The Sun.
London, England, 1819-05-22 00:00:00

RETURN TO A 111.:Li.I.LIC CURRENCY.

The Older of the Day tnr their Lordshin3' tak-
ing the tounded upon the Report in-
to consitFeration. benteteati,

The Earl of ElAKtsowsY, pursuant to his no-
tice, rose to Move t,r their Lordships agreeing
to the saute. The Noble President, in a short in-
troductory speech (very little or front the
evident indtsposition under which his Lordship
I,thooted, could he satisfactorily beard below the
bar) recommenr:ed the adoption of the Res()lo-
ti.4ns, as presentioe, the must salutary and least
ir,extivion‘thle way. wider the present circum-
stanees of the country, for a gradual return to
the alcient and long establi-shed currency of the
count ry. The propo:e4l plan tvent by gradual
and regular means to effect so important art end,
and preclude a mode which may fairly be ques-
ii„nahle, as highly i furious, namely, an attempt
-at too rapid a resumption of cash ryments. In
concluding, the Noble Earl apologized, from his
state of health that eveping, for his inability to
enter upon a detailed view of the-subject ; and
moved their Lordships' acquiescence in the Reso-
lutions.

The Earl of LAUDERDALE, after expressing, his
regret at the Noble President's state of health,
and seeming at present to deprecate Wiletarhed
discussion of the subject, tinned an Amendment
to the Motion for agreeing to thr Resolutions, to
leave out all after the word " That,"' for the
purposelof introducing a string of Counter Reso-
lutions, deducing widely dilf dent conclusions:
from what had appeared before their Lordships',
Corninittee, and these the Noble Earl moved
should be agreed to by the House, in the way of.
AMendment.

Earl GREY prOposed, 'as the most advisable
con se in the present state of the question, that
the Resolution proposed by his Noble Friend
should be printed and lie over for discussion to
some future day. His Noble Ftiend's proposi-
tions took a totally different view of the import-
ant.subject, and it could not be expected their
Lordships cOuld,, at hearing them once read, be
sufficiently masters of their import to discuss their
comparative merits properly. He tf,precated any
idea of put‘ing off the discussiOn -Merely for the
sake of delay. His Noble Friend, who perhaps
was More conversant with the extensive and in-
tricate sot ject than any other man, thought what
appeared before the COmmittee adMitted of very
different conclusions from those embodied the
Resolutions Rroposed by the Noble Earl opposite,
and their Lordships certainly ought to have some
interval at judging between the two. He should.
therefore, earnestly teconitnend the course be had
adverted to, anti would suggest Tuesday next as
the earliest proper period for resurnkngthe discus-
sion.

•
The Earl of LIVERPOdt expressed his opinion,
that the subject was of that peculiar iMportauce;
that it was essential (whatever opinion may be
formed upon it) the decision of Parliament shrub
be made as speedily as possible. More dis.td-
vantagesnight arise than many scented to be
aware of, trout the question being thus left in a
state of uncertainty and indecision. And farther,
as the subject might be connected in some degree
with the conduct, of the Eiecotive Gover'nment,
he for one was anxious for an early opportunity
of delivering his sentiments. However, it it
should 6e the general sense or pleasure of'their.
Lordships, be would not individually object- tr.) a
short postponement of the discussion.
The Earl of RossLYN was of opinion it peot,;(l
be more advisable to postpone the discussion, for
there were many Noble Lords; he thou4ht, who
could not, in the interval allowed, form a dylibe-
berate judgment on the merits of the question.
The suggestion of the Noble Earl's on the left.

si'le of the Woolsack not teetbing to meet the ge-
neral concurrence of the II oilse,

