he had entertained of it he had more than once communicated to their lordships, and he had then only farther to say, that his opinions had not since undergone any change. He was nevertheless open to conviction, and when ever the question for reconsideration might be proposed in that House at the period of a session when there would be time for discussing it effectually, he would willingly enter into such discus

sion.

The motion for a second reading was then negatived.

On March 4th Lord A. Hamilton rose for the purpose of bring. ing forward his promised motion on the subject of the Bank. With a view to understand the conduct of the Bank he felt it necessary to move for copies of the notices issued by it for the payment of certain of its notes in cash within the last year. A pretty general impression prevailed, that those notices were issued merely for the purpose of delusion, and to induce a belief that the Bank was in possession of the means, and was in the progress of preparing to resume its payments in cash. It was therefore due to the character of the Bank, as well as to the satisfaction of the country, to explain the motive and end of those notices. It was now clear that there was no intention of resuming cash payments. A plea was advanced for postponing that measure, arising out of certain negotiations for foreign loans; but this he believed to be a mere pretence. The country, he thought, had not much reason to rely upon the professions or promises of either the directors of

the Bank, or the chancellor of the exchequer, as to the probability of the removal of the restriction upon cash payments; but it was for the Bank to show whether any, and what beneficial effect had arisen from the steps it was reported to have taken for the resumption of its payments. This was the object of his motion; and that motion could not be resisted on any such grounds as were advanced by the chancellor of the exchequer towards the close of the last session. The noble lord concluded with moving, "That there be laid before this House a copy of any notice given by the Directors of the Bank to the Public in the year 1817, respecting any payment of their notes in specie; together with an account of the amount of specie which in consequence of such notice the company of the Bank became liable to pay, and the amount actually paid, to the latest period the same can be made out."

The Chancellor of the Exchequer said, that the noble lord might anticipate his objections to this motion if he recollected the grounds on which he resisted a similar motion last year. These were, that nothing would be so unadvisable on the part of that House as to interfere with the conduct of the Bank in a case of this nature; that such interference was of all things the most likely to derange the proceedings of that body, and to impede those preparations so necessary for that final resumption of cash payments which it was the wish of that House and the country to witness. Yet the noble lord would deem

it safe and convenient to bring those preparations under the view of that House. The best plan to pursue was, to allow the Bank to proceed silently and cautiously in the progress of its preparations.

Into the circumstances which had since occurred, or were likely to occur, to postpone that resumption, he was not then disposed to enter; but he would maintain that the Bank was entitled to confidence for the rectitude of its conduct, and its disposition to comply with the wishes of parliament and the public, as soon as it should be deemed advisable to remove the restriction. He could not, therefore, sanction any measure which implied doubt as to this institution; and he felt it his duty to oppose the noble lord's motion.

Mr. Grenfell remarked, that the motion was more interesting to the cause of the Bank than to that of the public; and therefore he was surprised to find that no director rose to speak upon it, especially as he had lately seen no less than four directors in the House. The chancellor of the exchequer was always ready to step forward as the champion of the Bank, without the aid of a single speech from any of the Directors of that institution; of the votes of all of whom, how ever, he was of course fully assured, especially upon any question connected with their own interest. As to the motion of his noble friend, the chancellor of the exchequer's objections were the same, he perceived, as those which he had advanced to a similar motion in July last. The case of the country, as well as

that of the Bank, were, however, rather different at the present time. In July the chancellor of the exchequer observed, that to accede to his noble friend's motion would only serve to gratify an idle curiosity, as the Bank had virtually resumed its payments in cash. But this was a statement which the right hon. gentleman would hardly venture to make on the present occasion. The motion of his noble friend, against which the right hon. gentleman had advanced neither fact nor argument, was such, in his opinion, as the House ought to adopt, especially with a view to obtain such information as was peculiarly necessary to guide its judgment upon the discussion of the bill, which was soon to be expected for the farther continuance of the restriction upon payment of cash by the Bank. The House divided: Ayes, 11; Noes, 34.

the

Mr. Tierney then rose to declare his purpose of moving for the production of certain papers connected with the issues of the Bank of England, to which, he understood, no objection was intended. The motion went to the farther continuation of the weekly accounts of issues of the Bank from the third of February to the third of the present month (March). It was necessary for him to advert to some circumstances in order to put the House in possession of what was his object in moving for the produc tion of the accounts of the weekly issues, and of the course which it might be his duty to take respecting the engagements of the Bank with the country as to the re

sumption

sumption of cash payments. In the first place, he begged to deny that he had ever expressed any doubt as to the fact of the Bank's having accumulated a large amount of specie in their vaults; but what availed that accumulation with respect to the return of payments in cash, if there was such a progressive increase in the amount of the outstanding notes, as tended to counteract the specie accumulated. At the end of the last session the chancellor of the exchequer had declared, that there was no doubt of the resumption of cash payments by the Bank at the expiration of the time specified by law. Now all must agree, that whenever that resumption should take place, it would be attended with a considerable diminution of their issues, and probably with great and natural alarm. It was by no means his desire that such a measure should be brought about by any sudden stoppage of the issues, but rather that the Bank would gradually withdraw its outstanding notes. But what inference did the conduct of the Bank, since the last meeting of parliament, afford on this head? There were on the table of the House the amounts of issues for 18 months, from July, 1816, to December, 1817, from which it appeared that the issues in the first six months of that period amounted to 26,300,000l.; in the second to 27,400,000l.; and in the last to 29,000,2561. Thus it was evident, that if the Bank, in place of preparing for the resumption of their payments in cash at the time specified by law, had determined to multiply impediments

to such a result, they could not have more dexterously managed to effect the latter object than by the conduct they were pursuing. Ifthese preparations tended to multiply difficulties, rather than to facilitate the return to payments in cash, he must say, that there was a juggle going on, disgraceful to the Bank, and discreditable to the government. In that case the Bank had turned its back upon its duty, either to amass property for itself, or to show its subserviency to the Treasury. If in the accounts he now moved for, and those for which in April he intended to move, he should see progressive reduction, he would then feel that the Bank were in earnest in their preparation. The right hon. gentleman concluded with moving for " The total weekly amount of Bank notes, and Bank post bills_in circulation from the third of February to the third of March, 1818; distinguishing the Bank post bills, the amount of notes under the value of 51. and stating the aggregate amount of the whole."

