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

to tee a rival bank in London. A rival bank in the Metropolis
would be productive of the 'worstzonsequences.e With respect
to the change which had taken place fn the currency of the coun-
try, he believed that the circulation of the country banks had
not been the cause of the overtradinge it had arisen out of the pro-
sperity of rhicountry. Trade reached an unusual height; every
thing was so cheap that persons were actually out of employ.—
When allthe capital appeared to be employed, they'had more
surplus capital employed than at any former period. He knew
one banking.house which hail no less than 3,1)00,000 of capital
in bills; others were in a similar state, and that.whielfweicalled
abundance of capital, Was abundance of paper.' This brought
on the_ceisis. One house in London breaking, broke nthers.--.
Forty-nine.Countryllanks failed—then came the'penic. Cor-
fidence was gone, and Parliament had to consider how it could
he restored. The country was still rich, and things might come
about. Upon the whole view of the question, the Hon.'leni..;
ber wee disposed to remain as they were, rather' than decide
rapidly for the adoption of any measure which might have an,
injurious effect.
Mr. BAILING said he was anxious to bring this very impel',
tent question to issue; for he Was convinced that much Injury
would be done ley a discussion of this sort day after day. lie
should, therefore,.feel it his duty ttilake the sense at the qonio
upon an .Amendment. His impression was; that the proposed
measure was one, of danger,. and he should a Keeortition
to that effect. Ire should move a Reitolution ' • • '
" That it is the opinion of this House, that in the preset t
distressed state of public anti private credit it is not expedient
to enter into consideration of the Bankini• System of the
Country."
The state of fever in which the country was found, made it
unfit to go further into discussion. The proposition he shotild
submit to the House eirould decide the question. If the House
thought proper to support his Majesty's Ministers in this project,
he should give up furtoeropposition. Before he moved his amend-
ment, he was desirous of saying a few words in the_ way of ex-
planation. lie had first to apologise to the Right Honourable
Gentleman for that which he•had said. He thought the Right
ilon: Gentle Man had imputed to him a desire to persist in finis.
representation.. fie could not avoid calling the attention of the
House to the peculiar situation in which it stood. ' The country
was in a most extraordinary position. No person ever saw
such a state of utter want of confidence between'man and man.
Although a clever speech, made by the Right Hon: Gentleman,
Who stood high in the councils of tire' country was deservedly
a [mired by all those who heard him, it could not reach ilk
understanding of those who:looked for re distinct remedy. No
Man of business in that House from one end to the other, whe.
ther Merchant or Banker hail told them. he 'had confidence in
the proposed measure. None hail ventured to• say it could he
adopted without danger. One Gentleman,- who knew some-
thing about the circulation of the currency, had merely said he
was hiclined to vote fur the Resolution. Gentlemen came
from the Inns of Court, with information derived from books,
to give the measure support, hut not one practical man could
say it was possible to adopt it without danger. The Right Hon.
Gentlemen with his great and spleoditi talents had given the
strongest support to the intended measure, yet upon such, a
question he (NIL-Baring) would rather take the opinion ef .he
Right lion. Gentleman at the Head of the Board of Trade.
The speeches made on this subject brought to his recollec-
tion the story related by the Earl of Chesterfield. One per-
son made a speech -which was plain but good Ws:, po one,
however, attended to it. Another made a brilliant speech
which hail no relation to the subject. Every one attended.
to it, and it was considered excellent. ;The -first, which
was really good, was decided to be the worst. All -who
had taken the Subject from books and theory were decided
on the subject. They made brilliant speeches, upon a false
view of the subject, anti who could say that very circumstance
was not an increase of the evil. The object was to restore-con-
fidence and something like ease, by bringing about that change
which must be attended withevil. . Men of business recom.
mended delay, and their- judgment must, be better than theory.
The issue of one-pa-Lind notes had been condemned, but one.
pound notes had little._ to do with the panic. All the vile
schemes and Impositions were town made. The'countryinen
were the dupes of London sharpers. The ever-trading was
with merchants residing in town, where a one-pound note
did not exist. It had Veen urged, that if they did netMelte
the change then, they would never make It. It it really was a
nuisance to be abated, that House ought to do its duty; but
what was the case ? Would any commercial man get up and
say the change could be made without peat risk Tf any Gen-
tleman could. say ;here was.no risk, he would give up his oppo..
aidou. The Hon. Member repeated his former objections to the
measure. It wit's out of time ; the experiment should not be made'
with the eXperiments for the benefit Of free trade. It would
throw the country into confusion and upon the eve dr geperal
election itinerant statesmen, would not tail to use it as an instru.
ment for promoting their attempts upon credulity. Ile had
formerly stated his opinion that-difficulties in the currency had
been occasioned by choking the resources of the Bank. 'fire
Government had drawn too much upon those resources. Under
wise and proper management he thought public business might
be carried on with the • present currency., He would leave the
thing alone for the.present, and legislate respecting the country'
bang" notes girths' end of another year. The Hon. Member
concluded by Mewing the amendment which he had previously
stated. -
. litlx..llol4ooE 0 itENp ELL believed in his conscience that
there would be "no safety to the credit of this country, unless
'the placgof notes were to he supplied by a metallic currency.
