Star.
London, England, 1818-04-10 00:00:00

ferred to by the Bank Directors, had amounted to
been for a return to a metallic currency. The four millions ank a half ; that against which they pro-
after the first experiment which he had men- , tested was intended not to exceed three millions. The
d,
had made another on a more extended scale, I last loan raised for France amounted to twelve mil-
offering tcapay.,all their notes, issued before the lions. The total amount of the loans raised for her
'Bl7. But circumstances were now changed. in this country might be taken at 50,000,0001. while
not wanted to put gold in circulation, but the a loan of 5,00p,W0/. for the service of Prussia was
exchanges were different from what they had understood to berin contemplation, and there were no
and the result of this second experiment was grounds for supposing capital to be so abundant else-
ike that of the former. From a Return before where, that it could be raised in any other country,
louse, it appeared, and he might therefore now and thus the drain upon England was likely to be be-
ion the fact, that no less than 2,600,0001. had yond all proportion greater than in 1795 and 1796
paid in cash by the Bank for their outstanding He repeated it was not from the internal state of the
and it was a notorious fact, of that immense country, for the Bank were ready to pay in cash, but
issued in gold, hardly any part of it remained from external circumstances alone that he wished the
.:ulation. Such, he was satisfied, would have Bank Restriction Act to continue in force some time
the case, had the Bank formally resumed cash longer. At present he should propose to continue
iyments in the last year; and he stated this, to the Bank Restriction Act in force till July 5, 1819.
Sow unadvisedly they would act in taking such He had stated thus much to pave the way for the
at an improper time. The same objection which introduction of another measure which he had to
have been urged in the last year against the re- propose, which had for its object to give the country
.ion of cash payments, might at present be urged a more secure paper circulating medium than it had
some aggravation from the altered situation of ever possessed before. He wished the paper in cir-
InlBl6 there had been a bad harvest, and that culation to be convertible into cash at the pleasure
t 7, had not been more than as average one.— of the holder, and the House might rest assured the
: circumstances were unfavourable, and to these Bank were as anxious to effect this as they could be
mailing might be added for the emigrations which —(a laugh ). He wished the country generally to'
taken place, to account for the state of the Ex- have a better paper currency than it had hitherto
iges. The number of persons, however, who had had. The most convenient currency that a nation
England to reside abroad, was by no means so I had, was that which consisted of a mixture of paper
as had been supposed. From a return which and metal. The paper should be large in its amount,
held in his hand, it appeared that the number of but yet so well secured that the holder of it should
sons who had sailed from Dover to the Continent have the same reliance on its intrinsic value that he
-hich the principal emigrations had taken place), Would have on the precious metals themselves. To
amounted, from the year 1814 up to the 24th of Fe- effect this various plans had been suggested, by giv-
Sruary, to upwards of 90,200. The number that ing securities on land and other securities, but to
. returned was 77,530. About 12,700 might him it appeared that these were objectionable from
erefore remain abroad. He stated this to shew that the unicertainty attending them. He proposed to
• emigrations- which had taken place afforded no found a paper currency oa that which might cer.
grounds for alarm, and to prove the opinion er.- tainly vary something in i:s value, but not to a very
aired, that not fewer than 40,000 persons had so great extent—he meant funded property. Had this
the country was unfounded. Supposing these been tried when our funding system was first esta-
TO persons to average an annual expenditure of blished, we should have, probably, now had as per-
each, which was a large sum to take as the feet a currency as any n arson could possess. If, on
ige, the money thus spent out of the country the first Loses being raised, paper money had been
id not exceed two millions and a half, and this issued, founded on then, there could be no doubt
' not be sericiusly felt, though it might contri- that gold and silver would have continued to cir-
in some degree to make the exchanges unfa- culate with them. At present, from no such regu-
arable. But another circumstance of a different lation having been adopted, our currency was by
tature, and most extraordinary in its character, had no means equal in different parts of the country.-
-urged: he alluded to •the negociations which had In Scotland no inconvenience had ever been felt from
. place within the last taro years for loans in this theamper currency. In England, and still more in
ntry for the service of foreign Powers. In 1815 Ireland, he was sorry to say, such was not the case.
