Suppose now, that the government, and those who sided with them, should finally discover themselves to have mistaken the subject. Was not one mistake enough for one period? A great deal was expected from the measure of taking off the restrictions on the importation of foreign silk. He was convinced that those who entertained such expectations would be deceived. But why, in the same year, do something else which must aggravate the distress which was now felt in almost every country town in the kingdom? The right hon. the president of the Board of Trade could not possibly be aware of the real state of the country. He could not rogative of the Crown, upon what principle it could be shown that making a onepound note was a greater offencé against the prerogative than making a five-pound note, he was entirely at a loss to imagine. But, he neither defended nor supported these notes upon principle. He agreed that they were a nuisance, and a nuisance which ought to be abated: and, if no other argument could be adduced against them than the danger to which they exposed the working classes, that argument alone, he should hold, was quite sufficient. Besides, he agreed that, by taking away the notes, it would be possible so to saturate the country with gold and silver, that we needed not to mind the loss of any quan--it was plain from his declarations, that tity which would be carried away by such he did not- understand the cares and an accident as the fluctuation in the ex- anxieties which beset thousands as to their change. The only question between him ability to pay according to their underand other gentlemen, was that of time. takings. But, suppose they should be Some of them put the case as if the pre- right in one of those measures, why sent instant were all that was to be con- should they persist in making this great sidered. It had been argued, that now experiment on 300,000 or 400,000 manuwas the time or never. The argument facturers, who would, in all probability, seemed to treat them like children. If be turned out of the means of existence? the country bank small note circulation Why not be content with one difficulty at was inimical to the welfare of the country, a time? To say the least, either of those who could doubt but that, when the pro- measures was a novelty. If they resolved per period should arrive, the House would to try this novelty in regulating the cur do that which would become its dignity rency, why choose that very time for and functions? What need, then, of this trying the experiment of a competition precipitancy? The case was put always with France in an open trade in silks? as if the paper circulation had grown up in Suppose they should afterwards see their opposition to the connivance and contriv- mistake. Ruin would fall on millions, ance of the Bank and the government. It while, at the same moment, the country was the parliament who had raised up the would be labouring under the accumulated paper circulation. He complained of the distress which must be incidental to the great fondness that was entertained by withdrawing of a considerable portion of some gentlemen for their particular views; the currency. Trade, already in a state who, when once they got the patient within of great confusion, would be still more their power, a theory having opened to confused. And, by the middle of the them previously, proceeded with their year, they might witness such scenes as operation; the agony and suffering of were acted throughout the country in that patient causing no remorse or abate- 1819. The blacking-man would go round ment in the rigour of their practice.-If the districts, aided by crowds of itinerant any practical man in that House could patriots. The stomachs of the unhappy show how the step could be taken without people being empty, their credulous ears danger, he would freely give up his judg-would be open to suggestions of sedition ment to the philosophers and theorists; but until then, he thought the right hon. gentlemen opposite were taking a great responsibility upon themselves. Adverting to the conduct of the president of the Board of Trade, the hon. gentleman said, that two years ago, he had expressed the opinion which he now held, that in the manufacture of silk the English manufacturer could not compete with the manufacturer of France and Switzerland. and discontent. He pronounced this policy to be the most foolish risk ever incurred by any administration. Now for a few words on a very important part of the case. When this discussion opened, he had stated the awkward and ill-managed contrivances of government in resorting to the Bank of England for aid, when they might have raised money far more easily and economically; the 3 per cents, being at that very period at 95. He had stated, to be recalled, and appropriated by the vote of parliament. He begged the House to recollect that his comparison had been drawn between the present period and 1797; at the former, the government had 24,500,000l. of the capital of the Bank engaged in its transactions; in 1797, the Bank had only 10,000,000l. locked up by the wants of government, and then the Bank was obliged to stop payment. that at the end of the American war, the Bank had all but stopped payment; in 1797 it did actually stop payment. In both these cases the causes assigned for the pressure on the Bank, both by the Bank and the public, were the aids given by the Bank to the government. On these occasions, the Bank having made a forced abundance, and promoted speculations in schemes by that abundance, next resorted to a contraction of their issues, which-Upon the whole, he saw no reason, for