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

More
of tes. than would enable them to change their
As long as they kept up the corn-laws or any
iler; system that caused sueli a drain upon the bullion,
nWoted be derangements in the currency' and sonse-
s_e,,t
,e ceiernercial einearessment ; and it must be re-
le sted that this corn, in being paid for, had drawn no
• then tin millions sterling eut of the country. It was
hat ne„
"ad
al essary for him to go into any further details. He
uove men there, in his Opinion, the proposition of the
rilMe
Tit was sound and where it was unsound, and
though he should wish the measure mo:lified in the in-
stancesll4
he had shown, be had stall great pleasure in gi ring
support to it.
Mr, se
ODEHOUSE said it was his good fortune to be
n_Placed line a part of the country where the banks were admirably
na e d, where the people were satisfied with their ma-
geme net,
them. an d where they had the greatest confidence in
hey deserved now the opinion which had been ex-
oPfret_s.cd lsy Mr Huskisson in 1810 when writing on the subject
ele7tlting generally. That eminent authority said, " Manyl.'ennarge them as being at the root of the evil, but let the
rk)pa-
stock be restored to a sound state of health, and the va-
ult ramifications in the country would soon be found to de-
serve
no blame." He ( Mr. Wodehouse) did not wish to ex-
tenuate the evils that had followed from a too great ex-
,7_u_slon of the currency, but he was afraid the Govern-
t7nt. would soon find that they had run into the con-
") evil, and had subjected the country to the chances of
micon-
e top great
, contraction ; and, unfortunately, they were deter-
eeo not to give way at all—to permit of no relaxation what-
teir_et their plan. They said—" We will hold you fast and
ssixi!'t. and would listen to no suggestions—hear of no eompro-
to 'e To him ( Mr. Wodehouse) it would be much pleasanter
the7,„fith.the Government if he could possibly do so. But
di,ntthhtem no alternative ; he wished to (Sod they would do
ntinder these circumstances, he could only satisfy his own
fulfilment of his duty by voting against the propo-
ses of the Government.
Mr• C. BULLER said, as he bad a little to do with the
Wording of the re solution of his Hon. Friend, he felt some dig-
oe ment
Hon. Mebm at the ojectiberonsfor th
Monty-seat. had been taken 'tot
it the form
s rnt it• The objected . It
ote. toed as if no one could be pleased with it. The Chancellor
Mererite came forward, and with what was rather a
Mere rile taunt of the Government, said it would have been
teatmanly to have moved that the Bill be read a s, cond time
tht daY six months; but his Hun. Friend did n)t object to
the renewal of the Bank charter, therefore he did not oppose
fo! great object of the Bill. Had he moved the second reading
ss,` that day six months it would have implied that he did not
itch the Bank charter, to be renewed at all. It was not his
'attention to go at any length into this question, but he must
ssa.te this, that it had never been clearly laid down with what
insect this interference with the paper of country banks was
d
we; Some said that a large issue of parer by country banks
47" endanger the convertibility of the paper by the Bank of
tiveß 'and The Right Hon. Bar net said that it would check
rtoeation. Why ha
d he red t them that long list of
lvatse banks which had failed, excep
tp to intimate that he
I, as going to provide a remedy for this undue speculation? He be-
t.:l,eci that the law as it stood did all that a legislature could do
pst_ithe circulation of the country on a sound footing. He ap-
is,"e" of the principle of the Bill of 1819. He thought it
"hatfuunded on honesty and common sense—it put an end to
e. Rasa kind of lie by Act of Parliament. Notes being but
eortn
!es to pay, it enforced the payment of those promises as
Is
enforce the performance of any others. He equally
seoved of the Bill of 1825, which put an end to the circula-
f-tt of ene.pound notes. The Legislature might always inter-
ees' not to regulate credit, but to regulate what were frauds
credit
me . • It had not been shown that the disasters of the
/it rican banks were caused by speculation in banking only.
hwere caused by an over-speculation in all kinds of trades.
