The Sun.
London, England, 1826-02-14 00:00:00

HOUSE OF COMMO'SS.

The SPEAXMt took the Chair at the usual hour. The
Gallery was agairffilled, chiefly with citizens, to hear the con•
tinued debate on the Country Hankers' small notes proposition
Air. TIERNZY, from the Tax Office, brought up a Rettrin
of the Assessed Taxes—Read and laid on the table.

'A new 11s)aza, whole name we did was swan
,in.

PRIVATE BII.LS.
Several Private Bills, principally relating to floads,'llaiL
ways, Canals, dce. were brought up and read fur the first and
second time.

Mr. Sergeant Ores Low gave notice of his intention to -bring
op a Bill t.) amend the Usury. Laws.
CORN LA %I'S.
Mr. BlllCH.presented 14 petition from the Manufacturers tef
Nottingham, praying for a revision attic Corn Laws. He said
that he bad lately visited that place, and that he there saw very
skilful mechanics, who could earn formerly sufficient wages to
keep themselves and families with comfort, but were now re-
duced to the necessity to eafft one shilling a day, by mending
the roads. They all ascribed this to 'the partial alterations of
the Corn Laws. He knew there were many Hon. Gentlemen
present, who said that they did not wish the Corn Laws to he
amended, but he would only direct their attention to the dare-
rent petitions that weredelly presented in that House. These
petitions stated the misery and distress of thousands, kept up
by the existing Qorn Laws; and if they did not alter their opi.
mons, after reading those petitions, he should blush for them.
Let them look at what occurred in 131t1, under the laws, and
he felt assured, that a speedy good harvest was the only thing
that could SAVO the country from a repetition /if what happened
in that year. He would not say any mere On the subject, be.
cause he knew there was an Hon. Gentleman then in the Muse
who would do the subject more justice than he could. The pc-
titioners,Pe said, also complained of the great weight of taxes
they were oppressed with ; and he (%Ir. Birch) hoped that the
House would do something to alleviate the suferinrs of so many
Individnals.—Ordered to be printed.
Mr. DENMAN presented a petition from tilt Frame-Work
Knitters of the town and vicinity of Alansfield, praying that the
Corn Laws might be repealed.—Read, and laid on the table.
The Hon. MEMBER, also presented a similar one from the
town of linalcsworth.

Mr. WII poi ORE presented a petition from the merchants,
manufacturers, etc. of the town of Cholford, praying an amend.
meet of the Corn Laws.—,Ordered to lie printed.
SILK TRADE.
Mr. LYGON presented a petition from the Silk Throwsters
of Worcester, against the importation of Foreign S4.—Laid
on the table.

Mr. P. MOORE presented - a petition from the Ribbon
Trade of Coventry agajmt the importation of Foreign Silk.—
Head and laid on the talle.—The Hon. Member inveighed
strongly against the importation of Foreign Silk, the more
especially, AS the workmen were at this moment in a state of
great distress, which ,would be increased by allowing the im-
portation of silk.

A BOLITION OF "
Sir C. COK ERMA, presented S petrtioa VURNom 110r6ttA of
Eveaham against the abolition of slavery.,-Read and laid on
tho table.

Mr. SI. KES presented a petition from the Inhabitants of
Cottingham praying for the Abolition of Slavery.—Read and
laid on the table.

Alr. LANS& Y Kettented a petition from the' Kirk Sosion of
the Parish of Dundee against Slavery.—lteutl and laid on the
table.

IEIF:NETT presented one from the Inhabitants of Melka
sham, praying the Abolition of Slavery, and an equalization of
the Duties between the East and West India Seger.
Similar petitions from different Towns wen presented and
laid on the table.

iISCELLANEOUS.
Mr. WILSON presented it petition from the Merchants add
Manufneturers of the Port of London, praying for a further
Reduction of the .Duty on Tobacco, &c.--Read and laid on
the table.

Mr. HUM E moved, that the Account of the Number of
Pounds of Tobacco, imported into this Country since the year
17119. up to the present year, should be brought before the
House.
Also the Account of the Number of Pounds of Tobacco or
Soya seized by the Excise or Customs, where, 'and when seized
during the same period.
Also the Quantity of Malt ebarged with the Excise Duty,
since 11301.

Alio ihe Quantity a Geneva under the same duty, during
the some period.
With tho Number of Gallons of tipirlt distilled from Sugar
or otherituaterial, in Ireland and Scotland, since btli JanuarVt.
Itll9, to 6th January, 1828, not entered on the Parliamtmary
Imetords. '

Thehon. MElstaEn also moved that there should he laid be.;
fore the. House a List of the Number of Nominees admitted
undcrihe 48th Act of Gee. ILL, with their Nantes, Agc,, iLI it
ransferted, its valueprinonmmon;toSl
whether tu'lle or female, the AITIOUIIt of Stock- received ; ~lso
the Arnotint of Stock ;
aarndds :11::
Number of Deaths of the staid Nominees,' up 4)1826. we un.
derstood the lion. Member to say that the
°discharge of the National Debt was vi .Ty slow, and he hoped
that upon these various accounts being laid before the House,
it would devise some plan of relieving the nation from such a
debt. He was quite satisfied that the system up which itiv
House wit!' then acting, would not reduce the National Debt
ono pots d.
COMMISSION OF 497,
Upon the niotioa of Mr. lint ail T, the Report of tht, Com.
Mission 41'1797, relative to Cash Payments, was outccett to he
reprinted.. . .

t. *verettiry PEEL poetponol to L.
the T2ki it
his- Tnotiotaor lej4vLeiittollbStion'it irini"
m a
Hill to tegul.;te ti e
inTajineniug uf,juri„. whirli was fixed for ta-morrow.
CO3IIIIITTLE OF b'LIPPLI`,
Mr. HEltßlEsineught up thec puti-of the Committee of
StIPPIY• On the question,..thet the Itesolutions of the t..:01/1•
tnittee be agreed to,
- My.'AIABERLgY zoo, not with the intention -of opposing

31r. 3IAI3ERIJEY said he was anxioun to introduce a dis
cession as to the expediency of issuing Eitliequer Bilis, and
as to their amount; he also wished to see the connexion he.
tween the Bank of England and -the country distinct's' traced,
as well as their operations relative to the Funded and Un-
funded 'Debt. He gave this notieo,in order that the Chancel-
lor of the Exchequer: might he pripared next Wednesday to
name a day for the discussion. In bus own opinion, the second
Committee of %us. and cleans would afford a favourable
°cession for the purpose, '
. .WAYS AND .AIEANS.

