The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-11


jont-stock banks shall be established there, except
alter going through the process OF registration and
subscribing TO such general conditions the gov
erument may be disposed to impose for the purpose
of improving the system OF jolnt-stock banks. do
not purpose In the present year 10 extend the prl
cple OF limitation OF issue to Ireland and Scotland.
In Scotland, believe, the amount OF circulation
- diminishing rather than increasing; and do not
think there Is any danger OF an immediate increase
OF notes, and therefore only propose 10 apply these
two principles To Ireland and Scotland al present,
namey-th no bank OF issue shall be constituted
either OF those countries and that no Joint STOCK
banking company shall be established except upon !
APPLICATION TO the government, and on the observ-
ance of certain conditions he case of Ireland
IS peculiar one, aud the privileges Of the Bank ii
Ireland fer IN some respects from the privileges
il every consideration, and feel it due to that coun.
try and 10 Scotland To make this announcement OF
our principles and the mode in which they shall APP
ply. do not wish 10 say word about small notes,
calculated to raise any alarm ! only propose 10
establish those great leading principles, and doubt
whe ther we shall not be likely TO effect friendly
understanding by mature consideration. bu' 90
not want 10 create any unnecessary dliilcul'es or
10 raise about me storm which should be unable
to allsy (hear, and laughter) THIS is the way 10
succeed IN legislation hope, In advocating 'hrse
made myself perfectly ineligible, and That have
clearly explained the mode IN which we propose 10
.xecue hem II nave done so | AIN sure The
house will not require from me an, apology; IL
may, y. rhaps, now be desirable that | should place
before the tee, in Jew words, general
recapitulation OF my lnte ntion. IL consists IN
the retention by HE Bank OF ngland OF It's pre-
sent PRIV lege, restricung the privilege OF Issue
within circle round the metropolis OF which
sixty five miles is the radius to the Bank OF England
We shall require complete separations ol accounts,
constituting two different departments, one OF Is
| sue, the other Of banking-hr business OF banking
be governed by pefie c,y dlerent principles from
the business OF issue, there being no power To issue
| single note IN The banking department txcep 1t
| lnent. We propose that the Issue shall take place
upon IA 600, 0OW upon security, and the remainder
upon bullion, II being competent to the banking de-
partment to claim from the issuing department as
many notes above l4,000,00M as they may require,
the public having the right 10 require notes IN eX-
change Tor gold and to demand gold III exchange
| for notes. We propose that there should be
| weekly publication OF the whole OF the iransac-
tons Of the Bank. both with respect 10 bullion aud
notes. with respect to every Transaction either IN
| the issuing department or the banking department,
| so that every merchant, every dealer, may be ea-
bed 10 regulate his transactions according to MS
knowledge OF the state OF these returns. We pro-
pose then with respect to other banks generally that
| no new bank of issue shall be established IN any
part of the United Kingdom. We propose that no
new joint-stock bank shall be hereafter established
except under certain restrictions, the adoption OF
certain forms, the subscription to certain conditions
the auditing of accounts, and other matters,
giving all the securities that legislation can
give for the proper conduct OF concerns Of that
magnitude. Then we propose that existing banks
being now banks OF issue, actually exercising the
powers of issue, shall continue have 1t during
the existence OF this law, provided that in
whatever they exceed a certain definite amount,
which amount is TO be determined in the case OF
each bank by reference to the documents which
give US the average amount OF Issue Tor preceding
period. We propose that, should bank Tor a time
cease to exercise s privilege, that that bank shall
not afterwards resume It. We propose that me
their partners We propose In the case OF banks q
issue, whether such banks be public, Jointstock, OF
private, that they shall make as IN the case with
the Bank OF England, weekly publicailons OF the
! amount of their issues. / think that the Bank .,
England, knowing the amount of such Issues, Will
be able to regulate its atialrs and 10 contract the
currency, if such contraction should be nece s5aIy
at an earlier period than il could otherwise do
believe have row completed the task which
undertook, and that ! nave gwen a full out
line of the measure which government intends IL
propose, and OF the principles upon which it is
! founded. tHear, hear) As stated before,
shall ask for vote Of opinion, and hope
that there will be no expression OF individual OPT
mon on the present occasions but that the house
| will maturely consider the whole of this great anc
comprehensive scheme in all its parts with its pro-
} bable bearing on the public interest, before pro-
nouncing either for or against 1t. In the course Of
tomorrow | shall unreservedly lay before the
house the correspondence which has taken place
between the Bank Of England and the government
| on the subject. | think II will afford complete
explanation OF the terms upon which the presen
prop sails founded, and feel certain that the
possession Of it is of the greatest importance to-
| wards the forming a sound judgment 18th regard
TO he whole OF the question. | cannot deny, !
the house shall assent to the principle of this
! sure, and shall adopt its leading details, canno,
jeny that il WILDE ton source OF great personal
qualification, II, after the lapse OF nearly quarter
Of century since proposed in 1919, that grea,
measure which ] do trust has for ever abolished
The system OF an inconvertible paper currency
(cheers)-l Say that cannot deny that personally
will be most gratifying TO me il ], as the organ
of government, shall be successful IN inducing the
r house to assent le measure which IS calculated
! 10 ensure the stability Of that system of banking
most conducive to the interests OF the public. But
can at the same time say with confidence thai
, my qualification will be Of higher and purcr kind
Than any mere personal feeling. When cen,em-
late the sullerlngs which this country has endured
within the last ~ years-in 1876 In 1884, and again
| in lS30-when see the dangers that have been
INCUR. d and the risks that have been run when
see that the Bank Of England was compelled, al
one period, to have recourse for assistance 10 a
| 'oreign establishment (hear, hear)-when regaro
the fluctuations that have taken place in the cur
renew running private merchants and defeating
the calculations OF commercial enterprise-whe hen
, [ look to the failures which have occurred OF
lsnt-stock as well as OF private banks, and when
| see the amount of the dividends made, although
admit that those dividends cannot be taken as d
tes, of the sufrrngs which the failures have occs
stoned, yet when | regard the slow and tedious
, process BY which the creditor may recover the
amount, and when remember that the origina
propretors of those G10 shares were persons in the
humblest condition ct life, who bad been Induced
by a seeming prosperity, to enter INTO these spec
arions-when rehr ct on these things, then nderd
shall be gratfed if now prevail on the
house to adopt measure which will give stead.
ness to monetary transacons-which VIII give
confidence in the medium OF exchange--whch
will diminish the number of FRAUDULENT and gambling
apecuations--and which will ensure it's Just reward
TO commercial enterprise conducted with honesty
and prudence CThe right honorable baronet re-
4nmrd his seat amid loud cheers from all parts OF
the house)
The following resolutions were then read by the
Chairman, Mr. Green. and agreed to pro forma -
al That it Is expedient to continue TO the Bank Of
England for time be limited certain Of the privileges
now by law vested in that corporation subject to such
conditions may be provided by any act to be passed for
that purpose.
"a That il IL expcdient provide by law that the Bank
of gland should be divided into two
departments-one exclusively confined to the issue and
the conduct of banking