The Sun.
London, England, 1819-05-26 00:00:00

OCCUPATION OF PARGA.

Sir C. MONCK wished to know what course was to be
taken as to the business of the night. If he lost that, veiling
for a motion of hiS (respecting the cession of Parga to the
Turks.) 'which stood, for this night, he, should Dot be able to.
bring it on till thiS day fortnight, unless the Noblc Lord
(Castlereagh) would at him to have precedepce to-morrow.
His,His-motion was one which wonld least bear-delay
Lord CASTI.EREM II said, lie should have no objection
to the Holioor'alile Baronet's motion coming on to-mori•os,
though if was dunhful whether the [Rinse would .be,inclined,
to go into a discussion after two late nieits.
After a few words from. Sir C. Nlinick, Mr. Tierney, and Lord
Castlereagh, the notice was fixed for, to-morrow.
RESUMPTION OF CASH PAYMENTS.
The House having resolved itself into the Com-
mittee,

tion.

Mt. Alderman IIEYGATE, who was in posfes-
&ion of the House on the prect-ding night, when
the adjournmeut was inured, resumed the discus-
sion. No man could more lainent the state of our
currency than he did, but the remedy suggested
in the Report of the Committee was that of which
he could not approve. Ile went ov,r the history
of the Bank Restriction Act—traced its effects up
to the present' period, and contended that Bank
notes were not no,v, nor had they ever been, de-
pr,:ciated..l If the Resolutitins byfore the [loose
were cartied, it would go to contract our Cur-
rency, and this would produce great mercantile
trIOMITHSSMCIII and distress ; for he contended,
thai in the present situation of the country, the
same quantity of circ‘dating medium could nitt by
possibility serve to transact the business of. the
country Khich teas found sufficient in 1793. The
zr,tements which the Right lion. Gentleman
(Mr.. Peel) had made last night in opposition to
this assertion was.fallacious, as be bad left out
of his consideratiout the issues of the country
Banks, which had 'neatly increased bettveen•the
years 1793 and 1809. By some it was argued
Oat pod bring now three per cent.. above the
price of paper, all that was wanted was a reduc-