produced the calamities ascribed to these unfortunate country bankers notes. They had, to use the language of the right hon. foreign secretary, raised the balloon to the skies, and had then put a pin through it and sent it to the earth. The right hon. gentleman had found fault with the statement which he had made of the Bank having 24,500,000l. locked up by government, as being uncandid and unfair. How did the case stand, according to the admissions of the right hon. secretary? The amount of Exchequer bills he did not attempt to overset. As to the dead weight, which he had taken at 8,000,000l. the right hon. gentleman took it at 5,500,000l. The dead weight actually paid in July, 1805, was 6,917,000/.; the dead weight paid in January of the present year was 1,100,000l. The right hon. gentleman deducted the advances made by the government towards the current payments, but did not seem to take into the account, that these advances were, in fact already disbursed by the Bank; though it might be very true that, upon a scale of four years during which the annuity continued, they would be refunded with sufficient advantage to the Bank. But how did this disprove, that the Bank had already 8,000,000l. of their present capital locked up in the dead weight? With respect to the payment by the Bank of the dissentients on the reduction of the 4 per cents he had taken it at 2,000,000l. The right hon. gentleman had taken it at nearly 4,000,000l. so that here he had been mistaken, and had calulated it at too little by 1,500,000l. As to the deficiencies, they were, it was true, received again and again, and perhaps most frequently within the quarter. What he had said was, that at a period of great difficulty, the Bank was in advance with those deficiencies: so that altogether it had locked up, by the wants of government, no less than 24,500,000l. It was true that government had cash at the Bank usually to the amount of 6,000,000l. but that money was continually subject dread or apprehension, now, under a wise and discreet management. He differed from those of his hon. friends who thought that the country could not go on under its present burthens. He did not wish to urge his own sentiments beyond an amicable difference of opinion; but he thought that with care and management in the State, with a rigid economy enforced in every department of government, and a dispo sition on the part of the people to bear something more than the mere burthen of providing an income, all might yet go well. It had been said, that though the Bank had so largely accommodated government, yet that there could be no embarrassment, because it held government securities and Exchequer-bills to an equal amount. The hon. member himself could make these securities available. But the Bank could not. In a time of difficulty the Bank could not raise 51. upon these securities. He was convinced, when he heard that the Bank was disposing of Exchequer-bills, that it would lead to considerable embarrassment, and the result had shown, that the derangements of the money-market were aggravated by the Bank just at the time of selling Exchequer-bills. Referring to the resolution of the House in 1816 that a one-pound note and a shilling were equivalent to a guinea in gold, the hon. gentleman said, he was sorry that the author of that celebrated production, "that great unknown," who had favoured the parliament and the country by so luminous an entry on their journals, was not here to enjoy his just triumph. He believed it was lord Bexley who had made that important disclosure. At any rate, if lord Bexley was not the father, he was the godfather of that sapient declaration, and had notoriously introduced it to the House, in a long speech of his own. As to the immediate question, he would say, leave the thing alone for the present, Whatever number of country-bank notes had been out they were now considerably diminished; and the state of the country rendered any precipitate persons rushing in were not the holders contraction of the remainder higly inexpe- of large notes, but those persons who dient. He would therefore move, by way had saved up small sums of money. In of amendment, "That, it is the opinion this way the public calamity was increased. of this House, that in the present disturbed The consequence was to diminish the state of public and private credit, it is not confidence in the banks; then to produce expedient to enter upon the consideration failures, and then to displace the small of the Banking system of the country." notes; which displacing of the small notes was as completely accomplished as by the full execution of this measure. The mischief had been felt; and the question was, shall we go back, or take such measures as may guard against a recurrence of the evil?His other reason for differing from his hon. friend was this. Did any man entertain a shadow of a doubt, that if this measure was not accomplished now, it never would be? His hon. friend would not say when. He had hinted something Mr. Grenfell said, he could not tell whether his hon. friend would consider him a practical man. However, be that as it might, he would give it as his deliberate opinion, that not only might this measure be with safety adopted, but that in his conscience he believed there would be no safety for the circulation of the country without it. Further, he would say, that, in all his communications with practical men, he had not found one who did not declare that the cause of the pres-about a year; but this measure gave more sure originated in the country-bank notes, and that one of the remedies was their removal. Mr. Brougham said, he