The bank note system was one of the causes of the present evil.
The Amendment was then read by the SPEAKER.
Ire BROUOII AM. did not know whether lily lion. Friend
would allow Km to differ from him, but nevertheless he would
state his reasons for so doing in as short- a time as he could.
It was his opinion that a recurrence to a metallic currency
was the only means of restoring that tranquillity which had
lately been so disturbed. It could not be denied that the panic
had commenced with the holders of the one and two pound
notes, perions generally speaking in an inferior sphere of life.
This had increased gradually, so that io the end individuals
who were possessed of larger notes had also been affected by the
panic. It was necessary that sonic decielve step should be
taken to prevent a recurrence of this terror. lie did not
like to hear his Honourable Friend (Mr. Baring) wish for a
postponement of the question. Prcenistination in this in-
stance Would do infinite harm. lie knew very well what would
be the consequence, when at some future period they would
propound the question. The answer would be, " What, shall
we go back? No, stand still. Don't retrace your steps." If
in a time of prosperty, they would be met with, " 'Tis a pity,
when every thing is in so flourishing a state, to do away with
these notes." And if at a period of embarrassment still sonic
excuse would be ofibred, " What, would you encrease the em-
barrassment ?" He wished something to be devised as soon as
possible at the present period. His lion. Friend hart said—
" Don't do it now," but then he had not said when he would do
it. If he would state any fixed period, something less than
three years he would then be satisfied. He thought that if it
were generally known that as soon as the notes now in circula-
tion were worn out, fresh ones would not be issued, they would
find that at the end of a year and a half, or at the utmost 3 years,
a metallic currency, which had gradually supplied the place of
these notes, would be fully established. None of the Hon.
Members on either side of the House had yet suggested a cur-
rency which would he intrinsically valuable, whether of gold,
silver, or even a mixture of both. lie thought that tampering
with the currency as it now stood, or proposing one which.
would be liable to be changed every two or three years, was not
only impolitic but also unjust to a very great 'degree. He would
merely say to those Hon. Gentlemen who were doing so at this
period—" Recollect well the month of December; reflect on
all the horrors of that fortnight or those three weeks of dis.
tress !" 'He was fearful that it' the former circulation was still
allowed to go-on, the mischief which they had been labouring
to stop would return with all its train of horrors. He did not
doubt but that it would be followed by distress in another
quarter, he meant the agricultural. In it state of suspension
like the present, he should give his vote for putting the ques.
tion at rest.
Mr. Secretary CANNING (amidst loud cries of " Question,
question,") expressed a hope that the decision of the House on
this motion would be decisive on the whole qUestion; and the
sooner that decision was given, it would be the better.
The House then divided...-.
For the Motion • - • - 239
Against it . . ge
Nlajority.against the Amendment 193
I ;During the exclusion of strangers the House went into a
Committee, and the adjourned debate was resumed. on being
re-admitted we found Mr. flunsoei GURNEY proposing an
Amendment to the original Resolution, which was understood
to be that the words "of the Bank" be omitted. -
The CHANCELLOR of the EXCHEQUER objected to
the proposed Amendment.
MABERLY had received a letter from Scotland, in
which the bankers of that kingdom expressed their anxiety to
know whether duty would be affected by these Resolutions ?
The CHANCELIAR of the EXCHEQUER thought it
advisable to confine the operation of these Resolutions at pre-
sent to England ; something else might be devised at a future
period for Scotland.
Mr. lINME was sorry that he had not bad an opportunity
of explaining his reasons for differing from the Non. Gentleman,
whose Bill was intended to restore a metallic currency. For he
conceived that it was owing to the small note currency that
these distresses originated.
Mr. Secretary PEAL in reply assured the Hon. Gentian,
that had his Bill been carried into effect, there would not now
be a single country note in existence, because it strictly forbade
the issuing any newt but from the Bank of England.
Mr. BARING thought that some sontroul ought to be placed
on the CHANCELLORIey ernnt relati EXCHEQUERssese notes.
Thr of NI tated that