Star.
London, England, 1803-02-23 00:00:00

Tilt SANK.

Lord PELHAM then moved the Order of the Day
for the fecond reading of the Bill to continue for a
further time, to be limited, the reftriaion on the
craft) payments of the Bank. In riling to make that
Motion, it was not, he Aid, his intention to detain
their Lordfirips' attention for any length of time.
The reafons which, in his mind, junifisd the re-
newel of the meafure, he had Rated on a former
occafion, and to what he had then urged but little
row occurred to him to advance in addition. The
Noble Secretary of State then proceeded to take a
curfory retrofpea of the operation of the refiriaion
fence it was fira impofed in 1797 down to the pre-
fent time, and from that retrofpea he thought him-
felt warranted in afrerting that no injurious confe-
qnences had arifen from it. Of the (lability and
folvenc7 of the Bank, as no doubt was any where
entertained, it was fuperfluous for him to bring
forward any proof. Other reafons called for the
continuance of the reflriaion, more particularly
reafons of prudence and expediency. On a former
day a Noble Lord (Moira) had afferted that the
meafure now under their Lordfhips' confideration
mull be either a meafore of Government, brought
forward by Minißers from motives which they
imagined junified them in propofing it ; or it was
a meafure fondled to them by the Bank, and
propoferl at the fuggenion and for the convenience
of the Dire&ors. -Nay, it was not very obfcnrely
hinted by the Noble Lord, that propofition might
have been the refult of force mutual arrangement
and accommodation between Government and the
Bank. To there obfsrvatinns he had only to re-
peat the fame anfwer which he gave to the Noble
Lord on the occafion already alluded to, viz. that
the idea of renewing the rellriaion at the prefent
moment originated folely with Government. Go•
vernment had no communication, direltly or indi-
realy, with the Bank, as a Bank, upon the mat-
ter: upon the propriety of the meafure the Direc-
tors of the Bank might have been confulted merely
as individuals converfant with commercial affairs,
and likely to be ben acquainted air!' what might
injure or promote the c-immcrcial profperity of
the country. lt was indeed the general opinion of
men ben enabled to form coned notions on fuch
topics, that therefirietion cn ;he Bank had proved
highly beneficial to commerce, and to a wider ex•
tenfion of every fort of commercial convenience
and facil t to efe, in concurrence with many
other •• • • • educed Kadin-ram to pto
aF 111*- 1?
1