flop ot three per cent. on the l,oes of paper to
bring every thing eight. Never was any orpiment
more fallacious. \This he could show by A refer-
ence to tarts. The Bank,.in Novemb,r 1817, had
notes it, cirrola, ion amounting to 29,541,0001.
Since that period their amount had been diminished
bsr 3.000,0001: and the price of -gold, instead of
billing tel that redocti.m, had become consi‘er-
..ahly_higber than-it _was at that time. He was of
opinion, that every argument founded on the
price of gold, as analogous to the value of pa-
per, fell entirely to the ground. He therefore
thought it would he most impolitic to regulate
the issues of the Wolk, by the price of gold at all
times. He refereed to the history of the calami-
tous year 1816, to show 'the misery and niischief
.which most result from a sudden contraction of
The circulating mediom. He for one should be
glad if gold could he found to supply the place
of paper, •bot • from as premature reduction or the
number of Bank notes, he anticipated a repetition
.of Ana diStleSS' of the year 1816. In the view
which be took of the effects of a.ditniputi,yo Of
is,sti,;l; of the Bank- lie, was borne out by the
evidence , of Mr. A. Baring, p'art of Which .he
read to the House. Under the most favourable
en cum., aocesit Ns-fluid cause great etnharrassptent,
Litt supposing the eosoing harvest to prove un-
favourable, foreign •governments to lie still tie-
goeiating loans, and the exchanges unfavourable
to this country, he was of opinion such a thlt•e-
-s tire would produce calamity exceeding- all that
had hitherto been known.. 'l'hose .00ly would
profit by it who had fixed incomes, and these
would profit in the, increased value of those in-
comes at the expence of the productive labourer.
He proceeded at great length to show the evils
which would reselt fIOM the proposed change.—
ne.contended the sitsaation of the country now,
was very different from what it had been at those
periods referred to by the Right' Him. Gentleman,
fOr then- we had not. a debt of 845,000,0001..n0r
a revenue of 5.4,000,0001. This enormous sum
did not think it would be possible to raise it
!the plan in contemplation were cat riga ioto effect-,
which he was confident would have the effect of
throwing the poor out of employment and of in-
creasing the Poor's Rates. Much mischief had
already-been done by•the agitation of this noes
He called upon the House to look
,at the
situation of the country now, and compare
with that ini which it was found at the com-
mencement. of the. present Session- -Then pub-
lic credit •waa high, and commerce flourished ;
but from the moment the Secret Committee
was appointed, nothing had' been known but
stagnation and distress. This too, he tv,..ulti ob
serve, was
,not confined to the city-of London.
The evil extended to the remotest poets of the
country. This he knew wool] torniso au argu-
ment- for going on. suffered so mush al-
ready, it would be said we ought to be content to
endure a .little more to obtain the great good de-
sired. lie should be content to do so, if he did
not feet that it Was not a little more that would
do, and was convinced, that if this measure floss-
ed, gr.eater distress must be expected in tl:e en-
suing Sum Mer and Autumn than had yet be, tt ex-
perienced. Unlesi it were modified, he was err-
lain that no landlord would be able to get hii
, .
rent, and the. greatest calamities would fill on
the country. lie notieed the, arguments of other
HOn—Mrtubers., and contended many of rtieoi
were- fallacious in the extreme. The , Bank of
England, i,t the paper which had been laid before
the House, interfered wilt the Government in a
way which lie could not approve, but ion he
thought this measure would subit•ct that hotly in
hardlthips to' which, they ought not, to be exposed.
He, boaever, thought the plan of the Committee,
would give them a 'controlling pywer over the'
circulating medium which no .private company
ought to possess. More time freight to be allowed
the Bank to prepare for paying in bullion thin it•
waa'now proposed should be given, and he- could
only find one recommendation, in the present
plan that was much, calculated upon. This
was, that it gave the public additional secu-
•rity that-cash payments should be resnmed at
the period now to be fixed upon. He- was,
however, of opinion, that without such seen-
rity they might be satisfied the Bank would
comply with what they knew to he tile will of
Ministers rind-of that House. They ought then
to place that confidence in them now which their
ancestors had always reposed in the Bank, and
which the Bank had never forfeited. It it could
he proved that they were unworthy of such con-
fidence, their charter. ought to he abrogated, And
a new Bank established, on which they could More
securely depend. He thought the public ought
'to be left to pay the interest of their debt, which
they were willing to meet under the present sys-
tem. The Bank, he believed, would have resum-
eil payments before, had they-been paid what
they hail advanced fOr the service of the State.
Now lie was of opinion Ministers ought to bind
a , great- of the unfunded debt—establish a
real sinking fund, and meet the difficulties of the
country with vigour and decision. When he
looked at the falling price of the. funds, It
ap-
peared to him, that to call on the Bank to pay
their notes in gold, at the moment a large loan
was about to be negociated, was in fact to throw
the money of the public away. He knew not
what that House could s'ay.to the terms of a load
negociated under such 'circionstairces., Ankimisly
did he Lope that the evils which he anticipated
might not occur ; but he did confidently expect
that they would-be severely felt. He theretore
called on Ministers to remember the sacrifices
which the people had made, and save them from
the impending calamity. If thos,c iryluo
stiffer from -rite measure now in contemplation had
over-traded, to use the fashionable phrase, they
stilrdesetved the pity aud protect iou of the
.House,
and ought to have time allowed them to recover
themselves, by introducing the contemplated
Change more gradually than was at present
proposed.
, Sir H. PAIINLML thought many of, the inconve-
oiences which the last Speaker expected, would
.arise 'from the adoption of the plan now under
consideration, could only be felt if the Bank, were
compelled immediately to resume Cash Payments.
The eourse• recommended in the Report- was that
which appeared .best calculated, to effect the ob-
ject in view ; for if the House wet: merely to de-
clare tam Cash Payments should be resumed at a

