The Sun.
London, England, 1844-12-25 00:00:00

141Ylt

CURRENCY OF SCOTLAND.

(Frotn the Edinburgh Evening PvAt and Scottish Record.)
Remarks on the Speeches made at the stated General
Meeting of Road Trustees, Commissioners of Sup-
ply, and Justices of the Peace for the county of
Mid-Lothian, held on Tuesday, the 19th inst., re-
garding the contemplated change by Government in
the Currency of Scotland.
After perusing these speeches, it is impossible to
refrain from expressing deep regret at the opinions
entertained by some of the members of that meeting,
which are evidently founded upon erroneous views,
misconceptions on various points connected with this
very important subject, and a total misapprehension of
the true and actual position of this country.
A Noble Viscount held, that "it was idle for that

meeting to talk of what measures might be in con-
templation," thereby, declaring, that at the moment he
had entirely forgot (for he is too high. minded a No-
bleman wilfully to misrepresent) that the Right Hon.
Baronet at the head of her Majesty's Government had
intimated in his place in the Ilouse of Commons, on
the 27th June last, "the intention of Government to
apply themselves, after friendly communications with
the parties interested in the banking establishments of
Scotland and Ireland, to frame and bring forward
measures for the regulation of the currency of these
kingdoms, similar to the measure now before the
House."

