The Sun.
London, England, 1826-02-28 00:00:00

USURY LAWS,

Lord STANLEY protenteii a petition from the Chamber of
Commerce of Manchester, for the Repeal of the Usury Laws.
Ordered to be printed..
TITHES.

Mr. SYK ES Laving obtained leave, brought in a Bill for the
Collection of Small Taties.—Read a first time, and Ordered to
be read a second time on Friday next.
The Hon, OV:ttTLEM4 N then presented a petition from oe-
nrria
bitsirre Cockburn, relating to the Duty on Foreign Fie-
•t ores.— Ordered to be printed.
PHILLIPS pres,ented a petition from Ashton-under-
lane on the subject of the Corn
Lord J. lU,JSSELL presented n petition from Iluntingdon
against Slavery.
CRUELTY TO ANIMALS.
Mr. HOIIHOUSE prcsented a petition front the parish of
St. Margaret and St. John, Westmmster, in favour ot the Bill
against Cruelty to A nitnals ; and aboidmilar petitions from the
Inhabitants ot Pentouville, and the parish of St. \larylebone.
—Ordered to be willful.
EENWICH 110 SP ITA !J.
Mr. CHARLES CALVERT moved for Returns of the
Money paid to Greenwich h ospital, front the 'MSc December,
1824, to 31st December, 1825, on account of the sixpenees de-
ducted front the pay of merchant seamen.----f)rilered.
ATTOIiN Ilea' TA N.
Mr. J. SMITH presented a petition Iron the Practitioners
in Law of North Britain against the Attornies' Tax.--Ordered
! to be printed.

CURRENCY.
r. HUM presented a petition from the Alcrebanta, ship.
owners, arid Mannfartorers of 'Aberdeen, against an alteration
in the Currency ; and alai a similar petition from the Mao..
tratcs and Town Couneil of another Town in tienthrul. The
lion. Gentleman strongly urged the tweeF4lty of :ottndine to
the prayer of thtr+ta petitions. The passing of a Bin the
alteration of the. Scotch Currency, he said, would inevitably
put half of the population out of employment. ALtteit, had
stoOd very well as they were for a Undyed year, tee:t, and he
would recommend to let very well alone.
cmitain t ;OR DON coneorred in the sentiments expressed by
ihe Lion. Member lirr Aberdeen, w hoped O
would pause before they determined on their. proposed
measures. —The Petitions were ordered to be printed.
31r. 111131 t presented a petition from the' Operatives of
south shields, and untidier from those of Blackwell, in Aliddle..
sex, praying for the repeal of the Corn Laws, and the exaction

PRICE SEVEN PENCE.

'of security from.- Prhia te Bankers to the' amount of their issues.
The Iron. Gentlemen Molise she etise to consider the mi.-
sery which had been brought on thousands or poor individual,
Who had held the notes of banks which hild-
failed. 'heir case
certainly indicated the necessity of adopting some it rrangernentg, •
whereby the public might be assure of the stability or thous
Hanks whose notes were in circtilatim—Betb petitions weri
ordered to be printed.
Lord STANLEY presented a petition from die Chamber of
Commerce Of 'Manchester on the subject ()fa Metallie and Paper
Curreno, anti also preying a reduction of Stamp Duty upon
'mall Bile of -Exchange. The part referring to. the Currency
he tvculd press upon the consideration of the House, as ti
Rill on the subject was now in prOgrettf; but he Would meet
earnestly recommend to the Chancellor of the t.:*.ellequer the
suggestion of a reduction in the Stamp Duty on Small bills, as
one of great importance: It would be peculiarly advantageous, •
when by the operation oftha Dill the Country Would be in want '
of a small note currency.
Mr. CA I.CH A FT begged to. aiik diction. Meniber for Tion•
Jon, Whether it watt', his intention to' press hie motion of which
he had given noticelor to-morrow (Tuesday.)
Mr. 'l'. WILSON replied that it was. 'I here had been soma
partial understanding on the subject, he said, but he could not
tell to what it amounted.

ABUSES.- IN THE CORPORATIONS OF, IRELAND.
r. DENN A N presented a petition from Thos. Flanagan:
of Sligo, complaining egaitnit abules in she. Corporations of
Ireland.
PROMISSORY mO'rES MU.

