The Statesman.
London, England, 1818-04-21 00:00:00

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annihilate all Notes of Country Banks above 61.
this plan must answer their purpose; for no man
would he willing to repose inch confidence in a stig-
matised Bank, as to take any other Notes than
those founded on the security prescribed by Par 7
liament. No man could fail to see that this plin
had solely in view to forward the interests of the
Beek of England, to which the *bole counteri
was to be secrificed. He had heard of its having silver being 44. lehmelqe mime ttertuttrittes;
heen eirmeseliare or other said, with respect to • pro. whole of the silver Vieidd ditsiiiireirlilies madders).
posed plan, detailed
_its the Newspapers, of Wang liatisatila was• -fie
Stock. notes, that it was impossible for any man who silver currency. is general circhlatianW it vadrifent
teflected a inofilfte 44
_the subject, to
_countenance Mackin( towbar it ought to have been. The
them in the smallest degree. The Noble Earl (if we coin id circehdies were positively so many coasters.
Understood him correctly) *Waved, that' this Plea II tie Bank Directrirs had really seriously conies,-
would be infinitely preferable to subjecting Country •plited payment in cash, their conduct would have
Bathers to this sort of indignity—to (Alin this Weis very different from what itreallf was. It wee
stigma on them. There was no Stockholder who Impossible, under the present Mint Regulations, that
chose to take out a licence, by paying thirty pounds, the Bank could make payments in cash. They could
who would not prefer Steck-Dotes to the proposed not go on—they most 'top payment. This most be
systeM of deposit, for on those Notes he would be evident from a condideration of the state of exchanges
receiving interest from Government, and intervit ,between this and other countries down to the end of
'from the Public, and thus making double profit, December last.
whereas in the other case, he could only receive He would take the exchanges with Paris, from
from the Public; it was necessary to deposit 1601. in their being the most steady. Taking, then, the
Stock to issue lOW. lit Notes. Much as hedisapproved number of grains of pure gold in the guinea, the
of the present state of nor Currency, the remedy number of grains of pore silver in the silver issued
now proposed by Government was of so suspicious a under the old, and the silver issued ender the new
nature, that it was the imperious duty of their Lord. standard, and the number of grains of pure gold in
ships to hesitate before giving it the sanction of their the coin issued under the late Regulations of the
approbation. They ought not to make this great Mint, be had enquired what was the silver par of ex-
ebange in the cornsy of the country, without at change, end what was the sum in French gold cola
least carefully enquiring before band into the subject. that contained accurately the same number of grits
• Every One of their Lordships most know the result of pore gold that was contained in oar Sovereign.
of the determination of the Hank of England to pay The result of this enquiry was, that he found the
in cash all the 21. and 11. Notes issued before Jan., silver par of cubing', that is, the quantity Of ,
' 1817. He would ask if the circelation of a canatry French coin that *obtained accurately the same nem-
could be said to be is a salutary state, whoa sipeee bet of grains of pere silver that was contained in the
Notes were sold at a premium of two per reet.?— *mown of our new silver coin, which was equal to a
'Was that a situation of the Bank of England paper, Sovereign, was 23 francs 16 cents. On the other
in which Parliament ought to refuse all enquiry 1— band the sum of French money that contained the
How came it that these ;Notes were at a premien of same umber of grains that was contained in our So-
Ittio per cent. ?—lt was from no-other other &cent- vereign was 25 francs 21 Cents. In December last
"stance than this. that these Notes were payable hi the exchanges witb Paris stood at 24 francs 40 cents.
gold on demand. For these Notes the Bank ad. and as the par of gold was 25 francs 21 cents, it was
•venced two and a half millions in gold ; and whet evident that no person would take 24 francs. 40cents.
had become of these two and a half millions ?—They she rot Sovereign could get 254'francs 21 cents.—
bad vanished from circulation—and he believed there The difference made a pendant u 0 31. 41. sd. on the
was not one of their Lordships who did not in his con- exportation of our gold coin. On the other hand
science believe that they hadoot also vanished from the there was a still greater profit on the importation in.
country. The Noble Lord opposite (Liverpool) and to this country of silver. Twenty-three francs 16
himself, were both agreed that in • salutary state of cents. were sufficient to get all the silver in the pound
the circulation of ta country, paper should go to the sterling, instead of 24 francs 40 cents. The premium
whole event that paper would voluntarily go, car- on importing silver amounted therefore to 51. 3s. 3d.