The CHANCELLOR of the EXCHEQUF.It gave notice,
that on Wednesday next he would move that the Howie resulre
hits a Committee of Ways and Means.
ADJOURNED DEBATE ON THE BANIt AND
_ CURRENCY ACTS.
The V if NCVLLOR of the EXCHEQUER moved the
Order of Elie Day for a Committees:A.llw whole Muse etc. the
Bank Chatter and Promissory: Nett! Acts.
Sit J. WROTTESLEY opposed the motion. lie depre-
cated the proposed measures, and called upon all who had
heard the }tight Hon. Gentleman, and who ageeed with him
in thinking the views it-contained erroneous, and the retnediei
it suggested not likely to mitigate, but rather to aggravate, the
evils, to unite' with 'him in. a determined resistance to their
further progregs. He must beg the indulgence of the Iloese
whilst he detailed the grounds on which hie, opposition was
founded, and he was confident that upon this occasion that
indulgence would he extended to him. He claimed that de-
gree of indulgence which the Hodse eyes always ready to bestow
upon those who undertook to advocate the interests of large
classes of men, upon those especially who undertook the de-
fence of what was more valuable than any other interest, the
character of such classes for honour and integrity. For it
couta not be ttenied that the character of the Country Bankers
was deeply implicated in the charges brought against them. It
was, he thought, a question on tibial very different
opinions might be entertained whethet it was wise and
prudent conduct on the part of Administration to bring
the subject of the existing distresses specifically and
formally before the House. This was not likely to
any good effect, and might encrease, and he believed.
bad iu fact 'encreased the evil. Ministers would say, no doubt,
that the state of affair] wes such that others would have forced
it upon the attention of Parhament, if they hail abStained froni
doing so. But he was of opinion that they would have done
Wisely if they had merely adverted to it collaterally, to state
that it was best to leave thinge to.themeelvee, expressing their
confidence that the energy .and spirit of the, country would be
sufficient to bring every thing round. If they had clone this,
he believed that the distress would more speedily here passed
away. Any notice of the subject by unofficiel persons would
have been comparatively of no consequence. 'The mischief of
encreased agitation and alarm which the country was pow suf.
fering, were to be imputed entirely to the conduct of Ministers,
!'he Hon. Geneleinan here commented with greet severity
upon the letter of the First Lord of the Treasury and the
Chancellor of the Exchequer to the Bank-Directors. Ile corn-
complained of the general and sweeping accusation it conveyed
against Country Bankers, of having. aided and abetted the rash
ereculatiens into which the whole kingdom had rushed.
1 rem this unjnercharge he would vindicite then), There was
no Class'of men who took more pains to prevent improvident
speculations. It was their plain interest, and they considered it
their first duty, to make totery passible inquiry as to the con-
duct of their customers and the manner in which they carried
on their. Affairs. If they discovered that any man was entering,
upon wild speculations, they admonished and recalled him to
the path of regular and legitimate trade t or if he were too
obstinate to he recalled, they, from that time, withheld what.
aver assistance and accommodation he might have been in the
habit of receiving. The accusation lie would condemn as most
cruel, partial, and unitise. The 11. abd 21. notes {slued by
Country Bankers foraooth to be charged as the causes of the
specultetions, when it wits well known that the first appearance
of those mad speculations was at Manchester anti Liverpool,and
their second at the Stock Exchange in London ; two parts of'
the country.- and the only
.two parts where no such thing as a
one or two pound note wax to be seen. It would have been a
great deal more correct if Government bad taken the blame upon
itself. At the period of the 'South Sea scheme, a most whole-
some Act of Parliament had been passed to prevent the recur-
rence of similar bubble,. The virtue of this Act had been
ogrneaatnlyaicmtiponairebdrohagowhetvearKbayina,dt ecsiai jotn)inotfStoc
kd
Company, rite
proprietors of sense t team mills. The qpestion had last year
been again mooted in the Court of Chenelfry, when the opinion
of Lord Eldon aid not appear to coineide'with that pronounced
by Lord .Ellenborough. The law was brought into a state
of great uncertainty by times conflicting opinions. Was
it not teen the duty of Alinisters' to get a declaratory act passed,
when the wildest and most absurd schemes were daily brought
under the notice of the Howie ? So far from doing this, they
did just enough to prevent any body else from doing, it. The
Attorney-General brought in a Bill which was suffered to ley
neglected upon the table during the whole Session, Was he
not then justified in the assertion that Government had been
'more to. blame than the Country Bankers ? The next subject
upon which he would touch was that of the flank Charter, and
here again was an illustratiOn (4.114 opinion that the Country
Bankers were ill-used. 'Upon what security does the Bank of
Eeglend hold its charter?—Upon the faith of 'Parliament.
Upon what does the right of th; Country Bankers to issue one
and two ponnii notes depend ? Upon the faith of Parliament.
What gives the Bank a right to hold its charter till 1833 ? The
faith of Parliament. What has guaranteed to Country
Bankers the privilege of issuing these small notes till 1833 ?
The faith of Parliament, Why should the faith of Parliament
be broken in one case more than another? You get them
into the Keret* and then all of a sudden you compel them to
draw in their notes. The three years' notice is merely
nominal. 11' this measure takes effect, they feel that they
must as speedily as possible .draw in the whole of this part
of their issues. He • supposed it would be contended that
their privilege had been abused by the excessive issues; but
he would ask, had the Bank of England never fallen into
excess ? Who was it that reduced the value of the Bank
note so low that a guinea became worth twenty-seven shil-
lings ? Could that conduct of the Bank have been consider-
ed as e forfeiture of their charter ? The fact of' the country
circulation having doubled between the years 11122 and 1823 is
fact easily to be explained. Commodities had doubled in
..price. The bills of exchange which the Bankers had to dis-
count for their customers were consequently of a double amount.
The amount of notes in circulation would be feund to have coin-
cided accurately with the rise in prices. In 182 corn anti
ca!tle were twice as high as in 1822. In the latter quarter of
Iti23, when the pressure in the money market was indicated by
a Pali in Exchequer Bills, the amount of cool bank notes
wasdiminietted.- The distress of the poor, pro' eced by the
failure of ('gantry Brinks' was a circumstance which none but
time lowest of mankind coultl disregard,
but it intuit be rem'.
!coed, that no poor man need keep a bank note in his posses-
fur twenty-four hours. If he wished to save money, and
hail Leto save, there were Savings Banks in every part of the
country which would protect him airainst every Clanger. For
theprotection of the poor every thing ought to be done ; hut
or
ni
act !ming eo the wholecarelessness
cen country, YL17,1;1 cwerenellolin:wv"i
hl:l:l:::;:tnetnatl.6..
t:a:nhseacbciushtricrhLei
he
coexisted. of one and- two pound notes, and great difficulty
would be .experiencedwifultdhenyot
et
tetnitece(l,lltitlduboet
say that the country
etssinees to the same deemed it impossible
carried ore. Whatever he their atuountean equal amount Must
be rendered useless—which is now employed to set our menu..
factures in motimm, it was distended that the establiebment of
Joint litock Batmite would put .banking upon a better tooting.
lie did not believe ri .wotd- of ite Perhaps in leinceehire, and
in Yorkshire; yint nuty nave ,treat Banks establiehed--you may
have great. /tanking Vempenies formed, but he did not believe
that they would geneeally be estehlished in the other manu-
facturing dietricte, say they. . could pot levee chatters, for the
Batik of &viand very wisely, tea he thought, objected to climire
It re.being granted tiny of clients estahliehtneets... The Code.
.hinetien et: derv, forty, ot fifty adventurers indeed, in. a Joiet
Stock limitik, tens not en improbable event ; how fin tine met
aggravate the evil it wits easy to foresee!. The Provineitil Banka
hied been the Means of stimulating the itultottry of the country ;
they formed and estaioi. hell-thent!,,elNTS PTPOSCIV ,2110,11.111.311-
tions where they-were rtiOac.teettired. With regard to the allee
eiion to the present chiteacter of country, bankers, contained ice i