The Chancellor of the Exchequer said, that he did not intend to oppose the production of this account, nor did he think the present a fit period for entering into a consideration of the general question. He agreed for the most part with the principle maintained by the right hon. gentleman, that the reduction of the issues of the Bank was a necessary means and preparation for enabling them to resume their cash payments. He had, however some limitations to suggest to the broad proposition, that it was the only means.

The

The motion was agreed to.

On April 9th the House of Commons having, on the motion of the Chancellor of the Exchequer, resolved itself into a committee on two acts, namely, the Bank Restriction act, and the act for the regulation of Private Bank Notes, the Chancellor of the Exchequer submitted to the committee the propositions of which he had given notice.

In order to render what he had to say as intelligible as possible, he desired the committee to revert to the state of things under which the Restriction act had been originally passed, and at various periods had been renewed; which, at the last renewal of that act for two years in 1816, took place with the understanding that the Bank should employ that interval in providing for the resumption of cash payments at its expiration. It would also be indispensable to advert to the course of exchange during a considerable portion of the period to which he had alluded. Prior to the retreat of the French army from Russia, at the close of

the

year 1812, the price of gold bullion was 51. 12s. an ounce, and of silver dollars 6s. 6d. an ounce. At that time, therefore, any attempt to restore the metallic currency of the country would be utterly unavailing, as the coin would have been collected and melted as fast as it issued from the coffers of the Bank. But when the French army retired into Germany, and when a prospect arose of a successful termination of the war, gold fell to 51. an ounce; and subsequently, when the allies got possession of Paris, to 4l. 6s. 6d., and there was VOL. LX.

every indication of its speedily falling so low as to enable the Bank to resume their payments in cash. The unfortunate events, however, which took place in the Spring of 1815, and which again involved Europe in the calamities of war, prevented the pleasing prospect from being realized. After the return of Buonaparte to France gold rose from 47. 6s. 6d. to 5l. 7s. per ounce. From the period, however, at which hos. tilities ceased, it was but justice to the Bank to state, that they had adopted every measure of precaution which might enable them to resume cash payments with safety. Their collection of specie had been very rapid, and to a large amount; and in January 1817 they tried an experiment by giving notice that they were ready to make payments in cash of outstanding notes of a certain description. The payment for which cash might have been demanded was about one million sterling; but so little anxiety was manifested by the public to avail themselves of the offered payment, that a very inconsiderable sum was required of the Bank for that purpose. At that time gold bullion, which had been continually falling in price during the preceding year, was reduced to 37. 18s. 6d. ; and silver to 4s. 10d. the ounce.

In October last the Bank of England, having experienced no inconvenience from their former experiment, were induced to try another on a more extensive scale. A regular notice was issued, in pursuance of the directions of the act of the 37th of the present king and its amendments, that on [F]

and

and after October 1st the Bank would be ready to pay cash for their notes of every description, dated prior to January 1st, 1817. But the result of this experiment was considerably different from that of the former. Payment in cash was demanded to a large amount; not for the purpose of internal circulation, but for that of being remitted to foreign countries. It appeared from a return made to the other House of Parliament, that the Bank issued under their last notice a sum not less than 2,600,000l., of which hardly any part remained in circulation in this country.

He would now call the atten. tion of the committee to the cir. cumstances which had occasioned the difference in the result of the two experiments made by the Bank, in order to show how unadvisable it would be, under the present circumstances, that the Bank should resume cash payments. Of these circumstances the first he would instance, was the deficient harvest of 1816, which was followed by an ordinary one in 1817, the consequence of which was, that the quantity of corn which it became necessary to import had taken a great deal of specie from the country. The second was, the sums drawn out of the country by emigrants from it. He held in his hand an account of the number of persons, who had embarked at Dover for the continent, and who had returned from the continent to that port, and it is to be observed that Dover is so much the most considerable port for embarking to the continent, that all the emigration from other ports may be

considered as unimportant. It appears then, that the whole number of persons who, from the year 1814 to the 24th of February last, had embarked at Dover for the continent amounted to 90,230, exclusive of aliens, whose number amounted to somewhat above 11,000. The number of English who, during the same period, had returned to Dover, amounted to 77,530. He did not mean to deny that many persons might be included twice in the return, but that did not affect the conclusion that might be drawn from it. The difference between the two numbers he had stated was 12,700; so that it might safely be affirmed that the number of English abroad did not exceed 13,000. If it were assumed that these individuals expended on an average 2001. a year each, the account of their annual expenditure would be somewhat above two millions and a half. But in addition to that, the committee must take into their account the large sum expended by our army abroad; for although the French government provided for the support of the troops, still it was notorious that great private expense was incurred by the officers.

of

There was another circumstance of a very extraordinary nature which materially contributed to the change in the state things; he alluded to transactions which had taken place in the course of the last two years, namely, the negotiation in this country of large loans for foreign powers. In June 1816 the French government raised here six millions of francs of rentes, the sum borrowed for which amounted to

about