19,467,000/.;
this year they reached a maximum of 20,113,000/. Such
was the state of things on the 11th Nov., and on the
12th the Government, on their own reqmnsibility, and
from a full consideration of the urgency of the case,
issued their letter. All discounting having ceased, and
with a res. rve of only 151,0001. in notes in the Bank of
England, he would leave it to their imaginations to con-
ceive what would have followed if the Government had
delayed any longer to issue the letter. (Hear.) He
believed that no Government, under the circumstances
which then existed, could have ventured to insist on the
carrying out of the act for 21 hours longer without pro-
ducing irretrievable ruin. (dear, hear.) And such an
act of daring would bring down upon tee Government
the censure of Parliament. (Hear, hear.) The Bank
of England were obliged to act on the authority given to
them, for 2,000,0001. had been transferred from the issue
to the banking department. On the 12th Nov. one
milieu had been transferred, and on the next day another
million was transferred. But the Act of Parliament was
only technically violated to the extent of tv:o millions,
because that amount of notes over and above the 141
millions had not been given out to the public, and in a
en, ;et time the note circulatioe was reduced to the amount
at which it stood lefore the letter of the Government
was issued. On Nov. 14 the excess of notes out to the
public was 62270001 , and it increased to 923,0001 on the
20:h. On the nlet the issue was reduced to 617,0001,
s n 1 it went on decrealing till Dee. 1, when the amount
of notes remained as before the act had been inf. inged.
On Dec. 10—that was t ) say last night—the bullion in
the Bank was 3,200,0001., and the reserve 4,650,000/.
This benefic'al effect, which had been produced by the
Government let;.er, was, he believed, in no small degree
owing to the Government not having given permissi,:n
to transgress the law at an earlier period, The rao4,
important part of the act of 1344 was that it produced a
rise in the rate of discount, which righted the exchanges,
and prevented gold from leaving the country. Before her
Majeaty's Government issued the letter the exchanges
had already taken a turn ; the export of gold was checked,
and since thee, instead of gold going oat, it had been
gift lually coming into the country. It would be matter
for consideration in any future legislation whether it
should not be declared that no relaxation of the act
should take place till the exchanges had taken a turn. i
The Government having taken the responsibility of
authorising the directors of the Dan': of England to vio-
late the act of 1844, came before the house for an in- '
demnity of that act, and for the directors of the Bank
fur having acted under that authority. Thera was a pre-
, vision in this act to which the noble earl objected, naan. lf,
the provision which ex'ended the privilege of issuing
notes beyond the 14.'1 millions fur 23 days alter the n xt
meeting of Parliament, but he thought the noble earl
misapprehended the effect of that provision, because it
would be competent for the Bank directors to reduce the
rate of discount when they thought fit—the note issues
have fallen within the statutory limit. It had been said
—he thought too hastily—that the act of 1344 was no
longer of any value, and that they ought to revert to the
state of things which existed before 1844, or adopt some
other course. Bet he thought that experience, so far
from showing that the act was useless and might be
go i i
nn ap diet
tn 0 t7ryvou
,de
sr u
utoei
:be
cpri
el
paper.
a:pie:rode.
of the
ti suhnae iads
note
ioicnttuerei
asonunngedl t lc
the
f effecthiendeeptd
rwi
e on, .
abrogated, only showed that it was not able to effect that
tsitorci
whichbnt thati
vo
ethn et
iropnooi nf ttsh—e
tohvee rc oi
ins
securing these two objects he should be sorryg 'f.