if such an intimation cannot be held as evidence of
what are the intentions of Government (taken in con-
nexion with the formerly declared sentiments of the
Premier, and the details of the measures passed for
the regulation of the currency in England), it seems
difficult to conceive in what less ambiguous language
the Government can convey an intimation of its con-
templated measures, or of the objects it has ultimately
in view. It would appear the Noble Viscount and
the Noble Baron entertain the opinion, that although
they see a giant flourishing his club, and placing him-
self in the attitude to strike his intended victim, it
would be much more magnanimous to await the blow
than either to parry it or to use means for averting it
entirely. Such a course, it is to be hoped, the people
of Scotland will not follow, but that they will heartily
co-operate with those who have expressed their alarms,
and their anxious desire that Government would let
the Scotch system and currency alone, and who have
by such a procedure truly estimated the notice given
by the Premier, and acted the fair and open part of
making him aware of the general sentiments of the
country, and that as early as possible, thereby to in-
duce him to reconsider the subject, and, if possible,
save Scotland from harsh and ruinous measures.
The Noble Viscount, whilst he admitted "the sta-
bility and success of the system of banking in Scot-
land and its great utility to the country," demurred
"to the statements that the system of cash credits
depended upon the issue of one pound notes, and that
their abolition would form an impediment to the sys-
tem of allowing interest on deposits." Now, the ad-
mission and the demurrer are so irreconcilable with
each other, that it is apprehended there exists some
error in the reporting—the more especially, when it
is known and recollected that the same parties who
have joined in his Lordship's admission are completely
at variance with him as to his demurrer, seeing that
such demurrer cannot be supported by, but is con-
trary to, all the evidence given before the Committees
of both Houses of Parliament, particularly in 18.16,
when, it was shown that the system and its utility
depended upon the continuance of issue of one pound
notes, "which, if annihilated, would not only prove a
complete alteration and breaking up of the system,
but likewise cause the withdrawal of cash credits and
force a diminution, if not total discontinuance, of in-
terest on deposited money"—a proposition for which
purpose, be it remarked, the public newspapers a short
time ago stated had already been mooted, although
successfully resisted by some of the banks.
The Noble Viscount, in continuation, informed the
meeting that some statements had been made else-
where, leading to the conclusion " that notes ought
not to be convertible ; again, there were others who
contended that although notes ought to be convertible,
still provided each bank has a total deposit to answer
any demands upon it, that this is quite equal to a
gold circulation in the country." Now here it is
quite evident his Lordship alludes to two very difs
ferent opinions. As to the first, it is notorious that
he will find few, if any advocates for it in Scotland ;
and with respect to the second, can there be anything
unsound in a circulation if the banks meet all the
legitimate demands made upon them, as they un-
questionably do ? What more can be required—
why insist that our garments should be covered with
gold when humbler and less costly vestments suit our
means and wishes—when we are willing to leave the
more expensive but not more useful apparel to others,
who assent to its introduction and to its use?
The Noble Viscount, however, proceeded to state,
that Scotland should have gold, as it might be re-
quired from various causes—to meet the drains aris-
ing through bad harvests, foreign wars, subsidies, and
speculations, when a drain of gold may take place—
these having oceurred, " and might occur again—and
that it was the duty of a wise Government to see that
the circulation of this kingdom was in such a state,
that when any emergency shall occur, we shall be
able to supply the deficiency caused by the outpour-
ing of the coin of the country ;"—and he emphatically
asks, " What is Scotland to do in such a case ? Could
she furnish her quota ?" No, says the Noble Lord,
" not Scotland, but the Bank of England, and the
people of England, would furnish the proportion ;"
and, then, he further puts the question, " IVas it fair
to ask England to bear the burden for us ?" which
expressions and queries were echoed by the Noble
Baron.
This declaration, these queries, and volunteered re-
plies, would lead very naturally to the belief that the
Bank of England, and the people of England are very
ill used indeed by the people of Scotland, who are thus
made to appear—the inference being unavoidable—as
a cunning, selfish, unjust, and oppressive race; but,
before such severe charges can he admitted, surely
they should be proved—and, therefore, let facts be exa-
mined so as to determine the point. First, then, as to
the means which Scotland uses for procuring grain
when a defective harvest occurs :—Her merchants,
like those in England, send out their orders to Dant-
zic, Petersburgh, Hamburgh, Odessa, &e., &c., for
shipments of wheat, &c. These shipments are effected
by the resident merchants at the different ports, who
buy pay
the grain and for it in the locl currency of
the country ; these merchants reimbursaing themselves
for the value of the cargoes by drawing ills payable
in London for their amount or cost. These bills ar
provided for and paid when due by the parties inter-e
ested in these cargoes, through their respective
bankers in Scotland, who, having available funds at
all times in the hands of their London correspondents,
ready not only for the demands of their customers
but for retiring their own various obligations, are
thus enabled to pay the bills drawn for the grain.
Now, in all these operations, is it not self-evident
that gold has not been employed, and is it not well
known that exactly ale milar procedure would, and
ac•nally does take pce, whether the grain abroad
hased. for and shipped to any place in
be' pui:
..I.:narkshire, in Middlesex, or
it is quite true that if a co
3Liaindc.Lasolitihreht, n
?:11
inments be made sirnultanne:
:d
be, a !ernieg of the ex-
6oludseirya btlheennu ntlhbee
effect
ucwhosiii
sro man
changes against Great Britain, because
y
extra bills drawn for the value of the cargoes mus„s
at one and the same time, be thrown into the market
or on the exchanges, and consequently affect the
course of exchange betwixt the places where they are
drawn and London. But as such transactions are
well known and their effect upon the exchanges an-
ticipated, it therefore naturally follows that those
persons, whose business it is to conduct finance
operations, watch events, and, foreseeing the more
than probable fluctuations in the exchanges, acquire
gold by converting the notes of the Bank of Eng-
land, which they possess, into that precious metal,
and shipping the gold off immediately to the Conti-
nent, avail themselves of the profit arising through
such finance operations.
From this explanation, it appears that the people
of Scotland do not lay any burden upon the people of
England, neither do they apply to the Bank of Eng-
land for gold, on account of their importations of
grain, and therefore the statements or assumptions,
that there was laid a burden upon the people of Eng-
land, or that there exists a necessity for their
furnishing any particular quota of gold (from
the circulation) for such a purpose, on account of
the people of Scotland is pure declamation, un-
supported by any proof. Still, with regard to
the finance operations above alluded to, and the pre-
sentation to the Bank of England of its own promis-
sory notes, to facilitate such operations, that proce-
dure is not only just and legal, but is in entire ac-
cordance with the covenant entered into betwixt that
establishment and the Government, for behoof of the
British public, by which covenant, on the one part,
it is stipulated that the Bank of England shall on
demand (and irrespective of the cause for such de-
mands), furnish gold or bullion (but equal in amount
only) to any of her notes presented for payment; and,
on the other part, and for such considerations, cer-
tain privileges tending to very beneficial pecuniary
results, were conferred by Government upon that
Corporation, so that, consequently, there is no ground
of complaint can he made for such demand, founded,
as is just shown, upon a provision framed by the wis-
dom of the Legislature.
That the arrangement just noticed has proved most
profitable to the Bank of England, is indisputable—
(look to its numerous heavy bonuses, and large divi-
dends during the last 40 years) , but, besides these
profits, consult the various returns made by it te the
different Parliamentary Committees of 1819,
1826, 1832, 1838, 1840, and 1841, and, at
a glance, it will be seen, that with few ex-
ceptions and these only very lately the de-
posits (public and private) in the hands of that
Bank (seeing they have at all times far exceeded the
amount or value of gold in the vaults) must be held