Star.
London, England, 1826-02-18 00:00:00

bad continued with very little variation at about four
millions. In 1814 there had been an increase from four
tO tittllions;'ind in 1825, one born six to more than
eight millions ; so that at the commencement of 1826,
that eircelation had actually mote than doubled itself.
It might be said that this had been promoted by the in.
creased kssugs of the Bank of England ; but it was a
matersalfact to state that it was after the Bank had
drain is in imam to an extent perhaps too great fors
the rircuinstaivem of the tittles, that the greatest in•
crease had taken place in the circulation of the country
banks. In the quarter ending in October, 1825, there
been a.. larger number of country bank notes
_stamped than at tiny other quarter; so that all the good
dbne by the reduction of the issues of the Bank of Eng-
land was more than coasterbalanced by the augmented

hsies of country. banks. Was it tow Much therefore to
say that the spirit of speculation, supported by a parer
aud particularly by that of country banks,,'
had-'bought the country whets it now stood? The'
.fruit failure had been that of a great bank in the West
of England. The mecca bad Certainly 'happened- in'
isnroic but it was that of "a beam connected with forty
COIIIO7 banks. The third bad beet a great banking
01/fishmeal in Yorkshire; and during the panic and the
rue with which it was attended on all houses, and even
oft the Bank- of England, those firms had been the
thbirekposed which " were known to be connected
with Country ti makers. It was now the duty of Peri.
batman to apply a remedy to the gird. He blew
that it mailed be said." Leave the matter alone; wait
for quiet pines, and then apply a remedy e but those
Who wosid say so had seen less of the world than be
bad. The application of a remedy came with mach
taste effect, and cached has clamour when its necessity
was felt, than Irises the pressure had ceased. The
nature of the owe ,pr was twoafold. Its first
branch was a measure or the gradual withdrawing of
one and tyro-pound notes out of circulation. Its second,
one fur opening as much as possible the general system
of tanking. The first measure was not actually before
their Locdships, but as it was kisown by the votes of
the other Houm to be in progressiA might be more
satisfactory If he should state the. groilids on which it
Was fouadoed, and should endeavbur to obviate the ob.
jectiogs made to it in public. Its. chief obirct was tat
which could not be denied -as far as it went ; it was by
withdrawing one and two pesad notes and sulatitatiag
a Metallic currency, to give a check to commercial
speculations. But there.was another consideration which
ought to be overpowering with their Lordships. If we
were to be sibject to crises Orthat nature, and a great
Ctiliperftlit country rake this must be subject to dft
tiPiceriain 'Silent, the first cossideration should bets
*hots she groat body of thepeopleobe poor, from the
'osibliotostith a circalarioa. The Jumble labourer could
Ike tease a Dote; his wages must be paid t neither
could be retails it. lie must *spend it kith daily-sup-
port. Let Noble Lords reflect trotbwmisory predated
ter o owne/ town by the failure of a bank 'eoblidered
solvent I(2nd aboilt seventy with that character -had
failei4, where the industrious had deposited all thew
hide savings, and having one pound notes,. were ob.
ligod •to hawk than about for five shillings 'to per.
&as* the necessaries of life. To such misery be bad
been a personal 'Amen, and it was a case which
could navor occur with a metallic currency. The
neat point was the difficulty of establishing such a
currency. But those who saw any great difficulty in the
task forgot the actual situation of the country. In shit
metropolis arid its vicinity Mere was nothing butt'
In Lancashire, in Liverpool, and

Manchester, with their three bandied thousand inha-
Ifirahts, and in the whole district, containing two mil-
lions of people, there was nothing but a metallic circu-
lation. With impact Au foie millions of the pololation
of England, therefore,. embracing 'two-thirds of the
weilibof the country, nodtiofesisted but a metallic our.
fancy. Where was .she difficulty of extending to the *hob
country what .flontisbed in full:force in London, LeIV
catlike, sod tl err dependencies ? It had been esto.
bltsMlorki:bbth these plices without any obstacle, and
Tit bad there bees any peril in .the attempt it would
have been ten times greater there than anywhere else.