(nstatit day, be doubted not the price of gold
would he kept up as it had hitherto been, so that
the Bank would hare as good. a case as. ever,
when ti ziit time shoultl arrive, for csilling on. Far-
lianst•nt agait to postpot,te the period for the re-
sumrtion of payments in specie, Ile thought the
present measure would only "dimini;ll that part of
the currency which was founded on fictitious cre-
dit. For the practice of over-tr'ading,-ifit- shOntil.
be checked. he thought every ftiend to the pros•
perity of the country would have reason to re-
joir..: He did not see any strong reasons to in-
duce him to think that the'plan recerminended in
the Report of the Committee would compel the.
Bank materially to diminish the atriOunt of their
paper at present in circulation. He ltdt.that the
currency Of the country was at length likely to be
restored to a sound and healthy state, and for one
he, felt grateful to those: who had contributed to
effect so desirable an
.object.,
Mr.tioaNEY(of Norwich) said, that in 1797 the
amount of the pliblia,debt was 400..0,00,004 and
it Was the inability of paying theiOterest of this
debt in specie that rendered the Bank: Restriction
necessary. It was indeed said that a public
alarm was the immediate cause of the restriction.
Let thisbe.grauted. What was the oat e_of this
alarm, but the conviction that we Inol gone so far
in.debtthat it would be imposstble-to continue
paying the interest of it unless some measure was
adopted ? Accordingly the Bank Restriction Act
svii'pAse(l; our guineas were all pone, and we
ciruld not get theni back.' Tfie feeling was n'ow.,
that the plan for removing the restriction would
occa,ion such a reduction of price's that it would
be impossible to continue paying the interest of
the debt anti, iu consf.quence, the national et e-
Ititor was alarmed. It now FtppeAteo that of the-
-25,000.0001. issited by the Bank, 20,000,000/. re-
pry sented. the debt of the Go‘faiinient; and this
'sum. so long as it circulated in paper, was reCeiiN:
ed by the Government. But bow the Govern-
ment were for taking tlie.e notes to the Bunk, and
inOsiing on having Million. On this the Bank
very nator ally . -aid to the Government, " You
owe us 20,000,0001, ; pay us that stint in gold,
and we will then agree to circulate that gold, in-
stead of our paper"

11,t6ARDo rxplained.
Lind F,4.lisToNii said, it appeared to him that
the Bight Hon. Geo., Oil an who brought forward
the Resolutions before the Hoirse, bad not stated
the case of the Batik quite faitly. It was rot-
exactly trite, that the merit u
.f retorning to
the standard of currency wits due to Qteen Eliza-
beth. because, in fact', she had done no more titan
what was determined on by Edward I he. Sixth. As
to cilia had been done in the reign°, William 111.
it was not ti return to the aecient standard, but.
merely fixing it. objection tithe plait of the
Chairman of the Secret Commi7tee was trot to its
principles, but with the mode in whit t it was in-
tended to put them into or ration. '1 lie scheme
of his Hun. Friend seemed to him better. There
could be no doubt that vomiting to the ancient
standard would be attended with many ineOnve-
niericieS.'. But the measure now proposed, and
the quarter whence it proceeded, showed must
strongly that troll waS sore reltimatdy to pre..;7
Vail. Yet although there seemed to be consider-
able unanimity on the eeueral principle, there
was notch difference es to the I►Artirttl,r mode of
returning to a metallic correocy. However Much
fie was rejoiced at the change of c,pittibn in the
Right Hoo.Gentleman and
.tree others who had
formerly opposed the kHiiioll Report, it VVas.
possible not to feel that the Might Hon. Gentle-
man might have used someex'pressiens of regret.
that the 'hai n l ot so'oner' proceeded to
,an
inquiry, .and Lhecked the obstinacy of,:the •Mi-
nistry. But the :nost strange thing Iva's, that
the. Right Hon. Chancti,or of the Exchequer,
chile he a-gi•eed to the present plan, protested
that all his' opinions remained unchanged. (loW
this could be, considering that the. principles
the plan woe diametrically opposite to those
opinioos, he could • not,
.untlerstand. Whether
the Noble Lord opposite (Lard Castlereagh)
wool,' say that he had_given up his Old opi-
nions against the, Bullion Iteport, `lie did not,
know ;. but he trusted if ' that
.NOble Lord
ftivoured the noose with a statement of his
opinions this night, lie would enter into the sub-
ject somewhat more fully than the Chaticellor of
the EXcheqner. Part of-the proposed plan was to
repay 10,000,0001. of the debt due, by the Go-
vernment to the Bank, and this stint was to be
provided by a loan. It was to be considered that
the interest of this loan, and the various expenses
attending it; woithlamount to the annual .sum of
nearly two millions And a half. lie could not see
'any Wayof providing, for this new charge. but by
an increase of taxes,.and be would put it to the
(loose whether the.cOuntry was in such a state as
to bear any new taxes. It was a very hard thing
to compel the people to, pay the national creditor
in speCie the amonnt of interest due on a debt-
which had been contracted not in specie, but in
paper. But hard as this was, it was exactly what
would happen in consequence of the resumption
of cash payments. If we returned ,to the old
standard by such inconveniences, any distress
which would be occasioned would be
.attributed
to. the . scheme 'itself. The plan woald not he
perfected for four years, and it was to he consi-
dered that within that Hine the complaints might
grpla to sod; a height as to compel the abandon-
mem of the plan altogether. This was an 'incon-
venience Which, by, some alteration of the plan,
might be wholly avoided. By the present plan
the Parliament was in part recognizino the depre-
ciation which hitherto they'had all Log, in fully
denied. ,There seemed in hint to-be more in this
objection than was allowed. Another ot,j(:e-
jeetion was, that the Bank' would have the same
means, of defeating this plan as they had that of the
year 1810. At that time the House for a whole.
evening were puzzling ihemselves to find out the
strongest expression of their opinion that the re-
iiimption of Cash Payments was absolutely neces-
sary. The Bank Directors too then gave the
most solemn assurances that Cash Paymeots would
hr resumed. 'Vet, in spite' of all this, and
the Act had passed, the Wank increased their issues
of paper to a gt cater Minium than ever, and com-
menced a variety of operations, which prodeceit
such au effect out the price of gold and the rates
Of exchange as enabled t hem to come to the I-louse
and say, that they would be utterly ruined it they

