The Sun.
London, England, 1844-05-07 00:00:00

GOVERNOR-GENERAL OF INDIA.

Upon Sir ROBERT PEEL moving the Order of the
Day for the House resolving itself a Committee on the
Bank Charter,
Lord JOHN RUSSELL said that there was a matter
of great importance for the consideration of the House,
and he wished some period to be fixed for bringing it
forward. He alluded to the extraordinary proceedings
that had taken place with respect to the
Governor-General of India. He did not wish
to raise any impediment with respect to the discussion
which stood for to-night, but after what had taken place
it was impossible that the matter could pass over with-
out some explanation as to the course pursued by the
Government, and as to the manner in which, for the
future, India was to be governed. He perceived that
his Hon. Friend, the Member for Montrose, had
a motion for to-morrow evening on the subject,
but it stood low in the list. Ile admitted that it would
be unfair on Government nights to interfere with the
orders of the day ; but still on a subject of such great
importance as the government of the Indian possessions
of this country, he trusted that Hon. Members who had
notices for to-morrow night would allow the I-lon. Mem-
ber for Montrose precedence, in order that he Might
bring the subject forward. It was his firm opinion that
some certain time should be fixed when the motion
might be brought on.
Mr. HUME said that his name stood first in the
notice paper for to-morrow with respect to the printing
of a petition, complaining of the magistrates of Shrews-
bury, and his name stood last in the paper with respect
to the motion as to the recal of the Governor-General
or India. Now, he had no objection, if it met with the
approval of the House, to take the last motion first, and
the first last.—(Great laughter.)
Sir R. PEEL stated, that he would not take any ob-
jection to the course proposed to be pursued by the
Hon. Member. It was for Hon. Members who had pre-
cedence to say whether they would give way or not.
Mr. COBDEN stated that he had a motion which
stood second in the paper for to-morrow. He had no
-desire to put it off; but if it was the wish of the House,
he would not stand in the way of the Hon. Member for
Montrose.

Sir R. PEEL coulditot undertake to say how long the
Hon. Member for Montrose would be, but he could
assure the House that what he (Sir R. Peel) would have
to say would be very short indeed.
The subject then dropped, it being understood that
Mr. Hume would have precedence to-morrow evening.
THE BANK CHARTER.

The order of the day for going into Committee on the
Bank Charter Act was then read, and the Speaker
having left the Chair, the House went into Committee,
Air. Greene in the Chair.

