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

THE BANK CHARTER.

The order of the day for going into Committee on the
Bank Charter Act was then read, and the Speaker
having left the Chair, the House went into Committee,
Mr. Greene in the Chair.

Sir B. PEEL then rose for the purpose of moving
resolutions. He said—There must occasionally be some
questions of such vast and manifest importance, and
which prefer such a claim, or I should rather say, such
a demand, on the attention of a Legislature, that all
rhetorical proofs, all dilation on the value of the
subject, or injunctions of the duty of giving
it an attentive consideration, become superfluous
and needless. I shall, therefore, proceed at once to call
the attention of the Committe:t to a matter which enters
into every transaction of which money forms the basis ;
there is no contract public or private, no engagement
national or individual, the enterprise of commerce, pri-
vate trade, the arrangements to be made in all the -do-
mestic relations of society, the wages of labour, the
transactions of the highest amount as well as those of
the lowest, the payment of the National Debt, the pro-
vision for the national expenditure on the one hand, and
the command which the coin, of the smallest denomina-
tion, has over the necessaries of life—all these are
affected by the decision to which we may come on
the great question which I am about to sub-
mit to the consideration of the Committee. The
circumstances out of which the duty imposed on me
arises, are shortly these. In the year 1833 an Act of
Parliament was passed which continued to the Bank of
England certain privileges until the year 1855, and after
the year 1855 until Parliament should determine to
give one year's notice to the Bank of its intention to
revise the charter. Before, however, the expiration of
the full period of 21 years—before the arrival of that
term of 1855, there was reserved to Parliament the power,
after the lapse of ten years, by giving notice to the
Bank, of revising and reconsidering the charter.
That period will arrive in August, and it will be then
competent to the House, by notice to the Speaker, to
signify that within six months then following the House
will consider the charter of the Bank of England ; but
if this opportunity is permitted to go by, the charter
of the Bank, and all the privileges it confers,
will necessarily endure till 1855. In the present state
of this country—in the present state of the currency—
after the inquiries instituted—after public attention has
been called to the subject—her Majesty's Government
feel it to be their duty to avail themselves of the oppor-
tunity thus given to them by law, and to submit their
views to Parliament on the subject. They are of opi-
nion that inquiry has been exhausted—(Hear, hear)—
that all the information essential to a satisfactory judg-
ment has bees acquired, and they think they would be
abandoning their duty if they did not undertake maturely
to consider the subject, and to take upon themselves the
responsibility of submitting to Parliament at once,
without waiting for protracted inquiry, the measures
which in their opinion it is desirable to adopt.—(Hear,
hear.) Sir, I am perfectly satisfied the Members
of this House, rising superior to all party
considerati.ons and all private interests, will consider
it their duty to apply their deliberate and impartial con-
sideration to this great subject. I have that confidence
in the House of Commons, from past experience of their
superiority to mere party views or personal interests,
when matters of deep importance are under considera-
tion, and I feel convinced that will be the course they
will pursue on the present occasion. I ask them to-
night for no decision.—(Hear, hear.) In fact, I would
deprecate the delivery of any positive opinions
now. I ask them to listen to the proposal
I am about to make, to hear the evidence and
arguments I adduce, and to read and consider the resolu-
tions which I shall move in Committee pro forma, and,
having maturely deliberated on them, to come then to a
discussion, and pronounce their final judgment.—(Hear.)
I am not shaken in the confidence I have in the House, in
consequence of having seen publications inviting the atten-
dance of Members on the subject. I hold in my hand the
resolutions of a meeting of private country bankers,
held on the 17th of April last I find they have re-
solved that the refusal of the Government to give in-
formation on the subject of their measure concerning
banks of issue naturally leads to the conclusion of their
intention to prepare some measure affecting country
banks generally, and that this meeting considers
it' most probable it related to the local circulation of
country banks. Under these circumstances, it is stated to
be most desirable that all banks of issue, whether private
or joint-stock banks, should unite to prevent any altera-
tion in the local circulation of those banks, or in the
condition in which it is now placed by law. They
say that joint-stock banks and private bankers
should unite in opposing any such alteration.