The Eail of Ltvaitrooe rose and proceeded re-
gularly to the discussion of the important subj6;t .
before the House. Taere never, he observed,
was any subject so thoroughly sifted by Parlia-
ment as that now under consideratione It was
not only before Pattiament that the subject had
long been in a course of discussion, hot •it was- ine
various other shapes before the public, and had
been the topic of Very able discussion in the pub-
lic prints. Farther delay in the discussion would,
lie must again observe, be productive of serious
inconvenience. tie would need bring it before
their Lordships upon general principles, and
rather with a reference to it prospectively than
otherwise. Nor should he enter into any abstract
views of its merits ; its nature and extent present-
ing a sufficiently foimidehle task withciut coopliirg
the subject with considerations of abstract theory.
'Fit its determining, he would observe; the•flonse
now had three great cetestions to attend to : First,
\Vas it eepedient Hoe( the country should recur to
some fixed standard of value ? Secoodly, Is it prac-
ticable and expedient that .a return to the ancient
staridaril of value Shoot(' take place? And,iliiidly.
Whet are the best 'means of effecting these results?
In consideringe these parts, tit. question Of the ex.:
tent of the currency was the first consideration,
lie lied aliveYs emeetieed, and w,is still reedy.to ,
edmit.- it, that the B oil Kt sti ic, ions were the
means which enabled Its to ”,V,ll hem the stoi-O)
iehich stelong.over hung this country, awl enabled
it to gin throueh those ditlicul'iss, which, on his
you-choice, tie heiteeedit otherwise cioliti mit,—
It del not follow that he thoeght this syetem
oneht to be art, d item, in ail wars. But the last
contest wits one tos•imilet to all others All the
Powers of foirope were at one time linked ioge-
titer, tinder il,e cieetroul and diieetion of one
Power, whosf• object t• is first the rnio, anti sob-
seioiently the suhitigation of this country , Com-
tnenserate means end exertions "ii our parts to
resit this unprecedented arta), against us, were
holispensibly necessary, Those ciretnnstances .
were however now gone by, and we were called
upon, in peace, to decide, in emoid•policsrand ex-
pediency, what course ought to be adopted by
this countiy. Parliament had, by 'its acts since
the peace, declared it eyes the duty of this cootie
try to recur, as soon as is was practiesdele, to its
former system of currency and eireolation. It
was unquestionable', in his mind, that we ought
to ret 'int to bonne fixed standard of value ; and
his firm belief was, that the great mass of oppo-
sition which presented itself to the proposed plan,
(though lie thotight it was conseieotiotte on the
pert of the Bank) was directed not ega.inst.the
resumption of cash payments at any one interval
of a year, or of six months, or at any tiniee-s
but against the event of their ever returning. to
cash payments ! All the .reasoning of such
persons weot to such a length. But ettch a
system was never touted to exist ill any so-
ciety ; all countries had some standard of value
or other, whether it he copper, hop, silver, Or
other met I. All proceeded tupelo some fixed
standard 4, value ; the departure from it was
never prooosed as a persoanent system ; neither
could it be otherwise, were the dictates of sound.
policy, reason, or even of common honesty, Ht. ,
scuttled to. All we ha:i hitherto done was. with
reference to a return to our former system of cur-
rency. Ile never doubted the moderation or jus-
tice of the Bank ; but Nvould ask, whether Par-
liathent could trust the Both to an extent which:
it had never done with, respect to the Sovereign]
1111011 the Throne. flow did the case stand ? The
Batik, for, instance, isetsed eseenty mOlions of 1
notes upon Governmetit security ; we paidetheml
about a million interest annually. But was it rew.
rionable or fair "that the public should pay the•
Bank a Million a year for the security of their
notes, when, by issuing their own notes, the
public may save the notion! million ? Some stan-
dard of value was unvestiontably necessary ;
I such was liable to fluctuatimits, especially in
Periods of war, butt now, in 1 joie of peace. wt-
should look steadily at our situation, anti e„oeee;
i
vou.r, as s„,, -as prisetteahle, to retitril to that
state of corrency, which Was most aoVanta4colis
every Way, as well as the moat economical; 11e
wished ilie subject should be considered practi-
cally rather than theoretically; and he would ask,
could they•consistently leave to any hotly of Men
to issue their notes without reference to some re-:
gideg system or standard of value ? He wished to
pet this leading principle in front of the debate,
and as the grand point upon which the whole
should turn. 'the next point was whethei', if it
were fit to return to some fixed standard of value;
it were fit to return to the ancient standard ; and
this upon every principle of political wisdom, and.
even of honesty, lie thoueht they 'were called up-
on to do. The standard to be considered was, as
it eXistethbehere the Bank -Resuiction took place,
when gold was at 31. 17s. 10d.; This was aques-
tion which went in some shape or other to affect
every individual in the kingdom, and it tnighebe
regarded as the contract entered into with the
creditor; and it was the duty of Parliament to
see that such contract was fulfilled, and lie coUld
show dial no material inconvenience in follow-lots '
tit ,It course, in consequence of the great exeriions
which we had been compelled to make, had the
efiect, for needy a period of 3 years, to raise the:
!race to 51. 4s, making a difference of between;
'A or 30 per cent. ; but when peace arrived,
they had all this ground to tread back. The pro-
,
geessin the lowering the exchange Was lOtfrropt..
ed by the lending of Buonaparte in the vesr I8!4.
But Amu the middle of 1416, the EXehatiges
aeaio became favourable foe this country, and
the Mint prig-es of gold proportionably tell ; rind
if the Bank had not interfered as it had door,
the price of gold would have been about 31. 15s.
and for a whole year at least the Exchanges were
favourable, and gold was below the Mint price.
The great mischief was, that the public would not
read the Report ; tier, he bed himself heart! rate),
say, that they did not, want to read it. in fact,
most men had made up their minds on the ,subject,
and would not alter their preconceived opitiioes.
It, however, he bed soCcei,ded in showing how
small the difference was between the establishsd.
stamierd aunt die Miot regulations, a great pin
of tie difficulty was done away with. The deeit a
lof the•CorMnitde was to effect the object in Inc
most gradual-way—in short, to do it to as to .o).

