Star.
London, England, 1816-03-30 00:00:00

BANK ADVANCZ BM&

The CHANCELLOR of the EXCHEQUER
having moved- the third reading of this Bill,
Mr. G REN FELL observed, that neither the Chan-
cellor of the Exchequer nor the Bank of England bad
attempted to deny those facts which he had brought
forward, and which were recorded in figures on the
Journals of the House. This being the case, he could
not allow this Bill to pass without an explanation of
the principles i n which he had acted in this question.
The Honourable Gentleman then repeated his aigu-
ments upon the subject, maintaining, that by the ar-
rangement which he proposed respecting advances
by the Bank, and deposits in it, R 240,000 might be
saved to the public. By what had already been done
by Parliament, the annual sum of rBlOO,OOO was
saved to the public. He was glad to hear that an
Honourable Friend of his intended to call the atten-
' tits) of the House during this Session, to the immense
sum paid to the Bank for the management of the
National Debt. Among the prospective advantages
from the discussions on this subject, he contemplated
the particjpation of the public in the profits derived
by the Bank from the Restriction Act.

Mr. FINLAY thought that the situation in which
the public stood with relation to. the Bank of Eng-
land, was neither more nor less than that of paying a
large sum for the management of its own money. It
seemed to him, that by the Bill, the public was ex-
posed to an unnecessary expense of £24.0,000, owing
to the amount of the balances of public money re-
maining in the hands of the Bank, and which ought
to be withdrawn.

The CHANCELLOR of the EXCHEQUER
said, that at a time when the sum of £6,0v0,000 was
required for the public service, the B ank had ad-
vanced it at a lower rate of interest than it el:old
have been obtained in any other way, and a itloout
the disadvantage of a pressure on the money niaik.3,
but even adding to the circulation. Ia this tianbac-
tion the sum of £60,000 a-year had been saved to
the public. Certain advantages Were secured to the
Bank by Acts of Parliament, with references to the
amount of balances of the public money in its hands ;
but there was nothing in this Bill to prevent any of
the public money being withdrawn from the Bank,
which could now be withdrawn conformably to Acts
of Parliament now in force.

Mr. FINLAY explained.
Mr. PON SONBY said, that the Bank having great
advantages secured to it by Acts of Parliament, it
was therefore the duty of -the Chancellor of the Ex-
chequer to make a better bargain for the public : that
the Chancellor of the. Exchequer ought nit to have
made the arrangement with the Bank ff,r the advance
of £6,000,000 without applying to the House, be
cause nothing but the House of Comm.:nil could be
a match for the Bank of England in such a case ;'
that he was as averse as any man from cluing any
thing to injure the stability of the Bank; but, at the
same time, he wished the public to have full justice ;
that of this £6,100,000, in reality, not one shilling
was the property of the Bank ; and that therefore he
found it his duty to give a negative to the Bill.
Sir JOSEPH YORKE remarked, that if the pro-
fits of the Bank were so enormous as they were slated
to be, it was strange that the proprietors of the Bank
did not find ft in the amount of their dividends.

Lord FOLKSTONE thought that the Bank of
England should be treited, with respect to the UF.
nagement of thepublic, 'in the same way as private
gentlemen managed with their bankers, whith was
by paying a commission for the negotiation of money
transactions, and receiving interest on balances left
in their hands when they exceeded, a certain sum ; or
by having ;heir showy transactions. negociated to
nothing, and receiving no interest for any balances in
'the banker's hands. The profits of the Bank were
now so enormous, that there were serious grounds to
entertain those apprehensions which had been ex-
preased so long ago as, when the Charter of the Bank
bad been granted, that the mcney accumulated by
the Bank might amount to such a sum as to.endanger
the safety of Government.
Mr: P. MOORE thought, that as the amount of
the balances in the hands of the Bank were admitted
to be to enormous, it would be the duty of the Hotise
to grant the stogies for the different departments of

Government, deducting from the arnonnt nt the els.
of England,mates.thestmiost
eachremtidlienp.tiigal.sn:ctiltl:a
l „rce in the
Ent;land. IL: thought the duty of the Cfatot
he would consider it a political h,it„, t„ tiedija,
the Exeltecuter was to-bring in a 811 in rend' avail.
able the balance% in the hinds of the 11.11 k.
Mr. MANNING that in lfitx), when the
Charter o! the Bank was renewed, the enaj.ct of the
Iprotits which it derived tromp the in:nu:rain! tithe
rtfatic money had been fully d'sco.,spas
4mouut sancti met' by Act of P trlistoient.Hr tats
no ground for the assertion of the I-Inimitable Gra..
tleman, that th e bargain made by Grv-rnm-nt a&
extravagant. The ?How:ince mule to the
the management of the publ.c debt WAS very nude_
rate. It did not amount to upwarsis of 8330
lion, for the first 1.00 milinns• It wen! on deur
aster, and beyond 600 ru Mans it W 45 rcti iced t;
£BOO per million.
Sir J. NEWPORT conten.l,d, Om the ClLmetrikw
of the Exchtver had not made gond b trga,n
the public. lie WAS C(EIViIICe.I, 110%4701.r, t
'few advantages which he kid obut.•'•%l restiittj fr. In
the
e,tinti„ns of ia4 Honour-11)1v Friets.l (Mt G.".
fell) tat yetir. N-ty, be had tan til4t ac.
coma of the present discas.inn, ;be C. •tec,lL r'cie
Ex:le:liter would be a!tit tc procure st,ii lie too t
trws
from the Lank in hit rizxr citr,r r..
peated the statement alreatly fit r!e on A o.)imerniist,
that the advance made by the Ij.t L, cuttl,r Mt,
without interest, consisted of or.l!' three
cause that etas wrong-iv represt;n:ed as tof altr,,rt
the balances then in the hands or the .34.,k, it
been known that they amoui.ted to six on, 43
advance to the saute amount would have 4:II tie.
handed and obtained.