pek it anew. 'They fee the eottrfe of' exchange,
which the very large remittances in fpecie for the I
purchafe of corn in times of fcarcity, for fubfidies
to foreign powers, and for the maintenance of our
fleets and armies in diftant Ilations,had occafiined
to be fo much againft this country, now gradually
turn in its favour; they fee our trade and com-
merce gradually encreafing and fwelling into an
extent beyond any former example; they have
confequently juR reafon to welt that in a (bore
time there will be fuch a reflux of bullion into the
country as to make up for the enormous drain of
fpecie which the imperious nature of the circum-
fiances juft enumerated had unavoidably drawn
out of it. Did not, therefore, iautions prudence,
did not found policy, call for a temporary conti-
nuance of a meafure from which no mifchief had
accrued, but from which, on the contrary, much
benefit had relished. There were other ftatements
made by the Noble Lord, to which alto he might
be erpefted to advert, more particularly of fome
inaccuracies which the Noble Lord imagined he ,
had ditcovered in a late ftatement of the financial
fituation of the country made in another place.—
As he did not conceive thefe obfervations to be in-
timately
connected with the queftion before the
Houle, and as moreover it might not be in his
power to ?edify thefe inaccuracies, if indeed any
fuch exifted, he fhould abitain altogether from
that difeuffion, uniting that their Lordfhips would
feel with him the expediency of continuing the re-!
Brillion for the reafons he had now, and before
alledged, and of the fufficicncy of which be hoped
their Lordfhips were fully convinced.
Lord Keno declared himfelf of a very oppofite
opinion. He could by no means agree that any
thing like adequate and fatisfaftory reafons had
been adduced for further continuing the refiriaion
on the Bank, under the prefent arcomftances of
the country. It was a meafure which he could
not but look upon as a very extraordinary one ; a
meafure that encroached on private property, that
violated public faith, and that put the whole mo-
nied property of the nation at the mercy of the
Bank Direftors. It was an infringement of the
folemn and facred compaa which the Bank had
entered into with the public when Government
granted them a charter, and could their Lordfhips
precipitately affent to fuch a meafure without fuch
reafons having been adduced for its abfolute ne-
ceffity as ought to amount almoft to demonftra-
tion, and enforce the flrongeft conviaion in their
Lordfhips' minds ? But where were the proofs of
that neceffity ? Did the country now labour under
that extraordinary preffitre, arifing from a variety
of difficulties and dangers which were advanced in
fupport of the firft adoption of the reftrietion? On
the contrary, was it not confeffed to be in a Rate
of the highly commercial profperity ? Where then
could be the urgent neceffity of its renewal in fuch
profperous times ? what would be the area of it,
but the encouraging of an enormous Are of paper,
which railed the price of every article, and mull
continue to keep the irate of exchange unfavoura-
ble to us ? To prove that fuch mug be the aka
refulting from fuch a meafure, the noble Lord en-
tered into a variety of comparative ftatements of
the courfe of :Nchange at different periods between
Hamburgh and London, and between Lilbon and
London. Thefe ftatements he principally took
from a paper, called the Price Garrott, which was
lublifhed twice a week, and which vas generally
ooked upon in the City as very accurate. Ac.
cording to thefe ftatements it appeared that from
the time the reftritaion was firft impofed, the
courfe of exchange began to turn againft this
country in various proportions to the quantity of
paper in circulation. Previous to the laying on
the reftriaion, the Bank feldom Med notes to
more than the amount of ten, eleven, or twelve
millions, but fence that period they ifued to the
amount of fifteen and fixteen millions. Hence the
rife in the price of bullion ; for it was juftly re-
masked that in proportion as paper was plenty,
and therefore cheap, gold would be Pearce, and
confequently dear. The average amount of our
circulating medium was about ten millions. That
had been found fully fufScient to anfwer all the
purpofes of the country. When, therefore, an
unneceffary addition was made to it of one, two,
or three millions, there was a depreciation in the
value of paper in the fame proportion. But it was
not merely on account of the inconveniencies ari-
, ring from the meafure that he objeCted to it : he
objeCted to its principle, and to its being drawn
into a precedent, which, he feared, would be the
cafe whenever it might fuit the convenience of Mi-
nifters or the Bank ; and thus Parliament might
be called upon not only to confide implicitly in 1
Minifters, but alto to place the fame confidence-in
the Direftors of the Bank. In this point of view he
wiffied their Lordfhips to confider the meafure, for
when thus confidered, it appeared to him to be
highly objettionable.
Lord Su FroLIC Paid he would trouble their Lord-
(hips but with one obtervation, and that was re•
fpeeting the encouragements which he expelled the
Noble Secretary of State would hate held out for
the improvement of agriculture. Unlefs a much
larger track of land was cultivated in that manner,
we fhould be continually under the ncceffity of
fending our fpecie cut nf the country for the pur-
chafe of corn. The (mall tracks of land that were
yet enclofed, bore no proportion to what remained
uncultivated, and unlefs encouragement was held
out for further encloftwes, as our population daily
increafed, to fhould our want Gla fiipply of grain;
and as France would now he the neaten and the
cheapeft market, it would naturally be retorted to
in preference to any other. What immenfe rums of
our money moil, therefore, find their way into
France, the confequences of which be fhould leave
to their Lordfhips' confederation.
The Earl of Mot RA was at a lots to fee what he
had to offer in addition to the ftatements he bad
made on a former occafion, which were confirm-
' ed by the papers now on their Lordfhips' Table,
but which had been fcarecly once adverted to by
the Noble Secretary of State. He perfeelly con-
curred with the Noble Lord who fpijke Loft but one,
that when the Bank iffued"-paper to an extraordi.
naty amount. their notes mutt virtually bear a dd.
count, or Puffer a depredation, and the price of
bullion mull alb rife in proportion. Gold watt no;

