Star.
London, England, 1819-05-11 00:00:00

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to the evidence, in which the dllferent reasons which', tentelteriiel eleaks • inia toots rot tth&tr 406 chYrY-6---ese Hi* C°ll3* nr46-11r4L-.tiliernenly"er.:l:?..-1: S'atCll."-n2cr:"i ."..-.-
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lead to tins conclasiOn are fully stated.
It can hardly be necessary for the Comseittee toithciunse extanees
pottationillimierni the
refit to be derived nem taatinf*mation relpeetirig -
fi wstiZ
golds these knight i.e occasions imi teefiti,ln the evidence ef 11,17etenun. Witse (tin '
remark, that this opinion does not rest upon4atiy ewhich the Bank might think, that with a view to its the greatest part of the period awe referred to,
ground.which cart intimate, the slightest doubt oto 'Nen interest,, so closely connected with that of the either Ooyemor Xepuey vernor bf the Banff.
the credit er solidity of the Bank. That bodypose" ceinemerceand manufactures of the country, the best • The Committ inkflPft . ►per to remark, that
sesses at tilt *mitt nvinient the means ofd teheeeithode of checking steh a dement' might be, to Make whatever effect the event o the advances here re,
Ring, out, of the treasure actually in its-colibrs, everyla more liberal issue of its notes, mid thereby to re- furred to might have had 4litinVse suer of the Bank
demand which could have been made upon it for rive that credit, the want ofwhich had produced at stir given -moment, entfrely '
tq Mime cash` pee-
ptyment id" eesh, in consequence of the notices refer- the embarrassment; but if .an Unusual demand took , meats, supposing other eircumrtances la.l not intervt_
..
red t 8; and the only object of the measure which, et place, at Lame when, from the state of the exchane tested to prevent such resumption, they do not ae- v .
the
erecimmettdation of the committees of both ges and of the price of gold, it evidently arose from pear in- have ha 4 any influence ieeetiminishing the
Houses, has been already adopted ley Parliament, the profit to be made by the exportation of that me- extent of the accommodation received by the public
daring the course of the present Session, was to pre. tal, the Bank always found itself under the necessity for commercial purposes, In the opinion of most of
vent a contintiance of a drain of the existing treasure, of contracting its issues for its own security. lathe ,flit witnesses who have been examined, the lime!,
and thereby to facilitate such operations as the Corn- latter case, therefore, whether the Directors did' r dance of circulation produced by thisliberet. !intimate
mittee might feel it to be their duty to recommeed, did not adopt the principle, that the decrease or di• Bank notes, whatever securities tney ware limed '
in preparation to a final removal of the Restrittion. minution of the paper currency has a decisive' infle- bas produced, indirectly, a, great facilities to COUrr.
Of the ultimate sufficiency of the Bank, no doubt has ence upon the exchanges, they neces-arily acted in merce as if they had been din ctly issued in aotomer- -
been, or can be entertained; but as Parliament thought' the same manner as if they had fully adopted it.— cial discounts. A transfer, to a consiskeable degree,
proper, at the period when it imposed the first restric, There is a difference, however, not to be disregarded, of the discount trade from the Bank M...private ban-
tion on the Bank, to' irect an inquiry into the actual in the impression likely to be produced upon the pub- kers and merchants is stated to have 'taken place;
state of its affairs ; and as a similar injunction is cone lic mind, by any pressure arising from the measures but the facilities afforded to commerce were at least .
tamed in the order by which this Committee is ap- to be taken by. Parliament for ensuring the restore- as great in the latter case as in the•former, as des
pouted, they have thought it their daty to lay before tion of a metallic standard, as distinguished frOm discounts made by the Bank Vere more restricted is
the House the statement in the Appendix; by which those pressures which might be occasionally experi- point eftime, were Welted by the necessity ;imposed
it appears, that, exclusive of the debt from Govern- enced under the former system. , t upon the applicant, of bringing two and sometimes
ment, at, three per cent. of £11,686,800, and of the These would be felt to be the necessary result of more securities, and were granted only at 5 per cent.
advance to Government, at three percent. of three the precautions which, under particular circum; at a time when private merchants and bankers were
millions, making together £14,686,800, the balance stances, might be taken by the Bank for its own se- discounting at a lower rate.
