The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-06
THE NEW SYSTEM OF CURRENCY
PROPOSED BY
SIR RIO BERT PEEL
IN THE
British House of Commons.
MAY q, lS44.

IN THE
British House of Commons.
MAY o, ls44.
SIR r. PEEL then rose and spoke as follows.--
Sir, there are occasionally some questions OF such
vast and manifest importance, and that prefer such
a claim, or should rather say such demand upon
the attention of this house, that all rhetorical pre-
faces, or dllating the value of them, or enioin-
ing the duty OF patient and attentive consdera
less | shall, therefore, proceed at once to
call the attention Of this committee to mat
ter which enters into every transaction OF which
money forms an Ingredient. There is no contract,
public or private-no engagements, national or in
dividua the enterprises OF commences the profits OF
trade; the arrangements 10 be made IN all the domes-
sactions of the highest amount, and those OF the
lowest the payment OF the national debt the pro-
vision for the national expenditure on the one
hand, and the command which the coin OF the
smallest denomination has over the necessarles OF
life-all are affected by the decision 10 which we
may come on that great question which am about
TO submit to the consideration OF this house SIR,
the circumstances under which this duty imposed
upon me arises, are shortly these In the year
1888 an act of parliament passed which continued
TO the Bank of England certain privileges until the
year 1856; and alter the year 1866 until parliament
should determine to give one years notice to the
Bank OF it's determination to revise the charter.
Before, however, the expiration OF the full period
of21 years-before the arrival of that term OF 1855
there was reserved to parliament the power, after
the lapse of ten years. by notice to be given to the
Bank OF revising the charter and re- considering the
whole subject. That period, sir. will arrive In
August next. After August next. it will be com
petent for this house, by notice given through the
Speaker, to signify to the Bank hat, within six
months next following, this house will reconsider
the charter of the Bank of England. But that
opportunity permitted to 60 BY, the charter OF
the Bank and all the privileges which 1t conters
will endure necessarily endure, until the year 1855,
(hear, hear.) Sir, In the present state OF this
country in the present state Of the currency, after
the inquiries which have been Instituted, alter the
degree to which public attention has been called to
this subject, her Majestys government feel 1t to be
their duty to avail themselves OF the opportunity thus
given them by law, and to submit their vlewstop r
lament upon the subject. They are OF opinion that
inquiry has been exhausted; that all the information
which is essential to the formation Of satisfactory
Judgment has been acquired; they believe that they
hould be abandoning their duty il they had not
undertaken maturely TO consider this subject, and II
they did not now undertake. on their responsibility
to submit to the consideration Of parliament, AT
once and without protracted inquiry, the measures
which in their opinion 1t is desirable to adopt <hear,
hear). Sir, am perfectly, satisfied that the men,
bers OF this house, rising superior to all party con-
sderations and TO all private interests, will consider
it their duty to apply their deliberate and impartial
consideration to this great subject. ! have that
confidence in the House of Commons, from past
experience, OF their superiority to mere party views
to personal interests, when matters OF such great
importance come under consideration, that | feel
convinced that that will be the course they will
pursue (hear, hear). ask, then, to night for no
decision; in fact would deprecate the delivery Of
any positive opinion. ask you to listen to the pro,
posal of the government, to hear the evidence and
| the arguments by which they support ito read
and consider the resolutions which shamove only
pro forma--and after having deliberated maturely
upon them, then TO come TO the discussion and pro-
nounce your final judgment (hear, hear. Sir, am
| not shaken in the confidence repose III the house
| by the publications which have seen inviting the
/ L hold
in my hand the resolutions adopted at meeting OF
the general committee of private country bankers,
held the 18th Of April last. find that they re-
solved :" that the refusal of government to give in
formation on the subject of their measure concern
ing banks of Issue naturally leads to the conclusion
that 1t IL their intention to propose some measure
affecting country banks generally and this meeting
consider it most probable that 1t relates to the
/ local circulation of the kingdom" Then they
resolve " that under these circumstances 1t is
most desirable that all banks OF issue, whether pri
any alteration in the local circulation Of bankers
or in the conditions on which 1t ID now allowed by
law, and that the several ontstock banks OF issue
throughout the United Kingdom be invited to CO
opposition" The third resolution agreed Il
is, chat all bankers be requested, as tal
as possible, 10 bring the question fully unde
the consideration of all members of parliamen
| with whom they may be acquainted or connected
and endeavor to induce them to oppose any sucl
alteration In the local circulation OF the kingdom
! Sir, complain not OF those resolutions; com
plain not at least of the bankers inviting members
Of parliament to attend here and to consider this
subject but do hope that members OF parliamen
will resist the subsequent appeal, and that they vii
| not come down here determined to oppose any al
| eration In the circulation Cloud cheers) before
they have maturely considered the proposals of the
government CONTINUED cheers). ask you, then
to maturely consider the great principles on which
an alteration of the currency must depend. Are
you so satisfied with the existing state OF things
you convinced that II IS utterly impossible II
any particular to suggest any alteration In the exist
| ing laws, that you will come down here, before
hearing the discussion of this subject, prepared tc
offer an insuperabIe obstacle by previous concer
and understanding to any alteration 10 the exstini
lava Sir, know it to be impossible (cheers).
hold in my hand the evidence which should make
it impossible that any such previous compact anc
understanding, if entered into, could be carret
into effect My immediate proposition appears Z
relate to banking concerns, and in particular 10 tn
issue OF PROMISE notes. Considering that year
have now elapsed since this subject was brought un
der consideration, hope shall be excused If d.
principles which, a superficial view, appear Il
| determine the issue OF prom'ssory notes hope
| shall be allowed to go deeper into the principle.
which govern this great question (hear, hear).
cannot discuss here the principles upon which we
should establish the engagement TO pay certain
definite value, unless we are agreed upon the prn
cpies as to what constitutes the measure OF value
IN this country (hear hear). That Is at the iound
alton OF the whole OF this subject. 1t Is impossible
10 raise any supers,ructure merely regarding the
circulation of paper credit and paper currency un
less we first consider the principles which deter.
mine the value Of that of which paper is merely the
representative, and it is impossible that we can
come to common agreement as TO the issue oil
paper, unless we are agreed as to certain great
principles relating TO the measure of value and the
medium of exchange (hear, hear. Now, sir,
very much fear that there is not that common
agreement as to those other and greater principles
to which allude. am afraid that there is not a
universal agreement as to what, in this country, is
the standard, and what really constitutes the mea-
sure of value. Sir, invite discussion upon that
| first and preliminary questionable foundation OF
| all the rest | want to ask what has been the law
and Practice of this country as 20 the measure OF
value What is that which determines all con-
tracts The denomination of value is pound
What is pound and what is the engagement to
pay pound (hear, hear. Unless you are agreed