Page images
PDF
EPUB

under the act of the 57th of the king, commonly called deficiency bills, should be discharged before this measure could operate. The sum required for the discharge of these bills, in the course of the last two years, amounted to not less than 3,300,000l., and the only advantage which the public could obtain by the measure, must be limited to the saving of interest on the casual and temporary employment of about 2,300,000l. after the deficiency bills were discharged, which, upon an average throughout the year, would not be more than equal to one million.

The Earl of Liverpool reminded the House, that the question as to the advantage the public ought to derive from the balances deposited in the Bank, had been very fully considered in 1807 and 1808, when the Bank proposed to advance a loan of three millions without interest, which it was then thought advisable to accept, rather than the other alternative. With regard to the average amount of the balances in question, it was probable that the sum would be ultimately not less than four millions. As to the balances to which the noble marquis had alluded, he had no difficulty in stating, that it had not been thought proper to extend the principle further at present, while an inquiry was going on which had for its object the affairs of the Bank.

The bill was then read a third time, and passed.

On April 5th, the Earl of Har. rowby presented to the House of Lords a report from the Secret

Committee appointed by the House to inquire into the state of the Bank with reference to the resumption of Cash Payments. The report stated the notice by the Bank of their intention of paying in cash certain notes issued prior to 1817, which notice had been acted upon, and had caused a considerable drain of specie; and it recommended, with a view to the more speedy and effectual resumption of cash payments generally, that the Bank should be prohibited from paying in gold the notes for which such notice had been given. His lordship mentioned his intention to bring forward a legislative measure on the next day, in unison with the recommendation contained in the Report, with a view to the speedy passing of which, he should move that the standing orders should be taken into consideration to-morrow, in order to their suspension.

Earl Grey expressed his astonishment at the proposition which had so unexpectedly been made, and from which he could draw no other conclusion than that the conduct of the ministers towards the Bank was the result either of ignorance, or fraud. He could conceive no necessity for such a measure short of that which operated in 1797; and if that case had occurred, he contended that the same course ought to have been resorted to, namely, that the privy council should, upon their responsibility, have directed the suspension of cash payments at the Bank, and then would have succeeded the legitimate func

tions of parliament to have investigated the grounds on which that determination had been come to. He had felt it his duty to say thus much upon the very unexpected proposition brought forward by the noble earl, and against which he must now de cidedly and solemnly protest.

The Earl of Harrowby said, he had not given any notice in his situation as one of the king's ministers, but in his capacity as chairman of the committee by whom this report had been unanimously agreed to. Neither was there the least foundation for the supposition that this measure was required on the part of the Bank; on the contrary, there was no doubt whatever of its ability to make good all its engagements. The reason of the measure was, the opinion of the committee, that in order to ensure at the earliest period the permanent resumption of cash payments, it was expedient to pass the measure alluded to.

Some other lords spoke upon the subject; after which, Earl Grey rose again, and after asserting that he thought the measure proposed was pregnant with danger, but being aware that several of his noble friends viewed it in a different light, he said, that there being now a question before the House, the only mode to which he could resort was, to move that the House do now adjourn. The question of adjournment was put and negatived. The standing orders were ordered to be taken into consideration tomorrow, and the Lords to be summoned.

In the House of Commons, on

April 5th, the first report of the Secret Committee on the expediency of the Bank resuming Cash Payments, was made to the following effect:

"The Committee of Secrecy appointed to consider the state of the Bank of England, with reference to the expediency of the resumption of cash payments at the period fixed by law, and into such other matters as are connected therewith; and to report to the House such information relative thereto, as may be disclosed without injury to the public interest, with their observations thereupon, are engaged in deliberating upon their report, which they hope to present to the House on an early day after the approaching recess. The committee having a confident expectation that, in that report, they shall be enabled to fix a period, and recommend a plan, for the final removal of the present restriction on the Bank, think it their duty to submit to the House, that the execution of any such plan would, in their opinion, be materially obstructed and delayed by a continuance of the drain upon the treasure of the Bank, on account of the engagement of the Bank to pay in cash all its notes outstanding, of an earlier date than January 1st, 1817, and on account of the payment in cash of fractional sums under 51. That the committee therefore think it their duty to suggest to the House, the expediency of passing forthwith a bill, restraining all such payments in gold coin, until the report of the committee shall have been received, and considered by the House,

[ocr errors]

and

and a legislative measure passed thereupon."

