Star.
London, England, 1802-04-10 00:00:00

RESTRICTION ON THE SANK.

The CHMIC[LLOR of the Excitsosaa raid, he
rote in purfuance of a notice which he gave on a
former day, to move for leave to brinz in a bill to
continue, for a time to be limited, the refirietion
of payment in fpecie upon. the Bank. It was im-
poffible for him to fubmit to the Houle fuch a pro-
pofition without Tome regret, becaufe it was an in-
terference with the legitimate Nations and opera-
tions of the effahlifhment of the Bank; but he had
the fatisfaition of being fully convinced the mea-
Cure he had to fubmit to the confideration of the
Houfe, could not furnilh any charge againit any
one, or lead the mod timid man to fuppofe that
the Bank does not pail's the mon ample means
within itfelf to difcharge all its engagements in any
manner whatever, which thcy might be called up-
on, or allowed to do. He was Aced on a former
day, Whether it was his intention to move for a
preliminary inquiry into this matter? He raid
then, he had no fuch intension, and he had no fuch
intention now, becaufe it did not appear to him to
he necelrary. In the year 1797, when the Houfe
was called upon to confiim the Order in Council
rellriSing the payments is fpecie of the Bank, a
Committee was inaituted for purpofes different
from thole which bore upon the qucition now. A
Committee was then appointed, and their Report
proved that which could not now be contelled, the
folvency of the Bank, and its ample fufficiency to
tlifchar4e all demands that could be made upon
it. This was one of the parpoas for which the
Commit':: was appointed, and for which there
was 1;t1w no necc(Uty whatcver. The Committee

was appointed alto for another purpofe, and was
inftruaed upon another point: u To inquire into
the necallity which produced the Order in Council,
upon which the re ftridiontook place ;" the grounds
of which were fo notorious to all mankind that he
need not enlarge upon them, and it was now for
the deliberate confideration and difpaffionate re-
fledion of the 'four; to decide whether it was now
proper to continue that meafure for a limited pe-
riod. Upon thefe topics an inquiry took place at
the time the meafure was adopted, hot an inquiry
was not neceffary under the prefent circumftances.
The reafons for the continuance of the reftritlion
he thould fhortly Rate to the Houfe. The courfe
of Exchange between this and foreign countries,
was difadvantageous to us; the export trade was 4
' now, and had been for tome months, confiderably
at a Rand ; and a confiderable time muti elapfe be-
fore we had our returns from the export ? after it
flail have been returned to its channel, the courfe,
he trolled, would be rapid. There was no inquiry
neceffary however for this purpofe, becaufe the
thing was perfedly clear. Nor wouldit be neceffary
to inquire, while the courfe of exchange was dill
advantageous to us, whetherto diminifh the amount
of our circulating calls, would or would net in-
creafe that difadvantage ? for that was alto mani-
left ; and that the opening of payment in gold at
the Bank would have this effeet, was clear from
this circumllance, that for lateral months pall,l
there had been carried on a trade in the purchafe
of Guineas, in this country, with a view to their ex-
portation. It was therefore upon the grounds of
the Rate of exchange between this and foreign coun-
tries, and part of our export trade being "confider-
ably at a Rand, and our not having, oor being
likely to have, for tome months, returns for export
trade, and the praiftice of exporting coin likely to
take place, that he thought it his duty to recom-
mend to the Houle to continue the reftliaion on
the Bank. There was another confideration
which operated very ftrongly on his mind, that the
entire command we had polfeffed over the markets
of the Continent for fo long a time could not be
expelled to continue in the fame degree : com-
petition mull be expelled—we mutt meet with ri-
vals, alid on this account every facility fhould he
given to our merchants, and this could be done in
no way fo effeOually, as by continuing to them the
advantages, and indeed affording an augmenta-
tion of difcount, that was likely to be one of the
effeas of the continuance of the reftriaion. There
were therefore, as appeared to him, ftrong reafons
for the adoption of this meafure, ariling out of
the circumfiances of this country at the prefent
time. It prontifed to be produtlive of effential
benefit to the country at large, by the affillance
which it would give to merchants, aad it would
be the means of avoiding a probable evil, and of
altering the Courfe of Exchange : and lie was not
aware of any inconvenience that was likely to re-
fult from it, at leaft none to any confiderable
amount. We had bad the experience of four or
five years of unufual difficulty, by which the mea-
fore of rellriaion had produced beneficial effeas.
The credit of the Bank in the mean time, had un-
dergone no diminution whatever, but on the con-
trary bank notes had maintained their reputation,
and had been received readily in payment on all
occafions. There were, however,forne c irc umflances
which lie could not help obferving, and laying Come
Rrefs upon. When it was thought expedient to in-
creafe the circulating calls of the country, an appli-
cation was made to the Bank, and they called in
their one and two pound notes, and faid they would
pay them in calls, and out of the Soo,oool. thuspaid
to individuals who held there notes, and who were
entitled to have cafh for them, 400,0301. were,
by the choice of thefe individuals, received in
paper. After this proof of confidence, and
manifeftation of reliance on the g4nl: Paper, and
eftablilbment of the full Credit of the Bank,
there was no kill caufe to apprehend that the
Baik Paper would not continue to nuintain its
Credit, He knew there was in this country a
great diverfity of opinion with refpeit to the mode
in which the Bank ought to be permitted to re-
new their money payments : form Gentlemen, he
believed, were of opinion they Ihould pay cafh for
Notes of a fmall denomination, but here he willed
it to be remeMbered, that until there was an abun-
dant. fupply of cafh, an evil might refult from this
—for if the ii. and 21. Notes were paid in cafh,
and afterwards a general anxiety were to be en-
tertained on the fudden, for cafh, Bank Bills of
loot or wool. would be brought in for there
and 21. Notes, and this would introduce the very
inconvenience intended to be avoided. By this fort
of reftraint of the meafure, the circul ition would
be interrupted materially, and then the Country
Bank Paper, for fmall furs, would be the only
currency. Not that he meant to throw any dif-
credit on the Country Banks, but he was Rating
this as the probable effect of opening the money
payment at the Bank for fmall Notes, in the mere
poffible event of any fudden anxiety for calls. He
did not know whether he had made himfelf clear
to the Houk, but what he meant to imprefs upon
the Houle was this, that by direaing the Bank to
pay in cafh (mall Notes, the probable, or rather
poffible effect would be, that of creating an unli-
mited demand for fuck (mall Notes in exchange
for large ones, and thus a rick would be run of
their being takcn out of circulation, which would
be a con fiderable inconvenience. He did not think
it was neceffary for him to go more minutely into
the fubjed. He had affigned the reafons why it
appeared to him this meafure was neceffary.—
Thofe were, the Courfe of Exchange being at
prefent againft us; part of our trade at a Rand, in
a great 'mature, and from another, no Returns
could be expelted Coon : all which inconveniences
might be increafcd, but could not be dimiuifhed
by opening payments in fpecie at the Bank. On
the other hand, he knew of no material inconve-
nience that would arife from the continuance of
the reflriaion. Under all thefe circumftances,
which were indeed unavoidable, be thought it
would be prudent for us to wait a while, to tee the
confequence and effeeds of Peace, to give time to
our Merchants to form their connedions on the
Continent; to take time to fee the commercial
relations in which different countries will Rand
towards each other y to obtuse all dais things,

