The Sun.
London, England, 1844-06-14 00:00:00

.......--...... --••••-..-,..--.1.-".".""P'" rills 41
show any ground for the interference of soli,'
with the banks of issue. Now, he did not. 4
was necessary for him to show that thee:e:o:
very great misconduct to justify the (30 7, slio;
introducing this treasure. It was enoueh 10,,,,
Goulburn) to prove that the consequences Of t'oe,
system neces-arily led to evils against thvie rob:its;
which there was no means of guardiegi l'eresoieb")
to say anything against ceuntry bankers. .0 16
most iniquitous transactions had come t ssorlia
acknowledged that body to be eminent for tod?
for honour.- But it was not denied by thenloss/
operations were governed by the state of tholdt.lif
them,—by the wants of the neighbourho.
desires and the demands of the community
which they lived ; and that they knew nothinni't of
of the foreign exchanges in the managonet Of
issues, and the government of their conducnsof
there was sufficient proof in the acknowledgme Ile
country bankers themselves.—(Hear, hear.) 0 bed
not trouble the House further, for the questi°d 10',
so fully discussed on a former occasion to e of $
ability, that he should but weaken the Wehsebi',
was then advanced were he to say more upon iL ''
He would conclude, by saying, that he thought 0 Is
have bent more fair and more manly t'e,', to IS
attacked the measure on its principle thaubsd
assailed it on mere minor points of detail, to
the case that evening.—(Hear, hear.) red the •
Sir W. CLAY said, though he conside %le of
sure was in one or two points suscePti ll° t
provement, yet as a whole he looked n 0.0
as a good one, :rid the principle °sore:
it was founded, he most cordially
bstrrist?
He believed that these principles were, a heetOs
sound. and true, and it was most important tote*,
that they should be carried into practical.; of;
It was not necessary to deal with the 6111 ;Iry
Birmingham School—they were very genet's' lot col lo
by the good sense of the country. Ba it *as see 0
them that opposition was to be offered to the Pot 01,,
Hon. Friend the Member Lambeth was cuneseet,o
who thought the Bill unnecessary. ile• sot' P.fo
lieved the Bill to be both expedient and nece seat ~i
great truth had been entirely overlooks ostli%
the principle, that they could not combine ths,.. sod 'p
two incongruous systems, one of convertandes
other of inconvertible paper. England lloos:'i,,
have her full share of the precious metals iin d, thee.'
great was their tendency to flow into Engin 144 0
Rothschild said, before the Committee of ' erj
were it not for a bad harvest now and thleri
loans, or raining speculations, he believed that sonar`
of the world would centre in England. The' of „t
the currency fully justified the propcessoSiss'
Bill before the House.—(Hear.) lie 5n,,171
trouble the House with details in suprry ts'elfs
general principles. He contended that neith riotsi'd
of England nor the country banks had reg° pri
issues according to the exchanges, and tbatiplitsl.fir4
to regulate them both was necessary. His 313 rid
was quite mistaken in what he had stand !resi Isis
to a suspension of cash payments in Alnerintertte)
was by the law of the States as complete a obi be °11!
of notes into cash as in this country. It n'lr'sses?
then why was it that cash payments were :.:lEskos
From the same reason that it had happened I of l'e
there was an excessive rage and competitiell llsPle
and the law could not enforce an impossibilitttled!:4
sidered that the Right Hon. Baronet was enstsi btl4
best thanks of every lover of his country
_...0.1
forward this measure. lie d°
Mr. NEWDEGATE opposed the moti"n'tdo b
that the remonstrances that had been In v .4,0
country bankers would be duly attended 7,te0,0
he was sure, they were well worth,: tr°slo I 3 dg.
