The Sun.
London, England, 1844-06-04 00:00:00

There have just been issued from the Parliament
Paper-office, prints of a "Bill to regulate the Issue of
Bank Nobs, and for giving to the Governor and
Company of the Bank! of England certain privi-
leges for a limited period."—(Prepared and brought
in by Mr. GREENE, Sir ROBERT PEEL, and Mr.
CHANCELLOR of the EXCHEQUER, and ordered by the
House of Commons to be piloted on the 24th inst.)
This Bill, in its present form, consists of twenty-
seven clauses, with three schedules annexed, marked,

respectively, A, B, and C. Its enactments are in
perfect keeping with that spirit of reckless interference
with the investment and the rights of private capital
employed in the business of banking, and with that
proneness to tamper with the general currency of the
country, which are the besetting vices of the Pre-
mier's whole official career. The preamble, after de-
claring it to be expedient to " regulate the issue, in
England and Wales, of bills or notes payable on de-
mand;" and setting forth the 3d and 4th Wm. IV. c. 98,
an " Act fur giving to the Corporation of the Governor
and Company of the Bank of England certain privileges
for a limited reriod, under certain conditions"—fur-
tiler declares the expediency of " continuing the pri-
vileges of exclusive banking therein mentioned to the
said Governor and Company, with certain alterations
such as are herein contained." Clause I enacts that
from and after the 31st August, 1844, the Bank of
England shall establish a separate department for
issue, to be kept wholly distinct from its general
banking business. Clauses 2 and 3 are intended to
carry out the notable project of the Premier for the
future regulation of the extent and management of
these issues by the Bank. The Governor and Com-
pany are to set apart and appropriate to the issue de-
partment securities to the value of 14,000,0001.,

•
(whereof the debt due by the public to that corpora-
tion shall be deemed to be part), and are also to trans-
fer to the said department so much of the gold coin,
and gold and silver bullion then held by the Bank, "as
shall not be required by the banking department
thereof; and thereupon there shall be delivered out of
the said issue department into said banking deppi:t-
meat of the Bank of England, such an amount of
Bank of England notes as, together with the Bank of,
England notes then in circulation, shall be equal to
the aggregate amount of the securities, coin and bul
lion, so transferred to the said issue department of the;
Bank ; and the whole at iOunt of Bank of England
notes then in circulation;' including those" thus de
livered out to said banking department, " shall be
deemed to be issued on the credit of such securities,
coin and bullion, so appropi iated and set apart to said
issue department."
Thus far the meaning and intent of the clause are
obvious, though it is no where stated what criterion
shrJl be adopted—or by whom it shall be devised and
applied—for ascertaining the amount of gal coin,
bullion, e.c., which sh2l: be required by the banking
department. Now this is an important integer of
a system, the rash and presumptuous aim of which is
to assign certain define LIMITS to the whole legal
currency of the country—incapable of any extension
beyond a given point, but subject to diminution and
fluctuation wahin it, according to the extent of the
excess of deMand far gold. For how does this clause
run on ?

" And from thenceforth it shall not be lawful for
the said Governor and Company to increase the amount
Of securities for'the time being in the said issue de-
partment, save as hereinatler is mentioned ; but it shall
be lawfulfor them to diminish the amount of such se-
curities—and again to increase the same to any sum
no: exceeding in the whole 14,000,0001., and so, from
time to time, as they shall see occasion; and from
and after such transfer, &c., it shall not be lawful for
the said Governor and Company to issue Bank of
England notes,, either into, the banking department
of the Bank of England, or to any person or persons
whatever, save in exchange for other Bank of
England notes, or for gold coin, or for gold or silver
bullion received or purchased for the said issue
department . . . . or in exchange for securities
acquired or taken in the said department under this
Act; and upon any diminution of the aggregate amount
of coin, bullion, and securities in the said issue depart-
ment for the time being, the said Governor and Com-
piny shall call in and reduce the amount of Bank of
England notes in circulation to the same extent, and
so from time to time."

