Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1816-07-06
The Bank of England.

place IN the British house oc commons ON thu
tirst OF May on motion of Mr. Horner for the
Ppointment of select committee to enquire in
to the state of the Bank Of England We are ne.
cessarily compelled to content ourselves will,
some interesting extracts, promising that it was
| proposed to continue for Two years longer the
restriction on cash payments originally intended
TO expire IA July. The following extract from
Mr.. Hornsr's speech proves the real cause OF the
restriction just alluded to. There is an actual
pact between the Treasury and the bank--a pact
advantageous To both but detrimental to the
pubic
Said Mr.. lIorner-'s the members Of that
House had been told year after year, till
their gravity could no longer bear it, that
the restriction of their payments in cash.
was measure Of conpulsion quite adverse
to their system and wishes; and that to-
pay their notes in gold or silver, was all
they desired. Ii this restriction had beeu
a measure of conpulsion towards the bank
never had resistance been more meek.
The members of the corporation had GER
| tainly shown SUBMISSION, aud ali the pas
| slve Sraces vi iortltude III maa.ier never
surpassed. He should, therefore, take
leave, hencesorward, to think that tnis
corporation, whatever were their protesta-
tons. we're perfectly content to take their
enormous and unwarraatabie profits, which
| arose from the restriction on their pay
| ments, and the other measures Connected
with 1t because thence had resulted the
seryitudc OF the government to the bank.
lie should not then 80 into the question OF
the enormous profits which had De en- made
oy the bank, because that subject had been
already discussed, aud through the state
ment vi his honorable friend { Mr.. Gren-
Ieli) there was on their journals most lu-
rnin0us and lucontrovertiJie statement of
such rapacity on the part OF great corpu-
ration, and such facility on the part of a
government, as was without example in
the history oil European finance. As to his
| rig':t honorable friend fthe Chancellor of
the Exchequer) he would do him the JUS
tlce To say, that he did not believe he had
| any system OF notions on the subject. If
without Inconvenience he could revert to
thu old system, his right honorable friend
would be as willing to do il as not--but he
thought 1t much more easy ana convenient
| To 90 on in his old course, and to rub over
this year and the next, though the couGtry
might pay highly for it. This measure nj
renewing the restriction FOR two years, vas
| intimately connected with the financial ia
| cilities which were to be Afforded the go
ver3ment by the bank. He knew any su 4,
connection wOull be disclancd ;but with
out putting the Chancellor of the Exche-
| quer under the dsagreeabIe necessity of
again denying this connection, he Mr.. II y
slould take the liberty of forming his own
! opinion OH the subject. He would put II
to any man vino looked at the baak proceed
ings--at what passed III that House, and
| ctata ,t ,l,okl l.. IL
believe that there was not connection.
not only i'll point of time, but in purpose
| aye, and in contract between the advance
to government, and the renewal of the res
| friction for two years !? Hear, hear !)-FIe
| had observed by the accounts of the Bank
| proceedings in the early part of the year,
that the first notice OF the govern
ment to propose the renewal Of the restric-
| ton had oeen given not in Parliament, but
at the bank meetings. (hear, hear, hear y
When the second bargain was effected
between the bank and the government, and
the estriction was introduced, a rise took
place in the price ofbank stock, to the a.
mount, he believed of near 19 per cent.
Was it mt extraordinary, that the most ig-
norant buyer of bank stuck should be aware
| that this bill was an advantage to that spe-
| cics OF property not to be missed ?"
The subjolnei reasons were used by MIR. Va
sittart, the Chancellor ofjhe Exchequer in favor
| of the proposed continuance of the restriction
on cash payments. He said
8: To revert to preparations lie felt tina
such provisions were intended as would
serve to protect the bank or the country
from any shock upon the resumption of
cash payments. No thinking man could
deem it practicable that cash payments
should be Immediately resumed, aud the
only question then was as to time. It
would be recolected that resolution was
adopted which he had the honor to propose
upon the discussion of The Report of the
bullion Ommitteee--namely, that bank
| notes were equal to cash for all legal pur-
poses, and whatever difference of opinion
might then have been urged, no difference
whatever could exist at present, that a
bank note was equal to cash for every pur-
pose in tl,is country, W lie in other coun-
tries these notes bore premium. Thus
all the prophecies which the House had
heard from the other side, were complete
y falsi6ed, while the opinions which he
took occasion to advance, were fully iusti-
fed. Among those he maintained, that the
extended circulation of bank notes was not
the cause ofthe rise ofprices, but the natural
effect of the increased activity Of trade
which necessarily called for an increased
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