Star.
London, England, 1819-05-25 00:00:00

• \

----
a ents.

this 'it was concluded, and vary justly concluded,
would produce much embarrassment and mercantile
distress; but this formed no. part of the plan of the
Committee. 'They only wished that provision should
be made for the gradual repayment of the sum Which
has been mentioned, and nothing. appeared in their
Report that implied an opinion on their part that the
whole of the £10,000,000 must necessarily be repaid
before the period at which the Bank should be requi-
red to recommence Cash Payments. The early re-
payment of this sum the Committee had thought it
right to recommend, because it was earnestly desired
by the Bank, and if demanded, they thought it but
right that Parliament should proride for its repay-
ment before they called upon them to act on the plan
suggested in the Report. Though it was no:, in his
view of the subject, necessary that the whok of the
ten millions should be repaid before the return to
Cash Payments, he was of opinion on other grounds
it was desirable that a considerable sum should be
repaid. It was impossible to advert to a paper which
had been laid on the table of the House that day,
without feeling an earnest desire to see the relations
now existing between the Government and the Bank
materially changed—(hear, hear).—That House
ought to have the power of limiting the duties of the
Bank to the strictest consideration of those sub jets
which had originally chimed their care. In the
paper presence.' that day, which contained a Report
of the proceedings at the Bank on the 20th instant,
which had been laid before the Chancellor of the
Exchequer, he found the following paragraph:
" Under these impressions the Directors of the Bank think it
right to observe to his Maesey's Ministers. that being engaged
to pay on demand their Notes in Namable Coin, at the ?dint
price of £3 17.. bold. per ounce, they ought to b.: the last per-
sons who should object to any measure calculated to effect that
epd ; but as it is incumbent oo them to consider the effect of
any measure to be adopted, as operating on the general issue of
their Notes, by which at the private Banks are resigned. and
of which the whole currency, exclusive of the notes of private
bankers, is composed. they feel themselves obliged by the new
situation in which they have been placed by the kestriction
Act of 1797, to bear in mind not less their duties to the Esta-
blishment over which they preside, than their duties to the
community at large, whose interests, in a pecuniary and com-
mercial relation, have, in a great degree, been coofidedto their
aiscretion."

