Star.
London, England, 1819-05-22 00:00:00

the of seriouti
it before their'
rather with a i

wise. Nor tau—
of its merits, its nature and extent presenting tuft,
ciendy formidable task without coupling the subjentl
with considerations of abstract theory. Thus cteter.-
mining, he would observe, the House now had three
wen questions to attend to; First—Was it expedient
that the couagnshould recur to some fixed standard
of value? dly—ls it practicable and expedient
that a return to the ancient standard of value should
take placet Ahd thirdly—What are the best means
of effecting &tire results ? In considering these parts,
the quesddh of the extent of the currency was the
first considefation. .He had always contended, and
was still ready to admit it, that the Bank Restric-
tions were the means which enabled us to wea-
ther the *orm which so long overhung this coun-
try, and enabled it to get through those difficulties,
which, on his conscience, he believed it otherwise
could not. It did not follow that he thought this
system ought to be acted upon in all wars. But
the last contest was one dissimilar to all others.—
All the Powers of Europe were at one time linked to-
gether, under the eontroul and direction of one
Power, whose object was, first the ruin, and subse-
quently the subjugation of this country. Commen-
surate means and exertions on our parts to resist this
unprecedented array against us. were indispensably
necessary. Those circumstances were however new
gone by, and we were called upon, in peace, to de-
cide, in sound policy and expediency, what course
ought to be adopted by this country. Parliament
had, by its acts since the peace, declared it was the.
duty of tiers country to recur, as soon as it was prac-
ticable, to its former system of currency and circu-
lation. It was unquestionable, in his mind, that we
ought to return to some fixed standard of value; and
his firm belief was, that the great mass of opposition
which presented itself to the proposed plan (though
he thought it was conscientious on the part of the
Bank) was directed, not against the• Resumption of
Cash Payments at anyone interval of a year, or of
six months, or at any time—but against the event of
their ever returning to Cash Paymentsl All the
reasoning of such persons went to such a length.—
But such a system was never found to exist in any
society ; all countries had some standard of value or
other, whether it be copper, iron, silver, or other
metal. All proceeded upon some fixed standard of
flue ; the departure from it was never pro as
it permanent system : neither could it be
Were the dictates of sound policy, regson, or even of
common honesty, attended to. All we had hitherto
done was, with reference to a return to our former
system of currency. He never doubted the modera-
tion or justice of the Bank • but would ask, whether
Parliament could trust the!Bank to an extent which
it had never done with respect to the Sovereign upon
the Throne? How did the case stand? The Bank,
for instance, issued twenty millions of Notes upon
Government security; we paid them about a million
interest ann.rsll But was it reasonable Or fair that.
the Public pay star-gialt a millioe aleariesl
the security of their notes; when, by issuing theit
own notes, the Public, may save the annual million ?
Some standard of value was unquestionably neces-
sary ; such was liable to fluctuations, especially in
periods of war ; but now in time of peace, we should
look steadily at our situation, and endeavour, as soon
as practicable, to return to that state of currency,
which was most advantageous every way; as well as
the most economical. He wished the subject should
be considered practically, rather than theoretically ;
and he would ask, could they consistently leave to
-any body of men to issue their notes without refer-
ence to some regular system or standard of value?
He wished to put this leading principle in front of
the debate, and as the grand point upon whickithe
whole should turn. The next point was, whether,
if it were fit to return to forte fixed standard of va-
lve, it were fit to return to the ancient standard ?
and this, upon every principle of political wisdom,
and even of honesty, he thought they were called
upon to do. ' The standard to be considered was, as
it existed before the Bank Restriction took place,
when gold was at ES. 17s. 10d. This was a question
which went in some shape or other to affect every
individual in the kingdom, and it might be regarded
as the contract entered into with the creditor ; and it
was the duty of Parliament to see that such contract
was fulfilled, and be could shew that no material in-
convenience in following that course, in consequence
of the great exertions which we had been compelled
to make, had the effect, for nearly a period of three
years, to raise the price to ES. 4s. making a differ-
ence of between 20 or SO per cent.; but when peace
arrived, they had all this ground to tread back. The
progress in the lowering the exchange was interrupt-k
ed by the landing of Bonaparte in the year 1814.—
But about the middle of 1816, the Exchanges again
became favourable for this country, and the. Mint
prices of Gold proportionably fell; and if the Bank
had not interfered as it had done, the price of Gold
would have been about £3. 15s. ; and for a whole
year at least the Exchanges were favourable, and
Gold was below the Mint price. The great mischief
was, that the Public would not read the Itepottt
nay, be had himself heard many say, rlowdory diet
jus want to read it. In fact, most went And suds
Op their minds on the subject, and vrestteet-siter
their preconceived opinions. If, hirstevar, be had
ese,ceeded in 'hewing how small the sfiffelentit Was,,
between the established Standard and the Mint Itao
plat ons, a great part of the diffionhy was done
sway with. The desire, of the Committee' was to
effect the.object in the most gradual way—in shortf
its do it •so auto obviate,-if possible, all the difficaltios,
an& objection= Whatever Might be the obi.
and he was far float denying
ohjectiona44ha plas,itself
Dearlo, the prinosples•whieh
idsteblips, lad orhieh war ,
the changssinihe mot gradual
stated in theitepert, that -
avoided was a rapid deereaseo
that &stoutest evil would-be
bate untruth* of these issues.'
this opinion it was a c'
plan to proceed gradually.
dll February, and would
for four years. Even these

