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

4,.ters than wool; 1 enable On in to change their r
"thee, ,As 10sse• ••e• ;hey kept up tile corn-laws or any
there -I.'stene that ten-ed Si 11 a drain upon the bullion,
ilaetitly4l(l be derangements in tLo currency and conse-
tete, refel,aresereent ; and it must be re-
t!ed that this corn, in being pui•l For, had drawn no
tet Tillan ten millions sterling of the country. It was
ii,l%eseer.y !oe leeei tog,, into any fut•ther details. lie
f;;.11 en eller°, in his epinien, the proposition of the
tleZenhlent wee soiled tel Este it Was unsound, tied
itmlr he shout! wish the measure moilified in the in-
lopLai sleeve, lie had still great pleasure in giving
p et to it.
list )REHOUSE sail it was his good fortune to be
enductte,a part of the country where the banks were admirably
Neel eet where the leople users satisfied with their ma-
them. 4,t, and where they had the greatest confidence in
fees.ed'lihey aeser,
ed now the opinion whith had beenbexe-t
Nee; Y Busltison in 1810 when writing ou the„su je
?lee, generaily. That eminent authority said, Many
ttsk
slete them as being at the root of the evil, but let the pa-
tios, .°ll' be restored to a sound cute cf health, and the va-
tereralnificatiens in country would soon be found to de-
"o blare, e 11 ( 'Worlehouse) did not wish to eXx-
-41144te • e r. ' tati,ion ;.e evils. that had followed from a. too greatG en:
"l the currency, but he was afraid the over
Fad
t that tlaey had run into the con-
eliected the country to the chancesdt
ro-f
tsieedenr„tat ennti•action ; and, unfortunately, they were
her 't to give way at all—to permit of no relaxation what-
'd
tel,, their plan. They said— ss We will hold you fast an and %coati! list. nto no suggestions—hear of no eompro-
tag wiTk° him Wodehouse) it would be much pleasanter
I":7lpi,'",,,the Gove'rn e ' if he could possibly do so. But
I,r,;"r° alternna'i ;he wished to God they would do
Isiedinuer theqs eiretunstaeces, he could only satisfy his own
of thee fh:Lihment of 'his duty by voting against the propo-
e tee Ge„,...
-et c
yseereteent.
',"LLIEII said, as he had a little to do with the.
lii°` the rsehation of his Hon. Friend, he felt some (Its-
Ine"t at the reeeetiat bad baken to h form
e1:4044 Hon. Memj bero fart! Montreseeen objet objected tot it .
It
no one ereilil be pleased with it. The Chancellora
etoe'rit "'"equer earne ferward, and eith what was rat
been
tigate tel;l"et of the Government, said it wodulda_henanved
time
ti?iseto,yeesiaY ton,have moved that. the Bill
didFriendberea
it object to
sups,
the 'tneeal „onits; but his Hon.
erp,, the Bank charter, therefore he did not oppose
th,t, ,uo.) et of the Bill. Had he moved
.the second reading
l'iiilts:;4l•ll3 six moions, it would have imehed that he did not
eteetiee ''tik chatter to be renewed at all.. It was not his
Its it., t° To at any length into this question, but he must
ss-l'iPet.l”l: !II it it hail never been clearly laid down with what
‘nle. '!;' interference with the paper of country banks was_
°ol'`'ratt said that large issue of paeer by country banks
glianTia.tger thec•onaverbbility' of the Paper b. y the Bank of
4sr The Right Hon. Bar .net said that it would check
,eit.stle',4ll'''''ion. Why had he read to them that long list of
Ll 4 ',:lnks which had failed, except to intimate that he
1ell:0:°,1ltovide a remedy for this undue speculation? Be be-
lle. tiC` the law as stood did all that a legislature could do
Ptesed the
eirculvion ofthe country on a sound footing. He air
Wki f of the prince de of the Bill of 1819. .He thght t
belllZ?deft on honesty and common sense—it put amend to
Vice es-' a kind of lie Act of Parliament. Notes being but
e"aelle t,h,Psy, it en)fyoreed the payment of those promises as
etPleeet 're° 'ee the performance of any others. He equally
LAI of af the Bill of 1825, which put an end to the circutlar:
• k'ePourdThe Legislature might always in e 1
eat . note S.
reeulate credit. but to regulate what were frauds
en re". It
had t been shown that the disasters. of the
I'l4-'1 Wanks w nut
• •ed by speculation in banking only.
ate- I'll eau, I bele aouver-speculat ion in all kinds of trades.
