Star.
London, England, 1810-09-21 00:00:00

pmented
tention of the Court, and,_advertiog to a recent pub-
,' lication (the Report of the Bullion Committee of the
Rouse of Commons) which he observOd the Chair-
man could not officially notice, the Learned Gentle-
man spoke to the following effect—When, said be,
the character of any individual or body of men is pub-
licly attacked, it becomes a duty to take the first op-
portunity of vindicating that character ; and although
I am as unwillirtg as anrrnan to step out of the line
•f my professional pursuits, yet I feel too strongly I
how much I owe to this institution, to the interest')
of the public and to my own interest, to overlook the
animadversions contained in the Repbrt to which I
have alluded. That Report appears to me to con-
tain in effect very serious charges against the validity
of our stock, and our public stock. I wish to be un-
derstood that I do not mean to speak disrespectfully
of the Committee, nor to attribute their Report to
the influence of party motives ; but I must observe,
that that Report is clearly and avowedly inconsistent
with the evidence taken before that Committee. This
inconsistency is, indeed, so glaring and so material,
that I could not wish for any more complete vindica-
tion of this institution than the universal publicity of
that evidence. The fallacies contained in the Report
are of such a natute that it is in my mind of consider-
able consequence to guard against or remove as soon
as possible the impressions they are calculated to pro-1
duce. Among those fallacies, the first that strikes
me is the assumption as a fact, that Bank notes are
below par, because £lO5 would not buy gold
enough to make 100 guineas. The fact is, that the
market price of bullion has risen considerably above
the mint price, I believe about 16 per cent. But let
it be recollected that £lO5 in notes would buy as
much of gold as 100 guineas, if the gold were not
preferred for the criminal purpose of melting it. For
ifery legitimate purpose the one were quite as effici-
tient• as the other, and how was the disposition of
men to violate the laws, to act disloyally, to risk
%their liberty and character, to be provided against, or
bow could that disposition operate in any fair consi,
deration of the subject ? Mr. Merle, Mr. Goldsmid, '
and other gentlemen of high character and intelli-
Renee, stated in their evidence before the Committee,
that there was no difference between the value of
Bank notes and coin. These,..Gentlemen alledged,
that they neither felt nor perceived such a difference
in any of their extensive and various transactihns.—
In fact, they declared that they would as soon take
Banknotes as cash in payment ; and why not ? when
Bank notes were as acceptable as cashin any payment
whatever to be made, either for corn or goods of any
description. Yet the Report of the Committee to
whom this declaraticin was made by such high autho-
rity, before whom the depreciation of Bank notes
was broadlpand positively contradicted throughdut,
the whole of the evidence, thought proper to express
quite a different opinion.
The next fallacy with which I have to charge the
Report is, the allegation that this institution has is-
sued an excess of paper, to which excess the Com-
mittee attribute the advance that has taken place in
the necessaries of life and other commodities. Is it
possible, I would ask, that the Committee can se-
riously mean to impress upon the lower orders of the
people, that the advanced price which they pay for
provisions is owing to the conduct of this institution ?
But what do the Committee mean by an excess of is-
- oue? I am prepared to shew that the issue of our paper
was comparatively more, considering all circumstan-
ces, previous to the Act of Restriction, than it has
been since that period. It is, in fact, clearly dedu-
cible from the evidence, as well as from notorious
circumstances, and from admissions, even in some
parts of the Report, that your issue has beenyather
parsimonious than excessive. in the year 1797, when
the Restriction took place, your issue was at about 11
millions, but it was reduced to that amount in con-
sequence of the alarm which then prevailed. Previous
to that alarm your issue was generally about fourteen
millions. That issue including the £1 and notes,
without which society must have stood still, has for
some years averaged about 20 millions. Thus the
increase of your issue has not exceeded six millions,
and how can that with any colour of fairness be pro-
nouoced an excess, considering the progressive in-
crease of our commerce, and also the increase of
!punt!), Bank piper ? It is known that the increase
of our commerce from the years 1805 to 1809, was
tie less than 15 millions! and I believe I do not over-
rate, when I State the increase of our commerce since
the year 1797. at 50 millions. I ani'not in possession
Of any memoranda at present to justify this estimate,
but the increase of our commerce is undeniable, and
it is equally undeniable that the increased issue of
our paper has been trifling, compared to that in-
crease of commerce.
.Now as to the Conntry*Banks, it appears that since
the year 1797, when their number was at about two
or three hundred, they have increased to between 7
and 800, and that their issue amounts to no less than
$0 millions—yet no charge of excess was applied by
the Committee to this issue— no, that seemed to have
been. lost sight of, and the whole of the sin was con-
: fined to this institution, for making an increase of six
millions in its issue within a period of thirteen years
of prodigiously-increasins commerce ; this increase of
fssue.too having been made in the discount of corn-
mercial bills, secured by valid bona fide mercantile
property. But the cause of the increased issue esca-
ped the notice of the Committee. The commercial
accommodation which the Dank afforded by that
issue was overlooked by the Committee. This T com-
plain of as a sin of omission against this institution ;
but I am more disposed to complain of the sin of
commission against you, in imputing to you the rise
that has taken place in the price of provisions. But
here, as in other points, the report is inconsistent with
5.,•-„,•'....t0r while it attributes to you, whose increased
Albite has been, as I have shewn, only six millions, it
VI Woes in another put,-that your circulation is chiefly
to Lowden and its vicinity, and consequently
paper ram* the• cause which affects the
• keufttit markets. This must surely proceed from tha
• 1a of the Country Links. The fault alledged by

