a

them in the form of a demand for such an injunction in regard to gold : in point of fact, the Bank their other notes. Mr. Hume imhad completely withdrawn their mediately declared that he would small notes from circulation three interrupt the business of the comyears earlier than the period limit- mittee by moving that the chairs, ed by law; they had possessed the man report progress, and ask leave to power of issuing them for three sit again; and he told thechancellor years past, and yet

had never ex- of the Exchequer, that, unless some ercised it, 'till last December, and provision to the purport of that then, too, not for their own emolu- recommended by Mr. Maberly were ment, but for the public benefit, introduced into the bill, he might and to stop the progress of the be assured that it would not be growing panic. Besides, it ought allowed to pass yet for a week. never to be forgotten that the In vain his own friends urged him Bank had made great efforts to not to persist in this unusual establish a metallic circulation all procedure, and Mr. Huskisson sug

the kingdom, and had fre- gested to him the propriety of quently brought large quantities rather bringing in a bill to amend of gold into the country-although the bill now before the House, it had returned, like the dove to than interrupting it in its present the ark, finding no place of rest stage. Mr. Hume answered them amid the deluge of paper money. all with the observation, that they These three facts, therefore, the probably were not aware that he recal of the one-pound notes by intended to propose the introducthe Bank, when they might have tion of five new clauses into the kept them out for a longer period; bill, and to take the sense of the the non-issue of them for three House upon every one of them. years, when they might have is- His motion was lost by a large masued them; and their recorded jority, but as he still persisted in efforts to supply the country with pressing his clause upon the coman adequate and well-established mittee, the chancellor of the Exgold currency, furnished a suffi- chequer for the second time concient guarantee, upon which to sented to an adjournment. found as competent a judgment as On the 27th of February, bethe human mind could form of fore the House went, for a third the probable course of human con- time, into a committee on the bill, duct.

Mr. Hume stated the nature of the The clause was then adopted by additional provisions which he a majority of 187 to 24.

wished introduced into it. Various clauses were proposed in protested in toto against the supthe committee. Mr. Maberly having pression of the small notes, because, moved as an amendment, “That if they were withdrawn from the the Bank do monthly publish an circulation, they would require to account of all notes issued by them be replaced by bullion; and, by in the preceding month, to the last so much, said he, would the capital day inclusive," the chancellor of of the country be reduced, and the the Exchequer was inclined to power of giving employment to agree to it, in so far as the small labour taken from individuals. If, notes were concerned, but could argued Mr. Hume, the arguments not consent to the imposition of in favour of the measure be good

He

a

for any thing, they should not have nection a provision like this had stopped at the small notes, but with a bill, whose only object was ought to have prohibited all notes, to secure the gradual withdrawing of whatever amount; not seeing of notes of a certain kind; the purthat a metallic currency must be pose of the latter was to restore a very differently affected by a paper metallic circulation by a partial excurrency of the same, or nearly pulsion of paper ; the

purpose

of the same denomination, which the former was to secure the reign could supply its place; and by a of paper, to the expulsion of the paper currency of a denomination precious metals. Būt this was not so much higher as necessarily to the only objection to which the require the assistance of the metal provision was obnoxious. Its effect for the ordinary purposes of life. would be, to deter prudent persons It was in vain, he averred, to en- from engaging in the banking deavour to impart solidity to banks, business, for the whole amount of or security to their customers, un- their capital would be locked up, less one measure were adopted and unproductive; and, as the banks a measure the non-adoption of were to enjoy no particular priviwhich by ministers would leave leges, it was scarcely reasonable to upon them the responsibility of all impose upon them so severe, and the misery which might in future so injurious a restriction. The exbe produced by bank failures. ample of Scotland, even with an This measure was, to compel every extensive issue of small notes, banker to make deposits, in the proved that such security was not hands of parliamentary commis- necessary. The experience of 1822 sioners, equal to the amount of his proved that few men would be disissues. For the first year the deposit posed to establish banks on such might be confined to the amount of a principle; and the bill, by compelhis one and two pound notes; for the ling bankers always to have a large second, to the amount of his five- portion of their capital in gold, and pound, along with the former ; and, to watch the occasions when gold in the third, it should be extended might be required from them, was to the whole amount of his notes a much better security than conin circulation. If, on presenting signing their real capital to inaca note at a country banker's, he tivity. Lastly, it would put an refused to pay it, the refusal ought end to deposit banks, that is, to alto be certified by the nearest ma- most every bank in the kingdom. gistrate, and the commissioners Existing deposits would be withshould be authorized thereupon to drawn, and no new deposits would sell a portion of the deposits in be made, because the real wealth their hands, to discharge the claim. of the banker was, in case of misHe, therefore, moved “ That it be fortune, to be applied to the payan instruction to the committee to ment of the holders of the banker's provide for requiring from banks notes, and the makers of deposits deposits (to be lodged in the Ex- were to be thrown back exclusively chequer, or other proper office) upon the mere fragments of his equal in amount to the amount fortune, whilst the holders of his of promissory notes payable on de- notes were secured in full payment mand, issued by them respectively.” La distinction between creditors,