were disposed to get rid of the act because a portion
r soofnfst
had been suspended. But it would be desirable seriously
to consider whether it would not be necessary to intro-
duce some new provision with the circumstances and
conditions under which such a relaxation should be
exercised. Whether it should be effected by the Govern-
ment on its own responsibilisy by letter, or by an Order
in Council, subject to the approval of Parliament, or by
the self-operation of the Act when the rate of discount
was 10 per cent —these were matters well worthy of the
consideration of Parliament. (Hear.) There were also
other circumstances which required consideration, as the
circulation of one-pound notes in Scotland and Ireland,
which no doubt aggravated the pressure on the Bank of
England. Eli, noble friend (Lord Monteagle) expressed
his opinion that it would diminish the extent of the evil
if the one-pound note circulation of Scotland and Ireland
were done away with. Tne banks in those countries
sent up for gold in order to make themselves safe, the
result of which was that the Beek of England, at a
moment of great emergency and agony, sent three mil-
lions of sovereigns to the Scotch and Irish banks. It
would also be matter for consideration whether the fre-
quent publications of the Bank of England might not
have a tendency to aggravate the evil. These matters
were worthy of grave consideration, and be should be
glad to see an, inquiry by a committee of the house
:1.1(5, the causes which led to the financial and commercial
~ i,s-7-into the mode in which the joint-stock banks
a d noalater ed their concerns, and how far
bear on the subject.
1 ~e
___c, a He should be glad, therefore, to
He "hua,ja committeestated
ath appointed when they met again.
1 the Government et reasons which he thought justified
They believed that taking the course they had done.
I they averted a greatyditsaking the step they had done
circumstances, it would have been ; and that, under these
fain the strict. letter of the Act. lie
impossible to main
beet the house would assent to the He trusted, therefore
bill. (Hear, hear.) a third reading of the
Er.ri GREY. said he did not rise for the
- hie the third reading of the bill, b Purpose of
Opp ~,,s, ~ eeauss, though
dispo .e•d to a;533 in principle with his noblofriend near
him kE.,-;r1 Oi'critnae), he knew that practically it was

not in the power of any government to carry it out. It
Wa3 the duty of parliament, therefore, to grant a bill of
indemnity to the government for what they had done,
and to the Bank directors for having acted on their
advice. What ho wished to direct attention to on the
present occasion wa3 the unsatisfactory state in which
the currency law would be left if this bill pased with-
out being followed up by further and prompt legislation.
He was glad to hear from his noble friend who had just
sat down that the views of her Majesty's government
were somewhat altered since his noble friend the Presi-
dent of the Council addressed their lordships on a former
occasion, who then informed them that her Majesty's
government were of opinion that no further legislation
was necessary. He was happy to observe the change,
and to fi❑d that the government now saw there were
se►eral subjects with respect to which the existing law
might be improved, and, he hoped, further legislation
called for.
- -

Lord STANLEY of ALDERLEY said he did not go
to the extent which his noble friend supposed. What he
said was that there were many subjects deserving of
consideration which must bear on the decision to be
arrived at.

Earl GREY said he was concerned to find that the
government were not sufficiently alive to the necessity
of further and prompt legislation on this subject, which
he (Earl Grey) believed to be inevitable under the
circumstances in which they now stoeol. The act of
1844 had now been suspended a second time, which
destroyed all the moral force of that act. And that is
the more manifest from what has since taken place.
This bi'l had been recommended by her Majesty's
government and supported by gentlemen of great weight,
on grounds which would make it impossible for any
future government to avoid taking the same course—
hear)—because it had been laid down distinctly on both
sides of the House of Commons that Government would
deserve the deepest condemnation if they took any other
course than the one they had adopted ; and further than
that, they had not only an indemnity for the past, but a
provision for the future. If after what had passed, the
Act of 1844 was not followed up by further legislation,
the act should be forthwith repealed and expunged from
the statute book. You should not retain a law which it
was the avowed intention of all parties to break when
the circumstances arose which he thought would justify
them in taking such a step. (Hear, hear) He ob-
jected net merely to this sort of a repeal of the provisions
of the act, but to the repealing it at al!. By what they
were doing they virtually sanctioned the principle that
in periods of commercial distress it was legitimate on the
part of the country to look for relief from that distress to
an issue of paper money, regulated by certain principles
and limited only by the discretion of the issuers and the
wants of the borrowers ; in fact, they formed the sole
restriction of the issue of paper ; that was virtually to
take away the means of maintaining the standard of value
add to abrogate that standard which had been estab-
lished by Parliament. They were told there could be
no depreciation of the currency, no alteration in the stan-
dard of value, so long as they adhered to the principle cf
convertibility. In the first place, experience proves that
the currency may be depreciated notwithstanding its con.
