The Sun.
London, England, 1844-11-22 00:00:00

BANKING IN SCOTLAND.
On Tuesday last a meeting of the county of Edin-
burgh took place, when the following report of a
committee appointed to consider the question of the
currency was brought up :
" The Committee having considered this important
subject in all its bearings, and having modified, and in
some. respects altered the proposed resolutions, report
their opinion that the resolutions, as now modified and
altered, should be'approved of.
" The Committee have not failed to consider the men-
, sure enacted during the last session of Parliament, by.
which no new bank of issue can be established, of which
measure they highly approve.
" And they would impress on the county to give a
favourable consideration to every measure that may ix-
; proposed for improving the monetary business of the
;country by increased security to the public. and adding
:to the safety of all the parties concerned, if such be re-
quired.
" But considering that the banking system which has
been so long pursued in Scotland by the issue of small
notes, the granting of cash credits, and the weekly ex-
changes by the banks of all the notes in circulation, has
been most beneficial and satisfactory to all classes with-
out risk or loss to any—has tended very greatly to till
.prosperity and improvement.of the country—is now in-
creasing these in a most extraordinary degree, and from
,its duration and efficiency, is interwoven with the habits
and transactions of the people,' the Committee are- of
opinion that a change of that system is quite uncalled
for, and would infallibly produce most injurious conse-
quences,"
Sir JAMES Ginsos CRAIG then moied a series of
resolutions highly approving of the SCOtehlsystem of
banking, and condemning any alteration in that
system.
Lord MELVILLE said he was sorry to state that .he.
was in a predicament that he could not concur in the
whole of the report. There were, he admitted; man)
points in which he agreed' with the report. In com-
mon with the rest of the country; he agreed, for
stance, in all that was said about the stability and
success of the system of banking in Scotland, and its
great utility to the country. Therefore, upon this
point he had not one word to say in opposition to the
resolutions. lle had difficulties, however, not only
as to other statements in the resolutions, but also as
to what they omitted. With respect, in the first
place, as to what was said about the abolition of th(
one pound notes, he was not in the secrets of Govern-
ment, but he had no hesitation in saying that he did
not believe they intended to meddle with thatsubject..
at all. events, he did. not think that measure called for..

It was a system which the people were accustomed
' with in this country. Gold might be more solid and
preferable on the whole, hut so long as the people
preferred this system themselves, he thought that
Parliament would do very' wrong to compel the abo-
lition of one pound notes. Ile also demurred to the
statements that the system of cash credits depended
upon the issue of one pound notes, and that their abo-
lition would form an impedinient to the system of al-
lowing interest on deposits. On the latter point he
referred to the operations of the joint-stock banks in
England. But, as ha had said, he also objected to
the omissions in the resolutions—for there were omis-
sions—and one of them a very material one, which
pervaded every set of resolutions he had seen all over
Scotland. The commissioners of supply, town coun-
cils, chambers of commerce—not one of them touched
one most important point in this matter. It Was
stated, and stated very truly, that the currency of
Scotland was about three millions of hank notes, two-
thirds of which were small notes. Now, the gold
circulation of England was stated to be about
23,000,000/., which he took to be exclusive of what
was in the bank ; but including that, the gold circu-
lation of England might fairly be stated at about
30,000,000/. Now, although it was not stated in the
resolutions before this meeting, statements had 'been
made elsewhere which would lead to the conclusion
that notes ought not to be convertible. Again, there
were others who contended, that although notes ought
to he.convertible, still, provided each bank has a total
deposit to answer any demand upon it, this is quite
equal to a gold circulation in this country. In reply
to this, he would remind gentlemen of some very
dangerous periods that had been encountered in Eng-
land, when there was a drain upon the circulation -of
the country—a drain upon the Bank of England,
which left it almost empty. Such drains had occurred,
and might occur again. We may have drains
from short harvests—we may have drains from fo-
reign speculations, no matter whether wise or unwise
—people come demanding money, and they will have
it. We may have drains from foreign wars and sub-
sidies, and from various causes, but the greatest
danger is from short harvests. It was the duty of a wise
Government, then, to see that the circion of this
kingdom was in such a state, that wiltin'any emer-
gency shall occur, we shall be able to supply the de-
ficiency' caused by the outpouring of the coin of the
kingdom. He wished to know what Scotland was to
de in such a case ? Could she furnish her quota ?
The population of Scotland was estimated at one-
sixth of the population of England ; but suppose we
.had to send six millions of sovereigns abroad to pur-
chase corn to keep the people from starving, would
• 'Scotland be able to furnish her proportion of that
sum Then who would ? Not Scotland, but the
Bank of England and the people of England. It was
said that if we had to keep up a gold circulation it
would occasion an additional expense, which expense
would fall on the banks and ultimately on the coun-
try. This was quite true, this was an important
admission, but if it did not fall upon the people of
;Scotland it must fall somewhere—it must fall upon
the people of England. Now this might be all very
-well so long as the people of England submitted to it.
But suppose it otherwise, and suppose the people of
this country starving for want of corn, where was the
money to come from which Scotland ought to contri-
bute to purchase corn from abroad ? 'Was it fair to
ask England to bear this burden for us? As a native
of North tritain he did not complain of this state of
thinp, but he did. not at all wonder that the British
Legislature and the Bank of England should feel a
little sore-about it. Then came another point for
consideration—vhat should be the remedy for this ?
He repeated that he did not like the idea of abolish-
ing the- one pound notes, but he thought another
remedy might be found. He should be sorry to see
-the abolition of one pound notes, because that would
be adverse to the feelings of the people, who con-
sidered it more convenient to have small notes instead
of gold, because, if otherwise, they would require a
gold circulation of two millions, in addition to any
`little stock. in -their coffers to carry them 'on from
, time to time. Now, whether Government could de-
_vise any measure to provide for this contingency was
more than, he could tell, but we should see. It would
„;certainly be the duty of Government so to arrange
matters, if possible ; but it was idle for that meeting
to tallhif *hat measures might be in contemplation.
Lord ROSEBERIi said he must acknowledge that on
hme hpaudilieesecitiheesstitioantioinhaitn haarrclileiln-egr caotmade beecfiosir6e hntihmanhoaidl
by an
explanation as to t
this. He wished, hhoew egvreoru,
n- tdos gaunadrd
himsreasonelf
s
which that decision was founded. He entirely
approved of the general substance *of the resolu-
`time and report which had been pfesented to the meet-
;fig; but he did not altogether agree with some of the
details and arguments employed in these documents.
Ent, before tating . the grounds upon -which