Star.
London, England, 1817-02-19 00:00:00

TUB FRENCH LOAN.

The Earl of LAUDERDALE repeated the
questions he had put on a former day on this subject,
namely, whether any communications bad passed
between his Majesty's Ministers and the persons who
had recently advanced money by way of loan to the
French Government ? and whether these persons had.
been given to understand, that the example set by
the clause in the late treaty of peace, which secured
payment to British creditors of the French Govern-
hint, was to be considered as affording no encou-
tagement to this negociatinn ? He bad received no
distinct answer to these questions. The /•In'ti:! Lord
had indeed said, that Government had seither s Inc-
ioned nor restrained, the negoci ition ; but it was
not with the right of persons to dispose of their pro-
perty as they might think fit that fit ever w.shed
interfere. What he had in view, by the pri:smt ino•
tion, was to bring the conduct of Government under
the consideration of the House; not to arraign any
man for embarking in this or any other speculation
which was, open to him by the laws of the country :
but it was a question of a different nature whether Go
vernment had given encouragement to this transaction.
Without infringing the general right of every person
to dispose of his.property -in the way he might ihisk
most advantageous, there might arise a necessity for
making a law to regulate that right under certain
circumstances. The accumulation of capital, in car.
tain cases, had bsen made• the subject of legiAation,
as was evinced with respect to the Sinking Fund.
Many persons seemed to consider that fund as having
originated with Mr. Pitt, and regarded its creation as
one of the greatest honours they could attribute to
him ; but to any merit from that measure, which
those who called themselves his followers were so
disposed to hold-up to public admiration, he was less
entitled than from any other which lied been attri-
buted to him. The Noble Lords opposite ought to
know that Sir Robert Walpole established a Sinking
Fund, which, by the measures connected with it, re-
duced the rate of interest in 1715 from 15 to 4 per
cent. In establishing that fund he thought it neces.
sary to introduce an Act prohibiting the lending of
money to foreign countries. Though he was aware
that this clause was in a great measure rendered nu-
gatory by others in the same Act, and that no prolii-
bitiOnscouldbe completely effectual fcr such a purpose,
the passing of such an Act proved the opinion enter-
tained as to the perniCious influence the transmission
of capital out of the country wuuldhave upon the funds.
But what he at present desired to know was, whether
Ministers had, in the case of the late Loan, done any
thing to remove the encouragement given to such
negotiations by the Treaty of Paris? Commissioners
had been appointed to inquire what balance was due
, by France to :his country for ,the maintenance of
prisoners of war, though a clause in the Treaty gave
up to France the whole of that balance, on condition
of the French Government paying the sums due to
the subjects of this country who had speculated in
their funds. It was difficult to see what necessity
there could be for the appointment of Commissioners
to inquire into • the amount of a balance which was
to be totally abandoned ; but from that incoiry it
appeared, that be balapce was infitaely greater
titan the amount of the sums due to British creditors;
so that, in fact, had this country paid these creditor,,l
a great saving would have resulted to the puhl.c.
After the example of such a transaction, what secu-
rity was there that a similar improvident bargain
would not again be made ? It was, however, most
essential to the interest of the country, that no en-
couragement should be had out to such translctionse
'and it elicit Lordships had any hope of ever der ivi,ig
advantage from that Sinking Fund of which M,,isters
haasted so much; they would do well to koic a ith I
a
jealous eye to the supplying of fcrreigrt couotries *ith
r that source of prosperity they so muco warned; capital.