of the .
regard to these ,
-t of the justl
and who
to commerce,
requiring
Another fallacy
of commerce, which is in no,degree attributable to
this institution. The suggestion in the Report upon
this point is indeed negatived by the acknowledgment
of the Reporters as to the moderation and self-denial
of the Bank in its issues. It would, in fact, ge quite
preposterous to maintain that an issue of 20 millions
of paper could have the effect ascribed to it upon the
commerce, the provisions, and the general currency
of the country. Undoubtedly the price of provisions
must be affected by the mass of our circulating me-
dium ; but the same effect would be produced whe- '
then that circulating medium were in specie or in pa-
per. But in the eager prelerence'which the Commit-
tee express for the circulation of the former, and their
urgent desire that you should pay cash for your notes,
there is an omission on their part, which I think be-
trays a Kant of candour. In no "part of their Re-
port do they notice, that but of the 20 millions of
notes which we have in circulation, the public awe
us 18 millions—* that the public hold a security in
their own hands for no less than nine-tenths of our
whole issue. This is a fact of importance, which
plies to no other moiled or mercantile institution in
the country. From this fact, indeed, we are entitled
to say, that if the public think Bank issues au evil,
they may annihilate them in twenty-four hours. If
they wish tb dissolve this institution, let them pay us
the 18 millions they owe us, and we will make up
the remaining two millions by subscriptions among
ourselves within an hour, so as immediately to dis-
charge all our notes. But there are other and im-'
portant advantages derived by the public from the
Bank, which the Report has declined to notice.—
We actually pay to the public, at present, 4210,000
per annum, in consideration of existing circum-
stances—that is by lending three millions gratui-
tously until a peace is concluded, and by an abate-
ment of interest to the amount of 010,000 upon a
former loan. This, however, is not the only grant
we have made to the public. You agreed with Mr.
Pitt upon the renewal of our charter to lend 3 mil-
lions to the public for six years gratuitously, and
afterwards at an interest of five per cent.—This
interest was afterwards, by an agreement with Lord
Grenville, with whom your bargain was open-
ed, reduced to three per cent. which produced the
abatement of £60,000, which I have mentioned.—
Again, your bargain was opened with the present
Administration ; but let us hope that the report upon
which I am speaking may not be the forerunner of
another opinion. Your grants to the public are al-
ready sufficiently ample—are as much as justice
co-ld allow, or liberality could accept. For, lade.
pendly of the sum of £210,000 which I have sta-
ted, you have agreed to abate your claim for the ma-
nagement of the public debt, to' the amount of
£70,000 per annum, besides relinquishing the advan-
tage you derived from the unclaimed dividends.—
Thus are the public considerable participators with
you in the profits of your concern, and of course the
amount of the dividends to the Proprietors is propor-
tionally reduced. Yet these facts are not mentioned
---,are not at all alluded- to in the Report, and I be-
lieve they are but very partially known to the country.
Notwithstanding the liberal participation of our
profits, which, as I have detailed, the public enjoy,
it appears from the Report, that a suggestion had
been thrown out to the Committee to seize upon our
surplus profits What, to seize upon the profits arising
from the legal and honourable exertion of our trade !
—upon that which was the result of labour and ha-
zard, conducted upon the same just principles, and
standing upon the same fair footing as other mer-
chants ! The very idea was extraordinary, and it
WAS almost equally extraordinary that the Commit-
tee, instead of merely expressing their disapprobation,
did not reject k with all that marked abhorrence and
indignation which such an iniquitous proposition was
calculated to excite in virtuous minds.