" It was difficult to see what con- equally unjust and impolitic. Mr. Hume found only eight mem- temptation to commit robbery in bers to join him, the motion being the case of gold, than in the case rejected by a majority of 120 to 9. of paper, because there were much

An amendment to the effect that greater facilities for escaping dethe Bank of England should make tection. It was easy to understand regular returns of the whole amount that there could not be so strong of their paper in circulation, and an inducement to crime, when the another, that the holders of country currency consisted in notes numnotes should have summary pro- bered, and signed with a known cess of execution for their amount name, without which they had no by the warrant of a magistrate, value, as when it consisted of gold were equally unsuccessful; but coin, which it was impossible to a clause was added, providing, that identify. This view of the noble from the 5th April, 1829, all notes lord was not original, for it had under 201. should be payable in been enforced, with much humour, specie at the places where they in certain celebrated letters which bore to have been issued. On the appeared about this time directed third reading, however, the exten- against the extension of the bill to sion of time in favour of the Bank Scotland. It was likewise worth of England, was again opposed; considering, that the forgery of the clauses, giving summary process on small notes was a danger of the notes, and requiring from all same kind, and one which had renbankers a monthly return to go- dered necessary the sacrifice of, at vernment of the whole amount of least, as many lives to the law, their issues, were again pressed, as the more daring depredations and again negatived ; and, on the of former times. But, finally, 7th of March, the bill passed, by the connection,

and a majority as large as that which effect, between the disappearance had introduced it.

of guineas, and the disappearIn the House of Lords, the ance of highwaymen, was more opposition to the bill was less whimsical than real. “I once," pertinacious than it had en- said lord Liverpool, " when I was a countered in the House of Com- boy, suffered from a highwayman, mons; and the grounds, on which and lost all the money I had upon it was attacked and defended in It is, therefore, natural, that the former, were precisely those I should be as much alive to this which had formed the topics of danger as the noble earl: but still, discussion in the latter. The earl with all my early associations, I of Carnarvon alone, who moved, cannot help thinking, that, if that on the second reading, that the danger must revive with a return bill should be read again that day to a metallic currency, it would six months (a motion which was have been felt during the last four negatived without a division) or five years; for, during all that stated a new reason why an actual time, their lordships had been going gold circulation ought to be kept about the metropolis and its vicias far from our doors as possible; nity, not with notes, but with soviz. that a return to it would vereigns, in their pockets. The albring back the highwaymen of most total extinction of highway Bagshot and Hounslow. There robberies was to be attributed to was, he said, a much greater the only thing which could either

as

cause

a

The ex

for any thing, they should not have nection a provision like this had stopped at the small notes, but with a bill, whose only object was ought to have prohibited all notes, to secure the gradual withdrawing of whatever amount; not seeing of notes of a certain kind; the purthat a metallic currency must be pose of the latter was to restore a very

differently affected by a paper metallic circulation by a partial excurrency of the same, or nearly pulsion of paper ; the

