Star.
London, England, 1817-02-20 00:00:00

But, to come nearer home—a few years ago, when
the Globe Insura9c Company wanted a Charter of
Incirrpnrai:on, they offered to transact the 'public
business at a much lower rate than the Bank receiv-
ed. The connection between the Government and
the Bank he considered Most dangerous—and, if it
went on as it had het etolore exis:ed, all idea of pay.
ing their notes in specie would be tould chintericai.
This could he di mqnstiated very easily. In 1797,
the Bank ailiat,cei to Gesernmeht their whole capi.
tal, which was Rl2,ooo,oo9—and, on tenyorary
securities, the Laud arsi4 Malt 'fax, Exchequer Bills,
&c. they re12,(;00,000 more.. Now, it was very
'clear, that any man who lent double what he really
possessed, could no: be :tole to,meet his fair demands.
The Bank fatted they were deficient about R 8,000,000,
mad they applied to Parliament to relieve them. A
Bill w is, in consequence, passed, which protected
them from paying io specie. Now, it appeared iron]
the present state of things, that the Bank were as
completely incapacitated from resuming their cash
payments, as they formerly were from continuing them.
They had :n 1797 advanced 812,000,000—in 1808,
025.000,000, without interest ; and last Session
seiLl,ooo,ooo more, making a total of 5824,000,000.
It vas true, they had increased their capital to
wis,(a);),(3oa; but, without saying any thing of tht ir
fl•etting advances, it was clear, that, with a capital
of se15,:)00,000, they had entered iato engagements
for 5e:3,000,00J. How, then, could they re time
their payments in cash ? By the original Act of Re-
striction they were bound to pay in specie within a
very few I:tombs after the conclusion of peace. The
v:ar had now Ceased two years, tint cash payments
bad not been resumed. Under these circumstances,
it was most clear that the Government knew the Bank
could not meet their advances without the Restriction
Bill were continued, and, doubtless, it would be
again renewed. The system was a bad one ; it was
a system of paper accommodation, which always
brought ruin on the individual or country that
adopted it. During the war, that system affected
them intetnally, and they paid more for every ne-
cessary of life than they would otliervise have done.
But, if a paper currency, not convertible into cash,
were continued, they would be menaced with evils
from without. Every country around would under-
sell them. They would be under-navigated, under-
manufactured, and all the scurces of their prosperity
would be destroyed. As inquiry appeared eo him
to be most necessary, he should give a cordial vote
for the motion.

Mr. HUSKISSON said, the Honourable Gentle-
st-an who had submitted the motion to the House,
argued all along as if 'the measure of restriction on
cash payments had not been debated in Pat liament ;
and as if it had net been decided, that it should
cease at a fixed period, namely, the .sth of Joly,
1818. It would very much surprise him; should
the country remain in its present state, if that
House entertained any proposition, or it any pro-
position were made to it, for enlarging the period of
the restriction. Under different circumstances, they
might be called on to inquire into the time at which
cash payments ought to be resumed ; but that was
specified on the face of the Act of last Session,
sad, therefore, inquiry was not necessary. The Ho.
Pourable Goa:ileum (Mr. Marryatt) argued that
the Bonk could not resume their cash payments, on
account of their large advances to Government. But
here he was completely answered by the Honourable
Mover, who stated that £11,000,000 of the public
mnuey were deirosa:d in their hands. The Bank had
also other advantay,r, which it had a right to make
use of, as ocher bank: rs would, and with which the
G mein:bent had nothing at all to do. That the
profits of the Bank were large, was an undoubted
fact, and the accumulation ot those profits they had
a right to make use of as they pleased. -He wished
to see the day when c..sh payments should be re.
sumcd ; tut the intermediate period between the pre-
sent time and the resumption of cash payments must
be one of difficulty, arising from various causes, par--
titularly by the absorption of the circulating me-
dium, not only of this country, but of every State in
Europe. The Honourable Gentleman (Mr.Marryatt)
had referred to the Bank of America, to prove how
cheaply the public business might be transacted; but
to render the comparison complete, he ought to have
stated that the American Bank had lent three mil-
lions, without interest, to the Government—that they
had paid a large consideration fir their charter, and
they were accountable for any forgeries committed.
The Honourable Mover stated, that the Bank had,
for the lag twenty years, made large profits, and that
the public had sustained a loss equal to their gains.
Other great chartered bodies, who had capital at their
dispose,. had also amassed wealth during the same
period; and the Bank could no more be charged
with occasioning a lose to theamblic than they could.
None of the statements of the Honourable-Gentle-
man were new; they had all been brought before the
House by the Report of the Committee, in 1807,
winch Report was acted on, and a beneficial arrange-
ment war in consequence made. It• was not at the
present moment, when the profits of the Bank were
impaired by the intervention of peace, that they ought
to come forwar2 and press fur harder terms than they
formerly demanded. Nor could he conceive it pro-
per that they should endeavour, ,year after year, to
make alterations in existing contracts. A Committee,
be was convinced, would not answer the Honourable
Gentleman's object—and, should he come forward
with some specific proposition, he would then go into
the general cioeitinn.
Mr. MANNING complained that the Honourable
Gentleman came down to the House, frome time to
time, and proposed motions relative to the Bank,
without giving due notice to those who were most in-
terested. The Honourable Gentleman proceeded to
notice a few of the leading points of, the Honourable
Mover's speech. He denied that the arraugement
relative to stamps was occasioned by any suggestion
of the Honourable Gentleman. Before he spoke on
the subject, the arrangement was nearly completed
between the Bank and the Government. He con-
tended that 7d. in the hundred, for the care of the
Sinking Fund, and 1040 per million (at one time
they were paid £450), fur transacting the business
connected with the National Debt, were not more
than a fair remuneration, when the various expenses
of Clerks, &c. were considered. In point ot fact,
they received less now, when the Public Debt was
4800,000,000, than they did in 1807, when it was
4605,000,000.