The CHA NCELLOR of the EXCHEQUER moved the
Order of the Day fier going into a Conunitteo, on the 14romis.:
sort' Notes' Bill.
On the motion that the Speaker leave the Chair;
Mr. CA LCRAFT expressed! a- hope that an opportunity
would be offended him to express his sentiments on the Bill at
an early hour I.o.lnOrrow.
The CkIANCELLOR of the EXCH HOLIER wished that
he could be afforded the opportunity tosday. , The Hon. Gen:
deman'a wish to accommodate the Hollse in point of time, gave
hint a claim to similar courtesy on their part. Bet discussions
which had taken place in the Committee rendered it necessary
that the Committee should he gone- inw again, est there. were
many clauses to be introduced into the Hill. But if the
Committee were over to-dey,,tte hoped the Report might be
received, to-morrow, so as to, stand the required opportu-
nity. 'Phis measure Ivae,the - Brat Valet of the Day which
he would wish to move to-morrow, after the Notices were dis.
posed Of.
Mr. HUME wished to make a few observations before the
Speaker left the Chair. He dillSred from the Chancellor of the
Excheyser as to the causee of distress. lie considered the
measure now betisre the House to be not only uncalled for, but
likely to produce much mischief to Emdand, and still more to
Scotland. He would recommend Scotch Mont r* to be aware
how they co-operated in. fastening such a measure upon Eng-
land, as they would afterwards with seyery bad grace seek to
exempt Scotland from its operation.. As he conceived, the-eurs.
Tetley neght to be similar for England, Ireland, and Scotland,
rind such a one as he had recommended. He was sorry toper.
eciVet ' that a Right Honourable (.4endeman had retracted the
opinions which he had expressed on the ,Bullion question,
with regard to a paper currency conVertible..into money....
He (Mr. IluniC) did not dunk that either a paper currency,
or a metallic currency singly would *newer our etenmercial
purposes.. There was a necessity for a mixed currency, where..
in paper would be convertible, upon demand, into gold. or
silver. As to the argument against stiffering the issue of one
pound notes, - inasmuch as it was an infringement on the prero.
gative of' the Crown, he considered it quite frivolous; and so .
tar as It was • at all applicable, it made against the issue of
M., 101., and all other notes - whatsoever, they being equally
infringements on the prerogative. It was also said, that
the suppression of one pound notes was designed in mercy
to the poor,in whose hands that part of the currency rested, and
the miseries of the unfortunate people, • arising front the failure
of Country Banks, were depicted in the most pathetic terms.-e-
But, he would ask, did the present measure secure the lower
classes against the recurrence of such Misfortunes. The small
tradesmen who held the bl. or ' WS notes of any thank that
failed were fully as much to be pitied. as the holders of 11. notes.
Ile would venture to assert that the mass of rejected notes was
to he fbund not in the hands of the very lowest class,het in those
of the small tradesmen and shopkeepers. A substitute for bullion
was nereesary, and it could be found by putting the Banks upon
a firm footing, according to the plan which' he had suggested.
If any Bank were to fail after the paieine of this treasure, and
before 1820, the Chancellor of the -Exchequer would be re.
sponeible for the consequences, unless he would exact security
from the bankers. lie thought the Crown and the Mouse
would,' in the event of a failure, he answerable" to the extent
of requiting parties for any loss which they might sustain in
consequence of the 'osin of the Ilill. The artisans in the
Plymotith Dock-yard had been paid at the rate of about 7001.
nweek in the notes of a bank which stopped paYments and dew
the greatest distress prevailed in the eeighbeoring villages
from the dissemination of notes which Ministers employed for
the wages of artificers. This was a complete illustration ofthe
effects which resulted from the system of banks being suffitred
to issue their paper without .giving security. - He recollected
the simile which had been employed by the Right lion. Secre-