loan was raised for the French Government, He would not enlarge on the many inconveniences
-sating to about 5,000,0001. sterling, and subse- which had been felt, as with these every Gentleman
. loans had made the total amount 27,000,0001. must be familiar. It was his intention to propose,
effect of these had been to depress the exchanges, that after July, 11120, no private Bank in England
the price of gold had advanced from 3/.175.3d. should be permitted to issue notes under 51. without
2s. 6d. Such had been the effect of these loans, having previously deposited some adequate security
tgli he had every reason to believe that the indi- for them. As to Scotland, he meant to propose a
Duals who advanced them, had they conceived different plan, suitable to the exigency of the case, in
-to be injurious to their country, would by no that part of the United Kingdom. The securities
:eans have been concerned in them. They, how- which he should require were, that the country ban-
- had a legal right to dispose of their property as kers should transfer to the Commissioners for the re-
pleased for their own advantage, and the Go- duction of the national debt, double the nominal
'eminent, in such a case, had no right in any way to value of his notes, in stock, or an amount equal to
uerfere. So those who had emigrated had a right them in Exchequer Bills. The double amount of the
leave the country, and probably would not have stock was necessary to be deposited on account of the
abroad had they thought they should in any variation in its value. The notes issued under this
iikpate it; but the practical effect of what had arrangement should be sent t i the Stamp Office to
dons was to take aanually two millions and a be stamped; but in addition to the stamp, they should
oat of the country. In the course of the present receive at the same office an impression which could
loans had been negociated for to the amount of not be easily imitated, and which would be an at-
-2,000,0001. But for these he should hardly have testation of the particular species of security under
• himself justified iti calling on the House to adopt which they were issued. $o t iat the public, upon re-
extraordinary measure with respect to the circa- ceiving the note, would at o ice be enabled to see the
• medium of the couatry._ The House must be security to whi:h they cogtded—(l-le-r, hear)—lr
,

,are g
that by the Treaty of Paris the Allied Army
?ht be withdrawn from France at the close of the
esent year, or might be continued there for two
longer. In the latter case it might be eaten-
that the French Government would want a new
to the amount of 2.,3,000,000/. to meet the ex-
penses which they would have to defray ; and in sach
rase a resumption of cash payments by the Bank
England would be most injurious. He stated this
prove that it was not from any thing in the inter-
nal state of the country that he was desirous of con-
ing for some time longer the Bank Restriction
in farce. Internally there was no danger, but it I
necessary to provide for an unfavourable state of
exchanges, and the question on which the House
to decide was this, whether th" inconveniences''
would flow from -a resumption of cash payments
an improper moment, did not greatly outweigh
we that would result from its temporary prolon-
ion ? It would hardly be thought by any one ad-
ible for the Bank to resume cash payments under
mmstances extremely similar to those in which
Restriction Act was resorted to. He confidently
icipatel the opinicr. of the House would be, that
ought to take such a course. To shew that the
:unistances of the two periods differed he would
' certain documents to them. He then read a
:solution come t) by the Court of Directors at the
September 15, 1795, in which they declared,
should a new ITan of 3,900,0001. be granted to
Emperor, they were of opinion, from the actual
cog of the former loan, that a drain of bullion
fight be expected, which would afford cogent yea-
as for apprehending the most alarming conse-
iences. On the 11th February, 1796, they came to
resolution still stronger, in which they declared
That it is the opinion of this Court, founded on the
acts of the last Imperial Loan, that any further
an granted to the Emperor, or any•other Foreign
ate, will in all probability proye fatal to the Bank
England; and we therefore r, protest against any
:h measure, and should it be adopted, disclaim all
.ponsibility for the calan,ities which may follow
:ovens: He might be asked, if our return to a me-
lic currency was to depend upon the arrangements
foreign Powers? Hewould reply to this and similar
icstions, that we ought not to return to cash pay-
tnts till we could do it securely, and that moment
)old be very ill chosen for doing it, when the cir-
mrnstances of the country were similar to those
'rich marked the period when the Bank Restriction
tct was first resorted to. But, it might be said, the
loans which preceded the Bank Restriction Act were
guaranteed br the Government. He admitted there
was a difference between such loans and loans like
those lately negotiated, or now negotiating. This,
owever, was hot so important as might be supposed,
' was more than made up for by the difference in
amount of the loans. The Imperial Loan, re-

was obvious, tAt these. an f other matters of detail
would require much coniileration from the House,
and he was anxious-to give as much time as possible
for reflectian upon the subje:t—r hear, hear, hear ).-t%
He should state, that as ti the security of one class
or the other, the public were in no bther way respon-
sible for f.:e payment of the notes, than merely as a
stake-holder. Two ob:eczions he had heard against
this plan in private ,:onversation: They were some-
what of a Contradictory nature. The first was, that
it tended to increase the paper circulation. His an-
swer to this was brief, and he hoped it would be sa-
tisfactory. It was irrp,-;:ssible that the wish should+
be stronger in favour of issuing paper, for which
solid security should be given, than that for which
no security wasdiver.—(Near, hear.)—The other
objection stated, tat a circulation o- paper under a.