viate, if possilde, all the diftctilties and onjeci
lions. Whatever Might he the objections--81_1(
he was far from denying that there were some owi.
jections—the plan itself was one which came tn°st
..
near to the principles which had prevailed wi.
their Lordships, arid which was calculated el
bring about the Change in the most gradual
way. It was expressly stated in the Report, litia -
"' the great evil to be avoided was a rapid i
crease of the Bank issues—that the greatest evi„,
would be a forced and precipitate contracti°7
of these issues." - In conformity with this Opt
nion it was a great object of the Frnrsett-
plan to proceed gradually. It was 11°t
commence till Februilry, and would not be liut",:ler
completed for four years. Even those. w°.•
were most hostile to the plan, must adl
that contracting the issues of the Bank won" ten,
to lower the price of gold. But the great quel
lion was as to the inconvenience which this wont'''.
produce. Some thought there would be II" ii";
con%euience if, the operation was not forced. 'tom
his own part, he trever could understawl llntv
doubt could be entertained on the subject ; f.(lr"
wag unquestionable that as .the amount of the 19i
sire of paper was•decreased pro Canto, the via'.
it %% mild be-inereased An examp!e won'd 111"9•
crate this. , the-last year the Bauk refaced I(
issnes by 4.000,0001. ; and there was 1w increas°
in the issue of the country.minka. lan,„,tote to
that year" there %ra'S a decrease on the yr"!
ttroount t f 01. e-circulating, tnerh,4m in the country"
es'
And yet,, withstanding this decrease, the
changes became more untarourable, .and
pr iceiofa gold rose. This, however," was in
explained- by the effect prOduced on the oi(":e,:r;
ntatket by the pecuniary transactions of fetrog-
Governtrients. •The Noble Lord (brier, Lauder'
date)., however, co iii ended the all this might 71
obviated by a still greater diminution of tile'is
sues. With regard to this, however, it Was—
be considered that when the ixounteracing eVisheg
went to a certain-height; any diminution 01 t,:6
paper circulation produced an intolerable
convenience. But, oa the whole, he did oaf
think that there would be any difference
()pillion 'as to the- proposi,iou that 0 rel..
due-60n of the circulating medium increase.'
the value of what remained in circulatioof
He wntilifnow proceed to consider the merits r!f
~,
the pr,,posed plan. Its first advantage arose foh";
its gradual operation. If the Bank' was t° tl,
tailed 'upon to pay in specie at a given Pet'64
time must be given' to pi epare for so import'iti,
measure. At she same time he must confess oie
own opinion, that if • the Bank were to resnr°o
Cash payments to-morrow, there would he
considerable dcmarrd upon them for .gold ei"it;
But no Mal). would deny, that if the ,Bank ‘v •
required to pay in cash so soon, they ought 10 ir%
prepared with the means of paying in COlth
coin was demanded. The first positive ad"n:
t!ige of this plan was, that the Bank could ref -
sunte cash payments with a much smaller aol°""t,
of specie. tinder its operation., all demand t°
specie, arising from fancy, from. Caprice, front i'it;
ternal alarms, would be prevented i and the
demand would be for the purpose of ptofit. °
long therefore as bullion was beloo the mit -
price, and as long as, exchanges were ftrv""ba-el-:
there was nothing to tear. Tile next grey
vantage of t!he plan teas, teiple Cleat ~'as dune fait, hat
tl
ittVibt tiriete7.4Pliiiti:*-
ing any principle of depreciation. It t"'":
this principle--" We will
begin aar7i7s: iti!it•ilde
the
evil
;11.reiarcili
we will tint put on opening the Batik till sweet;
lure and indefinite petiod when we. shall 'l3
plenty of .00111 ; sltall begin now, 151,"1,Pfr
the market. price. Of gold as it now stands, but
lowing the evil to proceed no farther, 0
enabling the Bank to work its own (4,,t41
complete retorn to cash payments." This 0(1,
the system of the whole plao. lie
mit•tnat it -occurred to whether tbe Verdi,
was not put .too tar back. . It might bc 50.4
it we were tie bet in =t the -market price, ~,e4
not hi-gin at the earliest period. This se it
port-, but there was a -good reason wit,/ be
•Should not, be done, and why there sly""`.itio
sutras Astray. The debt due by Goveroment
Boik mu.; be repaid, and this would require stiod
delay. And here it. was to be observer', that tie
question stood on. rather strange ground*, °pall'
tweet) the Government, the Bank, and the
lic. It the prevailing opinion in London wi'S c:7CSO
suited, eilted, it would be found that the afe't
lousy prevailed on this subject of the rell°Yi" ti
by Government of the advances made to
the Bank. Arid he Must admit, that if t"i'a bd
sent system were to be contineed there /"111 04.
d sonic tounation .for this objection. Bo i
t t (1010
his firm opinion, that every merchant in 1-1 op
would prefer a circulation at once founder cirri
Government security, to. having the state cifto
enlation depend wholly on the judgment °owl
Bank. He must conftss that the advances oestet
Bank to Government had extended toy gr
'amount than ever was intended. As to th 9
e ti 00•
of the exchanges, as ativcted by the cirenlatras -
the-greatest latitudinarians on this subject hie/
idmit the exchanges would become favnnr9l,oo
even if the•B,iok 'circulation of paper continnet`od
Hall as it now .Vras. He did ,not-believe th„soe.
alr.rin of tt-grest-Hud sudden reduction in the t' the
of ;he BAIA wiss foonded.. At any "lea' '11;
Whole objtct.of this plan was to give the d itts„
an oppoetonity- of purchasing bullion, an.,
firmly ' believed that no sudden reduct.°"o/.
the' Bank issues was now in . cuntemPlB":ocfl
He had already' noticed the. advan'eges IV
the existing system gave the coutall 5 in
time of wilt% it had ,al,O its 84Ivantage„ rd•
the time of peace, by the facilities Which it
trpw
ed comfit, lee--facilities which merchants wOOO
nu douht be sorry to lose : and which be lode(
ndnrir never could' exist to the saute extent .1 001
already
luryranurse e selyls,t,edivne.rteldtstoe.lfecotstus,:,u:et,itit-iiiil3llbliolcsll,
„.„I
-most remarkable—that io times ----11,ace !-
distress, 'the, Bank was no! obliged tt, "soot"
issues, Tiis Ns' a 8 mentioned as a gre,tWas
(age, but it was merely' fallacious. It, effect'
onoatural state of things producing 001, joie
• that when the country was really disttes'et' al°
peat ed not to be distressed,—that Ir 11,n it 0‘
poor, money was as ahundant as ever. ,firr
mot be supposed, however, that the parr 51esd 011#
even in its most beneficial opet ation, prudu

