The Sun.
London, England, 1828-06-04 00:00:00

Exchequer, that although the rush for specie on the part
of the Bank customers, may not be contemporaneous, yet
that it must be before the sth April, 1829. Now, to pre-
cure the specie, either Exchequer Bills or Stock must be
sold. If Exehequer Bills he sold to a large amount, and
for a large amount it must he, a state of affairs would very
probably he produced, such as the Alinister of
Finance in 1825 found to he very alarming. If
it be by the sate of Stock the Country Bankers will go
to the Bank of England with their notes, and demand
specie. This cannot fail to take place to a great extent.
It is of course well known to the House that each banker
must hare a reserve of at least five thoUsand to meet the
demand for his notes. Thus seven millions of specie is
kept in constant requisition; and the undoubted conse-
quence of the laws, as they at present stand, is, to confer.
upon the four-and-twenty gentlemen who sit in the Bank
Chamber the power of doing almost as they please with
the currency of the country. It makes them completely
arbiters of the commercial and financial interests of the
country, for it rests with them, either by the purchase of
Exchequer Bills, or by the re-issue of notes, to expand or
contract the currency to the extent of 700,0Q0/. Then
there is in the law, as at present subsisting, no provision
for contingencies—a defect which the Legislature, at the
present time of day, is bound 'to find a remedy for.
Suppose a bad harvest ensues—suppose the grain of
this country, at all time.{ a short supply, prove insuf-
ficient for the necessities of the population, how can
that deficiency be made good, without importation, and
importation depends upon exportation—and that again
upon the state of the currency ? The effects of the preaent
system were most satisfactorily proved in the panic which
took place in 1825, and a return upon the scents of that
period would necessarily lead to substituting a' domestic
demand for gold, instead of that which ought, and which
does exist, namely, a foreign demand. In addition to the
question relating to one pound notes, there would come
under the consideration of a Committee, if the House should
agree to the motion with which I intend to conclude, several
other questions, perhaps to the number of seven or eight.
But let it not be supposed, that we are to go into this
inquiry blind—that we proceed to it prejudiced, or with
our minds made up. No; if such a Committee be ap-
pointed, as I sincerely trust it will, we should, I.anticipate,
enter into a fair discussion and inquiry—into a candid in-
vestigation of all the circumstances connected with this
great subject. First, it would be our object to ascertain
upon clear evidence what might be the expense of effecting
the object which I propose we should hold i❑ view. We
should ascertain the amount of the present pressure which
an enhanced currency creates, and possibly the expediency
of limiting by public authority the extent of the issues.
The Committee, if appointed, might also take into its
consideration the expediency of there being adopted in
this country a measure analogous to that which prevails
in Hamburgh and Amsterdam, namely, making issues
upon deposits of precious metals. The next question which
might, I think, be the probable benefit that might accrue
from a paper currency being issued by an establishment
conducted by the officers of Government ; then also, whe-
ther some contract on the subject might not be formed With
the Bank of England ? Likewise, whether a seignorage
might not be charged? In short, there were seven or eight
great heads, any one or all of which might with perfect
propriety, and as I think with great advantage, rotor un-
der the consideration of such a Committee. I- have heard
something said about the present period of the Sessimbeing
unsuited to bringing forward a proposition of this nitirve ;
this I consider any thing but a valid objection. I have
ventured to make these observations in vindication of the
opinions which I have expressed. I am aware that it has
been, or probably that it will he, objected to the principles
which I Lave been recommending with reference to a paper
currency, that it frequently requires regulation. Surely it
would be foolish to dash away a watch merely because it
requires regulation. A paper currency I look upon as one
of the greatest of modern discoveries. Gold is the most
expensive, paper the cheapest, currency, which, under any

circumstances that lam aware of, cas be resorted to. Our
debt has been contracted in paper, and in paper it ought to
be paid. Mr. Fox said on this subject, that the
man who talked of a positive abstract remedy for a
difficulty, such as this—who talked of going to the
root without acknowledging any admixture of evil—
talked irrationally, and professed to cure a mortal
disease, without having recourse to those painful reme-
dies of which the most skilful are rarely independent. I
am the last Klan in the country who would hold to Parlia-
ment the language of menace—but I think it my duty to
remind the House of the causes which led to the French
Revolution—it was the amount of their debt contracted in
one currency and ultimately paid in another. Necker was
most anxious to remedy the evil—he saw the difficulties
with which the country had to contend, but he was unable
to carry the remedy into effect. Mirabeau offered to the
propositions of that Minister even• possible resistance-, and
the ultimate consequences were, that the King was brought
to the block, and the gentry and the nobility in a great
measure massacred, and altogether beggared. He turned
the screw arid he lifted the flood-gates—the land was de-
luged with blood, and the property of the country changed
hands. But when Mirtheau himself came into power he
adopted the very course which he had done all that he
could to prevent the Minister of the Crown from pursuing
—he paid the whole debt with amignats--lie paid that in
one currency which had been contracted in another. Mr.
Hume, who was on this subject but too true a prophet,
says—