Upon recollection, I think a similar proposition
was made by Marat, in the National Convention.
—I remember that his proposition referred to the
property of the merchants of Marseilles and Bour-
dean:, and he had many supporters. Yes, that
factious demagogue and Ins coadjutors, having suc-
ceeded in prostrating the aristocracy of rank and
birth, wished also to break down the aristocracy of
wealth—the public necessity being their pretence, but
universal revolution their object—supply being their
profession, but equality their principle.
I come now to the conclusion of the Report, and

from a view of all the circumstances, a most extraor-
dinary conclusion I cannot hesitate to pronoun& it.
The Committee recommend that you should be com-
pelled by a Legislative Act to pay your notes in
specie in two years. What a variety of mischievous
consequences would flow from the adoption of such
a recommendation. It has been often observed, that
sufficient for the day is the evil thereof, but that adage
is totally inapplicable to a case of this nature. Pre-
cautions cannot be too early taken to guard against a
great public calamity. We cannot too soon enter our
protest against the recommendation I have mention-
ed —There is no man who has the honour to know
and the opportunity to appreciate your Honourable
Board,but must concur in the compliment pronounced
upon your conduct by the Report. I am the more
glad of this compliment, because it proceeds from a
quarter evidently hostile to your interests, and indif-
ferent to your feelings. If they were not so hostile
and indifferent, why, in the name of common justice
and common sense, should they demand that which
in plain English is nothing less than this, that what-
ever may be the price of bullion, you shall be obliged
to buy it, in order to pay in specie at a fixed period ?
What an encouragement would thus be held out to
imposition by pointing at you as those who must sub-
mit to imposture—who must buy bullion upon any
terms ! Can any proposition be imagined more un-
! just and ungenerous, and if acted upon, more inju-
rious to the commercial world ? In the name, then,
of justice and generosity—in the name of all orders
and professions interested in sustaining the monied
and mercantile interest of the country, I enter my
protest against this extraordinary proposition.
examining the justice and gencrouty of such

the sacrifices you made in 1 Y 797, our army must b 1
starved in Flanders. You besides made advances to
enable Government to subsidise our allies. It is not
now necessary to inquire into the policy of these sub-
sidies. It is undeniable, that the circumstances of
the times and the sacrifices you made for the public
safety,_ produced the inconveniencies you then ant-
lered. Yet your wish was, under all disadvantages, to
eentinue the issue of your specie. No less than 29
41lines in 1'795 and 1796, your Honourable Board of
Directors remonstrated with Mr. Pitt against the pro-
ject of restriction. Here I must observe in passing,
*it it would perhaps have been as well if your Wo.
'Ourable Board had convened the proprietors, had
consulted your constituents instead of repeating your
remonstrance* to Mr. Pitt, and had taken their
op-
nion before you had concluded with him. To the
public, however, you advanced your Money, and had
you not conceded to the proposition of Mr. Pitt, the
Government could not have gone on ; and was it
now for that public to say to you, g, yoti have ex-
hausted yourself of bullion to sustain us in the day of
need, and yet we will now compel you to buy bullion
at any price, in order to give it in exchange for your
looms, or even for the notes which we have borrowed
from Tod ?" But what would be the consequences of
,obliging you to comply with such a requisition?. The
first effect of appointing the payment at a fixed pe-
riod would be to encourage speculators to hoard the
coin, in order to make the Bank pay through the nose
for it. But the moment you were ordered to pay,
you must prepare by limiting your issues, by confi-
ning your discounts, and what a convulsion Would
that occasion in the commercial world Those who
remember the circumstances which occurred in 1797,

