Star.
London, England, 1803-02-12 00:00:00

BANE RISTRICTION PILL.

The CHANCILLOa of the Exc.+ Kyle moved
the Order of the Day for the Houfe to refolve
into a Committee on the Bank Reftriftion Bill.
TheATTOLNITGINsaAt. rofe to move, that the
Committee be empowered to receive a claufe for
the better regulating and afcertaining the legality
of tendering Bank of England Notes in payment
of debts, or for the difcharge of perfons in cuflody
for debt. Applications had been frequently made
to the Courts of Law, in complaint againfl Offi•
cers for detaining perfons in cuflody for debt,
notwithilanding a tender of the debt and colts, in
Bank of England Notes. The claufe he meant to
move for, was, that all perfons making fuch
complaints to the Courts, (hould accompany them
by affidavits, that litch tender was made.—
Leave
.given. The Houle then refolved into a
Committee on the Bill.

The Cnawczaaoa of the Excuanyta moved
that the blank in the Bill, for the time of its du-
ration, be filled up by the words, " until 6 weeks
after the commencement of the next Seffion of
Parliament." He, at the fame time apprized the
Houle, that there was a claufe in the Bill for
enabling them to alter the period, if neceffary, at
any time within the prefent Sefton.
Mr. BA N It s oppofed the duration of the Bill for
In long a period a► that moved by the Right Hon.
Gentleman. He would not fay that fume further
rellri&ions upon the iffue of calli from the Bank
ought not to be necefrary ; but fill no grounds
whatever had been laid before that Houle to war-
rant them in believing that rellrielion necefrary,nn-
lefi the affertion of his Right Hon. Friend could
be confidered as a fufficient document. Some I
Gentlemen might poffibly have had accefs to pri-
vate
information on the fubjef, fufficient to fatis-
fy
their minds, but this was by no means the cafe
with the majority of that Houfe ; and, therefore,
he thought the Houfe, in order to jellify them-
Wires, as well to the community at large, as in
the precedent they were about to lay down for the I
proceedings of future Parliaments, on fimilar f
cations, ought to appoint a Committee, and intli-
tute a fulemn enquiry on the ftibjelt,fo materially ti
affecting the vital principles of commerce and Na.
tional Credit ; an enquiry fuck as had been infli-
tuted upon the former occafions, when fimilar re.
drietions were laid, and which, like thufe, he had
no manner of doubt, would redound equally to
the folidity and fecurity of the Bank ; and give
new Rrength to the public faith in its (lability.—
flue only re.tfons, he laid, which he had heard
affigned la) his Right Hon. Friend, for the conti-
nuance of the reftriatun, were fira, the unfavour-
able Rate of exchange with the Continent ; and,
fccondly, the rifk that wonld be incurred of an
embarraffing run on the Bank of England by the
Country Barks, in cunfequence of the rapid de-
maids, which would be made on themfelves, for
the amount of their notes in circulasjpn. With
refpeit, however, to the firß of thole reafons, the
, Right Hon. Gentleman himfelf bad Rated, that
the exchange with fume principal places un the
Continent was at par; and, with regard to the
fecond, it had been exprefsly Rated, that the Bank
fo far from being unable to meet the public de. 1

tnands by an adequate quantity of cant, had ac-
tually increafed its cafh and bullion in a five-fold
proportion. Could arguments fuch as thefe then
warrant, for a moment, the meafure of further
reftriaion for a period of near twelve months;
and this too, according to the Statement of the
Right Hon. Gentleman himfelf, without any with
or application whatever from the Bank, or from
any other quarter, expreffed on the fubjea.—
Another Hon. Friend of his, on a former night,
exprelfed his objations againft a Committee of
Enquiry, becaufe he apprehended it might excite
alarm : but he could undertake to fay with
certainty, that never, at any period of the hiftory
of the Bank, did its credit (land fo high, as it
did immediately alter the former enquiry ;
and fuch, he was convinced, would be the re-1
fuk of fimilar invefligation on the prefent oc-
cation, more efpecially as it was known that her
bullion, fo far from being decreafed, had im-
proved five-fold fusee the reftrietion was first laid
on. Another reafon for fpeedily taking off the
reftriftion was, that the Bank of England was by
no means In much the mailer of paper currency in
the country as formerly ; and the longer the re-
firiaion continued, the greater quantity of that
paper would get afloat, over which the Houfe had
not in much controul. Betides, even the Bank
Notes Kited from the Bank of England, by the
laft return, did not appear to exceed 15,160h0001.
