Star.
London, England, 1826-02-11 00:00:00

Week of that preposition; bet his Hee. Friend ought todistlogtddi
betsvese that eepkal and that which bad bees accruing to the Bank
in tesseeqweate of their operations, and with which they were at
lability to deal its they pleased. His lion. Friend stated that the
Bast were in the habit of Waring 7,000,0001. urea Exchequer Bills
at one time, and 9,orounol. at another,. and that those advances
swallowed-op all their capital, and left theme without any means
at their disposal In the first place, did any iseeSuppose that the
.eseen milis,et pounds which cons-ituted the charge on the Consoli-
dated Fund, became all demandable in one day ? Thz money
was drawn out in 1.-p..rate purlieus at different periods.-,
At the same time, the accruing receipts of the new quarter were
daily paid lute the Dank ; stethat, after all, the Alarming statement
made by his Ilan. Friend, respecting dificieocy -bills, which be
was surprised that he should have fist forth at a period of stick
exciternem, amounted to Nothing more than this—that the Bank
was in the habit of paying daily to and receiving daily front the
(:tiveritment, in the sante way as a private Banker would deal
with his customer. Instead of the Bank advancing £24,000,000
to Government, as his lion. Friend had stated, they advanced only
the sum Mr had mentioned on account of the half-pay (which they
might get rid of if they thought proper), apd about 'A1,000,000 on
Ezchequer Bills; the deficiency, bills he considered no advance at all.
He was not a little surprised at another pal of his lion. Friend-'s
speech. lie stated, that at an early period after the conclusion of
the war, the market which exited on the Continent for bur ma.
ntaactures afforded a favourable opportunity for obtaining a supply
of gold, which would have enetied Government to have got rid
of the U. and St. notes. Did the Lion. Member recollect the
state of distress in which the Continent was placed by the operation
of the tremendous war of whicit it ha4sbeen the theatre for
quarter of a century? The Continent had neciben the means of
p eying for our manufactures. There was at the present moment
a much greater expert of manufactures than at the period to
which his Hon. Friend bad alluded. Talk of trite principles of
trade—he was surprised to hear his Mon. Friend argue, that, in
order to obtain a supply of bullion, it was necessary that the goods
expected should be paid for directly in metallic currency. The
quantity of exports last year was greater than in any previous
yetar in the history of the country—their total value was greauir
than la any previous year. What signified it to him, whether
these exports went. to Cuba, or the United States of North
Ametica, or the sew States of South America? Did not his Heo.
-Viand know brew bills sometimes travelled about through the
world ? It had cone seder his own knowledge, that bills given in
payment for goods exported had travelled from South America to
and had ultimately been returned to this country in the
shape of bullion. To talk, then, deur baying been shut out from
the Continent, and haying lose the opportunity of obtaining bul.
lion, shortly after the peace, was a misreiresentatioa of facts.—
The aetpirement of bullion depended an eIV exports. The Hon.
Iteentber who spoke last had imputed to his lima. Friend, that be
bad not gets into the real causes of the distress of the country.—
The real cause had been stated by, his Honourable Friend—
it was over-trading u that was the immediate cause. It pro-
diced a spirit of speculation unequalled either in extent or
in emotion at any former period. The consequences were want
of. confidence—all kinds of commodities were raised to an arti-
ficial prier—a rapid rise took place, and then a rapid fall.—
The speculation extended to almost every article, to most of the
staple commodities, which were exchanged for the manufactures of
the country. and the articles of its consumptLo--cotton wool,
timber, wine—eetry article of the most extensive consumption.
When this speculation took place. front the unfavourable state of
the foreign exchanges, the gold was going out of the country. Now,
if there were one axiom in commerce better founded than another,
as axiom which was as old as commerce itself, it was this—that
an unfavourable state of the exchanges encouraged imports,
and checked exports. If men, and practical men. did thus
rhnsack every corner of the world—Europe. ;America, Asia
-Mx cotton wool. and for esker articles of speculation. these
commodities could be paid fee,- to no other shape that) by coin.'
The country could not go on thus, unless the Bank took measures
lb step the rids of minim& It did adept measures,' and then the
spectdatinn was checked. These nieudfei prodilefdlite rule of a
fel banks, which. petits's+. brought on the ruin of others of a
more solid character. Ilieu came the convulsion
amongst seven or eight hundred. emmuy banks. Mesawhile she
Bank of England was the Palladium, the only sate deposit. The
Could not look withotit alarm to such a sadden such en no.
eXpetted demand, as was new modeepon it. He (bit. Hushlason)
would ask the House whether such a state of things as this,. which
would expose the Bank to the demands of seven or eight hundred