weft Cott-Incited res fti tesue call peythsnte. Vill3,
,'"
was to pi event the Bank trout resuming saco
operations as soon as this plan received the We'
tion of Path h»erit, and thus wholly futon-ad:lg if.
He must, however, admit that this objection wail
erpially -applicable to every plan which could be
devised. The Bank had a clear interest in havinK.
a fluctuating price Of gold ; and therefore n'h-cit.'
ever tended to give theta the command of the bill'
lion market. ' The Hon. Bank Directors wb°
spoke last night, complained that confidence we'
unjustly withheld front the Bank. Is'or his. ow°
part, when be recollected how great an interest
the Bank bad in the continuance ot the restrictiont
he knew not well bow •to have much confidence
on tie present occasion. Another thing whick
prevented him
stinim having much confidence it
them was, that they wished so much to have 6,
large discretion reposed in them. He was lb!
more jealous on this subject, from recollectino
that some years ago, when he wished to introduce
a clause' into the Act of Parliament, tending td:
give a discretion to the Bank, birth the Governor
and Deputy Governor (to whorls he was referred •
on the subject by the Chancellor of- the Exchee
(pier); declined having ste b a discretion. Aoo‘
titer thing which shook iris coofidence in the 13,1111'
-.vas the recollection of their conduct at the time •
when he had ihtrridOcett: a Bill into the' Hottsi
some years ago, Ariel( they 'opposed (although' ii
did Hot recognize. the doctrine of depreciatiortY)
because it gave them • the po ever of commandirl}
the bullion market.. As to the.plan now proposed,
be once more begged to be understood as.not oP"'
posing its principles. But he thought, that, on
considering the various circumstances which 14
had noticed; the House would be inclined to thin
it ,more advisable to accommodate the plan entire!?
to tile sfepreciated state of the currency. es
Mr. Ceihits said, that it seemed to be agreeas
on all Itattds that the resumption of Cash l'EtY7
mews Would he attended with a very consider.:
able shock, and that means' should he athipted to.
make this shock as Ught as possible. - He thott4he
11 it was_not.faiteto accuse the Bank.of itisinceritYl
merely because the last ex vriment of gradually
returning to Cash Pavan:tits had failed. In hie'.
opinion, notliing had been shewn to jarstify the
House in withholding its countenance from the
t
Bank. The idea of forced issues was carried a
a much greater extent than it might. A restrictii':
int issue could he nothing else than an absolate.
refusal to discount certain bills at certain dates,
In all agricultoral districts it was well - knosvii -
that the amount of discounts varied in exact pro"'
portion to the price of atetricultural produce. It
I was a very general opiniou that a.. retuan to tree 1
tallic currency would be very desirable; if it coalel
II be accomplished without distressing the connuer"
1 dal interests, At the same time, be did nut think.
! that the distress which now prevailed was sari'
: butable to the institution (0 the inquiries by pare ,
i liament. On the edntraty, he was inclined ft'
I think that the distress was occasioned by the ex"
peered depressiou in the pi ice of corn. As toll)*
Resolutions before the House, he was rather . .
i dined to support the Resolutions of the HAP.
' Mernher for Coventry (yir. Ellice) ; hut, if he .
I were in order, he would propose as an amend"
1 thew, to erase the 4th and sth of the Resolutions