_______esseateessiesesaessea
the letter of .'Ministers, he would not condescend to reply td
it. The highest testimony to their character was to be Multi
ip the prompt, unsolicited,. and general declare ions of coon-
. dence tied esteem made in favour of so many of them in 'Lei
towns and neighbourhooda where they were eettiblistied. lie
would again, in conclusion, call upon those titan. Gentlemen
for their assietance, who thought as he did, that the' propiseed
measure could do nothing but aggravate every existing ;as
larnity. He would call upon them to unite with him in oppo-
SitiOft to measures, the prejudicial effeceof which Upon public
credit became more and. more manifest every twerity-fourhottrt.
If things were left alone; be believed they would het/rove ;but
if these MAASUte3 were persisted iteshe was confident that alartaf
and einbarrassnient would daily increase
Mr. Alderman THOMPSON took similar views of the
subject. ft was With regret he felt compelled to dissent open
this &elision from Ministere, with whose principles of emus
mercial policy he generally agreed. Neither was it upon
the ,principle of these measures that he disiented froin
then', his objecticine applied ouly to the moment of
their introduction. He thought the ewe of the pre-
sent distress was a combination of great speculatioas acs4
exceesive !sines, reciprocally stimulating and promoting elicit
other. In the yeere 1823, 24, and 2fi, is progressive incteaseof
the currency tbok place, and the menufecturers were getting
high prices ; but *lien the check took place, the citosequendea
were dreadful. The failure of one or two Banks produced age
renal run upon ail, shod rtroduciet the to hire of 70. He would
attempt an estimate of the degree hi which the circulation of the
country tied been diminished by these circumetances. Suppos-
ing the 70 Banks which bad failed to have beefed 10,000/. each
titian the average, and this hethoUght a very moderate estimates
here would be a iliminution to the extent of three Millions and
A half. If the whole provintial circulation had been 20 mii -
Lone, this_ would reduce it to siiteen and a half. From this
amount he *mild deduct fifteen pet cent. on account of the di-
minished issues of all the houses which had stood, but all of
which had, aCit measure of necessary precaution, withdrawn a
portion of their paper from cireulation. This would give tot
millions and a half ITIOte, altogether a reduction of the
provincial circulation to the amount of six millions. Wltist
serious effects then might be expected to flow from
further reduction of four millions which would be produced by
calling in the one and two-pound notes. It was said their
place would be supplied by &W. Itut how hi the gold to
come? We cannot get it, eXcept in return fur our eits
ports. We are not exporting however. There is a general
nuignation. Although commodities generally' have fallen
twenty per Cent., the Foreign demand, neither for Manu--
fectures, nor for Colonial Produce, appears to be stimulated.
--Such iv the general distrust, that no merchant can get disc
count for a bill. The importance of that portion of the cur-
rency which it was proposed to annihilate, was not duly tip-
predated. He was connected with a manufacturing district,
in which the amount paid monthly for wage; alone, and
paid in thii description of currency Was not less than 200,0001. s
and to the honour of the Bankers of that district, he would say,
that during the late, panic not
,one of them had failed. 'Die
Manufacturer obtained inlyayment fur his goods the acceptance
of a tnerchant probably of London, or Liverpool, or Glasgow.
By the accommodation of the Banker in his neighbourhood he
could get this bill converted into currency, but if the tearer's),
was to be gold this could no longer be done. As to the idea us
Seim mock- batiks he viewed it as a fallacy and a delusion. The
nacre number ofliartners in a Bank will not inspire confidence.
—The prudence of a Banking. Company, and its (thinner of
conducting business, is more considered than the may,nitude
capital embarked. Branch bank* from Bank of England; if
it could be induced to establish them,twould, he believed, be
productive of great good. He would conclude by expressinv
his opinion, that in the present situation of the country it would
be an act of madness to proscribe: the small note circulation.—.
Ile had felt.it his duty to say. thus 'Much, and he hoped the
House" would well weigh the consequences be(ore, it adopted
the proposed measure, bearing in mind 'how much more difficult
it was.to build up than to destroy.
LEYCESTPR commenced by inveighing against the
mischievous prettgistive of century bankers. That prerogative
it was-which had produced the tedundancy of currency, the
great root of all the existing evils ; that prerogative it was
which had forced Consols tip to ninety-five, mid set all the
world running mad with speculations ; that prerogative it was ,
whlcherennbined with convertibility, had finally produced tha
creah of bankruptcy which yet sounded in our ears. That
prerogative was not only mischievoUs in effect; it wan errones
owl in'theory. ,It was destructive to the unity of power tree
isate, which was necessary to any accurate knowledge of the
amount actually ire circulation, and to any adequate observa-
tion of the symptoms indicative of excess. If the powtr war
multiplied so as to be placers in the hands of every Country
Banker all was abroad and afloat ; na knowledge of amount
no vigilance as to the state of the 044.hatiges ; no regard
how the exchanges operated uptiti the ctitieneye or the cur-
, rent'y'epon the exchanges; one object.only was kept in view,
to issue as much as possible, and the natural consequences
follow, first depreciation, and then bankruptcy. Such were the.
consequences of departure froM the principle' of unity of
' power, andkeaving the power to issue in the hands of a mob of
countrybankers. A mob in the Mint was as bad as a mob at
the helm, and the monarchial principle was no where more se
N .;
ulty than in the realm of paper currency. He gave Minis-
ters the greatest credit for the me insure, and regretted only that
it was not more extensive. Why nor eholieli the five potted
mites also ? The time would coins, when they would tic found
productive of similar calamities, and then We should hare Minis
stem comingsdown with another confeesion tenentence. Ile
approved of branches of the Bank of England being established
throughocit the country. That establishment might know what
it was about, and by watching the citetango', might regulate
its issues. Ile considered that Joint Stock lintika would be mere
bubbles; limit the responsibility and the discretion would bp
limited, and when bankruptcy came, as it would come, it would
be so much the worse for the creditors;• who would probably be
cut off with a shilling. The intended enlargement or' Sankt
would not take place : subatantiel flanks would not telmit new
partners, because they would not part with a gootrthing; 404
substantial Banks would not seek neveyertners, because the,y
would not ptnclaina their present insufficiency, and hoist, as it
were, the flag of distress. A larger number of partners did not
imply a larger capital. The new Comp:inks would be
fluenced by the genie, avidity to secure large profiti, as had
Actuated the old ones. The same excess °Hennes, the same dee
precietion, the same benkruptcies would follow. The exam-
ple ef'Seotland was not conclusive with respect tea this country.basal influences, national character, mighf so triter in be MO'
parts of the Empire, as to prevent thorn front boihg safe model*
for each ether.
. Mie T.' WI LSO IC could not anticipate the ' least ticivantage
from the measure ; it had produced, Wag produsing, and would
produce' the greatest evil. Ile would not 'meek as the tepee:
sentative of any particular class—he spoke atsthe repreeentae
the of the city of London. '4l hlit. had been the situation of
the city of London ? At the Motnent when banks were failing
every day, the alarm and panic had not been easily arreeted.—
Here the Hon. Member adverted to the meeting at the Mart.
sion House, and warmly eulogised the conduct of the Ilon.
Member for Taunton. What was the cause of the lament-
able condition of the-country ? Is it War, famine or pestils
clue ? Bait n war broke out suddenly, and have our niers.
chants last two or three millions of foreign debt? Is it
that leo have had 'a bad harvest, and that a million of
Money is going Abroad to pay for corn ? None of 'thole
things. The simple fact is, that we have over-traded. But it is
not the first time we have done 30, toad we should now ice
we hove formerly dopes 'get out of our difficultits if eosins
dence could be restored- lint confidence was a delkete thing.
Violent measures could not restore it, men could not be tire:
gooned into. confidence. Hit had beers happy to are that the
suggestion of his Hon. Friend the Member for Taunton hail
been thought worthy of' the attention of the President of the
Board of Trade. Her alluded to the proposal fit a miss cur.
rertey. We rece:veil a great quantity of silver from South
A Merice and other pieces. What could. we now do with it a--
Buy sovereigns at a loss crone end a half per cent. The Hon.
,Uentlernan then proceeded to explein at some length the ad-
N,aht•agcs which he thought would arise from a remedy of a
Wrist t besia, It find, been urged that if the spasm of small
nuts circelation wait rout new got, rid of, thsre haltilts i rs littrq-
or hie deep -re commendiese attention whist prosperity had ?c,..
turnta. Ile roL,N not act the' force sit this Ittrum", 1i
Illiiiistent Vete in devour of its abolition, trans I"' 9rlbers
v 4711):
? aitiat e,,,,,seeLesead 1:4,!01 expmseti for OW Stifferingt,
of the poor. /bat tho prOpot,ed mertsn omit
ifiict additi,,,o NIT" ion that: portion or att., community.
Ile rectimitietilA die)! 40 cif l'iqu'ri4ig 8"-mitY for snltill.Ootes,
in. VieferenCe-Ao.llllitht prohibiting thrillattegeow. lie
eon.
cluUtid by AfiplOgiZing rut th very wriperfeet manner insihileh hi

