The Sun.
London, England, 1828-06-04 00:00:00

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and recommend it to the Legislature. After all that had
been so plainly and dogmatically laid down on the subject
of the currency, it was clear now that there were no great
questions on which most persons, both within and without
those walls were so completely, as it were, learning their
lessons, as upon the circulation and the banking system.
Indeed, he felt it necessary himself to speak with diffidence
on the subject, when it appeared that as yet hardly any
principle had been established, notwithstanding the opi-
nions given to the world under the sanction of some
' men of great name—Mr. Horner, for instance, and
the Right Honourable Gentleman opposite, who was
certainly nq ordinary authority. Indeed, when it
was recollected that it had been settled by a vote of that
House during a period when they were experiencing all the
pressure of a long war, that within a few months, and that
too, when there were not perhaps more than 12,000 guineas
in gold in the kingdom, the public should return to a me-
tallic currency, and cash payments( should be resumed in a
country so extensively engaged in trade the present gene-
ration could hardly be too modest in expressing its senti-
ments, after what had been openly avowed and advocated
by many on that remarkable occasion. After the opinions
which the House had listened to from the late Vice Presi-
dent of the Board of Trade, and the Hen. Member for Car-
lisle, the House would, perhaps, be inclined to consider
jointly with himself the question was one of no small diffi-
culty. The proposition of the latter was not merely
whether the circulation of the I/. notes should be permitted
in this district, but involved a much wider question. The
deliberate depreciation of the currency by any public act
must always have the effect of startling most persons. It
had been said by some, that it might be a question whether
it might not be wise to let matters rest, rather than run the
risk of disturbing them. His Hon. Friend impressed with
a sense of the dangerous tendency of a measure of that bind,
had described depreciation of the currency as the worst
act if the worst of tyrants; yet the House would recollect
this was precisely the act of the House of Commons.
There was as much injustice in increasing the value of
money by an act of that House, as in decreasing the quan-
tity of money in the market. In this instance, he felt the
Hon. Member for Carlisle had not overstated his objec-
tion ; and perhaps if that question were to be decided over
again, the House might not come to exactly the same con.
elusion. Whatever were the difficulties of that period, we
are now out of that situation. He could not therefore
consent, to vote in favour of the committee proposed by
his Hon. Friend, if it were even limited in its inquiry to
the subject matter of the present Bill, much less if it were
intended to embrace the subject of the actual depreciation
of the currency generally within its inquiry. To such a
course he felt a decided reluctance. He should now apply
himself te the Bill before the House. The Legislature had
passed a law to put an end to the circulation of one-pound
notes in England finally next year ; and now the Right
Hon. Gentleman opposite applied for leave to bring in a
Bill te prevent the Scotch bankers' small notes from
having a concurrent circulation with Bank of England
paper in the northern counties of England. This evening
came the motion of the lion. Member for Carlisle, which
brought forward the whole question. Whether the
Legislature had been right or wrong in stopping
the circulation and putting an end to the system of
(mall notes, he would not stop to inquire, further than to
observe that if they, in doing so, had (lone wrong, this,
perhaps, was the best opportunity they had, or could have,
to retrieve their error. If they continued that restriction,
it was clear that something must be done to render it opera-
tive, for already these Scotch notes had entered Carlisle by
storm, and would be soon found on the Trent. Indeed, so
profitable was the trade in them to the bankers, that they
were sure to keep creeping southward from the northern
district, and might, in time, perhaps, reach London itself.
If we were determined to permit this to continue, as a ne-
cessary departure from our established principle, then it
would be the height of injustice to prevent English bankers
to circulate their small notes in those districts. Tae Hon.
'Wernher for Carlisle said, " Wait till that inconvenience
arises." Now, in point of fact, that Hon. Baronet's speech
admitted that an invasion of Scotch small notes had already
taken place. His lion. Friend committed a mistake in
imagining that excluding these Scotch notes from circula-
tion would be an injury to Carlisle; in point of fact, their
-resumption would only inconvenience Scotch bankers, who
would have to takethemnp, as a consequence of their ceas-
ing to pass in the districts from whence it was intended
to dispossess them. (Hear.) On them, and not on the
English country bankers, would the inconvenience fall.