'I

• lio,
cht

tlt,

objec:',
)me
Lie °9t
ed with
atoi fd
gradual
rt t!"4
P'd de
',
test ev•
traction
IsiS °Pt;
,`. ror'se
sot
c
wife/
t
ddu,
(11,1 tetij
crie3;
S WO

10
e 11"
ed. k.°r

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e• 1
i!,e is-.
vale "V
.d :110.
,oced its
i„cretis6
utole
• svlol`

!omit rP

the es'
Inc!
i fo
/IWO
foreigir
jaloter-,
• lit 114
the 15
WaS
Y
of the

•
hl; I"
did floc
ence

ICI ea"'
ulattn°
ierits
ise front
to be
red,
Pei,
wan'
less his
regurn,t
he "'"

e.
unxed toe
tile t give encouragement to merean.-
cre
-" fieti ions (Ice' t
eoualse 6f ii fictiliOns w '1
hie''' in
- Yeats. were likely to'td prouce more per-
Ptanent 1 ' 4lep
evil to the eomory !him could be teemed,
wpactn with the tecnporery ineotivenienee
e
in the first ins-poce be produced by,
t,„, Proposed plat), had always been his (spi-
-1..°11, anti he had often expressed it, that it would
b:titnPoßSible to resort to the ancient System with'
the hieerring a temporary inconvenience- But by
appointneent of the Committee ,s'hose Report
of that
til,ll"w before their Lordships; the greater part
4nat inconvenience l
already been
incurred.
the inconvenience's which would now ensue
4,1 be less th'an those whiCh had already
leeeir Plodoced. It would therefore be absurd for
; Leeds,.
ips nosy to turn their backs upon that
here
.e, however,
11Faln ver
some arguments addnced
the moat striking of these
eve 4".*" st the plan. To nid now advert, namely, to that which
11t114*u froni the comparison of the 91)301111.1
in.('
Fl'''t medium nowt in the country. anti
tee sate!
which hail been at former times. The Conthilt-
S,did Ohe tact was notorious) that the enionnt,
the circulating medium was greater titan it b:atl
tilonlrebere tehlai tattli"enYcirttantvirngPer;:eQddi.um Hneo :‘l.; seas
“11141 to what it bed.: been in
te,aThi-,eas puling the argument in. the s-tr°llgtsl
sip-,'")le light ; .:it. was imagining a case.•even
ii4:llger that) that which the nelmrt.establisheti
fee e'en itipposing this equality, and taking b thati
lettitevenate heti now inereasett to 60,000;0'10 ;
tint ettr,'"le, agriculture, am! manufactures were
tteliCi4; all this would admit, and still he
tap 'l' undertake Co show that while the value of
atiri;,4l4l the country had thus increased, and the
Cita(,4lt of the circulation temained stationary,
utantnit was not only as much as was neces-
-414; Ili" Was even too much.. Any difference on.
'lUst•:illttrltist, in his tniod, arise troth not esti-
isti:-g Properly the differenze, of a nietsilic circn-
Ur.l,l' and trom not considering the power of pa-
t
Le. Cll Were aware thee paper circulation,
,e.xeep
the altite sums; was not of oh! date. .beforie
tlee n'ericati war, there was scarcely any site
echo
as a eoun n try Bak. were then
tl4,ieti to keep considerable hoards of money to
e.ll!etie,teln to carry on their dealings. Here,
!by'n file very first view, was one
stee.; -Iner the old system, agreat cause
rnij,-,"eerwas required for a greatpurpose amount o
it
.ipt:f
his
which
°e said was now wholly unknown. Be-
Pr)/-, tile removal of this great cause of a larger
Ali'ei.;,4llnnel circulation under the old system,
.1)', ',INS another of very extensive effect,.natt?e-
etlee`til neW mode of bankers clearing the. ae-
Ittiees, Which made a smaller amount o; civet-
‘1,0r41". IlSwer the purposes of corn:tierce than had
iLi',,rlY heen required. Ou this subject be relat
\l'eaisl4le from 111 r. Colgn-howl's '!'realise on t
Ithite:4,aud Resources of the Empire ; a rem.-
'41t1.1.1 ue described as of great; valise and cons!.