1144 explained his sentiments; the measure, he apprehended,
would be at the best 'nugatory, or, if it produced any effect It
would be mischievous.
Mr. J. SMITH had felt the greatest difficulty in coming
to any decision upon the question now before the House,
but from the speeches he had...heard, lee had now arrived
at the conscientious conclusion that he ought to vote ire
support of the measure. The mischiefs produced by the present
system were so enormous and intolerable, that however unfa-
vourable to the introduction of a beiter system he might think
the presentmoment, and he thought it very unfavourable he could
noise liettgehint pninc ue ecocounteteriteetanger of postponement.
Harenalti-not however concur with an Honourable Friend of
his who bad condemned the paper circulation en moue. Ile
timougbte on the contrary, that it had been a great cause of
prosperity, and had vivified and nonrished .industry anti enter-
Another I.lonourable' Member had inehtuel that the
one and two pound note circulation had been productive of no
leudellip to the poor, breatime it shell been optional whether
they would or would not take those notes. Thet wan a most in-
errect view dale Subject. The Country Banker was often the
magistrate and the prinelpal manufacturer of his dieteict. IVhat
poorman would dare to refitse his note, who would ventatie to
exhibit any distrust, except at a moment of panic when every
otdinnty consideration was borne down. In many instances lie
believed Banking Licenses had been taken out for the sole put.-
eiese of issning notes: in the payment of wages. In such cases
the perkier' iestunge the notes was hardly to be• called a banker—
he was in fact a manufacturer, taking credit upon his payer fat,
.4site value of ls
hour performed , in ble manufactory. lie did
'riot ilotibt, if inquiry meld be made, twat ,it would be found
that many of the imitanees of failure would fall under this de.
•scriptinn. The
.present tteason of alarm was certainly unfavour-
' able to the measure, for it was undeniable thas alarm did exist.
It war. no argument that alarm Mil not 'exist, because ft ought
.'not to exist. Government, he hoped, would remember the
gra VU 'and theadful responsibility of their situation. If any
means could tie devised to mitigate the pressure of existing
calteulty, it was their -duty to adopt them. He was nitwit-
'beg to enter upon another part of the subject, to which much
• allusion had been made ; he meant the letter to the Directors of
the 'lank. To use ft, familiar exprestlion, lie would venture to
lay a watzer,lliat the Right lion. Gentleman,. the President of
the Board of Trade, had net seen that letter ile knew that
Right Hon. Gentleman to possess such a perfect knowledge of
deeeils and usages of commerce in all its various deput-
e:eels, that he never would have consented to a censure so ut-
tt gronrellees as that conveyed against Country Bankers ge-
nerally by that letter. The Hon. Gent. combined ; he knew
that the honourable and opulent banks of the cotintry, such as
those of Liverpool and Manchester had never lent themselves to
xiipport,,foette, or encourage the wild speculations in which the
.country had so madly embarked; they had assisted the
lexiti-
mate commerce of the Country, the dealings for instance in cut-
„ten and iron goods—perhaps even to some degree of excess—
..lent the imputation of having ie any way encouraged the rash,
wild, and foolish' projects of the da.y,an imputation plainly con.
veycd iu the letter, wax equally' extravagant and unjust. He
• 'thought mime benefit might result perhaps from postponing fur.
• then proceedings in the measure for a short time, say a month,
in order that the irritation of the public mind might subside.
He was however so convinced of' the excellent principle of the
7 merieure, that he could nut run the risk of losing it-by any long
postponement, whatever temporary inconveniences might be
produced by R. In allusion to the question of' a mixed cur-
• rency,he,could 'riot understand why we were to persist in having
gold for the exclusive beets of our Currency. when all the rest of
Europe were satisfied with a combined basis of gold and silver.
Country Bankers bad not been fond of silver on account of the
number of counterfeits. The law for passing counterfeit coin
was not, he thought, sufficiently severe. Ile knew an instance,
where a party went about to markets and fairs with a false
bottom to their cart, containing eeunterfelt half-crowns. After
a time they were detected, end 2doo bad half.ciowns found at
the bottom of the cart. They were prosecuted and convicted ;
but the punishment awarded them was exceedingly slight, and
• not ell commensurate 'to the Offence. He could inform the
Right Honourable Gentleman of a curious fact: 'there was a
tleutif4 coin, a crown' piece, which had never been counter.
• felted ; Its etiCatielkel been preduced by the difficulty of imi-
tating an inscription placed :trowl the run. A coinage of this
description, together with an. Act making silver Riegel tender
to the amoant of 61.„ would b' productive of advantage. He
happened to know a considerable numufactory, . the proprietor
• of which; for want of silver, had been in the habit of paying
hie work Men by Orders lip; a publican, the effect of this could
be no other than that of demoralizing the people. The lion.
Gentleman concluded by repeating his determination to vote in
favour of the measure.
" Mr. el/ARLES ORA NT commented on the inconsistency '
of his lion, friend, who described so much irritation as having;
leuto pi-educed by this discuasion, and nevertheless would keep
the subject suspended for a month: if it was thus productive
•of alarm aim coneternetioe, surely the sooner it.was dispersed
of the better. . Ife would tuck of those Honourable Gentlemen
who had censured %Misters for bringing this subject forward,
hew much more severely, ire well as more' justly, would they
have been censuted, if they had attempted to shrink or defer
the discussion of a subject, on which the whole kingdom was in-
tent. • I r tbe subject, indeed, could have been suppressed, if
they ceielti have commanded a dead and complete silence, then it
o'inhe have been ativierible to wait for a moment of greater
eelinnele before they introduced the measure, but the country
was Si) much alive to the subject that this course wits ob.
viouely impracticable. The subject was "arced upon them,
and. if they had waited till no panic or distress remained, it
migl;the doubted whether as much disposition to consider the
eub;ect might be found as existed at present, or whether rather
time apprehension of renewing the expiring alarm might not
then render Members etenerally more averse to entertain the
sule;ect. In the alternations of prosperity and depression to
which the (=mime of the country wan subject, it had gene-
rally cesa found that the more extreme the pressure, and the
;I :epee the gloom, our reeivery. hid been the more rapid and
instantaneous. The revulsion m the present case might pro.
batty be of this sudden and rapid character, and if so it
might reasonably he apprehended that the reaction of prosperity
would again lead to excessive speculations. Now it was with a
view tq guard against this evil, that time present measure was
proposed, It would operate to produce moderation in our
rise to prosperity, and if we were destined again to descend it
would break tit° violence of our fall. An Hon. Member heti
complained that the proposed measure was no remedy to the
distress, It was in truth not devised for that purpose. It wire
unfair to judge of it with reference to an object which it never
had in view. It did not profess to deal with the immediaie exi-
gency. It ought therefore to be estimated with reference to
what it did gin at, and not in referenceeto whet it did not.
Neither did it worm to embrace every possible improvement
of the present system. Here the Riglit Honourable Gentle-
man alluded to the proposal of die Honourable Member for
Taunton, respecting a mixed currency. Without entering
deeply into the discussion of that subject at proemi he might
be pet mitred to say, that it did seem rather a' circuitous mode
of, obtaining a currency to get giver first, in order to obtain
gold. The subject was one of great impOrtance, and his Right
Honourable Friend had admitted the observation of the on.
MeMber for Taunton to be entitled to great weight. Far him-
self, he could not but say that the present system did, at first
yiew, appear to impose a gratuitous trouble. The Right
lion. Geotleman proceeded to say that he did not calculate
upon die measure as $ complete preventive to the recurrence of
similar disasters in future.' These calamities are the specific
evil incident to every gate of mixed currency. The tendency
. of everylesper. currency was to excess. The object in view was
to obtain some degree of protection from this danger. To die.
place all metallic currency teas the point to which paper con-
stantly tended To check this tendency—to place a limit to
its operaden, was the object of the present measure, and
one which it could not fail to attain. Convertibility had
been deemed a sufficient check to over ileum]. This theory,
which was dint of the Bullion Committee, experience seemed
completely to have overturned ; the science of the Cur-
rency continually, like all other sciences, acquiring improve-
ment from freak Cute and fresh principles. The check of con-
vertibility is one which operates, not by physical necessity, but
by moral force ; it may, therefore, be resisted and disobeyed.—
The Honourable Alderman ascribed the distress to over trailing
and over issues. The Honourable Gentleman on the other side
ascribed it wholly to over trading. He believed it to
be the simultaneous effect of both causes. The check of
convertibility had been found so tardy in its operation, that it
• had become necessary to discover some check more prompt
and efficacious. The proposed measure would prevent the
stock of gold in the country from being at any time re-
duced to low as it might eagle+ be under the present system.
If this measure wre resorted to, they would be placing in the
..currency a renolatiog principle, a foundation upon which a
sounder system might hereafter Le raised, and taking away
a caused dreadful distress and ruin to a class which had pecu-
. liar claims on their protection. He had heard it said the other
night that this would he an arbitrary interference of the Legi.
alatute,and that every body ought to be left at liberty in their
own atfblrl. Now it' this question were to be decided by autho.
rides, he Could refer to a late eminent person who possessed the
. respect and confidence Of the house—he meant the Hon. Mem.
bey forty Portarlington —whose opinion was opposed to such a doe.
• trine. Besides this, lie had the authority of Adam Smith, who
• laid down that the currency between dealer and consumer ought
tete be gold ; but that between dealer and dealer it might be paper.
'The same Opinions were also supported by Mr. HOMER and the
Bullion committee, and since that period by other eminent omen
still living, amongst whom was his Right Hon. Friend (Mr.
Iluskieson), of die value of whose opinion heshould ssy more
'mere he not present. If there was to be no restriction is such
matte's where were they to stop ? When the issue of five and
10 shintliti lime War disomtinued in Scotland, and the sixpenny
Awed!)s oritshire, did say one say them abould be no nitric.