issue f.paph. • _ A Pe.„_.Bgist.9,the
of
ittiArnft was
the
n last
dear the
Athe:26lllga:2l:rwith.reralibibilijiitaltitsustratept
'by £4,000,000 ; and there was no increase in the
issue of the Country Banks. Therefore in that year
theft *as a decrease on the whole amount of the cir-
culating medium in the country. And yet, notwith-
standing this decrease, the exchanges became mote
unfavourable, and the price of gold rose. This, how-
ever, was to be explained by the effect produced on
the money market by the pecuniary transactions of
foreign Governments. The Noble Lord (Lord Lau-
derdale), however, contended that all this might be
obviated by a still greater diminution of the issues.
With regard to this, however, it was to be considered
that when the counteracting causes went to a cer-
tain height, any diminution of fill paper circulation
produced an intolerable inconvenience. But on the
whole, he did not think that there would be any dif-
ference of opinion as to the proposition that a reduc-
tion of the circulating medium increased the'value of
what remained in circulation. He would now pro-
,keed to consider the merits of the proposed plan.—
Its first advantage arose from its gradual operation.
gthe Bank was to be called upon to pay in 'specie,
it a, given period, time must be given to prepare' for
SO important a measure. At the same time he must'
confess his own opinion, that if the Bank 'were to re-1
sante cash payments tomorrow, there would be no
considerable demand upon them for gold coin. But
WP man would deny, that if the Bank was required
to pay in cash so soon, they ought to be prepared
with the means of paying in coin, if coin was de-
manded. The first positive advantage of this plan
was, that the Bank could resume cash payments with
a much smaller amount of specie. Under its opera-
tion, all demand for specie, arisingfrom fancy, from
caprice, from internal alarms, would be prevented ;
and the only demand would be for the purpose of
profit. As long therefore as bullion was below the
Mint-price, and as long as exchanges were favour-
able; there was nothing to fear. The next great ad
vantage of the plan was, that it began on a principle
which was quite fair ; and without recognizing. any
principle of depreciation. It went on this principles
" We will arrest the evil where it is—we will begin at
the etrliest possible' period—we will not put off
opening the Bank till some future and indefinite pe-
riod when we shell have plenty ofcoin ; but we shall
begin now, taking the market price of gold as it now
stands, allowing the evil to proceed no farther, but
enabling the Bank td work its own way to a com-
plete return to cash pigments." This was the sys-
tem of the whole plan. He must admit that it
curred to birdie/heeler the period was not put too far
back ? It might be said if we were to begin at the
market price, why not begin at the earliest period ?
This seemed very proper, but there was a good reason
why it should not be done, and why there should be
sorer- 4•14 y- .The debt due by Government t_ •
Bank enust-be tepaid, and this would reouire sale
delar. Astir tete it was to be observed, that the
question stood on rather strange grounds, as between
the Government, the Bank, and the Public. If the
prevailing opinion in'London was consulted, it would
be found that the greatest jealousy prevailed on this.
subject of the repayment by Government of the ad-
vances made to them by the Bank. And he must
admit, that if the present system were to be core
nued there would be some foundation for this °Woo-
tion. But it was his firm opinion, that every mer-
chant in London would prefer a circulation at once
founded on Government security to having the state
of circulation depend wholly on the judgment of the
Bank. He must confess that the advances of the.
Bank to Government had extended to a greater
amount than ever was intended. As to the state of
the exchanges, as affected by the circulation, the
greatest latitudinarians on this subject must admit
that the exchanges would become favourable, even
if the Bank circulation of paper continued as high as
it-now was. He did not believe that the alarm of a
great and sudden reduction in the issues of the Bank
was well founded. At any rate, the whole object of
the plan was to give the Bank an opportunity of
purchasing bullion, and he firmly believed that no
sudden reduction of the Bank issues was now in con-
templation. He had already noticed the advantages
which the existing system gave the country in the
time of war. It had also its advantages in the time
of peace, by the facilities which it afforded to com-