'4, I'e sothority. It described the arrangentetn,s
10,Pted by the London hankers fur set:ling the
;114:1n,s of their daily trawactions ; arrange-
-I'l- "Y aleatis of which 68,000,0001. of money
e
'447.(Zere requirvd to be in circulation, tt.i;
-woUld have, been regoired under the
isbet This was. eff'et el by an agreement
t,e their
...)4,s‘itt-11 the merchants teat their orders on f hibie
.11,,y,e13 should not till the "L()balancer!
the. hen the forty-six Irsukers.met anti
liViti'l4re°llots, paying nothing-bet the balances.
l
trio err
, inzement the veto:i:y of the etre,' pt
•Petf'Hill'eated almost incredible ; and 1,000:000'.
As notch as 20,000„0001. - It now ne-
-1 tot him (end ee was sorry lie had nor sooner
11•
5ree4!„.11- oF it) that it eteeeld be useful to have
Met'inirtiler joformolion %%hid; might more cr i
omßance -
in• "ltrate this part of the sUbject. Fo
"• Utile the amount of the Bank circula-
:the the last year 27,000,00 W. (which was
i
lino
t
eld; "1
111"'rat as it appear he
from au account h'lee; Bursa), it Would appear that the items
music rap on, gross m sutra were worthy the
IY-s"e"11)11v of the Hwise. Thus, if of those twen-
.4eite" Millions, twenty millions were one pouud
and from the number of times that the
.11tni tb°l,Vatious denominations had been issued,
tiete It ivngth t of time tl,ey had been in circ a_-
n
• 't 2 400 Was found that 27,000,0001. did the work
.„
o.t,' ,00N. It appeared that the one-poond,
• tal,t,
411 11d, and five-pound notes remained. ..
rte 5'0,1"11 an average from 137 to 147 days ; that
notes remained in circulation on an itve3-
''aYs: ','"t 14 days, and the 10001. notes only 1
..Peatel accounts (rom which these results ap.-
°ccu. wife
already before their Lordships. But it
eau 'Ted to him, that it would be important to
."1141. similar accounts before the restriction,
1164:e regretted that they were not before t
I,llat -ee:, But he was enabled to state, that in
..enneraer the average time during which one.-,
.1,144.1 "ve•pourof and ten-pound notes cOntt-
,4ll circulation, was 250 days, iustead of 137
2!Vera?' That the 10001. notes, which on an
• 2
tiae remained our at present 13 days, were then
mils showed to what an extraordinary
efi.-e. the rapidity, of circulation bad increased.
I,tfers'„ the restriction,' when a circulation of
iti4-,".0001, Was talked ot, it meant 20,000,0001.
belceei,e.and,3o,ooo.,ooo!. paper cireolat i01111,"1
If leetilationtijso,ooo,oool.meantso,ooo,oo,ol.
titer per, h was'impossible for hint to se),
wile-
ite Wag too, great or too
9t 4, , Was take:) at 50,000.0001. It depended On
I°tte neiTellmstaNCes and contrivances; and there
'l!4ss-kn'Y One Way of getting at the t rot h—t hat
b"ing firer!•siandard of value..
eThe
,;:•
.1.4,1
jet epo.fattibseooaper:ia
lefiect "
r
sting this was by wing 11"
o the precious metals—in gold
cfrir 110:se who talked so much of the evils
d cireolaiion Went on a,great mistake;
foetid Best the transactions of a country were
u. 1141,11" oh solid wealth, a proper eirCidatiug me,
titie„vvnuid always be provided, the course of
4 63* A ' mean rll, t le !lame time he did not ,
that 1 • re; ; sullen .irom any circumstance metellit
141) was stn,:pended, that a return to it would
ret:t attended wito vary serious evils ; though lie
tftilded that they
would be hot temporary. t,.,
`
t ttl would," his npinicins nu this subjeet, he refer-
•alteihile evidence of M r, Fletcher, Mr, Page, Mr.
‘.11ti.„41; "nd.otbers. It was, however, contend-
the/11 Mint regulations operated Ut&ivntrfably
4':74 14."
tlfsilYer, and the rate vi exchanges

