The Sun.
London, England, 1819-05-18 00:00:00

PARLIAMENTARY PAPERS.

APPENDIX TO THE COMMONS' REPORT ON BANK

AFFAIRS.

At the conclusion of the evidence in the Report
of the Commons' Bank Committee, is the follow-
ing, important Document :
At a court of Directors of the Baiil of England, held on
'Thursday, the 25th March, 1819:

The Court, having taken into se, ious consideration the
following questions, proposed by the Secret Committee of
the House of Co►muons, viz.—

1. To what further period, in the opinion of the Bank,
ought the restriction on cash-payments to be continued ?
2. Have the Bank any suggestions to offer, with respect to
any assistance that can be afforded, to the Bank, by le-
gislative enactment or otherwise, for facilitating their
resumption of cash-payments I
Resolved, Thatlhe restriction on Cash Payments was alto-
gether a measure of state-necessity ; and that the object for
ingniry now is presumed to be, not when the Bank will be
prepared to resume pavnien's in si.ccie, but whether the
public will be able to bear that redaction. of rite circulating
medium which a speedy adoption of the measure would render
indispensable.

Tliat previous to the war, the amount of specie in circula-
tion was variously estimated, even by persons best qualified
from their situations to obtain information ; it seerus, how-
ever, to be agreed that it was about 30,000,0001. ; but what-
ever the amount, the whole bas been exported.
That this Court has never ceased to he dui), irapressed with
the great additional responsibility which devolved upon the
Bank on the passing, the Restricti..n iket, and the Directors
have uniformly endeavoured conscientiously to discharge a
most delicate ana important duty.
That considerations of profit to the Bank have never in-
finenced the Directors in the tissues of their paper; but they
hare invariably endeavobred, as much as Ossible, to limit
the amount; arid when all circumstances are considered, it
may justly admit of a question, whether, instead of com-
plaining of excess, there is not rather ground for surprise
that the amount has been so circumscribed.

That in the course of the years 1816 and 1817, a favourable
turn in the exchanges enabled the Bank to collect a sum of
treasure, whicts., in addition to what was already in its cof-
fers, would have been sufficient to meet the opening, if the
hopes which were then entertained had been realized : more;
especially, as the loans to Government of 6,000,0001. and
3.000,0001. were in course of payment, and the greater part
of the other advances on Exchequer Bills became due before
the sth of July, 1818, the day on whiCh• the liestriction Bill
was to have expired; that the system of finance which it has
been thought proper to adopt has not favoured the Wine-
quent liquidation of these advances, is in no degree attribut-
able to the Bank..

That this Court believing there was a positive evil in keep-
ing out of the general circulation the whole of the large
amount of the gold which had been collected, determined, in
some degree, to anticipate the opening; anti accordingly, in
April, 1817, advertised the payment of ail notes tinder 51.
dated prior to January, 1816 : and subseqoently, in the month
of September, further advertised the payment of notes of
every description dated prior to Jahuary, 1817, being to the
amount of many millions.

That the public, instii,ad of availing themselves of the op-
portunity thus affor.led of obtaining gold for notes, brought
their guineas into the Bank; and this contilawd to be the
case till tlo; issue of the sovereigns and half-sovereigns, for
which there was an immediate demand, though at fist only
as objects of curiosity.

That thus for a short season there appeared every reason
to hope that the resumption of Cash Payments, an event to
which all bad looked with more or less anxiety, ►night have,
taken place imperceptibly; but this flattering prospect seas
of short duration; the extensive financial operations on the
Continent, in which British subjects had taken se large a
share; caused the exchanges, which perhaps had been forced
above their natural level, to fall so greatly below par, as to
make gold, more especially the new coin, a very advantageous
remittance ; and thus the Bank has been d►ained of a large
portion of what had been accumulated.
That, with the experience already possessed, and after•
the most mature deliberation, this Court is of opinion, that.
in order to the re-establishment of a metallic currency, it
will be necessary that the Bank should not only he provided
with a sufficient fund to meet time demands which may be
made upon it, with, reference to the amount of its notes in
circulation, but a supply mint also be obtained, nearly if not
tally equal to the amount of specie in the country previous
to the year 1797.
That it then becomes a question, front what sources, and
in how short a space of time, such a sum in gold is likely to
be obtained.

That it appears certain, that little is to be expected at
present from South America ; and therefore it is to the Con-
iinent et Europe the country must chiefly look for supplies.
That in deliberating on this most important subject, this
Court assumes it to be an incontrovertible proposition, that
every attempt to bring in and retain the precious metals,
while the exchanges, are below par, must be unavailing.
That then only can a country be said to be growing rich in
gold and silver, when it receives them as /be balances of ex-
ported goods actually paid for.
That although it must be obvious, that the returns from
the Custom-House books are no sure criterion of the pro-
ductiveness of an export-trade, because adventurous persons
often export produce and maunfactures for which they re-
ceive little or no return ; still 'this Court is not disposed to
take an unfavourable view of the staid of our foreign com-
mence : it mot nevertheless be acknowledged, judging from