could not, on a question of such importance, content himself with a silent vote. Whatever opinion his hon. friend might hold of his being a practical man, he would endeavour to state, as shortly and as practically as he could, the reasons why he differed from him, on the only ground respecting which there could be any difference of opinion. His hon. friend, practically speaking, was of opinion, that a recurrence to a metallic currency was necessary to the support of our commerce; and that, without getting rid of the small notes, it would be utterly impossible to arrive at the desired result. Thus far they were agreed; and the only question between them was as to time. Now, a few words on that point only. His first reason for dissenting from his hon. friend as to time was one as purely practical, and as little visionary or theoretic as could well be imagined. His first reason for the immediate adoption of the measure, as contradistinguished from a postponement, was, that the plan was already partly in execution. His first practical reason was, the consequence of the over-trading and panic by which the mischiefs had been aggravated. The small notes did not cause the over-trading, or originate the mischief; but, when the mischief had arisen, it was then very materially aggravated by the small notes in circulation. Runs were accordingly made: and it could not be denied, that when fear seized the minds of the holders of notes, the time than even that hinted at by his hon. to a resolution, that the old notes were to be allowed to wear themselves out without taking proper and efficient measures to prevent the re-issue of the stamps, the consequence would be, that they would be renewed, and at the end of two or three years, they would find themselves just where they set out. If they should abstain from touching these small notes at all, and listen to those who prayed for delay, why then, they might be assured, that the gold would be effectually kept out; and if, at the end of a year and a half, as one hon. gentleman seemed to think, or three years, as was held to be a sufficient time by another, or any other period, no matter what-they should flatter themselves with the idea of the small notes being given up, he would tell them that that time would never come. Nothing could, therefore, be gained by delay. There was a point of theirs, con nected with the question, to which he had been unwilling to give up his mind, but which had been forced upon him at length by experience of practice; namely, that a paper currency, convertible into gold, could not exist with gold. This was contrary to all theory upon the subject, and at variance with all the positions laid down by political economists; but it was a truth which he could no longer resist, that when there was a paper currency convertible at will into gold, and a gold currency at the same time, the gold would soon disappear from the circulation. If, therefore, they yielded to the present request for delay, when the time came which had been conceded to their request, if it proved to be a season of difficulty, they would say, "this is not the time, wait yet a little longer, till the present storm blows over; this is not the time for changes or innovation, do not interrupt the course of things by speculative theories till the present danger is passed.". If it should happen to be a time of prosperity, why then they would be told to leave well alone; they would be reminded of that cordial virtue of their ancestors, the quiet contentment under all abuses; they would be told, that they might better themselves a little to be sure, but they might be much worse, and they should know when they were well off. In short, take it as they would, they would find, that no alteration could ever be brought about with their consent. There might, it was true, be some argument adduced against those who now wished to put an end to the system of small notes, if they were beginning to displace them at this moment, but the ground for that argument no longer existed. Few of the banks which would be affected had any paper of this description in circulation. He had already stated how, in his opinion, the theory upon the subject of the gold currency differed from the practice; for, that the gold disappeared when in co-existence with a paper convertible into gold, was a fact undeniable. Whether it was that the greater portion of small notes circulated among poor people, who were ignorant of the power they possessed to convert it into gold; or, whether they did not consider themselves free agents to require from those who uttered these notes, the amount of their bond-the fact was undeniable, that the gold did not get into circulation by means of these notes, and that, contrary to all theory, it did not retain its place in a circulation of mixed paper and precious metals. One hon. member had gone the length of maintaining, that no currency was more fitting and proper than one composed entirely of paper; for his part, he thought that no country could have a sound and wholesome circulating medium from a paper currency, deprived of gold and silver; because, these precious metals seemed to be naturally designed for such a purpose, from their intrinsic value.