• need by th 6 circumstance of being liable to be paid sterling per cent. The whole profit, therefore, to
on demand. What was the nature of the paper cir. be received in taking gold out of the country, and
culotion, which it was intended that we should have ? importingsilver into the country, was in all 81.71.8 d.
ft was inteded that we should, have four descriptions per cent. To this doctrine he knew it might be ob.
hf paper. A Bonk of England Paper, for which the jested, that he had overlooked ell the criminal laws
Directors of the Bank hail made themselves liable to prohibiting the eaportatiou of the coin of the realm,
pay cash on demand. A Bank of England Paper, and. the importation of money as the coin of the.
not liable to be paid on demand. A paper circulating realm, which was not in reality such. Bet where,
On the security of deposits of Stock and &de- the interest of mankind was concerned it was ridia
quer Bills: • and a paper circulating without any coleus to take into consideration the option of the'
security. Such a circulation as this it was re- law, particelarly in cases where detection was almost
served for the Noble Lord and his colleagues impossible. There was hardly any thing which could
to invent: It was obvious that a paper of four dif- be more like than the silver coin manufactured on the
ferent descriptions of character, must differ also in other side of the wirer was to the silver coin of our
Wee. Bet there was no man who knew any thing own Mint. Till such time as we corrected our moue-
of she subject that did not know that a paper of four tart' system, this state of things would go no, The
different qualities and four different values, could conduct of the Bank proved to him that therfnever
bbl circulate together in the same country. If any seriously meant to pay in cash, because there were
east doUbted the troth of this proposition, the facts among the Bank Directors men too well acquainted
Stated iu the work of the father of the Noble Lord with affairs of this nature, not to know what would
apposite would remove his doubts. But the Noble be the effect of a return to cash payments under the
Earl opposite, instead of proposing a paper circula- present system. If they really had contemplated a
don as corrected by. liability to he paid in cash, had return to cash payment', they would have come
iistroduced a paper circulation hf a description en- forward and have demanded a repeal,of the existing
tirely new, and had adopted a system of manage law with respect to our coinage. If our sliver for.
svhith would resider a return to cash payments ins- merle, from being 4d. in value above the guinea, dies
possible. The Noble Lord had carried on his coin. appeased from circulation, how was it possible that
age, not on the old system, bet en an entirely new phi of 104 d. in value above silver should remain in
system of his own—a system entirely in opposition rirc .irirson ?He (lid not desire them to believe these
to the opinions of Locke, Hurls, end every aloha. things on his authority ; he desired them to reflect en
illy of credit. He took the liberty of telling the the authorities which he had cited ; to reflect on the
Noble Lord some time ago that the system on which situation of the country. The Noble Lord opposite
he Ins proceeding was wrong from the foundation, hail acknowledged that a paper circulation was in a
and teat as long as two metals were allowed to to a salutary state when its value was fixed by being pay-
standard, we could not have • correct monetary sys. able on demand. But nothing could be done, while
tem, as the value of the metals charged with respect our coinage remained on its present footing—while
to each other. He had recommended to the Noble we had a gold coin without a Seigniorage, and a ail-
Lord, that as silver was the standard which was ver coin with a Seigniorage, a gold coin 10fd. more
Adopted_ in every country of Europe but this, silver valuable than the silver coin of real value; while we
ought also to be adopted es a standard by us. But, had 'a silver toils at 6a. Bd. the ounce, and another at
according to the Noble Lord, it was necessary that 71. 3d. the ounce; when, in short, every thing in
we should have a more valuable standard, because nor monetary system was in a most aloodutary state,
(though silver bight answer well enough for nations They had pledged themselves that the Bank should
of which the transactions were more limited) it pay in cash in one year, and they hail broken this
would not suit with the magnitude of the transactions solemn pledge. Surely, under such circumstances,
oT this country. Bet the reasoniag of the Noble they isles hound to go into a full enquiry into Ibis
Lord was not less absurd, than if he had said, that be- subject, which was of so match importonie to *
c'ause we were the greatest manufacturing country interests of thp country. The Noble Eatl coucleded
in bane), it was necessary that we should have • with moving the. uppelitesset ei 4 Coleleitter,
yard 'Mended beyond ths(of StAter nations, in pro- eequire into Ws present state of the Metallicand
portion to the.quantity of sanuf•ctures. Coin Paper Currency of, the United4(ingdoin.