bodied •Muftchester an attempt of a different nature;
*hatetitirtfly.falled. An endeavour bad bean made to
establish a cis culatics 4 one and two pound notes, but
tothe great trait of the inhabitants of that town, it
-hod• bee* defeated,. sad they bad chosen to remain.
where they were. There were, besides the accounts on
theirUndships' table, other facts to chew that the dif-i
llitiltpolemearling a metallic circulation throughout;
. the imenterwast not great. It was pretty well known;
minket• the cirroirniun of one and twapouad Bank notes!
ults, and would be, in the total absence of
During she so,peasiun of cash payments, regulari
ratarna gone laid before Parliament, from 'which, it
appeared that 'the whole circulation f Bank•of Eng.;
led4.:gne'and two pound notes amounted to seven•
me amount of country bark notes IMF lobo
• derived from ether data. It did not exceed silt, or at'
most seven millions, making a total. of thirteen or,
'fourteen trillions, asking years when no .eatmordinary
•isinei had been made. -Now, between Isl 9 ,and
• IGO eke Mint bad coined, in sovereigns• and, half.;
solerreigne, gold to• the amount of twenty-I'mi!
millinits. In one year alooe,lBBl, nine millions and a
-balibaditeen coined. Frow-this-toud seas to deducted
.thillomost legally exported out of the country, for that
ithstoreiliereefileit frevented• the 'spoliation. of. British,
mitt Mabel* eboltsbed. This amount wasl,2B.
(rout 1619 down to the present time. lie was •
aware that a essasiderable 'sum bat bees feobably en.l
ported Os ins uggliog 'transactions, aid the. pockets obi
individuals violas the continent, which had never goisi
through 'his bkiftty COMM— This stun be would
•elltanate at dam inillialmotere, though be blew• that
was far above' dm real ansamie. lopposiag, tberefore,i,
that out of twenty-B,a minima of gold coin leaked
been eoliorted • stance 1819, than gal •would remain
fifteen, taillions, pr rather, as one ieniliion bad been rate
inspartast slam last year,in consequems of the favollfablal.
stalwart)* Ettbarigeol• there could not be atpreseat
the coporgless thin sixteen mahout 41/..gohd.caurter
take ter. ly gf. a piper circulation, at as weft
fourteen millions. In consenhence debt,

thiuet♦ • Sr

. ily Wag> saga.
shire and London? Because there was no paper circu-
lation. Why was these a paper circulation in other
parts of the country ? because there war not a.gold one.
It was a fact that two mingled currencies could. not go
on together. Say that there shall be paper, and you
will find no sovereigns there. Say that there shall be
gold or crown pieces, and you will find no paper. These
were some of the grounds .on which the measure now
before another branch of the Legislature was founded.
.The other reasons which rendered it eirpedient were, that
in some degree it gave a check to speculation; that it
would make its evils-earlier felt, that it would secure
favourable. exchanges, and above all that it would
yield effectual peotection to the great body of the
people. - In doing this, however, Parliament -would
-110 t do enough. He had another measure to pro-
pose, and in doing so he felt that it was a deficient
owe. But wbereiore was it only a half measure
illecause the chattered rights of the Bank rendered it
impOssible to go further. Further Parliament ought
to go and must ga; bet at present it was not in its
power. He had been surprised tb hear [any objection
to this measure beyond the usual one, that it would do
little good, for it possibly could do no harm: The pre-
sent system of laws, as to banking, was the most ab-
ward and inexpedient. It was a system which could not
be maintained, lied which could not have been este-
Wished at once, but must have grown gradually, in
such a manner as to disguise its absurdity. Two modes'
presented themselves. Ileum was a system of whole-1
some restrictions, admitting of only one bank, often, or
twenty, or if the number was not limited, founding
them on such principles, as to render such establish-
mum secure. In the State of Massachuseftes, in Arne-
ties, there were only twelve chartered banks. No others
were allowed, and if an of them were unable to pay
in specie it forfeited its charter immediately. 'He m-
erited that such a system might be wise and beneficial
in any country where it was-singly adopted. There was
another system; one of full and entire liberty, which
would in the end answer the same object; for there
was, no doubt, the right of the Crown to grant char-
ter:being presorted, that whenever respeetable Banks
wereestablished, they would skive out the smeller and
unsafe firms. There was no other circulation in Low-
don but that of the Bank of England, yet every Lon-
don-hanker might issue notes if he pleated, hit none
weak, do so in the presence of a superior e.stablish-
-nteat. So it would be in the country ihen great and
secure banks were established; but by the present sys.
