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

than the Directors of the Bank have shown throughout '
the whole course of their negotiations with the Govern-
ment. They have reconciled two duties, their duty as the
managers of that great establishment, and the duty they
owe the proprietors. Their chief object has been to
promote the public interest ; they were unwilling to
stipulate for any one exclusive privilege ; and, in fact,
their conduct throughout has been marked with great
liberality and a desire to promote the public interests.
We propose that the sum the Bank now pays the Go-
vernment for their privileges, under the Act of 1833,
shall continue the same, namely, 180,0001. I believe the
total amount of nett profit the Bank derives from
tha issue of notes does not exceed 100,000/. Now,
on the other hand, the Government is obliged
to pay the Bank 280,0004 a year for the management of
the public debt. From that 280,0001. we shall continue
to deduct 180,0001., which will so far diminish the pay-
ment made by the Bank to the Government. Now as to
the period of the duration of the Bank charter. We
pr pose to continue the charter for the same term as the
present one ; but we intend to vary from it in the con-
ditions with respect to its revision. On its present
conditions the charter would continue for twenty-one
years, but a power is given to Parliament to
revise it at the end of ten years. If Parliament, however,
should suffer that period to pass without giving it that
revision, it did not possess the power of going into it
again till the lapse of another ten years. We propose
that, after the lapse of the first ten years, the Parliament
shall have the power of revising it in any one of the suc-
ceeding ten years, on giving one year's notice of its in-
tention to do so. Now, with respect to other
banks, I trust that it will be considered
that we are dealing justly. I wish them
to consider that they are to be placed on the same foot-
ing as the Bank of England. I wish them to consider
this as a notice and a long notice, that the Parliament
has a right to deal with the private banks, and with
banks of issue, as it has done with the Bank of England.
I wish it to be considered that from motives of reluct-
ance to interfere with existing interests and from anxiety
not to raise an alarm, or to restrict accommodation, we
do not put any restriction in existing banks of issue, but
it must be distinctly understood that Parliament has an
undoubted right to reconsider this question, and, if it
should so please, to establish one central bank of issue,
and annihilate all present banks of issue. I now come
to the case of the Bank of Ireland. I wish to reserve
the consideration of the state of the Bank of Ireland
until we shall have established sound principles
in England—till we have had opportunity of
holding personal communications with those im-
mediately interested in the currency of that country
I am, therefore, not desirous of including in the present
Bill any legislative enactment with respect to Scotland or
Ireland, except one preventing the establishment of any
new joint-stock banks, or banks of issue, unless after a
process of registration, subscription to certain rules, and
such rules as the Government may think it fit to impose.
The case of Ireland is a peculiar one. The privileges of
the Bank of Ireland differ, in some respects, from the
Bank of England. It would require mature considera-
tion, and that consideration we are prepared to give it if
the House will allow us the opportunity of that commu-
nication with Ireland and Scotland which we think is
due to both countries. I have not said a word here of
small notes. Let us establish these principles. I do
not feel disposed to encumber this question with un-
necessary difficulty, or bring round my head the storm
that I should raise.—(Hear, hear.) This is the way to
succeed in legislation—not to provoke any opposition
which you are not prepared to overcome. I cannot apolo-
gise to the House for the length to which I have engaged
its attention. The principles I have stated, I believe, are
sound, and I wished to make myself intelligible tc, all.
The House, therefore, will not require me to make any
apology. I may now place before it a statement, in the
way of recapitulation, of my proposal. It is the reten-
tion by the Bank of England of its present privileges,
but restricting its privilege of issue to a circle around the
metropolis, of which 65 miles shall be its radius. From
the Bank of England we shall require a complete separa-
tion of accounts, and a separation of departments ; one
for banking, and another for issue. The business of the
banking department to be governed en perfectly different
principles from those which regulate the issue, there
being no power to issue a single note in the banking
department, except it shall have been received from the
issue department. We propose that an issue shall take
place of 14,000,000/. upon securities, and the remainder
in bullion ; the Bank being at likely to claim from the
issuing department as many notes above 14,000,000/. as
they may require, the public having a right to receive
notes in exchange for its gold, and to demand gold in
exchange for its notes. We propose to compel a weekly
publication by the Bank of all its transactions, so that
every dealer will be able to regulate his business by a
knowledge of the exact state of the issue department of
the Bank. We propose that no new bank of issue shall
be formed in any part of the United Kingdom, and that
no joint-stock bank shall hereafter be established except
en a distinct understanding ; the subscription to contain
conditions and regulations for audit of their accounts.