When the Mira Was not open, and the 'Govern-
ment kept the silver circulation in their own
hands, and the Legislature proVided that it 'should
not lie a legal tender for any stint above forty shit-•
he could nut understand how the Mint regu-
lation could have such an effect as was mentioned.
If the Noble Lord's (Lord Lauderdale's) reason-
ing on thiS subject was correct; it would equally
apply to copper coin and to silver coin. But the
truth was, that the silver coinage
,did not at all
stand on the same ground as the gold.' Thus
he had brought- before the House his views upon"
this most important subject, and he bad dope
so with an ardent and anxious desire to re-
vert to a fixed standard of currency, as speedily
as possible, and in such a way as to' produce
the least inconvenience and distress. Suchan
iroviry as that whit+, had been instituted. cOuld
not he set on foot without many inconveniences.
It induced many men to deliver an opinion on a
subject,as to:which from habit and education they
were very ill fitted to decide, and it Produced ne-
cessarilYian imMediate and' poWerfill effect'Opon
the commercial interest.'' Such an' effect it' ,had
prodireed.. But this must: be fia!o,, that the in-
quiry fiat! been gone into. without any party ani-
mosities, Without sacirilice'of,lprinciPle, and
with Sincere desire on the 'parrot those: who
were the most anxious for a • return to a fixed
standard of currency, that it, shot, d be clone with,
the least inconvenience.—(Hear; hear, "bear
the 'Earl of LAUDiiIDALE began by Moving,
that the Financial:Resolutions, moved by him on
the 9th June, 1815, and rejected. by the House,
be read by the Clerk. When these bad beeri
read,lise Nbble Earl proceeded say; that in 'ad-
dresSing their" Lordships he shook! need much of
their indulgence, considering that he most enter
into the question more extensively than the Noble
Earl. who 'spoke last, and on points which it was
more Alikult to communicate to a popular assem-
bly. At tine same time,' be assured their Lord-
ships that if. he failed, or was ignorant on this
subject, these defects must be imputed merely to
human infirmity ; for there was no labour or pains
which lieliad spared—nothing in short; within his
power, which he bad not done to gain information,
and to enable himself to come to a right conclusion
on the subject. He could not but differ from the
Noble Lord on many paints. Wben' the Noble
Lord said it was- necessary to have a fixed standard
of currency, it was what every man must admit,
and" it was only what he (Lord Lauderdale) and
several Noble LorA near hint, had been con-
stantly saying for the last twelve years. But on
former, occasions no one would be allowed to say
that• Bank paper had ever decreased its value.
Now, however, things were happily changed,
and he mitt congratulate himself and their Lord-
ships and the public, on his having such a con-
vert as the Noble Lord, But like all immediate
converts, the Noble -Lo:d was so zealous that he
wished to have an immediate recognition of the
nepreciatiou l y l'arliament. This was in fact
%Olaf the Noble.Lofal wished for, because making
the Bank notes payable at 41. Is. was acknow-
ledgieg the depreciation.—[llene the Noble Earl
tottered into the argontent which be. has so often.
urged relative to the price of silver and the
state of the exchanges, contending against the
policy of the Mint' ree„uldii:;*Es.]—The rate of ex-
change and the price of gOld Would always be
found to keep pace; and he marntained, that the
high price of gold was to he entirely attributed to
the Mint regulations. There Was positive proof
that the depreciathto of paper arose bout the ie..
relations which had been adopted with respect to
the silver coinage. It was impossible for any+
e,art to doubt thrA hot for the circumstances re-
speeting the gold coin, the exchanges would have
been favourable. If a hundred of ()qr guild" sove-
reigns were ta.ken to Park, thy would sell for
1081. 10s.' -.raking then the exchaoge at the very
worst state in which it had been since the month

