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

~,r ~. ...°` 'Y4~

most all the manufacturing districts, praying for a repeal
of the Act which was now to he enforced, and he wished
to express his conviction that it was not merely from the
change in the course of next year that he apprehended diffi-
culty, but that the very expectation of the measure had al-
ready produced evil, had pressed like a dead weight upon
the currency, and had a most injurious effect upon prices,
as well as impeded all these transactions in commerce
which contribute so materially to -the benefit of civilized
society. Much had been said in the course of the
evening upon the subject of taxation--and it is pretty
generally. admitted, that high taxation cannot be consistent
with low prices—that we are unable to support the taxa-
tion of the paper standard with the prices of the metallic
standard. The Non. Member for Colchester, at an earlier
period of the evening, called upon Government to reduce
taxation by an effectual economy in our expenditure; but
the nation has unhappily contracted a debt of eight hundred
millions, of which the interest must be paid by taxation ;
and if our fleets and armies were reduced to their state
.before the war—if pensions and sinecures were abolished
—and if his Majesty's Ministers sat upon that bench and
served their country for nothing, we should still be
burthened with a heavy taxation, and the more prices were
lowered the more oppressive would that taxaticn be ex-
perienced. Therefore, from his own argument, he (Mr.
L.), hoped for the vote of that Hon. Member. He (Mr.
L.) had said, that it would not be necessary for him to
trouble the House at any great length—but as be repre-
sented a county which would be most exposed to in-
convenience, and which, joining to Scotland, would
most feel the privations and anomalies of this proposed
measure, by witnessing its near neighbours in the en-
joyment of those advantages which were denied to
that country—he came forward upon a principle of
public duty to second the amendment, though with
reluctance to oppose his Majesty's Government. He
wished to go into a Committee, in order that the
question might be fully considered ; for before this
change is made, it ought to be satisfactorily proved imprac-
ticable that a paper currency can exist under such regu-
lations as shall give the public all the convenience of such
currency with the security of a metallic currency. In this
impracticability he did not believe—he did believe that re-
gulation might be adopted to this effect ; and he therefore
hoped the House would accede to the proposition of the
Hen. Baronet. 'He again begged to disclaim any unne-
cessary opposition to his Majesty's Government ; and, as he
did not. think it becoming in him to enter into great details
upon such a subject as the present, in the presence of those
whose long experience and great abilities entitled them so
much more to the consideration of the House, he should
conclude by seconding the amendment of the Hon. Baronet.
Mr. S. O'BRIEN considered that a paper currency was
not only the cheapest. but in many points of view the best,
that a country could have.
Mr. F. LEWIS thought the Hon. Baronet ought at
once to have avowed that he desired the country should be
laid under the evils of a depieciated currency. That was
the only conclusion derivable from his speech, and yet it
would be rather extraordinary, after the frequent delibera-
tions and decisions of Parliament on the subject, to come
forward now with a proposition suddenly to undo all that
which, with so much distress and difficulty, had been
effected. Over and over again the House had decided that
it was a proposition which ought not for a moment to be
admitted. The country was at length approaching to the
state=-after suffering severely for that advantage to the
State, in which it was antecedently to the ever-to-be-
lamented Bank Restriction Act of 1797. How could
the House forget—what the Hon. Baronet had omitted to
state—the sufferings which the country then underwent,
and the commercial intoxication rimier which it suf-
fered from 1797 till ISIS. lle never could admit that it
was expedient to change the currency according to the re-
commendation of the Hon. Baronet, when he recollected
the frequent pledges given by the House, that in six months
after the termination of the war a metallic currency should
be restored, and afterwards preserved. It would be one of
the grossest breaches of faith into which, tinder any cir-
cumstances, the eountry could ever be betrayed. He had
listened to the Hon. Baronet with much pleasure, though
he was far from assenting to the doctrines which it was
his object to establish, for his settled conviction was, that
at this time of day it would be most dangerous to tamper
with an advanced standard of currency. The Hon. Bart,
had quoted several high tiethorities—Hume, Locke, and
others—to whom no one would be disposed to deny every
possible respect—but, in hi 3 apprehension, they did not
speak in the sense in which the Right Hon. Baronet con-
ceived. The House should bear in mind that the Act for
withdrawing small notes from circulation in England was
passed in the painful remembrance of the crisis of 1925.
That pressure was occasioned by an over circulation of
paper beyond the wants of the country. The natural re-