The result of the adoption of the proposed sitse tii
~tt4
be, that the system of credit would displace.' erse
of eurrency, and small bills would neeessariteas`lesl
place of the notes which would be withdraw°, tllitl`s.
lation. This measure would give to ray°ll„,elouldcP
political. power by enhancing itd'value. it -Tse P.O
tote a virtual aristocracy of mere wealtle,bere Ocfr
aristocracy consisted of those elements. -1., nt, OsiS
aristocracy of birth, the aristocracy, of tai toss `hd
aristocracy of wealth. Each of these sear,- bi 1
aristocracy had its failings. The aristocoss
i,s
was indolent and overbearing, but it was gesnesist''r II
aristocracy of talent was intolerant, but "1%000
of wealth was the most oppressive that One „tolrts!,
regarded human beings merely as units 0' ifisstocil
and if it were to become the sole Lb, ro
it would become so oppressive that isesliS
would be obliged to look out f°l. tea 'oiS
defend themselves against it. The entryrso"
afforded au example of a democratic Conn, Oa
into an aristocracy. The aristocracy there:a by vd
tocracy of talent. The country was guirdsl to y
goees ; but they had been very We'll, As 4
against the aristocracy of wealth. DO ~Xsgss' '
took additional protections against it, by eZoichir,,,c
peated subdivisions, and by enlarging We ' slOs
they adopted this measure it would tend to e_ci rre,"
standard of value more than anything that ilisossi y
it; and when, in their future troubles, they
situislal?
to look on what they bad done, although it ''"tilef
like the brazen serpent in the wilderness, ty
find that it bad less than its healing virtues•sSi
Mr. HUME could assure the Hon. Get..l:l/10°
there was no necessity whatever for the sle'ises,,
seemed to entertain. If he thought this tae-bio ' 'o'
lead to an extension of the franchise t port
bo another reason why he should sti,Pelts.4o
but be found it would produce no such re",,-,,isi
Hon. Gentleman seemed to labour under 11.'; etofs'
that the precious metals were limited in al; of fl
but the present state of the coffers of the 13'13 i,e is?
land was sufficient to dissipate such a deluw‘fay
Bank of England had at the present moment s rid e
much gold that they did not know how to gt bet .1
and so long as England was capable of sellitc3igne,otsioi
duce cheaper than other countries, she w"&dsrilo.V:
for gold. This Bill maintained a gold ste's -s
5,, tee
Hi'
paper currency, convertible into gold, /100..0 4
paper of the same value as the gold• to bl re
who had introduced this motion had spoke:lit Vivi
the subject, and he had hoped that he in ji, fl
able to support it. He thought it had bee° giglil of
statement which had been made by the i the p!
nourable Baronet, in which he attributtehis eV
tuation to over-issue on the part of s iisteoel:j
banks. Now, at the present moment, it was
°tritij
that any Bank could issue a larger Van-001:i
than the country required, as long as th°septiro' if'',
on the basis of convertibility. The 1-op the o.oir l';
not carry out his own theory. One bab u bait l',,s(''s
was convertible on demand, but the others, to
(bait,
of that character. Every bank note ousn"not le 10::
vertible into gold on demand, but such wanscsrtibiel
with country bank notes. They were cs°"o4° t. i
Bank of England notes only. Now tbe Pe„saielool,c
note ought always to he able to obtain its ' OP "
bi rf'
on demand. The Right Hon. Gentlemanot.o tli:eetely4s
the legal tender clause, destroyed his °,..,.,,edis howti
a note was not currency if it was not ees )Fie t tiot, )
vertible---it was commercial paper merell; adh Cy
there ought to be only one batik of iss"l" All t'",ef '0
the Government took upon itself to issue $. sge 1.5
, ,
and silver, it ought also to have c"h bs•seSo.
s'
paper. He preferred metallic currency 0' 01)
mixed currency was more economical anner viss,lo';'
he did not object to it, provided the Pap sels'4
convertible. He knew not why the Batik fetsA,
have any privileges beyond the rest of t"-talo d li
since the Government did not choose to il,eo
ce, o
into their own charge, they ought to hs:ve„! cl01;Sle, 0
Majesty's subjects the same fair and eq'soofe; Ili?
