The Sun.
London, England, 1844-06-04 00:00:00

BANKING MEETING.

' ' ( Abridged from the Ayr Advertiser.)
A meeting of the Noblemen, Deputy-Lieutatants,
C:immissioners of Supply, &c., of the county, was held
in the Court-ho.iise, here, on'Friday last, for the purpose
of considering the resolutions, with respect to banking,
lately submitted to the House. of Commons by Sirßobert
Peel.

Present:—Earl of Eglinton and Winton; James Os-
wald, of Auchencruive, M.P.; James Ballantine, of
Castlehill ; Rigby Wason, of Corwar; J. D. Boswell, of
Garallan ; Henry M'Kerral, of Hillhouse ; W. G.
Campbell, of Fairfield ; James Heron, of Dalmore ;
Capt. Hay ; A. C. B. Craufurd. of Ardmillan ; John
Hamilton of Sundrum ; Hugh Miller, of Midton ; J. P.
Wilson, Of Polquhairn ; P. W. Kennedy, of Drummil-
lan; Robert Pettigrew, of Tershaw; George Inaggart,
Esq , Ayr; Hugh Cowan, Esq.. Ayr; W. Bnntine, Esq.,
Ayr; W. Brown, of Corphin; John Paul, Esq., Ayr;
George Taylor, Esq., Ayr; Bailie Stewart, Ayr; D.
Auld, Esq., Ayr; Provost Brown, Kilmarnock; Bailie
Moore, Newton; Bailie Smith, PrestAiok, &c.
On the motion of Mr.- OSWALD, the Earl of Eglinton
was called to the chair.

The Clerk hiving read the requisition.
The Earl of EGLINTON, on opening the business of
the day, said that the meeting had been called in conse-
quence of a requisition from the Committee—who were
requested, at last 30th of April meeting, to watch over
the proceedings of Government relative to this subject
—in order to give the county an opportunity of con-
sidering the resolutions lately proposed by Sir Robert
Peel in the House of Commons. A new principle in
banking concerns was sought to be established, and
should that principle be adopted in England, and the
Bill before the House be passed, there could not be a
doubt that its provisions would also be extended to
Scotland hr-reafier. Upon the point whether that prin-
ciple was good or not. he would not, in his place as
Chairman, express an opinion.
Mr. BALLANTINE said, on submitting the first resolu-
tion, he regretted that it lied fallen into the hands of one
so litt'e acquainted with the pro'bund question of cur-
rency ; but it really appeared to him that the principle
sought to be established was not a correet one. *He
could nOf conceive how it should ever be thought that
the issues ought to be regulated by the state of foreign
exchangea, and that the currency ought to control traffic,
whether manufacturing, agricultural, or commercial.
Currency should be the servant, not the master. There was
little opposition brought forward to Sir R. Pegs measure
in England: but the Scotch were deeply interested in main-
taining the present system. Scotland had now arrived at a
great degree of prosperity, for which they were cer-
tainly mainly indebted to the system upon which bank-
ing affairs were managed in this country. To the faci-
lities which the Scotch banks afforded for conducting
monetary affairs, to their prudence in not encouraging
speculation, and to the liberality which they extended to
the public, were to be mainly attributed the prosperity
which they had hitherto enjoyed, and which, if the pre-
sent system were let alone, they might hope to enjoy
hereafter. If the general principle of the new measure
were so thoroughly grounded on just and proper views,
as Sir Robert Peel seemed to think, it would soon
find its way to Scotland. He had already
said that part of our prosperity was attributable
to the facilities which the banks afforded us in manu-
facturing our goods and conducting our mercantile
affairs—not to cur industry, but to the privileges
which we enjoyed. It was well known what benefits we
derived from the issue of small notes. By the profit
which they derive, the banks were from the circulation
of small notes able to accommodate the public much
better than they could otherwise do : they were able to
establish agencies in remote agricultural and mining
districts, which, should the present system be abolished,
must inevitably be withdrawn, and the consequence to
the farmers and others in these districts would be ex-
tremely injurious. Mr. Ballantine concluded by reading
the first resolution.
Mr. ()swan' seconded it. The reso:utioas of Sir R.
Peel were based upon a new principle, not hitherto acted
on, and he thought the county did well in protesting
winst their adoption. If they allowed them to pass in
silence they would be considered as concurring in them.
He was sure that if they were once passed in England
they would very soon be brought to Scotland. If he
attempted to effect this at once, however, he might meet
with great opposition—as he had formerly found to his
coat—but if it were once carried in England, its intro-
duction into Scotland would be a comparatively easy
matter.
Mr. TAYLOR stated, as a proof that the measure was
intended also for Scotland, that a bank which had been
started in Glasgow previous to the introduction of this
measure, and who were prepared for issuing their notes,
had received an intimation that they would not be allowed
to do so. The same thing had also taken place in re-
ference to a bank in Aberdeen.
This resolution was passed unanimously.
Mr. Bosweer. proposed the second resolution, which,
he said, so completely comprehended all that was ne-
cessary on the subject, that it was not in his power to
state anything further. Every one knew the benefit
which had been derived by the circulation of
small notes, but if this measure was carried, the
Bank of England would have to circulate paper or
sovereigns to the amount of three millions, for which
the people must pay—as any one knew that the banks
would net.. From 1836 to 1841, although a considerable
number of new banks had been started, the circulation
was scarcely increased, so that the periods of depression
that had occurred during that time could not be at-
tributed to over-issuing—in fact it was impossale from
the very system en which they were conducted, that an over,
issue could tare place. When a person became possessed
of wL, he pu: it into a bank for safety, and also to obtein
interest up 'n it. He might withdraw it, but it would
only be that it might again be consigned lute the same
or another bank ; so that the circulation must be kept at
the lowest point.
Tile second resolution was seconded by Mr. ll.extuross,
of Sundrum.