past. ...Hitherto we had - a bright
point in view, the Resumption ofra;h
_inents. It
had operated as a check on the issues' of the Bank.
But if once we said that they should never be re,
newed, we should leave the Bank not only to its own
discretioo in the amount of its issues, but to be guided
by the necessity of fulfilling the obligation which it
had contracted with its own proprietors of consider-
ing ;heir -individual -biterest. He should therefor'!'
call on the House to declare that it was determined
to put an end to the Restrictions. This was the rea-.
son why it was incumbent on the committee to pro-.
pow some steps to slier, that it was really intended
Cat.a Payments should be teeurtied. The Committee
LIS several aiternatives. It might have selected one
of four courses: it might have contented itself with
a declaration that Cash Payments could not yet be
renewed, but must at some fatureperiod be resumed.
But if the Committee had only done that, would any
man base believed that it was in earaest ? What
had happened during the hut few days had served to
convince him that Parliament " must screw its cou-
rage td the sticking place." Until the late discussion
in another place, the impression produced on the
public mind was, that the subject would not be
pressed farther than the Reporti of the Committees.
Should this House not take some step of a more de-
cisive nature, the same opinion would again prevail.
On five occasicau, the House had already declared,
that Cash Payments should be resumed. That opi-
nion had- been expressed by a Right Hon. Friend of
his in 1811, though since that period the Restriction
had been five times renewed. Another alternative
was For the Legislature to fix some other period for
the Resumption cf Cash Payments, at which the
Bank should be compelled to return to the ancient
practice. He, however, would put it to the Mouse,
if it would be well that they should take such a
course?—if it would be wise for one Body to adopt'
a certain system, and compel another Body through
whom the plan was to be carried into effect, to act
on it, even though the principle of the measure was
not good, according to their view of the subject, and
one in which they could not concur? The Bank did
not consider that they had it in their power at any
time to regulate the price of Gold by the issues of
their Notes. In a Resolution which had been come
to by the Court of Directors, it was declared, " That
this Court cannot refrain from adverting to an opi-
nion that had got abroad, that at. any time the Bank
has only to restrain its issues to diminish the price of
Gold, and, after giving the subject the most attentive
consideration, they have been unable to discover that
this opinion rests on any solid foundation."—He
blamed not the Bank for entertaining this opinion ;11
and, as he had already stated to them, it appeared
unjust to look to them to act on a principle which
they could not approve. A third alternative might
have been found in positively limiting the amount to
which their Notes should be issued: this, however, he
thought would at all times be unwise. It was im-
possible to say what amount of Notes would be re-
quired at any given period by the circumstances of
the country. It a run, as it was called, on the Bank
would sometimes cause a very different issue of Notes
to be called
.for at one time from that which was
wanted at another—if there were a demand on the
Bank such as was known in 1797, when the Market
price of Gold did not exceed the Mint price, the
Bank might issue its Notes to any amount with per-
fect safety: but if, on the contrary) ftere should be a
drain on it from the unfavourable state of the Ex-
changes and the high price of Gold, then the evil
could be corrected in iso way but by diminishing the
!umber of their Notes in circulation. Since then at
various periods their situation was likely to be so very
different, it was impossible to say what number of
Notes ought to be issued at any given time. •That
question must be decided by circumstances, as no-
thing could be inferred from the mere nominal amount
of their issues at any time. A fourth alternative pre-
sented itself, which had been adopted by the Commit=
tee: that plan would be found embodied in the Resolu-
tion which he should this night have the honour to
move. This was founded on the principle, that the
Bank should be obliged, from regard for their own
• interests, to regulate their issues by the price of gold,
and in fact act on the same principles which governed
their conduct before the passing of the Bank Re-
striction Act in 1797. The Committee bad found
the Bank in this situation, possessing treasure, less in
amount perhaps than would be wanted if they were
to resume Cash Payments, while the market price
for the last three months, was considerably above
the Mint price, being Ea ls. per ounce. It was found
also that the Bank had advanced to the Public con-
siderable sums of money, which they were desirous
should be repaid. Under these circumstances, it
was thought advisable that the period of resuming
Cash Payments should be postponed to a day more
distant than had ever been contemplated before the
late Committee sat. They prorosed, dprefore to
allow the Bank nearly four years, before ;hey
should be required to resume their Cash Payments,
but doing this, they thought it necessary to adopt
measures that should convince the Public, that it
was intended really to return to payments in specie,
when the period now fixed upon should expire. It
was unnecessary for him to go at length into the de-
tails of the plan suggested by the Committee for ef-
fecting the object in view, as every one who heard
him must he acquainted with it. It was known that
it was proposed that the Bank should commence
paying their notes in ballic.n, to be issued at that
which was lately the market price of gold, from the
Ist of February, 1820—that there should be one in-
termediate stage.between that and a return to the
Mint price, and that they should be provided to pay
in gold bars, to be issued at 1.:3 17s. 10d. per ounce,
by the Ist of May, 1821. It was true that they re-
quired the Bank to provide gold to pay their notes
• is two years from the present time; but then it was
soder certain modifications which made it probable
that the demand upon them would be much less than
that which-they would have to meet if they were re-
quired to payin coin. As part of this plan, and as
'preliminary to the Resumption of Cash Payments, it I
was proposed that a considerable portion of the ad.
vances made tolhe Public by the Bank should be re-
paid. • No iston,iderable alarm existed' on this sub-
ject, which, in :his opibion, had been much misun-
derstood. h-was supposed . that the Committee re-1
.commended the imp; ediate repayment of El 0,000,000 ;
to the Bank, andlhat so much must be forthwith.
withdrawn froth thls. cutreacy of the country, and ,

