The Statesman.
London, England, 1819-05-13 00:00:00

011 which nor earrenry, when recolated hy a metallic
standard, ono, in other inspects, with most advan.
tar, he altiostely and perantayntly founded. list
in thole points the Committee think they ehnold love
e1e...1.1 the 1;1014 of their dot y, if they had rentarrl it
the resent 1...1.1•.. to l'ottn. mooch innr• if the,
hod tohaoittird to Parliament, any final or &KWH.

MutAyr the whole of our circulation and currency
Thal' th►orefnrth he replaced either entirely ea Its
session, fooling, or with whet degree of alteration,
perticelaty in respect of the smaller notes, she use
of which was formerly prohibited ; whether the pay-
m►nts of the Bank shall be made at their option in
bellies or in coin ; or those payments eon-
limping to he made in hellion only, the Mint shall
he opened to the Public for coining such bullion into
gold coin, with or without a seignorsge or b r ge ;
or whether, with a view to realise to the country •
writ equal In the whole value of the gold employed
as deed capital for the pupas, of circulation, an en-
deavour shill be made to confine the whole of oar
currency (except for the small payments now made
in silver) to paper only, bet to paper regulated by
convertibility into bullion ; these with the numerous
details connected with and dependant on them, are
paints upon which the Ilereee will find much useful
information in 'alines parts of the evidence contained
in the Minot's, and upon which the Committee are
satisfied that a better jedgmeat than can he formed at
',teapot, will he derived from the esperience of the
operation of the plan immediately In question.
With reapers to the decision to he taken as to the
filter* circulation of the smaller notes, the Committee
are fully sensible that all views of espediency or pro-
fit in this respect mast be combined with another
most important consideration, that of the comparative
facility with which such paper, or the coins for whirls
it is suhoiousedt may ►espectiv►ly be counterfeited.
This point is essential to the success of any measure
on this subj►ct, sad It is of great weight in the opi-
won of the Committee, as connected with the tom-
prattle degree of temptation or encouragement,
shirh any of these systems may afford to crime, and
the consequent neces►ity of frequent aid betas pu-
nishment.

Under these impressions the Committee have en.
deavourell with much anxiety to obtain infiirtnatios
as to tl.e progress and probable resoles of the en-
quiries which have lately been made, under the ao.
I thorny of his Naivety's Commission, into the means
of preventing, or rendering mach more difficult than
lat present, the forgery of Bonk paper. They have
learnt that these results an not jet sufficiently ma.
ivied to be brought with this view in • complete
shape under the consideration of Parliament; bet
they find that the very able persons whose attes-
ting, has been so bene6cially employed in the vs-
, amination of this subject, entertain sanguine ex.
pectations that the principles which they have
adopted for this ()Given will, in their applies.
lion, provide, if not a comple'e, at least a much
more effective check than has been provided by any
means yet adopted for the security of the Bank and
of the Public. IN so far as the Committee has felt It.
self competent to judge of the probable operation of
them principles, they fully partake in this hope ; and
it is winch strengthened by learning, front the testimony
of the Governor of the Bank of Ireland, that the ap-
plication even of a part of thrive priaciplea has been
found there, la a very great degree, effectual for that
purpose.
There is another point to which the Committee
think it of greet importance that Parliament should
advert. The large amount and nature of the advances
made by the Bank for the public service have been
stated, on different occasions, as opposing consider-
able obstacles to the measures which would otherwise
have been 'dilated by the Beak ; sad the plan now
recommended essentially depends upon a previous re.
diction of them. Bet the inconvenience of this mode
of habitually providing for the public esigencies, to
so great an esteot, is not merely temporary. It in.
'plats principles of considerable moment, with re-
ference to Ova relating in which Government and the
&link are thereby placed towards each other. This
system is not, however, of recent date. It bed
been acted upon to a large extent, foe a long period
of jeers before the first restriction upon the Bask.
The amount of the advances appears to base subse-
quently increased with the secceedieg embarrassmands
of the public service, end the extraordinary *tertian'
of the concluding years of the last war Naturally
produced an unprecedented extension of them. A
considerable reduction of these advances has since
been elected, and a still further diminution of than
is recommended in this Report. It will be for the
wisdom of Parliament to determine, whether, in or-
der to guard against the unobserved recourses of
this practice, some permanent regidadons ought not
to be established, attending the very sorrow ',Waist
under which the Bank was originally placed in this
respect ; but imposing some new prieciple of limits.
ties', so as oaths one band to allow the Bank such a
fire use of its capital, as might enable it (as it up.
pears t• have done previously the Bank Restriction)
tog burst either lake whole or some limited proportion
thereof, if not demanded for commercial discounts,
in the purchase of Government securities, and, on
the other, to pretest it from engaging in such par.
chases for the accommodation of Goveinment, when
its own convenience or interest did not require them,
or from entering into any engagement, impress air its.
plied, which shall prevent its bringing thus* secatitie.
freely into the market. It is Anions, that in im-
peeing any new principle of limitation, exception
must he made for cases of greet emergency, to be
stated to Pallismeut, and provided for by its express
authority. _ .

What'eser may be the decision of Parliament spool
ell or soy of the measures now in contemplation, the 1
Committee think it still be desirable to repent the
lees which prowibit the melting and expatiation of
the coin, and which enact that all bullion intended
for eaportation, shall be sworn to midst of feleign
gold or silver. The policy of these laws has loos
been held by the best 'film on the sub ject to be at
least dobiess. From the notate of the Reticle, so
portable and so easily courealed, they could hardly
be 'towed to he efficacious, 'sod experience has
abandantly proved their inefficacy. Notwithstavad-
, log the esisterwe of these la vis, the oliole, or nearly
the whale of the gold coin of this kiortiloes. sotousit-
I lim probably, I. between twenty end thirty
l lionvs bu mire, disappear's!, awl scarce') a rem-