tens there was libetty toall that was rotten and sta:
sound, and restriction as to all- that was gopd, Any
cheesensonger,' any *eche'? Chandler, or *this shop-
keeper whatever, inlikt- ISt up a bauk.; bust opt,
more than six respectable_ persons Are
_assembled, and.l
they may form no establishavenkriand the Crown-I
may giant them no charter? Sigh a systeds
aft continue to esist. Either have sound restiiivoisli;
Of else have full liberty. 'He might be sold that
it was in vain to look for the establidtasents of
spch safe and respectable Joint Stock Compaiiieso--
Whether they would be formed or not he could not,
say.; but a similar measure bad been adopted slot long
since is Ireland, and although much time had not yet
elapsed to make it a matter of experience, he understood
that reap -ctable Joint Stock Companies were already
established in that country to carry on Isiah's. The
masa Welfare would be imperfect till the -country.
were free from engagements with the Batik, or till-the
Bank should free the country. One consideration might
operate. with the Bank to do the latter ; the desire of
establishing branches of its own in various places. ft-
had a right, he believe* to do so, and he was n-o,t wil-
ling that it should mike the experiment. If, on con-
sideration, the Bank did not feel it prudent to make that
experiment before the expiration of its charter in 18SS,
let it at least leave-the public free, and it would derive
much benefit from such a course, for whatever placed
the circulation of the country on a secure foundation
must turn to its advantage. He had now got through
the most material points upon which he Wended to
address their Lordships ' • but there was one doctrine
which 'got abroad, and which was mentioned by a
Noble Lord on a
.preceding evening--it was said that
there was nothing better than a paper circulation con-
vertible into gold. He thought this doctrine was most
'erroneous. It was true to this extent, that a paper cur-.
rency convertible into gold would cum itself, whilst a
paper curreneynot convertible would go on, and people
suspect nothing about it until it involved all in ruin.
The paper currency c uvertible into gold carried with
it its own cure ; but involved the ruin of thousands, and
produced those convulsions in property which were fol-
lowed by such dreadful consequences that he could never
cease to look on a paper circulation of any kind as a great
evil. This was no evil to -which a great country like Eng-
larid was particularly subject, which could not have the
advantage of that steadiness of proper ty which poor coun-
tries had. These fluctuations in the value of property
were a great evil, and affected all great political ques-
tions. He was not inclined to give an °potion upon the
Cora Laws, but whenever that question camas to be dis-
cussed he feared it ,would be met with Dutch passion
and heat. It was one of those questions which should
not be taken up, on the question whether rents would
be.higher.or loser ? because of the- way in which it
should be settled, but what settlement of that question
would lead-to the least violent fluctuations in property.
The truth rested there ; and whatever maybe the merit.
of the question, whoever solved that problem, came so
a wise conclusion. Whenever the qoestion was brought
forward it should be considered coolly,-and without re-
, (enact In this particular interest or that particular in.
r latest, but with reference to the whole community.--
lie sow came to the question of the measures of relief
which were afloat as desirable to be applied in the
present exigency.. He knew-it was expected that the
remedy applied under other circumstances by an issue
of 'Eschewer bills should be now attempted.. If he
had cons tid bii own ease, or, if be usay...be allowed
, the expression, his popularity, be could not-have doom
so better-than breasting downited prupodas such as
issue; but it wile his thoCongb sia4. deep sueviitiott, that
such a coin.' 'was sot. coassisi4 *ith his duty. Re'
should always- think that therm:4*W of 17101- wits at
,most dangerous precedent. It was true there was a

itself;
expecte.
