Star.
London, England, 1828-06-17 00:00:00

'imr•se camp on Sogiise whusight-happen to.pos,
so< a Scotch' note, the alternative of either forfeiting its
value or taking a journey to Scotland himself.
Mr. BARING said that the objections which•bid heteut
offered to the introduction of the Bill belonged ratter to
;be discussion which might arise in the Committee on
the ptovisious of the Bill, than to any preliminary dis.
cession on the House going into the Committee. The
discussion now is, whether the Bill ought to pass, in
older to render effectual the measures adopted for abo-
lishing the -small note system ? There can be no doubt
that some provision is necessary to prevent England
from being overrun with small notes, which, of nrces•
sky, would find their way into this country. What
was there to prevent a banker in Newcastle from being
connected with a banking-house over the Border ? It
would make no difference whether the notes were
signed in Scotland, or in Newcastle, the note would
circulate equally in the north of England. It will be
leosssary for the House to determine whether they
will prefer this Bill, or the small note system, again in
fell operation in this country ? Thr House cannot refuse
so pass a law to prevent the small notes from coming
into England. If any measure of this nature be put off
is.aut Session, the difficulties will be increased. e A
line must be drawn somewhere, under the present cir-
cumstances, over which small notes shall not be allowed
so pass. If this Bill be not liked, small notes must again
come into circulation in this country; there can be no
caber conclusion. A return to the small note system,
however, was not attempted to be justified by any of
*arguments which he had heard opposed to this mea-
sure. At the time in which Parliament resolved to
pet an end to the small note sytt m in this country,
be (Mr. Baring) exerted himselt as much as possible
to prevent the measure from being carried into
effect but the measure baying been adoFted, no good
can arise from a return to the system. That being
the case, no stability can tike place in the present MP
tern throughout the kingdom, enless some measure
like the present be adopted for preventing small notes
from coming into the country. It was a sactifice
necessary to be made for the security of the country.:
Paper can only he used to a partial extent; there must.
be a metallic money in circulation, which can only be.
effected by a total prohibition of small notes, from
coming into the country. The House must come to the
determination not to have small notes, in order to pre-
vent the unsteadiness and wavering which exist through-
out the country from year to year. If the measure be
adopted, a steady course must be the consequence in
commercial transactions. He hoped Government would
not object to lay the evidence before Parliament which
was given before the Privy Council by the BankDirecters
telativeto. the silver standard. It would be desirable
thatshe Htiuse should possess the evidence during.the,
next Session, for the purpose of
.obtaining information
revions to. the renewal of the Bank Charter. "The,
nion of the Bank on thilesubjec.t. must be of material
consequence to gni ,arritrel, at A proper conctissiort on the
subject by the House. It said that a silver and
grid currency were incompatible with each other; bat.
,Fiance, Holland, and other countries on the Cgnti
nent, afforded practical. refutation of all theories apun
that subject. las
.France, particularly, silver to mill
menu was the legal tender, and yet it had 'not heen
found to drive the gold out of, circulation. Its Fopclu-'
ron, he obsetvo4l,. thus it was iropOspilrlu,t94lo;
measure without repealing the others.ashieb bad,passed
open the subject, and that the House,,hantsleekied upon
sot doing. The Scotch could not be ailoweel,tp have
toe benefit of issuing small notes to be circulated is this
Itoontry.

. -

Sir HENRY PARNELL thought that 114nourable
Members had falleb 11116 an efror in supptising • that
there would Irs..no safe paper currency withont there
being also a Metallic currency. The security of a paper
current* depended, upon the solvency of the bankers hy;
whom it was issued. not upon the ca-existence of It
paper cutrency. The Iloo.Baronet then lirocsecte,4o.,
conlnat,,the opinion expiess• kr theigeeeding,speaker
asps:sing the effect of a silver standard' in (France, and
together denied his statements oa 1411.04 W.,
Mr.BANICES considered that it, sass extremely hard,
at it should be made a crime.for .One: man • to •repose
fidence in -another—it was hard that.if men were dis-
. to take tbenotes of any particular banker they
be precluded from doing so. It was his opinion
'the best ctitirse for the.leegislatute to pursue would
• , to permit Vie present amount of. small notes to con-
tinue in circulation—tbat is) to allow no new notes of
that description to be issued, except when given by the
banker in exchange for some part of his present.. ono
pound circulation. lf, when he went into Committee
with Right Hon. Gentlemen °a* subject of the cur-
rency, he mold have foreseen the consequences to which
their proceedings bad led, he certainly for one should
never have voted for the measure then adopted, and be
felt persuaded, that no Honourable Member would have
given it his
,WEolon•
bir.Secretavy PEEL contended that-they were bound
by their own: solemn acts to adhere to -the .systorn)
adopted in 1426.- It was admitted that the currency
Was now placed upona most satigactory basis, and.tbat
could nothe ascribed to any cither.cause.thantthei; hav-.
ing wisely returned to a metallic standard, and the pro-
hibition of the issue of one pound notes. Those which had
been already issued were now gradually withdi awing
iota circulation; the English Country Bankers,bad taken
Ineastues in conformity with- of,thts. (dowse,
it would.not be fair to do them au iultsty;44de•it.„
4as contended -that the Scotch Bankers, who did iv thing,
tr. the subject, should be allowed 'the prd.fit resulting,
from the continual issue of Small 1404 s. There weie,.in
Int, three distinct propositions before etieflouset either
you should permit an unlimited ritculanon of Small
Notes in' England—or you must compel Scotland
to yield. and come under the existing system.—
'r, if you adopt neither of thee, then you -should
levent the issueof Scotch small notes into England.
lie latter course should be adopted in fairness to the
riiglish Bankers, and ultimate 4 with a view to alike
nisi the currency its Scotland and on the Border.—
(rnie inconvenience might result from this, it it. were
retipitately done; but it should not theret, -re be fielo.
.utxolhia:Acotch Bankers that thy are for ever. w
Ave a monopoly in the unlimited issue of small note,—.
Hear, hear). A gold circulation was necessary as du-
'4l.6 of oaf tuirency. • The basking .syrtem
land might .be improved, by allowing a
..greater
'll%* of partners in Banking. establishmei.t. • to
ithesto cllenter of the Bank, of England
teemed .that 'Wooten of such a plan. if , country
intim were Onward to issue small notes, whether in
ngland or in Scotland, these could be no security
gosh', ~193,cemsfp issue,, and they .would Aatratoll,
ad to ltrquerst panics, and the ,geocr4J 44rofq'
ali. "ma 44 roper tys )bat was on end wlkicb.eboMl
andloosly avoided; • MAI as -.110 the •doltrints :thod
40k et s slenultt.not bw illoWed, 49 track :Willsl44 111,Ctir;
floats I Pril Ins smart 06 ligulDaiolimlll4sb *mud'
must pow and stalCtiones loudly protest nopientja,
he (lutition 01 Adatubigkilvo at a, joigl. sVP4aid fOlti
was our of some )difficulty, sad ask/mired guar