The Sun.
London, England, 1826-03-15 00:00:00

MANCHESTER PETITION.

The Marquis of LANSDOWN also presented a petition
in favour of the Promissory Note Bill, from the Chamber ni.
Commerce of Blanchester, and observed, that the petition of
such a body of men, connected as they were with the trade of a
part of the country which had the advantage of enjoying a me-
tallic currency, must be considered toi of very considerable im-
portance in considering this queition.
The Earl of LAUDEItDik LE observed that the Gentlemen
who had signed this petition said that there were no local
notes issued in Manchester, but the circulation of Manches-
ter principally consiiited of notes !sped at different places
within seven, eight, or nine miles of Manchester. He held
in his hand specimens of five of these which had been issued
within twelve miles of that town. These notes were eVen pay-
able in Manchester, where there were agents who were lip-
pointed far the purpose of cashing them, and they formed, in
fact, the principal medium of circulation among the trades-
people of Manchester.
The Marquis of LANSDOWN said, he had no local know
ledge of Manchester. The manufacturers had evidently been
sensible of the mischief attending the circulation of bank notes,
had opposed themselves to the establishment of such banks in
the town, and had 'done every thing in their power to prevent
the adoption of such a circulation.
The Earl of LIVERPOOL, in confirmation of what the
Noble Marquis (of Lanadown) had said, stated that he had
communicated recently with a most respectable deputation from
that part of the country, and that they most decidedly corn-
killed of the attempts to push these notes into circulation, and
prayed for a ;metallic currency. In one point of view the asser-
tion of the Noble' Earl (of' Lauderdale) presented a very forcible
argument in support of the measure which had been adopted
by Ministers ; for it showed how difficult it was, if one pound
notes were, alloWed to circulate in one part of the country, to
prevent their circulation in another. It formed a strong reason
why the Act should pass.
The Petition was then laid on the table.

PROM ISSORY BILL.
The Order of the Day having been read,
The Earl of LIVERPOOL said, that in moving the second
reading of the Promissory Notes pursuant to his notice,
it would not be necessary that he should occupy much of their
Lordships' time, for he had ffilly explained its nature on the hest
day of the Session, as well as when he bad introdnced the mea.
sure respecting the Bank Charter. On this latter occasion ha
had indeed entered more at large into the details of the prevent
Bill than into those of the measure which he was actually pro-
posing, as the subject was more complicated and more likely to
create discussion. It might be matter of convenience however
to state, that the present 11111 was entirely confined. to Eng-
land, and that its object was to abolbh all notes under five
pounds. Ile had been asked on a former occasion whether it
was intended to extend the measure to Scotland and Ireland,
and he had answered in the affirmative, adding that a longer
interval would be allowed for its operalion. He should now
State, that if the present Bill met with the assent of their Lord-
ships, on Friday neit, 'he should move that a Select Caumnittee
be appointed to inquire into the state of the banking system in
Scotland and Ireland. Ile should not do this from any doubt
of the expediency of the extension of the measure to those
countries, but because on a subject of so much importance,
and on which so deep a feeling bad displayed itself, he thought
it but just that the amplest investigation should take place.
He should now move that the Bill before the House should be
read a second _

