The Sun.
London, England, 1844-06-25 00:00:00

departments, though it would introduce a new principle I tiee of his conclusions could not be denied. He had
into the Bank of 'England. Another new principle of paid great attention to the subject, but had not been
the Bill was, that the Bank was restricted from issuing able to make up his mind upon it, and he should decline
notes upon silver. Ile considered that was an erroneous giving a vote.
restriction, for silver .was-the standard of value in the The House then divided, when there appeared
'New World, and it was a protection to gold.—(Hear.) ' For the Motion lB
Another objectionable point in the Bill was that it con- Against it 205
tracted the issuing power of the Bank in case of another Majority against the Motion 187
bank of issue ceasing to issue its notes. If a bank issuing The House then went into Committee, Mr. GAEENE
90,0001. ceased to issue to that amount, the issuing of in the Chair.
the Bank of England was limited to 60,000 L, thus con- Clause 1 was agreed to.
tracting the power of the Bank 30,0001. He thought it On clause 2 being proposed
right to make those objections ,• he made them, however, Mr. NEWDEGATE rose to bring forward the
as a Member of Parliament, and not as a member of the motion of which he had given notice. To judge from
Ceurt of Directors of the Bank of England. the effect of 1819, it was impossible not to conclude that
Mr. W, WILLIAMS was not surprised at the dislike 1 the effect of this measure would be an increase of
of the Hon. Gentleman, to see the power of the Bank of i prices at least to the amount of twenty per cent. Taking
England had been curtailed, and that he wished that a into account the increase of population, since that period
power to issue sixteen and a half millions had been left it was evident that the Bill must operate very seriously
to them. He knew that the Right Hon. Gentleman who to the injury of the working classes.—(Hear, hear.)
introduced this Bill would be eressed by influence on all The exchanges would be turned against this country.
sides. He looked on this Bill as the complement of There were two ways in which the adverse exchanges
the Bill of 1819. While the banks had the power of operated. First there must be an exportation of bullion
unlimited circulation, there was no class in the country to meet the foreign demand, and then there must be a
whether high or low which did not feel the effects of it. large drain of gold from the Bank to meet the demands
These was unsteadiness and uncertainty in everything, of the country occasioned by the panic necessarily
there was fluctuation from high prices to low prices. arising from the same cause. The House had just
He, therefore, looked on this measure as one of the divided, and he had found himself in a minority of
greatest importance. The excessive circulation of the eighteen, but if this Act were in operation to its ap-
Bank of England paper had encouraged speculation—it pointed term, and it should then be proposed to renew
made the country a vast exporting country. But the the measure, the minority would be much larger. He
foreign exchanges were soon turned against them, and solemnly protested against the measure as not adapted
they were obliged to correct them by a large :export of to the circumstances of the country. The very restric-
bullion. In ' 1824, the Bank of England had over tion the clause imposed on the issue of securities com-
-14,000,0004 in its coffers; in December, 1825, it had lost pelted him to divide the Committee upon the question
the whole of that bullion. The lion. Gentleman went that the blank be filled up on the clause with the words
• on to quote the evidence of Mr. Norman, given before 22 millions instead of 14 millions, the former sum being
the Bank Committee, to the effect that in eighteen the average of the last twenty-three years.
months no less than six and a half millions had been ab- Sir R. PEEL could not but think that gentleman had
stracted from the Bank. The consequence was, that greatly mistaken this question. They seemed to think
prices rose and the greatest sacrifices were that this measure restricted the Bank to issuing
obliged to be made. The fact was, that 14,000,000/. ;it did no such thing ; for when the Bill
gold would not keep company with paper.—(A laugh.) passed there was nothing to restrain the Banking De•
Perhaps in the first coming into operation the Bill partment from issuing 22,000,000/. or 24,0001., or even
might not have the effect which he anticipated, but he 28,000,000/. If power was given to issue 22,000,000/. on
maintained that in the first three years of its operation securities, it would leave money to issue on bullion. The
it would bring into circulation a greater amount of Hon. Member proposed that the Bank should issue
bullion and paper together than had been since 1819. 22,000,000/. on securities ;if it did so, it would be ruined
Our gold and silver circulation of the present time directly, because it would have no bullion to meet its
amounted to no more than thirty millions, whereas in issues. He considered the whole of the Hon. Gentle-
France, which had much less commerce, there was a man's speech as directed not against this measure, but a
circulation of 100,000,000 in gold and silver. Why metallic standard, and to say that the old metallic sten-
should the circulation of this country, which had the 'dard was to be kept up in the present condition of the
balance of trade so largely in its favour, have so inferior a country, was to state that which was impossible. lie
circulation ? He attributed it to the effect of the paper felt sure his llon. Friend would not press his amendment.
