Star.
London, England, 1819-05-10 00:00:00

•
•

and
les, Mead!.

Loudon..
Loudon•
sort, victual-

Igo. at ten. et Guild-
Lasso sad Hine, Char-
er, to turtelder June
to; Woa wich. Attor-
ich ; yid Messrs. Tit:
*squire, Lando*.

..I{T.i., ........,...try vp•---17:-..7.:._—T._
REPORT OF. THE SWEET COMMITTEE
t , ,*.e, , ON MB
tau OF THE BANK or ltNalittlfD.
----- •
The following is the historical recapitulation ;with
• which ibis Report commences, but fer which we had
not roaai in our Paper of 'Saturday : -
r Your COManigtoe will preface the observations they have to
' make Was the matters immediately referred to them by the
/I, 42. 01,=ehref rompltalation of the laws which imposed and
she "atrial= trim Payments in Cash by the
..t
a 1640satt.
- , It is not amnesty to advert to the eirCUOLIZIKII wader which
that ag_80411,9 wee eeigtoally imposed by Order in CAnuidl in
the I AMR; obibleifismitube 'Oita of lIIVININIsi%v 11 'eh,
(lairs. pada* teethe pasting 01 the Act. by which th• Re-
ark** was tionlintoed and continued. ltsdaration Waefilldl4a
by the first 714 t, which received the Royal Aauu MEOW 14 OU
May, 1797,• to the 940 i June following. Rim do rialkiL
was continued until one month after the consmelleatilent di din
succeeding Session ; and again, by the first Act of that Sessiclasl,
until one month after the conclusion of the War, by a definitive
Treaty of Peace.
In 1802, the provisions of the Acts above referred to were
sontinued is operation until the Ist March of the following year ;
they were further coatinued =Visit works after the commence-
ment of the then next Session of Parliament, before which pe-
riod war having again broken out, they were continued until sit
months after the ratification of a definitive Treaty of Peace.
An Act which passed in the year 1814, continued the metric-
doa until the 25th March of the following year, when by an
Act which reeked in the preamble, " that it was highly de-
Arable, that the Bank of England shoul4 as soon as possible re-
tarn to the payment of its notes in cash,' the further suspeusicin
of cash payments was directed until the sth of July, 1816.
In 1816 it was again continued till the stle July, 1818, the
preamble of the Act reciting, " that it is highly desirable that
the /Unit of England should, as soon as possible return to the
payment of its notes in cash, but it is expedient possible„
the privi-
aims of the Acts imposing the result-don shall be further conti-'
tined, in 1 amid' - -- - the Bank '
make such

may appear .
menu in cash
period, and P'
. -

ton sh
The

,a9P

pt efrefoth
the pretipg

.