was advantageous to • censalry, as it acted as a The Earl of LIVERPOOL, swith all reasonable
moistere of sable; and the cheaper the instrument deference faith* judgment of the Noble FAT!, oil a
by which that purpose could be effected, the greater sibject to which he bad devoted so much labour,
the idnatage to a country. Heioateoded that the oast still say, that he thought his reasonings far
greater the riches of a country wee, the rnon undoes, froge•conclasive. He bad heard the Noble Earl
be-
it ought to be to have "sir as a standard. I. Mies- , •Itie_with a mission of doubts, but follow up this
• pace to gold. They would have a circulation ha the aratirse, with a speech as replete with dogmatism
greatest state of perfection, when as much as posit- as any be had ever heard.—[Hear!]—He (Lord L.)
hie of it was paper that was corrected is vales by a 'agreed filly with the Noble Earl, that the best curs
Metallic Cerreucy—Whether that Metallic Currency many was apaper currency, payable on demand in
wee of a high orlowvaleedlnetal,the 'effect oaths pa. specie;. add whatever iesinostions to the contrary
per was the same, as they'eqeally gave a certainty to usi#t have fallen from the Noble Earl (certainly in
the value of the paper. The greatest possible en- a forlibitenterYconfidently,
way) he asserted most
touragegnent ought to be given to tiwit metal by which 'anti be soled appealto those who knew his opinions,
the circulation citadel be asodected in the cheapest his inmost thoughts On the subject, that no onslooked
wanner possible. Was it sloe more troeblesosne to more enxioslythan himself to the resumption of
Make payments iu•srleer theta in geld, and did not cash, mown; 'bat be agreed to dm measure of
this Additional trouble give I greater encouragement Restriction with a strong feeling of regret for its as.
to' paper ? When they siw the 2,500,0001. issued its easily. He should not then enter into the question
Sovereigns by, the Bank dinkiest from the coita of one standard metal, which the Noble Earl had
of what advantage could it be to dm People that the agitated in the coil's of. his speech • be (Lord L.)
staedard was changed from a lower.toa higher 'metal? had no reasons oto eller the opinion given by him on
It appeared that four species of paper were to dna- the subject three yeses ago. Gold was at all times a
• latoin the same period. It might be peeper to coos standard itt fact, sad was imperceptibly made,
side! what well the situation of our Metallic Cur- standard in law. The one was as liable to escorts.
rfncy. We had a gold coin entirely without a Seig. tiou es thoother, with only this difference—that oil-
eiersee—Wsliver coin for the first time for centuries ' ver was exported in bullies. and gold in coin. No
with a Seigniorage. We had till the sth July a silver one timid feel, or should feel, more respect than him-
currency at 6s. Bd. the ounce; and we bad in Ireland self, for theAutbority of that respectable person (the
a silver currency at 7s. 3(1. ass ounce. Oar currency ' lati Lord Lirertool), sad be knew it to have been his