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

Majesty's Ministers for not declaring their intention to
abide by the previous resolutions of the House, I entirely
dissent. I think it would be as inexpedient as unneces-
sary for the Government to declare at the opening of each
Session the laws to which they mean to adhere. I think,
with all the business this House has to dispose of, it would
only embarrass its course fer the Government to take such
a step, and, that it would, he far more conducive to the ge-
neral interest to confine itself to declarations respecting
such measures, and upon such subjects only as come before
the House to be dealt with.—(Elear, hear.)--And, Sir, if
this be good in ordinary cases, how much snore so in a
question of so moth delicacy as this—one upon which
there hei been so much discussion throughout the country;
and upon which 'so much apprehension and anxiety are felt,
both as to the measnresitself, and its probable results?—
(Hear.)—I am sure, Sir, that the House will do me the
justice to admit, that when I was called upon to state the
views of the Government upon the subject, I did so most
crplicitly.---(Hear.)—l said then, as 1 say now, that we are
determined to adhere to the resolutions of the, Parliament
in 1819, respecting a return to cash payments, and the
, pill of 1826, restricting the_ circulation pf small notes.
(Cheers.) We are most anxious, Sir, to guard-against
any impression upon the minds of the community, that
any change is in the contemplation of. Gevernment in this
respect ; and I ass sorry to say, that reprehensible means
have been taken to create such an impression. There
never was a question upon which so many of the arts of
misrepresentation have been employed to deceive the coun-
try ; and I think that I cannot do a service more useful to
the country, or more acceptable to the House, than to put
it in possession of the-real state and bearings of the law,
upon which the House will have to form a AecisiOn. In
order to accomplish this purpose, I will, in the first place,
endeavour to bring before the House the number of small
notes in circulation. Secondly, I will call to the recol-
lection of the House what appears to me to have been for-
gotten, the real operation of the law of 1826. And next,
I will endeavour to show what means the country possesses
for effecting the restoration of a metallic -circulation, which
it was the object of the law of 1826 to establish at some
period. (Hear, hear, hear.) With reference to the first
branch of my subject, it appears to me, Sir, that in the
several Acts passed for the regulation of the issue Of small_
noel% there was one great defect. It is their not having
applied to the circulation of those notes some regulation
by which Parliament and the country might know the
amount issued. (Hear, hear, hear.) Many evils, there.
fore, have resulted to the country from this-omission.
Persons in different parts of the country engaged in -a
similar manner, have gone on issuing their notes, without
any knowledge of the *mount of issues of each other—
which knowledge would, and ought undoubtedly to govern
their conduct. From such an evil, we have at this moment
no other means of. rescuing ourselves, than by endavouring
to form a calculation from such data as we have access to,
. correcting .t)!at calculation by such partial information as
we may from time to time obtain. The House will, there-
fore, pardon me, if I detail minutely the particulars upon
which I rest my .calculation.—(Hear.) The Mouse is
aware that, by the Act, each note after it has been in cir-
culation fur three years, is not liable to be re-issued. If,
therefore, the notes of the Country Bankers did not circus ,
late for longer than the period prescribed, by taking the
amount of stamps issued in any three years, we should have
the amount iu, circulation for that period. But, it has
been found that these notes circulate for a longer period
than that prescribed by law.--(Hear, hear.) And, I
believe, Sir, that a Country Banker's note, taking. one
with another, circulates during a period of about four
years. I have accordingly taken the duration of four years
as the basis of my. calculation. Thus in 1822,1823, 1824,
and 1825, there was a circulation •to the amount of
9400,000/." of the small notes. But, those who are con-
versant with the business of Country Bankers will admit
that a deduction must be made from the amount of stamps
issued for the amount of notes which bankers retain in
hand. And I understand, Sir, from those upon whose ex-
perience I can rely, that this amount is from one-fourth to
one-third of the whole. I will confine myself in my cal-
culation to one-fifth, which. will give a more unfavourable
view of the side of the question which I entertain.
Deducting, therefore, from £9,700,000
1,900,000
£7,800,000
is the result. Thus, it appears, the total of Country Bank
Notes under 51. in circulation on the Ist of January, 1826,
tvua 7,500,000/. The calculation, then, -which we have
to make is, what portion of this 7,800,0001. will be in cir-
culation when the law of 1226 will begin to take effect.
For this purpose we must first deduct the circulation of
Scotland. In the Report. upon the.paper currency -of-that
country, it appears- that 2,000,000/. is about the amount
of circulation of small notes; and this amount is
,founded
upon a data more accurate than we have to refer to, be-
cause' the issuers of notes in that country fairly stated the
, Amount themselves to the Chairman. But to this number
R,00m001., we must add the proportion of notes, not
in eiscaslation, remaining in the hands of the
.bankers.
This we midst gke at 400,000/. But, again, from these
notes must be tistobaesteid a certain number of unstamped
notes in circulation, to the Amount of 700,0001. The gal,
enlation will, therkfore, stand thus
Circulation of Scotland
Deduct, unstamped '700,000