in favour of the Bank, on a comparison of its debts curity ; and if any temporary inconvenience were The effeet, however, of the extent of the advances
and credits, (including in the former the Government produced by thesis, they would manifestly have for to Government upon the situation of the parik,Wbsti
balances in the hands of the Bank,) is Jeeeetel,l9o. their object to avert an evil universally acknowledged preparing for a resumption of .Gash payenfeets,• is Onie
The next subject be which the attention of the Corn- to be still greater, viz, the stoppage Of payment by dently to cramp its OperatOns, by placing., a little
mittee has been directed was the consideration of what the Bank ; whereas any pressure which might now proportion of its issuer-Itseutf: fes.beataltel: ...Atte
time might now safely be fired for the ultimate re. be experienced by toe rapid a progress towards the advances made directly to Government weedy- re-
storation of the currency of the country eo the an- resumption of cash payments might be thought to be paid at the period fixed. by saw., The Excheipmefrbi
cient metall.c standard of value, and what were the an evil voluntarily and unnecessarily incurred, from purchesed by the Batik ceeld not be sold ism large
measures, if any, which it might be expedient tdadopt an impatience to attain en object, -.respecting which quantities without reducips them. to a considerable
in order both to facilitate aid to ensure the complete there was no difference of opinion, and theretere less discount ; and this disceunt sveuld: briag them into,
attainment of this great object. readiness to make any considerable sacrifices for its the Exchequer in payment of the taxes, to sue,h an
Unless the market price of gold shall be, at the speedy atteinment, extent as might materially derange the proeibione
time so fixed, and shall continue to be afterwards It has also been-stated totfie Committee, that there for the public service. An understanding, therefore,
so sear the Mint price, as not to afford a profit upon exists g this present moment a considerable degree withoht express agreement, appears to'havepreveiled
the exportation of that metal, it has been abundantly of embarrassment in cpmmercial transactions, which that, when thus purchased, they ;should not be:sold
proved by past experience, that no law spin prevent is attributed by some of the witnesses to the over- by the Bank. On the other haudethe issues of notes
such exportation, and the. consequent den-and upon trading which has Oaken place, • encouraged, in the upon discount revert to the Bank at periods so short,
the Bank. The main question therefore is, by what opinion of one witness, by the increase of the circu- that any reduction of the paper soessued, which cit-
means, and within what time, the reduction of the lating medium in 1817 ; and is attributed by ethers cumstances may render necessary, is always withia•
price of gold to the Mint price, or, which is nearly to the subsequent diminution of that medium. Very -their reach : with this controu; over their,issues, they
equivalent, such a favoureble state of the exchanges different opinions have also been stated respecting are enabled to feel their way, mei to restrict or ea.!
as will prevent 3 profit on exportation, may best be the probable duration of this embarrassment ; but as large them, •either as the wants of the coeecte.may
attained. all agree respecting its actual existence, e more than permit or demand, or as the stfe rif titenreetnoiges
It is strongly contended by some of the witnesses, ordinary degree of caution is required in the adop- and the price of gold niav aepeer tie reqewene., ee.
and is admitted by most, that a considerable and (as tion of any legislative measures which may, even by It appears, therefore, to Committee et;beeteigidee
was expressed by One of them) forcible reductipn of a temporary operation, in any degree aggravate or expedient, that means shOuldbe telen el ieer
evrehe
the issues of the Bank, accompanied by what some prolong it. These considerations have united to in- Bank a large amount of these..aihreeceree an eptly
consider as a necessary, and others as a Firobable, cline the Committee in the proposal which they will period.—ln cousidering the toOtreeeir peeenellog far
consequence, a diminution in the issues of Country submit in the conclusion of their Report, rather to ex. the future a safe and suffielenteedretgeliett eneeeli,feter
Bank Paper, would produce a favourable turn in the tend the time at which the ultimate resumption of for the country, ther.ommittee veteennegraltg tostee,
exchanges and a reduction in the price of gold; But Cash payments should be required to take place be- make inquiries as to what had 'beepA appentnere.
many of those who are most deeply impressed;with yond the period at which, according to the best opi- viously to the 'Beek. 'IWO. ' „.yelentetecislied
the necessity of the earliest possible recurrence to the .nion they can form, there would be a probability of partly of gold coin end A popiF.ravw#o,
A
ancient standard of the countly, state, in the steonge. its easy accomplishment under ordinary circumstan- been its amount during', ein el Afg there
• r
est terms, the general distress which i•large and ces, than to hazard the ultimate success of that meae little or no gold coin in circuletriepeamtivrh.Velske
sudden diminution of the paperecurrency, • now the sure, by assigning to it the earliest period within to I.;eies amount, and whinsoneeceihrheleestiteeike.
only circulating medium of the country, must cicca: which, according to such opinion, it-might be safely Lion, when e metallic etandardeseeseerede • • ' e.