of their
edict of
Some

landed in-
terest were in great distress. At that period he (Lord
Liverpool was beset with applications for specific relief.
and the ground of those Applications was that specific
-relief bad been afforded to the commercial community
in the season bf distress. There was a short practical
answer to those applications. The answer was that the
thing was impossible. The commercial community in
their.distress were able to *ford the Goveriiment their
goods for security, which it 'was impossible could he
afforded upon landed property. Yet notwithstanding
this practical answer, it was impossible to make the
landed interest believe that as the state had come in
en behalf of the commercial community it should not
also have come in to help the landed interest in its distress.
Besides, it was urged; add truly urged, that commercial
men may confederite and assist each other, but that
the landed interest had no such adrantage. Alluding
to the present measure, and to the existing distress, he
would now say, that if without violating any
_principle
it was possible to Word relief and give confidence to
the money market, 'it was the duty of Government so
to do. One plan had beta proposed, which it was
thought might be attended with the best effects. Go-
vernment, having a debt with the Bank to the amount
-Of about six millions, it was thought, that if the Bank
porches:ft a limited quantity of Government securities,
Government should bold the Bank harmless in the
transaction. It was the opinion of some commercial
men of great eminence, that this measure would pro-
duce the best effects. There was no possible objection
to it in principle. The Bank would be allowed the
amount of its purchases, in the debt, and this was no-
thing more than paying the debt, a debt which was
acknowledged. which was no secret:and which had bead
contracted with the cement of Parliament., The whole
debt due by the Government to the Bank did not ex-
ceed six 'millions. This debt had principally arisen
from the payment of the dissentient five per cents. The
wishes of Parliament in 1819, had been completely ful-
filled by the Government. The deficiency bills were,
no debt at all; they were nothing more than an
anticipation of the quarter's revenue. He had
now gone through every point which he thought
it necessary to advert to. but should be happy. in
the course of the debate, to give any information
which their Lordships should deem desirable. There
were two points which he just recollected, and to which
he ought briefly to advert. One was as to a modifies.
tion of what was originally prOposed respecting the
one and two pound Batik notes. The proposal wits;
that: no new notes sboold issue from a certain early
date, sad that from the' Sth April. 1829, one and two
palm* notes should 'Xo iirstulte e • altogether. The
original pmedtion thlii4 the Bark of England
alsealkisepest tipsy thse same fencing aith the other
bilks, both aVregaraled she issue and the circulation
eg g In erienseqatence-of representations from the
eountry banks, it war now deemed advisable that the
Bank of..Englaa4 should hart thepower of issuing
one eta two pound notes !wadi the loth October neat.
As to Ireland kiwi fieotlasd, k was .highly desirable that they should
be put 'OS the same footing with England; but not immediately.
separate NI wiled be introduced for 'lreland; but he thought it
advise* that tlll issue in that country should pot cease for some
dm& Me underetood front those who were well acquainted with
that country, that it would be necessary to give Ireland more than
one or at the furthest, two years. As to fleagand, the general
prit;eipte should be strictly kept in view; but be thought it desirable
that the issue in that country should not cease so soon. Perhaps it
would be a proper arrangement that the banks In Scotland should
cease to issue whets the English banks ceased to circulate. The
state of circulation in England and Scotland, and in Ireland, should
be asibuilated u soon as possible, and tb. same principles should
never be lost sight of. The Noble Earl concluded amidst loud cheers.
The Earl of LIMERICK begged to state, in refer-
ence to what the Noble Earl had observed respecting
the extension of the period previous to the suppression
of the circulation of small notes is Ireland, that in that
country there was no circulation whatever but whet
consisted of small noted under five pounds; and as po
the coin of the realm, there was no such thing as gold
to be had. He bel eyed, in point of fact he knew, that
them were, no large notes issued in that country ; nor
was there sufficient gold to supply any abstraction of
the small notes from circulation. He, therefore, hoped
the Noble Lord would, before any measure was brought
forward to alter the state of the currency in Ireland,
be :pleased to take into consideration whether it would
not be necessary to bare an increase of bullion intro.
duced into that part of the United Kingdom.