currency, which sent the bullion out of the country. In Mr. GISBORNE wished to ask if the Bank was to
the letters of Daniel Hardcastle, published in the Times, have the power of issuing Bank post bills to an un-
it was proved that during thirty years this country lost limited extent.
230,000,000/. by that process alone. There could be no Sir R. PEEL' said that as to these bills they would
doubt that the debt had been borrowed in a depreciated. be regulated by the general principles of the measure.
currency, and was now being paid in gold. The Hon. Mr. M. PHILIPS was of opinion that the measure
Gentleman then referred to the report of the Bullion of the Right Hon. Baronet would have the effect of
Committee in 1810, of which Mr. Horner was the maintaining steadiness of price, and it was therefore a
' Chairman, and which showed that so great had been the measure which would confer great benefit on the
• depreciation of the currency, in consequence of the in- country. He felt that it was the duty of every member
• creased circulation of Bank paper, that it was thought who was in any way connected with those places in
necessary by the Legislature to double the salaries of which labour was largely employed to give this Bill
all the officers of State, all• persons in Government em- their fullest and best support.
ployment, and all persons in every avocation of life. He Mr. H. PALMER argued that it would be impossible
was surprised that his Hon. Friend, the Member for for the Bank always to have it in its power to provide
Lambeth—recollecting the effects of the measures relat- gold for any demand which might be made upon them
ing to the Bank circulation in 1818, afterwards altered in respect of Bank of England notes in circu-
in 1822, and recollecting the condition in which lation. Speculations of all sorts, and the gold
the Bank was in 1824, and the disastrous events requisite at certain times for the purchase of
which followed—could persist in his opposition to this corn, would preclude the possibility of this.
• Bill.—(Hear.) He then read extracts from the evidence If the circulation was to be confined to 14,000,0001., they
• of Mr. Richards, the Governor of the Bank of England; . would rue the day that ever they passed it.
before the Committee of the House of Commons in 1832, Mr. KEMBLE should vote against the amendment.
to show what had been at that period the consequences Mr. C. WOOD supported the clause.
cif: the restricted circulation, which required the inter- Mr. NEWDEGATE replied, withdrawing his amend.
agreed to.
vention of the Government to prevent the most disas-
went.—The clause WRS,then
trous effects upon all the interests of the country. On The House then resumed, th Chairman reported pro-
a previous occasion a Minister of the Crown stated that, gress, and obtained leave to sit again on Thursday.
in consequence of the state of the circulation, the country The Education Bill was read a second time, and
was within twenty-four hours' of barter. To re-
ordered to be committed on Thursday.
medy these evils, Mr. Canning, in 1822, brought in h The Salmon Fisheries (Scotland) Bill was read a third
is
Bil!, which he described figuratively as creating a column time and passed.
of paper raised upon a basis of gold. But the result The other orders of the day were then disposed of,
shnwed that' the eloquent statesman was very much mis- and the House adjourned at Ten minutes past One.
taken. The consequences of all those fluctuations from
high to low circulation, were- productive of the greatest
evils and distress. The depression which was occasioned
by those changes was the cause of the people of this
country 'going to the American and other foreign funds
for the more safe investment of their money. Nothing
could have stood up against those constant fluctuations •,
. the changes and uncertainty in wages, employment, and
profits, could never have been stood up against but by
the industry arid energy of the people of this c iuntry.