Under this circumfiance, with exchange at par,
there was nothing, in his mind, to juflify the con-
tinuance of reftriaion beyond the ft of May next,
which day he fhould move to infect in the blank,
in lieu of that propofed by the Hon. Member.—
There would be ample opportunity in the inter-
mediate time for going into a Committee on the
fubjea, and taking the opinions of Gentlemen
who were moll converfant on commercial topics.
The Right Hon. Gentleman had given on a for-
mer night, as a precedent of proceeding without
enquiry on a fubjea of Inch importance,refpating
the Bank, the renewal of the Bank Charter, upon
a consideration of three millions to the State.—
But this, he obferved, was a mere matter of
financial arrangement, Rated in the Ways and
Means for the year, and therefore, not a fubjea
to neceffary for enquiry. Upon the whole, he
was not averfe to extending the reftriaion as
far as it could be reafonahly necellary : and this
he thought, in the utmoSt limit, bad no occafion
to exceed the r St of May, which he propofed.
The CMANCILLOt of the Exca sew Etinggefed
that it would be better for his Hon. Friend to move
his amendment upon the report.
Mr. PRIN.(' laid, he thought it his duty, as a
Member of that Houfe, to give his fupport to the
propofed continuance of a meafure from whence
the greateft advantages had arifen. At the time
the Refiriaion firs took place, it was confidcred
as a revere Stroke to commerce, but increafed
profperity had been derived from as event which
every man at the moment of its happening de-
plored.—(The Honourable Member was proceed-
ing to difcufs the fubjea at some length; when he
was reminded by Mr. Alexander that the only
queflion was as to time.) He was of opinion, he
(aid, that no time thould be limited for the dd.-
continuance of the Rearieion. Many advantages
had accrued from the Reftriftion, whilft no evil
had arifen out of it. He thought that the reftrie-
tion did not offal the Courfe of Exchange, neither
did the export of bullion. The Hon. Gentleman
(Mr. Banks) bad not, he conceived, made a fit&
cient diftinetion between coin and bullion. With
refpeil to the confequences laid to refult from the
rettriaion, what difference was share between a
Bank note and a guinea as to the articles of every
defcriptlon which it would porthole ? He conceiv-
ed that a great number of advantages hold arifen
from the reftriaion, and therefore he Should Cup-
port it.
Mr. Boom:mu its obferved, that we were jullified
in looking forward to an increafed exportation,
and a confequent influx of bullion, which would
of courfe render the courfe of exchange more fa-
vourable to this country.
The CHAN en.Loa of the E :cm any ea replied at
tome length to the obfervations of Mr. Banks.—
The Hon. Member, he contended, had adduced
his precedents of inquiry from periods very.mate-
rially different from the prefent. The examples
quoted from the eondua of Minißers at the ori-
ginal reftriltion, did not all apply in the cafe now
befote the Committee. The caufes which pro-
duced the reftriaion naturally fuggefted the :ma-
ture to a wife and vigilant adminiftration ; and
the circumflances arifing out of it alto fuggefted
the necelhity of an inquiry. The original Stoppage
of the Bank produced a Strong (edition in the
country, and therefore it was prudent and
becoming to inStitute an inquiry to fatisfy the
public of the objeas which prompted the proceed-
' mg, and particularly of the complete folidity of
the Bank. If a doubt were now entertained of
that folidity in arty quarter, he would admit that
it would be a good argument for inquiry, but as
no fuch doubt appeared to exiSt, be would oppofe
it. He was aware that the grounds of the reftric-
, lion had, on two occafions, been explained very
fully by the Reports of Committees ; but the
Houfe was alto aware, and Gentlemen mull re-
,
coiled. that it was afterwards voted to continue
until fix months fubfequent to the conclufion of
Peace, without any inquiry at all, and fo it ado-
ally exi fled for upwards of three years, without
any inveStigation whatever. Certainly, in the
courts of the laft feffion, an inquiry was preffed
for, but the unfavourable State of the exchange
was confidcred a fufficient ground to justify the
continuance of the regriftion ; and the fame ar-
gument, combined with other circumStances,
pleaded for it now. For, as he had explained on ,
a former evening, we had at prefent no money to
ewe from any quarter, and we had a considerable
exit to apprehend, and that of courfe Strongly forbid ,
the opening of the Bank. It was material to can. I
rider that before that opening Should be permkted,
we ought not only to be guarded that no confide-
rabic amount offpecie Should go out of the mkt-
try. but that we Should have reafon confidently to
rely on a confiderable influx of bullion, to prepare
the bank for the inereafed demand upon it, which
was naturally to be a:patted. Would it, he would •

ark. in the relent circumaances. be at all wife or
difcreet to fuffer the l3ank to refume its Inneions ?