Sir, I complain not of these resolutions—l complain not
of the inviting Members of Parliament to attend here to
consider the subject. But Ido hope that Members of
Parliament will resist the substance of those resolutions,
and will not come down here determined to oppose any
alteration before they consider the subject. I ask you to
consider the great pt inciples which an alteration in the
currency involves. I ask you, are you so satisfied with the
existing state of things—are you so convinced that it is
utterly impossible to suggest any alteration in the exist-
ing law, that you will come down here, before hearing
any discussion on this subject, prepared to offer an in-
superable obstacle, by previous concert and understand-
ing, to any alteration in the existing law ? I know that
to be impossible. I hold in my hand the evidence which
should make it impossible that any such previous com-
pact and understanding, if entered into, should he
acted uvo.t. Sir, my immediate proposition ap-
pears to relate to bank concerns, and in particular
to the issue of promissory notes. But, considering that
ten years have now elapsed since this subject was brough

under consid ration., I hope I shall be excused if Lta
not limit myself to a consideration of those Prine'rai
which, in a superficial view, appear to determine
issue of rromissory notes, I hope I shall be 21100.9;
go deeper into the principle-(Hear, hear)--41ho
governs this great matter. I cannot discuss here
principles on which we should establish an entise,,
meat to pay a certain definite value unless
are agreed upon the principle as to what constitutc.7l
measure of value in this country.-(Hear, hear.)
_litre
is the foundation of the whole subject. It is iraPes.'rer
to raise any superstructure, merely regarding the_..,,elor,
latien of paper credit and paper curl'iosi
unless we first consider the principle which detert°ll.
the value of that of which paper is the mere represei,.,
tive, and it is impossible that we can come to a con;
agreement as to the issue of paper unless the
agreed as to certain great principles relating t`,',Top,
measure of value and the medium of exchange.. op
Sir, I very much fear that there is not that con°
agreement as to this other and greater principeueg
which I allude. I am aTraid there is not an univ.a
agreement as to what is in this country the stancis'd
and what merely constitutes the measure' and
value. 1 invite discussion on that firstoble.
preliminary question, the foundation of all
I want to ask what is, by the law and practice 0f , dr
country, its measure of value ; what is that whie. 01l
termines all contrasts ? I strip this question (?.
merely technical phrases, I want to consider it lais •
popular point of view. The denomination of 'Sin •Of
)
pound; I will not talk of measures of value, I sPeak OD
.- what
that with which your are in the everyday.oceUr-wbst
of life perfectly familiar, and my first question is, und?
is a pound, and what is the engagement to pays 1:),.°01 to
and unless you are agreed upon that, it Is n'd is
attempt to legislate upon this subject.. If a Po°- exist
mere visionary fiction, a fiction which does n°' other
either in theory or value, in that case an 41
class of measures relating to paper currency
..01
be necessary. But if the word "pound," a coteio •
denomination of value, signifies something Inere„tisid
mere visionary fiction ;• if a pound mean a (111.,,fi
a"esst
the precious metals, of certain weight and certain nuni toy
if that be not the definition of a pound, another chtss," the
sures relating to paper currency will be requisite. °
whole foundation of my measures rests upon the aasuTrrdieg
tiop
that according to practice, according to law, ace" the
to the ancient monetary policy of this countrY' cer•
meaning. of a pound is neither more nor less than ait to
taro definite quantity of gold, with a mark uPtmeot
define its weight and fineness, and that the enPnbioi
to pay a pound means nothing, and can mean 13,°000
else than the promise to pay to the holder on ale)
a definite quantity of the precious metal.-(Hear,„a,
Therefore, I ask, sshat is the meaning of a Potsarf
cording to the ancient monetary policy of this e°7o;
The origin of the term was this :-In the reign of
Liam the Conqueror a pound of silver was the 139bt
account. The pound represented both the we'd
metal 'and the denomination of money. By stleee'so
debasements of the currency a great alteratiellf. the
made, not in the main, but in the intrinsic value °f
the
pound sterling ; and it was not until a late period of to
reign of Queen Elizabeth that silver, then beiulight
standard of value, received that determinate °il;
which it retained, without variation,with constant refuted
COD to
to alter it, until the year 1716, when gold was sult„t
the
for silver as the exclusive standard of value. thtd
standard of value observed up to the year 1716 ww.aost
fixed in 1567. In the year 1717 the value of the Viol
was determined to be 215., and for a certain Value
both gold and silver constituted the standard of bold