-The hon. member for Taunton, with whom he regretted upon the present occasion to differ, had recommended silver to be added to gold as a standard of value; although he had not exactly explained how that was to be accomplished. One word he would say about tampering with the currency. If ever the time should come (and God knew it pained him to make any allusion to such a subject), but, if ever the time should come, when, by tampering with the currency, it should come to be depressed, he hoped they would look their difficulties fairly in the face; he trusted they would meet them manfully and honestly, and bear without shrinking, and without artifice, the duty which might be imposed upon them. His reason for objecting to silver as a standard instead of gold was, that gold was less easily procured, and subject to no other loss than the wear and tear of its transition from one hand to another; whereas silver, from the mines of America, by the discoveries of modern mineralogists, and the improvements introduced in machinery, was much more likely to sustain great fluctuations in value, which would render it unfit to be a permanent or universal standard.-He had only one observation to make in conclusion; namely, that whatever might be the result of the bill which he hoped to see introduced-whether it might have the effect of remedying the evils which they had all seen to be the result of the system intended to be put an end to or whether those evils continued, and even increased, after it had been called into operation; if those who now opposed it should hereafter, as he, without being endowed with the spirit of prophecy, could foretel they would-if, he repeated, they should, when the miseries of the times continued, or perhaps increased, call upon the advocates of the bill to look at the consequences of their work, and recal to their recollection the arguments and entreaties used to prevent to express the opinion of the House on the principle of the measure. But, after the protracted debate which had taken place, and as it was desirable, on every account, to have the opinion of the House ascer thought the most expedient course would be, to have it understood, that the present question, although one merely of form, involved the consideration of the measure before them, and that the decision of one would be considered as a decision upon the other. Upon this understanding the House divided; for Mr. Baring's amendment 39, against it 222. Majority 183. List of the Minority. Attwood, M. Irving, J. Maberly, W. L. Plummer, J. Robarts, A. W. the passing of a measure which had produced such calamities; he would tell them, if any or all of those miseries happened, to recall to their recollection the month of December-that gloomy and fatal period -the most disastrous, and most horrible,tained with as little delay as possible, he perhaps, in their commercial annals. He would say, let them look back to that period, and if they pointed to the distress or the distrust which may hereafter exist, remind them of the last fourteen days, or three weeks, before the discussions in that House-let them call to their remembrance the bankruptcies, the universal want of confidence, the unparalleled misery which then existed in every part of the country and then let them attribute that wretchedness to the measure now in contemplation, if they can do so with any shadow of reason. The only consolation they could offer to the sufferers-for sufferers there would be, not only from the state of the last few months, but from that diminished consumption of all the productions of other classes, inflicting the heaviest pressure upon that most honest, industrious, meritorious, and most numerous class of the community, the working class-all they could offer to them, in return for their patient endurance of evils, would be, not a vain pretence to remedy their afflictions, but a steady and invariable currency to buy and to sell-a currency which may save them a renewal of those disasters from which they have lately, in some districts, suffered miseries, compared with which the very lowest rate of wages that could be accorded was as nothing; inasmuch as the one was only a diminution of profit, while the other became a total and irretrievable loss, attended by calamities too melancholy to be dwelt on. Whatever difference of opinion might exist as to the principle of the measure which had been proposed, or however they might differ in the details, as he believed a state of suspense to be the very worst in which the country could be left, he, for one, would give a cordial vote for the immediate production of the bill. Mr. Secretary Canning said, he agreed completely in the justice of the observation with which the learned gentleman had concluded his speech, and he believed that the sentiment was fully participated in by every member of the House. As the question, however, which was then before the House, namely, "that the Speaker do leave the chair," was merely a question of form, the decision of it might not appear VOL. XIV. Griffith, L. W. Robertson, Alex. Robinson, sir G. Smith, S. Wilson, T. Whitbread, W. H. Wood, Ald. Walker, J. TELLERS. Baring, A. The original question was then agreed to, and the House resolved itself into the committee. On the Resolution being read, Mr. Hudson Gurney observed, that, if government destroyed all the country bankers' notes, and, at the same time, stopped the issue of one-pound notes by the Bank of England, they would leave the country in a state of destitution, of which they could not have any adequate conception. That establishment was not liable to the imputations thrown out against the country banks, of being desirous to put out their small paper without rule or guide. He should therefore move, as an amendment, that the words "or by the Bank of England" be left out of the resolution. The Chancellor of the Exchequer said, that although much of the inconvenience that would result from permitting country bank notes still to circulate, would not attend the continued circulation of the 2 A |