. . - .
Aftet what had Inepentinl, was it. ezpeeed 17.4: .
future uneaten of the French Gevernmesit, oat; it.;
alibis euentry, would not set op a claim to hilt reg-
rew= of their delns ? Seppese the present Pt retch
Gevetninent were tea reduce the debt due to their
own subjects, zed alt balding prupeity in their funds.
would not she case
f o.the. persons, wino have now ate
vanced money to Feiner be etroneer thee those who,
under the last treaty, experienced sa eterearetinary a
protection tromgolveintnent ? Those Wm irad thus
been rewarded .leneeheir money to the French Go-
vernment to enable it, to make vier against us; but
the peruses who embarked in the present loen know,
that the money they advance will enable the French
Government to fulfil their erre egements with this
Country: certaiely a very deferetit pi'urpose. But
still, why shteild any Government holdout a bowls
to its settiects to trai.4.l- their capital to a foreign
clumsy ? The Nl,tile Lot.f had agreed to.the pass-
ing of a Bill, at two years f.nm the date of which the
Bank restriction will expire ; teat will be about a
year and a half from the present time: but it en-
couragement is given to the transfer of capital to
other countries, what prospect is there that this sa-
lutary measure can be casried into effect ?—(Near.)
He wished that the Noble Lerd oppositts siceild meter
to the correspondence which passed li,stween Mr. Pitt
au.l the B ink Directors: he would 'five se:• the in-
juri ma effects which were to b: expected from en.
couragement given to forzien lams. The Nelda
Lord will perhaps say, that th • pot thm of the present
loan which :s to go Iron t!rs c• sorry is very men ;
but if he looks into the correspondence alluded to, he
will :had that she Dircctors et3jeeted to so small a
suns as ag900,000 beiag sent ahroed. Wes it possible
for any Noble Lord to believe, that a less bum wet
transmitted to France On the canner, , the preha-
bility was, that the gee 'ter proportion of the mon-y
would go from the country in which the rate of in-
terest was lowest, and quantity of capital the greatest.
In this state of th tigs, what iiiducement would there be
to invest money inourtuntis—( Eerl of Liver pool
smiled.) From the manrc in which the Noble 124:1
has received this observation, he donbtless means CO
maintain, that the chief inditcern-nt to invest nuerzy in
the public funds is the opinion of security and reli-
ance on the credit of the coim try. He confessed that
he had once been of that opinion himself.: but
farther consideration of the subject had induced hien
to attribute mote importance to the rate of interest.
In this respect our kinds had to sustain a disadvan-
tageous comp erison, both :Monad and at home. The
Noble Earl most know, that there never was such a
disparity between the interest to be made in the funds
and the interest in the throaty-meat ket as existed at the
present moment. his Lerendtip concluded by mov-
ing, that these be laid he ore dr. House c.,pses of
papers or con.munications relative to the late 1., in to
the French Government which hush passel teeteLen
his Majesty's Ministers and patties concussed in the
said loan.
Lord LIVERPOOL had a short mimer ne the
Noble Lord's Motien. Government bad not, nor
could they have, any cammunications to lay before
Patliatnert. 11.: would now repeat what he had said
on a (sort occasion, namely, that the Government
had not interfered either to encourage or discomi,ge
this AtiVettlee of ineney to the Fte.nch Government by
liriti h indsviJoah, The individuals concerned, how.
I ever, were wet! aware that Government would gise
no go trainee for the repayment of the money Vets
Ai/Aced by them. The Noble Lord had tilindtd
Ito an article in the Treaty of Paris, uh ch he said
e.ive an artificial credit and seppnrt to the French
Funds at the expense of this country, and had said
this article would form a precedent for future treaties.
This he (Lord Liverpool) denied: the circumstances
attending that Tteety were such as he hoped tenet!
never occur again ; but they were such as called for
extraorginary circumstances to be adopted with which
to meet them, and he trusted would justify the adop-
tion of the article in the 'Treaty to which the N..1)11
Lord had alluded. ' With respect to what had fallen
from the Noble Lord respecting the Sinking Fund
of Sir Robert Walpole, and subsequent Ministers,
down to Mr. Pitt's Sinking Fund, Mr. Pitt's system
differed, and excelled all foimer systems, because it
was kept up during war, and it would in a little time
place us in that situation in which i country would
w.sh to be. We should have a low rate of interest,
and an abundant capital; and he considered that the
adoption of any measure restraining individuals horn
employing their capital to the bes: advantage, would
be a measure of great impolicy. respect to
the restriction of cash payments by the Bank, he
(Lord Liverpool) had some doubts as to the neces-
tity of the measure, but he considered the adoption
of it as fortunate for the country.
Lord HOLLAND observed, that in the answer
which the Noble Earl had attempted to give to the
speech of his Noble Friend, there were some circum-
, stances which he had most unaccount ok.rd.
He had not thought fit to notice th .t this coon-
, try had purchased the payment of two miliions and
, a half from the French Government, by the sacrifice
of seven millions. He believed diet no man could
, be called very unreasonable who supposed, that if
the doiernment of France were on a future Occasion
to be as successful as they h id inelie lite war been
ultimately unsuccesslol, they still would have ne obe
jection to the introduction of a clause giving them a
similar advantage in any Treaty that might be con-
cluded. In speaking of the Treaty of 1787, too, the
Noble Earl omitted to state, that the advantage of
the at Cele he hail reß•rt ed to was refused to the British
creditors by the Ministers of die Noble Etrl's party.
The Noble Esti then nested the claims of such cre-
ditors as extravaglet and absurd. He was therefore
still of opinion, that Parliament ought to adopt some
I officiel mode of declaring, that the late Treaty wi:11
France was not to be draseteinto a precedes,,, so as
to serve as an encouragement to petstins to inv,.:t
I money its rise funds of Foreign States. •
Lord LAUDERDALE replied, and contended
ib.:t Mr. Pat's Snkiag Fut d did not differ in princi-
ple trim former Sinking Funds. With respect to toe
suspension of cash payments by th Bank. he was
persuaded this measure had beets the source of greet
part of the evils mider which the country at present
laboured. The Noble Lord then withdrew his Mo.
tion,—A.djoursted.

the- r twig of
!Nat.—Wednesday sight a Are broke oat in the worsted mill
othfeMme:cirbsin!l'eay:eic.a.t vinarili4nsifrnt4e‘swilCcohl allnelrt°hTee4..i... 441 the
:.rtes. The ,NivtLr a r:••ttaa•t 41 4: £15,04.10.

THE _is NINO, s FAIL

LONDON.

WEDNESDAY, FEBRUARY 19, 1917.
Asa Wkbei AV.—HoliJay at the tank.Exchetuervand South

bia I louse.

The Commons dii not meet yesterday in number
sallicient to proceed to husinr”, and of course the
House was adjourned.

The Report from the Secret Committees, which
has for some days here so anxiously looked for by
the Public, was presented last night to the Peers by
the E.irl of Hanttowny. It has been ordered to be
printed, hut as, in the mean time, it will be gratify.
ins to oar Readers to be as fully informed of its con-
tents as pOssible, we here give the correct substance of