tary fin Foreign Allitirs, who said that the gold of a country
was like the dove which fled from the ark and did not return
to it; but such an event could only take place when there was
a suspension of cash payments,. and was not aplicable in the
present case. In recommending that bankers should be bound
to Make deposits of securities for their homes, he bad n`mobjec-
tion that those deposits should be confined to the issue of 11.
notes for the first year; extended to the b/. and 101, notes; and
to all others thenceforward. If such securities were en.:
forced, there could he no . fear of over issues, so as to in.;
duce a depreciation in the currency ; for were there a deptecia.
don even of Ilt per cent.; it would be a sufficient inducement
to brokers to cent! the gold out of the country, which would
have time effect of bringing the currency back to its-propeestan.
&id; and thus the evil would work Its own cure. By depoeit-
ing llovernMent Securities in the hands of Commissioners,
hankers could sustain no injury whatsoever, as they would have
a right to receive the interest ad per cent. accruing on their de-
posits' with which the Commissioners could not interfere. lie
would also have 'it enacted, that, bankers should be bound to
pay upon demand the amount of their notes, or, in default of
such payment, that the Commissioners should be empowered to
convert their deposited stock into money, in order to satisfy the
claim of tire note. holder. The consequence of such a regulation
would be That there would be no run upon a bunk ; and it so
desirable an end were once attained, they would real* a paper
currency of permanent security, and thereby save to rho country
no less titan twenty millions ofcapital. Ii would also be proper
that every banker's note should be not merely payable upon
demand, but upon the spot where his bank. stood. In some
places at present, a note could not be converted into gold at
a nearer distance than three hundred miles from the place of
Issue socknote possessed no stamp or
character' so
ac;tei' of currency.
ay-r lie thought it a matter of no conse-
quence how great the quantity of paper issued might be, pro.
sided its payment was properly secured. It wits objected, in,,
deed, that his plan was merely theoretical, and had never
existed in fact; And it was also said that scarcely any bank notes
circulated in Ireland. But during the last two years paper had
been issued in that country to the amount of two millions: To
the first objection against his plan as theoretical and lineup-
pont d by instances, he would reply that its practical results
had been fully shewn in America. In New York, there were
$b chartered banks, and not a single private one. Each bank
wits compelled to give security for its solvencyl and to exhibit
annual accounts of the most particular description as to the
amount of its heroes, the quantity of specie, and the balance
of profits remaining in its coffers, to the President and Cone
greet ; and where the slightest doubt existed ant to the solvency
of a bank, a Committee was appointed for the purpose of woe
mining into the state of its affairs. Now, it was objected that
such investigation would be an unjust interference with the
private concerns of individuals; but Surely it was hut fide that
'sin exception should be made as to the right ofeatimitiing,the
aftitirs of those who exercised the prerogative of the Crown.
Moreover the public benefit derived from much a praCtlet Sias
foliy exeniplitied in America; where no more than one htni4l:c
occurred time the year 1016. 'ln MartstichusatttWilal'olePlio°r%
shin in the hank charter, the charter itielf was ferfeste silting*
vsfusat to pay the amottnt of a note upon demeri,:lloat n? 1 sl,r.net'
Ow late A mericitn war with .England, when t
„5t,t,r,71!,...,
shield were not chart&red had suspended ili!mtcir r ;111,111.;;I:i'r'eu
el-metered bunks of Nitossaellussetts and
dim eiiiference in point at
never- lost a farthing, end there wits'
Mutt
,threinueti
security between their paper antilrri,„:7l
4.. ' e
He .would
1111:e4ibtre'ruinn'4PitimaPtl°t174)‘":11;ib:altlirmikirsu'l:c'-t'oitdn;:lll:Cifitklsiet:43';'?lTall'talc' tehan
clause into the MU obligits