and to reflex on them, before we opened paymenti
in calh at the Bank. When there were loch ad-
vantages likely to refult on the one hand, and
without any material inconvenience, and while,
on the other, it was poffible that Come evil
refult, he was apprehenlive the Houle would agi,e
with him in opinion, that this rellriaion ought to
be continued. He fhould therefore now move--
" That the different Ads of Parliament by
that reltridion had been enforced from time to
time, for the 101 l four years, be read"—which be.
ing done pro forma, he moved, " That leave h.,
given to bring in a Bill to continue, for a time to
be limited, the reftriflions in the laid Aft on the
Bank of England," &c.
Mr. Jou Es Ciid, it did not appear to him tiro
the Right Hon. Gentleman had advanced one folid
reafon for renewing the meafure he propofed, -
cept that which regarded the commercial relation,
of the country. On that ground perhaps the ie-
newal of the refirietions might be proper ;,and had
the Hon. Gentleman relied the ncceility of it on
that alone, he fhould not have made any objethon
to it. With refpeet to our commercial relations
with France, he remarked with regret that not a
word was raid upon the fubjeft in either die Preli-
minary or Definitive Treaty. There were feretal
reafons why the continuation of this refiridion must
be highly injurious to the public. There W. 16 a
feeling belonging to him, in common with many
others, that he had rather fee the King's picture
on a bit of gold than an aftrat. The Chancellor
of the Exchequer appeared as if he was afraid of
the trade of guineas, but he ought rather to be
afraid of Iffignatr. If the Bank was equal to eie
payment of cafh, as the Right Hon. Gentlern.in
Rated—if its refources were fo great as was rept e-
fented—why not pay at-once? There was fume Inyf-
tery in the bufinefs which required an explanation.
He walled the Houfe might be informed what the
profits were which the Bank Diredors had been
making ever fince the Roppage of payment ; and
he wiffied the Houfe to confider the extenfive trade
of forgery that had been carried on lince the WU.
ing of fmall notes ; no lets that feventy Clerks be-
longing to the Bank had been going about the
country to profecute for forgery, and numbers of
perfons fuffered for that crime. All this was the
effeft of ailing paper inflead of gold. If a man •
in bufinefs fhould happen to take twenty or thirty
notes in the courfe of a day, the probability was,
that two or three of them were forged ; he muff
fullain the lots of thole; he had no redrefs at the
Bank. An inflance occurred, to his knowledge,
of a perfon having taken a bad Sol. note, and the
Bank would live him no mini's for it. He
jetted to having fo important a queftion as this dif-
cuffed in a thin Houle, and wifhed the Right Hon.
Gentleman would paufe upon it, and thew that the
commercial relation with other countries was his
principal reafon for bringing it forward, and the
meafure fhould have his flipport.
Sir Roasts r Pasxs obferved, that the firs time
the reftridion in queftion had been peopled, it
excited confidcrabJe alarm in the country, all of 4
which had long fubfided. He fully agreed in
every reafon advanced by the Chancellor of tile
Exchequer in fuppoit cf this meafure; befides
which, he mull obfcrve, that our trade had of lat:
years encreafed three-fold ; there was propa:y
now going from hand to hand in the country, of
the value of no lefs a rum than three thoufand
millions, and there was comparatively very little
cafh in the country; therefore, if the rellridinn
did not continue, and Bank Notes were not to be W-
ilted, there would be no circulating medium for
the convenience of trade. But if the meafure now
propofed was improper, the Houle would have
heard objeltions made to it from without doors ;
no fuck thing was done ; no Petitions lay on the
table againft it. Befides, the Bank had ataintaht.
ed its ci edit, even with fplendour, ever fince this
rearidion. He gave his thanks to the tali Admi-
niftration for this meafure, which if they had not
adopted, it was impoffible to fay what thould have
been done.