fold for gold, but for paper, and its pike would
always be in proportion to the greater fcarcity or
plenty of paper, or to that agamft which it was
exchanged. To the mifcalculation in the Rateracnt
of the Confolidated Fund, the Noble Lord again
adverted, and perlifted in his opinion that there
was evidently an error in it, though it might be
wholly unintentional. Indeed he was very little in-
clined to difapprove of any attempt to animate
the hopes, and uphold the fpirits of the country,
efpecially when it could be done on life and eel-.
taus grounds. He thereibre felt backward to blame
any overcharged colouring in the late Ratcment of '1
our financial profperity ; but he felt anxious, at the
fame time. to remind their Lordlhips that when
the deluflon came to be difpelled, much more per-
nicious etre& Wiled in the public mind than when
no expeOation had been railed at all. He alto
wished to Aired their Lordfhips' attention to the
facred nausea, of the compad in which the Bank
was bound towards all thofe who had entru fled
their money to their integrity—a compa.ll which
carried with it as fevere a refponfibility, and as
high a morality, as could be involved in any tranf-
adion between man and man—Was a compad fo
leered lightly to be trifled with ? When on a for-
mer occafiun be hinted the pollibility of a fecret
collufion between the Bank and Government, or
Come expedations of a mutual arrangement and
t accommodation, he was fomewhat mifunderftood
1 by the Noble Secretary of State. who reminded
' him that there was a claufe in the Bill prohibiting
the Bank from making any pecuniary advance to
Government beyond the amount of fix hundred
thonfand pounds. He could allure the Noble Se-
cretary that this was not the kind of accommoda-
tion which he had in his eye. The accommodation
he had in view was the facility which the Bank might
afford Government for the issue of Exchequer
bills, and which in reality have been Med to a
moll extraordinary amount. The Bank might be
fcreened on one fide by the continuance of the re-
aridion, and be tempted on the other by the fu-
perior advantage of buying up Government paper
of that defcription. Indeed when this motive for
the renewal of the reftridion occurred to his mind,
be difcovered a quality in the tranfaltion which
rendered it altogether uncongenial to his mode of
thinking, and he was lorry that Minifters had ad-
vanced no fort of plaufible argument to do away
that unfavourable impreffon.
The Earl Of WESTMORELAND contended, that
the prefent queflion had nothing to do with the
(lability of the Bank, or the expediency of the ori-
ginal reftriOion. Thefe points were long Once fa-
tisfadorily fettled ; and he had only to fay, that the
only refult of the inveftigation which had in the
firfl in Rance taken place was, if poffible, to place
the credit of the Bank in a Rill more unexception-
able point of view than it had previoufly been con-
templated. The only queftion now was. with re-
gard to the expediency of removing. at the relent
moment, a reftridion, the beneficial effeas of which
have been already fully experienced. At the time
when the reftridion originally took place, the expe-
diency of the meafure did not originate from any
idea of the inadequacy of the Bank to anfwer every
jiift demand. but was the refult of an extraordi-
nary and unaccountable alarm, which gave rife to
an unufual demand.' It never was the intention
of the ellibliftiment of the Bank that there never
should be an iffue of paper greater than, at a mo-
ment's notice, could be covered by an iffue of
calk. This, indeed, would be completely con-
trary to the very nature of fuch an eftabliffiment.
It was only neceffary that the Funds of the Bank
thnuld bear a full proportion to the demands for
which they might ultimately become refponfible.
That the refources of the Bank were completely
adequate to every demand, was queftioned by
no one, and therefore the queflion of continuing
the refiridion was limply one of expediency. On
the principle of expediency, the refiridion began
in a moment when an extraordinary alarm was ex-
cited, and it was proper that when the Bank re-
fumed its cab payments, no extraordinary demand
Ihould be created by precipitating the meafure.—
Delay could be produltive of no difadvantage,
while a hefty renewal of the reftridion might in-
volve the Bank in very ferious inconveniencies.—
His Lordfhip illuftrated thefe topics with cnnfider-
able force, and placed the argument arifing from
the Rate of exchange with foreign countries as ap-
plicable to this queflion, in a very prominent point
of view. • _ _ _

Lord AUCKLAND, in a fpeech of great ability,
'took a comprehenfive view of the fubjea. Our b•
mits, however, and the profs of temporary matyr,
do not permit us to enter into a detail of his Lord.
thip's arguments. He took occafion to ad felt to
an allufion made by a Noble Losd who spoke fe-
cond in the debate (Lord King), who had *fretted
that the proceedings of the Bank of Ireland were
not fufficiently charafterind by prudence : as hav-
ing taken a very waive part in the eliablifistuent
of that Bank, he thought it his duty to ani-
madvert on this expreffion, and to Rate, that
it was a fubjea of general notoriety that the
proceedings of this eßablifhment were marked
by the molt perfea regularity and propriety.—
Noble Lords were not jußifiable in throwing out
thefe look afro-dons, without being prepared
to fnbmit a clinic& cafe to their Lordfhips' son.
fideration. After touching upon this point, his
Lordfhip proceeded to argue on the queftion im-
mediately before the Houle. He alluded parti-
cularly to what he had laid on a former night on'
the fubjea of the courfe of exchange. He had
then acted, and he now repeated his tobferva-
tion, that it was not on the Rate of exchange
that he relied his fupport of the continuance of
the reßriaion. A confideration of much greater
importance determined his judgment ; this con.
fideration was derived from a view of the Rate of
the country in its relations with foreign powers.
He would offer no decided opinion on the probable
period to which the continuance of peace might
extend. hfir.iffers, he doubted not, would omit
nothing in their power to preferve a good under-
Rending with foreign States, but it was impriffible
to determine how far their exertions might be
fuccefsful. Before the expediency of difeontinuing
the reflriaion on the payments of the Bank could
be ellabltfited, it was acccary to wait to fee how