country bankers, was consistent with the safety of the country?
(Ale. Huskisson's) opinion, after watching carefully the coins
or.oveats, was this—that cash payments, and the circulation of
one and two pound notes could not permanently co-exist.—
Ile would put his argument lute the form of a simple proposition
—lf there were its any country a paper currency of the same den..
satiation as coin, the paper and the coin could not Circulate togs-
t iftr t the paper would drive out the coin. Let the crown motes be
inede, and we should never see crown pieces; make half crown
noise, and a half-crown would net remain in circulation. Allow
one pound notes.to circulate, and we shall never set a sovereign.
Every banker was anxious (and he did not blame them) to put into
circulation the greatest montble quantity of his notes. The majority
ofthe bankers, be believed, were cautious and prudent men (sem',
indeed, were not possessed or much cautioo): but, whether cautious
or not, they relied, more or less, upon the Bank of England;
aid not only the seven or eight hundred' country bankers of
England, bet the banks of Scotland and Ireland. Was it the
dins, of the Bank of England to proirids gold upon all occasions
nut for ordinary demands, but for a panic which might occur?—
Were thci to provide gold for the adjustment of the foreign ex-
changes? It was impossible that the Bank could do this; it was
unfair that they should be asked to do its so long as they possessed
their former exclusive ptivikgee In banking, there might be less un-
seasonableness iu stitch demand ; but now that they bad surrendered
those privileges, they had a right to ask of the House to be relieved
front the tit* heretofore imposed upon them. Why was the
Bank of eFatgland alone to be called on to ensure its solvency ?
Should not country bankers be required to do the same ? The
light Ilunoorabk tientkman was, , however, speaking only
with reference to a panic which had happened, and might
happen again unless the present sy,tent was changed. Hr
stated last year, upon a discussion respecting foreign exchanges,
that speculation was too high ; that gold was going abroad, and
that gieat distress must follow an unfavourable harvest. ,Happily
the harvest bad not been bad, hut it they had been placed under
difEculties without an us.favour.thle harvest, were they prepared tto
say the Dark of Etuzland was able to meet panic under an unfa-
vourable state of rite harvest? ire said in the must positive manner
that the que.rion war nothing less than whether Parliament were
prapared to incur hazard anti disgrace by retaining the present sys-
tem, or whether they were prepared to meet a state of thing.
Which could net be lens endured. by putting down one and two
pound :totes? They bad an excess of paper. 'lle circulation of one
and.two Foetid notes was dangeraus to the currency, and therefore
he asked whether the cemedy proposed should net be applied?—
whether the currency should not be placed on a firm basis? Who
could describe the sufferings of the labourer who was paid his wages
in one pound notes when a Bank broke? That diem. which had over-
taken the farmer and labourer, had also overtaken thodifferent classes
cif manufacturers. The Noble Lord bad said, the agricultural interest
was improving; but be could tell theitioble Lord, that diminished
means, among manufacturers, would diminish the interests of
those who provided for the consumers. The prosperity, after
ere, was iiccasioned by the relief applied to manufacturers. The
distress which pervaded ntanufacturing districts would always be
felt by those who provided the articles of consumption. His Hon
rrieod had alluded to France; but that country never could be
onmpared, in all its periods of dimes', to England. In the
worst of times in France, the labourer never felt the misery.
a. 'mug from a paper currency. The Government paid the
1, u.rr. and be was, to a certain extent, secured from want.-
1 64141 A: distress in France often Laid prostrate tbe*forest tree, but
• crush the weak shrub. In the same riOUIDIT let the evil of
e t.tfess, when it came, apply to the strong, and pass Over the poor
I.lbilurer. Let the Bank of England be enabled to meet all de-
mands in the common course of business. It was necessary to
establish the currency on a firmer basis, and the question was,
halm the present was the proper time Tor commencing a change?
to Country Banks as one of the best establishments any
country cnuld poetess under proper restraints. He would not
allow them to circulate notes of the value of the coin of the realm.
He considered such notes a violatioa of the Royal prerogative. The discussion last night in the House of Commons is
Lit 046" im" ""r "v" d's hiSmir dt"aripari" of the of such vast impOrtance, that we are induced to present
coin. 0 they issued one and two pound sotto they Weed
that Dnieper which °overtimes' coined at considerable expense. our Readers with an ample report of the very able
The gunnels them was, whether these notes should be gradually statements made by die Honourable Members who se-
witbdrs*e ? He had beard AO opinion, that this WAS net the pro-
pee time . The Hen. Member for Grampeued was of that opinion.l vitally delivered their sentiments on the occasion, rather