vertibility, but the depreciation will be to a limited ex-
tent in point of degree and of time, and as long as con-
vertibility was maintained the ultimate restoration of the
currency was Ensured. But for a short time depreciation
may take flies, and to a certain exttnt—and it had
taken place at the present time. That had been shown by
his noble friend Lord Overstone. He asked what was
the mett,wre of the value of money but what it would
buy The very day aler the Government letter was
issued the prices of all commodities fell, and the rate of
interest fsll also, so that there was an alteration in the
value of money by the act of Government, Toe depre
ciation which would take place with a convertible cur-
rency was moderate in degree and limited in point of
time, but when they entered on this course how woull
they ensure that they would be able to maintain the
principle of convertibility. His noble friend had stated
that it would have been impossible fur the Government
to have taken the course they did if the exchanges were
not in our favour ; if they had been adverse, the result
would have been a drain on the Bank which wculd have
exhau,ted its last sovereign. If once they taught the
commercial world to look for an issue of paper-money as
a means of relief, did they think they would be willing
to forsgo that relief when a pressure came because the
exchanges were against us, and when, of necessity, the
pressure must be greater than it was when the exchanges
were in our favour? Of c mine they would look for re-
lief; and precisely the same language would be need as
at present. They would be tell " that convertibility was
an abstract principle, which ought not to be allowed to
stand in the way of the safety of the nation ; that the
demand for gold abroad had arisen from accidental cit.-
eunastanees ; that we should pr stsct ourselves, and
avert national ruin." The same argumen aas had lately
been used to induce the Government to suspend the act
of 1814 wool I then be used to induce them to suspend
cash payments. If they once admitted that in periods of
commercial distress relief was to be looked for from an
excessive issue of paper money, they could net hope that
many years would go over their heads without a suspen-
sion cf cash payments : —that result would be very easily
arrived at. Suppose at period of distress arrived when the
exchanges were not against them ; the country wanted
money, and they departed from the rule; suppose that
on the issue of paper circumstances arose which turned
the exchanges against them, and they could not possibly
be corrected unlegs by contracting the issue ; if that was
done the result would be a greatzr pressure and greater
difficulties than if the principle had been adhered to from
the first- He feared they were abo'ut to make the first
step oa w path on which when they were once launched
each successive :Asp was men diTcult t be re-
sised, and which must lead to a suspeasiou o: cash
payments. Let them lock to what took place on the
last occasion of suspension, in 1797. Ha admitted it
was then impossible for the Government to have taken
any other course. , By the previous imprudence on the
part of the Government and the Bank in the manage-
ment of paper money the country was brought to such
a situation that it became necessary either to suspend
cash payments by an order of the Government or allow
the Bank to pay away its last sovereign. Had their
lordships forgotten the fatal effects of that measure I
Fer t'rne it did not proiuce any material consequence,
but they knew that the country having once entered
on the fatal course was led more and more to abuse its
currency. The same argument as was lately used was
urged then, that men with good hills bad a right to have
them discounted ; but while men were contendii g that
there could not be an excessive issue the currency
diminished in value until the guinea came to be worth
twenty-sevea or twenty-sight shillings ; and a very
serious and a very great injustice WWI inflicted on cre-
ditors and others. When at last the nation became
sensible of the imprudence of the course it had adopted,
and determined to retrace its steps and re-establish the
value of it; currency, it was found that clueing the int r-
vening years so many transactions hr. 1 taken place that
those who had suffered from the originel injustice bene-
fited veri l t.le .ay the change ; on the other ban 1, dur-
ing the depreciation of the currency many transactions
had been catered into, he nation had incurrel heavy