These regulations are not meant as an interference with
the concerns of such establishments, but for insuring I
all the security that legislation can ensure to the 1
country. Then we propose that existing banks being 1
now banks of issue, shall continue to have that liberty,
provided in no case their issue shall exceed a certain
definite amount. And we propose that no bank of issue
having ceased to exercise its privilege of issuing notes
shall afterwards resume it. We propose, that in cases of
all banks there shall be a complete and fair publication of
the names of all partners. We propose, that in cases of
banks of issue, and joint-stock banks, and private
banks, which shall choose to retain and exercise its pri-
vileges—in the case of those banks, as in the case of the
Bank of England, we propose a weekly publication of
the amount of issues. Thus the Bank of England will
know the extent of the issues of other banks, and it will
by this regulation be enabled to contract the
currency, if contraction be required, at an early
period. And there need not be much alarm about
this contraction, for, till they shall see means by which
they may extend their issues to the maximum amount,
there is any easy mode by which they can command the
amount of issues in addition to the present amount,
namely, by the sale of securities, or the application to
the Bank of England for notes, or by exchanging these
notes for securities or gold. I believe I have now com-
pleted the task I have undertaken. I have given a full
outline of the measure which her Majesty's Government
will propose, of the principles upon which it is founded,
of the limits beyond which we think it would
be unwise to interfere with existing interests.
—(Hear.) I ask for no vote or opinion to-night.
I hope there will be no expression of individual opinion
—(Hear, hear)—but that the House and individual
Members will maturely consider the whole of this great
and comprehensive measure in all its parts and probable
bearings on the country before pronouncing an opinion
either in its favour or against it. In the course of to-
morrow I will unreservely lay before the House the
etterms
r m proceeded,
on
which and
we
correspondence which has taken place between the Go-
vernment and the Bank of England, in which will be
found a more full development of the principles on which
haveowfeth
a havem o more completeuresecured
the
explanationconcurrence
of the Bank. The possession of that document is of
great importance to the formation of a sound opinion.—
(Hear, hear.) I cannot deny that it will be to me per-
sonally a source of gratification if, after the lapse of
now a quarter of a century—(Hear, hear)—after pro-
posing, in 1819, that great measure which has, I trust, for
ever abolished the mischief of inconvertible paper—
(C heers) —and placed the currency of the country on a firm
basis—l cannot deny, I say, that it will be personally most
gratifying to me, if I,
as the organ of the Government,
shall be successful in inducing the House to assent to
this measure, which is but the complement of that other
measure, and which is calculated to fortify and give an
assurance of stability to that former one of 1819 by pre-
venting fluctuations in the medium of exchange.—
(Hear, hear.) But my gratification will be of a higher
and purer nature than any I derive from any satisfaction
of mere personal vanity, when I contemplate the suf-
ferings this country has endured within the last
twenty years at the periods of 1826, 1834, and 1839
—when I see the danger incurred, the results
which have been produced by the Bank of Eng-
land having recourse to foreign establishments—
(Hear, hear)—when I see the fluctuations of the
currency, the ruin of private fortunes—(Hear, hear)—
the defeat of all calculations of commercial enterprise—
when I look back to all those things—when I look to
details—the failure of joint-stock banks—to the amount
of dividends which have been paid; but when I know
that the amount of dividends is no test of the circu-
lation—when I see the sufferings and anxieties of
the humbler classes of society—(Hear, hear)—when
I see the amount of assets—when, in the case of joint-
stock banks, though we may know that they are ulti-
mately solvent, we see the long course and tedious pro-
cess which creditors have to go through, before they can
recover what is due to them—yet, when I see the
names of original proprietors having 101. or 20/. shares,
and that persons in a humble situation of life are
induced by flattering prospectuses to enter into specu-
lations, and looking to the ruin brought upon them—
I cannot now enter into the details—but when I look to
those things—then, indeed, I shall be gratified if I can
prevail on the House now to adopt a measure which
will give value and just confidence to the medium of
exchange—which shall diminish the inducements to
fraudulent speculations, and gambling, and shall insure
its just rewards, and just profits, to commercial enter-
prise, conducted with perfect honesty, and controlled by
steady prudence.—(The Right Hon. Gentleman sat
down amidst loud cheers, having occupied three hours in
the delivery of his speech.)
Lord JOHN RUSSELL said, he presumed the reso-
lutions would be printed with the correspondence, so
that the House might have the whole plan before it. He
supposed the Right Hon. Gentleman would give ample
time for considering the subject ?
Sir ROBERT PEEL said he was anxious to have the
subject fully understood, because the more it was under-
stood, the more he hoped it would be supported. He
should therefore be willing to allow ample time for con-
sideration.
Mr. HUME wished to know whether the Right Hon.
Gentleman would give a return of the number and
names of all the banks that had failed ?
Sir ROBERT PEEL said he had no objection to
give a return of the names of all the joint-stock banks
which had failed, and he would also give a return of the
• number of private banks, but he would not give their

names.
Mr. HUME asked whether he would give a return of
of the loss to the depositors ?
Sir R. PEEL said that if the Hon. Gentleman would
put his question in a proper shape he would be ready on
another occasion to give an answer.
Dr. BOWRING said it would bo important to know
the loss to the public.
Mr. BULLER wished to know whether it would be
possible for the Right Hon. Gentleman, in that return, to
inform the House what amount of notes were outstami.
ing for each bank at the time of its failure.
Sir R. PEEL replied in the affirmative.
Mr. GIPORNE wished to know whether, ifle. hod a