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

commerce it- is likely to be taken out of the country.
Now I maintain that it is just because
gold is an article of commerce—(Hear, hear)—
subjected to the same laws which govern other articles of
commerce that it is fit to be made the standard ; because
Precisely the same laws as regulate the import
and the possession of all other articles of com-
merce regulates the import and the possession
by this country of gold. Bullion is distributed
according to certain laws which we may not well under-
stand. It is distributed over several countries, according
to the several necessities of each country ; according
to principles which the people of those countries do not,
perhaps, dive into; but in general I contend that the
supply of bullion is regulated by the same principle
Which governs other articles of trade. Seine say when
We have a deficient harvest, and there is a great demand
for corn, all our corn leaves the country because we have
no other manufactured article at the time to send in
exchange for it. But I believe that bullion has rather a
preference over coin for that purpose ; because the ex-
porters have a guarantee that it is of a
certain weight and fineness. Depend upon it,
coin will never be sent out of the country,
Unless it is more profitable to send it. When
corn is dearer compared with other articles, the fact
that the laws which govern it, are exactly the same,
is proved by this, that when there is a
sudden demur' for corn or anything else, if it
is more profitable to send woollen, or cot-
ton, or other manufactures in exchange for it,
they will be sent out of the country instead of gold.
Therefore ccin. and bullion are identically the same,
and•there is no reason why coin should be exported in
exchange more than any other article whatever. I have
now stated the great elementary truth which I apply to
the measure. Now, if there are contradictions I want
them to be pointed out by a clear and definite
statement on the other side.--(Hear, hear.)
I do not bewilder you by any measures
of value. I have taken a pound. But I object to the
obligation which Hon. Gentlemen might impose upon
me of readings pamphlet, or perhaps an octavo, stating
'what the definition of a pound is ; the real fact is, that
though these are great truths, yet occasionally there are
small occurrences which appear to be contradictions of
them ; and if
there are small facts and circumstances
adWhich are not easily explained, ingenious writers take
vantage of them, and say " these do not conform to
great principles, and therefore your principles are
not true,"
Why, when Sir Isaac Newton deduced the stuth that the great planetary movements were owing to
11:e great principles of gravitation, there came slight
preem -
ene and disturbances which he could not recon-
in the course of time, subsequent philosophers
detested
his
slight errors, and reconciled all those
Phenomena and disturbances to the original of the
Principle. So that that which at first appeared to be a
contradiction, turned out to be a confirmation of the
truth, and so it will be here too.—(Hear.) Depend upon
it, if you had every cirumstance—everything tending to
some apparent deviation fully explained, you would find
it would not clash with the great truth originally laid
d.own. If these principles are correct, it would be core
Sustent with them to establish some other measure of
value than that which you have taken. You might con-
sistently with those principles, if you were at li-
berty to. decide far a new state of society, adopt
a silver instead of a gold standard; you might, if
You thought it desirable, adopt a new metal ;
You might abolish all metals, and might, as Mr. Ricardo
said, make notes the standard of value, so that a man,
having 501. in notes, might demand bullion or coin from
the Bank, and it would be in conformity with this great
Principle to adopt that. . But, in our present position,
thenothing would be more unwise than a departure from
great principle which regulates the curency of the
kingdom. I believe 'seven-eighths of there ouse concur
with rue on the subject. You may, however, select some
other mode ; but, before you depart from that now
"tablialled, I would entreat you to recollect that the
measure of value you now have, viz. gold, is that
measure of value whieh you have had upwards of a
the years, always excepting cases of bankruptcy.
writers of authority on the subject—Sir W.
dttY, Mr. Locke, Mr. Harris, and Lord Coke—were all
ecidedly in favour of a single standard of value.
Locke was of opinion that silver ought to
ane the metal selected for the standard of value. He
__s,signed reasons which appear to me to be erroneous,
way silver instead of gold should be taken as the stand-
ard of value. But as your transactions have been for
3so long a period of time founded upon a single
13W, and that metal gold, and as you have determined
"that it should perform the functions of the lower order
llroghout at least England arid Wales, I do hope that
tahning
Will induce this House to disturb that monetary
ay.stfisent. That which we have now is in exact conformity
se}" :he Opinions of the ablest writers on the subject, and
o wrote under a different system, and in conformity with
re opinion of the greatest recent authority on the sub-
Jaset relative to coin—l mean the first Earl of Liverpool;
as he, in his letter I. the King, which, I think, contains
el,ln.neh truth and sound sense on the subject as any
e':olication that ever emanated from the press—he
adopt is
argues that the principle which we should
p PPt 3 the principle of our coinage; and the
after
which is now established, Lord Liverpool says,
ri,l,7r full consideration of this extensive, abstruse, and
-eeicult g b•
result en tect, I humbly offer to your IVlajest, as the
that c e' aIY deliberations (he was then writing in 1804),
t'en, tis better that silver should be made merely a re-
co ,sentative coin." (The Right Hon. Gentleman proceeded
f_lTad the opinion of the Earl of Liverpool, which set
Property,
that the coin, which was the principal measure of
Property, and instrument of commerce, should be made
of one
metal ; and, secondly, that for many years past,
,:ltne Practice and opinion of the people, gold was the
'nnepal measure of property and instrument of com-
a, mere e, and that, therefore, gold should be made the
z'todard of value, whereas, silver should be merely
;; re, preeentative metal.) This is exactly the prin-
f,PT Which is in operation at the present time.