tion in that case ? Yet there. the principle was the same, and
equally opposed to the freedom of commercial intercourse be.
tween man and man. The United States of America, after
some experience in the use of a paper circulation, had found it
good to resort to restriction. lie therefore agreed with Adam
&filth that it this was a restriction upon natural liberty, it was
one those cases where a portion of natural liberty mast
be surrendered for the public good. For these reasons he
should give his cordial support. to the measure, and not be
satisfied at any delay. Ile was . not to be shaken by the vi-
sionary dangers which had -been held up as the certain con-
sequence of the course reconunended by his Eight Honour-
able Friend ; and he thought the only way to meet any dan-
ger which really existed was to resort to a Sound currency,
and sound principles. While they left it in a state by which
the country was exposed to these -fluctuations and panics, so
long would their best-sources of its wedth he shackled and
uncertain, and every new occasion of their occurrence, would
he a fresh shock to public confidence and public order. Fur
such an evil, then, he held it to be the imperious duty of
Parliament to provide a remedy.
Sir J. NEW PORT said, that with reference to Ireland he
spoke knowingly when he said that the prevent system had been
equally injurious to the persons who held the notes ne to the
persons who issued them. It necessarily led to that over issue
of currency which produced disastrous effects to the whole
State, and pressed with calamitous hardship upon the poorer
classes.—(Hear I)—He would say that if any inconsiderable
brietch of commerce could not be carried on (he did not admit
that such was the case) without the continuance of such a Nye.
tern—he would say the evil was so great, that commerce should,
suffer the difficulty. But he would contend that all the come ,
merce of the country could be equally well carried on, with-
out resorting to these unworthy and artificial means.—(llear !)
He was sorry to differ, almost for the first time, front his
Honourable Friend behind hint, but he thought nothing could
be mote injurious to the country, than to suspend a measure'
like this, and thereby keep up the panic which already existed
—(llear, hear !)—With respect to the Bank of Ireland, he
was perfectly convinced of its solvency; but the calamities
which fell upon that country some years ago might again occur,
it' the law did not prevent the circulation Of' small notes by
Country flanks, which might again rise up, For carrying
such a measure into effect in this country, no time could be
so tit as the present, when the circulation had been so much
lessened by recent events. If they waited for a return of con.
fideuce and prosperity, the issues of the Banks would be as
great as ever, and the difficulty of' effecting their object would
be greatly increased. Ile begged pardon ti►r trespassing on
the House, but he had felt anxious to state these opinions.—
(Hear, hear!)
Mr. Alderman lIEYGATE said, that if he thought the Mi-
nisters possessed any information as to the real butte of the
country, he should not trouble the House. But it had been
stated in a document of no small' authority, he meant the
communication of the First Lord of the Treasury and the Bight
Honourable the Chancellor of the Exchequer to the Bank, that
the pecuniary transactions of this country had reverted to their
Italia] state. Now he would ask if any man would get up and
say whether that statement was true or not at the time, which
he denied ?—would any nian say that it was now true, when
the Government piper had been that day at twelve shillings
dlA-
count P A great panic still existed, because: men practically
informed of the state of the country were alarmed at the preci-
pitancy with which the Government seemed disposed to na—
no thought the whole system of the currency had been in the
worst possible state for the 1 ust 50 years. But it was
useless to talk of applying fine general principles)
precipitately without being able to fetal the people,
who would be ruined and reduced to starvation by
the change. He thought the I/. notes the worst possible cur-
rency that could be used, and that the precious metals were
the best, it' they could be substituted. However the I-louse
had encouraged Country bankers when they wanted them,
they might now destroy them if they pleased ; but let them
take care how they did that unless they were certain of
being able to substitute eight or ten millions of gold in the
place of their notes. It' he understood the Bullion Ques-
tion, and he thought he ought, for he had paid much at.
tendon to it.—(A laugh.)--[home Member said, " That may
not follow.") He knew that it did not necessarily follow,
since the political economists differed not only among each
other, but from themselves.—(A laugh.)--But he understood
that if a sovereign were brought into and kept in this cow.
try a certain price must be paid for . The measures of Mi-
nisters created an alarm in the country, when it was under.
stood that they thought the present system dangerous. Ile
read an extract of a letter from loincashiree in which- it was said
that that part of the country was in a deplorable condition.
The lion. Gentleman made ninny observations on Mr. retire
Bill, passed in 11119, when it was said that its principle would,
bring back the country to its state in time days of Queen
Elizabeth. lie expressed Ids reprehension of the measures
since pursued In very impressive terms. The selling of the
Dead Weight was itself productive of over issues. Alinistere
saw that the Reople would no longer be content to endure the
load of taxatioh Wider which they 'laboured, and they bad no
other mode of shifting the burthen than by introducing the
Long Annuities. The consequence of an inundation of paper
was an immediate rise in the pikes of commodities, and this'
enabled Government to reduce the rate of interest on public
securities from 5 to 4 per cent. They were not-so foolish as to
object, before that reduction took place, to the circulation of
small notes from the year 1022 to the year NM during which
interval over-issues must necessarily have fun play. Was
it then dealing fairly with those Funtlltoldiers who had con= '
tented to the reduction, to repeal that Act on the amt.- I
ante of which their consent had been obtained. The bargain
with them could not but have reference to the continued circu-
lation of small notes. which being suppressed, there was ob-
viously a departure from the terms of the stipulation. The
Bank lied lent Government six millions, to enable them to pay
off thosefundbolders who dissented from the reduction, and
that sum now comitituted a part of the over-issues. Ministers
resorted to a most absurd and mischievous Warne in reducing
the rate of Interest on Exchequer Bills, so very low as 2} per
cent. The-consequence was,' that gold was driven out of time
country. When people could get no more than 2-f per cent.
for their money, they naturally had recourse to foreign funds,
and other speculations by which a higher profit was attained'
indeed, but which inevitably tended to exhaust our metallic
currency. Ile deemed it most expedient to keep up a high
rate of interest at least in a part of our funding system, to
save the people the necessity of having recourse to foreign
speculations. When it was said that our prosperity was
merely apparent,: and that it depended entirely on time over.
issues of the Bank, the Alembers of Government declared
that it was'a sound prosperity, and by this intimation per.
sons were incited to speculate, relying on such Ind.
mation: as -proceeding from a source, which from its
opportunities of accurate Information on the state of
things could not be deceived. The repeal of the Bubble
Act he looked upon to have been a most unwise measure, as it
stimulated ignorant men to engage in speculations which they
would otherwise have shunned es dangerous projects, had they
not seen them sanctioned by law. The Right Hon. Secretary
for Foreign Affairs bad said that Government abstained from
interferipg with private affairs ; but he (Alderman Ileygate)
had heard a project proposed in that House for the building°,
a dock where no dock wits wanted, and the shares of that ape.
eulation were now at a tremendous discount. Me/idlers a the
Cabinet were ut the head of a scheme fur the production of silk
in this country, and many were no doubt led to join in it front
the influence which those Gentlemen must have over the public
mind. They were, undoubtedly, all honourable men; end he was
aware that they derived no profit front the concern. But it was
only fair to state what he conceived to be the real cause of the
distress, when the blame had been exclusively thrown upon the
Bankers. The one and two pound notes certainly ought never to
have existed, hut then they ought not to be withdrawn at this
particular period—this was certainly not time proper time.A cer-
tain operation might be extremely serviceable to time constitu..
don of a man if performed at one time, and equally destructive
at another tune. So it was with the proposed measures of
Ministers; however positively beneficial, they were unsuited
to the present period. They ought rather to excite public con-
fidence In the present circulation of the currency, allow things
to take their course tar a while,'end 'refer to a Committee the
duty of devising seasonable remedies for the existing evils.--
Notwithstanding any resolutions that might now be passed, a
very few days would show them time necessity of retracing their
steps,onclee they must submit to an inimensityof confutoon.—
This wits a dry subject of business, and wit anti talents ex.
erted upon it, so fur flout doing any good, might be productive
of infinite harm. It was the duty of Government to protect
the people against the consequences of their own errors,
therefore Ministers would do well to abandon theory and
confine tnemseivbs to considerations of practical
lie could conceive that a free trade might be mutually
serviceable to two countries equal in their circumstances ;
but where such Inequality existed as between us, with a
heavy debt, and the French with a light one, the conse-
quence of a free trade must lie exclusive advantage to one
nation,
and exclusive injury to the other. If a free trade were
to be established et all, it ought to commence with the articles
necessary to- the subsistence of life; but the Corn Laws could
not be repealed, because if we should attempt to compete whh
foreigners in the cheapness of food, poor lands would be no
longer cultivated. Our Government had become great upon
Vlningelld b
ielwe llittictl yww.o :ea b
ware noyw about to be overturned, and could
topying the measures of the-poorest
nations of Europe? Great results had already been achieved by
our system, and. he would entreat the Right Hon. Secretary fat
Foreign Affairs to devote his attention to-it as a subject worthy
the energies and powers of his capacious mind, and of the good-
ness of his heart.
Mr. Secretary PEEL., in; followin the lion. Gentleman
who last spoke, would take care to profit by the precepts which