ReertielikeßOVlSliithe •61- tbli ;Walt of their tr..
Veld& was very liercittethimi obtheilthit if *war, there .
peace to bore hoes a greased bereave train the "moth of Jul)
1813, tothe month of Octobers in the year 1817. During the
intiteval between July, 18 HI, and Jay,.1817, the market price of )
gold did toot exceed N. 19si per 06 • The Exchanges with *1
Condense, for a very terleiderehle portion of that period, were
ill favour of this empire; end the Bank took advantage of those
sirentristances, * and mad/grout Width to the amount of thej
preelortsmetals in their !moo.
The purchases metie by the Bank appear to have had no un.•
favoueshie elletit on the price of Gold ; and there is reason •to
believe, that it would have fallen to the Mint price had mit ,
tile Bank fixed the rate, at which they were willing to pur '
chase, It £5. Ille. id. per os. Hr. Golds:laid informed the.
Committee, that " at that period there were no other buyers in,
the market, at the price which was given by the Barth ; had„
ette
there boa, they wodld have been supplied on the sane;
if they. had wanted Gold." Being asked, whether, if thq
had not been purchasers at £5. 18s. 6d. he believed *
of Gold would have fallen to the Mint price, he aneireth-.-
" I think it might after some time; but that is matter of opi-
nion only." •
in the year .1827, the Bank had a much larger amount of
Cab and Bunion in their coffers, than they had been in poi.:
session of at any former period since their eteigigter
Treat the commencement of the year 1618, theelke*eqy
progranivell diminished. The diminutidn has taken place lit
tionsequenee of engagements into which the Bank entered (in
coeforinity with the power reserved to them by the original
Restriction Act) in the months of November 1816, and April
and September of the following year. to pay in the first and
second instance Cash for an Notes issued prior to the 2st Ja..
unary, 1812, and tat January, 1816; and in the latter, to pay
Cash for their Notes of ever, denomiuseion, dated,prior to the
tst January, 181? .
The total quantity of Gold Coin issued from the Bank, ist,
consequence of the engagements thus entered into, and the coil
eithance of the fractional payments under live pounds, anew
by accounts before the House, to have amounted, betwerisitle
list January, 1817, and the Ist January, 1819, to the sem of
21,596,236 in guineas and half guineas, trod In sovereigns and
half sevethigns as it4l/2459,725. • .
Your Committee have ascertained, that subsequently to
Vet January there bas been a further demand on the Bank fan
Gold to the extent of about 1100,910. The total sum, there.:
fore, whisk has been issued by the Bank since the cestrmenepf
meat of the year 1817, has been about £6,756.000 ; and.
-doubt can be eatertained that the coin thus drawsufrom
.. Bank was demanded, not for the purposes of intereal a ,
line, but in order to realise a profit either on its sale as
in this Country, or on its exportation. I
Your Committee are confirmed in this conclusion, by tbs
documents befogs the House ; from which it appears, that *
sum issued-from the 9th of December, 1816, (when the Notes
of the Bank became payable under the notice imbed in the pees
ceding month, to July, 1817, amounted only to 438,020. Itlli
though the Bank had become liable en the 2d of May of the
latter year coley Cash for all their Notes of Xi and•re2 value,
dated prior to the Ist of January, 1816.
In July, 1817, the Foreign Exchanges became unfavourelne,
mid have - continued so Since that period ; a profit has been
'realised em the exportation of Gold Coto, and the 'Batik liar'
' beet subject to a constant demand for Ceti in pelmet of
ttsei► Notes.: -
The fallowing mina from the evidence given by Mr. Ales.
brig *midge purposee to Which a considerable portion of
'the Geld thus withdrawn from the avian of the Bat* hes been
_.. - s—'.... Simintiikentr.bttiP Berert'44. the 51131`.

~~ "

,11100111. - Tr- -

SEvEN. h7NCF.