General Gescotoss, in answer to an obferva-
tion from Mr. Jones, faid, the thinner's of the
Houk might be attributed to the itterruption
which its ordinary proceedings had met with from
a Gentleman near -him. lie then faid, that the
encreafed iffue of Bank of England Notes had the
happier! effel in Liverpool, where they were pro.
duaive of the greatell benefit, and where they had
Anodic/ up all the Country Bank Notes, bec4ufe thoie
of the Bank of England were as good as cat them.
Dr. LAWRENCE faid, he would ark the Honout-
able Gentleman, who talked fo much about mcn
being hanged for forgeries, whether there was not
alfo an offence, called coining, which amounted
to High Treafon, and for which many men were
to be, and many had been hanged, as well as for
making what he was pleafed to call qffignies. The
meafure in quellion had been juftified by an over-
ruling neceffity ; it rofe out of the peculiar junc-
ture of public affairs, and not from any mifc,,n-
duet on the part of the Bank. If the cpteflion %%as
a new one—if the meafure was now for the &it
time propofed to be adopted—he certainly rhould
not think the arguments of the Right Hon. Gen-
tleman fufficient to jail), it. But as it was done
in the time of war and public difficulty, we fhotll
not now, at a period of returning peace, v n
onr Export Trade was nearly Ilationary, and the
Conde of Exchange againft us, run the rifle of that
danger that might arile from the Bank being com-
pelled to pay in cant. We fhould wait for the re-
turn of precious metals into the country ; and
until foreigners, who had hoards lying by them,
should bring it among us. The taking off this rc-
firiaion thould be done gradually, and the afire of
fmall notes might be limited from time to tint,:.
Mr. TIERNEY did not rife to enter into this quer-
tion, but merely to Rate that his opinion on it re-
mained unaltered. He conferred it was a bittli.tts
which could not be remedied on a fudden, and
therefore he would not &kit to a reftriai.ni for
a rhort time; but he thought the matter thoold
have been previoufly fubmittcd to a Committte,
in order to enquire how far and how long the ie.
Itrktion might be. That had been formerly done.
A Committee had pointed out the danger of tak-
ing off the reftriaion during the War: it flto old
therefore now be !hewn by a Committee, why it

was neceffary to continue it during Peace ? In.,
Ilead of which a Member got up and moved it as
a matter of courfe. If this aft was done on the
ground of its being an accommodation to trade,
the precedent was highly dangerous, becaufe ad-
vera aro-% who had entered into wild fpeculations,
wi•nid come to the Hdufe and fay, them was no
citi (dating medium for their accommodation, and
w,aild requite a further of paper. If another
ll'ar fnould break out loon, the Public would la-
niciit the Jay this projea had ever been adopted.
It 1,,,1 introduced a vice into the money tranfadions
of IL. country—it created a ground Fir alarm—
and tio wan coul.l fee what the ultimate event of
it would he.