of March 1817, which was 23-so, then those
hundred sovereigns would produce 1081. 10s., 'so
that in silver they I.vcicild fetch much more than
their value as gold coin. 'This, however, proved
the favourable rate or the exchange. He con-
tended that-the only criterion by Which the depre-
ciation ot `paper had in general been estimated ne-
ver existed'; and on this groand it ti as that he
moved these Resolutions, in Which he stated that he
thought the Bank would have very little difficultyt
in resuming cash payments if the plan which he
proposed was adopted. The principal reason why
he proposed these resolutions was to point out the
present state of the currency of the country, and
the effect of the Mint regulations. lo his opi-
nion, if the regulations-which he proposed were
adopted, there would not be a call upon the Bank
'for u.single guinea in gold. No one with whom
he had co'nvetscd on the subject, and to whom he
Mall communicated his reSidutioni, had differed
from hint with respect to them ; but he had
found a great difference of opinion as to the plan
ot the Noble Lord. It certainly appeared 'to
hint that the greatest grievance now threatening
the 'country was the plan of the Noble Lord,
and the Mint Regulations. He had indeed
heard this plan commended as providing a cheap
circulating medihm. Instead of that; it would be
doing a most unfair thing to the traders and ma.
nufactorers of this country; pr=oceeded crn the
idea that a great part of the capital of the country
who'd he carried into n'ance in exchange for
This notion arose from 'a mistake as to what' was
said, Uy Dr. Adam Smith ou the subject of pro,,
ductive and unproductive capital. In that part of
his work,'Dr. Adam Smith delivered many absurd
opinions. But he said, among other things;
that if we sent gold abroad to 'purchase the
produce of to!eign countries, it would he 'an
advantage to us'. But' there were only twO
ways in which it appeared that the 15,000,0001,
of gold which Mr. Ricardo said was necessary,
could , be procured, and these were either in eso.
change for goods or by purchasing bullion at a
high price. Acting on Mr. RiCardo's2plan, 'of
providing 15,000,0001, of gold, that amount of
the capital of the country would be 'abstracted,
instead of being, beneficially employed in the com-
merce an* manufactures of the country. It' was
imp.ssible to get gal. advantageoasly from foreign
countries where it was procured by labour, with-
out seuding out in exchange some part of the
produce of the labour of this country. But 'his
chief objection to the plan of the Noble Lord artise
Irvin his nut wishing to deprive the manufacturing

.•
interest of the benefit of 15,000,0001. of capital. On
the Noble Lord'S principle; he might just as well
propose a sumptuary law to prollib:t the use
.ot
plate. With respect to the practicability of the
Noble Lord's plan; he entertained very consider-
able doubt.. It was novel •in Itself, and would prO-
duce many new effects. It would he found, that as
soon as the Bank began to purchase gold, the price
of gold would rise in exact proporti96. The Noble.
Lord having spoken at great length to the same
effect, and taken a comprehensive view of the
gold, silver, and copper currency, as it'operated
with regard to the paper• circulation, conelnded
with moving, as an amendment, the liesoluticius,
which he'had beftire read.

Lord 'liitNG spoke at some length upon the
question, but in a. tone of voice not distinctly
audible below the bar. Though the measure pro-
posed by the Noble Lord opposite would be at-
tended with some hardship anal inconvenience,
still he thought, under all the circumstances, it
would be expedient'-to accede' to it. The Noble
Lord then prOceedeVo examine the Merits of the
proposition befOre the House, and said, that
though an enlarged-issue of Bank paper might be
convenient to. persofri'engaged in mercantile trans-
actions, still that -it would operate injuriously
with regard to thOse Who had certain defined in-
comes. Nor vwas' it' al ways
,davrintageons even to
the mercantile daises, for it frequently ioduCed
thhn to. inindicirfus :ineculations, which often
ended in their' rarilL It was 'absurd to suppose
that the Bank could pay.in gold. till they 119(1 re-
duced the price .61 gold to the Mho i:egulations ;
and though he corrliHsor sanction this as a per-,
mrnent plan, yet he,felt disposed to approve of it
as preparatory to one that might-be less objection-
able. lie regretted extremely that the new silver
coinage had not, been. issued long before, as it
would have operated ,in keeping down the ex-
changes... He concluded with supporting the Re-
solutions of Lord Harrowby.
The Earl of LAUDERDALE contended, that the
persons whose petitions he presented that even-
ing, were as hostile as any, set of men could be
to the system of extended paper ciirres?cy. - ,
Lord REDESDALE was sure that it would be a
most dangerous thing to make this a permanent
measure ; for, in that case, there would be 1P)
current coin, or very little current coin in the
realm. He considered tins measure as one that
might lead to the return of cash payments—
means aught be found to introduce coin into the
circulation of the country ; and without it there
could be no return to payments. It appeared,
that from a variny of circumstances, about 20
Millions sterling had been carried out of the
country during the last ten years. A language
had been held Out against the Bank Directors,
which they did not deserve, because he was sure
they had acted most honourably as trustees for the
pribiie. • He highly approved of the project for',
having a Mint regulation ; because he thought it
necessary to have a fixed standard of coin in the
country.