• The tight lion. Gentleman mould atit admit the a pelleeey of
delay. Let the present mama pew mew and aens*/ I'd diem-
'Ores again in a mate of is end intoxication which would perhaps
WSW be elves up. What had bees theeesseipienee of those issues
of country-notes? • They had take* speck from the Rank. It was
said, wait a fear week* and the gold would flow back. and the
country be in the old state. That Was i most erroneous ides. It
would only bring ou- further calamity. He did nor, however.
clearly see the object his Hottourable Friend bad in view.—
Mr. Baatso, in explanation, raid. his proposition was, to-begin
the restriction upon one and two pound i.otes after one year].—
He (Mr. Iluskissoo) could not calculate upon a continuance of cir-
cumstances favourable to the change duringfour years. Perhaps at
the end of the first year his Majesty's Minister* might be told they
had neglected to produce the change when the proper oppor-
tunity offered. If the plan were to be deferred under the
present circumstances, much of the benefit to be derived from it
would be lest. A Noide Friend had formerly stated a system,
which would give the country a more extensive metallic currency.
He was of opinion that it was most desirable to place the
currency on a broader Oasis than that which would follow from
increasing the gold circulation. The Right Hon. Gentleman had
agreed in some points with the late Member for Portarlington, but
to all the suggestions of that Gentleman he could not agree.
He really thought, if that Hon. Member had lived to manage the
Bank upon his own, principles, be would have seen a sto, page of
the Batik. He had endeavoured to ascertain what was the best
mode of insieduclne• a system which might make silver a legal
tenderoo ai to prevent the painful necessity of returning upon any
occasion to the measure of restriction. All MM. Member had said,
in rather sweeping terms, that for much of the late wild speculation
which had been marrying on throughout the country, alinisters
chiefly were tc blame. Now, the House would remember when it
was that the great bulk of these specalatitms bad first ionnitirstced :
it was in the sprittA of last year. To refer, standing where he did;
to what had_ been said by Lord Liverpool, would be contrary to
order; but he had taken the trouble to refresh his memory as to
the precise terms of what be had said himself. Vs February last—
in the very commencement of those speculations—he bad used
this particular expression in spa akidg •of them-0 that the
lottery was a safe adventure, compared with the mass of those
in which persons were engaging." Again, in the month of
March, speaking of the speculations, he bad distinctly declared
his opinion that those who engaged in them would find themselves
disappointed. Unfortunately, those to whom this advice bad been
addressed had disregarded all warning. They had rushed, in con-
tempt of all caution, on to their own undoing, too many of them,
and destruction. But, although it would he irregular in hint to
refer to the precise terms in which Lord Liverpool had spoken
typos the sabject of those unfortunate speculations, yet the opinions
delivered by that Noble Lord bad neither been less unfavourable to
them, nor leas strongly expressed than his (Mr Huskisson's) own ;
and so far from having adopted any measures calculated to foster
or assist dealings of that hasardous character, he did most distinctly
Arm that Government had done everything in its power to dis-
courage theqt—(Continued cheering).
Mr. GORDON complained of the inconsistency of the Right
Hon. Gentleman (the Chancellor of the Exchequer) who, as a
Member of the Cabinet, supported in len. that messire which he
now sought to abrogate. He aalntained his own consistency upon
this subject, as he had uniformly Opposed the measure brought in
by Mr- Secretary Peel. believing It to be utterly impossible that we
' should pay in gold, a debt which we had borrowed in paper.
At this period of the debate, a loud and general call was raised
to adjourn.
Mr. Secretary CANNING said, it was well known that many
Gentlemen wished to speak oo the question, and therefore it might
be desirable to adjourn the debate. The Right lion. Secretary
consequently moved that the debate be adjourned to Monday.
The other Orders were then dis•i oned of, and the Home ad-
journed, at Haar-ran: Talites o'Ct.ocs, to ;Nionday.
•

pi9i;Nisti siAt.

