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

sal made on Friday nigh!, and renewed on the following'
Monday'. Let us now •:iee What that -pc omssal. was.
Tire original' resolution -is - ire -these werrioa *tabs(
all promissory notes, isolable to - heaver% an . dii-
Irtianc. issued by knitted brisker, in &gb* vir
by An 'Dank of England, Ibil'atty 'wen less ihta SL
bearing a date previous t 6 thelth of February.. .180603 r
Iwhich mail have been stamped previously to that 44y,
shall, and may continue to be issued, re-issued, and
' circulated until the sth day of April, 182% and no
.longer ;' and the proposed Ameadment was, that
the words, i. or by the Bank of England," be omitted.
That, Sir, was the Amendment, and I ase„ would the
effect of it be the' ame as the effect of the present pro-
position ? The effect of the proptisition of my Right Hon.
Friepd v. ill be to give to the Bank of England a period of
eightmonths,during which time they might prepare their
issues; but the effect of the Amendment which I have
mentioned, would be to leave the Bank of England un-
limited in point of issue for the time named in the Bill
introduced by my Right Hon. Friend. Surely no two pro-
positions can be more distinct. The elements are the same
' but nothing can be more different; the amendment of
Monday last made the Bank of Englaod exempt from
all restriction, while the proposition of my Right Hon.
Friend merely gives to the Bank of England the power
of adding to its issues up to the 10th of October next.
For the latter proposition I shall certainly vote; and in
doing so, I must clnless that I cannot agree with the
Honourable and Learned Gentleman, that my vote
on the present occasion Will be a betrayal of the
principle which was the foundation of my vote on the
for mer occasion. I confess that I can see no inconsistency
between the two votes. The- second answer is this--
During the whole of the debate on Friday, the 17th,
it was argued, that it would be-a grwat abuse on the
part of the Country Banks, as well as a
_great aban-
donment of their own interests, to withdraw their
small notes suddenly from circulation. When that
argument was used, I, in particular, dwelt upon that
point, .and endeavoured to show the country bankers
that their interest, as well as the public convenience,
lay in their spreading the withdrawal of these notes
over a large space of time. But what has since hap-
pened ? Why, that accounts reached his Majesty's
Ministers that the bankers in many parts of the
country had taken that course which he had believed,
in good faith, as • well as in good policy, they would
not adopt ; and were acting upon the principle of
suddenly and most materially contracting their issues.
Then it becomes the imperative duty of Government to
consider what would be the effect of this sudden and
complete withdrawal of all the one and two-pound notes
in circulation through the country. On Wednesday
last, Thursday,and Friday, accounts had been constantly
and they still continue, coming in ; and what is felt al.
ready, in consequence of these measures, chews suffi-
ciently what the case would be if the same course is
persisted in and permitted to go on. Then it is quite
clear there is no remedy for this,unless gold could at once
be found (which nobody pretends could be done) in suf-
ficient quantity to fill up the vacuum—no remedy but
that which is proposed by the present measure, to wit, to
allow the Bank of England to issue 11. and 21. notes. It
was in a minor degree the case of the same panic which
had taken place in December, and to which the Bank
11. notes had been applied, and had at once effected a
cure. I believe that practical statesmen will all agree,
that in pursuing measures of public good. it is a duty
to be as tender as possible of private interests and feel-
ing; and the whole question which arises is, whether
the relaxation here granted-to private feeling is so great
es to place In danger the success of the public measure.
I contend that it is isms That the danger is not very
imminent may be infetredi froth from the practice of the
Bank in past years, and WM' the conduct of Govern-
ment. Ido not suppbse or Maintain that the Bark of
England or any other establishment will act for the
public interest, to the exclusion of its own. Ido not
look for this from the Bank ; it is no part of their
charter, and the pUblic has no right to expect it from
them; their real tie to the public is this (and it is always
"the safest and surest tie), that the interest of the public
as they are constituted, becomes collateral with their
own. Now, when we looked to the conduct of the
Bank immediately after the passing of the Bill in 1819,
'we find that, long before they were compelled to with-
draw their small notes from circulation, those notes
began slowly to be withdrawn, and at length totally
disappeared. How was this? I am compelled to
believe one of two things, and either is sufficient for
the present purpose—either that there was nothing in
'the circulation of the one and two pound notes very
profitable to the Bank, or that, from an opinion that
they were injurious to the public welfare, and not very
greatly advantageous to itielf, the Bank chose to with-
draw them ; because it was an error to talk of the 1
Bank issues, and of the Bank issues of 11. and 21. notes as
the same. I can see very clearly, that the Bank of England
might derive great be.refits from large issues, and at the
same time derive no advantage from an issue of 11.