Sir IL PEEL then rose for the purpose of moving
resolutions. He said—There must occasionally be some
questions of such vast and manifest importance, and
which prefer such a claim, or I should rather say, such
a demand, on the attention of a Legislature, that all
rhetorical proofs, all dilation on the value of the
subject, or injunctions of the duty of giving
it an attentive consideration, become superfluous
and needless. I shall, therefore, proceed at once to call
the attention of the Committee to a matter which enters
into every transaction of which money forms the basis ;
there is no contract public or private, no engagement
national or individual, the enterprise of commerce, pri-
vate trade, the arrangements to be made in all the do-
mestic relations of society, the wages of labour, the
transactions of the highest amount as well as those of
the lowest, the payment of the National Debt, the pro-
vision for the national expenditure on the one hand, and
the command which the coin, of the smallest denomina-
tion, has over the necessaries of life—all these are
affected by the decision to which we may come on
the great question which I am about to sub-
mit to the consideration of the Committee. The
circumstances out of which the duty imposed on me
arises, are shortly these. In the year 1833 an Act of
Parliament was passed which continued to the Bank of
England certain privileges until the year 1855, and after
the year 1855 until Parliament should determine to
give one year's notice to the Bank of its intention to
revise the charter. Before, however, the expiration of
the full period of 21 years—before the arrival of that
term of 1855, there was reserved to Parliament the power,
after the lapse of ten years, by giving notice to the
Bank, of revising and reconsidering the charter.
That period will arrive in August, and it will be then
competent to the House, by notice to the Speaker, to
signify that within six months then following the House
will consider the charter of the Bank of England ; but
if this opportunity is permitted to go by, the charter
of the Bank, and all the privileges it confers,
will' necessarily endure till 1855. In the present state
of this country—in the present state of the currency—
after the inquiries instituted—after public attention has
been called to the subject—her Majesty's Government
feel it to be their duty to avail themselves of the oppor-
tunity thus given to them by law, and to submit their
views to Parliament on the subject. They are of opi-
nion that inquiry- has been exhausted—(Hear, hear)—
that all the information essential to a satisfactory judg-
ment has been acquired, and they think they would be
abandoning their duty if they did not undertake maturely
to consider the subject, and to take upon themselves the
responsibility of submitting to Parliament at once,
without, waiting for protracted inquiry, the measures
which in their opinion it is desirable to adopt.—(Hear,
hear.) Sir, I am perfectly satisfied the Members
of this House, rising superior to all party
considerat'ons and all private interests, will consider
it their duty to apply their deliberate and impartial con-
sideration to this great subject. I have that confidence
in the House of Commons, from past experience of their
superiority to mere party views or personal interests,
when matters of deep importance are under considera-
tion, and I feel convinced that will be the course they
will pursue on the present occasion. I ask them to-
night for no decision.—(Heir, hear.) In fact, I would
deprecate the delivery of any positive opinions
now. I ask them to listen to the proposal
I am about to make, to hear the evidence and
arguments I adduce, and to read and consider the resolu-
tions which I shall move in Committee pro forma, and,
having maturely deliberated on them, to come then to a
discussion, and pronounce their final judgment.—(Hear.)
I am not shaken in the confidence I have in the House, in
consequence of having seen publications inviting the atten-
dance of Members on the subject. I hold in my hand the
resolutions of a meeting of private country bankers,
held on the 17th of April last. I find they have re-
solved that the refusal of the Government to give in-
formation on the subject of their measure concerning
banks of issue naturally leads to the conclusion of their
intention to prepare some measure affecting country
banks generally, and that this meeting considers
it most probable it related to the local circulation of
country banks. Under these circumstances, it is stated to
be most desirable that all banks of issue, whether private
or joint-stock banks, should unite to prevent any altera-
tion in the local circulation of those banks, or in the
condition in which it is now placed by law. They
say that joint-stock banks and private bankers
should unite in opposing any such alteration.
Sir, I complain not of these resolutions—l complain nut
of the inviting Members of Parliament to attend here to
consider the subject. But I do hope that Members of
Parliament will resist the substance of those resolutions,
and will not come down here determined to oppose any
alteration before they consider the subject. I ask you to
consider the great principles which an alteration in the
currency involves. I ask you, are you so satisfied with the
existing state of things—are you so convinced that it is
utterly impossible to suggest any alteration in the exist-
ing law, that you will come down here, before hearing
any discussion on this subject, prepared to offer an in-
superable obstacle, by previous concert and understand-
ing, to any alteration in the existing law ? I know that
to be impossible. I hold in my hand the evidence which
should make it impossible that any such previous com-
pact and understanding, if entered into, should be
acted upon. Sir, my immediate proposition ap-
pears to relate to bank concerns, and in particular
to the issue of promissory notes. But, considering that
ten years have now elapsed since this subject was brought