Lord GRENVILLE said, he had for many years
considered the Bank Restriction as an incalcula-
ble calamity to the Country ; and as he had re-
..
pearedly deplored the part he had taken in the
business at its commeocement, he now rtjoicerl.
at the happy prospect the Country had of putting'
en end to this great evil--a thing which be was
confident could be effected. No sacrifice-could
have been t,OO great to bring the last war us a
happy tertninatioo ; but he did not beliese that in
any future similar crisis such a measure as this
Should he resorted to, The innumerable dis-
tresses produced by this system during the late
war, and the ruin it brought upon thousands of
people, did, in his opinion, impede instead of
support, our efforts in the course of that con-
test., ,He differed entirely from those ‘vho.held
that the restriction had saved the'Cotiotry; and'
couteuded, that in proportion to_the danger the
Country might be placed in, was the error and
impolicy of ke•eping up thiS system. And
now, when' there. Was no plea- ftrit,•-he asked
if it was to be prolonged to an indefinite pe-.
riod, It was with astonishment be had heard a,
most respectable witness say that thii syStem
gave an case and facility to commerce ;- for
-whatever advantage it might be to individuals, it
would return with aggravated mischief to the
whole mass of our commerce. A delusive and
flittering calm would inevitably terminate in a
storm, from the effects of which the. cottony
would scarcely be able to recover. By the issues
of paper, the Bank Directors, while making great
profits for themselves, were depreciating the real
'wealth" of tire cotintry, and bringing incalculable
miseries on all classes of people. The excessive
issues of Bank and country paper involved thou-
sands of people whit thisir families•tnto inevitable
ruin. The long lists of bankrupts during the last
twenty years abundantly proved this, and the
thousands of people reduced to beggary, and lan-'
guishing in prisons, was the unavoidable cOrise-
qnence of this destructive system./ Nothiug could
stop its desolating progress, but that of having
a standard of metallic value, and a valuable me-
tallic 'currency, The -Noble Lord here' referred
to several parts of our history, in order to show
the ruinous effect produced at all tttnes by having
a depreciated circulation, and dwelt impressively
on the necessity of putting an end to a state of
things, which placed every man's property in an
insecure state, and left it at the mercy -ot men
who, by the Ctinstitution of the country,
ought not to have any power, over the fare
of others, as the Bank Directors now had over
that of every man in the country. Within time
last ten year's,- the circulating medium of the
country had been depreciated 30 per cent, and
the properly of every man had sustained a pro.
portionate loss. He must •say cif the Bank Di-
rectors, that they had not made the preparations
necessary for resuming their payments' at the time
fixed for them.• Instead :of that, they increased
their issues in the year 1817 ; aridthus increased
the difficulties of the country. ' If the Bank Di-
'rectors wanted to bring down the price: of gold,
and confront the course of the exchanges, they
must limit the amount of their is'nes. If their
Lordships consented to one hour's prolongation
nf the -time for cash-payments, it should. only
he on condition that the time should he tin-
changeably fixed. , Let the issues be limit, d.
then the value of paper would not be' rais-
ed, and a resumption might be a:0(A. An

I

increased circulation never could give an in-
creased extension to our commerce, while it
brought on us all the evils he stated. Ile never
could believe that the bringing the Bank note to
a par with our coin would ever operate ass a pres-
sure on the country. So fully was he impressed
with the truth of what he stated, that were it not
for temporary circumstances, he should maintain
that cash payments ought to be resumed at the
conclusion of the present ,year, But he should
he contented with the plan now reeoramended
plan which was opposed only front ignorance.—
The Oresent system was incompatible with every
principle ott which a ,Bank ought to exist, and
that was, a total independence of the Govern-
ment,. There should he no connexion between
the Bank and the Government ; and he thought
the advances which had been made 'to the
GovernMent by the Bank ought to be im-
mediately repaid.—The plan before their Lord-
came, recoitimended by men who unit-
ed. scientific knowledge of the
,subject with
great and .extensive
.practical experience, and
particularly, it came recommended by a man,
whose name, and above all other -Men.in Europe.
bore the'greatest authority in subjects of political
economy., He approved of the plan, coming as it
did so eiremuStanced ;. and he approved of it still
more, because it recogniied in the first instance
the sacred prinCiple of a metallic standard
Of circulation. lie did not wish to reflect
on individuals, but he must say, the Pro-
prietdrs the Bank wonld be the last per.
sons to whom he would entrust the exe-
endow of the plan. Under all the circumstances
he would give his entire, cordial, and unqualified
support to the measure.
.The Marqueas of LANSDOWNE wished the present
plan to go torth to the public, with every kind of
support and authority, as he was.convinced that
it AVASille only mode by which the Country would
ever be able to return to Cash Payments. He
combated the idea of making silver the standard
of value. There were two kinds of•paper cur-
rency. The one, convertible at will into gold,
assisted enterprise, and diffused capital to quar-
ters, where it would not otherwise have extended.
The other, resting on no metallic basis, only
served to encourage imprudent speculations and
commercial • operations, supported by a fictitious
capital. it was therefore always full of peril,
an4l frequently terminating in ruin. He then sup-
ported the of the Restrictions on
Cash Payments, lest- the sudden contraction of
the issues of the Bank should be productive of
inconvenience and distress to the country. In
voting for-the Resolutions of the Noble Earl, be
hoped lie should not be understood to pledge him—
self to approve of the present plan us a permanent
system. As a safe mode to lead to Cash Payments,
however, a mode ‘vhich would remain under the
eye and within the Control)l of the public, he•gave
it'his most cordial support..
The Earl of LAUDERDALE • having replied, the
Amendment was put and negatived'without a di-
vision.

, The original Resolutions were then put and
apeed to.
Adjourned at lIALF• PAST TWO O'CLOCK.