On reading this he preferred no complaint against the
Bank. He did not advert to it to throw any Imputa-
tion on the Directors of that Establishment, but that
he felt that the assertion which it contained was a
melancholy truth ; he wished the House to relieve
them from . the duty which had been thus thrown
upon the Bank. It was impossible for him, recollect-
ing the circumstances under which it was established
shortly after the Revolution of 1688, not to feel a
great interest in the prosperity of the Bank of Eng-
land. From his knowledge of the Bank Directors,
be felt great individual interest in the success of their
Establishment, but they could not be surprised if
doing every justice to their motives, their conduct,
like that of every other public body, became the sub-
ject of inquiry. In reading that paper to which he
had adverted, it was because he felt that it stated the
truth, that a strong impression on his mind was
made as to the necessity of relieving them from the
duty of attending to the concerns of the country at
large. It was the duty -of Parliament, and not of
the Bank, to take care of the pecuniary and com-
mercial concerns of the nation generally. Let it not
be thought that he blamed the Bank when he- said
this, but he certainly thought that it was the duty
of the Legislature to endeavour, by a great exertion,
to resume that duty which had thus been delegated
to the Bank. On this ground he most earnestly re-
commended an early .repayment of the advances
made by the Bank, though he did not consider the
repayment of the whole ten millions necessary before
the resumption of cash payments, unless it should be
insisted on by the Bank. He now wished the House
to look at the practical consequences that would flow
from the adoption of the plan recommended by the
Committee, in order to ascertain if the alarm which
had gone abroad were well or ill founded. Suppose
the repayment of the £10,000,000 were to be effected
in the course of two years, in payments of from four
to £.500,000 per month. The Bank would commence+
paying their Notes in bullion in February, 1820, in
gold bars, to be taken at the rate of £4. Is. per oz.
and from the Ist of October following, at f. 3. 195.6 d.
per oz. but while doing this, and receiving the sums
he had mentioned in repayment of the advances they
had made, should a contraction of the currency to
that amount necessarily follow ? Could not the
Bank, on receiving a payment of half a million, ex-
pend it in bullion, or lay out half of it in the pur-
chase of gold, and the other half in discounting bills
as usual ? There was no necessity, as it appeared to
him, for them to diminish their issues by one single
shilling. He was not certain that they might not
even be increased under the proposed system. He
would then implore the House not to be led away by
clamour—he implored them seriously to consider the
merits of the case for themselves, and to look into
it, and see if the Resolutions which he was about to
propose, might not be carried into effect, not only
without contracting the currency, but in a manner
perfectly consistent with its increase. They were told
that the object of the Committee was to tie down the
Bank issues to the price of gold, and to compel them
to diminish the currency down to the present price
of gold. But this argument, if it were good for any
thing, would apply for ever to a resumption of cash-
payments. If the evils anticipated would flow from
the Bank undertaking to pay their Notes in gold,
issued at £l. Is. or £3. 19s. 6d. per oz. it followed
that the same reasoning would apply isfrrtio, i to the
resumption of cash payments at any one period on
the old plan—that is at £3. 175.103 d. To the fears
expressed respecting a drain upon the Bank, if a
system were adopted which would oblige them to
regulate their issues by the price of gold, he would
reply by referring the Mouse to the experience they
had of such a plan from 1771. to 1797. Then the
Bank regulated thnir issues according to tl!e price of
gold ; and what was the consequence ? if they looked
at the returns, it would be found that during that pc..
riod the price of gold had never exceeded £3. 175.6 d.
per oz. So as tho Bank had been compelled to pay
their Notes in gold, the market price of gold had
been confined to the Mint price. Then; as it was
proposed should -be done now, the holder of Bank-
notes to the amount of MO had a right to demand
I not what many cor.fused themselves with, so many
!sovereigns or guineas—but five pounds of gold.—
Bt the regulations of the Mint, 14 guineas were
coined out of every pound of bullion, mid five times,
that sum could be demanded, or (i 0 ounces of gold ;