he bad laid down. He felt flattered that the Speech he had
delivered in urging a measure seven years ago, was honour-
ed by the recollection and the remark of the on. Gentleman
on the present occasion. He would now take care not to talk
of Queen Elizabeth, nor to travel so widely ne his subject,
as the Hon. Gentleman himself had done. He did" not intend
to deny that commercial embarrassments existed, and to a very
considerable extent; to none were they a subject of sleeper
regret than to himself. If the House should be 'kilned to dis-
favour the measure:: of his Right Honourable Friend the Chan-
cellor of the Exchequer, they would be holding them respim-
sible for events which they did not cause. So deeply was he
impressed with a sense of .their necessity, that he would exhort
the House to pay diligent and immeeliate,attention to the foot-
ingon which the currency now stool. Was it prudent to let it
continue In its present state, when they looked to the effects of
the erstein of private banking for the lest thirty years ? He
was astonished that the Hon. Gentleman should 'construe the
language of his ( Mr. Peel's) Noble Friend at the head of the
Treasury, and of his ;light lion. Friend the Chancellor of the
Exchequer. as directed against individuals. When they attn.
buted public disasters to rash pecuniary transactions, froStered
and encouraged by the existing system of many country banks,
he had no hesitation in advocating those sentiments. If, in-
deed, Instead of such language, they had employed the terms
used by the Hon. Gentleman himself, such as abominable
measures—execrable plans—it might have been highly objec-
tionable. The Hon. Gentleman seemed to impute to Ministers
an intention to blacken the characters of Individual Country
Bankers. Ile (Mr. Peel) was willing to give them full credit
for honourable feeling;. but yet he must reserve leave to repro-
bate the .system. There were at this day no less than 300
Country Bankers. In the year 1793, it was matter of astonish-
mont to Mr. M`Pherson that there had then been so large a
number as 228 Bankers issuing paper, which was the circulatit*
medium of the country, by which the pour were paid for their
I lahaur: Against that system he would deduce the most power.
ful arguments front the facts disclosed by those who were its
most strenuous advocate. The Hon. Gentleman, who, het
spoke, deprecated the charge against the over-issues of Fie
vats Bankers. On this ground, that no private Banker was aware
of the public injury to which he might contribute in the course
of his accommodations to tl:e individuals with whom' lie
dealt, inasmuch as he could not possibly know what excess had
already been committed by other Bankers in their issues. And
could any stronger reason be advanced against the system than
this very one, which was urged in its support?—(blear, bear !)
Again, it was stated by the lion. Member for Staffordshire,
that Bank notes has a natural tendency to increase in proper.
tion to the rise of prices. Was not this another very strong
argument against the principle of the system ?—(Flear, hear !)
—And might not the 'Honourable Gentleman with great truth
have added, that as prices fell, there was a correspondent ton.
dency to contract the issue of Bank notes ?..e-( Hear, hear !)
Their effect was to stimulate in excitement, and to sink with
depression : thus reversing the beautiful principle in meithanics,
whereby the contraction of one part is compensated by the ex-
pansion of another. The arguments in' favour of the system,
availing any thing, should go to be indefinite extension even
after the expiration of ten years. • Yet how melancholy would
be the situation or 4. poor labourer who had accumulated a little
euni by Ids toil, on presenting at a Saving's' (lank the one or two
peen(' mite of a bank which had failed. It was not designed
wholly to impute to hank issues the speculations in which men
ettiged ; it was only meant that such issues had a tendency to
excite speculation. It was easy enough to attack tip. measures
proposed by his lion. Friend the Chancellor of the Exchequer,
and to say that it was no remedy fur the evils which it was de-
signed to Meet. But the fact was, it did not profess to be a
remedy. The Hon. Member for Taunton had said, that the
House waCon fires and that they were bound to provide for the
safety of thoie who were trembling in the garrets. Vet the only
ladder—the only measure of relief which he htul proposed was
to the same objection as that, which he said went only
skin deep. His proposal was tp make silver tits legal standard
It was certainly deserving of grave consideration ; but before
its adoption it would be necessary that the measure should be
well reviewed in order to prevent fluctuations, that men who
had contracted fur gold might be enabled to pay in silver. By
the restoration of a gold currenc we approached nearer to a
conformity with the system of our ancestors. The effects of the
modern system were obvious enough in the failures of country
banks, Which occurred in later years. In 1310 there were 20
failures.e.
In 11111 . 4 In 1814 - • - 29
1812 - . 17 - 1015 - -
1013 - 13 11116 • - 37.
and in the last crisis there' were 70 .fitilures. The number
of Commissions of Bankrupt, which were issued, were not
identical with the number of failures. In 1793 there were but
24 Commissions, though there had been 100 failures; and they
ought perhaps to employ the same proportion in estimating
the recent failures multiplying the given .number. According
to this view of the case, could any system be worse? Now let
Hun. Gentlemen contemplate the effects of the system pursued
in Scotland. In 1819, when Mr. Gilchrist, a Scotch Banker,.
was (=milled before a Committee of the House, when asked
how many failures he knew to have occurred among the Scotch
Bankers, his reply wive that within his own memory only one
failure occurred in Scotland; and that the failing Bank bad paid
iinthediately a dividend of 14 shillings in the pound, and sob.
sequently the whole of their debts, a strong presumptive
proof thin that there was something worthy of imitation in the
Scotch system, - and something defective in ours. The most
diatressing consideration connected with the latter was, that
all misfortune* were sure to be visited upon the lower classes, in
consequence olthe succession of failures. Those who were
losers of large sums might from their easy circumstances be
enabled to wait a distant time for a dividend but the holder
of a one or two pound note had perhaps his whole property-eon.
lined to that very:sum, and such were the parties who were at
once Involved in else severest necessity, anti after all received
the most inadequate compensation. The Hon. Member for
Waterford had detailed a lamentable history of distress, as re-
suiting front the failure of a Connaught Bank. He had now pre.
sentedhis ideas as to how far a remedy was required .1 he would
next advert to the adequacy of the remedy proposed,. and,
finally, he would notice the objection made against the time of
its introduction. Some Gentlemen were of opinion that there
would be no Joint Stock Backs formed in consequence of the
permission of an Act of Parliament ; but to that opinion he
could not agree. He was sure that Fuck, a plan could not fail
to be brought into action by those genflemen who /were desirous
of establishing a bitter system of things in their own districts,
and he felt that they would he actuated more by a sense of the
public good which must flow from such a measure, than by any
selfish regard to their priVate interests. One obstacle alone was
opposed to ste desirable an object, namely, the right ofgratiting
a Charter to such Companies. and he hoped that the Bank of
England would consider the little advantage. which it gained
by withholditig the concession, and the great benefit which such
concession would confer upon the country at large. As to the
objection that hi the majoriteeof partnerships at present, the
number df partners did not amount to six, it went for nothing.
So small a number as six implied personal acquaintance and
confidence between the Members, but that was not necessary in
the Case of a Chartered Company. In Scotland one Company
consisted of 100 members, and another of 75, though neither had
charters. There were but 30 Bank% in all Scotland, though we
had 000 here. In Ireland two Banks had been formed since the
Permissive Act of last Seesion. There would be no great diffi.
culty iii procuring a sufficiency of gold to supply the amount
of small notes In cireulationi The average amount of small
notes in circulation did not probably exceed six millions. But
he was willing to take seven millions as a maximum ; and even
in' that ease lie could not see the impossibility to the country of
supplying suelt a sum in gold. Since 1019, twenty-five millions
of sovereigns had been coined at the Mint. Allowing for 7
or ii millions exported in the interval, there remained 17 millions
now in the kingdom. The prohibition of country notes would
call forth the gold, which was now hoarded in the coffers of
bankers, partly as a resource tomcat a demand .ot payment, and
partly that they might see their own dotes In circulation. The
seemed
ut lodt think
' whole, lie thought, might be amply made up in the course of 3
years. • The HOP. Gent. who hadEalpigoikaennafilrabltaseheems
ittitreivehiercstatiLiteoarthit existed in the country banks to continue
recollected. -.that thenp-triiivealtelanbtookfs had no charter, while the
Bank of England had one for which it had paid .to Government.
Those who recommended to postpone the question were advo.
cafes for uncertainty on a most important subject. Now or
never was the time; the opportunity.once lost was gone for
ever. They would, at any future period, find the passage too
wide, and it would be impossible to cross the flood.._
Monte decurrens Velut amnia, irnbrea

(Riein super notas aluerc ripas.
Mr. ATT V 001.) was not distinctly heard in the Gallery.
He argued. that the depreciation of the currency was not to be
estimated by the price of gold, but rather by that of commodities.
Following up this principle he would ask, how was the price of
grain for an average of several years before the interposition of
Parltittnent 1, It %mold be found to be about 435. per quarter.
The Bill of the Right Hon. Gentleman by interfering in the
currency, soon convinced every one that the- price was much
increased when payable in the metallic currency prescribed as'
the standard of value by the Act for Regulating the ItetUrnto
a Cash Currency. Would any one now contend that this price
ofcorn, when it became necessary to pay for it in a metallic cur-
rency of high value, superior workmanship and beauty, wasnot
very much enhanced. Whatever was the extent of our gold cur-
rency, whether four,
five, ten millions, or even more, this country
paper m this country, and consequently
wwase
ranoiste:otobuerafri,esiresdohty the quantity of gold, so much as by the
prices which things generally bore in this country. When
affected prices, then the Continent would drain us of our hard
money, and gold would of course disappear. The average price
of corn which he bud stated for some years, to be no higher
than 43k. per quarter, during the war lose to SO to 42, to .60

And 655., exactly in proportion to the issues of paper currency
here. The Right lion. the Chancellor of the Exchequer had
said, that out of this state of the currency Efuh prices had arisen,
and speculations.which were deeply to be lamented; but the
Right Hon. Gentleman should have recollected too, that, from
the same operating causes, rents, which it had been.almost Iw-
possible to collect, became payable; the wages of agricultural
labour increased ; and out of .a portion of our population which
had arranged themselves in many places as rebels, and sought
by midnight plunder to obtain Arms in order. to resist the Go.
"eminent, and the imposition and payment of taxes, we had
new peaceable, industrious, contented set of subjects.—(Hear,
hear o—The evils- which-the Right honourable Gentleman
deplored, he attributed to the conduct of Parliament; 'but,
he should recollect; that, out of that folly on the part of
Parliament, that prosperity of the revenue arose which the
Right lion. Gentleman had often aanguinely told them stood
On Sure nod solid foundations. 'The HonoUreble Member then`
took a -review of the conduct of !Ministers and of Parlia-
ment with respect to the Bullion question, and characterized
the manner in .which the House had called fur the important
vote to which it came in 1819, Rs an instance of tumultuous and
reckless levity, altogether unbecoming tht. Subjeet, and' which'
had disgraced it in the eyes of thepublie. ' What confidence
could the public repose in Ministers who could, under such cir-
cumstances, have restricted. us to cash payments. , The tonse-
quenees of Biter conduct ought to teach them circumspection
and dismay. If it did not, there was little hope for the country
as long as it was under their guidance. The structure on which
high prices stood being taken away by the bill for resuming
cash payments, did it not follow that the pecuniary engagements
of the country would be reduced to their former level ? It was
clear that the Bank of England could not, now make increased
issues whilst the measure was pressing on them which was now
contemplated by his Majesty's Iklinisters, who appeared* their
alarm to ocoupythemselves merely in debating these subjects,
and shutting their eyes to the approach of still greater dangers
than those which they had already witnessed.
Mr.IIUDSON GURNEY said, in a very indistinct tone
of voice, that should he not be anticipated, it waahisintention
to move an amendment to the Resolution of the Right Hon. the
Chancellor of the Exchequer. The amendment would entirely
lease out the words, " or notes of the Bank of England." 'This
' would keep thenotes of the Bank of England in circulation
object of very great importance, because he was satisfied
one of the first effects of the measure would be, the substituting
country bank notes as the circulating inteliutt, instead of small
Bank of England paper. He attributed the -foundation of all
the errors and calamities lately experienced in the monied
system to the conduct of the Bullion Committee. In conse-
quence of a Right lion. Gentleman,-whci interested himsilf
much on that occasion, bringing in the bill of 1819, founded on
the report of a Committee of the House, a series of inconveni-
encies arose which ended in the general distress of .189.1. He
was convinced . that under what were termed gold prices gene.
rally, this country could not hold up its head in 'competition
with others. _ _

