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

fdence In the principles which regulated our cur
rency In respect his expectations as regarded the
issues by private banks No Bank bill could possibly
check speculation The object Of the promoters OF
the Act Of isl4 was TO prevent the excitement
caused by issues to be superadded any other
elements which might from time to time pervade the
commercial world He did not take the same gloomy
view of the railways rome incliHed to do al
though he admitted that they had been done but
he looked with apprehension at any attempt on the part
Of the the house to regulate the cha nnes
in which investments should dow He thought that no
harm would accrue to the country II all the railway
bills which would be brought forward this session
thrown OUT but when the House undertook TO that
only much capital should be invested in railways
could be spared from other branches Of business they
undertaking tack Of doubtful propriety, II not
utterly beyond their strength Another expectation in
had also realized that the exchanges would
be set right before the bank reduced to extreme
weakness :. IL our money system mad continued the
means improbable that, considering what had
since occurred, the bank would have .tspped pay
ment Indeed, his conviction was, that II the
cent storm had come upon us without any other bull
wark against its fury than had before the act of
lSa4 the consequent disasters would have been nh-
nitely greater But there another expectation in
which he had INDUCED, which he must admit had been
faIshed. He had he ped that would have compelled
the Bank its operations in time and gra-
dusy to draw in Its ties from circulation the gold
being withdrawn from the country and thus op-
crate gradually on commercial interests ana mitigate
such difficulties might arise Looking at the crisis Of
April and that Of October he must ADMIT that in this
respect his hope had been frustrated In his opinion
the operations OF the of the Bank had been
sueenty considered either by the friends or The OPP
ponents OF the bill. But II that which had
enabled the Bank to do what 1t should have done to
permit seven millions Of gold they did within the past
year, to of without dimp shins its circulation by
single pound That certainly anomaly not con.
templated ct the enactment Of law and required in
vestgation Having thus stated how far, In his OPT
MON. the bill had answered had frustrated its purpo
the right honorable gentleman adverted to tn OBJ
jectioDs which had been offered against the bill and
which In his judgment had been of the discordsnt
character Some described 1t iue fcient measure,
sgan condemned 1t because fettered the discretion o.
ths Bank directors but he would remind gentlemen OF
the denunciation which had Issued from
the Chamber Of Commerce of Manchester, against tie
discretion then vested In the Bank corporation He
would go into the proposed committee with view to
certain TIE working OF the Act and to arrive at those
conclusions to which truth and experience pointed He
earnestly entreated the House to take sudden jump
way the other. Let u not be scared into any
preoipate action by the notion urged by many that It
necessary to do something for OF s the foies
which it could commit greatest would be to
thing when 10 knew not what to do Calm investigation
was what they now required The loss Of months was
nothing to the mischief which might from pre-
cipitste action.
Lord JOHN RUssELL after advertng to the variety of
topics which had been touched upon during The discus
which he desired to bring the House very different
from that to which Mr. Hsrrie, wshed to lead It. 1t
would In bis opinion be the Insight OF folly to decide
without inquiry, upon the abandonment VI the present
system which had been adopted with such general con
dsncs to the commercial Glasses he knew nothing
to shaks that confidence than to listen TO the
PROPOSE to repeal the law whilst the substitute
for 1t to be left matter Of doubt and speculation
Tor another year In properly estimating the mer
its Of the Bank Act 1t impossible to overlook the
OF the last 80 years. which the noble lord
ceeded rapidly to ptulse with view to show the
necessity which ex.tsd In s44 for alteration Of our
monetary SYSTEM " wished The convertibity
Of the banknoe. lwss his conviction that to acousds
rsble degree the government Of s44 had sucoeedsd IN
sverted evils which would probably otherwise have
the operation Of the act the probability
that the drain Of gold between April and June last
| 10,
were brought In 1889, to the verge Of suspension OF
area dy detailed In the most ample the crcum
stances which had preceded and induced the issuing Of
the letter Of the 25th Of October but TO satisfy those
who rt believed that these circumstances were held
back nom them the noble lord proceeded to detail them
anew, In doing which he BRIT fly reviewed the transsc
tons which had occurred from the commepc ement OF
1876 The railway expenditure, large though it was
might have been singy borne; but when We added TO
and large appropriations for the subsistence Of the rsh
people, 1t was no wonder that capital, which album
dant before, should become scarce and dear; The
noble lord then dwelt for some time upon the Pc
culiary perplexipg situation of the bank obliged
as It was at one time to consult its own in
teres1, and at another to subserve those Of the
| public. as a reason why, in crtici1ng its CON
duct, they should make much allowance for the diff
fculties OF its position He would say for all that
he anticipated that the of 1874 could prevent
panic and distress The chief object of the in
this respect that when occurred Its
nurrence would not affect convertible currency
Had the bank considered merely its interests at
| the commencement Of October, IL would have been
more cautious In it's discounts, and would have been
perfectly safe, with sufficient amount Of But
pressed as 1t all sides to give reli to suffering
commerce. the bank made large advances to such houses
asst considered solvent About the middle of the week
ending the 23i October he began to think that
the metropolis they seemed to be disappearing But
there arose at that time great panic and dstrus In tho
country bank had given way at Newcastle aud ano-
Their had been formdably upon and approximations
were entertained Of similar In other parts
oftbe country, and Of dreadful convuson as their
consequence. The Governor Of the bank then frankly
confessed that II such events multiplied the bank could
not give further accommodation and would be obliged
further to restrict that which It had given II In
these circumstances that the government conside ed
that the time had ut length when In order to avert
the greatest evils II was necessary to take some extra
ordinary step. The prudence Of the government In
taking that step had scarcely been questioned was
step well cuated to restore confidence, and In taking
1t, the evils which flowed from violation Of the Law
much less than the mischief and disorder which
their interference had averted. The noble lord then
proceeded to Justify the high rate Of interest which had
been inserted condition into the letter The results
Of that condition had turned out precisely as ntic
pated An influx of gold took place. and had contn
ued, until their bullion in the bank amounted TO
nearly eleven millions whilst Its no less
than six millions He had no confidence that, without
suoh condition. so advantageous result would have
taken place The object the hand was to restore
confidence and the other to that degree Of
| speculation which would have turned the exchanges
| against us, and prevented the influx Of bullion The
noble lord then inquired Of those who clsmored
intermediate step II they had yet fixed In their own
would lead. Whatever the house did, he hoped they
would not adopt the advice Of Mr. Herries and take
any inter step until inquiry be made Notwith
standing all the discussi which had taken place on
the currency there still many truths to learn
specting It, He believed It possible to effect useu
of the Act Of l6a4 but hs maintained ~
1t was great improvement our former monetary tys
ten, aud had a greft degree answered ITS purpose
He entreaed the House then to appoint the proposed
committee, which might gravey IL aiIe into the whole
case and not by any sudden ard precpate RESOLUTION
to many to doubt whether 1t their intention
TO retain the oonvertibty Of their currency, and to
| keep up their standard.
sir X PEEL, after some preliminary observations, in
which he eompimented the House the return TO Of
Mr. Henries, denied that he had given any public s"u
rance, MIR Urquhsrt and MIR. Reynolds had charged
him with giving the act Of ls4i should not extend
to Scotland Ireland 80 far from having given any
such ASSURANCES had expressly declared that the prn
| cipe Of the act to extend to both Scotland and
Ireland 80 far asthe creation Of banks OF issue
conc. rned As to the immediate subject before the
House. thought that when the government demanded
| u committee ut the hands Of the House OF Commons,
Whatever opinions they might individually entertain
they could hesitate to grant IT, There proc