The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-26

that the hon bsronet should attempt deprecats the
value Of the step which the government had taken
the 25th Of October 1t a step Of the most mpera.
tive necessity and he anxious to pay his respect
and express his thanks to the Government for having
taken It, Ii was not actual money that was wanted at
that time. The panic, which comparatively ground
ers sprang from another causefron the apprehension
that money, If wanted not to be obtained He had
always differed with the trainers and promoters OF the
act OF sll as to the merits Of that and
ne conceived from what had fallen from the Chancellor
OF the Eschequer that the right hon gentleman himself
convinced that it would not work we'll alone As II
very probable that the proposed committee would
sit for long time he suggested that the House should
in the meantime adopt resolution enabling the Bank
VIII authorised to do by tho Government to issue
greater number OF notes than permitted to do by tho act
oflS4i.
In the House of Lords the I'd instant,
The Marquis OF LANsDowSE proposed that a select
committee should be appointed to inquire into the
Of the recent commercial distress and to how
far 1t had been affected by the law regulating the issue
Of bank notes payable on demand; and in doing so en-
tered at considerable length into the state of the
country for period back For the last two years
circumstances had occurred to give an important lesson
of food by which large masses of the people had
been affected and also with respect to the effect pro-
dused by specua'ions carried to extent which the
capital and cir custances Of the country did not us
fy. On former occasion he had been asked whether
he thought that the act Of ls44 had not been isru
mental in producing the effects which felt but
he on the part of the Government then unable to
the question, and he the present time
He therefore was not prepared to recommend that II
should be repealed Inquiry was therefore necessary
involving the question to how far recent events
WITH nas Eus ne mot
OF the general principle Of currency the
basis Of which its convertibity into the precious
metals The noble Marquis then proceeded to state the
peculiar circumstances which occurred during the last
autumn, which calculated to produce q stringent
trial OF the measure and in doing dwet particularly
upon the large amount Of calls which had been made
for railways incr. ssing they had done from Ga 500
900 in 1928 to ESQ 400 oOc for the year 1896 while
for the first half year Of l9i7 the demand
E25770 900, and for the half year up to December
the calls for fas 600, making altogether
f63 ITO 900 tor the year 1t ridiculous to suppose
such available amount Of capital existed the
application Of which to such or other purposes
prevented by the operation OF Sir Robert Peels bill
circumstances of the pressure for the calls
railway payments had operated to produce effect
the general state Of the country. and above all by
the expenditure which required sRn
in quence CT the great national calamity
which had bsfsen the country by the hand of Provi
amount paid for foreign imported In 1896 amount
ed to many millions and during the present year during
the half year. from January to July 1t was estimated
that the charge for such purpose would be Ella 1874 600
1t would be question for the committee to determine
tue operation of those two sources Of expenditure
upon the king of tho last previous acts regarding
the bank He did not his own pa believe that the
last bank had tended to produce the state OF
disorder which had arisen in the monetary affairs of the
country The pressure from the which had ope
rated must have arisen with without the act of 544
His own opinion that the operation of the act Of
Parliament acting tn. bank, enabled the commercial
classes generally 10 serceive that course Of enterprise
had been entered upon which could not be carried out
with the available means OF the country at the
time and that therefore they had been enabled grsdu
ally to draw In the extent of their operations The
circumstances to what had been going when made
known, tended to produce something like general
panic, comb ned perhaps with what might be called
lsrtsiG. pressure to prev'n nordinate specuatiop
bu mo effects had such as to oa for the attention
and investigation Of Parliament There had been
cited In the country disposition to indulge In extensive
speculs ion far supassing what ordinary
would justify and with this view every endeavor
made 10 draw money from all possible sources.
