Sivut kuvina
PDF
ePub

ought not to be enforced, until the fever, which at present afflicted the mercantile world, had subsided; for the country was now in that state in which it rather required additional facilities, than that those already in existence, should be limited. Another measure of great importance to the object in view would be, to compel the country banks to make returns of the numbers of their notes in circulation at stated intervals. It might be objectionable to require returns of their whole assets; for the banker might complain that such a proceeding would injure his credit. But to a mere statement of the amount of notes which he had in circulation, there could be no well-founded objection; while, from such returns, parliament would know with certainty the facts upon which they were legislating, instead of being confined to the loose data with which they were now obliged to remain contented.

The mention made in the Speech of the conclusion of a treaty with the republic of Columbia, called forth, in the course of the discussion, many expressions of admiration at the masterly and cautious policy by which Mr. Canning had solved the difficult problem of connecting ourselves with the new governments of South America as independent states. The treaty, however, which had been concluded, under our mediation, between Portugaland Brazil, and which secured the independence of the latter, and its separation from the crown of the former, did not meet with equally unmixed approbation. Mr. Baring regarded it as only making this country a party to any future contingency which might arise, tending to a

as a

re-union of the two countries under one sceptre. Mr. Brougham expressed his hope that it never would be ratified, but for a different reason. The treaty contained an article by which the parties to it mutually bound themselves to give up each to the other, all subjects of either taking refuge in the territory of the other, who might be accused of high treason. This article Mr. Brougham denounced as an infamous provision, and " revival and extension of our own worst law on the Statute-book, the Alien bill," and he sincerely trusted that it would not receive the sanction of the government of this country. Mr. Canning said, that he entirely agreed with with Mr. Brougham as to the character of the stipulation to which he had alluded, and that there were other stipulations which were equally objectionable. Without imputing blame to those who negociated it, he would only say that it had been negociated without instructions from the government at home, and was contrary to their views. For that reason it had not been ratified, nor would it be ratified.

Although it was not till the 10th that the propositions for proscribing the small notes, and enlarging banking partnerships, were formally brought forward, they were, in the interval, incidentally the subject of frequent discussion. Government, having resolved to prohibit the issue of small notes stamped after a certain period, and apprehensive that, in the interim, they might be stamped to any extent, had given orders immediately to put an end to the stamping of such notes. On the 8th, Mr. Calcraft inquired whether this was the fact; and being answered by the Secretary of the Treasury in the affirm

ative, he declared it to be a most unconstitutional exercise of power, and brought it again before the House on the following day. It was a step, he said, which not only added to the panic already produced by the contemplated measure of government, but was likewise a most illegal act, and a gross violation of justice. Ministers ought either to have passed a short bill through parliament authorizing the step which they had taken, or, at least, ought to have informed parliament that it had been taken. The individuals, whose interests had thus been sacrificed, had licenses from government, for which they had paid, and which permitted them to issue their notes till the 10th of October. They had proceeded under the solemn guarantee of an act of parliament; and yet government, by prohibiting the stamping of the notes, had deliberately violated that statutory guarantee. Mr. Gordon expressed the same sentiments, and deprecated the plan of withdrawing the notes from circulation.

The Chancellor of the Exchequer defended himself by the plain prudence and absolute necessity of the measure. In the discussion upon the Address, the plan of government had been opened sufficiently in detail to enable the country bankers to see its object, and understand its bearings. There was thus every reason to appre hend, that they would take advantage of the interval to stamp their notes to an indefinite amount; and it was, therefore, impossible for ministers to allow the stamping of of such notes to go on, without rendering their intended measure altogether nugatory: they would have been guilty of absurdity and inconsistency, if, having resolved upon the

up.

measure, they did not follow it What they had done in taking this step, might perhaps require an act of indemnity; and if it did, he trusted the House would have no difficulty in acceding to such a bill. Mr. Ellice said, that he held the measure in question to have been illegal; but he held it likewise to have been prudent and necessary. He was at a loss, however, to imagine, how, after government had intimated their intention of putting an end to these notes, the putting an end to them on Monday, or on Tuesday, could occasion any serious alarm. He could easily imagine how the intimation of an intention to put an end to the notes at all might produce alarm, but not how an act, the only effect of which was, to put an end to them a day sooner, or a day later, could produce that effect.

