although Lord King's act, in this instance, was not only legal, but founded on a principle of justice; yet after that notice had been so public, it was necessary that some law should be made upon the subject. Every body had the same legal right to demand payment in money; and many might have insisted on that legal right, without having equal justice on their side. A man who had deposited a thousand pounds in Bank notes with his banker, might also, by law, demand payment in money the very next hour. Although Lord King would not be supposed, by any one who knew him, to be actuated by any motives but such as were just and honourable; yet when a precedent was once set, the example might be followed by other persons in cases palpably unjust, and every man in society might be thrown upon the mercy, or the caprice, or the malice of any other man with whom he had dealings.

He had therefore approved of that clause of the Act which virtually made Bank-notes a legal tender; but he could see no use in that part which made it criminal to sell gold coin at more than the nominal value. In the silver coin, too, we had the half-crown piece, which could only be passed for two and sixpence; while the three shilling piece, which was intrinsically of less value, must pass for three shillings. Now, the necessary consequence of laws which thus attempted to regulate our currency was, not to make guineas, half-guineas, crowns, half-crowns, or even good shillings, circulate at a nominal value, but to make them disappear entirely from circulation, and cease to be part of our currency.

The Bill had, in fact, been found to be impracticable in this respect. Had it caused guineas to circulate? or was it not evident that they had been withdrawn from circulation? He would even ask, had it at all prevented people who were so disposed, from selling guineas at their real value?

A few low and ignorant people had been convicted; but they were persons who had only saved two or three guineas, and were seduced and entrapped into the commission of the offence for which they were prosecuted. Where the thing was done on a large scale, the risk was very small. Millions of guineas had actually been exported from this country since the passing of this law, notwithstanding all the vigilance which Government, and the Custom-house officers, could employ to prevent it. The old laws prohibited, under the severest penalties, either the exportation of the coin, or the melting it down; and yet it had been found absolutely impossible to prevent either the one or the other. In fact, the risk of violating the law could not be calculated at more than five, while the premium for violating it was at least twenty-five per cent.

Many gentlemen appeared to be much alarmed at the dangers which they supposed would ensue from two prices —a gold price and a paper price. Now, he did not see any ground for such alarm. In the reign of William III., when our silver coinage was much debased, there were, in fact, two prices; for at that time guineas were not restricted to the nominal value of twenty-one shillings. In Ireland, while guineas were openly allowed to be sold for what they would bring, there was no inconvenience found in those prices. In fact, the price of every thing was calculated in paper, and a premium was given for guineas. A purchaser with gold, procured more goods than the purchaser who tendered a nominal sum in paper. In Portugal, also, the circulation had been partly metallic and partly paper, which paper was depreciated. Now, as in Portugal they had no laws to force people to consider paper and gold of exactly the same value, the consequence of the two prices was only, that their gold coin still remained in circulation at its real value; whereas by the effect of our laws, the

gold coin was driven out of circulation. Now, our Government had found it a very great advantage in their military operations on the Peninsula, that there was always Portuguese gold coin to be got on paying the real value. Whereas, if this country-which God avert !—was ever to become the seat of war, the Government would not find a single million of gold coin in it, whatever they might be disposed to give for it. There was a time, in Portugal, when our military chest was in the greatest distress, and yet there was half a million of Portuguese paper in it. If it were asked, why was not this paper put into circulation? the answer was, that the Portuguese remonstrated against it, as likely to produce a great depreciation of the paper. To the statesmen of other countries it had appeared, as it had done to the members of the Bullion Committee, that to limit the issue of paper was the surest way to prevent its depreciation. We found it impossible now to persuade the Portuguese, that our Bank paper was of the same value as the money it purported to represent; for now the value which they set upon the pound-note was but fourteen shillings.

For the reasons which he had stated, and because it appeared to him, that the second part of the Bill was not founded on any necessity, and only encouraged the exportation of our coin, he thought the House should confine itself to those provisions of it, by which the public creditor, who was compelled to take Bank-notes, was protected, and by which relief was also afforded to the great body of debtors throughout the country.