They all remembered the condition into which the Bank
of Engl Ind brought itself in 1838 and 1839, when,
_ if it
had not been for the Bank of France coming to the as-
sistance of the Bank of England, the latter would
have been bankrupt. If it had not been for the
assistance of the East India Company, and more
• especially of the Bank ef France, the Bank of
England must have stopped payment in October, 1839.
At that time the circulation was 25,000,000/, and now
it was upwards of 35,000,000/. Who got the advantage ?
why foreign countries. He thanked the House for
allowing him to make this statement. lie would put it
to the House whether something should not be done to
prevent this country going as a mendicant to the Bank
of France. If the House allowed its paper currency
still to continue as it was now, they might depend upon
it ruin must eventually come. He thought the present
measure was a most comprehensive one, and he should
• therefore give it his support.
Mr. MASTERMAN urged on the Government the
re-consideration of the question of the contraction of
the issue upon securities by the Bank. At least lie
trusted that they would shorten the time for that con-
traction. He thought country bankers ought to have
more time to return their averages.
Mr. MUN•TZ said, that after thirty years of blunder.
ing, according to the speech of the Hon. Member for
Coventry, they had got into Paradise, but lie had for-
gotten to state what that Paradise was. It was being
heavily taxed, and presSed down with a property-tax.—
(Laughter.) Subject to a corn tax, your labourers
starving, and being beaten by the other markets of the
world. The Hon. Member then proceeded at sonic
length to argue that there ought to be a relative value
between gold, silver, and corn, and concluded by moving
that the House should go into Committee on the Bill
that day six months.
Sir R. PEEL said hi thought the House would not
countenance the present attempt of the Hon. Member
(Mr, Muntz) to go into Committee. In former stages of
the Bill, the principle ef the measure had been thoroughly,
discussed ; and yet the Hon. Gentleman had not com-
bated the measure of the Government when those oppor •
tunities offered, but had taken advantage of the
present occasion to reply to speeches made six or
seven weeks ago. The Honourable Member for.
Birmineiam professed to be in favour of a
metallic standard, but still for so using and abusing it
that the man tail° gave one hundred hard sovereigns for
stock would in it few days find that that stock would
bring to hint no nnore than ninety-five pounds. As an
advocate of a metallic standard his (Mr. Muntz's) views
were absurd and imprecticable ; such as be was sure,
though lion. Members might in courtesy listen to, they
would never adopt. He (Sir ft Peel) thought it best to
say at once that it was impossible for the Government to
accede to the alterations which from various quarters
had been proposed. Still there were sonic modifications!
which the Government had thought it its duty to agree
to, and especially one as to the issues of private bankers,
which it was proposed should now be ruled by the
average of the twelve weeks preceding the announce-
silent of this measure. Regarding the issue of private
banks all the Government required was that they should
confine their issue within the maximum, and instead of a
week a month's average would be allowed. On loth
of October the limitation of' issues would commence. He
hoped the dread of a penalty and the fear of exposure
would prevent any danger of excessive issue from taking
place. With these explanations he hoped the House
would now proceed to the consideration of the Bill in
Committee.(Hear.)
Mr. HUME said the chief danger of the proposed
Ow was the permission of the legal tender system to
continue. When bullion began to disappear from the
coffers of the Bank of England the country bankers just
at that moment became clamorous in their demand for
gold, and thus embarrassments would be generated. He
did not wish to waste the time of the House by useless
discussion, and, therefore, if the Right Hon. Baronet
told him he had considered the legal tender clause and
conic to a determination' thereupon, whatever his course
might be; he (Mr. Hume) would not press his amend-
ment. He wished to know whether the Right Hon.
Gentleman meant to continue that clause ?
Sir ROBERT PEEL said he did not mean to disturb
unnecessarily the existing state of things and create a
shOck in the monetary affairs of this country. The pre-
sent legal tender clause would, therefore, be continued.