notes. In my opinion, it cannot be for the interests of
a great company, like the Bank of England, to issue to
any extent a circulation of small notes, payable in gold
on demand. It cannot be for their interests to do so;
and the best proof of that is furnished by the fact, that
the Bank withdrew such notes from circulation before
the period limited by law. (Hear.) Indeed, so com-
pletely was that species of circulation withdrawn, that I
freely confess, when in the month of December last the
question was proposed—what was to be done to fill up
the vacuum ? I was so ignorant as to think that Bank
of England one pound notes were extinguished by law,
and Hound many wise men who had fallen into, the
same error; but I soon learned that the Bank had
at that time an unlimited power to isssue one.
pound bank notes, and that they abstained front
exercising that power for the three years preceding.
Then, before Hon. Members express these violent fears,
they ought to look back a little to precedent and prac-
Lice. I d I not say that the Bank of England had with-
drawn their one and two pound notes purely because
that House thought such a course would be beneficial
to the country ; but this I will say, and upon the facts
challenge contradiction, that it appears; plainly that
those notes are not a circulation to which the Bank is
favourable. But is there no other indication of the sin-
cerity of the Bank of England upon this subject ? Is
it not perftctly notorioto, that that establishment has
made the greatest possible efforts to diffuse a gold cir-
culation throughout the country—tiue it is, that that
gold returned to the Bank, as the dove returned to the
Ark, not being able to find a resting place elsewhere ;
but the effort was sufficient to know, that the Batik is
earnest in its endeavours to diffuse over the country ii
metallic circulation. it is perfectly true, that sir issue
of gold equal to the paper to be withdrawn frbet c,ir-
; but having ilitiessed
culation, would be necessary

`,he efforts made by the Bank upon former occasions,
to circulate a metallic currency throughout the country,
ktemasilnlite Art' tfkat,4ly: Wimp toant with perfect
'utieswatpti their.siaeopx4:ot AS qc:attoo... 'There are
thus thiee_ circumstances, wbicli are sis;iiti,c„hioitsbYri
Vetrinve any
of)
the subjecyffrot, the gradual
itinction of ttosir swiall'uoteseontpleted, long before
the period required by law ; then their abstuitaiog.from
i renewed issue,
_when the low was altered ; and finally,
their repeated efforts to diffuse a gold currency tbroug-
out the country. In December. wheo the exigencies of
the country compelled the Bank to think of resuming
the issue of small notes, they were unwilling to adopt
that course without the expreis sanction of Ministers.
There was no earerness on their part, neither was
there any want of caution on the part- of Minis-
ters. I hold in my hand a paper, which contains, if
not the very words, at least the sulsnance of the an-
swer which Ministers had -given to their.application,
and was to this effect: " If, for the purpose of meeting
the temporary exigencies created in the country, by the
withdrawing of country bank notes from circulation,
the Bank is desirous of availing itself of the, power
vested in it by law of raising one and two pound notes,
his Majesty's Government have no objection, provided
that such issues be strictly temsorary, and provided
also that the BA k will be ready to take advantge of the
Exchanges, when in our favour, in order to increase the
quai.tity of gold necessary for the resumption of a me.
tallic circulation at the stipulated period (Hear).—
Those were the opinions of his Majesty's Government
when they had not the slightest possible idea of the
Questiod being entertained in that House—(Hear).—
It is in the same principles, and with the same views
which they then expressed, that Government now
propose this measure. It a similar exigency should
arise it would, without this clause, be put out of their
power by law to adopt a similar remedy. The Hon.
and Leaf ned Gentlernan will see that by this clause,
instead of defeating the principle •of the measure, it
really takes out of the way one of the chances of its
defeat. Because if in two or three weeks, whilst that.