Lord LAUDERDALE did not expect that any men-
tion made by him of the Corn Laws on a former occa-
sion, could hive deserved censure from the Noble
Lord who moved the present question—much less did
he anticipate ,that it would have been made the ground
of a charge of intemperance in his arguments. He
(Lord Lauderdale) had supported in those • arguments
the interest of the agriculturist, as well as of the manu-
facturer—he had united both into one common cause
in his observations cif the Corn Laws—he had con-
tended that a moderate steady price of corn would be
advantageous, as well to the farmers as to the manufac-
wren ; while prices were moderate they would be less:
subjeinto sudden fluctuations. nit was the tenor of
his arguments, and.in the same spirit be should argue
again when the subject should come before their
Lordships. He did not, in the course of his speech
separate the interests of the several classes of the,
community, and be was surprised that the Noble'
Lord should have imputed such conduct to him.-
-When the inter* of the agricultural classes should
become the topic of debate he sbould discuss theft
with the same gelidness and temperance which he had
used on all other subjects, and with the same regard to
the welfare of the poor, manufacturers or labourers;
and if he was moderate on that occasion, in his defence
against the Noble Lard, that moderation proceeded
same from a respect for that Noble Lord's 81E64 situ-
ation than frem any deference tor his ladividdal opinion.
The Noble Loxd had proposed the abelidon of one and
Eve pound not% as a. remedy foe the present commer-
cial distress.. Ng (Lord tendevdele) was,notiorepared
to say that amass of that *ancient aught not to be abo-
. litbedt or' thattivaprivileges of the •Bank soCEngland
mak not huvadmitting that (hawses
or Mating ibe ditsciddei were just its themselves,. '
11w nisto the !Itipetteut.questien was, whether 'the Go.
Imminent wad acting wisely in provoking a discussion

..
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refusal of a hasher at Bristol to .. I in
. gold, between that aftaar yrittit::.
....
, May •. • itatootz and it continued the re- of the rgror t., •
~ 411 at :imaged anues'our el a c
. . _ _ %lir
..a _ • .its ev . •
." Attila puma nuMthBt* !it' tIA' . A"
;.: • - ...li —.•- • sent ro , *Wins ItaCatr.c . . • erith_lui
_pica.)
. ,
.• . rte,• t - t was the eau- uomnt
. • • • ,aa rurcaleta. whatsoever: VAM)Alitleaeventi I utiiy
"-' ' '.'" • -Act • —ir- - ''"' at that very period ? , But Wait ta th 0, in tibp • • fecoeiralite - ipsti.n proceeding. he•wo.d ilk nevi say,' fur what
before he proceeded, he wished to say once for all, all Of iibik' there iiiii4 if not actitilly.eneugb, at least , . 4iitthe effect of stab a measure, hat to leave tili piople
' iehherloietwa apparel:4 it cOusaquance of -a paper to much less than enough gold cent la,thof,ommtry wet true to themselves. It was counteracting the doc-
cijiiklA4,lo3lia pas,, a1k4041,44t he had cast an impu- carrry on a completely metallic circulation. Aot it was trine be had alluded 01,- to leave thi evil to cure itself,
tigepuss.emintry baiiluirco skit he knew of country not intended to propose the ithosecliate-establiseat cr and was leaving again to the commonity the expecte-
baubirfellyowteapeetisithirtialnry-iiriiiwn, and that all such a circulation. _Three yearswere to bcalloweri for tion of specific relief from Government in one of their
be. bad artd related to the general system of banking, the purpose, and if the example co Lancashire were taken awn. eatracagance or rashnesi. But see the erect of '
aisdasec,to particulaiestabliihMents in the country. in into consideration, all the appreheaded Vacuities would such a precedent when applied to other interests. Some
1821, 1822, and 1883, the cirselation of country banks vanish. Why was there a gold circulation in Lancs. years age it would be remembered that the landed in-