The Earl of CAERNA RVON objected to,the measure on
account of the time and circumstances under which it bad been
introduced, and on the ground that in a country possessing an
extended trade like this, a paper currency founded on a me.
Milk one was not only the safest, but one calculated to prevent
that rise of commercial prices under which the nation had aur-
icled., As to the time, if it had tended to relieve the existing
Pressure, he would have hesitated in giving it his opposition,
but it was distinctly admitted to have no connection whatever
with that
.pressure, and was only intended to meet future
contingencies. Now he should always object to establishing
a permanent system under the spur of momentary circum.
stances. The announcement of this measure had produced so
breat an effect on the public, that his Blajesty's Ministers had
een compelled almost immediately to introduce another of
a counteracting natures. lint even this ought to have been
done earlier. As to the period allowed for the completion
of the measure, it would he better if the whole operation
were allowed to take place at once, instead of being spread
out, like the return to gold payments in 1019, over an expanse
of three years. limier the present Bill six or eight millions
must be drawnout of the circulation of England, or ten or
twelve out of that of the whole empire, which could not fail to
increase instead of alleviating distress. What objection could
there le to notes issued by chartered banks, if those banks
could once be established in this country on the same footing
as in Scotland ? And could not that be effected by an arrange-
ment with the Rank to induce it to resign its exclusive prise-
lege before 1833 ? IVoult) it not be fully as wise at least us the:
present design, to place ale currency on that footing which had
been found ntost satisfactory in Scotland for a whole century, 1
and toiler which that country had escaped sharing in the
distresses of the period ? The Noble Earl then asked their
Lordships wiiether before one and two pound notes had been
introduced and guineas alone were in circulation, many him.
veniences bad not arisen from the practice of clipping or sweat-
ing them, and from the inducements which they held out to
highway robberies? Scarcely any sum could be paid with.
out your guineas being weighed and objected to, whilst on
the contrary as soon as paper came in, all was ease and
convenience. The notes of the Clank of England when
issued at a
tsr
possessed
oh:el:L:140e
cwr,otteivsli:
well-regulated
en
thetc; binp:itteerljticncat:tv;erirl
were
eet
country,
currency,
itiniezdlopintfhevox
erywgi
iblaeodtseoo,ckt
otoetbind.
eutvi
Aame
Rt feelingse is eotfitipoeon sp
people
en
who
inced
tha
table, and
ntilleeett
them
mir
sele4owtdhaattilpwiterletio
tkhe
iflitse
upon
ditisutsregecoP"ntecitlibelrealwilitloivjetirstre,rththritielihnipis:tivotYrery, it4s,nyrtsttitcsime7inadeatnpdtohliircsteyye.
yle7aietrts:,t,h.rellainrii,yelCattl:haleth ity(P':eilletc4r.nkcitettattiog e such advancers in prosperity,
Id Prevent the exertion of that spirit of speculation
and which Fumbled to carry. her still higher up the
scaleeprwPiiliferity. but this was said to be its object. It was
or obtained so solid an iticreaSe &trite capital. The proposed
:'to prevent the recurrence of over speculation and over
not
intended
tde.

