Star.
London, England, 1826-02-10 00:00:00

COUNTRY BANKS.

Mr. lIUME also moved fur Accounts of Country Bankers
issuing units, who had become bankrupts since 1016, the amount
of failures, sums paid, &c. The Govenintent had no objection to
the account as far as it could be inade up.
Mr. P. 6 RENFELL wished the account to be extended to
Scotland.

Mr. HUME had no abjection.
Mr. M A BERLY thought this a very extraordinary measure;
if it were granted, he did not know what would prevent like en-
quiries into all private transactions.
Mr. J. SMITH considered that the account was ♦ery
proper; The public was interested in the matter. In the
I Correspondence with the Bank, Lord Liverpool, and
the Chancellor of the Exchequer had, without limita-
tion, declared that " all" the country banks had sup-
ported a sys em of speculati in. On the part of many
prudent, cauti•+us, and honourable country bankers, be begged to
call on the Chancellor of the Exchequer tomorrow night to adduce
the evidence e•hich bad induced him at this particular time, to
make such a sweeping declaration against all country bankers.
The CHANCELLOIt the EXCHEQUER said, a
statement of facts made accordi g to the trims of the
mot , could by no weans be taken to convey Ass ins-
putaki non the character of any individuals. If, h w
ever, the words could by possibility bear an orrii:ive
meaning, all objection might be removed by a slight
Alteration,. in which he kit assured that the Hoir.Gen.
drama who made the motion would concur. o;,e im.

prorement, he conceived, might consist in avoiding the
times of, places. It was not designed by the
correspondence wt the Bank to convey the slightest
imputation against till character of any individOls
whatsoever ; the etstire complaint , was directed
.asitintt the system 'of private banking, -which un•
qUestionably was productive of the most injurious
effects to the community—effects totally beyond the
contront of the Bankers themselves. In.leed the neces-
sary pursuits of a Banker could not fail, without any
fault of his, to generate evil results ; and even if the
charge had been more particularly expressed, it could
nut, in fairness, be construed to attach blame to the
conduct or character of individuals. Evel capitalist wa. certainly
encouraged, by the system now under consideration, to enlarge his
schemes of speculation in all mercantile concerns, perhaps ulti-
mately to his own 104 S, a coati:clue:ice which the Right Honourable
Gentleman would be ashamed to see upheld in the present state
of the law.

Mr. CALCRAFT was glad of the explanation that
had been given, for, without it, he could sot have un-
derstood the terms made use of as applied simply to
the banking system. But, whatever the Right Hon.
Gentleman's notions were of the system, he denied that
ever it had fostered the spirit of speculation. For, ft on)
the circumstances in wh ch country bankers issued
note;, which everybody knew were convettib:e into
Bank of England paper or gold, it was impossible the
mischief could be attributed to them, though he would
say, that many twitted their business too far : and from
the spit it of competition, to which all trades were :ob-
ject, might have occasionally given issues to persons not
trustworthy. When they did so, the evil corrected
itself. He concurred in the opinion of the Honourable
M. mber for Midhurst as to their respectability ; and
when the remits moved for were laid on the table, it
would be fou-td how small a share they had in producing
the evils undtr which the country labours; other people will he
found to have issued paper as well as the country bankers. Ile
contended, it was the large quantity of Exchequer Bills that had
done all the mischief, and which, he feared, was not yet over not-
withstanding the confidence with which Ministers flattered them-
selves the panic in the market had subsided, and that things were
reverting to their accustomed course.
Sir J. WROT lESLEY spoke in favour of the mo.
Lien. He would say but little, as the regular time for discussion
approached; but he believed, in fact, that the country bankers
were pretty nearly the only people iu the kingdom who bad not
speculated. _ .

Mr. HUDSON GURNEY said that the Scotch sys-
tem, if examined, would be found to facilitate speculation more
than the English; and it would be found that there was not so
much of bankruptcy among the bankers as among those with whom
they deal. It was necessary that there should be paper eaosgh
in the country to keep up prices as they stood in Mil and 11112,
when a depreciation of 35 per Cent. took place.
Mr. ROBERTSON eulogized the system of banking
in Scotland, which, in his opinion, had raised that country to her
present state of prosperity. If the Ministers persisted in tbeir
determination to withdraw the one and two pound notes in circu-
lation, the misfortunes of the country would be aggravated tenfold.
He felt astonished at the apathy with which the country in general,
and the Country Gentlemen in particular, looked on at the present
crisis. He could assure them, however, that the storm had not
passed away, and would soon burst with fury on their own heads.
Mr. TIERNEY begged to ask the Chancellor of the
Exchequer, what was the fate of the proposal on the part of the
Bank of England, relative to the establishment of Braach-banks
in different parts of the country
The CHANCELLOR of the EXCHEQUER re.
plied, that there was no specific proposition to that effect on the
' part of the Bank. The only specific forna.in which it appeared,
was in the communication of the Earl of Liverpool, and it was
there stated in the way of an alternative.
Mr. TIERNEY replied, that it was stated by the
Bank to have been their own proposition ; and it was material that
the error should be corrected, since the proposal originated with
Ministers.

The CHANCELLOR of the EXCHEQUER re-
peated the answercwhich he before made. And on the subject of
establishing Branch-banks, he observed that, as a remedy, how-
ever valuable, he yet cleaned it to be an inadequate one.
Mr. PEARSE, a Bank Director, said that such a
plan had been the subject of conversatioa for three years past, at
the Bank.

Mr. HUME, in pressing his motion, said that it was
not directed against such Bankers as dld not issue notes, nor against
any but those whose names had appeared In the Gamete. He
would only lay facts before the House. It was stated that the
losses were attributable to the failure of banks, and the facts, when
ascertained,would skew hew far the assigned cause was the true one.
/ The CHANCELLOR of the EXCHEQUER wished
to set hirnsqf right with reelect to an cbserration which
hal fallen from the Hon. Member for Wareham, who
appeared to think that he (the Chancellor of the Es-
ch.quer) had thrown the whole blame of the excess've
issue of paper, and the consequent distress, upon the
Country Bankers. If any expression conveying such
an idea had escaped him, he could only say that he had
expressed himself very inaccurately, and that such was
not his meaning. He bad, if he was not mistaken, de-
clsrel in precise terms, that the late distresses were not
attributable to the Country Banks, but arose from those
speculations incident to all commercial countries, where
persons were naturally anxious to take advantage of
every apparently feasible mode of employing their
capital to advantage. He had, with a view of shewing
that such distresses were not to be considered as neces-
sarily permanent in their duration, referred to the year
1819, when a period of great distress was succeeded by
one of equally great prosperity.
The motion was then carried, as was also a similar motion with
regard to the banks of Scotland.

Sir GEORGE CLERK brought up the Navy Estimate; which
were ordered to be primed.