Mr. Secretary CANNING, before entering on a subject
which he felt to be one of extreme moment and importance,
begged leave to be permitted to set himself right with the
House, and also other parties out of doors. Whatever he should
feel it his duty to • say desparingly of the currency, whatever
he might adduce to prove the necessky of a reform in our cur.
rency, he did not mean to attach .any blame or excite any sus.
picion to a hotly of men to whom frequent allusions had been
made in the debate of this and a former evening, who were the
dispensers andaplininistrators of the currency to the amblic.—
He believed, for his own part, they had rendered great services
to the country, and their assistance% had often produced a
wholesome stimulus to industry, anti a fair rernunerution to
labour ; he alltided now to the country bankers, and be must
now assure the !louse that; whatever the inconveniencies expe-
rienced through this channel, they were attributable to an inhe-
rent evil in the sy:4eni, and not to any ablise of the power
lodged in their hands._ Ile begged, therefore, if in the
ardour of discussion any thing escaped from him which
might be considered equivocal, it should not be taken as
applying personally to them, in the seine way as on a
former occasion, where he had taken an opportunity of saying,
in speaking of the Directors of the Bank of Failantl, that they
were unfit, in a corporate capacity, to exercise 'a prerogative of
the Crown. Ile had no intention of attaching blame to the
Directors, though attacking that system which they were called
on to effect. He thought a debate upon the subject of the Cur-
rency and Country Banks was less inconvenient and less den-
Remus perhaps, than at any other period ; for it was his opi-
nion, that the presumption very generally was, that these esta-
blishments were fixed on a stable, solid, and firm foundation •
inasmuch as they. had withstood the storm which had. levelled
weaker fabrics with the earth, and were now competent to those
•engagementa, . whatever might be the pressure of the present
Period, exsggerated, as he imagined that pressure to have been.
Impressed as lie Was with these sentiments, he thought that
those who had demands on country bankers would argue both
very illogically and unreasonably if they press the bankers with
applications to change their own notes for gold, paper °Me
Bank of England, or ifthebankers should on their parts apply
for or enforce payments generally of the sums' of -moneyahey
had advanced on securities or otherwise to their customers.—
. It would, he thought, be found a measure essential to the safe-
,ty of the country that no hid netanent or encouragement should
be given to a .precipitate application of the holders of coun-,
try bank notes for cash to the bankers. With these senti-
ment,' pressing on .his eonvictioa, he was anxious to clear
the ground before lie proceeded to deal in detail with
the subject. An: Honourable Member opposite had, in
considering the subject on a former evening, divided it into
two parts. On the one hand, the measure had been described
as perfectly inadequate to the end proposed ; or, in other words,
mere milk and water; • whilst, on the other hand, it had been
'contended that tits measure, if acted on, would bring a pressure
on the monied, commercial, manufacturing, and other interests,
which the country would not be able to bear. He had good
reason think that both these views of the subject were un.
founder.je His Right Honourably Friend had so ably stated his
' reasons for considering the proposed measure as likely to be tiny
thine but inefficacious, that he should pass over that part of the
inquiry to address himself to the latter. Amongst the causes
assigned for the recent monied embarrassments, the most gene.
ral was the indulgence in an extravagant spirit of speculation
which had been described by the Hon. Member for Northamp-
ton. Nor had the existence of this spirit, tor its probable
dangerous consequences escaped the attention of his Majesty's
Ministers, for so brick asAug. last the King's speech containetta
passage, stating that there were causes for exciting apprehension
with which his Majesty's Government or Pruliament could, not
deal or controul. So intently was the public gaze fixed upon these
extravagant speculations, such the a.ppeteney for gain, that it
was almost impossible to avoid the contempt pf other countries.
Projects which were formed at the dawn of day, before sunset
had been matured, and dissipated into air; whilst a vapour
was sufficient to lift it to the heavens, the puncture of a pin sent
it to the earth. The whole of the history of these transactions
afforded a lesson which might serve. to repress the inordinate
iweetilation of gain. Indeed the spirit was so extravagant, that
its tentency 'was to repress itself. But It would not be contended
'that because this feeling on the part of the public had run
riot, that our circulation, which was its aliment, should be
dantned up. Once convinced of the demerits of the system
which had so "beguiled the country, he was desirous that
the House should address itself to cure the faulty part
of our currency, to which so many attributed most of the
late inconvenient and alarming results. lie wag as well
as others of his colleagues in office, desirous that the House
should enter into the consideration of this subject now, be-
cause he tt at, convinced, that if not attempted to be remedied
and cured now, it would be long ere we were in a tem
Iper to dis-
cuss it, or make the attempt to correct past error. n order to
clear more fully the ground for stating his sentiments, be must
deprecate a practice which prevailed. It was the fashion, as
set by the Hon. Member for Taunton, and followed by the
lion, Alderman, to fix on those who diWered from them the
character of theorist and enthusiast, and then arguing, that es a
theorist was a person who would sacrifice the dearest interests
of the public to support his favourite passili, those who were
opposed to the Hon. Gentleman would of course make a similar
sacrifice of every thing which we held dear. This he must
protest against as extremely illogical and extremely unfair.
He had no objection that any one should impute- to him
what he had not said, provided that he did so in error,
and when apprized of his error retracted the accusation.
But if he saw dint a statement of this kind was made
with an intent to found an inference on it, as in the attempt
which had been made on a former night to fix hint as having
been on the Bullion Committee, and that the trusting to such
men as lie and hi* political friends were, was merely commit-
ting the interests of the public to blind guides. 'When they
were warned to bewail -how they quitted the .solid rock of
paper money, and trusted themselves to the tumultuous and
fluctuating seas of metallic currency,—(Louti laughing)—these
were attempts to deceive and mislead, which could not
be sufficiently condemned, and which he considered or-
guments of the very worst kind. He not only did not take
the part attrbuted to him by the Ilonourable Member.
Mr. BARING interrupted the Right Hon. Gentleman, and
stated that he had made such a statement as that alluded to, yet
on being informed of his mistake, he had retracted the charge
and he now put it to the House, if the manner in which this had
been alluded to was fair on the part of the Right Hon. Secre-
tary.—(Loud cries of hear, from the Opposition Benches.)
Mr. Secretary CANNLNG said, he could tot have corn-
plained of the mistake had it been, in his opinion, uninten-
tional. The Honourable Member's assurance that it bad been
so wits insufficient.
Air. BARING observed, he had already made that state-
ment, and It should have been satisfactory.
Mr. secretary CANNING resumed. The part he had taken
on that occasion WAS thereby suporting all that part of Mr. Hoe.