The estimate of that expellee and inconvenience he thought
had been much exaggerated by the Hon. Baronet. Sup-
posing there were 2,000,0001. sterling of Scotch notes in
circulation in these districts, and 100,0001. worth were
reserved in those banks for the purposes of exchange or re-
deeming them as oecasion might require, their number
would he in proportion so many less. His own opi-
nion, however, was, that the Hon. Baronet's estimate
was short by perhaps a million or a million and half
if small notes. That, however, was a matter of mere
conjecture. The operation of reducing these notes into
specie or withdrawing them from circulation would be
likely to be attended with considerable local distress. How-
ever, it was far different from a country bank withdraw-
ing its issue, where, if only to the amount of 10,000/.
it was so much withdrawn altogether front the capital and
I trade of the place, and which could not be recruited speedily
or replaced. But the legislature had previded against the
evils to be apprehended ; and the bankers had all been, as
well as others, preparing for the event. The rush of par-
ties for the advance of Exchequer Bill's pending the com-
mercial embarrassments was not so very formidable as
might have been expected amidst a class of persons, who,
it was well known, would have been glad of ten times that
amount to relieve them from the inconveniences they expe-
rienced. The next question that arose was, whether this
sum, or rather the notes to the amount of—say 10,000/. in,
a particular district—were wanted ; for if not, it was cer-
tainly a waste of capital. Taking the whole issue of these
banks at 6,000,000/. or 8,000,0001., they had better be
withdrawn from circulation. He placed a decidedly higher
value on the circulation of country banks' paper than a si-
milar and equal circulation of branch bank of England
paper. (Hear.) The former accemmodated and assisted,
from its local knowledge, those small traders and capitalists
who were deserving of such assistance, whilst the branch
banks of England continually kept sending up deposits of
property to the great depot in the metropolis. Although
it accommodated those parties, it certainly (lid not accom-
modate them in the same way, or so effectually. lie
would confess, he was for getting back to the safe state of
currency. Much injury had already been occasioned,
through the insecurity of banking establishments, to both
debtors and creditors. Their duty was to endeavour to
cheapen money, and keep out the paper currency; and
above all, they should never be tempted to depart from the
safe practice so often recommended, but from which they
had departed in 1825. With all tbis there was to be ob-
served great caution lest they should by legislative enact-
ments cramp the currency too much for trade. Under all
circumstances, if security could be had against an over
issue, he considered that country bank paper was the safest
to be continued in circulation. The next important object
to be secured was the certainty of the convertibility of this
paper circulation into specie; he did not mean a legal con-
vertibility, but the ability readily to turn it into cash
whenever necessary or desirable. No person could exactly
say what bullion or specie was necessarily required to carry
on our monied transactions in a country of such varied ap-
plication of capital. As times altered the quantity would
also alter. When saturated with a metallic circulation, it
could always supply sufficient to maintain, in specie, its
engagements in foreign commerce out (4, the surplus.
They should never, in any instance, adopfties expedient
of banishing gold from circulation, and Wank paper.
The cases of Scotland and Ireland, alludes, es, were
most fallacious ; what would be, perhaps, found a safe
pr.tctice in one country would not be found so in the other.
Much of the evil now felt had arisen out of the suspension
of cash payments in England subsequently to 1797. As
far as credit was ooncerned, these banks in Scotland were
like our own, only they were considered, and with justice,
more secure, not involving frequently as our country banks,
the labouring and lower classes in ruin, who were so very
ill-able to it.bearperrnisit:n to spin WS ought
innotmtoonaeylloawndanseynpderistonfos
the state the
to the public. Such a practice would be ruinous and
monstrous. It was to a certain extent permitted in paper
issues in the smaller towns as a convenience to trade now:
but whenever the renewal of the Bank Charter was under
consideration, they would do well to take care and Ile the
banking system of the country on a permanently solid
foundation, as far as was attainable by human sreacity
and prudence. Some allusion had been made to hail as
if lie bad been an advocate for depreciating the currency
by the introduction of a silver currency.
Mr. F. LEWIS had only intended his observations
should apply to the necessity of establishing a gold and
silver standard together.
Mr. BARING resumed.—Before 1778, it wa.s allowed
any person to carry gold or silver to the Mint, and have
it coined there. Insensibly our coin became by these
means depreciated. The consequence was, the silver coin
became very abundant, and the Mint being closed, gold
became the standard of the currency and of value. The
debtor paid in silver as the cheapest and most profitable
mode; and an Act of Farlitnent was passed to alter the I
practice. The necessity of it was shown by an able pam-
phlet, published at that day by the present Lord Liverpool's
father. The pound weight of silver could be procured
now at 59e. 6d., whilst it could be coined into shillings