ten tree, s'y,s(teni: aonf mall notes was carried to ex-
""lati,.l4he shinplasters," which",
isfvearednilainr. generalwbere
,41tittik,t,Isea were notes of 2s. each, or
impossible
te toe t;_, these. were current,_ it waa isossible for any one
Gover"ne stability of the. binks issuing them. He thought
as to tee meet was also right in taking those measures which
,I•ateß w establishment of joint-stock. banks. He thought
1,512,ri. as more unwise than the number of persons
s'Y
kle'''btlaking.. The precautions that had . been taken had
the tkle:e'ed, aed wherever the failure of joint-sto.ck banks
tieiNd, Place he believed there
bweans naoidinstalubcee in which
object of
!elere,..rs oral' those notes
thilaid
frainittheretopehange the banking
Yj;;ttre easure was s
%le 1 Country. There could b.e. no doubt that the oh-
j:thee Right Hon. Baronet in limning the
fpaper currency
kkliiitatry banks was to prepare theNen-awy the ultimate
thisor limitation
tiililVerof one bank() of
N l'huhert) been sound,
hut,
IsutheCir measures on this sub-
t) been in adopting this principle,
ke"aitine:!l° Baronet was embarking on the unsound course
klf.lli ° "'le particular form of credit. The only result
th't the people w iuld resort to other keens of credit
itiltiocl'id be less" sale. Much cocfusion had arisen on this
;" the term was
sekee Y the eof the term pa.per. money
let --nest
Stiateeee one. What was the. proper meaning of the
A,,5ae1i,..44; It was some peculiar commodity of value
tele eeleons had agreed to take as the instrument of ex-
ne'lltiee_What was a hank note ? It was nothing but a par-
kelteeT of credit—it had Mint._ia It might be
),Ito Lhattement, but it was rinsical y worfthtlbeses and was
'Govern-
tht tZra, of credit. He objected t o tahaeepallaenn_
(14, ie.„'earl,se it was delusive, t andsee calculated to produce
uponw what grounds the
kietitrattee,"ts He could. n°
• rr• the course they had
the • IL-, were justified in pursuing
here could be no doubt that it was the intention. of
ki'L'lalb-:1°a• Baronet ultimately to put an end to private
el'flicirtbee. It was true that he did not attempt to do
)L•seer- instance • but he put such restrictions upon them
Zere,- ,emus then; to give up banking business altogether.
16's, tneasere would cut down the circulation of the
)oetieatlks from eiehteen to ten millions. He considered
?ere'," that had been made by his Hon. Friend a most
ittitt• and hEItAIANe sheath!,wo thuld ere
vote or tfore, Ftvehite hGisnsvueprpnomr
ent, but
11/40N f""t some of its obnoxious regulations would be con-
tistesltl c,
e, erittee and removed. The respectable country
keetictarrntn
e tel down in to stringent a way, by having their
Ole,. confined to the average of the-last two years, a
kl4tegelhg which, some of them from prudence and others
teerte-'el_lee of the .
.difficulties of the country, had been com-
to eagittail their issues. The . proposal made by the
tht'ltis , 'kers, that they should be either permitted issue
tketie4'hlount than the average of the last two years, or that
should be calcula•ed upon an average for the last
I certainly not unreasonable. He whisdhedre%oenated
at, 11e. the
of a memorial which he aandp
ee„' ,subject
Lord of the Treasury,kra
in which
Aeleisiej.ced by a great number of theban et.
14
ooLoondon,
,000/.,
kelkoN ot the restriction of the circulation
k ill"' that a power of expansion should be. vested in
Cl.ek",s43t's Government and in the
omitßnk of England.
t111,4141-,:theY had heard that night fr he Right Hon.
%,"tt 1)7,1 he feared that the Government would not consentk
; but he hopel that farther time might mtabee
th 4•1,1;- %ere kindly on the proposition. It could
andno
INlstketil4,ooo,oCo/. was the exact amount required, all
11411ther Was that a power of expansion should be vested
14teir,l'„ao as to prevent a crisis, in the event of such a
1. Wl' "kely to occur.
Nee"lll3ußroN said the Hon. Member for Liskeard
8111 hat was the object of the Bill ? Why, the. object
ckiNt.'"tlil was not to prevent epeculatione—no Bill could
44'4 t_Se„ ; nut to prevent baukruptcy—no Bill
'etbeteat l•""t that ; but to ensure convertibility—
rosteie, the
of convertibility with which he had heard, to his
hol'a te"le Hon. Member for Lambeth declare, that he
IhJear ,Eatisfied that the paper should be worthi so much
higteeoe.""„ much coffee.—(" No, no," from A r. H
41,,Z(Ifit:,nber denied that; but what was the test he had
hr.'„.,"te,,'"g the term of non-convertibility? Why, he con-
The Bank had conducted itself properly during that
hiestee'e that the currency had not been depreciated, because,
filities'e'teet,ording to its value in sugar and certain other corn-
:rad not undergone depreciation. The Hon. Mem-
L'llheth had certainly not gone so far as to set up an
f
l'et4etee,•„-ndarsi of value, but he had set up a standard of
y -le", he admitted, was something tangible ; but th at
111,111''.;4iaht•;1,1e (Mr Warburton) understood by convertibility.
.Q. 44 Yhe • understood the convertibildy of paper into
ilea it of the Bill was to secure that convertibility.