Which that Moo. Member had moved. 'file tea'
I son ally he would erase then, was, that he thought
the House ought not to, dictate to the Charcellhe
of the Exchequer as to what proportions and in
wbiti -Modes he shoald repay the debt One to the
Bark. .He, was inclined to use every possiblo-
Means to allay the present ferment.
Mr. I.3soopva, (the Chairman) said, that this
best course for the Honourahle Gentleman (Mrs
Cripps) to pursue, 'with respect, to his
,ameadment,
as there was already an amendment heore the ,
Committee, would he to Vote against the 4tlt and
,
sth Resolutions of the amendment, when tho
Iquestion was nut upon-theme
~
Mr. sLiHN ShliTH said, that the subject Bo( 1
under discussihb was one on , which he felt thll
greatest anxiety, front an impression of' its ease
imptntance. As to • what had been said of the
confidence to be reposed in. the Bank, he coold.
Inn forget the eminent services which that esta.
lishment hail rendered to the country. He could
not go so far as to ,say that the Bank of 'England
ha'd saved the &mutt)? ; but, he must sassthat it I
hail rendered the country great set vices, lie .
'Wished to he allowed to say a few words as to the
iodividnal Conduct of the Bank Directot s, because
be thought.a ,very unfair impression prevailed as ;
to, their conduct. What was the most remark-.
able feature in the conduct of those Gentlemen
was their absence of all selfish feelings. This
was evinced in various circumstances ; antis
amongst others, int their having restricted thew .
sek es to holding too more Bank stock (oot wish..
standing the great profit derived from it) than was
in;cessary to truslifythemsts Directors. IVhth respect , 1
to the resumption ot Cash Payments, he was ot opie- '.
..
• 'thin that it, wattle! he sufficient to fix a rime %elicit
•Cash Pay-tnents should be renewed definitively, ,
and to allow the Batik to make of thems, Ives Ike: .
necessary prepat at ions. As to the alarm which novo
prevailed, it -was perfectly unfounded. Hee did -.
not know witat it meant. It the !Attu prtniosed.. ,
was to cause a Considerable diminution of- tile --; ,
circulating meditml, he would take alarni as soon _.
as: any one. Anti he believed that an unfounded
apprehension int this subject:was the cause of the
alarm. No such diminution was intended; aria
the• plan could have no such .effect. But at the
same time hehnost coniess that there was a sub.;
ject on which' he felt some --alarm, though litre ,
hoped it would be alispellt 0 by =‘llitt.' he should
hear this night from some of elm Gentlemen of the ,
Bank. What alarmed, him, was. this--slest the e.
BOik, supposing that at tins 6 ate mentioned ,i!}
'the r Report they would be obliguri - to. pay in
bullion at 31. 173. 10-1.1,, wotild gn into the •
inaiket to buy hp COIL; tinder .this appreheme
sht, and thus cause trite very thing which ,
I 1 hey dre tiled.' H e trusted that this wobld not ,
I take'place. , :snot ,cc subject to Which he wished .
to call the particular attention' of the House was,
; fist grelt amount of the sum to he tepaid by Go-
rernment to the :lank. The 13tAuk Directors ought
not to complain ,Itat they pdssess not the poiver. ;
'I hey have the non er, `hut they will not use it. If .
tett mlllions he r4aid to them, as the greater part .
of the debt due by. G,,,,,,,,,,,,, ti.ev;...,0, 0,4
to 'be, iA any dilemma. 114 objected to the
• amendment, as inefficient. Lie did nut approve.;

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