purpose

of the same denomination, which the former was to secure the reign could supply its place; and by a of paper, to the expulsion of the paper currency of a denomination precious metals. But this was not so much higher as necessarily to the only objection to which the require the assistance of the metal provision was obnoxious. Its effect for the ordinary purposes of life. would be, to deter prudent persons It was in vain, he averred, to en- from engaging in the banking deavour to impart solidity to banks, business, for the whole amount of or security to their customers, un- their capital would be locked up, less one measure were adopted and unproductive; and, as the banks a measure the non-adoption of were to enjoy no particular priviwhich by ministers would leave leges, it was scarcely reasonable to upon them the responsibility of all impose upon them so severe, and the misery which might in future so injurious a restriction. be produced by bank failures. ample of Scotland, even with an This measure was, to compel every extensive issue of small notes, banker to make deposits, in the proved that such security was not hands of parliamentary commis- necessary. The experience of 1822 sioners, equal to the amount of his proved that few men would be disissues. Forthe first year the deposit posed to establish banks on such might be confined to the amount of a principle; and the bill, by compelhis one and two pound notes; for the ling bankers always to have a large second, to the amount of his five- portion of their capital in gold, and pound, along with the former; and, to watch the occasions when gold in the third, it should be extended might be required from them, was to the whole amount of his notes a much better security than conin circulation. If, on presenting signing their real capital to inaca note at a country banker's, he tivity. Lastly, it would put an refused to pay it, the refusal ought end to deposit banks, that is, to alto be certified by the nearest ma- most every bank in the kingdom. gistrate, and the commissioners Existing deposits would be withshould be authorized thereupon to drawn, and no new deposits would sell a portion of the deposits in be made, because the real wealth their hands, to discharge the claim. of the banker was, in case of misHe, therefore, moved “ That it be fortune, to be applied to the payan instruction to the committee to ment of the holders of the banker's provide for requiring from banks notes, and the makers of deposits deposits (to be lodged in the Ex- were to be thrown back exclusively chequer, or other proper office) upon the mere fragments of his equal in amount to the amount fortune, whilst the holders of his of promissory notes payable on de- notes were secured in full payment mand, issued by them respectively." -a distinction between creditors,

It was difficult to see what con- equally unjust and impolitic. Mr.

Hume found only eight mem- temptation to commit robbery in bers to join him, the motion being the case of gold, than in the case rejected by a majority of 120 to 9. of paper, because there were much

An amendment to the effect that greater facilities for escaping dethe Bank of England should make tection. It was easy to understand regular returns of the whole amount that there could not be so strong of their paper in circulation, and an inducement to crime, when the another, that the holders of country currency consisted in potes num. notes should have summary pro- bered, and signed with a known cess of execution for their amount name, without which they had no by the warrant of a magistrate, value, as when it consisted of gold were equally unsuccessful; but coin, which it was impossible to a clause was added, providing, that identify. This view of the noble from the 5th April, 1829, all notes lord was not original, for it had under 20l. should be payable in been enforced, with much humour, specie at the places where they in certain celebrated letters which bore to have been issued. On the appeared about this time directed third reading, however, the exten- against the extension of the bill to sion of time in favour of the Bank Scotland. It was likewise worth of England, was again opposed ; considering, that the forgery of the clauses, giving summary process on

small notes was a danger of the notes, and requiring from all same kind, and one which had renbankers a monthly return to go- dered necessary the sacrifice of, at vernment of the whole amount of least, as many lives to the law, their issues, were again pressed, as the more daring depredations and again negatived; and, on the of former times. But, finally, 7th of March, the bill passed, by the connection,

and a majority as large as that which effect, between the disappearance had introduced it.

of guineas, and the disappearIn the House of Lords, the ance of highwaymen, was more opposition to the bill was less whimsical than real. pertinacious than it had said lord Liverpool, “when I was a countered in the House of Com- boy, suffered from a highwayman, mons; and the grounds, on which and lost all the money I had upon it was attacked and defended in It is, therefore, natural, that the former, were precisely those I should be as much alive to this which had formed the topics of danger as the noble earl: but still, discussion in the latter. The earl with all my early associations, I of Carnarvon alone, who moved, cannot help thinking, that, if that on the second reading, that the danger must revive with a return bill should be read again that day to a metallic currency, it would six months (a motion which was have been felt during the last four negatived without a division) or five years; for, during all that stated a new reason why an actual time, their lordships had been going gold circulation ought to be kept about the metropolis and its vicias far from our doors as possible; nity, not with notes, but with soviz. that a return to it would vereigns, in their pockets. The albring back the highwaymen of most total extinction of highway Bagshot and Hounslow. There robberies was to be attributed to was, he said, a much greater the only thing which could either

as

cause

such

- I once,"

en

me.