Bslance„.,,.
This will he the probable amount of the citculation for
Scotland, which is to be deducted from the whole circula-
tion for Great Britain, £7,900,000
1,700,000
£6,100,000
which must be taken. as the total number of small notes in
circulation in Great Britain on tLe tist of January, 1826.
But, Sir, this •is the calculation of notes in circulation
prev-iously to the alarm of 1825 and 1826 and it appears
by tl►e best accounts that a great number of notes were ills,
credited at that time by the failure of the Banks which
issued them ; and a:2o.y were returned to the Stamp Office.
to be destroyed, not having been issued. 'l'l►e amount rif
these may be fairly stated at
£2,750,000 •
And not less than £ 1,300,000
must be taken, as likely to be withdrawn from the cirett•
lation subsequently to 1826 until 1829. Ido not found
this conjecture upon mere.imagination, but upon the best
informat►on of Country Bankers, who have been gradually
withdrawing, ,notes from circulation since 1826. The
computation then is..—
Scotch circulation
Discredited, worn out, &c. ,„.„ 2,750,000
Withdrawn from 1826 to 1829 . 1,300,000

Total X 6,150,000
To he &a neted from the entire circulation of Great Britain,
X 1,400,000

.5,750,000

Leaving --X2,050,000 •
as the amount of smal?nntes—say, 2,100,000/. at present
in' circulation is England, and to come under tie operation
orthe Act of 1826. lam aware I shall be told, sir, that
all this is mere matter of calculation..--(Hear,, hear.)-
1" 16,33 quite 'prepared for that objection. But if we re-
sort to another process of calculation, and find that by
another roiti ;•7e arrive at nearly' the same result, then,
Sir, I think we sisa3 Ipive the strongest additional confir-
mation of the truth' of the gale:dation. I will show, Sir,
that 014 is the case, and that &ow another basis we reach the
same point. I think, Sir, it may be caZce,lated that in April,
1829, there wily he no notes in circulation of date ante-
cedent to the Ist Jan., r 825.• Those notes being Mfg e ne-
rally in circulation owing fc the contraction of the issues,
and the .eircumstance of there being no new notes, will be
innch Mare 'worn than ordinary, and that against the sup:
position of their standing out longer in circulation than the
usual period. , 'rating 1,4 e Aumber of notes issued, tiled,
from January, 1825, to February, )821i, at 3,292,081/.
ind deducting from that amount, gene ont of circulation,
from failure of Banks, X 592,000
.
Cancelled ez Stamp Office '72,000
Scotch Notes wiCad raw n 216,000

.fBBo:beleeifrtcoufl2at,4ioonoo,f6ooj.
England.
. .
it will
Thu be
JBBO,OOO
—s
itAs ijthaleansroa,e willnotea))
seen by these two sets lit calculation the results a ' "
X2,1000)0 and £2,400,000. -'..
Under these circumstances the House will not, I think, I
object to my taking two millions tom' a half as the amount
with which the AO of Parliament ,for the
restriction of the
Small Note currency i have to deal in a 829. Ruing
disposed of that branch.olthe subject, I Propose next to ad_
cirrss myself to a question of the litmoss importance, with,
refereuce to the provisions of the Bill to 'ctideb I allude.'
It has been, said, Sir, and studiously
circulated 'for the.
purposes of creating alarm and distruit, that after _the 4th
of April, /829, every note will he waste paper—that the,
party holding a promissory note under ird. after that day
can have nu value for it, since it cannot legally circulate.
Now, sir, 'this is arguing as if all circulation of these notes'
were to cease in one day. Bnt this is not the case. The
Bill provides against then-cue only of notes after that day,
trit it equally prescribes the circulation, and provides not
for the cancelling, but for the gradual and almost imper-
ceptible extinction oUthem. The House wills ee how
great a difference this makes in the question.--(Hear,
hear.)—lf all the notes were to be thrown out in one flay,
there would.be a general stoppage of the circulation. Put
when it appears that the law provides for their continuance
" in circulation? for as long as they will endure in the 'lands