ion; while others are of opinion that a very:small practicable. The measure bad better not be begun Upon the first oftheebheede they Mit* fiensi,
reduction of the circulating medium will be sufficient at all, unless there be a determined purpose to carry ;tor indeed could they expitt tcrefie4 Pe,Vatuffliv
to produce these effects, and that little distress would it to its completion as an ineffectual' attempt might from which a satisfactory cenCliisioixeoetchbuitmes
be occasioned. There are some also who hold, that create greet mischief and distresseandymeld not leave The only certain data at any perkod asp tbsi4lplkstf
the present Mint regulations respecting silver are the any beneficial result to repay the cotrinaffor. What it the Bank of g.ngland. The amount a . G0ya....,
sole cause of the high price and consequent exporta- may have suffered. ' only upon en:Weems formed in a greet del/me:win,
tion of gold, and of course are of opinion, that theirs From thus attending the period, it seems to the conjecture; and the official ACcounts.oftenyeieeleeme '
need be neither reduction nor distress. . Committee the; considerable advantages would arise, formation respecting the issues of Country Nuke at-
The general result of all the varying sentiments of Those who think that the object is to be accorn- that period, as the Stamps upon these Notes were net
the witnesses upon the subject of the Foreign Ef- , plished only by the means of a considerable reduction then sufficiently distinguished sn those Accounts from
changes, and of the price of. Gold, may perhaps be of the notes of the Bank of England, and that the other Stamps. It is known that in-1702 those items
thus stated : inconveniencies, which they acknowledge to be the had been considerably extended ; that ether the.colleee
Many of those who maintain that it is at all. times necessary result of such reduction, would he amply mercial difficulties of 1193 they were greatly reditce4
in the power of the Bank to exercise a complete con- compensated by the restoration of the ancient metal- and in 1797 had not reached theirfornier amount, -t •
troul over the rise and fall of the Exchanges, and of lic standard, feel considerable anxiety to diminish the Taking, however, the amount of the Gold Coin in
the price of Gold, nevertheless think, that the great extent of these inconveniencies. Those who expect circulation at' £5,000,000 below the estimate made
Loans contracted for, since the Peace, by Foreign little or no inconvenience to arise from the measures by the late Lord Liverpooleyiz. at 1.:e5,000,000, the :
States; the Investments made by persons in this necessary for the attainment of this object, are.neeer. Notes of the Bank of England at I:10,500,000, the
country in Foreign Securities, to the amount, as has theless sensible of the difficulties which are opposed Country Notes, including Scotland, may be conjee-
been conjectured, of 10 or gl2,000.000; the pressure to its early accomplishment by the present state of tured to have Leen I:7,000,000, the amount a Cir-
which took place in the money-market at Paris and the Bank treasure, and by the existing (though as culating Medium, helbre the Banic /testrictiori, will
other Commercial Towns on' the Continent, an in they hope
,temporary) commereial pressure. They be 1:42,500,000, exclusive of Silver and other meat
America; and the great importation of Corn during are, on this latter account, particularly desirous to of circulation.
the last year, have of late concurred in lowering the alley even those apprehensions which they deem en, . Upon the second head, viz. the amount of the cir-
Exchanges. They held indeed, that when our cir- founded en exaggerated, and are satisfied that, pro- culating medium since the restection, there are un-
culation was in its fonuer state of payments in Specie, vided the ultimate object be sec tired, the intermediate doubtedly, at least as to a portion cef the period, •
no payments abroad could bring the Exchanges ma- pressure, whatever may be its degree, would be ma- somewhat better materials for calculatioa. That pare
terially below their par; but with a Paper that has terially lightened. by being spread over a greater which Is certain, viz, the amount of the notcrrof the
no such regulator of its value, they think that the length of time. Bank of England, has borne so much .higher a pro-
necessity of payments abroad, from whatever cause, Those, on the other hand, who feel, less confident portion to the whole of the circulating medium, that
does undoubtedly produce a considerable effect upon in the effect of such a reduction—who think that, the unceriainty which rests upon the remainder' has
the Exchanges, which might, however, as they state, even were itseffect certain, it could only be produced less proportional effect upon the general result. The
be always counteracted by a sufficient diminution of by the creation of a greater degree of -distress than details of these issues appear in the accounts.in the
paper. On the other hand, many of those who at- the public could well bear—who look on the cessa- Appendix. The variations in the apiount of these is-
,tribute the high price of Gold, and the unfavourable tion of those temporary causes, to which they attri- sues, in the week immediately preceding, and'in that
state of the Exchanges, chiefly to the operation of bute the largest share in producing the unfavourable immediately follewing the payment of the dividend_
these latter causes, and who deny or doubt the fact state of exchanges and the high price of gold, as the upon the National Debt, are so considerable (being•
that the issue of the Notes of the Bank of` England natural remedy for the evil—and who expect, that in trom three to five millions in January aids.; and
has been excessive, nevertheless think that an CICIIf-• no long space of time, the favourable balanceof pay- from two to three niilli*s 'iii iixirijandttct ), .
