years been ineffectually recommending. unnecessary. How was it possible, while Whether the present embarrassments the great bulk of the population were arose from over-trading, an over-issue of paper, or any other cause, he knew not; but of this there was no doubt, that the revenue had decreased. The same causes might recur again, and the same consequence follow. The only way of guarding against such an inconvenience was by a system of retrenchment and economy. By no other means could the country ever hope to see an efficient sinking fund. Had they commenced upon a principle of retrenchment ten years back, and acted upon it steadily, how different would the state of the country now be! Instead of kept in their present state of exclusion, that there could be tranquillity or content? He rejoiced, however, at the prospect of any measures that might tend to better the condition of that country. But, nothing could be permanently advantageous, until the Catholics participated in all the constitutional privileges of their fellow-subjects. This being once done, they might safely draw off the immense standing army which they now found it necessary to maintain for the purpose of overawing the people. Though not prepared to support the amendment a sinking fund of 5,000,000l., it might ❘ of his noble friend, he had felt it his duty have been eight, ten, or even twelve millions; and thus would not only a great part of the interest of the public debt have been got rid of, but a considerable part of the principal. There was not a single branch of their expenditure in which retrenchment should not have been introduced long ago; but the largest reductions should have been made in the standing army. There was no reason on earth, why the army should not have been greatly reduced, as had been the case on the termination of all former wars. This was also most important in a constitutional point of view. What was this large army wanted for? At one time, the cause assigned was the existence of a party called the radicals. But, did their lordships not recollect the events that took place at Manchester? There a more numerous body than had, perhaps, ever assembled upon any former occasion, met together. They created considerable alarm; but, formidable as they appeared, they were dispersed by a handful of yeomanry. Was not this a sufficient proof that the peace of the country might be preserved without such a large and unconstitutional army as the country was called upon to support? Had we husbanded our resources, how much better able should we now be to meet the expenses of the disastrous war in India. He did not know to whose counsels that war was to be attributed, but this he would say, that they had much to answer for, unless they could shew clearly, that it was founded on necessity and justice. Then, with regard to Ireland. Those had much to answer for who refused to concur in a measure which would have effectually secured the peace of that unhappy country, and rendered a large military force to throw out these few observations. Lord Teynham said, he should oppose the amendment. With respect to the Corn laws, it should be recollected that the country was at present in an artificial state; that we were subject to an enormous taxation; and that while such was the case, it was not to be expected that the grower of corn here could compete with the foreign grower upon any thing like equal terms. The agricultural interest had been always anxious to lighten the distresses of the other classes of the community. The difficulties of the present time did not arise from the corn laws, but were mainly to be attributed to that spirit of ruinous speculation which had unfortunately taken possession of the country. He did not see how the present military establishment could be reduced, consistently with the best interests of the country. He trusted that, in conformity with the suggestion thrown out in the Speech from the throne, such measures would be adopted as would prevent the recurrence of the difficulties which had lately been experienced in the moneymarket. The Marquis of Lansdown said, he did not rise for the purpose of at present discussing the unfortunate topic which formed so prominent a part of the Speech from the throne, for it would be impossible for the House to enter upon that topic, without having received any information respecting the nature of the views and intentions of his Majesty's government. It was a subject upon which he could not say any thing, without saying a great deal; he would not, therefore, now attempt to inquire how far that measure would be obliged to receive re-consideration, which authorized the issuing of 11. and 21. notes; how far the present embarrassments were owing to that measure, to the other laws relating to banks, and to the monopoly of the Bank of England; or how far any of these causes had produced the evil now admitted to exist. All he meant to do at present was, to claim a complete reserve on the part of himself and of the House, as to their opinion respecting the possibility of the application of any corrective, or of that in particular which seemed to becontemplated by the king's government. He did not even wish to call on the noble earl opposite to state more particularly at present the nature of his proposed corrective, because he did not think that the address pledged the House to any thing upon that subject. The case was the same with respect to the Corn laws. Not that he did not think it would be incumbent on their lordships, and the members of the other House of parliament, to express their distinct opinion upon these subjects; but that they were not called on to do so in the absence of that information which he believed his majesty's government had been endeavouring to procure. The same observation applied to the state of the currency, as well as of prices in this country, because he believed it would be impossible to separate these questions from