against the tdpottatiat ' pride and satisfactina.
sorthiliattl:srulittlee,drtvery"ll lbebokaws knew it was sent out of mitts of Ldward the
alluded 7
• •
tiauon ie its price as to
the kiagdrei ahenever therearuvocdcuzrretceln.;tachtioaamoto
wiittWitliambethe Thir,d.g
greet
tii•
variation of its countered ; diffsteities a-. ;ea
and
hike:WlT a reforroaeen e•
thprlvecbapadital.npintt,
borov.se4tpecerl,lsuatore...effecThtes
as
vre:e
generally
opposed
the
resell
vaue
attributedda:ige gold
.1 i:.litaordl?time E.! ';! Eno
have corn or more mast when he was in c.: ete
and, he asked, could you procure mere
nes • =or silver, kr it had applied himself to in pro
asevb.7s.-seagiCCftilal."llaitSeCliptsritc)cPesritif4enorn"°!ewaitSsCisaavlairt:,to :I
was in the r • • --
pended upon good or bad hart
silver for it ? Not exactly perhaps corn, for it de- ' and engaged in an atternot to
but ar- diem, aad Isis conduct in t
it cam- praised by the most intelli;
usual and ordi- next period at wlech • an:
mend a greater quantity, or of the u ,
twicalses"ficza4edcaallin theitrbtamstaounndtar, dhedamsko:l7 d; id
was in the reign et
nary commodities of trade? Certair.ly it dd ,
persons talked the House. The currency ci
than it was fifty years ago ; and many
The value of gold was, at the present period, less circumstances to which he e
tion had never so affected it. When they talked of ward VI. in some instances not
beside, cr. its price being raised by taxation, but taxa- debased during the reign; of
raising fifty millions by taxation, they never calulated The same consequences that s
upon any difference in the value and the price of from a deteriorated circulating
geld n whereas, by postponing the
period at which the subject of complaint. Tl•
gold would be made the standard of value, they te-
.ces, great floctuation in th
value. It was said the revenue and trade of the was in the second year of Elise
would find no variation in its price at all affect its dines, and great disturbances
•
country had greatly increased, and that a correspond- advice of her Minister, Bartell
ing increase in the currency became necessary , that form the coin of the realm.
private fortunes had also increased, and that, as a wanting those who creed tell
just inference, the circulation of the currency should tendiun on the execution of sr
keep pare with them. But that he denied, and should the new coin would pass into
prove, by an instance, an illustration of his position, that all that could be done w,
that it had an inverse operation. If they compared Irela,td, she was warned,
two different periods, as to revenue and circulation. of rebellion, while the Court:
wnaasmeuluyel792.and Spain, were all leagued again
at that time, and under
mediately previous to the appointment of the Bullion would venture on a step so i
complaint ofi"a ciefiaciPerenti°jcirlcluti)Z..h"andthierem-
Committee, they would find the circulating medium mined to run the ri•Jc. She w
which, according to their theory, should have in- leigh that the dangers of whi,
creased, had actually diminished, and thereby corn- amstituted the reasons which
pletely upset the doctrine of those persons who coo- ta reform the currency oldie c
tended that as increasing revenue demanded an this her interests would sutfein
increasing "circulating medium (Hear, hear.)— vice her conduct had been the
In 1792, our circulating medium had been estimated In the very learned work of
by the late Lord Liverpool, to amount to £30,, 00,000. fel ence had been made to a
He would take off £5,000,000, in order to make it in which her conduct cm
as unfavourable as possible for his own position, and praised. Ile had sought for
suppose it in reality to have amounted to 025,000,000. haps it was fancy, but to him
From official returns it appeared, that there were applicable to the present perir
then in circulation Bank-notes to the amount of of a long reign of 45 years,
£11,000,000, making the total amount of the circle= the gratkude of her people,
lating medium at that period £36,000,000. At brilliant achievements of her
that period the interest of the National Debt was which Spain had been defeat
0,000,000; the number of vessels engaged in coo- ted, it added, that abOve all,
mercial enterprise. was 10,008, their Arial value Protestant Religion--Mondt
being about £19,000,000. Such- was the state of Arta. That above all, mon,
things in 1792. In 1809, the interest of the Public its just value ; that she had
Debt had risen to 1231,04:10,000, h'ving increased the courage to restore the
more than threefold ; the number of ships employed country under all the diffictil
in commerce had increased one-third, being then had to contend—(Hear.)—Ki
15,000, and the amount of our exports had increased went he was engaged in a fox
one half. In this year Gold was Di 11 s. per ounce, undertaken to reform the sih
so it could not be supposed that mach could remain This too, he resolved upon at
in circulatioe. It might be fairly supposed that high, and v-heinit was impbssii
there was little or none, and this assumed, it would of the Eychequzr to bring ff
be found that in 1809 a circulating medium of tion withent being thwarted,
£19,000,000, managed in some way to transact the of opposition. King Wilbur
business of the nation with an increase of debt, an in- to imitate the conduct of hi:
crease of trade, and an increase of taxation, though the currency was reformed. .
in 1792 a circulating medium of £36,000,000 was rency deba.ed by about ore-thil