Nothing could require more careful deliberation
than the period and the circumflances in which
that liberty Ihould be granted. Indeed the diffi
culties attending the removal of this reftrietiun.
were among the principal arguments urged agabilk
its original adoption ; and though they were not
fufficiently forcible to refill that meaftire, thty
formed the fubjefl of rave and anxious confide.
ration. They deterred the iitmoft attention, and
it was the duty of Parliament to guard agaiirt
them. Imprelfed with a pill fenfe of that dins,
he could not help oppnling the motion of his Ho-
nourable Friend. However ardently he walled,
and however much he hoped, that it would be in
the power of the Hurtle to take off the rellrielion
before the tll of May, yet he did not think it
would be fitting the wiftlorn of Parliament to le-
giflate upon a calculation that circumflances would
be fo much more propitious by that period. There
did not appear a very Wong probability of it.—
He might entertain (rime hopes, he might indulge
his wilhes, but he thought it wirer to look forward
to the next feffifin, and fo to fill up the blanks.—
He did not like to hold out any delulive expefla-
tion to the public that the Bank would be able to
open by the ill of May ; betides, if that period
Wl3 fixed, it would he produelive of very injuri-
ous confequences to the Bank. Feeling it to be
their duty to prepare for the event, it would
have the die& of obliging them to lock up
their capital, or to apply it to porthole bullion.
—ft had, indeed, been atferted by an Honour.
able Gentleman, on a former evening, that they
were bound to purchafe that bullion, even at a
lots, in order to pay their notes. But fuppole they
did purchafe it, would that materially increafe
the quantity of fpecie in circulation in the coun-
try ? No; for the confequence would be, from the
prefent Rate of exchange, that the Bank would be
at the expence of bringing the bullion into the
country, and it would quickly go out of it again
by means of interefled exporters. He, therefore,
looked forward to the day when the exchange
would become liable, and when no danger could
arife from allowing the Bank to refume Its opera-
tions, and he tirongly exhorted the Houle patient.
ly to wait for that clearable period ; for if die re.
ftridion were previoufly allowed to ceafe—if it
were taken off too loon, he was confident that
Parliament would be compelled to retort to it
again ; therefore, he deprecated any Firth or pre.
mature proceeding. He repeated his objetlions to
a Committee of Inquiry; but he declared that if
any doubt prevailed among the community, as to
the fufficiency of the Bank, he would not only not
oppofe, but would be forward to anticipate the
motion of his Hon. Friend. If opinions only were
defired, they could be fully as well obtained from
the obfervations of Genklemen in the Houle, as
from their report as a Committee. It would, in
fee, in his Judgment, be quite an anomaly to
appoint a Committee, merely to declare an opi.
nion. If it were wifhed to inftitute a Committee
for general purpofes, to inquire into the nature
and tendency of our paper fyttem, Gentlemen
might propofe it, but it had no necetfary connec.
tion with the fubjed now before the Committee.
The Right Hon. Gentleman took notice of the
obfervation of his Hon. Friend, refperffing Ms al.
lufion on a former day, to the opinion of the Bank
I Dire ors, an allnfion which was not corredly
quoted, for he (Mr. A.) did not fay Ithat he had
never confulted Bank Direflors on this meafure ;
1 he had had a converfation with thole Gentlemen,
and their anfwers were candid; he had heard their
opinion very fully, but what he (fated on a for.
mer day, and what be now re-Rated, was, that
they exprefed no with for this bill, and that he
did not Rand up to propofe it in confequence of
any requeft from them. The refpe& to which
their opinion was entitled, his Hon. Friend ad.
