The Statesman.
London, England, 1821-03-20 00:00:00

B.tNK C PAYMENTS A(" N.

On the motion of the CHANCELLOR of tlae EX-
CHEQUER, the House resolved itself into s Com-
mittee on these

The Right lion. llentleman stated, that by the Bill
of 1819, the Bank ot. England were entitled, at their
option, to issue Cold Coin on the Ist of May, 1822,
and were bound to resume Cash payments on the let
of May 1823. On that day the Bank of England
would become bound to give current coin in payment
of their notes. The only alteration which it was his
intention to propose in the Act was this: by the Bill
of 1419, the Bank hail not the power of making pay-
ments in cash previous to the Ist of .lay, 1922. lie
would propose to take off that restriction, and to five
the Bank the power of issuing gold coin in payment
of any demand. The House wonlil see that his pro-
position amounted to this—to enable the Bank to do
that nosy, which by the Act of 1519 they would he
enabled to dii in May, 1822. The Right !lon. tien-
tleman said, that he looked upon the measure s% hick
he now proposed as affording a more easy and gradual
preparation for the liiial resumption of cash paymenti.
But it was not intended by that measure to restrict
the Bank of Englaoil as to the circulation of a single
pound note—that wits to be left to the sole discretion
of the Bank. The Right Ilou. Gentleman next i
observed, that by the drain which was made in Eng-
land
on other countries for the precious metals (in
order to enable the Country to resume Cash Pay- •
ments) an effect was produced unfavourable to i
Co ttttt icree—berause that drain rendered the Oren- i
;alien of other countries more restricted. Instead of
the productions of Foreign countries, large qmintitiesof '
Bullion had been lately imported as so now!' merchan-,
(lite in exchange for our produce. The Right liononr- i
able Gentleman next said, that it would he seen by the
Accounts on the Table of the House, that the Bank had
carried into execution the suggestions made by the lout- 1
mittees of both !louses in the year 1t419. In June,
1819, the circulation of the Batik amounted to
25,600,000/. In the half year ensuing, it nits reduced
to 24,7011,01 Mi making a difference of 809,000/. In
June following, it was reduced to 24,0e0,000i. with the
exception of a fraction. Thus it appeared, that the
Bank had in one year withdrawn nearly two millionsi
from circulation. At the time when the Committers
made that suggestion, they were too wise to make any
peremptory regulation upon the subject. The circula-
tion at present was far from being eh:indent; it might.
indeed, be true that the circulation of country paper had
diminished in a greater amount than the circulation of
the Bank, but he thonglo that the measure now in con-
-1 temptation would have the effect of diminishing its eir-i
I ciliation to the full extent, as much as the country was
diminished. The object which the Parliament flail in
view, and which the measure of Isl 9 was intended to
carry into execution, was. be contended, realized as far
as it had gone, a matter which afforded room for con-
gratulation. The simple object of his Bill was to en-
able the Bank to issue coin at any extent they might
wish, for the accommodation of the public. The !louse
would recollect, that it hail been agreed on that the
Bank should be paid ten millions before it should be
called upon to sane gold. Those instalments hail been
regularly paid by Governmeut to the Bank; he was
happy to sae. that the last instalment would be paid on
1
the sth of April. or shortly after. Titus the whole sum
of ten millions would be liquidated, and liquidated in
a manner which put less restriction on circulation,
I and which created less of public inconvenience than
he had foreseen, or than the country could have hoped for.
There was another consideration connected with the
subject, and one certainly of great importance; he al-
luded to the inquiry far the prevention of forgery.
Those inquiries did not lead to the wished-for result :
tint be yet hoped, that if not altogether successful in
producing an inimita!de note. yet that a noir would
be produced which would be far less liable to hilita.
tion than the note nun' in circulation. There was
lone most effectual way of putting an end to the crime
: of forgery, namely, for the Bank to rut phi in cirri'-
: lation instead of small notes. lie knew that if it
should be found necessary to put notes of one pound
lin circulation at all, they would be on a more lin-
proved principle, though it might not he possible to
I snake them inimitable. He would now beg to state
1 more fully the ri utp!e operation of thy measure be