required. A par which had been mooed for by a arguments that wee.: adduced,
Noble Friend of pe
his in another place, and which he fixed. Before the discussions
(Mr. Peel) had also moved for, threw great light on terminated, he hoped the 3lemi
this subject, and shewed that at one period the same arguments used on that oc;
amount of Bank-notes would do three times the who was then opposed to the
business that would be so accomplished at another.— The former contended that ;
The return to which he alluded sheaved the number abstract sign, and that its
of Notes which had been issued of each denomina- no importance—the latter
tion in 1792 and 1818, with calculations so far as the essentially necessary the shilli
same could be made out, how long each had re- per weight—that sixty-two
mained in circulation in the two years. He then pound, and most fortunately
entered into the same details which Lord Liverpool The course of these argument
submitted to the other House on Friday, in order to appeared in the history of Mai
chew, that in the progress of wealth and refinement tinus being asked what abstract
means had been found, through the improvements gave this reply—" I have no-
which bad been made, to transact more business with but as the Knight of a Shir
a smaller circulating medium. From the compari- Corporation." a But then,"
son thus instituted, lie thought it followed, that the you no idea of a Lord Mayo,
doctrine which had been advanced, of an increased e that he had seen but one,
circulating medium becoming necessary, from an in- with furs and a gold chain co
crease of reveuue or of commerce, must entirely fall not help associating those as
to the ground. Some persons, who were of opinion Lord Mayar, and more than
that a Metallic Currency was desirable thought. Lord Mayor on horseback, he
after dispensing with it for twenty-two years, that it up the horse with them." el;
would be difficult to return to the ancient standard. not only form an abstract -F
These, therefore, proposed that the present price of without any such accomtranit
Gold should betaken to form the future standard of him not only divested of furs
the country. This was to alter the denomination of out reference to his size, eyes,
our money ; but all that could be got by this would Locke, who could sot so wel
'be that which might be obtained from acting a frau- abstract pound (If silver, earl
dulent part by the public creditor. It might relieve Lowndes was obliged to give
us from some of their claims, but it would not lower a solid pound of silver. He
the price of Gold nor turn the Exchanges in our 1a- meats used for and against th
your; nor would it raise our Circulating Medium in The former had prevailed,
the estimation of the foreigner. If we put in our so was fortunate for the comma
coin a greater quantity of alloy than usual, it would upon the House to say if these
not for one moment deceive those abroad. Because resent situation of the nation
we called that which was worth nineteen shillings a to an effort like that
guinea, he would not give us twenty-one shillings El en they were told of a
for it. Such a measure' would give us ito security contributed to the prosperity
against the exportation of coin, it tie price of Gold warded the interest of our
should continue high. He called upon the House be would ask, if such effec,
well to look at the policy of such a-course of pro- from an inconvertible paper ?
ceeding, which would only procure that which they who were so much attached
could at any time procure by fraud, an easier way this country was great before
of paying the public creditor. He thought it desi- Payments. It had gained in
rable that they should return to Cash Payments. Un- year 1797, and it was not fin_
questionably, in doing so they had to encounter con- were to date our importance among mitt
siderable difficulties; but to these the nation ought to differed fsom o..er countries in having a paper
ci
submit, as to a just punishment for so long renouncing eel:ding medium, we also differed from them in des
them. If they altered the standard now to £4 Is. at a that we had rigidly maintained rehlic faith, and hal
future period they would be called upon to act a simi- even esempted the funds of fore•gners t taiatiro
lar part again. It would be-said that France, or when they Sew to our shores for a refuse. in c, le
Russia, or some other Power, wanted gold, andthat dangers, we had been checrel by the terLxt;on '
thither all the coin issued from the Bank of England our victories had not peen gaired by :rt.:
would be conveyed, and therefore the wise policy of which we could feel reteorsc. T:tis clicered n‘i
those who raised the standard from £3 17s. 100. to through the dark and des"'.: te Fe• i s.i we had ra!,c,l.
£4 Is. ought to be imitated, and the standard again and, now that we were !a• j.e.. on the furrher sone
raised from L. Is. to Da 10s. Against such a psin- he nested that we shoal! rt.: it% the c !era
ciple he must enter his protest. In the history of the nion of out lorg voyage, St;t •)!ruhf act "
country it would be found that at three former periods to that hor,out-able principle i 1 tutee c t r.:ce uJ •
the currency of the country had been reformed, and had carried us trier' p!)-tni!Y
manfully restored to the ancient standard—if/rare every consideratian '
To these three periods he would call the attention of
the House, and it would be seen that they were pe-
riods to which Englishmen might leak back with

