Star.
London, England, 1826-04-05 00:00:00

SIR ROBERT PEEL ON THE CURRENCY.

TO TIER MEMBERS OF SOTH WAISES OF PARLIAMENT.
MY LORDS Asp CiliNTLEaltbl--Will you permit an old
maa to address you on the subj-ct of OUT currency ? I
sat in Parliament thirty years, during which time I fre-
quently heard this important question discussed in the
House by Mr. Pitt, Mr. Fox, and other distinguished
characters. On the passing of the Bank Restriction
Act, I was intrusted by the Merchants and Citizens of
London to present their Petition against the measure.—
Though my opinions were embodied_ in their case, my
beg endeavours to serve them were not sncces,ful.—
Having bees long and exteasively engaged in commer-
cial dealings, I often witnessed a national embarrass-
ment arising from a defective and impure carrency,
which resembled the present stagnation in trade; and
I lament to observe, that suffering and experience have
failed, in this instance, of producing their usual good
effects. In the enlarged scale of business carried on by
this country, embracing a great variety of pursuits, a
reliance on a metallic circulation alone ever did. and
ever will fail us. Gold, though in itself massy, often
disappears in consequence of war, or speculation:.—nay,
the breath of rumour itself is sufficient to disperse it.
Our domestic concerns are interrupted and confidence
lost, for want of an ample and a?proved medium of
traffic.

J am no friend to an unrestrained issue of paper
money, and saw with concern, in the absence of a due
quantity of specie, bills admitted into circulation issued
by persons of respectability, possessing property, but
evidently unable to meet a sudden and large demand
upon them. More than two years I mentioned to a
friend high in his Majesty's Councils my fears of the
mischief likely to ensue if the practice were not discon-
tinued; accompanied with a suggestion to confine fu-
Lure issues of paper money, or tokens, to the Batik of
Engl tnd and other competent bodies of men, who
would give security in land, the public funds, canals,
builchngr, or other tangible property; amounting, at
least, to one-half of the value of their bills or tokens in
circulation. My proposition was not favoured with any
notice, yet, had it been adopted, I am of opinion that
Most of the panic and distress now sts severely felt in
the nation would have been avoided. If such an im-
provement in the banking system could be made avail-
able, gold would become less requisie, and the country
be suppled with a stationary medium of exchange ori-
ginating with ourselves. .
Whilst directing the energies of the State in war,
I Mr. Pitt evinced equal ability in discovering, improving,
and applying our internal resources. The war drained
the country of its specie, and our eaemies entertained
sanguine hopes that our ruin would sooner be effected
by want of pecuniary means than the want of courage,
discipline, and conduct in our armies. Mr. Pitt was
mate than a match for all contingencies. With tl)e aid ,
of the Bank of England, and other opulent houses, the'
energies of Great Britain were maintained in full acti-
vity, and the importance and utility of paper money
were clearly established. Ingenious machines were in-
troduced into our manufactures; and the encouragement
and protection afforded them greatly increased the de-
mand of our rods at home and abroad. Our supe-
r lot ity at sea gave our merchants easy access to foreign
markets, and the wealth derived from trade and com-
merce (though to some persons it. may appear para-
doxical) more than covered the whole expenses of the
war. When the Minister had recourse to loans, they
were speedily raised by British Capitalists, and the in-
crease of, the Public Debt was due from ourselves to
ourselves, and resolved itself into a family account
without impairing the national property. Mr. Pitt
having succeeded• in securing peace and independence
to the Empire, whilst devoting his sole attentiun to the
affairs of the public, suffered his own to be very much
embarrassed. Many of his friends wished to extricate
him from his difficulties, and requested me to learn
from Mr. Rose in what way we could best relieve him.
His reply was, " Mr. Pitt is the most unaccountable
of human beings, and will prefer living in a garret to
being indebted to the bounty of his friends." Though
disappointed, the opinion I had long entertained of this
able Minister's high character was not diminished.
The present panic and distress in the country have
been declared by high authority to proceed from "over
trading," and " wild speculation." Infant nations and
establishments are liable to miscarry from want of ex-
perience and solidity. TRADING and SPECULATION
being natives of this Island, and parents of our wealth
and independence, are surely exempt from such an im-
putation. The same authority has declared that " gold
and paper money are incompatible with each other, and
cannot exist together." The population and trade of
the Empire having been much increased, a proportionate
increase in the medium of circulation is called for; and
when gold is found insufficient, recourse must be had to
paper ; which, if improved on the principle already sug-
gested, the two substances would be found in the same
pocket without disunion. _

Anxious to see our situation ameliorated, I trust the currency
may be mended without changing or impairing the national com-
mercial character; which measure, if resorted to, would resemble
the policy of diverting from its course a powerful river that had
long given fertility and happiness to a latge district, merely because,
from excessive rains, it had ►osnetimes exceeded its natural limits,
and produced partial injury.
I am, my Lords and Gentlemen,
Your faithful and obedient servant,
Drayton Manor, April 3. ROBERT PEEL.