ner's resolutions on the bullion question,_ which affirmed
the monetary system of the country •
'• but be had never
expressed himself as prepared to concede that the Bank
should be opened the next day. The only propo-
sition he made was, that during the suspension no
augmentation of the issues of Bank of England notes should
take place, nor did this at all savour of theoretical fanaticism.
His ideas then had since been proved practically, for he then
thought, as he did now, that a small note circulation could not
jointly exist with a metallic currency. So far he was of °pi-
njOn with the worthy Alderman. Looking to an early period
of our- financial History, the period of 1792, be referred the
House, to the authority of Burke, who was, either as a speaker,
or when he attempted to prophecy, no Winery guide, and In
the contrast which he drew between the paper system of the
French Revidutionary Government and our paper, he had.well,
and with his usual clearness, shewn there was this great db.
-titietion—that In our system there was no authority whatever.:
One of the consequences of this was, that he had Dent wit.
nessed'a'acarcity of cash and an abundance Of. paper. A -great
part. of the Hun. Gentleman's speech consulted of items of-
advances by the Bank of England for Government, which
he 'contended had so choked up the Bank, that It me no
longer a fit agent to transact the public !Aline* Uwier this
head were enumeratet4 the Dead Weight, as it was called,*
8,000,000/. ; Exchequer Bills permanent, amounting to:
7,000,0001.; advances of the Bank to cover Deficlenitite,
5,500,0001. ; and above 2,000,0001,. for paying off the Non.
content 4A per Cent holders, together with 1,500,0001. advanced.-
by the-Bank on mortgages of landed property. To take up
these items in a retrogade order, all of which this Honour.
able 11Iember's speech endeavoured to, prove, Government
Jiad choked up the Bank with, to its great inconvenience
and. the prejudiu of the public, it was then . Government had
no more to do with the mortgage than the Hon. Member.—
The Bank had thought tit to advance money to the landed in.
wrest as a proper mode of investing the money of the Bank
Proprietors, and it was nothing to Government whether they
were right or wrong in the speculation, which ho was satisfied -
they entered into conscientiously. As to the dead weight, he
would confess, what was not now said fir the first time, that
the attempt to comprehends thing was no proof of understand.
ing it. He prefes.sed he did not for one understand the ques-
firm of the dead weight. Whether the Government made a
wise or an imprudent bargain with the Bank was not the
question. With what he was now saying, as to the imm.
deuce of the. Bank of England, the Government had nothing
to do. They sold a bargain whia the Bank bought, and the
terms had, of course, been at
,the option of bud) parties.—.
The Bank was at liberty to have gone into the market the
next day with their purchase, and if they had done so they
would have found ready customers for it at a profitable rate.
It could not, therefore, be said that the Government was to
blame if they retained it until they lost their opportunity. A
wise taker of a loan sold it as soon as it was at a premium
and if the Bank had done that, they would not have been
embarrassed by it, as the Honourable Member now represented
them to be. This -ought therefore to be taken out of the
lion. Gentleman's calculation, and thus from the stun of
24,000,000, stated by the lion. Member to be hanging On tile
exertiona of the Bank, and preventing the use of their capit4 fa
meet the exigencies of the currency, 6,700,0001. must be retA,
ed. Next, with respect to the advance made by the Bank,-...
3,700,0001. that was now in a course of payment, at the rate of
750,0001. per quarter, or 3,000,0001. per annum, and that charge
Would be.done away with in the course of this year. There
remained the permanent Exchequer Bills, and the deficiencies.
—To himself, who was not much versed in these matters, the,
simplest and the clearest way of approximating to a knovrletlgo
of them was, that of supposing a case in the anions of private life.
of the Government and- the Bank, in res
And he thought be could elucidate in this manner the situation
the deficiencies. "Supposing a nobleman, having 10 or 12,00 a,
a-year to:pay out of tliF. rents of his estate, in quarterly pay
ments, wishes to avoid the trouble himself, and makes over to
his banker the payment of the same, with a claim t.) the in•-• 01
doing so upon his rents and income. Suposing him to say ,t°
the Banker, " Only do you. make these quarterly pairenp'',
pect to what was called
and take them again out of my rents; and if ever you gat" -
me with an interest upon the surplus until it is repaid ;
deficiency in the rent compared to the quarterly advance, charge,.
ever it should be less than the income, then I will not require
interest to be paid to me." In such a case he would ask, it
the Banker would have a bad bargain ? Ile would 14,
then, that the Bank, was in the situation of such a banks
ing house towards" the Government, and dealing will it as.
such a House would be dealing with the Nobleman. They
were making no advinces but what were speedily --felt;
and indemnifying themselves for any deficiency by Teceiv".'
interest until it was made up. This was the exact nature of ill
arrangement, between the. Bank and the GovernMent• Auk.
how did it work ? By tl4 ittatement which he held 111 his high"
he ,could explain the course of their transactions in the last Yea'''
On the sth of January, 1824, the sum advanced by the Bank was.
,1,t40,0001., and this, was all cleared 0114 the end of the OP
quarter, continuing to bear interest in that interval. On r,).
qusrter ending the sth of April, the advance on the part 01.
Bank was 100,0001., all of which was cleared off by the eml °'
:May', and for the remaining period of the Ith July'
quarter, up to
to
the Dank was inipossession of the revenues of the Government
doith them as to it should seem good, and paying no iltg„,fol
but if
upon the amount. On the sthofJuly they advanced ito(',`";:ii
which wAt cleared by the 3d of Sep.ember, and from that
to the 10th of October, the receipt of the revenue was 511510
,w
in their hands, and ..the profits accruing from the use of
money during that period. On the 10th of October the 7_
•
vance was. 1,400,0001. and odd ; and on the 10th of Pecetut
that was cleared, and the benefits accruing tram the holding
the the revenue again belonged to the Bank until the fith,_,at„or,
5,500,000!.;
nuary. lie then went on to the sth of January in this was
and at that time the advance on the part of the 'ban- was
and on the day on which be spoke the amount was
reduced to 2,500,0001., and was in a course of daily eeductlia, ••
He contended that it was not fair, therefore, to represent ""g.
prim! of a legitinwe source of
connection between the Government and the Bank as an hiltrtbo
diment to its operationtawhen it was, in fact, an aid; and
Government withdrew it from the Bank, they woul_iti ue
prised to hear it so described by the Hon. Gentleman, heS--,
profit. Ile was, indom' Siase
he found it asserted in the Report of .the Bullion Goninnete'
and again in that of the Committee of 1810, that the adva,/a0
the Bank ought not to be named without a consldente ef
the balances' at the stone time. Whatsswas the lawyer' and
those balances in a year ? They amounted to 7,ooo,vus'n, to
the Bank therefore gained the bendlit of having that "--aul
apply to whatever uses they might •think most advantalgoo,
to themselves.. Why, then, he had reduced these 24f et
of the iron. Gentleman -until nothing remained to fetter ~e•
operations of the Bank but the 6,000,000 of permanent Eat.
%ter Bills. Surely no Gentleman would say that the sure 47;
tonally advanced by the Bank ought to be taken into the
tion. He maintained that no ediMents haneen thrown us
vern•
the way of the Bank b P
y its connection with the poverty
meet. If the Bank Proprietors had -divided eight tra;
cent. upon a capital of 14,000,000!, instead of dividingdS
tbst
per cent. upon the original' capital of 12,000,000 k. and cob
encrease accruing since the time when they stisPen,dlia re.
payments. he thought there was little to complain c. not
membered that upon seeing these dividends made, andIt
viewing the subject as a political economist, but treatingo
practically, he thought tit to propose in the Bullion Cotnmitt4.
that no further encreaise of their dividends should be pertnta
Ile thought he gathered front the Hon. Gentleman some elt;al
chat further measures of relief might have been contenifi",-/
by the Government, which the Bank were not able to I.aaa" f
Into effect, if nut direneUmbered of its embarrassments, at"-"„,rs
from transactions with the Government. But he would v.i.ena"*„,
to say that the Bank was, in respect to its connection with
vernment, in a suite of less embarrassment than at toy lamc
to which retrospeetion-could carry them. It', lien, tne, 4,
of England was in such a condition, what was there to oantry
operating this change in the currency, on the part of the C, A'..,%1 the
Banks. The nearest approximation that could be ma", :Net
amount of their circulation in small notes, placed it all-tight
4,000,000/. Why, then, what was the extent of his t tps
Honourable Friend's proposition ? He proposed that al cit.
.1 -
course of three years, the notes should be withdrawn ftn“too.
culation, and Metallic currency substituted in theit_t asal
There were, perhaps, about 700 Bankenow in the cont"" 'each
if this sum were divided amongst them it would g, ire ts°, this
about B,oool.'ai its circulation of 11. notes ; and to with& wta
they. were given three years, which would make the suits Now
diminished between two and three thousands ts yea,i,r'
se of
Country
all that he had heard of the solidity and lar
Country Banks, was lie to be told that the with _ terse
or three thousand a year from their circulation Ott flat
years was such a strain uspon their capa,cit.y, that it cone;
but overwhelm them with distress-and nun ?-411eal'allaropew
Ile was sure that if his Right Hanciurable Frir"'"*Tiatie,
(ion were treated without exaggeration, ;malted by
fluid anil
and reduced to its own natural proportions, .1 (1)1_d a
excite wonder that so much Alarm anti apprehension 100
expressed in that' House as to its character. nu!, 000,4
he would agree with those who took an oppos„f diel)•
and affected to treat it lightly, in all their epithetJ the
notion and extenuation, as far as regarded callal"id
~0
roM
ad
measure into operation, yet he widely diff f
ered - tintn-
to its ultimate results. If it would be small in its lb!
diate effect, it was mighty in principle. If it "900001
minds of men to a sense of the value of a metallic eit„ put
t!
would have achieved a mighty good; it would `l,-frereal
check upon a growing evil, and one which, u .They
Pow; might proceed to an incalculable Went' ~4 aotes;:t
seen something of the of these • one-P"" sir
He remembered that Mr. Burke, with whom, whenk, Obi
came into Parliament. he had the happiness of being__—to
of intimacy mentioned the subject of one pound notr.„, ids
in a letter., It was the only letter its ever receired