Mr. INMERBAL briefly moved the adoption of the tl.ird
resolution, and was seconded by Provost MILLF:II.
Mr. WasoN, of Corwar, moved the last resolution. He
had been in London when the resolutions were proposed;
and the first questien asked was—" How will they be
received in sseotland ?" It was answered that the
"Scotch banks would be in favour of it, and that they
would lead the people." He thought, however, that a
distinction should be drawn between the people and the
banks. These resoltitions were expressly framed with
the view of keeping quiet that spirit which a few years
ago had made such a stand against a similar move-
ment. In 1826 it had been proposed to prevent the
Scotch banks from issuitbee their own notes for a
less amount than 51.: the letters of Malagrowther
had, however, put a stop to any such intention, and
the then Premier was met with such a storm of op-
position
that he was perfectly unable to carry his
measure. In attempting a second time to carry such
a project, Sir Robert Peel knew that it would be useless
to propose it in the same open manner ; but that it was
his ultimate object to extend the system to Scotland was
beyond a doubt. If the measure passed—of which he
thought there could not be a doubt—the present banks
in Scotland would have a monopoly; and this was a very
sufficient reason why Government were in favour of it.
Monopolies, however, generally required some one to
pay for keeping them up, and it would be found that the
public in this instance would be the payers. The neces-
sary consequence of a suppression of any future banks
of issue would be that the present banks would obtain all
the benefit of cur increasing commerce and manufac-
tures ; their circulation would be augmented, and thus a
circumstance, which, under a different system would
have induced other parties to enter the field of opposi-
tion, and afford the public increased accommodation at
a cheaper rate, will, under the proposed plan, compel the
public to pay for giving a monopoly to the banks already
established. In every district these large banks had
their agencies; and on epplieation these agents had re-
ceived instructions from their principals-- keep quiet."
They had received a monopoly, although it might only
be for a short time; and they, uf.er reviea mg the
matter, had considered it their interest to allow the
measure to pass in silence. But how would
the establishment of such a System affect the
agricultural districts ? What necessity had been
shown for changing the system ? Were the Scotch
people in favour of a change—were they not, on the
contrary, well satisfied with the present system ?
Were they to call a meeting of the people throughout
Scotland, they would find that the people would say—
" We are quite content with the prevent system."' He
was afraid that the party who proposed this measure,
and who professed themselves opposed to uncalled for
changes, were in this case making a change for chang-
ing sake. The effects of Sir Robert Peel's change would
meet them every hour in the day. Every one was in-
terested in this question—for every one was interested
when he had to pay out money. The loeul agencies in
reinote districts would be withdrawn, as the banks
would be deprived of the profit which they had received
ft om 'he issue of one pound notes; and thus a great de-
-1 eree it inconvenience would be felt by the inhabitants
lin these districts. Gentlemen carrying on agricultural
imprevernents would experence its effects. At. present,
thee could draw on the bunking agent in their locality
forin° ley to pay their labourers; but if this aceom-
esodatitia were done away with, he was sine that there
would be a great diminution in the amount of egricul-
tuna labour.
Mr. TAYLOR, in seconding the adoption of the reso-
lution, remarked that the exchanges arose from the im_
ports exceeding the exports, or vice versa—the balance
of payment being gold. It was not in the power a/ anu
Government to change the balance of paynent without
producing paralysation of trade, and great confusion
amongst mercantile transactions enerally throughout
the country. To any attempt to effect a diminution of the
hog
issues a.s w a.one to be attributed t e depression of track
On the suggestion of Lord Eglinton, it was agreed
that the resolutions should be published, and copies sent
to the different conveners of the counties and ifluential
persons throughout Scotland, and to the Members of both
Houses of Parliament connected with the kingdom.
Thanks were passed to the Earl of Eglinton, on the
motion of Mr. It. Wason.

LUNACY.—An account of all moneys received -Ur
licenses, and of all moneys received and paid out of the
Consolidated Fund, by the clerk and treasurer of the
Metropolitan Commission in Lunacy, from the Ist day
of August, 1842, to the Ist day of August, 1843, has been
presented to Parliament, pursuant to the provisions ft f
the Act in such case made and provided. Wo find that
the total amount received by the Commission during the
year iikove-mentioned by orders from the Treasury, &c.,
was 7,5251., and the total amount of sums disbursed
9,4981., leaving a balance duo to the Commission on the
year's account amounting to the large sum of 1,973/. Of
tho amount disbursed, the sum of 2,761 L was appropri-
ated to the fees of logal and medical commissioners
through England and \Vales. The cash received by the
Commission for licenses amounted to the sum of 942/.
The account is signed by Lord Ashley, Messrs. J. R.
Gower, F. Barlow, Bissett Hawkins, J. R. Hume, J.
Bright, and 13. W. Proctor.