L' rti)ON.

BATURD tY, FEBRUARY 11, 1326.
STOCK EXCHANGE, TWELVE O'CLOCK.

Considerable anxiety was manifested on 'Change this morning,
to see what effect the debate of last night, in the House of Com-
mons,-wuuld ha►e on the market, which continues in a fe►erish
state. Consols opened this sporninest the cunclUding price a Yes-
terday, 774 4, but they soon fell to 764 for the Acenust. This
decline is attriboteti to wee real or dietembled fears, that the•pisn
proposed by the Comaantsoa of the Ezestrotrait will not be so
effectual In placing credit and eossunstee on its former basis, as
Madders seem to expect. A good deal of business has been done,
and the Brokers, feeling a ioniser decline, are selling largely.
The Foreign Market is in a most gloomy state, Shares are a
drug, and South American &entities continue to fall.
Current Prices: Old Spanish 10, Mexican 614 60f, Colom-
bian New U 4 .52h, Russian 77 7s. Brazilian Bonds it Si; Greek
'Beads 174 Is.

HALF-PAST ONE O'CLOCK.
Consols continuo to improve, owing to some ➢cokes purchasing
largely c they its nose Tog.

ICK I)? STOrK S AT TWO O'CLOCK..
Rank Stock 198% 1971,4
S per Cent. Red. 78 77
3 per Cent. Cons. 771/4 76% %
3i per Cent. Red. 851/4 Vit
4 per Cent. 931/4 1/4 93
Long Ann. 19 1-16 18 15.16
India Bonds 14 di,.
1:1,009 Facheq. Bills 3 2 5 4 di..
£3OO ditto 2 3 1 dis.
0100 and LAW ditto 2 prem. 1 dis.
Rank for Acct. 197%
Cont. tor Acct. 77% % 761,4 77
FRENCII FUNDS, Pants, F5lll/A RP. 1.
Five per Vents. . . . 99E. 35e. •
Three per Cents. .
Bank Stock
Hewes de Naples
Royal Spanish Loan, 1523
Haytiati bean • • 7501.
/Lachine on London, One Mouth Lit 45c.
Three Ditto II 25c.
FOREIGN FUNDS, TWO O'CLOCK.
Austrian Ills S p Ct. lex. Scrip.
Brazilian Nwods, • Niapolitatt Bonds, •
Ditto Acct. Pinny. lids. 6 p C. 5.5
Do•Scrip,spCanlS. Ditto Acct.
Buenos Ayres Moils Ditto Scrip, 1523,6 p C.
Mikan 800da,6 p Ct. 4S Portuguese Bonds
Colonittian 11.6,6 p C. Prim; W.. Sp C.
Do. lids 1124, 531 II 31 De. Benda, 1522,
Do. Act. 531 1 11.3 Ituas.Bda,lass,aip C.
Danish 1.10114, Ditto Acet.
Do. Marks . Span. Sp Ct. C. 10 91
Du• Eds, 3 pC. 1635, 52 34 Unto for, Ace. 10
Ditto Acct. Ditto 510, •
Grisk Donde Sfian. sp. Ct. C. 1933,
Dialids,l4l2s, 171 lerench Itiones,ls p C.
Ditto Atet.l7l 11 Exchange,
Mex. Rondo 5 p. Ct. French Rent's, 3 p C.
Ditto Acct. 5 p C. Exchange,
Dn. 11d5,152.4, 6 pe. 601 60 1 Guatemala Bowls,
Do. Acct. 611 591 61 Ditto Scrip
URITISH AND FOREIGN SHARKS, TWO O'CLOCK.
MAIM ram.
100 40 121 25
100 5 .
100 d 5
100 • 5 • • 7
100 5 11
400 400 400.
400 SO so
40 10

. 6SC 60r..
• 903 SK
. 761. ISe.
491 C.
_ .

Anglo Niexlean 5 pm.

Anitu Cbilian
Milian

and Peruebut
Real del Monte
Ditto New
United meekest

Ditto New ee lei 10
Welch Imo & Coal ss to . 11 10i
Liverpool & lilaneheater 100 el