The Sun.
London, England, 1844-05-21 00:00:00

nication with private individuals on such n,'e,
If in the subsequent communications which I,s'
had with such parties they had seen reason.
their views, they would have had no areal.
proposing the necessary alterations, but ,11311
the opportunity of communication, he Nvast,b°'
t,
say, that the Government saw no reason Ivil3#
modify the plan which he had proposed on 0
All the principles he then laid down he W rf',
to stand by ; he had seen the proprietors
Stock, the Direct Ors of the Bank, represen,eo
joint-stock and private banks, and he was nrer?
to say that the Government felt any wilb,„;;,,
depart from the plan proposed; and he 0
the sense of the House upon that Plan to'
ginally proposed. But there were a few °bow,
on the details of the plan which he must n°
°f
Vie;
land had proposed that the issues of the Bank R°.
land should he made partly on see-r 'tie'
partly on bullion ; the issue on sear'
he limited to 14,000,0001., and the ms's
on bullion. But there might be circa
in which the Bank might be requirtdwii.
crease its issues ; supposing that the sireSule
private joint-stock banks should, from "utl,';f,
voluntary agreements, be reduced from eig.hgtt be
to four millions a month, the Bank In.' to
quired to increase its issues in order,
ply the void thus created. That issuetilt'
posed should be made upon securities,. ,prp
after a communication made to the (I°',i` oi
and with the consent of the First Lf„uer.
Treasury, the Chancellor of the
the President of the Board of Trade: t
not reserve that power from any distriJnieel'
principles he had laid down, but to ,e le4
particular case of the concession on ht'' ptt
banks of issue, and the necessity of t'e,
England, supplying the deficiency with itsfieii:
At the same time he considered it advisaw Attof
sible, to prevent all interference in this Took
the part either of the Executive or the ne15:40,
Government. Yet, at the same time he,:he?',
it would not be advisable to give the Ban' t,
by law of increasing its circulation excePt
tfcs
cases. He was not quite clear that in evetbe
‘v hich there should be a void created bib, r
drawal of other circulation, it ought t°, cir°,
ptciaooswne• r
too
nboefsaesetuihtrei,s.ti.aeßss._aatnk to increase c'-upposs,
securities.—(Hear,
that
hear.
amount of bullion (about sixteen mill)itoluneiliteliel;
of the Bank, the Bank would have A CV;
about thirty millions—namely, sixteen
bullion and fourteen millions in securitletsidlig:4s
the circulation of the sixteen millions °1
greater part would be dormant in the nelol
the Bank, for about twenty-two millions vroo
that would be required for the circuls.e'octlsol
country. Now, in such a case, if a void *,,itiooo
—say in Cornwall, for instance—by the 01,0
of 200,0001. of country bank notes froni
he was not prepared to say that the 10
once to increase its circulation UP°D4/,55
but if hereafter it should be ne''' '4
the Bank to increase its circulation to c"0
tities, he thought that there should be /111 it rr
upon that power. He therefore proPc"tted4is,,
preamble of the clause to recite what rf,
opinion of Parliament would justify' t".eie":::'
increasing its issue on securities. These "tbe
the failure of a country bank ; secondlY6,.
drawal by a country bank of its :10
thirdly, an undertaking on the r-cgc. lv,ool
country bank to withdraw its ao3oi,
if the Bank of England would substitut,e,ri'bi4 rep,
the room of those of the country bank into
-
in the preamble would show what NvasLk,
of Parliament. He proposed that the P"ticterty
it should consider it desirable to make an "cie 14146
its circulation, should not be permitted tcti.eale
cept upon application to the Executive urt:',Der,;,
and that such consent should; be given I:4#
jesty in Council, such consent t../7°,,,i0',..14
lished immediately afterwards in the -10111';11
He preferred that to giving power to the toyo
any circumstances to increase its issues/ 00i'
was certain that while the present inapt° 09
Bank continued, that power would not beeboclo,
vantage of; but it was desirable to have, i!,,tioc, Vt
he therefore proposed that they should L:00 O'
their securities, except with the saneti se vjo/
Council, and not to permit an iner7,6oo
curities, except on the distinct con, 0, 011
the amount of all securities sh°ll,,
teed two-thirds of the amount of ione'lielpaii
--that the issues on the increase of secnrlsed
be in conformity with the original principle,thirpoi
be reserved if the bullion amounted to one;.gtenrbi
total issues. There was another point °h .d,
portance connected with the issues of t 1,0
England, to which he did not advert on thiepiti°,4o
sion. The question was, wind WAS the le sil'ot?