But in the year 1774, it was enacted that no debt s and
be discharged in silver fur more than 251'' decd
then, in some measure, gold became the nislt
of value, and continued so until the year stet'
when that fatal measure, the Bank Restrictioned
was passed-{Cheers)--and parties were permitt
issue paper at their discretion, not convertible int.,°.eo iii
That led not only to a new course of prarn, 0
monetary affairs, but to new theories and n°t`i,°-esel
to the standard of value.---(Cries of " Hear, -ti.6o'
From the year 1797 to 1810 the public mind was's-vest'
with these theories ; and it was not until the letters, bed
that men of sagacity, observing that the exchangeour
been for a considerable period unfavourable to this
try-more so than could be accounted for by
.05 f
called the balance of trade-invited the attention °
abd
Government and the Parliament to the sabieeitivestri
a Committee was appointed by this House to
,„'"n eote°
gate the matter. Various opinions were augutoir
by the persons examined • but it was generally „LK
tamed that the pound sterling meant a definite clun-ire'
of the precious metals, and that those persons w".,.-100
mised, in their issues of paper, to pay a pound stiti
were bound to pay that definite quantity of gloch
silver.-(Hear, hear.) That opinion was very 041;
contested, and the House of Commons was not very rind
ling to acquiesce in it. From 1797 up to tat.
(1810) the prevailing opinion of the Public ootl
that the opinion was a mere visionary speculaticu4r the
that something other than a particular weight fog'
precious metals must be understood by a pound sickbed
Mr. Horner, and those who agreed with him, Pu'',;"o t°,
their opinions ; but, Sir, I must do them the jus",,oso°,
say, that they did state what they meant by ;
sterling. They gave their definition; I'lJtie:se;
must also say has not been the case with gem,,etsn,
who have published pamphlets upon the Inu'obo
question of late years. They never tell 1111 beef)
they mean by a pound sterling.-(Hear, 00
One of them said, a pound may be defined to Wood
sense of value in reference to currency as C0I1? ost
with commodity."- (A laugh.) Now as that di' titer'
appear to be a very intelligible definition, another,‘ved of
who fancied that some better definition was ner,escs
a pound, than that it was " a sense of value in roe' 00
to currency as compared with commodity," gaveA the
definition. " The standard (said he) is a unit, at SCI'
numerical value of that unit is the interest of 331' u.(1./
at three per cent.-(Laughter)-that being
and that which being paid in a bank-note may be st)witli
money of account." I will only trouble the Houke shall
one more quotation : thelast definition with which I 00
trouble the House, of the standard of value as gloat
that period is this : " the standard is neither gel 00
silver, hut something set up by the ilnag`rLd is
to be regulated by public opinion"-(Laughter)-Thod&i
was supposed at that time that the doctrines prop ries,
by the Bullion Committee were visionary the°ooe'
which had never been acted on in the former r° es'
tary history of the country. This, however' 10°
not the case, as any one will perceive„r 031
will refer to the works of writers on the el.; PI
who. flourished before the year 1797. Mr. Loer,-,., so"
William Petty, all those who wrote before 17"" spot
who had never been familiar with an unconvertible Pe
currency, advocated the same principles that wer,ea so
cated by the Bullion Committee. Mr. Harris,, op°
officer of the Mint, , _who - wrote about
hundred years since, said-" All_ countries ofa
established a certain static if.weight and finen„eatsi,r;
their several species of c(!anses Ant England a -ijard
quantity of fine silver is appointed to be the stall 00
--he was writing at the time when sliveri;sosa
the standard in England--" and all payments 1:10
are regulated by the course of exchange, '„,;it o'
founded on the intrinsic value of the metal. and "slf
the name." Thus this gentleman, who wrote nes.„et'
hundred years ago, laid down the true principle re'ros'
ing the measure of value, as if in anticipation of tirt,iter:
troversies of the present day. He said, " We Ins) bre,*
if we please, our denomination of value ; we re°. 001°
public faith if we like, but foreigners yell
0,05'
ample allowances for whatever we may do in that thel
and however we may rob and cheat one another'd
will secure themselves, and make an advantage 011119'
distress by causing the exchanges to fifty0,1
us." That was written one hundred and acsotet"
ago, and in my opinion the passage I have 'ilcha"
contains the whole true doctrine of the stu tbess
Of value.-(Hear, hear.) I wish I could say But
elementary principles were generally accepted' end I
has been my duty to read different publicationstireso
am perfectly convinced that whilst there is an u°
event
discussion of this question, there is no age le
as- to what constitutes the standard of value:csritid
surely give proofs of their knowledge and s',", sod
when they publish octavo volumes.-(ge?"