each other, and also from the question of free trade. Having said this, he trusted he had said enough to preclude himself, and he hoped others, from entering upon the discussion of these topics at present, leaving it to the noble earl, if so disposed, but not at all pressing him, to state more particularly the nature of his intentions upon the subject; and also whether he had any measure in view respecting the state of Ireland. The Earl of Liverpool said, that he did not feel himself warranted in intruding on the attention of the House for the purpose of entering into a discussion upon the several very important topics which naturally grew out of the Speech from the throne, and which undoubtedly involved questions of the greatest political interest. After the statement made by the noble marquis, he certainly did not conceive himself called upon to enter upon the consideration of those important points on the present occasion. At the same time he considered it necessary, with respect to a question of so much political interest, that he should use no reserve-not as to details, for it would be impossible to treat of them with effect at that moment-but as to the general nature of the measures which it might be the disposition of government to propose. He would therefore trouble their lordships with a very short statement. In the first place, however, he would call their attention to this circumstance, that the convulsions in the pecuniary transactions of the country were not unexpected by him or by other members of his majesty's government. Their lordships might recollect that in March last, he would not say he took, he created almost, an occasion of stating to their lordships what, sooner or later, would be the effect of the rash spirit of speculation which then existed in the country, and of giving notice, in a few words, to their lordships and the country, that if the consequences which he predicted did arise, the relief which had been applied on former occasions would not again be applied to meet the new evil. He had given that warning, in anticipation of what was to come. He had told those persons who, by rash speculation, might become involved in distress and ruin, that they must abide by the consequences of their own acts, and that they would have no right to expect from government and parliament that relief which had been afforded on some former occasions. A noble baron had adverted to what he conceived to be the causes of the recent events. When the proper opportunity arrived, he would not be disposed to avoid discussion on that point. There was one cause, however, so prominent and so great in magnitude, that even if he were disposed to allow that other circumstances might have acted in the way of aggravation, yet this cause was so complete in itself, that it was sufficient to account for all that had happened. Their lordships knew the general spirit of mad speculation which had prevailed in the country during the last two years, and they would at the same time recollect his having stated, on the occasion to which he had before referred, that that spirit was not confined to the metropolis alone, but was extending itself all over the country through the medium of the country banks. It must be evident that, from the peculiar nature of the circulation of country bank notes, it was extremely difficult to state precisely what was the amount of that circulation at any particular period. But there was a document which showed the progressive state of the country banks' circulation with sufficient accuracy to serve the purposes of general reasoning. All and therefore parliament had it in its power to call for a return of the number stamped for each banker. Now, it appeared from a return, which would be laid on their lordships' table, that in the years 1821, 1822, and 1823, the average number of notes stamped in each year was four millions and one or two hundred thousand. He spoke of their value, not of their numerical amount. The difference between particular years within that period, never amounted to more than one or two hundred thousand pounds-a difference which might easily be accounted for by incidental circumstances. In 1824, when the spirit of mad speculation to which he had referred first began to prevail, the amount of country bank notes increased to about 6,000,000%.; and, in 1825, it increased to more than 8,000,000l., being double what it was in 1821, 1822, and 1823. Was it not sufficient to state that fact to their lordships, to account completely for all the evil effects of over-trading and rash speculation upon the general interests of the country? He did not deny that, during the same period, there had been some increase of the Bank of England paper; but it bore no proportion whatever to the increase in the general circulation of the country banks. The noble lord who commenced the debate had accused ministers of having participated in causing the existing embarrassments, by endeavouring to lower the rate of interest. If ministers had introduced any forced measures which could operate to lower the rate of interest, such conduct would have been highly blameable; but he denied that ministers had done any thing of the kind. What were the facts? There was a rise in the price of public securities, and a lower rate of interest, the consequences of continued peace and the prosperous state of the country. Government would have been highly reproachable, if they had not taken advantage of those favourable circumstances, in order to reduce the burthens of the people. By the measures which they adopted, they had been able to take off 1,800,000l. of taxes, and to reduce the interest of the national debt, in the first instance to the extent of 1,400,000l. and subsequently of 150,000l. a year. - He had very shortly stated these points, because he might have occasion hereafter to go more into detail, when it would be his duty to endeavour, in some degree, to point out a