Star.
London, England, 1828-07-04 00:00:00

as it might, the suppress;on of the small notes would
cause a great amount of five and ten pound notes to
be withdrawn from circulation. He knew Bankers
who were new preparing to lessen the amount of their
notes of all sorts, in the natural apprehension that the
absence of small notes would render them more liable to
runs. The panic of 1825 wat most unjustly ascribed to
the small , notes; he •firmly 'believed -that- ito-avould-
equallyhare taken place if no small notes had been in
existence. The Noble Duke_said the small notes were
fictitious capital. This true, and bills of exchange
and prorhissoty notes of all kinds were also. fictitious
capital. Upon the principle of the, Noble Duke, there-
fore, they ought to wage wat upon one as well as upon
:the Othir. How was the immense debt contracted
during the war created but by means of fictitious ca-
pita?' and it was a hopeless and desperate undertaking
to attempt its reicayment in a capital of solid gold.—
They were told that there were twenty-eight millions
of gold now In:Circulation in the country. If this were
sd, it only prorted that they were employing this great
amount of the national capital, in the performance of
operaticins which a very few pound's worth of rags
would perform quite is well. The-Bank Charter would
expire in, four years; ft would have been wise to refrain
frtim any interference with the currency until after this
period, When it might have been found possible to
establish such a system of banking as would have given
the citrit6 the advantage of a currency'at once econo-
mical:and secure. He objected to the Bill als", inas:
attach as it was an unnecessary and cruel addition to
the penal*legisliture of the country. - After • insisting
at'considerable length upon the advantages of a slicer
•inpreference to a gold currency, the Noble Lord 'con-
cluded by protesting against the prinCiple of the Bill.
'.Lord GODF‘RICH had heard with great 'Satisfaction.
the very clever and able manner in which' his Noble
Etiend had defended this measure, and with equal satis-
tlction the assurance he had given of the deteiminition
of his Majesty's Government to adhere to the principle
of the Act of 1826, from' which he 'was persuadedthey
could not deviate without the gieatest injury and the
most fatal calamities. 'He no 'longer entertained: the
slightest apprehensions upon that head. The Noble
Earl had clearly and forcibly argued in favour dt his
pieuliar opinions upon this :sulslect. In thoie'opinions
he conic, not concur. The ioea which pervaded the
whole of. what had fallen from the Noble Earl seas, that
paptie Was pieferable to gold as a medium of circular
tiOn..., If this principle should be adopted, they' would
have no gold in Vie country, and would be compelled
. . .. et
again to recur to the desperate measure et a Bank Re-
sanction. It *had been said that the one-pound nova
were
not the cause of the panic of 1825.. He never con-
tended that they were. He knead that similar convul-
skins had taken place before any small notes were in
existence.. But it was found that gold would not cir-
culate togekher with them. The convenience of the-e
.. • ..
smaltnotes in the agricultural districts was much' in-
sciied oi; nor. did he deny that they 'were convenieta ;
bet they were also Very dangerous, because, being
, •
prinaTTO)x in the hands of very poor people, on the
aKiiipst rum*, of insecurity, a run upon'the banks
Aricl. 4,k . . the . mischieitaus "consequences ensued, of
ick the_ distress of the labouring classes themselves
aria-perhaps the Most deplorable, ' Oh the teimina-
tioia ,of. ilac.,arisr, • all patties agreed as to the 'ne;
ceisityoccetusaing to a sound currency. The increased
presaate of thi_debt. in Consequence of the restoration
alialle,cnreency,wis greatly exaggerated. The change,
of the 'Wise 01. Ate currency could 'not be ctimated at,
teosc,t,hte2s'pei cent. and to set against this, they had
I reduction sigi.o.lBl6, in the total annual charge of
thefundeal and unfunded debt, dead weight and all,
.0/. about foot': millioni:4ld a half. The total annual
illaco,:in, tote was 32,500,0001. under these llea.s. I:
was now:28,000:000/. He could net ilietefore agree
piio...thelktoble. Earl in the gloomy vies,/ he had taken
of.the..iresourtes of :the country. Nathing would si)
stufikaachite' him to despond as to see on the pAtt of
his Majesti'spiivernent, or on the parti,l Pao lianient,
any disposition to retrace their steps on the subject of
the, currency` The 'present measure was a. necessary
Aonsequence of :the .OEO 1826. It was ieierired in
justice to the bankers .this countii-„and the penaltks
4 impoed Were; as it appeared to him, tin more than
were
.necessary to, give it effect. He should give his
Iliarea atipkolt to the MIL .
*.ord ffEVESDAT.E•srindicated the restriction of the
Bapk in 1747ifiorn the peCUliif CirctiMpfances of that
del. The revolution in Pr.ance,..and the events t ) wl,ich
keit rise, „were Without example, and nothing ( f tile
szapaeltind was again likely to occur. The system of as-
r' ataltad given:,i,.g.reailitethediate power to France.
ioutths of the whole.persoThs and property of the
stomas 'nation were confiscated to the purposes of the
eguent. It was, aptly described as a volcano;which
liana never be extinguished until it had burned itself
wilt. In this state of .things every thing was justifiable
tisat cont.:lldd to the resources of England. There was
ticsidgiojwceksety for the Bank Restriction, in order to
liesapiard in this country. All the bullion in Europe,
eacepa'Whee We retained. was finding its way into the
trapdi otthc Revolutionary Government of France. At
the.
.iime of the Bank Restriction, the intention was de,
c;areat lay the Government and Parliament of this coun-
ill of returning to a metallic currency as soon as pos.
w.ble. Thii intention had 'been proclaimed at
qy renewal of the rcttrictions. It was a point of na-
tinssasi faith, and it was. necessary' also to place the
=lions of commerce upon a secure foundation.—
conversed much upon the subject of theßanklte-
strictioas-with the late Mr. Baring, who,although he ap-
powesi of.the measur eas a temporary expedient,_ had re-
to tote far iron account of the difficulties hefaresaw
On the reaumption of cash payments. He(the Noble Lord)
had always been of opinion, that let Oldie difficulties be
Jas great as they migl.r, it was their duty to struggle
'
with them, and' to overcome them. Those difficulties
• were now nearly conquered, and he should strenuously
atipp.ort the measure as necessary td 'make the victory
. ersionlete..• ile.coald. got tigiee with the Noble Earl in
tfie.espedieno of establishing two concurrent surodat OS
pi false, silver and g,illd. This would only create
trouble and confusion. The Nbble Lord here entered
into a comprehenskik review of the principles "of Bank-
is••
las, And contenAl that a bank, if cenductedupon sound
,principles, cogrinever become bankrupt. He doubted
whether there was an adequate quantity avid no* in
the country.h When the gold coin was called in in the
time of Lnr.d.North, there wait in the hands of indiii-
duals,.over2aud,aboviavhat was ,in the Bank Of Eng-
.laOd, bet.vreett Isp. and 50 millions. It was necessary to
.take some Measures to increase the quantity otgOld,,
atalthe only dila** measure was to suppress some
...part r f the pgpeiciterefacy. It might be samoiodwilft,
adeantagelo impose certain limitations upon bankers
1
..... ._
is to the made in which they should be permitted to'
employ. the Owlish, placed in their hands by their cut.
'towers. 'the Ifeble Lord Concluded by repeating his
ii:i'Recibatiftit of thejlank Itiestiiction Act, and. at. the
tneisures now rdquired , ioaeplace the entreaty upon'
Ilk lotif tip on which it stood.palefously to that event
To Wits 10411611.04...e,.i, thrinfl.- Must siedfaiely:ll4.'