.tew
far there was a profpea of the•darability of pear:l
Already the courfe of exchange WAS affuniin.,,,
more favourable appearance, and the continuance
of peace could not fail to increafe this advantage.
ous operation.—ln the view of a permanent peace,
our financial profpeas, his LordfLip contended,
were of the molt fl.lttering kind, and it was agree-
able to every principle of policy and expediency to
wait for the operation of this financial profpttity
before the rellriaion was precipitately withdrawn.
His Lordlhip panic ula rl y called the attenti on of tht
Houfe to the very large drain of -cant from this
country for the laR ten years. He produced calm.
lations to Phew that, during the few years previous
to the original reltrietion in 1797, this drain had not
amounted tc lefs than 48 millions ; and, including
the drain which, from a variety of eircumßances,
had taken place during the laft fix years, the whole
could not be eftimated at lefs than 120 millions.
Under fuch circumftances, policy required that
the reftriaion (hould not be withdrawn till the ope.
ration of our financial profpea began to be made
fully experienced in the influence which it would
neceffarily produce in giving an advantageous
turn to the courfe of the exchange, and the influx
of bullion which it would create. In illufiratit.n
of this pofition,his Lordaiip laid before the Houfe
a calculation of the amount of the annual revenue,
contraflcd with the expenditure. The former he
calculated at 34 millions, and the permanent
charges at 25 millions, leaving for the ordinary
expences of the year a furplus of nine million,.
He intimated that he Ihould take an opportunity
of bringing this part of the fubjea under confide.
ration on a future day, when be hoped to be able
to convince their Lordfhips that this profpea, fo
far from being exaggerated, fell fhoi t of what there
was reafon to anticipate. Having infilled a good
deal at large. on thefe topics, his Lordfhip con-
cluded by voting for the fccond reading of the Bill.
Lord GRENVILLE faid a few words, with parti.
enlar reference to what had been advanced refpea.
iag the financial Rate of the country. He declined
at prefent entering into any difcuffion on the flub.
jet ; but profeffed his readineti to carryall it at
length, when it was regularly brought under con-
fideration. Whatever the period of peace might
be, and in his opinion it might be of very (hurt
duration, he trulted that the revenue of the coun.
try would be railed to a degree fully adequate to
meet the expenditure ; and that no fpeculltions
would be formed on views of the furplus of the
revenue above the expenditure, which might ulti-
mately be found erroneous and delufive. His
Lordlhip placed this part of the fubjea in a very
(hiking light; but concluded with again declining
any minute dircullion, till the fubjea came regu-
larly before the Houfe. The Rate of the finances
of the country was one of the deepek interea ;
and he felt no ordinary degree of anxiety, that a
fubjea fo intimately connedted with the falvation
of the country, mould be fully and fairly ender.
Rood.
Lord Kum in explanation faid, the Noble Lord
oppofite to him bad &rented him of (peaking lightly
of the Bank of Ireland. What he had faid wahl
that their lavilh Me of paper had canted the ex•
change again( Ireland to rife to fifteen and a half
at one time, and at prefent to be much agaiall it.
It had alto canted a premium to be given for
Guineas, for at prefect they gave in Dublin an
Irifli Bank Note and a Shilling for a Guinea. And
at Belfaß the exchange was now at par with this
country, which was generally attributed to the
people ofßelfaß having uniformly refuted to wept
the Notes of the Ira National Bank into theirreir-
ciliation. From thefe eirctunliances, their Lord-
(hips would judge whether he had fpoken lightly of
the Irifb Bank.

Lord Snaffle:As (poke at fome length with his
ufual precifion. He defended the Bill, particularly
on the ground of the prefent relative fituation of
this with other countries. He (hewed by a minute
flatement that the countries where paper has been
the principal circulating medium, have been chiefly
dillinguifhed by a (pint of commercial enterprise,
and that on the contrary, in countries where gold
was in the greaten abundance, as in France and
Spain, the grand fpring of commercial exertion
leaned to be fufpended. We regret that the prefs
of temporary matter has compelled us to avoid any
thing like detail, in this or any of the otherfpeeches
on this occafion.
After his Lordllip fat down, the queftion on
the ad reading was put and carried. The Com-
mittee was afterwards appointed for Thurfday.-0
Adjourned till the fame day.