~ • ,
anneal of thiee.figeths' was' in doer f.-oin this Country t. and
this aeration ales onsdnned dating the prestnegiar, though the
anrumf of the ingionudnu of this year has net been reported.
1 Yo ,Committee ere Satisfied that the Bank, in under-
taking to their Notes in Cash, under the circumstances
abovemsat d, acted from the best motives, and from a be-
lief that the measure Would wad to Iv:Witte the complete %
resumption of Paymenti in Specie. Unfortunately k has had ;
a contrary effect; the last of the three notices basing been eiveat..,-,
at a period watts the Exchanges were unfavourable, when the
price of Gold bad risen from Al. 18s. 6d. to £4.* per ounce; ( •
and at a time when the Bank had not (according to the evidence
given by Mr. Harman) that controul over their issues, which:
might have enabled them tii counteract the effect of the unfa-
vourable Exchange, by a reduction of their Paper currency. •
.;
There was, in fact, the half year between July and Decem-
ber, 1817, a considerable increase in the amount of Not*:
issued by till Bank. The average amount oetstandieg is the
four half years; preceding, bad not exceeded Es 6,771,914. Th e.:
this half year it was increased to X0;210,035, staving been in
the previous half year, P 27,339,768. It appears by the Re-
tinae, that on the sth of July, 1817, immediately preceding
the payments of the Dividends, the amount cutstanding was
X25,d00,000 ; and an the 4th of October, being a few days before
the payment of thepividentis of that quarter, the amount was
see 41000•000.
a Time issue of soovvelgoabetween Joie end I)lWeletilit• 2817. -
demoted to £1,240,492 ;so that had the sovereign. iessuiiied •
tirctdatiob, there would, hare been an increase to .the cin
. medihnt issued by the Balk of England in the
• of that half year, compared with the average amount
outstanding in the four half years preceding, to the -..xtent of
43.678,545.
Year Committee cannot avoid expressing an opinion, that
Whoteser might be the policy, and-Fovrever laudable the in-
tentions of the Bank, in engaging to make partial issues of
Coin in payment of their Notes, yet when the- Exchanges be-
came unfavourable, and the price of Gold ruse above the Oat ••
, the only mode by which they could have retained. the
• in circulation would have been a contraction of their is-
seen and unless the Bank at that period „possessed such a con- ~.;
over the amount of those issues, as would have enabled ,
this to effect that object, your Committee must consider it
to have been inexpedient, in the then state of the Exchanges,
tone/intake an extensive, though partial issue of Coin, which
subjected the Bank to considerable loss, and a great dram • •
of treasure.. . .
Under these impressions, and from a firm convictiell4oBB
the continued issue of Coin from the Bank, by diminishing the ' ••••
amount of their Treasure, would have the effect of popernipii .
the period at which the termination of the liestrictiol MOW .
place, without producing on the other hand any advice/Opt 1
whatever to the Country, Mato the Exchanges awl thelisilda
Gold are in their present state, your Committee were badegeg.,
eli
to recommend to the House, in their first Repast, the
diate enactment of a Law to suspend all payments is - •
by the Bank, until your Committee might be enabliel to
sent to the House their view of the whale subject which Ea
been referred to their consideration.

In-eamA,lllolMisOe Amonee of the Debt dtie
by -.England, - 11,
enters

Creditors, which not having Man claimed, has bees
.cndrawn fosse the Bank, and applied to the Public Services
under the provisions ig Acts of the Ifigialature•passed in the
years 1791, 1108, and 1816. It is not therefore an advane•
from the Funds of the Bank, but it is the property of tSe Pub-
lic Creditors, which has been made available for Pubic pro-