arising out of your resolution to limit your discounts,
must be aware of the effect of such a measure upon
the mercantile body ; must be able to foresee the ca-
lamity the advice of the Committee would produce,
were it possible that it ever could be acted upon by
an intelligent House of Commons.
from some parts of the Report of this Committee,
'one would really be inclined to suppose that it was
drawn up by persons not at all in the habit of consi-
dering commercial operations, particularly with re-
gard to exchanges, and the appointment of a fixed
period for the payment of bullion. Why not leave
this question, as to the resumption of cash payments,
to the discussion of the Directors, its all the mercan-
tile witnesses so strongly recommended to the Com-
mittee ? and why doubt the proper exercise of that
discretion, which even the Committee itself applau-
ded ? It is a fact easily capable of proof, that the
compulsive resumption of cash payments would be
much more fatal to the interest of the Commercial
World than to that of the Bank Proprietors. In the
event of such a compulsive measure, the Bank would
naturally, in its own defence, forbear to issue notes,
to pay which they must buy bullion at an advanced
price. Judge then of the consequences. From what
happened through the reduction of discounts in 1797,
what must be apprehended from any such attempt in
the present augmented state of our commerce ?
Even the Committee deprecate any recurrence to
such a measure of limited discounts. On the con-
trary, they recommend coinage to the Bank, without
any consideration of the means by which that coinage
is to be sustained. They recommend coinage to an in-
stitution the character of which the Report is running
down ; they recommend coinage to an institution, while
a prospect is held out of seizing.upon its surplus profits.
I do not mean to deny that it is a solecism that the
Bank should not pay its promissory notes, but still,
considering the case and all the circumstances of the
case, I would leave the time of payment to be settled
by slow progression and deliberate caution. I would
confide in the discretion of that honourable Board to
whose character and conduct even the Report, which
would deprive them of discretion, bears the most com-
plete testimony.
The Committee states, that it is necessary for the
recovery of our credit upon the Continent, as well as
at home, to resume cash payments at the Bank, and
that such resumption would serve to cure the evil of
exchange ; but does any thinking man, acquainted
with the subject, imagine, that if cash payments were
resumed at the Bank, these payments could continue
for any time.—ln fact, all the ld would vanish in a
week after its issue. Then we should be under the ne-
cessity of soon restoring the restriction again, and I
would ask you, as merchants, whether it would not be
better to make no pledge than to make one you must
break—whether it would not be better to decline mak-
ing a promise which you cannot perform ? Such must
be the consequence of the rate of bullion,and the state
of commercial exchange, which I contend isnot afFected,
as the report alleges, by the restriction of the Bank; but
as the mercantile witnesses stated before the Commit-
tee, by the nature of our commerce, by the balance of
exports and imports. For what effect could gold sent
to the Continent have upon the rate of exchange any
more than any other article of merchandize of equal
value ? But as a proof that the rate of exchange has
not been affected by the state of the Bank, it is only
necessary to state this fact, that the exchange with
Hamburgh is thg samenow that it was in the year 1797.
—But when the Committee determined so earnestly
to recommend the resumption of cash payments, and
a compulsive measure upon this institution, it would
have been but becoming in them to recommend, as
a preliminary step, the repayment to the Bank of the
18 millions due from the public, and also the resto-
ration of the £210,000 derived from the Bank in con-
sequence of the supposed advantages resulting from
the non-payment of cash. This was a line of proceed-
iag which at least common justice should have urged
the Committee to propose. The Learned Gentleman
f concluded a very impressive speech, in the course of
which he was repeatedly cheered, and particularly on
his deprecating the proposition pf the Committee, to
resume cash payment in two years, by exhorting the
Directors to continue to pursue that same firm, up-
right and undeviating course which it appeared by
the evidence had distinguished their conduct, claimed
by power, and unmoved by faction ; to continue tb.
same liberal advances to the mercantile interest, and