" bullion ?"—(Hear)—whether did it inch', oe '1
well as gold, and whether the Bank could the rep
or silver as well as gold. It appeared froon;-,,e
made by the Bank, that with them bon'
silver as well as gold. Should they inelliod,
the amount of bullion upon which it sh°°; ;0,1,0
for the Bank to issue notes. This was yell
They had not entered into any engage they,
Bank on the subject, so that dirt
perfectly free. He knew their strict an cobs?
herence to the principle laid down woul,(1„e, lie,'
issue of notes to the possession of gold 91°"0 111°Y
limited the issues to the possession of gt.°thereia'
would not necessarily deprive the Bank °, lit 1101
sion of silver, because the Bank in,'grdi ;)
priate a portion of the banking r,u,e,
possession of silver ; and abate si°,ive '!'s,
banking department ; but as this would I° ea%)
to e 5 bte
turn, he thought it was hardly fair eeliEC,
Bank would accede to it, however teptet`iite
their views might be. If they Prevpoils,
Bank issuing any portion of their 13°11 bolti
they must expect the Bank woulu on'
t g;
little silver for the public accomnl° ohjec'o9'
had given some consideration to thems
he believed that considerable inconvenifro 15,;11,'
if they altogether prevented the 13sillivnekr.
rejslte;,Fc,siFi'o",
any portion of their notes upon
now speaking of any compromise of the g
that gold was the only standard. The °v) ld.
'tient by the Bank should be in ilialv9s,"iff#
person presented 501. in notes he ah°ll,;fliet'Aght
to demand fifty sovereigns in gold, an". A r ils 1
of the real standard weight, he should ttansyc
demand notes in exchange. The 70 offiit,,s
the public with the Bank, s° anreifeter
was concerned, should be perfect
making a reduction of about 130,clio0FP9„0
in the gold to be delivered in - tbt
notes, and the gold to be received fr°illeativ'%.
upon the demand of a person 1,61:45,11-1
notes. That was to say eyehe "'oil, Jo
should have a right to sell gold to the
demand payment in notes, receiving' ,";510!,001,e:
ounce for gold he presented, and that be 510!4
right to demand gold in exchang e thus ae 10
receiving at the rate of 31. 17s. 10io', e Pve
d. for the expense of coinage. of e° fast 'to`le
posed to make no alteration whatever ins richt
Every man was to be unfettered in Neer the )+I
mand gold in exchange for his notes. ,UnQP4
tion was, should he permit partial fsill'e.toti`f
the Bank with respect to the receiving ° 5010
hoped the country would not admit thee otoi
of silver for gold, but at the sall' svbiehe3st('i
were exposed to the inconvenience the #0000?
from other countries adopting silver reef hi 3
At present the silver was sent out °two tiels
itjo
in exchange for gold, and the gold „it the
in the Bank. If they would Peri-reeei`;',, pS,
to pay those who were willing t° opeu!ce,O,'l,l
silver, when the Bank thought it oat 41011,i
do so, the charge of that export and ilnr,iiver 00°4
saved. There was another reason whYlees ereiiier4
not be altogether excluded. Reinitta“,rote
made to a very considerable exprteenitentleclvoutililt bett:ol
and China in silver. If they
from issuing silver alb gether,
demand for it in this country'%afitries'dollif
leek a market in foreign, evr„, con. we #
again, there was a great facility of t 11104,00
universal transactions with some Par` in be optito
particularly with India and Chili(' the„ela
stock of silver. If a WY, he ll'eceo,lle
of.. getting silver from the 130-111" Were 0,1 to "01,1
enabled to get remittances when tiley, ;It iv° 01:
from India or China, inAtead of hav!t!ia tot
the
Continent for it. It appeared to n_l_l'initedll'ttestl,iih
give facilities to commerce, if they silver,,it rod
to issue some portion of its notes 11137 be (:,i'er rlO,
silver as a valuable commodity, _t% 1100
according to the option of the vale
thereand
1.114
now ceased to he a standard ;no "referel'e'r,
gether. Formerly ss. 2d. In DO, 5 $ 1/I.te
Mint price for silver, but there vas va4tesi
now to that standard. Their silynerot_cdoetralslofielitsr; jetir
ittosk
e2da.manouonutnocef
idei;ltitibottiel,“rbt
tae of
to 405.; at the same time he toe re
be a great advantage in having tn. gore(
in this country which would be us,nuelitil I.tioch
cation of the exchange. He wa,s,ol joie ara o'n4rta
that the Bank should be allowed
tit tint tiPtiise,foll,he
its notes upon silver, but that the u:'__eed o
it should s'J issue notes should not x'
on gold,
of the amount which it issued uP_ for st
Bank should issue notes uP°_", eilve`iricr‘sv
of gold and one million u_dry ,e
then if the Bank found it neee",,,,easilonfett j
lossts supplysastai
noefdgold, h
ei t
conversion fcgb e.thr_ee_atroiii
eeuvelsettlyili;o4toothiel
into gold, because no legal demand, °n the
be satisfied in silver; the Bank must, veotif.),'!eeeis` t
'ts On lie r
risk of the loss sustained by 1 „ Alai! the 8. -15
requiring that gold, and gold alot",:iiiiing "oi,
in payment of a debt—still rn, 11'` faeasnoce Valito
principle upon which this to an
founded, he proposed to exchange',
this advantage in rectifying tne