The Sun.
London, England, 1826-06-01 00:00:00

Kingdom of the rule Which it has been determined to apply to
England. Provision would thus be made for equally apportion-
ing among all parts of the Empire that charge, which is insepa-
rable in the first instance from the substitution of a metallic in the
room of a paper currency. The wider the field over which a me-,,
tank circulation is spread, the greater will be the security against
its disturbance from the operation of internal or external causes,
awl the lighter on any particular part will be the pressure inci-
dental to a sudden contraction of currency. The business of
banking, and probably of all other commercial transactions con-
- nected with it, would be conducted on a more equal footing, in
respect to profit, under a system of currency common to all parts
of the Empire, than under one which' should confine to particular
portions of it the privilege of issuing a certain description of paper.
In proportion as the offence of coining shall be found to be more
difficult Of execution,- and to be less frequently committed than
the offence of forgery, in that degree, upon moral considerations,
will a metallic circulation be preferable to one of paper. •
These appear to your Committee to be the principal reasons in
favour of extending to Scotland a system of currency which the
Legislature has resolved to re-establish in England, reasons which
seem decisive in favour of such an extension, unless they can he
couutervailed by the proof of some peculiar circumstances in the
condition of Scotland, justifying a special exception in her behalf,
and by a strong presumption that such an exception can be ad-
mitted without prejudice to the interests of other parts of the
Empire.
The main object of the witnesses from Scotland, who were ex-
amined before your Committee, has been to prove the claim of
Scotland to this exception. Their opinion, with very slight shades
of difference, is decidedly adverse to any change in the laws which
have so long regulated the issue of promissory notes in that
country. In estimating, however, the weight due to their opi-
nions as authority, it ought to be borne in mind that a great part
of the witnesses from Scotland were gentlemen immediately con-
nected with some of the banks in that country, subject therefore
to the prepossessions which naturally spring from a long connec-
tion with existing establishments, and from a warm interest in the
continuance of their prosperity.
It is not improbable that, had the time permitted it, your Com-
mittee would have extended still further their inquiries; and they
deem it on that account the more incumbent upon them to state
the general nature of the testimony upon which they have come to
their present conclusions.
The witnesses examined by your Committee with reference to
the state of the circulation in Scotland, were seven gentlemen,
',tainting in various relations to some of the Bunks in Scotland
Mr. Kirkman Finlay, a merchant at Glasgow,
Mr. Gibson Craig, a writer to the signet in Edinburgh,
Mr. Hadden, a manufacturer in Aberdeen,
Lieut.-Colonel Camplmell, factor to the Duke of Argyle,
Mr. Gladstone, a member of the House,
Mr. Moss, a banker of Liverpool; and •
Mr. Birkbeck, u banker in the West Riding of Yorkshire,
were examined as to the manner of conducting the business of
banking and commercial transactions connected with it, in Lan-
cashire. Aft.• Gladstone was enabled also to give evidence upon
some points relating to the circulation and commerce of
.Scotland.
Three of the Directors of the Bank of England gave their evi-
deuce, chiefly as to the hearing which a paper circulation in Scot-
land might have upon the interests of the flank of England, after
the re-establishment of a metallic currency in this country.
The grounds relied upon by the Witnesses from Scotland to
Owe that it is neither necessary nor expedient to alter the laws
which permit the issue of small notes in that country, appear to
be the following :
That these laws, so fur as they relate to notes between the sum
of 20s. and Si. payable on demand, have remained unaltered since
the first institution of banking in Scotland.
That, coincident with the present system of currency, if not
immediately owing to its effects, there has been a great and pro-
gressive increase in the manufactures, the agriculture, the com-
merce, the population, and the general wealth of the country.
That during the civil commotions of the last century, in the
rebellions of 1715 and 1745, the confidence in paper securities in
Scotland was not shaken; and that the Scotch Banks maintained
their stability, and were not called upon for any extraordinary issue
of gold in exchange for their notes, during the shocks to which
mercantile credit was exposed in this country in the years 1793,
1797, and more recently, in 1825. That it cannot be assumed,
therefore, that a circulation of specie is necessary in Scotland for
the purpose of guarding against the effects of sudden panic.