,t.i i~~nti:

—on every prr.ci

act tr

we veve bouv..l I
El. 1-14:

• • ix

~-1.;"l1

'T:.

*xot.:l f0u;.,1
. ; ;,
rr.t..:lies v-;rt
SCr t.,. ''; \
1!
CU! V.ol; „ke
;:rd.
tto suirive 7r *l'3l,
iprOVZ Clt
this ii.,t.ince
elligent r,
an:leat
of (,I;kern ,
le would call :h.,
cf the corrai
t. of Helry N.lll. rrd
not le,s than 4.0 pe:
hat were now
acing medium then
lltere was 2n arSan;;.• -;
n the value of All
aces at different times. it
Elizabeth that she, by tit
arlei?h, determined ts rt.
n. There were then ra
Id tell of the difficult:et 4.
A. such a design. Then sad
nto foreign countries, zad
e would be of nn
Was then almost kr. rare
nuts of kon,e, Fra7ce, rid
Tainst her ; ar.d it
er such- cir,..imstancer. slt
so important ? tS.le
e was advised by Lord Bur.
which she had been waned
rich ought to determirrile
he count., v, and failing to 4
Fes-abroad. Acting or. nis 3'
the subject of general I.:ai
: of Lord Liverpool, 'a .
r a monumeat.d inscri.' -
in this occasion had • •
for it and loand it, an 3 per
him it appeared singrhiri
period. It reated t:.e
;ars, recorded her viaerns ,
ale, and having nr:iced ;7
her rein, in the court
efeated and Holland p:Ttt:
all, neat to maintaimnz
,ada ad justaas valaros
money had been restored
had had the firmness -
the ancient standard of
Ectilties with which she!:
—King William, at the r..
a foreign war, in 169.5, hat
e silver coin of the realm.—
n at a time when parties ria
ipbssible for the Chancellor
ag forward such a propose-
-ted, merely for the purpose
Iliam,, however, determined
his great predrces.or. and
ed. lie had found the car-
pre-third ; he heard all the
duced, but his purpose wa%
ussions on this mbieet wee
Members would lock at eh
occasion by Mr. terrixl
the celebrated John Locke
tat a shilling was merely a
its weight of silver was
ter contended that it w
shilling should be of a p..
vo shillings should weigh
ely his arguments prevaile
nents reminded him of wit
f :%lartinus Scribltrus. Ma:
istract idea he had of a n
e no abstract idea of a ..
Shire or the Burgess of
en," said his father, " ha
ayor ?" To this he repli
one, and he was dec9rat
in cound his neck—he ccr,.
6e articles with his idea of
.han that, as he had seen '
k, he could not avoid mills •
" 1." said the father, " -
act Idea of a Lord Ma.
raniments, but I can imag
furs and gold, but also Wi.
eyes, or dy."--(.4iauge.
well form an idea of as
carried his point, and Ma.
give up his abstract idea of
He then noticed the argu-
mt the recoinage of 1695•
d, and that they had d,
vtustry ; and he now cal. '
there was any thing in
anion that could prove a.
tat which was then !raj
f a paper currency hamn
ritv of the country, and :‘
or manufactures and tradar
effects could t e looked for
ier ? He would remind dame
hed to the present system,
fore the suspension of Cast%
ed military glory beibre the
g from the period that -A*
ince among nations. It v.e
tries in having a paper
• •