Star.
London, England, 1826-02-14 00:00:00

in height, and Jig (Mr. Charles Grant) had no
doubt but that tbe -eagerness in the return to con.
fidence would be is excessive, approaching to the
Same wildness which had existed before. The thin,
would be, therefore, to guard against such an occurrence, and
ham that the measures alone proposed lON hence, for the future,
be to guard the commerce of eke country. The Hoe. Member
who had spoken from underneath-the Gallery, had hinted that the
=ensure did net profess to feel with the present exigencies. The
measure looks at the currency of the country, and is anxious to
provide soots cheek to arrest the evil by way of prevention. An
Hon. Geetienuus bad been of opinion that there had -been no
ever-issue—it was over-trade—(though he thosgbt the one
caused the other)—and tome had gone on to say, that the measure
was an arbitrary interference an the part of Government; but,
nevertheless, be thought the present measure owe of the elemseitary
conditions of a free country, and should defend it on the grouse,
that it formed part of a firm currency. The Honourable Member
concluded, by observing, ibex be sbeald most cordially support the
measure, which the state of the country had called for so im-
peratively.
• Sir JOHN NEWPORT said, oo man had denied,
nor indeed was it possible any man could deny, the
various and manifold evils which flowed from a system
tending to create an over issue of paper currency, at all
times and in all seasons; and, leaving that part of tha
community who were thus tempted to extend their ope.l
rations, open to the sudden demands of the most ignorant
an i the most timid of that class, who were, of all others,
the most easily worked upon by the slightest rumour
which the malicious or designing might propagate for'
the destruction of h*s neighbours. But even leaving out
of the que.tion the temptation afforded for extending
the capital of a bank, the poiver of issuing small notes
had another and no less injurious effect. Men of small
property, or of none, sent forth his notes as a matter of
necessity ; and the man of real wealth and undoubted
solidity became obliged to fellow their example, as a
matter of unavoidable competition. Thus the one evil
created the other, sold thus the consequences of the late
panic had spread so widely and so fatally. So great,
indeed, in his opinion, was the extent of the evil, of
such an issue, and so dreadful its results, that if it was
put to him, whether there should be an extended and
flourishing commerce in the country, accompanied by
such a system—or whether there should be no commerce
at all, if that system was removed? be would, without
the slightest hesitation, declare, that he wished cow
merce to be at an' end for ever. Those fears, however,
eipressed by some Gentlemen, of the destruction of
that country paper issue stopping the progress of cons.
nsercial credit, were utterly fallacious—there was more
than sufficient of a circulating medium in the kingdom
for all the purposes of trade, without having recourse
to such a base and artificial creation. Bankers had not
any great issues to reduce; they had been obliged to
call them in for their own security; the quantity of *
country paper in the market was, therefore, com-
paratively small ; no very great injury could be done to
public credit by restraining its return to circulative;
and the only question was, whether they should
more allow the paper to be spread over the ammo
Once more allow every petty provincial banking estab.
mama to deluge Its diarist with one pound wow and thin have
tl the some mood to go swot spio—oho smog distross—chososoo
pasio—tho woe compish4holsso they could dreamily
that issue, which most, without the isterfasonce of tied
meat, emus* prove the destruction of the essavry.
Mr. Alderman MEYGATE said, in consequence of
the dreadful panic which had-existed, the currency of
the country had been at a lbw ebb, and he did not he-
sitate to say, that for the last filly years the whole sys-
tem of the currency had been bad throughout. With
regard to the measure, his Majesty's Ministers bad
is-
sued a Manifesto, which had gone into the hands of
every person, high and low, and its effects were most,
objectionable. He thought that there could not be a
more abominable system than the circulation of one
pound notes. He recollected the first measure on that
head being brought fotward by the Ministers in 1793,
and must ask why they would now turn round and de-
stroy what bad been the means of carrying on the war
for such a length of time. The Hon. Member reinon-
.strated on the correspondence between the First Lord of
ti.e Treasury and the Chancellor of the Exchequer and be
protested as to the possible good that could be effected
either by Joint Stock Company Banks or country banks,
as long as the paper cutrencypre wails to its present extent.
lie rrobated the stamp restriction on the issue of 1L
and 2.notes as unconstitutional,besides useless,for Minis-
ters could not prove,nor trace the late panic of the money
market to the issue of small notes by country Bankers.
With respect to Country Banks, however plausible the
proposed change might be in theory, he feared its init.
fectiveness in practice would convince their most ardent
supporters of its-speculative hollowness. Members were
led away by mese theory; he would wish that they
would now attend to the practical results of experience
unsupported by favourite systems; be would wish the
Members of his Majesty's Government would take the
sense of—not authors (unfortunately on Political Eco-
nomy they were too numerous), but men of practice, on ,
the expedsency of the measures intended to be put in effect
by them in relation to the currency ; he did .sot say this
in the spirit of hostility to the present Administration—
by no means. He had supported them when it was not
ptapuier to do so, that is, when he did not.get a vote fur
so doing, but on the contrary, lost the countenance of
some of his Iriends. The truth was, Ministers could
net proceed t,i their present c neer with the milistont
of our national debt, the very interest of which it was
almost impossible to pay—tire heavy taxes—pension
&c. &c. without a paper currency, and when
the Right Honourable Gentleman (the Chancellor of
the Ezeheqeer) proposed the modification and ulti-
roate change in the present system in two years, he
should have previously paved the way, by the adoption
of measures which would have, if possible, relieved the
public burdens and respect the rights of private
bankers. He maintained that in the present state of
affairs nothing permanently beneficial could be effected
by the Governaient in the way of a restrictive Bill on
the issue of small notes, or a Bill which forced the re-
sumption of cash payments. Though in fact laughed
as bp the House in 1819, on the passing of the Right
Honourable Gentleman opposite (Mr. Peel's) Bill, he
Alderman Heygate both in the House and out of doors,
Ead protested against its expediency, and had prognos-
ticated its consequences, unfortunately so fatal to the
country. It way Absurd in the extreme :to charge the
issue of smell notes of IL and 2L with the recent calm.
males, whose sources lay higher, where his Majesty's
Ministers could not be ignorant of their existing, there-
fore were culpable in not at least warning the country
of the fatal result of their adoption. There were 004
three periods of distress so the records of the country
at all analogous to that now experienced, namely, those
of 1720. 1793, and 1797 ; in all of which IWO
were no issues of one and two pound notes, coosupwitly
them could not en these occasions be any deer,
broUght against the then bankers for their indis:rimi-
mate issue of small notes. The Honourable Gentleman,