Star.
London, England, 1826-02-21 00:00:00

PROMISSORY NOTES RILL.

On the motion of the CHANCELLOR of the EXCHEQUER,
the Howe then resolved itself into a Committee ache whole, upon
the Promissory Notes BBL
The CHANCELLOR of the EXCHEQUER ob-
served, that the amendment which he intended to pro-
pose would, come in at the 2d page, 19th line; the
insertion of the words, 41 at any time before the 10th of
October, 1826," in the blank, would effect the object he
had in view. There were one or two verbal amend-
ments which lie should propose before they came to the
part of the Bill to which he had alluded ; and he took
leave to suggest that the Committee should proceed
regularly with the clauses of the Uill, wail they came
to the particular point to which he had referred, and
which he should then proceed to disc ss.
The first clause having been read by the Casco, a shot dis-
cussion arose upon it.

Lard FOLKSTONE thought that the clause, as at
prevent worded, would have the effect of producing
a manifest injustice. Toe present nieasure repealed
the Act of the 37th of the late King, the consequence
of which was that the Act of the 17th of the late King was also
repealed. Now, in bis •iew, when the si#sequent clauses ef the
present lllt, prohibiting circulation, came into operation, ally uns

fortunate poneeolmsksossesin their posseselon testa not tee less
if payment of these notes was not demanded erklsin a certain tune.
Toe CHANCELLOR ache. EXC H EQU ER thought
the Noble Lord atimoderstood the effect of the clause. The
words prohibiting the simulation of certain notes would not prevent
persons possessing those notes from obtaining payment for them.
The ATTORNEY-GENERAL assured the Noble
Lord that the clause referred to alluded only to the
issuing of notes el a particular description, and not to disk tires-
laden. The prohibition was apinseissolog and net circulatins,'lm4
could not produce the effect which the Noble Lord auticipeted.
Lord FOLKSTON E knew that the injustice which lie keit
described was not the object of his Majesty's Ministers; litit'Aelial
statechhat be believed such would be the effect.
The ATTORNEY GENERAL explained, and the doom was
agreed to.
Upon the clam that the Rank ahead cease to Issue Dank annum
fur £1 and ZS after the 15th Feb. lase,
Mr. CALC RA FT ro.e to state that should the amend-
ment which the Chanct llor of the Exchequer intended
to propose be carried, he (Mr. Calcraft) shout.] priori*
an atnendinent to the effect that the country bankers
should have a concur reut power with the Bank of Eno-
land, and should not cease mimeo untilthe loth October. He should
reserve his proposition, however, until the Report was brought up.
The CHANCELLOR of the EXCHEQUER said he
felt thankful to his Right Hon. Friend's kilai ens ea.
yours to persuade the House to permit him to explaio
in the Committee the object and precise intention of his
amendment, with respect to which he could not but be-
lieve there must be some misunderstanding; and he
confessed he thought himself a little hardly treated in
the course which had been pursued by Hon. Members,
relative to that amendment which they had made a
topic of discussion before they had heard it. When,
on a former night, the Hon. Member for Coventry bad
broken out into a violent inculpation of the conduct of
his Majesty's Ministers for having, in the case of the
currency, abandoned as he called it, the principles
which they had themselves laid down, he felt that his
Majesty's Ministers had been hardly dealt with, a:id it
suggested to his mind that the Hon. Member had been
guilty of a similar error in the abandonment of his
own principles relative to free trade (of which he was a
warm advocate), with reference to the Si.k trade. His
present proposition was generally misunderstood, as to
what it was, and what it was not intended to accom-
plish. It was not intended to give the Bank of England
any power to keep their notes in circuta.ion after three
years. During these three years of limitation it was
true that no notes of country bankers were to be al-
lowed to pass into ciiculation except such as were dated
before the sth of February. His present proposition
was to extend the circulation of Bank of England notes
to such as should be dated up to the 10th of next Octo.
ber. He could not see how it was possible that anyone
could doubt, that if this was intended as a blow to anni.
hihte all the small banks, it would be an aggravation
of commercial difficulty. It had been assumed,: that to
annihilate Bank paper instantaneously would be produc-
tive of great inconvenience, and that the safe way,
therefore, would be to remedy the evil' effects of our
system in three years' time by a measure slow, but cer-
tain in its operation. He was aware what inconvenience
might arise if all the country bank notes were extin-
guished. The Bank of England,-therefore, had eat:-
cised a power which was not of itself good,
but which was desirable as a prudent measure.—
He, therefore, could not see that this temporary con.
troul and limited issue, to meet the emerge:rcies of the
particular case, could be considered a departure from
the principle of the Bill. The argument appeared IS
him quite preposterous, and utterly untenable. The
principle of the Resolution, and the found otiose of the
Bill being, that a certain degree of delay was necessary
marry the measure into effect,all those who voted at
the former occasion were necessarily pledged to the
principle. Gentlemen might very consistently differ as
to the time; but those who had admitted 'the principle
of delay, could not consistently oppose the proposition,
unless it was at variance with the principle they had in
view. In judging of the efUct the measuie was likely
to produce, it was necessary to look at the spirit in
which it was brought forward. In the month of De-
cember, when the idea had occurred to the Bank of
issuing small no:es, the Government, in the most de.
cided manner, when they had' expressed their ac-
quiescence in the plan, accompanied their coliseiu I
with the assurance th.t they were only pledged to
the measure as temporary, in order that the Bank I
might avail themselves of the state of the Exchanges
to bring about a complete metallic currency—(Hear).
The same spirit under which they acted then influenced
the Government now; and if the proposition which he
submitted to the House could tend to defeat the ulte-
rior measure, he would much rather submit to all tie
difficulties of having the amendment rejected; indeed,
he should be disgraced for ever, if he dared chew his
face in that House, after having been guilty of so gross
a deception—(Cheers.) The only object of the measure
was to enable the country bankers to meet the existing
pressure; and of course the circulation of the small
notes must be limited by the pressure. The country
bankers would not throw their own notes opt' f the
window, and they, would have no motive for substitut-
ing the B ink of England notes in place of their own,
unless the country was placed in such circumstances as
to render it necessary they should avail themselves of
this aid. If they should require it, the assistance they
must receive will be limited to the extent of the incoo
venience they must suffer ; that, therefore, will be a sul
ficient controul over the issu;s of the Bank; and if the
county/ bankers should not stand in need of the assist.
ante, it would not be their interest to receive Bank notes
Rut it had been said, that this proposition had originated
in the difficulties of Governatent,flom which they wee
unable to extricate themselves. Now, that Governmea
was in difficulties with respect to this question, he did
not mean to deny ; but it was a little too hard that t!'g
Government should be reproached because they ende?
voured to remedy the evil out of which it arose; ,•!
were they to be denounced as ignorant, heedless, at
improvident servants of the public under such a pert
liar train of occurrences, because they had not, by anti•
ciliation, taken measures to prevent such an event? Soren
it was not their duty,as public men and his Majesty's At.
sisters, to come down to that House, and sit moping
a mysterious silence, wishing for others to enter Up
the subject of the currency, when all who knew ar.!
thing of which men were, or that House was made of;
would only censure them for adopting such a line
conduct. No—far otherwise had been their condor!.
from a conviction that it was their duty to endeavour
to attempt to shape the remedy or mode of relid
for the present distress. Believing that most men :!
that House thought that the currency was a subje t
vast importance t 3 the wellbeing of society, and hti
hence sacrificed their warmth of feeling and party spirit
to meet the subject as became .men impaessed o hilt to
importance, he could never think that any.9)jecti4
was taken up to part of the details- oi.a seneaiure
like this, merely to have a fling Government.'