sive increase or diminution of their jesue might offset meats (the usual result of the extent and nature of that in
,coinidering th4' general t tiOletinee the
ler
the Exchanges ; but they doubt whether a smell its- our commerce) will, without incurring any. distress country, it seems betterlo A.* anlarh-ge. of the
crease or diminetiop would produce any marked by taking measures for the forcible preduction of issues for six months, tlial'e to ::for
~51p cZ.legatiou
effece upon them. ' such a change, teed insensibly, but with sufficient upon eshorter period. • Stated" 4 prpciiiie,
nose again who maintain that the proportion be-' certainty, to the attainment of the object in view— it appears that they:did hot rte e, 11, , 0046efore
twig the Mint price of gold and silver, as settled be all persons who entertain these opiiiioes must feel the first six-months of IWO; tjmq nevorkeached
the recent change in our Mint regulations, is the sole still more anxiety for the extension of the period. Ifeeo,ooo,ooo before the first* six hl'Oetls• in )810; in
causeof the nominal high price of gold, think that There, arc, however, sonic measures of preparation, the latter
.six months they eecee4r4:l24oo9,pOtte
• • the real exchange has for the last two years been in which, whatever time may be fixed, appear desire- The variations Or the next three Years eefire.iielt
faveur of this country; that there has been during ble, if' not indispensable. . considerable ; but the rise duringt,he year IN* Wee •
that period no Ma' issue of Bank paper ; that had it It is well known that the link has always been in rapid, and carried their amount; ape's tht average' '' of
not been 'for the Mint regulations, gold 'must have the habit of making large advances to the Govern- the last six months, to allbve, 424001,00W'. The
continued to flow into this country, as it did in 11316; ment for the public service. These advances are lowest point to which they fell ' vitas between 26 and
diet there could, therefore, hive been no demand on partly made under special Acts of parliament, upon L*27,009,000. in the first six motnhi ef 1816. The
the Bank for coin a that metat, for the pureose of securities therein provided. There is another species h hest towhiehehey rose was iferAheliet Alf moeths
esywrratime c end that the Bank could have found too pf accommodation which lies also been afforded by of 1817, inhen, they weeg at their greatest .average
difficulty in resuming payments in cash at the time the Bank ; viz, the purchase of Exchequer-bills to a amount, vie. E29,000,000‘; and fro that peeled they
now fired by Parliament. It appeeri to the Coen- large amount. For the state of the law apnrt this bare gradually clecreaseil hearly te
... 'hooo,o t.,0 pre-
mittee, upon the whole, that so long as the Bank con- subject the Committee beg to refer to a paper which viouslyto the issue•of the lasts diys4e4...s,
tinned liable to pay lit taah, it mght. be concluded has been laid before them, and which is insertedeine, 'Pie amoient, howeviii,' of Batik land paper
feom reasoning, and has'been proved by experaa,ce, their Appendix. The amount of the Extheqner-bills actually insireuletian ie not always tpbe.measuied
that the variations in the market price of gold, aed and other Government securities, either held or per- by the extent of its issues. 'l4tera credit is Rou,sish-
also in the exchanges, would be confined wiehin much chased by the Bank at different perieds, will also be ing, the reserve of Bank a Ensiling notes 'kept by
narrower limits than they have been since the restric- found in the account which is there insereeth The country bankers will be cOnsiderablyleee than. whin
tion upon. cash payments. different applications made by the Treasury to the any local or general difficulties oblige them to mike
• Uhder the ancient system, if an unumal:clemand Bank for accommodation are fully detailed in the more ant* preparations against far Ae 'end -sucbditn-
were de upon the Bank for cash, when the ex annexed Reviews and correspondence.- The prineie demoucis.;. and this reserve must,
.Ic.tht present elituse
changes west above par, and the tenet ef goldbelow pies epon.whieh the Treasury has Acted in middy/ of cur
. circulating medium,,
B consist 'of a great pp-.
.es eitheebit ank 1 •
—F; landg into evtece
the Mint price, as such a demand could only be eio- these applications during the last four years ire ex=' portent. of
I's
-plained in a memorandum delivered to thecornmittee '. tneir own tees ate e rertibleet( reletordhilted,)
oinioned by some sudden patron or& by a failur,e in

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