Pnicz SEVIMPENCE

trading; now he had calculated the average
excess
in the
iircu•
lacing medium for the last three veers, an he had found it to be
six millions end a half. Could that be the cause of such .ex tert-
eivedistress, which, after beginning at New York, had ame
t
n
over this country, aml now ravaging the North of fiermauy.-
Anti could the abolition of one and two pound notes operate as
a remedy ? The Noble Earl must have imagined
,that the
whole of this excess of .currency consisted of one and two
pound notes; but it appeared from the returns on their Lord.
skips' table' that the whole of the :tame, in' thote notes amount.
ed to only 1a3f1,000/. from which, if 2011,000/., the extent to
which the Bank of England had diminished its issues in mall
notes, were withdrawn, the real average would be found not to
exceed' 1,540,0001. Could the abstraction of so small a pardon
of the currency do any good ? If it were abstracted,' one half
of it wouldstill be supplied in paper in some shape or other. Ire
trusted lie had shown sufficient cause to their bordshirite•to
pause ere they adopted such a measure, and with that view of
tite subject he should move as an Amendment that the word
" now' be left out, and the following words—" this day sit
months," be inserted in its place.
• Earl DA RNLEY approved of the measure, because it was
the duty of the Government to protect the labouring theses
,against it recurrence of the -distress produced by the stoppage
of so many Banks, by establishing over the whole count!), the
same system of currency which 'prevailed in the metropolis.
lie should therefore vote for the Bill, with the conviction that
it would contribute to the welfare and prosperity of thecoun-
try . With respect to the other measures which hie been
adopted to relieve the, difficulties of the period, whatever might.
be their result, and even if it should prove effiTtual, he must
consider it as a mistake on the part of his Majesty's Ministers
not to have made at once an issue of Exchequer Bills. That
would have been the most easy and effective mode.
After a few words its explanation by the Earl of
RICK,
The Earl of LIVERPOOL stated, that it was not frim
attachment to his own measures that he was expreising
that opinion, but that he was satisfied that if ever he had
rendered any service to his country, he had never demi her
more than when he resisted the late application for an issue
of Exchequer Bills. Had the measure been adopted, no
future case of distress would have occurred without the
people looking solely for aid to the Gover-Acta.' 'The in-
stance of seventeen hundred and ninety-three was a moat cala-
mitous one, by establishing for the first time a president, which
even now, when there could be no pretence for political causes
or visitations beyond the power and foresight amen, but whets
it was admitted by all that the existing distress sprang from
overtrading, the Government were called upon to follow. 'But
sbceooenuf n
atrrielyfuwi ssoesdit:
osthirl
the application
rtchien rddiuni having
tyc,u tlilee :Mi. to.
fef alt :nee:
Exchequer
Governments
Had such an issue taken place, the relief would have gone into
very different hands from those to which it had been adminis-
tered. Indeed the ground on which it was claimed by those
most urgent for such a remedy, was precisely the atrongest
ground against it. That ground was aecresy. Now lie thought
on the contrary, that if relief were given, 'the name of those
to whom it was given ought to be publicly known, as a
check to speculation. He had seen the effect produced by
the course adopted. Many had prefetred not applying for
rJief to doing it openly, whilst the great manufacturers in the
country had constantly declared that they wanted no aecresy,
and were ready to take the remedy in the manner in which
it was aftbrded. It would have been better, if from the
beginning the same forward course had been pursued. The
Bank was empowered by its charter and by a law to do so. and
if its operations had been Impeded by its arrangements with the
Government, she might have been relieved from them, as it was
now proposed to do. lie well knew that had he and his Collea-
gues been desirous of securing an easy Session, Which he allow.
ed was an object of no small importance, they had only to grant
an issue of Exchequer Bills. They Would then have been the
best counsellors that the Crown had ever had, and from the be.
ginning of the Session to its close not one complaint would have
been heard. With respect to what had fallen from the Noble
Earl who had moved the amendment, he should make but very
few brief observations. He was as much interested as that
Noble Earl could be in the suppression of tighway robberies,
having suffered from one himself when he was a school-boy :
but instead of atttibuting that suppression to the existence of a
paper currency, he thought that it was more intimately con-
nected with a measure which he had been instrumental in car-
rying into effect when he was at the head of the Home Depth-
mem, he meant the establishment of the general !bohemia which
he would add the enclosure of almost all the commons in the
kingdom. The Noble Earl then' stated that the nieesure which
he had lately introduced to improve the system of banking In
this country already promised to have a snore rapid edict than
when he had brought it forward. It was said that we might
have here the security of Chartered Banks as in Scotland, but
that was not the case, for even if the Bank of Englabd were to
give up the whole of its exclusive privileges, those Banks could
not enjoy the advantage which that of Scotland possessed, of
receiving support from that of England and communicetiog with
this country. We should however, have a more efficient Bank•
ingSystem than we at present enjoyed. In all the conversation%
which he had with country Bankers, he had found that the
most substantial of them said that one and two pound notes were
no, object to them, and that they would be as well pleased
to be without them as with them. It was only the inferior and
insecure Banks that existed on the ciranlation of small notes...-
These would be extinguished by the measure, and as their
existence only served to endanger the other Banks, their extinc-
tion would prove a general benefit. Parliament Imre bound to
guard against those great and sudden convulsions which, though
in the long run they Wight not affect the wealth ofthe country,
produced individual distress and demoralization. In London
and Liverpool, and the whole of Lancashire, a metallic cur.
rency already existed. Now the Customs paid in at those
two cities formed three-fourths of those of all England. The
Customs of Liverpool alone were equal to those of all Eng-
land,. with the exception ethnic of London, whilst the Excise'
at those places produced three-fifths of that of all England. It'
in those cities and districts nothing but a metallic circulation
prevailed,ayhy should it be thought impossible to extend it to
the whole country. With respect to the bolded interest, he
conceived that its outlining* had been still greater than those
of the manufacturing districts. As to the present instance, it
was not an experiment—it was on the contrary a mere retort to
the state of currency Which existed in England, before the rpe.
striction of 1797 had been passed, and hadinooduted eke pew
system. Under all these ciremnstances, he trusted that .the
House would read the_ present Bill a second time.
The Earl of lat UDERDALE agreed with much that hid
fallen from the Noble Earl, as he hat most clearly demenstrat.
ea the superiority of the banking system in Bcotlant.4oter that
which existed, or might even exist in England. He would tell
that Noble Earl wbyaroch a system could
,not be established in
England—because It was founded on the practice of ages; and
could not he created at once by Act of Parliament. He aid not
object to the nature of the measure before the Haute, :but to
the time of calamity at which It hail been introduced. it was-a
cruel thing to adopt it at such a moment.
The Earl of LIVERPOOL recollected perfectly the dis-
tinction which he had made between the system of banking its
England anti that long wince established in Scotland, andhe
trusted' that his Noble. Friend would be able to chew hew the
Scotch banking system could go on, without dependence on the
Bank ofErighttub La_

The Earl of IA UDEBDAI4E should be prepared, whin
the time 'should come, to satisfy the Noble Earl that the Scotch
banking system required no dependence on the mink of Lag.
land. If one of the Scotch banks had lent for luo,oool. Item
that of England during the late commercial distresses, sums to
a much larger amounChad been remitted from Scotland to aid
and relieve the English banks.
The tarla of DAHNLRY and LIVESPOOI. bavtu mutually
explained,
The Amendment was negatived without a division, and the
Bill was read a second tio7e.—A4journed at Nix; o'CLucc