medy against the occurrence of a similar misfortune consisted
in a judicious limitation of the power of circulating small
notes. It was wisdom to attempt to go back to the point
in which we stood previous to the Bank restriction in 1797,
and to limit the amount of the one pound note circula-
tion. He did not speak this with a view to diminish the
confidence to be reposed in the stability of the country
bankers, but it would be recollected that 19 out of 100 of
the country hanks stopped payment in the late panic. The
panic spread most rapidly among the poorer and more igno-
rant clasees, who were generally the holders of the one
pound notes. The fact was, the country bankers would be
themselves safer with a circulation of five pound notes,
which, of course came into the hands of persons less likely
.to be under the influence of an unfounded panic. By per-
severing in the measure now complained of the House at
once diminished the danger, and increased the security.
What, he asked, would have been the situation of the
Bank of England, if in 1825 it had had a one pound note
circulation of its own? When the puffin took place, it re-
, issued its one pound notes to a certain extent—a measure
attended with the most favourable results. The panic had
not spread to the Bank of England, which he might be
allowed to say, conducted itself nobly on the occasion in
question. Was there any less danger to be apprehended
from carrying into effect the Small Notes Act? lie main-
tained that there was no ground for any apprehension of
this kind. The Bank of England undertook voluntarily to
withdraw its 11. notes from circulation, and it did so to
an amount much greater than that of all the small notes of
the Country Bankers. In fact, the Bank withdrew above
7,000,000 of I/. notes from circulation. Did this do
eny harm or create any alarm, or excite any complaint in
the Metropolis ? He answered, no. The Hon. Baronet
had exaggerated the supposed danger attendant upon the
withdrawal of the small note circulation. Be (Mr. F.
Lewis) asked what reasons was there for any one to suspect
that the withdrawing of 1/. notes was likely to create too
great a vacuum in the currency. If it could be proved
that 4,000,000 of 1/. notes being withdrawn from circu-
lation, 4,000,000 of sovereigns would not be put in circu-
lation in their place, the individual proving this fact might
be said to make an impression on the present question.
But be (Mr. F. Lewis) contended that the withdrawal of
small notes would be so followed wi::1 a substitutions of a
metallic-currency—in a word, that the withdrawal of four
millions of I/. notes would be followed by the issue of four
millions of sovereigns from the coffers of the Bank. It mat-
tered not whether these four millions were in the coffers of
the Bank, or in those of the Country Bankers. Besides,
he had no doubt, that in proportion as the Country Bankers
diminished their 1/., they would increase their Si. circu-
lation. It was supposed that the Act provided that no
more small notes should be circulated after the sth of April,
1829 ; but thie was not so. The Act merely prohibited
the re-issuing of 1/. notes after that period. Thus no
shock or sudden convulsion could ensue from carrying the
measure into effect. Was there ever, he asked, a moment
when such a Bill could be more conveniently carried into
effect than now? When consist four millions be better
spared from the circulation (supposing it to be entirely
withdrawn, and not replaced) than at present? Let no
maxi be deluded by the supposed advantages to be derived
from a depreciation of the currency—a depreciation which,
if once begun, we know not where it would stop. The
greatest disturbances had been invariably occasioned in this
country by 'tampering with the currency. The Hon.
Member 'concluded by expressing his opinion, that if the
House were disposed to act wisely, it would persevere
steadily and steadfastly-in carrying into effect a measure to
which only it could look with confidence for permanent
security.
Mr. MABERI.Y considered there had been no case to
justify the Committee in intethring with the circulating
medium of Scotland, the adjoining counties to which had
felt the benefit of that circulating medium to a great ex-
tent, aid had materially benefited by the system. If, there-
I fore, a Bill were brought in to restrains the circulating one-
' dium of Scotland, it would be a Bill to distress the neigh-
' booting counties, and he contended that if such Bill passed
into a law, it would be highly objectionable, and injurious to
that part of England which bordered on Scotland ; he con-
sidered there was no kind of reason for such legislation. It
was unnecessary for bins to offer any defence of the Banking
system of England, the nature of which had been ably
stated by the Hon. Baronet. He concurred in every word
the Hon. Baronet had uttered, and would therefore support
his amendment.

Mr. BARING said, that already many discussions had
been had on this very extensive and important question of
the currency generally. It was in their recollection, that
the charter of the Bank of England would in the course of a
very few years expire. In the interim it became the duty
of every Member of Parliament to deliberate and sharpen
his intellect to diic9ver if there Ivere any better system,