On the same evening, the marquis of Lansdown called the attention of the House of Lords to this prohibitory measure; and said, that, favourable as he was to the plans which government had in view, he felt it his duty to reprobate such an exercise of the dispensing power, and that, too, at a time when parliament was sitting, as a most dangerous precedent to the constitutional liberties of England. Lord Liverpool answered that government had not taken the step in question, until a day was fixed for the introduction of a bill into the other House of parliament upon the subject; nor had it even then been resorted to, until his majesty's government had reason to believe, that, if they had not resorted to it, there were individuals who would have left no means untried to defeat the measure then in progress; and this was done not upon light grounds, but upon the

strongest evidence that there existed a design to obstruct the intentions of parliament. If it were asked, why a short act of parliament was not introduced with reference to this prohibition, he would reply, that there did not remain time for it; as even the short delay necessary for such a purpose would have given an undue advantage to bank ers residing near the metropolis.

Mr. Hume moved, on the 9th, for "returns of the number of country banks issuing notes which have become bankrupt from January 1816 to the present time, stating the place where such banks were kept, the names and number of partners in each, the amount of debts proved, and the rate of dividends paid in every instance, as far as these particulars can be ascertained." The only opposition made to the motion proceeded on the ground of its being an attempt to investigate private affairs, and to bring before the House matters, of which the House could take no cognizance. The motion was agreed to; but it brought on a discussion regarding the character of the country banks, and the share which they had borne in producing the late embarrassments. Mr. Smith, adverting to the opinions contained in the communication from the Treasury to the Bank directors, on 13th January, that these embarrassments had found their source in a rash spirit of speculation, and that this spirit had been supported, and encouraged by the country banks, begged leave, in his own name, and in the names of the country bankers, whether in or out of the House, to give to that assertion a most distinct and unqualified contradiction. He described them as a class of men of the highest prudence, honour, and integrity; and

[blocks in formation]

The cause of the country banks was likewise steadfastly maintained by Mr. Calcraft, Mr. Gurney, and Mr. Robertson. So far, they said, from the assertion being true, that these banks had encouraged wild speculation, they had either effected positive good, or were, at least, unable to effect mischief. It was impossible to suppose for a moment, that speculations to the amount of seventeen millions, existing in the heart of the metropolis, could have been produced, or supported, by the issues of country banks; for the moment a country note arrived in London, it was converted into cash, or Bank of England notes, otherwise the issues would instantly fall in credit. It was utterly impossible for the country bankers to force into circulation a sufficient quantity to aid speculation to that extent in which government seemed to believe. Any spirit of speculation which the country banks might ever have encouraged, was not one of recklessnes and wildness, but an animating and advantageous spirit, which had long operated most beneficially in promoting our commercial prosperity. The country bankers stood in no need of a vindication either of their prudence, or their integrity. Undoubtedly in a body of seven hundred persons, there might be some fools, and some knaves; but, for their number, they were equal to any class of the

community; and, as a body, were tainted with no blemishes which did not attach in the same degree to all commercial men.

The Chancellor of the Exchequer expressed himself anxious, that the opinions, which he might have ut tered in relation to the country bankers, should not be misunder stood. In the communication with the Bank, neither he, nor the first lord of the Treasury had entertained the most distant intention of throwing out imputations on individuals. Their statements were directed against the system of country banks, as it at present existed, not against the persons by whom they were conducted; and when he said that a rash spirit of speculation had been encouraged by these banks, he meant by the banking system, not by individual bankers. Even if the language used in the communications with the Bank had been much more particular than it was, it could have conveyed no personal imputation; for every commercial man of capital or credit, is, to a certain extent, a fosterer of speculation, in no culpable sense of the word, and without any prejudice to the integrity of his character. But while he was well aware, that the majority of the country bankers were above all imputation, and while, therefore, he would feel ashamed of himself if he could intend to attach blame to their individual conduct, yet, it was his right and his duty to animadvert on their system of banking, and the effect of the laws under which it was carried on.