Lord STANLEY then expressed his to the
appointment OF committee Of the House Of Lords rs
propoeed as he thought that the inquiry should be
ried on simultaneously by both houses. me Marquis
or extent Of the distress which and when ths
government called the Parliament together at that
sua period ofthe it ought to have been prepared
to forward with some measure II not to remedy,
least to paate the extent Of the distress which pre-
vailed They had been told by the noble marquis that
he should 90 into the COMMITTEES with his opinion
committed the subject IL such the case, and IL
the committee was not to provide a remedy, 1t would
have been better on the part Of the government to
have postponed tho inquiry until they hal made up
their minds the subject II probable that neither
the bank charter act, nor any other single measure
the of producing this distress Lord Stanley
avowed ths he party to supporting the carrying
OF that act in 1874, as peer in Parliament and q
COMMITTEES upon whose report 1t was founded WAS the
present Chancellor Of the Exchequer and 1t had been
supported at every stage by the noble marquis The
before they issued the letter of 25h of
October, ought to have made up their minds to
whether or not the commercial crisis followed
by the panic had been produced by the act
of Parliament II they not satisfied that 1t had
had bad effect, they ought not to have issued let
tex sanctioDing the violation Of the law. If the effect
Of Interference had been such had been described,
there could bs little doubt but that earlier ipterfer
ence would have prevented the ruin Of many houses
which might have been enabled to have avoided failure
1t was impossible for any government Of legislature to
prevent those disres.es which resulted from deficient
harves,s from speculation in railways; but much
might have been done to obviate the caamties which
occurred steps had been taken to meet the difficulties
Mt earlier period Little nothing, also, yet
known ~ to the effect of the failures on foreign
les al N not he
motion
Several other Lords addressed the House approving
the appointment of the committee after which the
ton was agreed to mem con.
On the following evening, Dec. g. Lord Lansdowne
proposed tina appointment Of number Of Peers on the
committee for nquirng into the Of commercial
distress. The following the names Of the Peers sp
pointed: The Duke OF Richmond, Earl Grey, Earl Of
Auckland, Marquis OF Salisbury, Earl Of ABhburtop,
Lord Drougham Earl Of Ellenborough Ear st Germans,
Lord Gienely, Lord Beaumont Earl Granville. Lord
Ardrossan, Lord Einnaird, Lord Wharnciie, Duke Of
Monrosc, Marquis of Clsnricarde Lord Stanley Lord
Campbell Lord Monteagle, Marquis Of Lsnsdowne
The motion after a short discussion, agreed to-
The Duke Of RICHMOND then moved for some papers
respecting the condition Of Ireland and in doing
pressed hope that the government, IL its proposed
measure of coercion failed would not hestste In de-
handing further powers from the legislature He cared
not how great the powers granted so long as
trusted to the present Lord Lieutenant.
The Marquis Of LANsDowNE assured the house that
the government would have no hesitation In doing so II
necessary.
Their lordshirs then adjourned
In the HousE OF COMMONS,
The adjourned debate on commercial distress then
resumed by
The Marquis OF GRANNY, who observed that, whatever
hopes thu commercial classes might have entertained
from the letter Of the 10th Of October they had been
blasted by the speech OF the Chancellor OF the Eyche
quer One would have thought from the tenor of that
speech that tbs act Of l944 had ben in satisfactory
operation for upwards Of quarter Of century, where
1t of very recent birn and had already during
its brief fully realized all the predt tons Of liz
opponents was it's nnexibity and It's denial OF dis
oreton To the directors that impaired to go mschie
vous tendency The bank not empower, by the
70 raise the rate Of interest at the proper time in order
10 check and avert its ruinous
qnences. The Chancellor Of the ExcheQuer, in exone
rating the bank act from all share in originating
sent difficulties had improperly cast the whole blame
the ion Of from the ordinary purposes
The construction ofraiwsys and In
for foreign But he Lord Grenby) denied that
tai spent In this country sbsracted from the ordinary
channels Of circulation which met the allegation for
the railways concerned As to the 33 millions paid
away for he regretted say that to all ntents
purposes that enormous amount was rretrievaby
the first fruits Of free-trade But he was ready Ia
prove from the speech OF the Chancellor OF the fx