merce—faiilities which merchants would no doubt
be sorry to lose ; and which he must admit never
could exist to the same extent under any other sys-
tem. Its effects upon the public had already been
adverted to. Of these, this was the most remark-
abko—that in the times of commercial distress, the
Bank was not obliged to reduce its issues-.-(Hear.)
This was mentioned as a great advantage; but it was
Merely fallacious. It was an unnatural state of
things producing this effect, that when the country
was really distressed, it appeared not to be distressed,
--that whenit was poor, money was as abundant as
ever. It must not be supposed, however, that the
paper system, even in its most beneficial operation,
reduced unmixed good. It gave encouragement to
mercantile speculations—to fictitious -dulings ;—it
bleated a fictitious capital,—things which, Ma course
d years, were likely to produce more permanent
to the.countrr than could be named,.in compa-
with the temporary inconvenience which would
z'sthe first instance be produced by: the proposed
It hart always been his opinion, and he had
expressed it, that it would be impossible ton,,
art • the ancient system without incurring a mint.:
But by the appointtnelat
Report was now before
part of that inconvenience-hat
All the inconveniencessehichl
be less than those whiohJata,
It would therefore •lie:ids
a pillow to twin their backs upon
lir* they had proceeded sec far.:
,scone arguments• adduced
the most :talkie/ of these he
ileiy; to that winch was drawn
the,ansouit et- the Circulat-
sounayt and that whichiorsd

the Public, and toad- beetrthe -d'al siert Mobs at, trebilllillll2lllt admit, coottilled5;110 WON of .0111
Itn in the fablic Prilieg: ' Map Iwtbd 111018110P•aidalhl ward tot leawarthersce of Gold.dr- was I
sioti would, he must agnift dbilive, be prod.," Sit dili "eat queitiet wat am ts the Inconvenience Pled
die of serious inconvenience. He Wduld need to Wag atfildt tide would produce. lioangeboolOt best then fore
it before their Lordships upon ended principles, and wytdd be to beonreaance ego aperapon was not lads
rather with a reference to it proipectively than mho& fottiml. -For his own part, he serer cotdd understand it b
wise. Nor should he enter into am abstract views hdw a doubt could be entertained on the subject ; map
- _ - ----..i..:.m. As, as the MOWS of the ing .

ke,
cattim:l Might be the objections:6u sort to the ancient system
ring that-there were same potary inconvenience. B
was nue which came most the toinnittee whose: Re
It had prevailed with tittle Eordships, the greater pas
calculated. to brit* 04Sue §e, dually incurred. Al
dual way. It was pre' ''tires' ensue would I
at if-the great evil to be ialtuudrikenproduced:
reaseo the Bank issueo...L.i ' td for theitliordshiprn
,dire a forted andiviseti;.. ar'sobeitt*ok which .ti
sees." In conformity with- Lverel+hrmarer9.''l
*object %of theipviiiveat *rat'theittatio'iltoAl
.• .It vivlllot td -
libtitt 'laity ooto fie iv4onLif b
be' 4biVett' AIWA MHO iletlaftl*wiht file t