Mr. Peel then rose, and moved for leave to bring in a bill founded on the Report which had been just read. Its object would be, to restrain the issue of sovereigns for fractional payments under 5l., in consequence of notices issued in the course of 1816-17, in which the Bank undertook to pay in specie all notes dated previously to the 1st of January 1817. In consequence of these notices, the treasure of that body had suffered a very considerable drain. Accounts had been presented to the House of the issues of sovereigns between the 1st of January 1816, and the first of January of the present year, in which time it appeared that 4,500,000. had been issued from the Bank: 700,000l. had afterwards been issued; so that the whole sum amounted to 5,200,000l. of treasure which had been withdrawn from the Bank. The object of the bill would be, to restrain, till the expiration of the present session of parliament, issues of cash such as he had described. The delay would enable the House to consider the subject, and to take the measures which the committee might hereafter suggest. The reasons for this measure lay within a short compass. Whenever the time came for removing the restriction, a large sum in cash would be necessary, much exceeding what the Bank had at present in its possession. This diminution of its treasure would make the Bank less able to return to cash payments, and would therefore tend to postpone the period for the termination of the

restriction. It was for these reasons, and in the fullest confidence that it would hasten the period of cash payments, that he should propose the measure. He was also equally confident that the restoration of a standard of value in this country, as invariable as the nature of things admitted of, would not be accompanied by those inconveniencies which some persons apprehended.

The right hon. member then moved "for leave to bring in a bill to restrain the Governor and Company of the Bank of England from making payments in cash, under certain notices given by them for that purpose." He then added, as it was of the highest utility that the measure should pass as expeditiously as possible, he hoped the House would allow it to go through its several stages that evening.

Mr. Brougham said, that he felt himself considerably embarrassed by the course taken by the chairman of the Bank committee, who proposed to them a measure not on their confidence in the responsible advisers of the Crown, not on their acquiescence in the arguments of a committee of their own; but on the allegation of something not explained, they were called upon to pass a measure of great importance, not only without discussion, but without the possibility of discussion.After reasoning for some time respecting the peculiarity of the case, Mr. B. asserted that nothing could have induced him to concur in the measure if it were merely necessary to support the credit of the Bank, but if he thought the stability of that establishment,

and

and through it the mercantile credit of the country, were in danger from the payment of old notes, and fractional sums, however he might blame the Bank for their improvidence, he should have felt it necessary to protect the country from the consequence of this imprudence.

Lord Castlereagh said, that if the measure had been brought forward simply for the convenience of the Bank, or for the support of its credit, it would have been unfit that it should have been disposed of in the way now proposed. But they might be assured that the credit of that body was so high, that there would not have been any necessity to have interposed between the Bank and its creditors, except for public convenience. The hon. and learned gentleman had fairly said, that the question before the House was a balance of inconveniences; but he trusted the facts would support the measure proposed. To-morrow or the next day the dividends would be in a course of payment; and if the measure were not carried through as fast as the forms of parliament would admit, notice would be given to all holders of notes of an early date to carry them for payment. He hoped, however, that the House would concur in speedily carrying the

measure.

Mr. Tierney affirmed that this was one of the most important measures that could be brought before parliament; and if one thing surprised him more than another, it was the extraordinary composure with which the proposition had been received. Of this he gave several instances; but,

said he, necessitas suprema lex, and it was necessary to examine how the question of the issues stood. It was in 1817 that the notices were issued under which the payments were made, and the drain had gone on without answering any other purpose than to enable the chancellor of the exchequer to make a speech, to say that cash payments were virtually resumed. In the last year he had brought in a bill for continuing the Restriction act; and at that time he saw with his eyes wide open the drain which was then going on more rapidly than at any, time since, yet took no step to stop it. What was the time when this alarm first came upon him? Why, no sooner than this day at twelve o'clock. For his own part, till yesterday, he should no more have thought of the committee making such a report, than of their doing the most improbable and extravagant thing in the world. The House at large were in the dark from knowing too little; he, on the contrary, was in a difficulty from knowing too much, as a member of the secret committee, and was continually afraid of letting some of his knowledge out. But to mention a fact that was no secret: what had been the conduct of the Bank? Their whole object, it was said, was, to resume cash payments. They lived in the hope of it, and the delay was misery. It was not, however, to such a degree as to induce the Court of Directors to come to any resolution on the subject; and so quiet were they, that no conversation had taken place between the governor and the chancellor of the exchequer for the last three months.

What

What was the reason for so rapidly passing this measure? Why, merely from a mysterious recommendation from the committee, that the adoption of such a measure was necessary to enable the Bank to resume cash payments at some time-it was not stated when. It was said, on the part of the Bank, that they did not ask for this measure. But it was for the House to consider whether it would allow, upon such a suggestion, all its usual forms to be suspended, of the necessity for which it had no evidence what

ever.

Lord A. Hamilton conceived the measure to be only a continuance of the system of restriction; with this difference, that when such a measure was proposed before, some grounds were stated for it, and these grounds were discussed, but at present it was to be carried without any discussion of its merits.

Several members spoke on each side of the question on this debate. At length,

[blocks in formation]
« PreviousContinue »