and under these restrictions, woul 1 not be so pro-
fitable to the Country Bai.kers as t ) reider it desi-
rable for them.' to issue much paper at all. That, of
course, was a matter which rest .d solely with the
individuals themselves. Certain he was, that the
safety of the public demanded such security ; and
he was not in the least appnehensive that, even with
the restrictions, the Couutry Bankers had not still
sufficient inducements for the issue of small notes.
At present, that issue was unlimited ; but the per-
mission for such unlimited issue was only a tempo-
rary measure, and the plan would not deprive the
Country Bankers of an old or invariable right.—
Neither would it be attended with any great mcon-
venience to them. If they were holders of stock,
where was the inconvenience of transferring it ?—lf
they were possessed of capital, where was the diffi-
culty of purchasing Exchequer Bills? One advanta-
geous consequence at least would result from the
plan, that it would induce men of large property to
embark in Banking concerns, and exclude men from
such concerns, who possessed but small properties,
and who were unable to give sufficient security—
(hear, hear). The Legislature, in regulating this
weighty matter, was placed in an option of difficul-
. ties. There might be various opinions as to the uti-
, lity and efficacy of the plan; but there was no man
of business who would not agree in this, that a me-
tallic currency for all sums under .51. woald be highly
• inconvenient. The question then was, whether, on
: the one hand, the public should be guarded from
'an issue of precarious securities, and that on the
other, the Bankers themselves should be guarded
from issuing more notes than they could pay---
j (hear, hear). It was desirable, under all the cir-
cumstances, that the system should he improved.--
: There were still two years to pass before the limita-
tion would operate ; and, taking the calculations of
the bankers, this was a period sufficient to wear out
'the number of small notes now in circulation. As
!to the Bank of England Restriction Act, he thought
it essential to the public interest, that it should be

, - 1
mienTs
had been for
Bank, after I
tioned, had
by offering t
year 1817.
It was not w
foreign each
been, and tb
not like that
the House, i
mention the
been paid in
notes ; and i
sum issued i'
1 in circulatioi
been the case
r payments it
shew how in
a step at an i'
might have
sum ption of 4
3 with some a
things. In lE
4
of 1817, ha,
1 s,
i! These circur
something IT
had taken pl
changes. T
11 left kaiglan
great as had
he held in 1
persons who
i (to which th
amounted, f
.
. bruary, to 1
Lad re :urne
• therefore ref
, the emigrati
just ground:
tertatned, tl,
i , . •
left the con
12,700 pees
.1 2001. each,
average, th
would not c
would not I
I bute in som
t ' vourable.
nature, and
~,
ii occurred: 1
taken place
country for
a loan via
ax.ountiag
q lent loans
The effect:
wliie the p
4, 0 ' it, 4.25. 60
' . though be
i - viduals wt
I t':= to be
weans bar
1 ever, had a
they please
if •'''',..* vemtuent, i
,
• i' interfere.
• to leave th
gone abrot
. way ir4t4t4
been dans
1 half oat of
dear loans
12,000,00 C
) felt himsel
aai extras,
Litmg med
aware that
n:',l,llt be
pt vent ye,
pars lour
,
Lited that
1 ) loin to the
penses vAli
• a :;ase are
of Enn,lan,
.t,
to prove tl
nal state o
tinning foi
Act in for,
was necess
'1 the exchar
bad to dec
that woulc
at an imp
those that
t rtion? I
'liable fen
ei:cumsta
the Restri
antiCipate
they ougl
eh:mu:sr.:
Teta ecru
Resolutia
I . Bank., fie
) i
that ghou]
I 1
. ;
the Empe
effects of
• might be
sons for
quences.
ilt t.. a resoluti
j,) "
That it
effects of
Loan gra
State, wi
of Eagla
int,:h met
, ii rsponsib
thereat::
i` tailic cur
1 of foreigt
question!
meats ti
would be
curnstam
which m,
Act was
. . , loans whi
gum-ante
, .
i was a chf
•
those late
( however,
' and was !
the amou
i' , . ;
A.s. ',.
4. .