S"t11-nlIt•t:Almtbeur ifoer Warwick. .contended that the Bill
le,ei ee extend to the restriction of country banks, be-
i',l4ol,,i,e'sl'eLaree from the statements made,by persons from
k'tec to ; uefore the Committee of 1839-40, that. they were
Nte3;o"3lll.ate their cou.nt, y paper in conformity with the
ink It r with the gold in the hands of the Bank of Eng-
-1444, thel4PPeared that the country. bankersd. never did con-
K"i' exebanges and it was in ispensable to convertt-
.taeabiheY should 'do so. The only.- objection that could
;tee areed against the measure appeared to him to be
1;,',1n1--114d_ert that the B.ank of England paper should ex.-
,ertp jecvesract in proportion to the stock of bullion ; but it
:14,0 the same with regard to the country banks, and
• e." "feetive It seemed to him of little importance
Roth 01.4)pt'l'trY bank notes were convertible into gold
V.') gland notes, but it did not go far enough, inas--
LVA th'll,(l not make the country paper expand. an con
'lo.s4ht e "ahk I did .e did not find fault with the G0,411/;etiehthate_
,411/;etiehthate_
ath.leer ;sent opposition showed that they
s 4irlee' a far as it was prudent to attempt it. They had
)elle",tbaa'•l'lt, the its expansion and contraction, but they had
14'n feended on the average of the two
Inreceding
4'e 'tee "fleets to be apprehended from the contractionp of
ee•if• hd b
heter thata een greatly exaggerated. he only conse-
eoetractgnm would be the substitution of a small
11aPleee itAtl for th p per which would be withdrawn. Now
tl4o. 15i tetliat this great country, which at the close of the
tit, the ant " expenditure of 120,000,0001. per annum,
e r PNytde a little gold for the deficiency.
1141`3,'' "envy absurd to maintain. Ars-
e ei4, tereer4 es was toe
11:1441'4d was, that a great deal of gfold was produced in
4tlci heN t Russia was so jealous oth?i,iur power that she
It 45 4(1 °"' it to come into. . country. He
thlePeela. at Aurum per medios neat Sattellites ;"
etre,'lle h ;remind the Reuse that, during the war, Mr.
I:rher tee '0 cal ried the gold for the payment of our troops
:164' tha-. "'lst of the French army. It was ridiculous to
441,.,"aerki4"Yjealouse could prevent gold from being brought.
1-q" tt 'Yee-the facility of its transport rendered it se appli-
Lkill standtral of .1 It passed over all obstacles ;
s'els 16,e that country-aloe.
like Russia would lock
,1 n"'d apnea irons us, wes perfectly absurd. The
rhtte,..hlY ProfesS te prevent speculation, whiri.hd
04'1,4144:e "f the elements of rise of price. . He i
Lt ualik not an element, for if every man deposited gold
thilht;i4vre':ll,llo. bad credit only for the amount of that gold,
Z'Yhany ere .' the country might be carried. on without
!kt'le at all • but they gave him additional credit
rlse of additio'nalpol power of purchase, and that would
e -lea His Was happy to hear that the Govern-
et,ie
e resist the appliCation of the London bankers_
er4oP,ansion of currency under circumstances of
tth d"tr th ho'e plan, by eanding the
le hie '-e v °- ht to he contracted.
te tsay ery period when it ought
eiNee the ° reatn•ain convertibility was to contract andll
teNtine'keteeLirrenee in proportion to the amount h
. the Government had adopted that mode ofd
th, ,eertilet
4Y—that was the object of the Bill, an
A letirjernment deserved the thanks of the country.
hlit'ee,4,lllP..egialti_iatlinitted that if they made the issues of the
leeee''...uePentlent upon exchanges they
the
not
cleave
the country banks ; but what country
n
Nll, 1,,,"41ned of was, that they were placed on too
° hut thoses'l'" hieh would place not only the country
tit ker who depended on them, in a very difficult
had "ear ,v 1 s
tt
duri frtm Col. Sibthorp. ) Country
tate:l4 and "g the last few years, been very careful. in
ll' nkrr, aethmodations and it certainly was limiting
ttlaie,cewlY to take the average of the laet two years
t'o,l e44' her; There had been no issues recently but
tl4)t, arld
theeen ealled for by the . wants of .
aett)l'asr'''llllba t 5:
Tfiect of thus limiting the circu-
leers. - •0 tonuce everybody to contract their commer-
-1:-1,1111n,terati In the rnaeufaeturines dbericts the deficiency of
etehilltln to
,le
be pprtially -remedied by means of bills of
e.l•4lnt:ti e4r:oct4f thsueeyhZeuild not betfisese in the agricultural dis-
ltpd contracted the basis of the circulation, the
14dde,'Peo°ss'biy have that accommodation which he
rl ( force ntraction in the issues was very pernicious,
114(1.i:thing c_``'° adoetion of a system of small bills, than
kart hee,eoericit."l(l be more ruinous. With respect to the
eNhgl,ll't Ea •"r a greater issue than that allowed by the
rieci 1Y It was very strange that the Bill should repu-
e.;dkve
04,1? a.t a permit a license which
'seek `-etuneil t hoetion to its provisions. He thought the_ - aaould be further lee!. sereettid eere, extended, and that the coun
Tesit.'l,slSeefte,"e berne advantage from it.
q°ll that 'N wo' Id have been very favourable t
the Bill be read a second time that do
ay six
the