Bill was still in progress through Parliament, a crisis
should arise in any degree approaching to that whicb
had passed, could anything be supposed more likely to
prove fatal to the measure? If in such a crisis the Bank
should be found with only 5001. in small notes ready,
an accident which without this permissive clause
might e 'say occur, how would Ministers be taunted
for their improvidence and want of foresight lb--
Let it be some consolation to the Honourable and-

Learned Gentleman to compare the state of the law,
as it will be left with this clause added to the Bill,
with the state in which the law would have stood, it
in consequence of any such crisis as be had supposed,
the Bill had been altogether lost. For my own part,
I would infinitely rather that restrictions should not be
necessary ; and, without blaming the country bankers,
who might cettaialy have pursued a different and less
injurious course, I would infinitely rather that they
had not shewn that it. might be perilous to remain
without any such provision. After the Amendment
had been inserted, let it be the consolation of the
Honourable and Learned Gentleman to compare
the state of the law, with a view to the ac-
complishment of his object, with _the state of
'the law as it stood before this Bill was introduced.
Before it wai brought in, the Bank of England and the country
banks were without restraint or limitation foc the next seen
years.; and can any man imagine, if the measure is unfommately
thrown out after these debates, that these diseussions operating
tips an area of seven years. will not interpose ten thousand: dines
pronem Ilipediesiets to the runes resumption of cash payments,
illonll666Mrsiestiess of the proposed antendment—(klnar, bear!)
The ateeatienelehrs ib cirrAtallan of amine', Dotes after the
year, Inn, or at the end of three years, instead of at the end of
WWI years: thin, tbi literalize of that speclei tsf &total= is
eeneteally prevented. The operation Is/ the Bill is gradual, and
it is ft el up the interval of recount between the ping out of the
small country bank nom, and the tends; in of the gold, that
tb6 present amendment is introduced. I would not recommend it
to the House dkl I not, in my conscience, believe that instead of
impeding it will facilitate it by removing an obstruction ruinous to
it, and that too at the most critical period, vie. the moment at
which it was to be carried into operation-01w, bear !)
Mr. TIERNEY said, if he could be satirfied that
what the Right Hon. Gentleman anticipated would be
the effect of the amendment, he (Mr. Tierney) would
give it his sincere and hearty support; but because it,
was his perfect conviction that in 1829 the country
would be in the same difficithies as at the present rtsepi
meat, that he gave it his decided opposition. He begged'
the Right Hon. Gentleman to consider, that if there
were no alteration of the principle of the Bill, how it
happened that those Members who opposed it without
the amendment, now avowed their intention of sup-
pnrting it? How did it happen that the Hon. Member
for Newton (Mr. H. Gurney), who formerly resisted
the Bill as highly dangerous' in principle, now dis-
covered that his objections were entirely removed by
thus giving the Bank of England an unrestricted
power to issue one pound notes—(Near, hear.) There
was no doubt that paper currency was beginning to
be at a premium—that things were looking up in the
paper world, in consequence of this amendment—the
introduction of a few simple words, which altered so
materially the relative situation of the Bank of England
and country bankers, had produced a most marvellous
effect on some Honourable Gentlemen, who, a few nights
since, pronounced the measure ruinous; and now viewed
it as little short of salvation. The Right H mourable
Gentleman had stated, in more moderate terms than
he (Mr. T,) should have used, what, he feared, was too
true, that there was a determination on the part of
country bankers to throw impediments in the way of a
return to gold circulation. They acted in concert, and,
like good soldiers, had taken a hint from their coin-
manders-6.46 We ought to mutiny, and we will mutiny,"
they exclaimed; and ,what had been the effect? The
Government had been seised with a sudden fit of alarm,
because no man could or had attempted to deny that
danger to be exrecied from the proceedings of country
banks was the only ground on which the amendment
rested. His complaint, then, against the Government,
without meaning to express any thing like hostility,
was, that they had not had courage and firmness to
face this threatened danger; if they, had possessed that
degree of resolution, and had dared to front the country
bankers, he would venture to say, that in one week the
country bankers would 'have struck their colours, and
come in. The Right Hon. Gentleman had contended
that it was impossible to introduce a metallic currency
to supply the vacuum occasioned by withdrawing cowl-
try notes. (Mr. CANNING said, across the table, that
his argument war, that it could not be done instantly.)