ere the system of small notes was carried to ex-
e • The " shinplasters," which were in general
"neulation, were notes of 2s. each, or half a dollar. 'Where
;0411'1(4es as these were current, it. was. impossible for any one
tLeaow the stability of the banks issuing them. He thought
1;1 Government was also right in taking those measures which
st: to the establishment of joint-stock banks. He thought
esetineg was more unwise than limiting the number of persons
rerged in banking. The precautions that had been taken had
Y answered, aid wherever the failure of joint-stock banks
t,!'d taken place he believed there was no instance in which
helders of those notes had not been paid. The object of
g; Present measure was still farther to change the banking
je",tern ol this country. There could be no doubt that the °b-
ole' of the Right Hon. Baronet in limiting the paper currency
es the country banks was to prepare the way for the ultimate
teblishmento) one bank of issue. Now this limitation
jee„(Nr- huller) objected to. All their measures on this sub-
th-`„nad hitherto been sound, but, in adopting this principle,
ofeJtight Hon Baronet was embarking on the unsound course
eporiting one particular form of credit. The only result
WO, sd he, that the people would resort to otter forms of credit
qae-e,"; would be less safe. Much confusion had arisen on this
Sele"On by the lee of the term " paper-money ;" the term was
te.fonsistent one. What was the proper meaning of the
ofir,",_izoney ? It was some peculiar commodity of value
ets:ao all nations had agreed to take as the instrument of ex-
ti ge• What was a bank note ? It was nothing but a par-
ectalar form of credit—it had no intrinsic value. It might be
anjagible instrument, but it was intrinsically worthless, and was
41,„Y a form of credit. He objected to the plan of the Govern-
et, because it was delusive, and was calculated to produce
c` worst effects. He could not see upon what grounds the
do°::rnment were justified in pursuing the course they had
th;',,' There could be no doubt that it was the intention of
bko,"ight Hon. Baronet ultimately to put an end to private
is ,-,71 altogether. It was true that he did not attempt to do it
""e first instance; but he put such restrictions upon them
'el:ntild cause them to give up banking business altogether.
present measure would cut down the circulation of the
Catry banks from eighteen to ten millions. He considered
prl Motion that had been made by his Hon. Friend a most
.°Al'lO7 one, and he should, therefore, give it his support.
heal". 112A8 FERMAN would vote for the. Governmebnet,cobnu-t
tide °Ped that some of its obnoxious regulations would
tael'escl in Corninttee and removed. The respectable. country
Were tied do;Fn in too stringent atticy, by having their
rehati,
missy m confined to :.,ea..yeragferomof last two years, a
prudence and others
during which, some of them
Pelr''settuence of the difficulties of the country, had been corn-
teased, to curtail their issues. The proposal made by the
41.-,."'Y bankers, that they should be either permitted to issue
the amount than the average of the last two years, or that
4,!°4nnuin should be calculated upon an average for the last
VenJears was certainty not unreasonable. He wished to a-
-10 to, the subject of a memorial which he had presentedd
Rastut First Lord of the Treasury, and which
%It ,si,gned by a great. n.umbe_r_of the bankers in London,
Platning ot the restriction of the circulation to 14 000,0001.,
her P:°P.sing that a power of expansion should be vested in
Prn2lajesty's Government and in the Bank of
England.
W' what they had heard that night farm the Right Hon.
.
to tistLs eman he feared that the Government would not consent
the sat Proposal ; but he hoped that farther time might make
taffeta lock mere kindly on the proposition It could not be
the tnat 14,000,000/. was the exact amount required, and all
soy asked was that a power of expansion should be vested
thi-tw b here, so as to prevent a crisis, in the event of such a
lag eing likely to uccur.
had "' WA RBURTtiN said the Hon. Member for Liskeard
Of Pied what was the object of the Bill ? Why, the object
e,,,,p'ne Bill was not to prevent speculationsano Bill could
to ent that • not to prevent baukruptey—no Bill
hoVidt, Pleven; that ; but to ensure. convertibility—
res, sit sort of convertibility with which he had heard, to his
sherlse, the Mort. Member for Lambeth declare, that he
',sits; be satisfied that the paper should be worth so much
The or so much Coffee.—(" No, no," fro -n Mr. Hawes),
Ibleji"n• Member denied that; but what was the test he had
teas." during the term of non-convertibility? Why, he con-
liesi'ed that thie Bank had conducted itself properly during that
ale rki, and that the currency had not been depreciated.because,
tesditited according to its value in sugar and certain other
scora-
bss 'es, it had not undergone depreciation, The Hon. lent-
sitin °r Lambeth had certainly not gone so far as to set up an
ass, rkt standard of value, but he had set up a standard of
be', which, he admitted, was something tangible ; but that
11), not what he (Mr. Warburton) understood by convertibility.
Itstionsertibilit ce understood the convertibiley of paper into
he apTed the objet of the Bill was to secure that convertibility.
°4lit`l"n• member for Warwick contended that the Bill
ea te- not to extend to the restriction of•country banks, be.