The Report was agreed to.

MR. VANSITTART'S NEW PLAN OF FINANCE-STATE OF THE FINANCES, AND THE SINKING FUND OF GREAT BRITAIN.

March 3, 1813.

The House having resolved itself into a Committee of the whole House, the Chancellor of the Exchequer opened his new Plan of Finance, and concluded with reading the following Resolutions:

1. "That the total capital of the Funded Debt of Great Britain, on the 5th of January, 1786, was 238,231,2487. 5s. 23d.; that provision was made for the gradual reduction thereof, by an Act passed in the same year; and that further provision has been made by several Acts since passed, for the more effectual reduction of the said debt, and of the public debt since contracted.

2. "That by virtue of the said Acts, the sum of 238,350,1437. 18s. Id. exceeding the said sum of 238,231,2487. 5s. 23d., by 118,8957. 12s. 10дd. had, on or before the 1st of March, 1813, been actually purchased by the Commissioners for the Reduction of the National Debt, or transferred to the said Commissioners, for the redemption of land-tax, or for the purchase of life-annuities.

3. "That it is expedient now to declare, that a sum of capital stock, equal to the total capital of the public debt existing on the said 5th January, 1786, hath been purchased or transferred as aforesaid; and, so soon as further sums of the public debt shall have been so purchased or transferred, making, in the whole, an amount of annual charge of the public debt so purchased or transferred, equal to the whole annual charge of the public debt existing on the said 5th day of January, 1786; to declare further, that an amount of public debt, equal to the whole capital and charge of the public debt existing on the said 5th day of January, 1786, hath been satisfied and discharged; and that, in like manner, an amount of public debt equal to the capital and charge of every loan contracted since the said 5th January, 1786, shall, successively and in its proper order, be deemed and declared to be wholly satisfied and discharged, when and as soon as a further amount of capital stock, not less than the capital of such loan, and producing an interest equal to the dividends thereupon, shall be so redeemed or transferred.

4. "That, after such declaration as aforesaid, the capital stock purchased by the said Commissioners, and standing in their names in the books of the Governor and Company of the Bank of England, and of the South-Sea Company, shall from time to time be cancelled, as if the same had been transferred for the redemption of land-tax; at such times, and in such proportions, not exceeding the amount of debt so declared to be satisfied and discharged (after reserving thereout any sum or sums necessary to make provision for the payment of all Life Annuities chargeable thereupon) as shall be directed by any Act or Acts of Parliament to be passed for such purpose; in order to make provision for the charge of any loan or loans thereafter to be contracted, upon the same funds or securities as are chargeable with the said stock, so declared to be satisfied and redeemed.

5. "That, in order more effectually to secure the redemption of the Public Debt, conformably to the provisions of the Act of the 32d Geo. III. cap. 55, it is expedient to enact, that all sums granted for the reduction thereof, by the several Acts aforesaid, should be further continued and made applicable to the reduction of all Public Debt now existing, or which may be hereafter contracted, during the pre

sent war.

6. "That, in order to carry into effect the provisions of the Acts of the 32d and 42d of the King, for redeeming every part of the National Debt within the period of forty-five years from the time of its creation, it is also expedient that, in future, whenever the amount of the sum to be raised, by loan, or by any other addition to the public funded debt, shall in any year exceed the sum estimated to be applicable in the same year to the reduction of the Public Debt, an annual sum, equal to one-half of the interest of the excess of the said loan or other addition, beyond the sum so estimated to be applicable, shall be set apart out of the monies composing the Consolidated Fund of Great Britain, and shall be issued at the receipt of the Exchequer, to the Governor and Company of the Bank of England, to be by them placed to the account of the Commissioners for the reduction of the National Debt; and upon the remainder of such loan or other addition, the annual sum of one per cent. on the capital thereof, according to the provisions of the said Act of the 32d year of his present Majesty.

7. "That, in order to prevent the increase of the Public Debt by means of Exchequer Bills annually renewed, it is expedient that, on the 5th of January in every year, an account be taken of all Exchequer Bills outstanding and charged upon funds not deemed capable of