as had aim; pi ivato indiviluahi, more especielly
the landed interest, who in their efforts to meet the
demand for corn had borrowed money for agricultural
improvements, and by the change in the currency they
were obliged to pay 20s. for every 15e. they had bur-
rowel—(hear, hear)—and sr had the nation. The
coetequence was that while the oe,gnal injustice
was piny partial, they committed agrc-s injuetica ou
large portion of the nation, from the effects of which
they still suffered and would suffer till the
last hour of their existence. Ought not that
to be a warnieg to theta not to commence a
course which must lead to• a renewal of the difficul-
ties of 1797, and a suspension of cash payments ? He
trusted that they would not, by passing thin bill, allow
themeolves to be prevented from adopting some efficient
means of reform of their system of currency. Ile would
not then enter into the question of what that reform
ought to be ; but he had no hesitation iu saying that a
reform, to be complete, should be effected by carrying
out to their legitimate conclusion the some] principles of
the act of 1844. The first principle was that a paper
currency ought to be assimilated as far as possible tola
metallic one. It was rightly assemed that while a paper
currency has a great advantage in convenience, yet for
uniformity of value a metallic currency is euperior to my
other. The value of any currency depends on its amount
in proportion to the transactions to be carried out; that
being the case, it was assumed that in order to make a
paper currency equivalent to a metallic, the amount of
it should be made to vary according to the wants of the
country, precisely according to the same law as exi3e-
rience shows and determines the amount of a metallic cur-
rency. It was impassible arbitrarily to alter the amount
of a metallic currency ; the tendency of the precious metal
was to flow into or out of any country where the value
had risen or fallen until the balance was restored, and if
the value was temporarily altered in any country, it was
soon made to conform to the general value, which was
determined by the total amount. The tendency was so
strong that no law prohibiting the exportation could pro-
duce any effect in preventing this self-adjustment. This
being so it was necessary to devise a machinery which
would preserve the paper currency at a uniform value.
The mode adopted was to place the issue of it under such
regulation as that the amount at anyone time in circula-
tion should vary according to the same proportion and
from the same causes as affected the precious metal. This
was effected in the act of 1314 by providing that beyond a
fixed sum, far below the wants of the country, no paper
money should be issued unless in exchange forgold ; and
the Bank became a mere ministerial body to carry this
out. The, principle was sound, but unfortunately the act
of 1814 was defective in the machinery to carry out this
object; it still left the issue of the paper money in the
hands of the Batik of England, and created a false im-
pression in the minds of the public that as the Bank had a
monopoly of the right to issue paper money it bad a
right to provide for all their wants. As the same parties
were dealers and issuere of paper money, the two func.
tines were carried out in such a way as not to make it
clear in which capacity the paper was issued. This was
a source of great evil, If the principle was to assimilate
the paper currenci to a metallic, the first thing to be
done was to assimilate the two as to the authority by
which they were issued. They allowed no private mint,
so they ought to allow no money to be issued by a private
individual—the Royal Mint, and a royal mint only; and
as they tolerated no private coining, so they should not
tolerate any private issue of paper. The private issue of
paper was more dangerous than that of coin. They ougt t
to put an end to all issues by the Bank of England, and
the joint stock banks of England, Ireland, and Scot'anO,
nod have one uniform issue by public authority. Ile
believed that would prevent the recurrence of many evils,
and disabuse men's minds of the pernicious idea that the
Bank was a body from which assistance might be indo-
finitely demanded. It would at the same time relieve the
Bank from the necessity of making returns, the only
effect of which was to create alarm ; and the directors
would be left to deal with their capital as was best for
their benefit and that of their shareholders, and people
would have no more right to expect them to take measures