remedy for the present state VOL. XIV. country banknotes required to bestamped; | of things. He agreed with that part of his Majesty's Speech which stated, that for the effects of over-trading, and rash speculation growing out of the prosperity of the country, no cure could be found in legislation, and that it was only to be found in individuals having a due sense of the danger and inconvenience to which they exposed themselves by such acts. But, he likewise concurred with the declaration in the royal Speech, that correctives and palliatives might and ought to be applied for the present distress. It was no fault of his noble friend near him (lord Bexley) nor of himself, that the measures which it was the intention of ministers to bring under the consideration of parliament had not been before adopted. He would give their lordships a short description of them. The measures which would be brought forward were not new. They had, on former occasions, been brought under consideration. From what causes they had failed, was a question which it was not necessary to discuss. It was sufficient for him to show, that they were not new ideas, drawn out for the first time by present circumstances. The putting of some check, in one way or other, on the issue of small notes, was a plan suggested by his noble friend. So likewise was an arrangement with the Bank of England, having for its object to alter the situation in which that establishment stood with the public. He had no difficulty in stating what it was intended to propose on the present occasion. Indeed, he thought it better that no uncertainty should prevail on the subject; for it frequently did more mischief than a full knowledge of the general purport of the measures which government meant to adopt. He had therefore no difficulty in stating, that one of the measures which government intended to submit for the consideration of parliament, was a regulation, by which one and two pound Bank-notes would be gradually withdrawn from circulation, and a metallic currency substituted for them. Another measure which government would propose had become of essential importance to the interests of the country. He did not mean to join in the reflection which the noble baron had cast upon the Bank of England; but he was perfectly satisfied-and he had entertained the conviction for years-that the country had grown too large, that its concerns had become too extensive, to allow of the exclusive privilege of the Bank of England. C ! The privilege of the Bank might have been highly useful in the early period of our commercial transactions; but the country was now too large for any one such exclusive establishment. The Bank of England's privilege operated in a most extraordinary and, he thought, a most unfortunate manner for the country. Any small tradesman, a cheesemonger, a butcher, or a shoemaker, might open a country bank; but a set of persons with a fortune sufficient to carry on the concern with security were not permitted to do so. He was old enough to remember the time when there was scarcely such an institution as a country bank, except in great commercial towns, and when the transactions of the country were carried on in Bank of England notes, and money obtained from London. But now, when such a mode of conducting the transactions of the country was no longer practicable, it ought to be the policy of parliament to place all country banks on a solid foundation, and to amend a state of law which he would not say allowed of the establishment only of banks which were not solid, because he believed the greater proportion of the country banks were substantial, but which certainly prevented the establishment of those which, from the nature of their constitution, must be most solid. It was, however, necessary to deal with the existing charter of the Bank of England, which would not expire till 1833. But, if the Bank could be induced to give up so much of their exclusive privilege as related to country banks, and if they would accompany that surrender with a measure which would be desirable for their ownsakes; namely, the establishment, in some parts of the country, of branches of their own institution-the effect on the general circulation of the country would, he thought, be most beneficial. Such was the general nature of the measure which government would feel it necessary to propose at the present moment. He had considered it better to make this general statement, than to leave the intentions of government involved in obscurity or doubt. He did not mean to say that there were no difficulties to be contended with. The whole question must be the subject of discussion hereafter. To enter upon that discussion at the present moment would be improper. With respect to the question put to him by the noble baron, on the subject of the Corn laws, he had no difficulty in repeating what he had stated last session; namely, that his opinion was, that sooner or later it would be highly desirable to revise the general system of the Corn laws. There were, however, a variety of circumstances to be taken into consideration. He had no difficulty in stating, that it was not his intention, nor that of any member of his majesty's government, to bring forward any proposition with regard to the general question during the present session. He saw no circumstances connected with the present situation of the country, which rendered it the imperative duty of government to bring that question under the immediate consideration of parliament. He had spoken particularly of the general question; because, a detached measure with respect to Canada corn, which was passed last year, and would expire in 1827, it might be necessary to re-consider in the course of the present or of the next session. Upon the point, whether it would be expedient to review that particular measure during the present session, he would reserve himself; but he wished it to be distinctly understood, that