The CHANCELLOR of the Excitultni fetid a
Committ.:e could do nothing more than
invelti-
gate that, on which there could not be a q.tAion
or a doubt in that Houle :—namel) , whether the
meat-tire :laving been already adopted anu con•
tinned fo 'tong :-.ight to be done away all at once?
If he had dloug,t the projed b.td o; iginallp, he
would fupptrt it now. With refpea to the fug-
gellion of the Hon.
,Gentleman, he would inform
the Honfe that the Bill he meant to introduce
would give a power to the Bank to exercife its
own ditcretion;u ith regard to thepayment of edit
they would be at liberty, but mutt not be compel.
led to do fo.

Mr. BIAGGI raid, the Bank at one period Co
much encreafed its bullion, that it might have paid
in cafh. if other circumtlanccs had not prevented it.
The fame circumflances Rill continued to operate.
Colonel ELFORD was of opinion that fame rea-
f^n ought to in Rated, to thew the ueceffity of con-
tinuing this meafure.
Mt. MA4NtNO Allred the Houk that the Re.
pnr of Forgeries on the B talc was much exagge-
-1 a ted.

Mr. Joier.e was furprifed at the llatement of the
G...ntleman, as he underliood that the Bank
employe.-1 no leis than 7o Clerks to collea inform...
tion refpeaing forgeries.
Mr.M%4NING repeated his affertion, and added,
that he was totally ignorant of the Clerks alluded
to by the Hon. Gentleman.
Mr. B''YD fuggelted, that it would be deferable
to precLie the introduaion of the propofe4 Bill
by laying before the Houle an account of the
debts and the ?frets of the Bank. This account
he thought necelary for the information of the
tiottle, and for the latisfatrtion of the public. It
was alto, in his conception, material to afcertain
whether the due of Bank Nt tes had increared in
confequence of the rellrkiion on fpecie ? He dr.'
not mean by thcfe hints to refift the introduaion
of tEe Pin, of the principle of which he approved.
Mr. Rossoo obferved, that he taw in the Public
AeLoatit, in the table an item of coed. charged
by the to Government for procuring gold,
which he thought very extraordinary to charge '
the Public, confidering the indulgence they expe-
rienced from this rariaion, which enabled them
to ;Woe an unlimited number of notes, with which
they could accommodate the Government to any
amount. In fad he did not fuppofe that the Bank
could confider it their interett to iffue cafh, nor
was a probable they would fo long as they could
avoid it.—After fume obfervations by Mr. Ties.
Nay and Lord Da Beaqyisits, the motion was
agreed to, and the Bills ordered to be brought in.

CONVOY DUTY.

The C►+svctt.t.ott of the EXCH tun moved the
Houk to refolve into a Committee of Ways and
Means, and that the papers prefented to the 1-16ufe
by Mr. Irvine, relative to the Convoy Duty, thould
be referred to the laid Committee.

The Houfe baring gone into the Committee,
The C/4411CiLLOR of the Ex cHEQZJEII rote, pnr-
bunt to the intention he Rated on Monday all, to
move for certain Taxes on Exports and Imports,
and on Tonnage, in lieu of the produce of the
Convoy Duty, which had ceafed with the war.—
He exprefted hi, acknowledgment to thofe Gentle-
men to whore affillance he was indebted for the
calculations upon which the arrangement was
founded, he had to propofe to the confideration of
the Committee—an arrangement which he trolled
would be very produaive to the Revenue without
in any material degree inconveniencing the mer-
chant. The Right Hon. Gentleman defcribed the
ou.lines of the Refolutions he had to fubmit. As
the Tax on Imports, it was intended to ''life it
born- 31. per cent. to 31. t zl. except In far as related
to tit: Imports tithe India Company which were
to remain as it now is. The Tax on Exports would
be reduced one half; namely iron zl. to 11. per
cent. thofe 'taxes to be levied, not ad valorem, ac-
cording to the fyflem under the Convoy Duty;
tut certain articles were to be filbjeeted to A itionifit
rote of taxation, as defcribed in a fchedule which
he would lay on the table. With refpe!t to ton-
nage, he would propofe to lay a duty of is. per
ton on all fhips clearing inwards or outwards, to
any pan of the world, except thofe for the EaR
Indies or Cape of Good Hope ' • on tlyz former he
pi:spored 3s. per too, and on the latter as. 6d. ; on
'hips in the coaßing trade 6d. per ton. The Right
Hon. Gentleman concluded with moving, " that
it he the opinion of the Committee that, towards
railing the Supply, there fhould be granted to his
Welly ti'e rates and dutks mentioned in the kite.
dole annexed, nn all exports and imports excepting
thole of the India Company. Ile alfo moved cer_
tainyelnlutions conformable to his flatement."

Mr. Fos TtR mfe to enquire how Ireland was to
be aFeacil by the operation of,the Tax on Ton-
nage ?
Tht CMAgfiLLot of the Excetacgtsa
that it e.-as to be fubjea to the fame Tax as the
Caviling Tr.ide.—The Refolutions were agreed to,
the !ionic maimed, and the Report "as ordered
to be received tamonow.