, 1840-05-16
From The LoRaoa Spectator.


:"
committee Ito inquire into the effects pro
duccd on the circulation Of the country hy
various banking establishments issuing notes
payable on demand Mr.. Barring stated
eNerat reason. in favor of the proposed i'm.
quiry. The charter of the Bank of En-
land would expire in 1914, and would be
unwlse 10 delay inquiry into tie cxpcdiency
OF renewing it until the latest period-IGi2.
lie would not make any attack upon the
bank OF England. the joint stock banks, or the
private banks, and proposed the committee
IN Il suIiIt the reverse OF vindictive towards
them all. but thor WIS 4 very general feel
M among Intelligent persons who had given
attention 10 the subject, that several point
respecting the management of the Bank of
England and the system of banking general
iy IN this country required reconsideration
by the Legislature. lie would mention a
question OF the utmost Importance that would
come before the committee, and one of the
first points 10 which its attention ought to
he called.
rs Ia the existence of Il bank having anv
particular privileges; whether it would not be
more advisable 10 introduce the system call
ed free banking, whether, if they conceded
that Il bank ought 10 exist. suilicicn. powers
had been given 10 it for those functions
which they expected a bank to Perform
And then :-a!n on the other side there WAS
the question, whether it was advisable. al
the present moment, L" reconstruct the whole
system and have tut one bank Of issue
These were questions which would be ANITA.
ted III The committee; Ia these questions the
committee would turn It's most serious attcn.
lion. He was well aware that they must
give their consideration la this subject. but
the House would rccoilcct that the question
was forced upon them; and before Iunr they
must c"nsi Ter IT whether they would or not.
1t appeared To hin, hat in entering upon
this inquiry, they would do 50 fully dctcrnin.
ei fairly Ia conSidcr the subject and obtain
upon 1t the best information that they could.
in order that they might themselves be fully
informed. ana the public also might be gIily
informed upon it, before they were called mp
on 10 legI>lale on 4 subject IN which were
involved the interest and the security of III
most every man in the cnuntrv.
At present there WIS i disposition among
persons vino held various opinions on these
subjects. 10 discuss them calmly. With re-
Spect TO the Bank Of ireland the charter of
which was now tcrmrinable AT Il wears notice.
although, If he were To introduce a bill. it would
be on the same principle as Lord Monteagc's
Ia continue the charter 10 1871. so that the
of the charters of the Banks of En-
land and Ireland might be contcmpnraneouS.
and the policy OF renewing them be cunSid
cred togcthcr-hc wcu!d wait for the opinion
d the committee before hc introduced any
ncasures respecting the Bank Of ircIard's
l.
Mr.. Osborne suggested that the i%aGuirvt,'
extend 10 banks not iSsuin" notes as
rs banks Of issues. The operations of
which procured advances from the :
irnk Of England NJ three per cent and lent !
bank of England notes So "htaiuc, at an III .
crest OF ivc nrsiN per cent, must have = ,
l~rttc.ial c.cc, on the circulation of the ;
=
Mr.. John Fills thought he Chancellor of,
he cXcheqtcr ought rot 10 delegate ms duty ~
% ihc co!hi!itic. 50 us 10 c!udc the RESPONSE
nifty pi measure for renewing the bauk of
charter. Il
Mr. Hume considered ii essential 10 the "
sciuiucSs g! the inquiry, that the question "
neither the CURRENCY was on Il sound basis Or .
should he opcn 10 discussion in the COM =
aztec. He certainly entertained Il very dit g
opinion now from that which he had "
held on the subject of the currency H.
f this country. He observed that in France, ~
hen the circulating medium had been al e.
ost entirely metallic since 1871, there had -
zen little variation IN the exchanges. and =
uch satisfaction on the part of the people. u
1871 there had been only five pamph- =,
IS published in France OF the subject Of 4
&c currency; whereas he had been informed -,
al Mr.. Richardson of Cornhill had himself. E,
no fewer than tUO thousand pam =,
on the currency question within the
st two years and 4 half. Mr.. Hume de- If
lred himself "almost 4 convert to having "m
'thing but 4 metallic currency. ,h
Mr.. Grote expected much benefit from the -
pointment of tie committee, but he disa- =,
with Mr.. Hume as TO making the basis - |
the currency one of the subjects of inqui- No.
. Mr.. Hume's remark respecting the pam h.,
lets published in France and England did IL,
t prove the superiority Of the French cur Co'
ICY; though it showed that the French 70,
bic had been debarred from the advantage II.
many SUGGESTIONS published in England ;sI