.18 the system which still prevails. The humblest
'mnvetaber of society having a 5/. note has the command
gold. In my opinion, by taking this
Nerse, you will provide a greater security for
Wment convertibility than if you merely say, " He
IC° cart Produce 1.001. in gold coin shall be able to take
the Banesf,,,eLloweirculating and there shall be nothing but
throughout the country." Sir,
change • it has been said that by some
crease 8-7.,eu might diminish the chance of panic, and in-
urify Now,_ I very much doubt whether
preventyne interference can have the slightest effect in
golatinni g tarlie. I believe you may adopt certain re-
lieve BW. ich will give much greater security. I be-
whiehn will have a greater security against that upon
Passible is impossible to reason, and for which it is im-
frt thpet° provide, by having a gold circulation through-
legi sla ountry, and by manifesting confidence, than by
NOR, si,ng to provide against the existence of panic.
eterm.lr' I have done with the principles which I think
this "'ine the measure of value, and which I think in
eeee9untry ought to regulate, so far as coin is con-
the"len.d, the medium of exchange. I hope I shall not be
tnyueht to have exceeded the limits which I ought
tar
.observe. I thought that considering how
,a,011°134 these great subjects come under our notice, it
etaten,-e he an advantage to give to my opening
gleap,nts, as far as possible an elementary character.—
nine '':ilear.) Now, Sir, I come to that which is the
I must to subject with which I have to deal. Here, again,
priec',,le allowed to state what appears to me to be the
InelP„'es which should regulate a paper circulation, I
hearslle circulation of promissory notes payable to the
IPeak.„, I speak of those, and of those only, when I
m'tertl .
1!_lone. I mean by money the coin of the
demot mean promissory notes, payable to the bearer
atrouleeztlld in the coin of the realm. Now, I will not
"nod 'myself, and I will not disturb the House, by re-
ties, speculations about a variety of other descrip-
n „°)!. Paper credit. I will say little or nothing
111 th,,-1,,,at great question which was discussed
theft- -uank Committee, as to whether deposits or
the i-rte3tbelloo bankers or bills of exchange. partake of
°Deets th"re of paper currency. I say that in some re-
teocy, "eYmay partake of the nature of paper cur-
b can on that particular point, with which alone
UP% „eel, namely, the effect which paper currency has'
jeect r'tees, the effect which it has upon change, the
t Which it has in distributing the measure of value,
Itte °rpm. issory notes, payable to bearer upon demand,
efeeet different character, and have an entirely different
as coin. Ilthe first place, those bills are used precisely
im•
rsoent They pass from hand to hand. There is no
rneetet guarantee required—there is no new indorse-
foe.... eammeverY transfer, but they are really substitutes
'`-lear and operate upon prices as money does.—
that h;"near.) But it must not be understood
eiNis bull of exchange do not affect the pre-
proven Metals. .They economise the metals, and
cads tt the necessity of so much geld being required in
'he effees,.t would otherwise be wanted. They may have
eh. _ of
Ma is displacing four or five millions of gold,
f gold ,„,n effect hardly perceptible, altering the value
irgeee...:lft,itt. reference to other countries in a very slight
lulls b irLear, hear.) But the promissory notes of the
-es of be
-g Payable on demand are very different from
teirter thelehange. The effect of the issues of the. Bank,
• thine restriction was to raise the value of the guinea
l'ellrneLSilillings• The Bank lent money to the Go-
en de to private individuals and advanced largely
.I"'"'rnedl)°,.sits• But they found that the exchanges were
erDereo'eatlY against this country; and, by the advice
totes 14 well-informed, they limited the number of their
4 ' and the
r 1,4 30 it exchanges were again turned in our favouf.
°Ftheisauwe.aS,in Scotland. In consequence of 'the largenesstt
(,;?Untry. But the
exchanges became very much against that
flue Jout the banks there took the same course that
,sottie, 4,Pr England had taken, and the result was the
'l.lited.'ll,Te, issues were limited, and the exchanges were
reseee:,h se who have paid attention to this subject
l_oese of Goer the very able report presented to the
seelead. e„eortirrions, 1804, on the subjeot of the Bank
cittrit,ilz.,ehree exchanges, as between Ireland and this
at that time very much against Ireland.
!ere- !nue,
,notes Issued by the Bank of Ireland were
epreciae It required about
ti" of the 1181. of Bank
F°tea et 'lank of Ireland to purchase 100/. of Bank
eatly enheirst_ank of England. The guinea, too, was
'lrish
notes anted in value as compared with
• g,„,_ The Committee appeared to consider that
~(h Ireland ought to contract their issues.
atit 0 f Ireland denied that they had over issued.
le Y 114(1 not
ad issued anything, they said, but what was
told the legitimate course of business. The
s4ft.les, unle they diminished
they would never restore the ex-
^fh declined to --eY diminished their issues. They at
e lean,
considers do so. The exchanges never improved.
t‘try the
z7-econid that perhaps it might be as well to
mendations of the Committee. They re-
teneeee(lo,their circulation from 3,000,0001. to 2,400,000/. •
e Irt'shsecluf nee was that the exchanges improved, and
Bank note regained its relative value to the
441,4e.sevy
naonteksnote. Noiv are not these
proofs that pro-
4, ieh bill_
o_e exercise an influence over exchanges,
tiet ? It ri_xchange, deposits, and cheques of bankers
it
Otis_q exchans__ll,selss, then, to tell us that there are
the $
Erianiees„ P 7 W the amount of 300,000,000 L, and that
"L they were all presented at the same time
444 that the Bank could not pay, and that it