Mr. ,WALLACE supported the amendment, and
thought the measure of the Right Hon. Baronet would
be ruinous to the kingdom both in its foreign and do-
mestic relations. A worse time could not be selected
for such a change, as they. were on the eve of a bad har-
vest ; and what with a deficiency of corn, and a deranged
currency, the condition of this country wonid he feared,
be disastrous in the extreme.—(Hear.)
Mr. BARNARD said e re, words which were not
Audible in the gallery.
Gen. JOHNSON said they were living under an arti-
ficial system, and he considered that under such a
system, an exclusively gold currency would be impossi-
ble. They were trying to procure low prices in con-
junction with high taxes---( Isar, hear) which would be
found impracticable. however, there seemed to be
•
nobody to oppose the plan ; it WR$ supported by the
country gentleman, who, he predicted would eventually.
suffer from it..
Colonel SIBTHORP objected to the limitation of the'
circulation pf, notes; the one pound notes were called
dirty paper;, but he had always found them very useful
paper.—(Laughter.) Ho had every confidence in the
Right Ifon. Baronet, and in his knowledge of this ques-
tion, but be could not see that there was any reason for
limiting the paper circulation of the country. Great as
he believed the talent of the Right Hon. Baronet to be,
thought his present measure a somewhat wild one.
' 31r. HUME explained that he had never been an ad•
vocai:e of a paper currency.
After A few words from Sir R. PEEL, in answer to
a question from Mr. MORRIS,
Mr. MUNTZ. said the Right lion. Baronet had
charged him with cheating or robbing; lie did not know
whether he meant anything personal—(Laughter)—but
Ma exertions were On behalf of the poor, to prevent
them "froth being. cheated and robbed,. as by the Hon.
,"genet's corn-law, alot.l. with his money-law, they
esrtamly.would be.—(Hear, hGar,)
'Sir. WAY-
• ...TER JAMES questioz.)ed the. ,Right Hon.
paronet's definition of a
tha:basis of prin. ml* *Lund, which he took as
Right Hon. Baronets°es"
t if thesiorreetness of the
pretniees were granied, the jns-

UNION BANK OF AUSTRALIA.
Yesterday the half-yearly meeting of the shareholders
in this Bank was held at the office, 38, Old Broad-street.
The secretary having read the report, which stated that,
owing to a sum of 15,0001. having been transferred from
the net produce on trade for the purpose of covering
doubtful debts, the dividend for the shareholders would
be consequently lessened, the Chairman said, that owing
to the great distress which prevailed in the colony, it
was a matter of surprise that they were enabled to lay
even such a favourable report before the shareholders.
'The Directors, anxious to protect the interests of the
Bank, had issued directions to their several agents to be
particularly cautious in all transactions at the branch
banks. By the last accounts from Australia it appeared
that the commercial and agricultural prospects of that
colony were much more cheering than they had been
when the last meeting took place. He felt happy, under
all the circumstances of the case, to state that a divi-
dend at the rate of 6 per cent. per annum would be de-
clared upon the last half year. In reply to a question
from a proprietor, he stated that at Sydney the rate of
interest at which they discounted was, for short bills
6 per cent., and for long bills 8 per cent. ; at other
branches the rate of discount was 8 and 10 per cent. A
ballot for the election of Directors took place, when
Messrs. Gardner and Buckle were unanimously re-
elected, and the meeting separated.

COLOMBIAN MINING COMPANY.
A special general meeting of the Shareholders in this
Company was held yesterday, at the office, 44, Fins-
bury-square, for the purpose of increasing the capital—
a step rendered necessary by the acquisition of the pro-
perty called Ventongimps, which adjoins the Company's
mines in Cornwall. Mr. P. Stainsby in the chair.
On the motion of Mr. G. W. SCOTT, seconded by Mr.
THOMAS, it was unanimously resolved, that 1,200 new
shares of W. each be issued ; and the Directors were
empowered to issue certificates for the same, each certi-
ficate to represent three shares, in such form as they
may deem expedient. The sum of 31. per share on such
new shares to be paid, by three instalments of 11. each,
on the 26th of July, 26th of September and 26th of Ja•
nuary next, but no certificates for new ;hares to be issued
until all such instalments are paid.