under consideration, I hope I shall be excused if I de
_a it
not limit myself to a consideration of those pasac'Wea
which, in a superficial view, appear to determine;
issue of pronfssory notes, I hope I shall he allowed
go deeper into the principle—(Hear,
overns this great matt tr. I cannot discuss here 's*
principles on which we should establish an •elegaglii
ment to pay a certain definite value unless ;
are agreed upon the principle as to what constitutett;
measure of value in this country.—(Hear, hear.) '1;01
is the foundation of the whole subject. It is impos!„
to raise any superstructure, merely regarding the Cu,
latien of paper credit and paper currea4l
unless we first consider the principle which deterisaitha
the value of that of which paper is the mere represeao,
live, and it is impossible that we can come to a eoraisga
agreement as to the issue of paper unless we Itie
agreed as to certain great principles relating t';os,
measure of value alai the medium of exchange.
___„ol
Sir, I very much fear that there is not that colowt•
agreement as to this other and greater prineiPleol
which I allude. I am afraid there is not an unifiea
agreement as to what is in this country the stand of
and what merely constitutes the measure,
value. I invite discussion on that first 510
preliminary question, the foundation of all
want to ask what is, by the law and practice of de'
country, its measure of value ; what is that whien ,11
termines all contracts ? I strip this question e •
merely technical phrases, I want to consider it law.
popular point of view. The denomination of Yaltieiol
pound; I will not talk of measures of value, I speak cbn"v f ati
that with which your are in the everydayoccurrewo
of life perfectly familiar, and my first question is, di
is a pound, and what is the engagement to pay a ric
and unless you are agreed upon that, it is in list
attempt to legislate upon this subject. If a run
exist
mere visionary fiction, a fiction which does out awl
either in theory or value, in that case 'lll'o,
class of measures relating to paper currency 0t!
be necessary. But if the word " pound," a c°,sllool'
denomination of value, signifies something more "•tioa
mere visionary fiction ; if a pound mean a cpantiese
the precious metals, of certain weight and certain &u
iota'
if that be not the definition of a pound, another classrtnvi.a.
sures relating to paper curreacy will be requisite. r 2 talit
whole foundation ofmy measures rests upon the asstuniljel
that according to practice, according to law, sec° the
to the ancient monetary policy of this count* orr
meaning of a pound is neither more nor less than sit t.ll
taro definite quantity of gold, with a mark upon 001
define its weight and fineness, and that the eng4netbil
to pay a pound means nothing, and can mean Ili,
else than the promise to pay to the holder on 'chat)
a definite quantity of the precious metal.—(Hear' a, or
Therefore, I ask, what is the meaning of a poun
cording to the ancient monetary policy of this cony
The origin of the term was this :—ln the reign 0140
Ham the Conqueror a pound of silver was the ??t,tb; A
account. The pound represented both the weig
metal and the denotninatidn of money. By sues
debasements of the currency a great alteratioofty
made, not in the main, but in the intrinsic valne,s4o
pound sterling ; and it was not until a late perioa',
reign of Queen Elizabeth that silver, then beioeigli
standard of value, received that determinate
which it retained, without variation, with constantry
to alter it, until the year 1716, when gold was subnstsol,
for silver as the exclusive standard of value. P.oo'
standard of value observed up to the year 1716 wiled,
fixed in 1567. In the year 1717 the value of the roks
was determined to be 215., and for a certain r,e,ai!,
both gold and silver constituted the standard of s boll
But in the year 1774, it was enacted that no debt
be discharged in silver for more than 25_1'00,
then, in some measure, gold became the s'4'l79,
of value, and continued so until the year
,t'
when that fatal measure, the Bank Restrictionted
was passed—(Cheers)—and parties were pertoit
issue paper at their discretion, not convertible /o°oo,
That led not only to a new course of Pi's. 09
monetary affairs, but to new theories and net;Alt;
to the standard of value.—(Cries of " Hear, "aa6
From the year 1797 to 1810 the public mind was say-di
with these theories ; and it was not until the lattetolf
lle co
that men of sagacity, observing that the exchaof
been for a considerable period unfavourable to tittiOj
try—more so than could be accounted for byvil".4
called the balance of trade—invited the attention
Government and the Parliament to the subjet'ye6V
a Committee was appointed by this House to lirigeste
gate the matter. Various opinions were su ,S!
by the persons examined ; but it was generally iota
tamed that the pound sterling meant a definite clof
of the precious metals, and that those persons wastt
mised, in their issues of paper, to pay a pound sued
were bound to pay that definite quantity of g 001,
silver.—(Hear, hear.) That opinion was Yeti
pep
contested, and the House of Commons was not /ed
ling to acquiesce in it. From 1797 up to thatre
(1810) the prevailing opinion of the Putiv, ,
that the opinion was a mere visionary speculat'7o(
that something other than a particular weighwterlili
precious metals must be understood by a pound sob
Mr. Horner, and those who agreed with him, 1)54
their opinions ; but, Sir, I must do them the Just pel
say, that they did state what they meant by hisa is
sterling. They gave their definition t wolielaa
must also say has not been the case with glopea:o
who have published pamphlets upon the
question of late years. They never tell u
they mean by a p ,und sterling.—(Hear' beei
One of them said, a po md may be defined t°
sense of value in reference to currency as cOO