On the 10th of February, the whole House having resolved itself into a committee on the Bank Charter bill, the Chancellor of the Exchequer formally brought for ward the proposition for prohibit

ing the circulation of small notes. Although he allowed that fluctua tions were inseparable from trade, in defiance of any precautions which ingenuity could invent, yet their effects, if not always caused, were often aggravated, by a state of currency, and a facility of speculation like those produced by the issues of paper which now existed. The small notes, in particular, carried the consequences of these changes among those on whom they pressed most severely, They were principally in the hands of the labouring classes, and, to a person of that rank, a few of them constituted a fortune. But when a panic took place, the poor man was the first who hastened to save his little store by withdrawing it from the banker; as the alarm spread, the more wealthy imitated the growing example; and a sudden run brought with it the downfall of the bank. To replace such notes, therefore, by a metallic currency, would at once tend to the security of the banks themselves, and would limit the misfortune which their failures would otherwise produce. In fact the proposed measure was not a novelty, but had been the regular policy of the country; and its opponents alone were the true innovators. An act of parliament had been passed in 1775, prohibiting the issue of bank notes: in 1777, another act had prohibited the issuing of notes under 5.,. and, so far from its being suspected that such restrictions would cramp the commerce of the country, the Bank had, on that occasion, declared, that the issuing of such notes, besides being a political evil, was not necessary for the maintenance of our manufactures, or the prosperity of our trade The latter statute was ma

petual in 1787, and continued untouched till 1797, when its operation was suspended until two years after the restriction on the Bank from paying in gold should have expired. This suspension was not the result of any belief that the small notes were closely connected with the prosperity of manufactures, of agriculture, or of commerce, and that their circulation ought not to be interrupted. On the contrary, all parties at that time agreed that they should be withdrawn as soon as possible; and no one had contemplated their continued circulation, after the Bank should have resumed cash payments. And yet, during the whole of that period, from 1777, both manufactures and commerce had grown and prospered, notwithwithstanding the absence of the small notes.

The right hon. gentleman argued, that any apprehensions of the likelihood of injury to agriculture or commerce from the proposed measure must be founded upon this--that the prohibition of small notes would diminish the circulation by the amount of these notes, that their absence could not be supplied by gold, and, that, therefore, manufactures and trade would, to this extent, be left without their necessary and legitimate facilities. Such apprehensions were entirely visionary. During 1820, 1821, and 1822, twenty-five millions of gold sovereigns had been coined, and of these 7,209,000l. were exported. During the last half year, the amount of a million had been imported; so that the amount in the country might be taken at nineteen millions. This had been effected in consequence of the necessity of preparing for the resumption of cash payments

a

by the Bank, and was, in fact, the creation of a new basis for metallic circulation: but all that could be rendered necessary by withdrawing the small notes was, to superinduce a small circulation of gold upon the large basis which already existed. It was difficult to ascertain the amount of country bank paper in circulation at any given time; but an approximation to it might be made through the number of stamps issued. Taking this foundation, and looking at the average of the last three years, it might be estimated that something more than six millions was the amount of the country small paper current in 1825. But it was not possible that such could be its amount at the present moment; for, in consequence of the necessity of paying immediately in gold, the country bankers had been unwilling to send forth a larger amount of paper than they were able to take up, and a considerable proportion of gold coin had thus found its way into country cireulation. The present amount of country paper could not be estimated at more than four millions; and the practicability, therefore, of filling up, in the course of three years, the vacuum produced by withdrawing that amount from circulation, was the utmost extent of the question which the proposed measure could raise. Thus any notion of the impossibility, or even difficulty, of supplying the place of the small paper, was groundless. Some difficulty and inconvenience might be experienced in certain places, and under certain circumstances; but they could not be general, or such as ought to deter parliament from applying a decided remedy to the evils which we had suffered. The

« EdellinenJatka »