go. vernment did not consider it necessary to bring forward the general question during the present session. A noble lord had alluded to the absence of his Majesty. He was at a loss to imagine what could be the noble lord's object in introducing such a topic. He had, however, no objection to state, that his Majesty's absence was owing to indisposition alone. The Earl of Carnarvon doubted whether the gradual withdrawal of the 11. and 21. Bank notes would have all the beneficial effect which the noble earl anticipated from the measure. He greatly feared that the prosperity of the country, during the last two or three years, had rested upon a fallacious foundation. He apprehended that the apparent prosperity had partly arisen from the measure which authorised the circulation of small notes. That measure had produced good in the first instance, and evil afterwards. He had never concurred with the opinion which many had entertained of the difficulties of the country having terminated with the resumption of cash payments. It was impossible to pay in gold a debt contracted in paper. He hoped that parliament would take the whole of the question into its consideration, and not confine its attention to particular branches. He supposed it was intended to place country banks generally on the same footing with FEB. 2, 1826. [22 those in the northern part of the island. sent state of the country, then, be matter Previous to the last war, the greatest portion of surprise, when a demand was made on of the currency of those banks was paper. its labour and capital to the amount of Under that currency Scotlandhad flourish-seventeen millions? The noble earl had ed, and had not experienced those convulsions which this part of the country had felt under the restrictive system. It was therefore highly desirable that parliament should consider the question in all its parts, and establish a permanent system read a statement of the increased issues of country bank-notes for the last year or two; but if he wished to account for the embarrassments of the country, he had better analyse the number and qualities of the Steam and Mining, and other joint instead of constantly changing its mea-stock companies which had recently been sures. The Speech from the throne held forth the prospect of years of continued peace. He hoped that those years would be occupied in establishing the internal condition of the country on a permanent foundation. If any alteration was to be made in the currency, it had better be effected at once, than gradually. A graduated system was proposed in 1819, and their lordships knew that it had been productive of no benefit. The temporizing measures adopted with respect to the silk-manufacture, had greatly aggravated, if not entirely caused, the distress under which that trade was at present suffering. The introduction of foreign silks was postponed for two years; and the consequence was, that the manufacturers entered into I extensive speculations, and over-stocked the market during the period allowed for the continuance of their monopoly. If they had been allowed only a few months to dispose of their stock on hand, the ex. isting distress would not have prevailed. The Earl of Lauderdale said, that from the time he had first thought upon the subject, he had always been of opinion that a paper currency, convertible into gold on demand, was that which was best adapted for the transaction of the business of a country. A currency of that decription at present existed in this country. He challenged any of their lordships to state an instance, since the resumption of cash payments, in which gold had not been given in exchange for paper when demanded. In his opinion it was not to the currency that it was necessary to look for the origin of the existing embarrassments. In the course of the last year there had been a demand on the capital and labour of the country, to the extent of 17,000,000/. Let any man consider whether the country was capable of answering that demand. The distress which was caused at the commencement of the late war, by the raising of a loan of only four millions, was nearly as great as that which at present existed. Could the pre formed, and the quantity of capital which had been sunk in these speculations. At all events, if it was intended to restrict the circulation of one and two pound notes, he hoped that such a restriction would not be extended to Scotland. The Amendment was negatived, and the Address agreed to without a division. HOUSE OF COMMONS. Thursday, February 2. ADDRESS ON THE KING'S SPEECH AT THE OPENING OF THE SESSION.] The Speaker having reported the Speech of the Lords Commissioners, and read it to the House, In Mr. John Stuart Wortley (member for Bossiney) rose, for the purpose of moving an Address to his Majesty, in answer to the Speech which had just been read. doing so, he was, he said, aware of the difficulty of the task which he had undertaken, from the circumstance of his being a young member, and this being the first time he had had the honour to address that assembly. It had been the duty of his predecessors, in the task which was now assigned him, to congratulate the country upon its flourishing condition. In the Speech which had been just read, he also found motive for congratulation; although the year which had passed over them had not been marked by some so pre-eminent advantages as former years had been. In adverting to the royal Speech, the first subject that arrested his attention was the formidable shock which the commercial credit had recently sustained. This was the topic that most strongly challenged the attention of the House; and they should come to the consideration of it boldly and manfully, with a view of removing it, or at least, checking its increase. And here due credit must be given to ministers for having introduced this important subject to the notice of parliament. They stated it with candour, and admitted it without |