poses, until demanded by them.
It will be seen from the Account; that a peat pmportion
of the Advances of the Bank are at present made under the
two heads of " Exchequer Pills issued," and ." Exchequer
Bills, purchased ;" and before the Cbmusittee point out the
distinction between those heads of, the Account. they will
shortly adpert to the Laws which have been, pegged aincp Abe
institution of the Bank for the regulation of their advances to
Government. ,
()n the original establishment of the Bank bytke•Stb ausillth
William and .Mary, a penalty is imposed upon the Directors, if •
they purchase, on account of the Corporation, any Cronnlands,
or if they advance to his Majesty any sum of money, by way of
loan or anticipation on any branch ofjthe public revenue, miter
than on such funds only on which a credit of loan is or Abe
granted by Parliament. Suck credits have ever since %sten
granted from time to time, and advances made upon them. The
amount annually, from the year 1777 to 1792, extracted from
the documents published in the Iteport of the CoUrmittee of
Secrecy of 1797, will be found in the Appendix.
In the year 1795 an Act was passed; protecting the Governor
and-Company of the limit of England from -Any penaity,.on
account of their basin advanced, or advancing In future, nay
sums of money in payment of bills of exchange accepted by the
Lords of the Treasury, and made payable at the Bank, blit nut
charged on any branch of tin, revenue. The motives for pas-
sing this Act are fully detailed in the evidence given by Mr. Bo-
aanquet, then a Director of the Bank, to the Cionnsttee of Se-
crecy in the year 1797. He states; " that it bad been the cus-
tom of the Bank, time out of mind, to advance, for the amount
of such Treasury Mils of Exchange 413 wen directed fer pay-
meat to the Back, undl tie amount varealmsat twenty Sc thirty
,themaind pounds, whew Me TreasUrriumalig ado orders for the
amount of such adv:.nce' to be set off ftem.che respective t.:-
counts to-whlch the lulls properly be!onr;d: Iti. the. Auteric.:n
war, they had been permitted to run to a largerashowit, bet he
believed they exceeded £150,000. • ithisbiatiectirred to
Mgt, when Governor, whether the penalties of the itct of Wit-
Ilamend Mary did not extend to this transaction; and for the
putpart- of removing them, the Act of 1795 was introduced
and *toed." It appeal; to have been originally proposed, tbat
the DA titOuld be emposiered 40 advance, to a limited amount
of aSl3OOO4e £100,000.; but the Act passed without any limi-
tation vits operation beinrof course confined tottdrances upon
Treasury BIM of Eichange, on which species of ,security, how-
ever, no Vices appearto have been mane since the restriction.
, - !If ad' which .passed were shortly 'Rev the .first Besuie-
inns&
don Act, the Bonk Were prohibited fro*: iug etre loan or
advance on account of the publiciservice, *tug the cantina-
,,ance of the Itestriction ; but :.t the co at, of the fol-
lorving Seidel it was enacted, " :hat the maynake an
WA-ante en f crecfit of /hides -.ln blislt,-ifigeterhaland l'uz
iiri pot4ed.thiMi Sessism; and' any other advaneestibteit stay be
'outborined by any Other Acts whin' nay be posts! during the
continuance of the restriction." .• i • .
livilmost all the Acts arthorialng the • ion& of • Exchegtocr
Bibs passed subsetnientin a •speill clauveLfics teen introduced,
esispowerirg the Bank to idianze the Whole vw a portico of the
ainouhl sptcif*liritlie Att. 'Pbejeturdi sedates any sum be-
finitl tliCauto4nt to'whkli tbey it+ figuittd Write several Acts
nor base the bills issue/No them and the tills pluchited by .
them, to-t•fhei• exciedeil that arosont. - . .
' • Thirliltbi3Orlbed dil4elgotten," tire those which passdifrectly
,' to dig i3auli fituithe ,Faclecluer tamlia Vecist vpiraub of

order to afford time to the Directon of the Bank to
ti preparations as to Abair discretion and, experience
ar most expedient for
,IR•Pilt them to =Mime pay-
cash without public leconvesience. and at the earliest
td that a time should Bat flied at which tie said result-
cease." . e
of which passed La tip last Fees*soldfter reciting that
desirable that the Bab ' should as soon
!intern to the payment of its non', hi. cash, and that
peen citia:arnsicts which save .oaciarred since the
4 the lapt Act coldietthig ,
be r thegri fn , have raw
edian that the' Wad; fpthmrtbtit eon&
at another period shnid itiOtbe tenniztatios
directed that the suspension dritakt *main in force

-0
by the Public to the Bank of *England, the Report
enters into the following details
The necessity of the repayment 'of a large portion of that
Debt has been to outwit/Ye insisted on by.dip and, tho
volute and extent of the couulaion hewer* thg.Gpverrment
and"the Bank, involves su many important caiWilions, Bin
your Committee deem it incumbent upon dams& musk MO
sons with ,respect tiK • otaitriplar
the advances made Y the Baal co the *EC
the elect. they havfe. whin caw:WIN &bp ameiThl
144
ttlet=esilite ;WA?
continual tes,
iS the etweenitnes. of .
C Aorr• * iriceteit
In the to the Report will be nd i
of the Amount of 'Adiapees nsadieby theAgeok of
to GoTtlrootet w EzOwtaet /141 P and cir 844111=1$1°
the year 1792 to tie latest period to whici cat' toe .
The first items* this Account, entitled; 44te Adenomas.
of Sums issued for the pernent of Dividend*, row .saieugtioll
to the sum of 41,0011,8KO.inght not, itt tkll-orbig‘tnt ei.yopr
Committee, Mite Epatidered as any -opcoribe, Debt_clyeby
the Governmeato the Baal. It hum MOE/ mi&anf
lodged by Government at the Bank for payment of Diitiende
to Public Creditors, which not having been claimed, has bees - .