He would tabs it suit but there, was a general under-
standing that a metallic currency would be substituted,
and tine country would return, at least gradually in this
respect, to a whti'esome state, If this Amendment were
adopted, be was satisfied that such a return was utterly
impossible. Of the Bank of EnAlandle felt it difficult
to speak without the appearance of attack.. He respected

'many of the Members of that body, but as a body he
would not tritst.the.Book of England a single step out
hitt siglseourd* info* believed that they hadleaused
all the difficulties which the coot ter iiow eaPeliancel
44 But," said. their friends, “liiesfandimitely thidy Caine
forward at last ; how liberally* t"ey isAted _not less
•than eight Millions in not more than 14 days." Very
true—the fact was not to be dispoted; but Middle Di•
rectors no interest in this issue? Whai( were the D.
.
rectors? All merchants; and if other' were in danger,
they were not less in -danger thentsoimps. 'Heed*, the
secret of their extraordinary liberskity.]..o** Moth hid
they imposed spots people in general tiVoNtitts.inbjett,
that an Hon. Friend of his, not.rematkable fOr his par.
tialiry for the Directors, had actually stepped out of his
way to move a vote of thanks to them for their disin-
terested liberality. Nothing could be more absurd or
preposterous than for the Directors to claim credit Uptxt
this score. It was like a man claiming a reward tenni
the Humane Society for saving a boy from aroviding,
and being met with the declaration—.l but it was yon
that pushed me into the water"--(l.argider.)—The
Right Hon. Gentleman had dwelt upon the expected
gap in the country circulation, which it was necessary
to fill with Bank paper; but what reason kid he to sup-
pose that country bankers in that period . would .alter
their system—that they would come to their senses, and
,contribute to the objects of Ministers—CMr. CANNING
ob,erved. across the table, that he believed they would 3
Did the Right Honourable Gentleman really believe
' [hat the mere influx of small Bank of 'England notes
would !sling them to their senses? " But supposing it
did no good, after all it can do no harm," said the
Right Honourable Gentleman. It was Very true,. that
a gradual reduction of paper currency was wanted,
and he (Mr. T.) was quite lndifferent whether it
took place in twb or three years, but .be .thoeght
the time might hwe been shorter. What',
_was
the meaning .of this Amendment, but, to *5 arm
the !Link with an immense amount of stnalliatipieik to
be poured out upon. the c .untry it any tin* tpkiit'gthey
could reap the most advantage by it.. *fle„wialcen.
winced, that every noo isseed would lour*: -the
effect of excluding the. pound sterliegvso"that It
the end of the three y. are there would be thisiddi-
.tional disadvantage to be met, that Ibtf 4viiiirable
circumstances now existing could esist no longer.
—lf he (Mr. Tierney) could persuade himself that o.ter
the lapse of three years the object wouldbettecoßiPlish-
ed—that this Amendment was to be the" lieoll add the
• d all" of the paper •systens, be would adopt ityin the
confidence that the country would then, though take,
return to a healthy metallic circulation; *Vovitple
objected to the clause on principle' he would thmt"With-
draw his opposition ; but as he was conscientiously
convinced that it would r:tard that object; that it
would make the prospect stll mare distatitilii felt
bound to resist its further progress. He asifire4 -the
Right Honourable Genileinau that he would rather '
Support than oppose the measure, if he o' old. do soupon
an hottest conviction ; and he gave him-and hi, ctiaaju-
tors credit for intending in their hearts to do.goctd ;
he lamented only that they did not possesi. more
courage and firmness—that they shrunk fronss.teropo-
rary storm, which, perhaps, might bariVifinsettilovee
even in ten diys fro n the moment he- was sperililitg:—
Be not facing the calory bankers, what 'mirro:et-dial
gave them! they now knew that they had nothing in it Initipd.