`boss k't appeared from the statements made by persons from
4141,1'1'4,a, before the Committee of 18-39-40, that they were
eeeit e to regulate their country paper in conformity with the
stl,2es, or with the gold in the hands of the Bank of Eng.
it appeared that the country bankers never slid con-
bilit t° these exchanges, and it was indispensable to converti-
n, that they should do so. The only objection that could
urged against the measure appeared to him to be
Pied that the Bank of England paper, should ex-
del and contract in proportion to the stock of bullion ; but it
501'0 Provide the same with regard to the country banks, and
*14%4 was defective. It seemed to him of little importance
411,,r country bank notes were convertible into gold
tatisea of England notes, but it did not go far enough, inas-
tt as It did not make the country paper expand and can-
'ars '4ent the Bank paper did. Ile did not find fault with the Gri-
ll
ee for that--the present opposition showed that they
to attem t it. The had
let tr°visled faosrfairtsue'xtpwanassiopnrudent and contraction, but theyy had
!Late*. 4„sx linnet founded on the average of the two preceding
the ,ss The effects to be apprehended from the contraction of
,l'tenlesrresney had been greatly exaggerated. The only conse-
,4on.`,.et that contraction would be the substitution of a small
La ;l el' of gold for the paper which would be withdrawn. Now
war 'Lose that this great country. which at the close of the
`•s old "are an expenditure of 120,000,0001. per annum,
11(4 provide a little gold for the deficiency
liner Z. currency, was toe absurd to maintain. Any
entnent was, that a great deal of gold was produced in
1;01414” and that Russia was so jealous of our power that she
had h net allow it to come into this country. He
ass hes,satrd that " Aurum per medios viral Sattellite.s.;"
Asths "(mid remind the House that, durirg the war, Air.
throe had •
ght,. carried the gold for the payment of. our
_troops
t 'lees we midst of the French army. It was ridiculous to
this ' that any jealousy could prevent gold from being brought
'alas feftntryagethe facility of its transport rendered it se applie
bklntl 1;15r the Standard of e'alue. It passed over
.all obstecles ;
Ifs„ thsruagine that a poor country like Russia would lock
st.ti nit, gold mines from us, was perfectly absurd. The
kat; 0,11" not profess to prevent speculation, which
ih't say 4 one
of the elements of rise of price. . He .did
th °se bs ,Was not an element, for if every man deposited gold
sne""x, and had credit only for the amount of that gold,
erne
pra of the country might be carried on without
ey nY gold at all • but if they gave him additional credit
ttetpak_egas, him ad. ditional power of purc_hase, and that would
to et w00t.3 ot price. Lie was happy to hear that the Gove_rn-
-41..a115,„, w firmly resist the application of the London 1/tinkers
e:tp Nit), an., expansion of currency under circumstances of
rrene,";sit vsould destroy the ehole plan, by expand g the
exa only ;_the very period when it ought to be reentracted.
tesaY te maintain convertibility was to contra4t and
se!Ciatis
In": currency in proportion to the amount ofod the
14'ring co's• The Government had adopted that m e f
sthat DAR nvertibyhat was the object of the Bill, and
t:ir. overnment deserved the thanks of the robot's',
elttf,'lt of EsIlY admitted that if they made the issues of the
kt°o_,ettier g and dependent upon exchanges they could not
lie!ters eave out h country banks ; but whet the country
bzets,l nodstelsnpla of was, that they were plaeed en too
to4ciellitleorris,.....beutaissl'loZhich would place not only the country
who depended on them, in a very difficult
.ker, `, Hear, hear," from Col. Sibthorp. ) Country
thapir issee;a' during the last few years, been very eare9
k. too _a nd accommodations, and it certainly was limiting
so'tthle, soanxirmr
"le to take the average of the last two years
Pee , There had been no recently but
:,:eti,,ineensu_ttlowe_
utraloc.seen called for by the wants of the
estieti wow, the effect of thus limiting the eirest.
,ignhdtueb: everybody to contract their COMmer.
triltet(skLtZbatlon in
the manufacturing districts tha deficiency of
Partially remedied by mere of Nils.ef
farrne*ind if j_ could not be therms/ in the agricultural diss
een r could
nurey so contracted the basis of the circulation, the
showed. 4 Possibly have that accommodellon which he
th.contraction in the issues was very p.essekeintlst
‘anbi oatenothie adoption of 6, eyetem of small bills, thee
kern' g F"1 be more ruinous. Wi
tined fordth respect to the
thate-ernu,s, a greater issue than that sdlewed by the
teens nrinci lt was very strange that the Bill should mu.
ed in ctst? e, and, at the same time, permit a license which
te.`er c,,._Qcs uPPosition to its provisions. thought the
na.ek Isocil
s should detin_e_id be farther extended, nest,pt the coon-
tro,osisr " aurae advantage from it.
"AR Would have beets iv,ery favourable to the
seat the B•
be read isecoild tjxne that day six