hi Midi k
h. with the
the public, they we*
at all events. be wt.
°Deviate those who ar,L4
they well deserved the

of the Bank of Fate*
_ short speech, W
ing that HonourableHonourableCourt that in the evidenceiest; eridu
he gave before the Bullion Committee, he had hes
influenced by ao sinister motives whatever, whethe
of a political or a private nature. In a enesdual
such vast importance and general interest, he mutti
chaise knew his duty too well, both to that Comae
and the public, to be induced by any considered%
to give a partial or fallacious statement of what%
was his knowledge, or of the impressions that .
ledge had produced in his own mind ; for the mei,
tors, he would take it upon him to say, that eL
would, as they were bound, pay uniform and anion
attention to those measures which might resulefren
the Report of the Committee, and here he could an
help expressing a hope, that the public in read'
and investigating that Report, would give more c
tention to, and lay greater streskupon, the aides,*
laid before that Committee, than, he was sorry to te,,
the Reporters themselves seem to hate done. (liu.
hear.) It was to be regretted, that a /tem
avowedly founded upon that evidence Was not more
confOrmable to it. He therefore threw, out this
a 'caution to the public, not to suffer themselves is
be implicitly guided by that Report, without Ady
weighing the nature of the testimony laid before de
Committee. From the able speech they had jec
'heard, it would be unnecessary for him to detain**
!by any observations upon points which had been 4,
ready so satisfactorily dwelt upon. He, however,
concurred so entirely in the opinions of the let
"speaker, respecting the issue of the Bank Paper, de;
instead of agreeing with those who professed to thick
that that issue had been excessive, that he, on the ace.
Crary, thought it just matter of surprise, that torsi.
dering all circumstances, it could have been so ma
derate as it had been. The increase of issue, instead
of being so extravagant, as some have represented,
was not in proportion .to the exigencies of the time.
Tray issue of paper for this year, independent of the
este pound notes and two pound notes, was very little
mote than fourteen millions, a sum to which it ins
well known, that their paper issue, with the same et.
eeption, amounted a short period before the year 1797.
In the course of the year 1795, this piper issue
amounted to fourteen millions, and it was at present
very little mere. 'There never could be an excessive
issue of paper, as long as the Directors took art
that there should be an exact proportion thief.*
betweeu the necessities of the public and that nail
that object thn laudable caution of the Dimon
would uniformly support, by resorting to those seme
within themselves, and refusing to disease eile
did not appear to be valid mercantile paper. The
disposition to accommodate the public would near
sarily, for the sake both of the public and theme%
be regulated by this very proper caution ; and is
as the manuerin which their notes were Wild &poll
so much upon the extent of the applicadwpedale
discounts, in order to make good thew •••
of course followed that this was of itseWieeh t gin
troul oaf tie issue as that it could never deabunt gbs
excess. With retspect to the rate of exchaszehnezdd
not agree with those who thought that it ea
the price of bullion ; his opinion was, that the rated
exchange was rather effected by the gated MINIM
and that as the circeasstances of assieuraldidbappea
to be merger less favourable, so in proportion wade