mitred; indeed the concurrent teftimooy of the
country was in their favour, and the accounts oe
the table chart?' (hewed, that they had not ufed
the difcretion with which this Bill originally invea.
ed them in an unbecoming manner ; that they did
not Sue more notes than they had ample property
to anfwer. The -country was aware of this, and
grateful for the important benefits it derived Cross
the inftitution they fuperintended, particularly in
the year 1793, when the increafed commerce of
the empire rendered our fpecie Co infufficient as to
call for a new circulating medium. In order to
judge of the prudent management of the Bank
IDireaors, he had only to Rate to the Committee,
that with the exception of two millions of (mall
notes, ifued for the indifpenfible convenience of
the public, the quantity of Bank Notes now afloat
is almoß exaftly equal to that afloat in 1793, and
exceeds only by one million the amount outland.
! in; at the period immediately preceding the re-
. Rriaion. The paper fyftem, in faa, which was
commenced and patronized by the Bank, wan
lemons the primary caufes of our commercial
' profperity. That this fyllan might be carried to
extreme, he admitted, but did the Hon. Gentle.
man imagine, that the opening of the Bank would
prevent that extreme. or that it would tend,
without any influx of (petit, to increafe the clan.
tity of gold in circulation? The Right Hon. Gen-
tleman replied to the arguments of his lino.
Friend, relative to the analogy which the renewal
of the Bank charter had to this Bill. and he infra-
I cd, that if the wifdom of the inltitution had not
been generally approved, that meafure, which errs
much more than a mere financial arrangement, as
his Hon. Friend termed it, would not have been
adopted, without any inquiry; and he, therefore,
inferred, that that aft was a very appropriate pre-
cedent to cite upon this occafion. To the remark
of his Hon. Ft lend, that ton clofe a cotinellion
Ihould not exift between Government and the
Bank, be was ready to fubferibe, but he confelred
that he was at a lois to know to what circuits.
Rance his Hon. Friend meant to refer, or what
1 tranfaaion gave rife to that fentiment on this oc.
cation. He (Mr. A.) knew of no intlance in
! which the Bank had given any material credit to
Government. He remembered that. when a fol.
pinion of this fort was hinted at on the original
leans:lion. one of the great and prirfed objells
of the inquiry, was to afsartain the faa ; and tba

IMI

refult completely removed all grnunds of fufpi-
cion. With refpeft to the connexion which Go
vernment had at prefent with the Bank, the fael
was, that the advance upon Exchequer Bills to
Government was now lefs than what it was even
previous
not be laid, that this advance could form the
fli4htell impediment to the opening of the Bank.
Tile Right Hon. Gentleman repeated, that he
would conceive it extremely abfurd to agree to a
rnmittee for the purpofe of inquiring into that
which was notorious, and which formed the
grounds of this meafure. He recapitulated his fe.
veral arguments; and in anfwer to the declaration
of his Hon. Friend, that if any Member of Admi-
nitiration would fay that there was any thing in
the political fituation of the country which ren-
dered the refirittion neceffary, he (Mr. B.) would
wave his objeaions : the Right Hon. Gentleman
Rated, that, without offering any thing more than
what general obfervation of the circumitances of
Furope furnithed, he would afk, whether this was
a period, politically fpeaking, at which any man
of thinking habits would ferioufly advife to let
afide that rearittion—and whether fuch a perfon
would not rather recommend us to fubmit to the
inconveniencies which we do know, than refort to
a meafure which might expofe us to inconvesien-
cies, of the extent of which we could nut even form
a conjeaure ?
Mr. BANKS fpnke fhortly in explanation, but
urged no new arguments.
Mr. H. THORNTON made Come general obferva-
tions upon the great importance and extent of the
fubjeft under difcuhlinn. He feemed to think that
in one point of view the motion of his Honourable
Friend oppolitt to him (Mr. B.) might have an
advantageous effea. At the fame time, he was
fuily aware of the great inconveniences which,under
the prefent circumfiances, would attend taking off
the reariaion; it might in a great degree operate
as a notice, and raife an univerfal expeaation of
the immediate renewal of monied payments.—
The (hock which this might give to paper credit
May early be conceived. He telt that the prefent
was no time for the adoption of fuch a meafure,
wither would there he a fufficient interval for the
wecetfary preparation allowed to the Bank. Not-
vkithflanding he felt in this manner, he at the fame
time was impreffed with a degree of parliamentary
jealotify on the occafintf, and he mull fay. that all
his doubts on the Cubic& were not yet fari-fied ;
however, he agreed with his Right Hon. Friend
(the Chancellor of the Exchequer) in his great
point,namely, that the Bank could not with perfeft
Safety be opened, except the exchange was favour-
able to thfs country : but he was of opinion, that
the firft favourable feafon thould be taken advan.