" Our popular Government, perhaps, will render it dif-
ficult or dangerous for a Minister to venture on so despv_
rate an expedient as that of a voluntary bankruptcy; and
though the House of Lords be altogether composed of pro-
prietors of land, and the House of Commons chiefly, and
consequently neither of them can be supposed to have great
property is the funds, yet the connections of the Members
may be 83 great with the proprietors as to render them more
tenacious of public faith than prudence, policy or even
justice, strictly speaking, requires. And perhaps, too,
our foreign enemies may be so politic as to discover that
our safety lies in despair, and may uot, therefore, show the
danger open and barefaced till it be inevitable. The balance
of power in Europe our forefathers and we have deemed
too unequal to be preserved without our attention and as-
sistance ; but our children, weary of the struggle and
fettered by incumbrances, may sit down secure and see their
neighbours oppressed and conquered, thl at last they them-
selves and their creditors lie both at the mercy of some
foreign conqueror."
I hope this is too highly coloured ; but of this I feel
perfectly assured, that nothing can be more unjust than
to expect that, as I have already said, what has been
contracted in paper should be paid in gold. I shall now
move that a Select Committee be appointed to inquire
into the circulation of promissory notes below the value
of flee pounds, and to report their observations and opi-
nions to the ]louse with reference to the same, and also
to consider and report with reference to the expediency of
effecting any alteration in the laws affecting them.
Mr. LIDDELL said, that after the very able speech of
the Hon. Baronet, it would be necessary for him to trouble
the House only for a short time. The lion. Baronet had,
indeed, treated most fully upon every point of the important
question, and had elucidated all that he treated of, "Nullum
hit genus: quod non tetigit, nullum tetiget quod non
ornavit.!' Although he (Mr. L.) was aware that the ge-
neral question of the currency now brought before the
House was one of most complicated and extensive bear-
ings, requiring great practical experience fully to under-
stand, together with intimate knowledge of detail—to
neither of which be had any pretensions—yet he had en-
deavoured to profit by the arguments and writings of men
so distinguished for acuteness and ability, that he should
rest securely upon their authority, were it not that he saw
arrayed against them others of at least equal ability and
authority.—" Who shall decide when Doctors disagree?"
Where arguments are balanced we must appeal to practice
and experience—and he thought that it was impossible
to look with attention at the present state of this coun-
try—to reflect upon the general depression of prices which
weighed dawn all our Ino,t,
important interests in the mar-
kets, for every article of productive industry—without com-
ing to the conclusion, that it was not advisable or safe still
further to contract the currency of the country, or to de-
derive from the existing bpernise'efiti,;ts'wrriseth itnhdeuvsntroioivus and populous districts of the
circula-
tion of small Bank paper. He objected then to the mea-
sure proposed by the Right Hon. Gentleman as a partial
measure,founded upon an erroneous view of a great ques-
tien.n opposition to the opinion of the Hon. Baronet,
he admitted, that if Government was right in their prin •
ciple, that the proposed measure was obviously necessary ;
far if notes manufactured in Scotland were not restricted
from passing the borders, we should have our banking
establishments in the neighbourhood of Scotland transferred
to the Other side of the Tweed, from whence their notes
might be issued with equal facility as they are from New-
castle ; but if Government were wrong in their principle
the proposed measure must share in their error. He (Mr.
L.) 'had folloWed the Right Hon. Gentleman with the
greatest attention throughout the whole of his speech, and
certainly there were some parts which he heard with com-
fort and satisfaction; those parts, namely, where he
showed that the amount of the currency was not likely to
undergo any contraction from the meditated change, and
that no difficulty would be felt in supplying the vacuum
created by the notes withdrawing with a metallic circula-
tion. This he heard with pleasure, but still the House
was aware hoW much apprehension was felt in the country
upon the subject. Petitions had been poured in from al-