the Right Hon. Baronet made all notes that ":µlOl
might suffer the issue to be unlimited, fern es 11 tors
always checked by its convertibility. As I°gf IlietiotfY
rnained convertible, he would defy any Itibe o'l tiiati
forth more of them than the demands about Lbe ,rf
quired. A great deal had been said 01301/Vis 1
States, but those who had failed there'rtf sac" • I
might be called bankers, were not in re"'i ' sod 3,
satins
net 0
were merchants and dealers. There ws,e soi ;6
,of any bank which had acted on pure`Ye at :asrilsl
diodes having failed. Let them I°o- Ill', bpi
where there was no restriction as to issue' no, it )
twenty" j,
of banks in that country was now r, elands d
,1,
circulation had not been added to 10,104 ditel
been when there were only six. tore be 9
issue more, but the issues were, dist biiforjt`'
Mr. Blair, in his evidence, had state"' ',he los d
that the whole of the notes issued bi, ; dayl,ce°,,,d
banks were returned every ten or twers'sy i° 61 ' r 4
attributed it to the fact that no one ba° :,.t ; fel)
to keep any bank notes in 'his P°es-ere.e t,„ 09
brought them into the branch banks, w's osissotreo.
transmitted to Edinburgh. It was not Pt
the amount of the circulation beyond wt',„st 00r5;.t0
for the wants of the country. The soilsl- tell)prol`.:1
rency in England was less now than it . del 100,
Instead of hoarding bank notes, as the'in:s' ;50 01
people now deposited them either in In 'Wei.- eleir
joint-stock banks, for the sake of their was °c. ,)
0
in large transactions the currency of too
erf
economised through the operations to f„rrS:oi. '
ing- house. This they were able osa 0 al' el
a much less amount of currency ntsysloo9.r2
It was not fair to attribute to the prese The t fl,
bankruptcies which had taken place' aretites ever) ,
Wright's bank, in this city, one of the, l'a 0101)116
which had taken place, had no conneet2en goo. oe ;pc(
the present system of currency. '„es, th,' cle,-01',
then quoted from Mr. Kennedy's evale" Lila -0
that he believed a single bank of issue 0). a gte of i-g
ti‘e to Scotland, and that..when there orrietioi!..tte, kt ,
bullion in the 'sank of England, the re!' t of
..sl'tell
would be limited. The effect of the 0:
_exnoegel,o,.'et,
the country banks had been greatlclskilotY
the Right Hon. Baronet. Why, even hoe ho" 001
the system of banking was imperfect, t
~at the.. brrt
excessive issue. He (Mr. H.) denied, t_
c'ss 04..ilesis.',,a
private banks had anything to do with ti_70,,,,t per iiv.,;s
ruptcies which had occurred w ithin a, iu,,,agl(!oler:i
very little to do with the comeatrei' i samba, she I:1
had taken place. In 1819, accordin4 1..u.005, 'to rior
of the Committee of the House of Conv_iid of re/
of the country banks was fifty millions. ' ~,it,e
. , of f ile
call
of England thirty million,. The C°ll' e theo 'll
mencl,d an immediate contravtio, # o call
issue. Accordingly, in 1820, the istkiij thfilyr to
of England was reduced to 23,000,0001:pc 03' yOte
of bullion in its coffers increased fr'" '"rei'l°4-tiee,
a half, which it bad been in the P,. Iv iisadel e
8,000,000. On the 28th February, lt3'ooo, allAsell
[lank of England was reduced to 16,400i;0s incrpigi is'
lion in the coffers of the Bank ,a,11; 01, bo it"
11,000,000, thus showing, that its t/ SI, store.,ess', es
had contracted its issue, the bulliott in 10'7_, 011'4 oie4
creased. The lion. Member quoted fr
the pa,e14,,,,T,JS
turns to show that ex'',,avagant issue °nos eoliireal!pe"
Bank had kl,nn productive of disastgcoss
c'repc)(ll4(
4"4 `.,tat as they restrained that inkid tee ells vill:;ri,
the bullion in the Bank increased, an sa reas°oolii,.lo4
came more steady. There was no ri.nto 6 shit' #4.,
bßyunglicvoinf
gEintgsluanchd shouldcontrol beo over banks
,lvtilitllnii?
,tilifrrel;ol
miles of the metropolis. He did rlc't ,land is, la
any need for obliging the Bank of Eu.i:ii tiiew
did not lil'
much gold in its coffers. lie !,