with commodity."—(A laugh.) Now as that 041,1
appear to be a very intelligible definition, anothereati
who fancied that some better definition was ileafres
a pound, than that it was " a sense of value in 1.. e
to currency as compared with commodity," Poo, d
definition. " The standard (said he) is a unit, a, 0,
numerical value of that unit is the interest of 33"
at three per cent.—(Laughter)---that , aro
and that which being paid in a bank-note may base OA
money of account." I will only trouble the Hoak pltalf
one more quotation : thelast definition with whiaPivesi
trouble the House, of the standard of value as old
that period is this : " the standard is neither g
ass
silver, but something set up by the »uss
and
to be regulated by pubic oPinione_(Laughter oilro
was supposed at that time that the doctrines Prlbsolloor
by the Bullion Committee were visionary
which had never been acted on in the forraer, Oh,
tary history of the country. This, howa°s6
not the case, as any one will percellatee4
will refer to the works of writers on th%-casyd
who flourished before the year 1797. Mr'
William Petty, all those who wrote before I,lle r,,
who had never been familiar with an unconvertesre
sd
currency, advocated the same principles thataviv_errie opt
cated by the Bullion Committee. Mr. into at
officer of the Mint, who wrote ab?
hundred years since, said—" All countri,stsat
fin
established a certain standard of weight and e"aerl,j,
their several species of coin. In England sated Asa
' quantity of fine silver is appointed to be the ,5,1,0 A/
—he was writing at the time when 51%
the standard in England—" and all payn3el- Oa;
are reaulated by the course of exchanged
founded on the intrinsic value of the metal. allossf.,"e
' the name." Thus this gentleman, who wretie,
hundred years ago, laid down the true principle sY Wry
ing the measure of value, as if in anticipation
troversies of the present day. He said, " ID), baOt
if we please, our denomination of value ; we
will „arc;
public faith if we like, but foreigners. ",,b-o,l"iiti
ample allowances for whateVer we may do n ',bee of
and however we may rob and cheat one anna,as_.y
will secure themselves, and make an arlaatttbirer;
distress by causing the exchanges to, tem, 101 l I
us." That was written one hundred algtnyo (I°,t!,
ago, and in my opinion the passage I w' 00r
contains the whole true doctrine of de
say ti!
of value.—(Hear, hear.) I wish I could
elementary principles were generally aceePtf.oei,' ,rrf°:
has ben my duty to read different publica_.,ll
am perfectly convinced that whilst there is ''',gfee
discussion of this question, there is nt,,ate ofritrj
as to what constitutes the standard of
surely give proofs of their knowledge °Avert Pa
when they publish octavo volumes.----v- la jet
laughter.) Here is a book published,tb plow
mingham—(Loud laughter)—and dated the sacs Iles
1844.—(Continued laughter.) I wish to &Judo Vie,
parties, and therefore I say, that I realif, 13006ter
that in any other town than
might in vain look for such a publicatio oti,„ I.
laughter.) And further I will say, that _vs ro'
book was published I did not believe it owlettovoS
power of any one man to write such a af prod so.,P;
sense.—(Cheers, and great laughter.) i-ue 010 trot:
is genuine.—(Laughter.) It is becausello_,•
ry
sense as this is published, that s• teadStag;
anxious the different principles e°,l3l.as th:A
should be thoroughly tested and understoou'otioa
of such books as this laugh at the
,a,hichailetc'lto
we are to have the standard of value now," coloa"osi
three hundred years ago. They saY. t'aevsea 54,1
and mercantile transactions have so Inc' t :istirs
what they were in the time of Elizabeth, 0: 0054
great want of knowledge in maintaining th ose iti.04„61
it is. Why there would be just as much s.eoas ralvtterc
that, with our increased population, our varwliiieh , )
and the many new circumstances to hafebeelP
our position, that we now ought ocl t,O
teen inches to a foot.—(Laughter totio
There is no more reason why you sbacli,l,atue atala
the pound should be the standard 0, plio
should say that a foot should be a foot a? e s'olatito
then it is said that it is a great injustlacoae. .aersot
Bank to issue gold at 31. 17s. lOid. an 0.1;i, wt oil,oo
the meaning- of their doing so ? Why' thleviett)
less than this, that it was the relat". cs' .;
If 5 JO
bore to gold with respect to value. .00 hoc te
' be made it will be found that the relatioet, toe r,:e
bears to silver is 15 and 2-13ths to 1-
old 5t ece sr
is said, why Csould not the Bank issue Lid
of 51. the ounce—that is to say that 5/. snlitaet
lent to 3/.175.100., but when you come it:o,7oo4.Riii
that an ounce of gold represents Nee Tatn. Yrieci'tsceot:eit
say he will not be bound by such a medial
r three ti eilt°toao
raise the valueof the sovereign t
shillings, but there will be no corresplirt:
()two° ch
parts. 1' he present market value of.ffsaled in the
~lertfeets
very little now to what was estabu ooticf_,c'_. diti, 0
George the Third. Silver is
58.
fP Old to esre 0:0
not ss. 2d., but the relative value o Th°eocl,ooo
very little from what it has
_unov, cota,reei to
contend for a relaxation of the mirror
the frglieb
rightly, that an abundance
er _value ‘'
toa
metals, though it would not alter
eace ou f races,yer4roo
gold, yet it would have an
d sup', .
doubt, looking at the increase . they
joatiodof
t even 11
Russia and other places, that even
5 ren tealteise
they would r
would act in favour of the debtor. 13,:: of guelcioil tboef
caret) :ost 0- fof
contracts by adopting silver for
to serve le et
pressure altogether.,
gold n attic try
"lver for on lis to
as
also a veosv v
gtooltdalc e
of coin, because it
ehlets °rye a
the purposes
write pams
commerce. And wise men
and to se
Thes
o ctohnisridd
eorbajbeicetiaonn
aisrticle
is
measure of value, while
we have taken gold as
..ourbulieeiltol
i'uld tea

'~I