/mint of their issues in the hands of Commissioners either in
the office of the Exchequer or in other proper offices.
The CHANCELLOR of the EXCHEQUER confessed he
.dirt not feel at all disposed to engraft the suggestion of the
lon. Member upon this Bill, as he considered the Bill at va-
riance with any such suggestion. - The Bill was altogether a
temporary measure, butthe Hon. Member wished,it would seem,
• to treat it us a permanent measure. That Hon. Mertiber was de.
sirons first of keeping the one pound Bank notes In circulation ;
and next to support the value of the paper cureacy, by requir-
ing deposits in the hands of the Exchequer to its amount.—
Without inquiring further into this mixed proposition at •pre.
sent, he should merely observe, that the House had already
decided that the continuanceof one pound notes was highly pre.
judicial to -the public. He hoped very coatidently that after
such a decision the House would not assent to this alteration in
the plan propoeed by him for meeting the pressure of the pre-
sent period: • was perhaps true that the system of our coun-
try banking wam defective or vicious, but it was not to be er-
gued thence, that we were to have no fixed system or principle.
The' mere circumstance of the investing the deposits with the
treasury was in itself objectionable. For his part, as a part of
that Board, he should be indisposed to such investments there
tit ails and, in point of .fact, healid not think it fair to require that
vim ntry bankers should deposit securities in the Exchequer equal
. in value to the tunount of their respective issues of notes. These
hankers had two sorts of customm-; the one repaired to them
to get their notes discounted—the other, to deposit their pro.
party for seettrity ; and certainly, if a different or higher sort
.offsecurity ought to be given or one customer over the other, it
ottght not to be the former class. It was no longer doubted
that country banks were good and desirable in many respects ;
:bunt if' the principle were to be followed as recommended by the
Hon. Member, it was tolerably clear that few country titmice
• would be established. If die Legislature were, for instance, to
determine to allow the establishment of chartered banks with
a limited responsibility, then possibly some deposits might be
Omitted because the parties were asking a favour ; but in other
eases, where no favour was asked, no respectable persons would
in order 'to obtain the profits arising out of' such Banks ac-
quiesce in the regulation for locking up in this way their
property as deposits in the Exchequer. As the Honourable
Illeirthe•r had proposed this not as an amendment, but rather
as a substitute. he shotild oppose the *notion for an instruction
to this eff..et to the Comniittee„ because he felt it would unne-
cessarily limit the capitals of Country Banks, and cramp the
assistance and convenience of the public which they had hitherto
..affbrded.
SYKES could not agree in the arguments of his Hon.
Friend. ftc was sorry, for his part, that the Government had
at7itated the. question, but since- it had been agitated, he be-
lieved the other step must be taken as a matter of course. The
proposi;;,en of his Hun. Friend, ,if acted on,- would totally sap
the respCetabilityof the banking system, for what respectable
• man would submit his property and hicaccounts to the custody
of third parties, who could not have any-right to interfere in his
•• concerns
Mr. HOBIIOUSE said, he could not-see that any person in
-that ifinise who had supported the proposition of the Chancel-
lor of the Exchequer on a former night, must therefore feel in-
disposed to support the instruction now proposed by his lion.
Friend. They were not Incompatible one with the other.—
The country bankers were, in point of fact, 7tite manufacturers
.• of the coin of the country, as far as respected the currency in
country hunk notes. There could be no hardship then, in
compelling them to give those more valid securities, which
the public did not require of other persons in trade.. Did
not, however, the Bank of . England give the public an as.,
surance of security to the full amount of their issues? Ile,
objected to the practice of' rummy bankers, as had been proved,
choosing to extend their issues when corn bore a high. price.—
That should be the signal to diminish, instead of increase them.
Here there was a vital injury done to the currency, anti a ten.
chnicy created in a great part of society to speculate and over.
trade. The propose instruction to the Committee was per.
reedy in accordance with the recommendation of a late dis-
tinguished and enlightehed Member, now no more (Mr.
canto), who strongly supported the project of making bankers
vest in the Exchequer adequate securities for the notes they
issued. The business ore banker was In itself highly lucrative,
and it was fit they should be restrained from speculating be-
yond their legitimate business.. Nor would it be improper to re.
quire a disclosnre of their assets for the benefit of their cre-
ditors, as they were the only money manufacturers in the coun-
try parts of England. In tact it was high time they should be
entirely deprived of' this power of manufacturing money, which
ought alone to be vested in the Bank of England ; and t'or
these reasons he should support the instruction to the Com.
mittee..
Mr. HUSKISSON rose to correct a misconception as to the
sentiments attributed to hint, on a late occasion, in a debate on
the subject of the currency. On that occasion he had made an
allusion ton bank at Horsham where there was but one bank at
that period, which failed, and oceasioned great distress in the
neighbouring part of the countryy. • • IViieu the shock subsided.,
and was nearly forgotten, which was not long after,. a second
bank was established in that town, and this also gave way, and.
became bankrupt in the late serious diffieultiee, too generally
experienced. According to the statement of one of the vehicles
which convey to the public sentiments delivered in that House,
the bank of [lull was stated as thut to which he alluded, though
Bull had a large tratlealuirriany.banking eillablialmalts. The
. banking houses at Bull were anxtous to remove this impreesion,
and he lied bean written to by the Mayor ot' Hull on the subject,
to whom he promptly expininetrthenature of die misrepretton.
tation. .tat to the question more immediately before them, he.
could not see how the: lion; Member for-Westminster could, in
consistency with his hue vote, support the proposed instruction
to the Couunitiee. lie had never yet stated, nor was it likely
he ever should he so silly as to state, that issuing a bill for 10 or
201. • was an interference with the prerogative of the Crown ;
but he certainly thought that .putting forth 11. notes as the re,
presentative of motley, or cash, was such an interference to that
extent. There was no doubt there WAS a great deal of difficulty
arid distress experienced In obtaining the means of carrying on
trade, if 110 t of obtaining a livelihood at present; nor was it
very clear how these Banks could counteract the evil. One of
the consequences of such a measure as founding Deposit Banks
would be, diet in all cases of pressure these deposits would be
withdrawn. Again, would not the depositor of money at these
Country Banks require, and in reason require, as extensive a
security for his money ns the mere holder of Country Bank
notes? In truth, the principle if acted on would diminish the
security of the man who ought to have the more valid secu-
rity, and increase the security of' the pertain who was least enti-
tled to it. For his own part, he wished sincerely the Charter
of the Bank of England were further relaxed, and that they
could be induced to permit the establishment of chartered banks,
with a limited responsibility. Ile should hail it as an earnest
of an improved state of' credit. It was not to be perhaps. ex-
pected the Bank of England would at present make the can.
cession, but sooner or later it would arrive. As for the propo-
sition of the Hon. Member, he was sincerely of opinion, that
were the House to agree to give • this instruction to the Com.
mittee this night, our difficulties and embarrassments would be
greatly increased and aggravated to-morrow.
.. Mr. Il.01311:ktl'iiON contended that although this.country
ct ul I boast only of a much less population than France, still,
in consequence of its very extensive commercial and manufac-
turing transactions, it would require an equally extensive cur-
rency. lie feared the House was proceeding with too much
baste in passing the present Act on very imperfect infomutdon,
anti he .said he must once more intreat and implore Ministers
to pause before they reduced their dangerous theoriea into
practice.