tage of for opening the Bank ; and he was not
prepared to fay that it was the du, y of the Houle
to wait for ever for it—the contrary, in a great
degree, might be his opinion. The meafure in
queflion was now continued for three or four years,
and its continuance far another year was propufed.
In this view of the cafe it may be important
confider, whether a favourable opportunity, in
that interval, might not prefent itfelf. He then
adverted to the confequences of too great an Ale
of paper, and the conneftion of that circumßance
with an unfavourable Rate of the exchange, with
2sfpea to which it unqueflionably had a drfadvan-
ugenus effeft ; and in this view of the queftion.
an obfervation made by an Hon. Gentleman had
evidently a great deal of common fettle in it. A
moderate iffue of Paper in the country would have
the effeft of improving the Rate of the exchange;
and he alluded to the duty incumbent on the
country, not to diftrcfs, or do any thing to impair
the public credit : and in this view they feemed to
obteive an exalt medium, which he conceived to
he a leading cattle why, notwithflanding Great
Britain made a freer ufe of paper than any other
country in Europe, it was able to maintain its
public credit, vigorous and unimpaired.
The CHANCELLOR of the Excisavta, after
fhortly complimenting the abilities of his Hon.
Friend, and his fuperior intelligence on the fubjea
in queftion, laid, he had one obfervation to offer
upon chat had fallen from him, relative to then
effea of the Retirittion, upon the Exchange. His
Hon. Friend mug be aware, that at the periods in
Nrhich the Reßriftion originally took place, name-
ly, in the years 1797 and 1798, the Rate of the
Exchange stas highly favourable to this Country ;
and, that it was not until after the harvelt 011799
that the Exchange became unfavourable ; and he
confidered it as of material importance. that the
public Should be aware, that the Courfe of Ex-
change was by no means unfavourable during the
whole time of the Reflriftion continuing.
The (42eRion being called for, was then put.
and the original Motion agreed tp.
The ATTORNEY G AAAAA L then prefented the
Claule, the nature of which he had defcribed in
the early part of the debate, and which was agreed
to by the Houle.
The Chairman then left the Chair, and the
Houle refumed, when the Report was forthwith
received, the Amendments agreed to by the Houle,
and tlie Bill ordered to be read a third time on
Monday. if engroffed.
Some private Winds was then difpefed of, in
the enforce of which the Heydon Port Bill wasread
a fecund time and referred to the confideration of
a Selea Committee.

The lift of thole Members who had been chofcn
to firm the Court of Eaft India Judicature on the
part of the Lower Houle, was then prefented, and
read from the Chair. Among the names we no.
tired thole of the following Members.
W. Wilberforce, Efq. W. Sturges, Efq.
W. Smith, Jan. Efq. J H. Strutt, Efq.
G. Wood. Efq. Hon. R. Rider,
D. Iri•gbam. Efq. Sir W. Pulteney, But.
H. Bankei, Efq. C S. Lefevre, Efq.
If. Browne, Efq. W.M. Pitt, Efq.
Him. T. Scott. Sir E. H. Hattopp. Bart.
1f..,.. W. A 'rowndiend, Stan!, y. Efq. and
C. Adam., Efq. Sir J. Frederic. Bart.
On the Monk), of Mr. SAROR vr, a 'lrv/ Wrlt. WA, ordered
to b. ailed fur the Borough of Yarmouth. In the County of
Southampton, for a Burgrfs to I rye in Parliament, in the
r 001.5 of JA V t s PATRICK Rtra RAT, Hiq. who has accepted the
OfS. S:cw .rd of bit Majcfty's !ti.uiur of Laft Haulm!, in
th,. Comity of Re- Its.
Thr Crmmittors of Supply and Ways and blear, were dc
kr.al tm Maiday, to wldch day, :kc Howie adjourned.