Mr. NEWMAN regretted sincerely, that it ris
not in his power to retain thaas to the ell r
of the Exchequer for the bargain whic:, he lull cua.
eluded. .

The Bill hoeing been read a third time, •
The CHANCELLOR of the EXCHErEIt,
before it should pass, moved as au Antendmoa, at
the words In the preamble of the Bill, from list Cie
4th to line the Bth, Whereas the Gortreor a:,d
Company of the Bank of England are now pessessed
of divers sums of m arising from tie balance of
public accounts kept at the Bank," to " and wit.
ling, and have agreed to advance," &c. be omitted.
Mr. GRENFILL would take the some of the
House upon this Amendment. He had iatrnduced
those words into the preamble of the Bitl when toe
Report of the Committee had been brought up, attar
having shetvn them to the Chancellor of the Escs.e.
quer, who had said that he did nor °hitt to tient,
but advised hint to apply to the G ivertior of the
Bank. That he had done, and the Governor had es.
pressed no objection to them. The only remark
which he had made was, that the amendment Would
cut both ways. He had censeepontly bro•aglit it,V•
fore the House ; the governor or the ilia hal re.
tired before the sulsj:ct had come on, and IL witu:ds
had been adopted without air oppoiitior. But now,
after having had a communication with the &wirier
of the Bank, the Como ilor of the Excliecuer mewed
that they should he rescinded. I' Ice persisted in that
motion, he would lower the d;gnity of .the °Le
which he Oiled, and would degrade the House.
Mr. MELLISH stated, that wheo the Honour-
able Gentkman had given him_ a copy'of hi% intro:
ded Amendment: he had repressed a strong et.y.o.
tion. He Fad taken it home, lirwever, opt
that the Biil would Come on that aig!o. Salaried
at finding it introduced into the pre treble el he Bill,
he had been informed by the Hiniourabie Geralonsit
that the Chancellor of the Eschzquer had nothj,:c.
tion to it, provided he should considt the G' veva
of the Bank. By the Chancellor of the Exheior,
on the other hand, he was esstired that he (itieCh.n.
cellar of the Excht.oier) had tindeistoad fioin the
Honourable Gentleman that the Governor of :i.e
Batik had no olikction to the i:: set tinn ul tho•i-
H. complained of thear because they gavoiciexpante
view of the qie-otion.
Mr. I'ONSO,IV,Y called upon every Gentleman
in the House. ar.d-e‘pecially upon the indve idrt;t
Country Members, to state whether be was net rio t t
in what he had said, that the C iencellor eef Er.
ch-quer wos no match with the Bank of nolaiel .n
waking a loargoin.—(dear, hear.) Alter ha ;
vAig
agreed to.the insertica of certain words in thereeno
ble of the Bill, betauie he found they were not agree.
able to the Governor cf. the Beak of England, whom
lie rather seemed to -treat as the Governor of des
Country, he came to the House anal asked that they
should be expunged I Was net this a proof of the
ondue itifluence which the Bank exercised over lam ?
He hoped the House would not disgrace themselves
by expunging those words.-
Mr. MELLISH explained.
Mr. BARING thought the torte of indignation c(
his Honourable Friend misel.c.d. The BiA was
merely for carrying into effect a bargain betaro-ti the
Governmeot and the Kink ; and why should any
ahum be felt at it; beh:l seat:.: in a mantel silo.
factory to the parties concerned in it. He theatoht
the Governor of the Bank ins:died in objecting to the
words in question as a patty statement. It inserter,
then the same reivilege sheuld he ailooed to Co
Bank to state its ow it case also in the preamble.
Mr. ROSE was c mfirmed by what now took place
in act opinion he had long eatertained, ['rat
long preambles were very bad things. If a war ot
welds wete to be allowed, however, it should bit
equally fair on both sides:
Mr. TLE It NEY regretted the delay which there
sent discussion occasioned in mere important bow
ness. He contended, that since the substance was
given up to the Beak, a declaration of it might .at
least IR: suffered *to appear in the.. preamble. las
Chancellor of the Excaitteeer,• with "his usual gem,-
breeding, agreed to it ; bin do hard-hearted Gera-
nor of ti:e Bank would not allow it, and wished to
make it appear that the advance was one of me re ert
nerosity and public spirit on the part of tl.c Bank ; so
that,. although by a clause. in the Bill Paillarnoit
was. to be bound to leave the balances in the hands
of the Bank, yet the fact was not permitted to be
stated 'without any inference in the preamble. Tliis
was a little frivolous cavil on the part of the Bank •
which would yield them no other•advantage than to
:thew the superiority which they possessed over ale
Unfortunate and good-natured Chancellor of the Et.
chequer.
Lord CASTLEREAGH considered, that