'That while Scotland had a Pape* Currency fin. the discharge
of all autos above 200., England had, at least, for twenty years pre-
viously to the Dank 'Restriction, a currency consisting of the
precious metals, to thin exclusion by law of notes below live
pounds. That 'these different systems co-existed, and that no
proof can ho adduced that the Paper Circulation of Scotland die.
placed or interfered, in any material degree, with time metallic cur
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Scotland to the present time, the instances of the actual failure
of a Scotch • Bank have been extremely rare, and that there
have been only two instances in which the creditors did not ulti-
mately receive' the whole amount of the principal and interest of
their debt.
Lastly, that the inducement to the Scotch Banks to continue
their -Branch Banks in many remote parts of the country in which
they new exist, would be destroyed ; and that the whole system
of deposits and cash credits would be most materially affected, if
Oat Banks were compelled to forego the profit now derived from
the issue of notes below five vomits.
Per the opinions in detail of the witnesses from Scotland, on
these and other points connected with the small note circulation
in that country, your Committee must refer to the evidence an-
vexed to this Helium So far ne the interests of the Bank of
England are concerned, it will be seen that the Directors of that
Bank, who were examined before your Committee, urge no ob-
jection to the continuance of the present system in Scotland, pro.
vided that the paper circulation of Scotland can be effectually
restrained within the limits of that country.
Upon a review of the evidence tendered to your Committee,
end forming their judgment upon that evidence, your Committee
cannot advise that a Law should now be passed, prohibiting,
from a period to be therein determined, the future issue in Scot-
land of notes below five pounds.
There are, in the opinion of your Committee, sufficient grounds
In the experience of the past, for permitting another trial to be
pude-of the compatibility of a Paper Circulation in Scotland with
a circulation of specie in this country.
Looldug at the amount of notes current in Scotland below the
value of five pounds, and comparing it with the total amount of
the paper currency of that country, it is very difficult to foresee
the consequence of a law which should prohibit the future issue
of notes constituting so large a portion of the whole circulation.
Your Committee arc certainly not convinced that it would affect
the cash credits to the extent apprehemled by some of the wit-
nesses; but they are unwilling, without Stronger proof of neces-
sity, to incur the risk of deranging, from any cause whatever, a
ovstem admirably calculated, in their opinion, to economise the
rise d capital, to excite and cherish a spirit of useful enterprise,
and even to promote the moral habits of the people, by the direct
inducements which it holds out to the maintenance of a character
fur industry, integrity, end prudence.
At the same time that your Committee recommend that the
system of currency, which has for so long a period prevailed in
Scotland, should not, under existing circumstances, be disturbed,
they &el it to be their duty to add, that they have formed their
judgment upon a reference to the past, and upon the review of a
404 of things which may hereafter be materially varied by the in-
eretialog wealth and commerce of Scotland, by the rapid extension
of her commercial intercourse with England, and by the new eir-
curnstaimes that may affect that intercourse after the re-establish-
ment of s metallic currency in this country.
Apart from theme general considerations, bearing upon the con-
clusion at which they have arrived, there are two circumstances
to which your Committee must more particularly advert.
• It is evident, that, if the small notes issued in Scotland should

rent beyond the border, they would have the effect, in pro-
voirt:^o are their circulation should extend itself, of displacing the
,ad even, in some degree, -the local currency of England,
iniorferem* with the system established for England,
would be a manifest and gross injustice to the bankers of this
part Of the %lire. If it should take place, and if it should be
coluid impo„,a, e to frame a law consistent with sound and
Just" principle, of legislation, effectually restricting the circula-
tion
of scotch noes within the limits of Scotland, there will lie,
in the -opinion of your • Committee, no alternative, but the ex-
tension. to Scotland of the principle which the Legislature has
determined to apply to Ole country.
The other cireunistance to winch your Committee meant to
refer, as bearing materially upon their present decision, will arise
in the event of a considerable increase in the crime of forgery.
Your
Committka called for Returns of the number of proseen-
tim; and convictions for forgery, and the offence of passing forged
notes, during the last twenty years in Scotland, which Returns
will be found in the Appendt.
There appear to have lieen, during that period, no posec
tions for the crime of forgery ; to beve bee►n eighty-six prosecu-
tions. • for the offence of issuing forged Promissory notes, fifty-
two convictions ; and eight instantes in which the capital sen-
tence of the law has been carried into effect.
that out of the total num-
. it ought not to escape observatiou,
-bee of prosecutions for issuing forged notes in the last twenty
years, hirty-eight have been instituted in the years I 82), IEIV,,
Isb4 109(; a fact which atewe tv warrant the apprehension that