Mr. LESTER was too favourably disposed to the present
Bill ever to permit him to suppose that it would be merely tem-
porary. He had always entertained a strong objection to the
country 51. notes not being convertible or made payable at the
place whence they were originally issued. He hoped the Bight
Hon. Gentlemen opposite would resist the importunate demand
Lade on them for their assistance by an issue of Exchequer
Bills.

Mr. NONCE concurred in the opinion laid down by the
Hon. Mentber for Hull. it was impossible that a metallic and
a paper currency could go on together simultaneously. The
present imperfect system bad a direct tendency to increase the
constant fluctuation of prices. The very Act of the 17th of
kieorge 111., which. this was intended to revive, and which was
a wholesome measute, was a temporary measure; but it was
found- to be desirable, and was subsequently rendered perma-
nent. As to many eases of Bankers lately beCome bankrupt,
they were known now to be little better than elutes of' mind-
; and it became Government, therefore, to guard the public
from depredations like these being again committed upon the
isokocent and industrious part of the community. The first
step towards this would be the establishment of the currency on
at safe and invariable basis; and the next would be accom-
plished by rendering the Country Bankers liable to a regula-
tion of this kind, for the security of their creditors..
M.IIIAHERIN hoped that his Hon. Friend would yield to
the suggestion,, of many of his friends that evening, and with-
draw his motion for an instruction. The motion would have
the effect of sanctioning the ;nuclide of giving one set of ere-
„ditors of Hankins a preference above another.
Mr. HUME replied..
The House then. divided, when there appeared for 311 r.
___,BumE's motion,
For instruction to the Committee -
Against it -.- • - - 120
Majority - -
Mr. H u NE'S motion was consequently lost. On our return.
-.to the gallery,
The CHANCELLOI . of the EXCHEQUER was stating
his objections to a clause, the insertion of which had been
~moved, as we understood, by Mr.illaberly, tocompel the Bank
do return a monthly account to the stamp Office. of the total
,11nnount of its notes ia circulation. Right Hon. Gentle-