deniy to withdraw a certain petrel of their notes, an 1 tl4 filled
Ministers with new alarms. turieztorted from them tier , Costes-
Moos. He did not intend at present to gio farther bookie. such
whish be wished 1. MU r4tialiVulfl, Aispasoonately ; asid.ivitihout
any Weston otpariptoolloge I. loud naiad his eolwitiodoild aa-
*deo to talisman's*..., sf,„l ~,, ~, ty
_,.,•„.. . . , , „„ •1 , . •
Mr. T. W/LSON..cooteittlied,rthat the. cmantry leas
at tide moment muds distressed !Emma want ei convenes, and he
stated that in Yorkshire nuenfacestrinie -'who were atikable to get
choose, were obliged to pay their men in an objerimulde species
of piper. Something ought to be *eel to reinfi4V/Ibilrowtof
evil, sod if country bankers wererne a dangsmiesest ottamen, it
was the more accessary that the country aboaltlAave Stie.eic4rity
afforded by the amendment under esooldprodomp. Nu desk a
circulating medium of small motes was at plaanallraeollsarySlS the
country; and if country bankers whbilematimlegtlortimilia ohm
the due prescribed. so much the:bereft ~ ••• :1..",
Mr. GKENFELL, in allusion to what had , (Alm
from a Right Him. Gen,leman (Mr. Tieettey),' wished
to explain that when he prOposed a voted mulatto the
Bank at a meeting of the proprietors, hit.4l ito.in a
limited =neer. The vets did net include ail the alits,et the Bank.
They were, however, entitled to mime gratitude her chafe Conduct
during the panic, and on that opinion be acted. .•• ,
' Mr. Secretary PEEL said, that as the 'subject had
been so completely exhausted by his Right Hon.
Friend (Mr. Canning), he would not trouble the House
with many ob,ervaLions. Tree points on: 'lrrhich the
Right Hon. Gentleman opposite (Mr. Tierney) had
stated his opposition to the amendment, andrshe tem-
perate tone by which that opposition was chafActeri-ed,
left him (Mr. Peel) perfectly satisfied of his (Mt. Tier-
ney's) adherence to the principles upotr: which vie
measure was founded. Amongst the Hon..eseatlemen
opposite, one was opposed to the principle eft'the 'ail!,
and another resisted it on the groupd,of 64,4et.t,,:tf0t he
felt satisfied that the House would rjectAodts(trines
of both. Nothing could be more latleeious;than the
reasoning founded by the Right Hotiorables-Gt•ntle-
man (Mr. Tierney) upon an ' alleged -thotk4y;
,iis he
was pleased to call itwamougst the coostriv,l4ocers.
The country bankers were bound by no obligations to
the Government, and were free m ace at they.lheught
proper. Again, it was an equally gross misapplication
of principles to say that government *as inconsistent,
and departed from its original professices io lending
itself to the present amendment. Sorely,, on rest and
important occasions the Administration or thetotitiy.
should not hold itself in sui.la a degree orretratiainilit never
to permit its views to be modified by the akietatie4 of cir-
cumstances. To affirm that this unvarying adherence to
opinions once expressed should in alrrldisetr.ptevail,
amounted to nothing short of requiringbietC(§7nnitate
the conduct of a master of a vessel, :whe wouldmads 'lake
to steer his bark amidst the irregular and. perilous
rocks without once changing the ditection df tit rud-
der. It was not in bum-n nature to devise, any measure
so perfect as to be afterwards altogether incapable of
improvement, and it was no valid charge against his Majesty's Minis-
ter that it sbould,after considerationshappen to be in their power to
improve upon their own work. As to the asticipationa so largely
indulged l, that when the time specified was expired new difficulties
would arise, he certainly did not see the grenade on which those
anticipations were founded ; nor would he have consented to the
measure had It not been in the full understanding that the Bank
would act upon the arrangement in the true spirit in which it was
entered into by Parliament. For those reasons, and In the full ea-
' pectrien that done of the anticipated evils would orioev b0.,p00 his
cordial support to the measure.
' Mr. ELLICE was sorry to see the advantages which
they had reason to expect now in danger• of being
thrown away. He could not perceive -flow the Go-
vernment expected to be able to regulate the conduit
of the Bark. It did not appear that any Commissioner s
whatever were to be appointed: If Government per-
. 'islet! in its intentifin to urge, and-Parliament consented
Ato pass the Bill; with the ampdsoltot proposed by the
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