rate of exchange more or less advon- corous; sal if
repeated it as his opinion chat it frif do=
did not in proportion to its
the price of bullion, or in materially a ang tho IMP
of the exchanges. He regretted that be was unibleahl,l
qukelt to express his own sentiments, and thowaf
Gentlemen in the Direction, for the very handset'
manner in which the Gentleman who spoke last Indi
done justice to the motives which had actuated their
conduct. He had no'doubt, that the Directors Ina,
by adhering to the same line of conduct, to the same.
prudence and firmness, secure a continuance of that
support which the public had hitherto given them.—
In answering all demands made upon them for his
counts, they would never lose sight of the public 10
terest by looking not merely to the solidity of the
paper, but endeavouring, as fir as it might be porsi-
hie, to be certain that the paper is to be issued for
commercial purposes. He concluded by thanking the
Court for their attention. ( Near, hear.)
Mr. PAYN, of Bath and Wells, Banker, when the
question was about to be put, rose to make one more
&mm•vations. He applauded in his heart the greater
portion of the sentiments so ably and eloquendy urged
by the Gentleman who first spoke, but as it was ad-
misted that the present circulating medium of the coun-
tr y had fallen into depreciation, if the cause of that des
pr!ciation be not what the Report of the Bullion Com-
mittee alledges it tobe,he thought it was desirable to rs.
certain to what other source this acknowledged _ ,efe4
was to be traced. In the corn countries ea_ L 1111•1
the paper money of'ootintry bankers meet adammw•___
He admitted that the issue of their nous by 30".
' country bankers had been very indiscreet- He wst
himself a country banker, and he had with annul
others in Cie same business endeavoured, as far as he
could, to restrict the issue of the smaller notes. He
thought that the issue of all notes under a aqua
amount should be confined to the Bank of WV ;
solely ; but he had known persons after set
blo
. losses in other trades, take up that of a country
and proceed to issue small noes, though at the tin%
he, Mr. Part, could not with safety to himself gist
them any accommodation. It was known to* be d's
practice of corn-factors and other dealers, to ems"!
in their demand for their respective coonnotlitimr
nature of the medium in which they were to be pot;
and liehas known the practice to have prevailedollt!',
ing very considerable abatements in the tinkles Wel
for'sale,in proportion to their opinion of the omit/ •
themedium in which they were to be paid for thole s&
cies. The farmer sold his grain to the comfastor,
cornfactor sells again to the bread-baker, the bat
may be paid in a very different manner, he receiriagr
fr.
payment in the existing smaller currency of that
of the country. He wished be was able to follow IP"
through all its consequences. He hoped, bouve'
that others more capable would consider it. Hf,
fessed himself lie advocate act the honour 1""

. .
'the ea
ittETING 4E TEA &OM. In ma]
• dersto4
Yesterdaytheie was a thrtneious meeting orthe Di- mesh
sectors sad Proprietors, :ee their house in Thread- regard
needle-caret: "About one o'clock the Chairman of that of
the Conte...of Directors ptepoied that the dividend more,
Upon their prof is should be 10 per tesit. Upon this utility
proposition being pUt, try req
Mr. RANDEL JACKSON prC4elited himself to the at- Anc

. .
. .` . - : . • , _
te must beluga to that, and il ' - . let it Ise mama W Amer ma- for too___ is °ll°° entillos
At bi
us observation, I beg to be ' , ,
~., , ... you were exhausted or your berms in .spraredthastitel beeatesserued.istaetts.
at Ido not meta to speak in -„7 ~ public interest was
.placed in a state of Iva bat interests,
Country Banks—No, my ~'. as • • Atiabost peril, mid for thtz!ic safety and accom- = aad erlide Its boomer of the public, ti
4.. i.
se institution:perfectly correspond.: . monsoon you lent your b Without entering be sure of public support ;or at all event
ustly respected Baronet who is now 1140 "Into any question as to the propriety of the conduct bled, as they had done, to convince those i
ho so properly pronounced them of great you then adopted, without considering your disposi- inquire into their affairs, that they well des
Imerce, and of peculiar utility in a court- tion or your duty to submit to the utmost sacrifices in support.
a large circulating ratdium. i your power, when fighting for our liberties and our Mr. Prime, the Governor of the Bank of
Macy in the Report refers to the balance homes, t believe I may say, that if it were not for next rose, and commenced a short speech,
-. . • . . .. - . . , A__ _.._.:e___ ___ -- -a- :- I "nor ..... ....en. mitt linos ;no that Presserilide entirt thee ig. ei....-:.2.