From these words, it is clear that a reduction of
the gold reserve or store" in the Bank vaults will be
a- reduction pro Canto, of the "aggregate amount of
coin, bullion, and securities." What limit will any
than venture to fix on the enhanced value of money
which will ensue on the growing scarcity of gold,
and the proportionate contraction of the whole cur-
rency ? What point of depreciation will any man
venture to assign beforehand, as that beyond which a
coincident' depreciation of prices, and a still further
decline of wages, will not pass ? For the trade of

the capital in "particular, of the country in general,
of the universal commerce of the empire, no more

signal or effective manacles could be forged than
those which ire. Comprised in these enactments—thus

worded, per se, and without qualification. For Sir
ROBERT PEEL, or any other wealthy commoner pos-
sessei of an estate, unincumbered, and still thriving
under his shrewd and improving manageMent, no
'doubt, such a clause as this h calculated, o,produce
admirable results. They who have thi iiteltey are
hard legislators for those who have IPr to get:
it. The successor to an enormous fortune realised
by the honourable industry of his immediate

- -
progenitor, may find in his strong-box heavy mort-
gages for money raised at the depreciated paper cur-
rency that operated such wonders after the " fatal
measure" of 1797 for restricting the Bank from cash

payments. To him-=especially if he be as angry with
that Act as the Premier avowed himself to be, on the
Ist of May last, on account of its disturbing " the
theories and notions of men with respect to the stand-
ard of value"—it may be delightful pastime to exact.
payment of such Mortgages in the much enhanced
gold coin of the realm, or in the broad lands on which
they have been securely charged. If he be not merely

and agricultural industry and enterprise ; and Mr.
WAsoN, with strict truth, insisted that no necessity
had arisen for any change in this condition of
things; and that throughout Scotland there had been
no deniand for any such change. But the foolish
nonsense which the bull7onist claquers of Sir ROBERT
PEEL'S unhappy currency exhibitions are so prone to
utter, touching the exigency for a metallic standard
of value, and a purely metallic currency, as the
legalised currency of the kingdom, is too apt to pass
with those who are too indolent to read, and think,
and judge for themselves on these vital questions of
our monetary policy, for the suggestion of a sound and
cautious policy. Why ? Because it is combined with a
specious pretext of reason. Thus, it is argued, I.That
the Bill of 1819 was required, and that its proposed
extension in 1844 is still essential, fur the control of
that "injurious tendency" which the foreign ex-
changes have to turn against us, for protracted terms,
at frequent :periods. 2. That the circulation of a
paper scurrency of joint-stock and private banks,
under any regulations whatsoever, has a perpetual
operation to generate over-issues, or depreciated or
worthless paper. 3. That consequent upon such over-
issues of paper money, is a rapid and quickly in-
creasing depreciation of our commerce.
We have so often argued against these assumptions
at length, that we are content to cite, for efficient
answers to them, on the preselt occasion, a single
sentence from each of three speeches delivered at the
Ayr meeting in question.
1. As to the foreign exchanges, Mr. BALLANTINE
said—" He could not conceive how it should ever be
thought that the issues should be regulated by the
state of foreign exchanges; and that the country
ought to control traffic, whether manufacturing,
agricultural, or commercial. Currency should be the
servant, not the mastn." And Mr. TAYLOR re-
marked, that " the exchanges arose fromvtlit imports
exceeding the exports, or vice versa, theUance of
payment being in gold. It was not in the power of
any Government to change the balance of payment,
without producing paralysation of trade, and great
confusion amongst mercantile transactions throughout
the country."
2. As to the apprehended danger of over-issues,
Mr. BOSWELL, of Garallan, stated that—" From 1836
'to 1841, although a considerable number of new
banks had been started, the circulation was scarcely
increased at ell . . . In fact, it was impossible, from
the very system in which banks were (in Scotland)
conducted, that an over-issue could take place."
3. The present depression of trade, Mr. TAYLOR
declared was " to be attributed solely and entirely to
any attempt at the d;minution of present issues."