laughter.) Here is a book published 3urJeol
mingham-(Loud laughter)-and dated the 25th °to Al
1844.-(Continued laughter.) I wish to do justiceboliol
parties, and therefore I say, that really cl,°, f°,t"
that in any other town than Birming°Tre;
might in vain look for such a publication...". 0';
laughter.) And further I will say, that
book was published I did not believe it vvas r 00°.
power of any one man to write such a quantitllotioa,
sense.-(Cheers, and great laughter.) The prod
Oft
is genuine.-(Laughter.) It is because such isirni.
sense as this is published, that I agied '-
anxious the different principles contend writer:
should be thoroughly tested end understood. The Os
of such books as this laugh at the netio°o biodi
we are to have the standard of value now which ieer°
three hundred years ago. They say the con 3
and mercantile transactions have so increased ijsaolida
what they were in the time of Elizabeth, that v'e„-csard,"-e
great want of knowledge in maintaining the sta." stips°
it is. Whyaltere vvould be just as much sense in.ipyon
that, with our increased population, our variousr' attend
and the many new circumstances which e Sir)
our position, that we now ought to i'svebeero.t
teen inches to a foot.-(Laughter and of tbl4o
There is no more reason why you should nottdo et
the pound should be the standard of value l 00
should say that a foot should be a foot and a bellea s( Shis
then it is said that it is a great injustice to , what,
Bank to issue gold at 31. 17s. lOid. an ounce. Dore
the meaning of their doing so ? Why, it is that
less than this, that it was the relation i'Lleelatla
bore to gold with respect to value. If a `Tiatlt
be made it will be found that the relation thee,
Sae
bears to silver is 15 and 2-13ths to I. )3°t't the 11
is said, why should not the Batik issue gold a„.,, eQuico.;
of 5/. the ounce-that is to say that 5/. should lie
lent to 3L175.100., but when you come to tell tee_„„iier t
that an ounce of gold represents 5/., the soir:„.
say he will not be bound by such a medium• ove"'lt.
ee a° the
raise the value of the sovereign to two or thr loin 0
shillings, but there will be no corresponding°';or differd
parts. The present market value of gold to S__ reign
very little now to what was established in treertainrog
George the Third. Silver is 59. Per °unesiiver tliffsveho
not ss. 2d., but the relative value of gold to
Those ad
very little from what it has been.
_onteed,.ato
contend for a relaxation of the currency! c nreeio.
rightly, that an abundance of .tue rgoll
metals, though it would not alter the value
would act in favour of the debtor. But I„add fr°,we
ldelp'ernocure inoe"wisee
o orf• toot.
gold, yet it would have an influence on yrvieeers,,
doubt looking at the increased supplyif they took .; a
a eelass"% f
pressure Russia
and
ot
current) altogether,her places,
they
would
contracts by adopting silver for our
it is most u° for
gold. The third objection is this_that
to serve of
article
to take so considerable an article as gold
it • also
the purposes of coin, because is
wets to se-e. that
one
commerce. And wise men write pamp _
.ero as
_g
we have taken gold as our COin, and bat's '6ll tutiala
mom of Talue, while and