he anticipated from the adoption of that principle. The argument urged by the government in support of that system was, the usefulness of competition in restraining monopoly. Nothing could be so absurd. Competition with other countries was utterly impossible: circumstances were not the same; and unless circumstances were xactly equal, what competition could there be? There could be no competition, therefore, but that fair and proper competition which was sure to prevail beneficially for all among the subjects of the same country, striving with each other for superiority under the very same circumstances. No possible combination could there take place among them to the disadvantage of the country at large. Now, it was utterly impossible not to foresee the circumstances which might throw the advantage of foreign competition into the hands of France; and, once lost, it could never be recovered. The hon. gentleman then called the attention of the House to a transaction which was utterly at variance with the principles of free trade, so loudly promulgated, though many members of that House, and some of the members of government were im land. The capital embarked was a mil. lion. The first capital of the East India company was no more than 72,000l. At a subsequent period the company obtained leave to invest 700,000l., upon which it was afterwards found necessary to raise no more than 50 per cent.; so that 350,000l. was all that was paid in. Here was a million of money to be applied-a sum more than sufficient for three times the trade which this country would ever have to carry on in the growth and throwing of silk. The natural effect must be, that the company would ruin all minor competitors, and then raise their prices, to the inevitable injury, perhaps the de struction, of our silk manufactures. It grieved him to be obliged to give out the names of peers and hon. gentlemen who were implicated; but he could not refrain from doing his duty. The president was the marquis of Lansdown; vice-president, the earl of Liverpool. What would Mr. Pitt say, did he but know that his great disciple was to be found in such a list? [laughter.] Among the directors were, the right hon. W. Huskisson, Henry Brougham, Wilmot Horton, and Pascoe Grenfell. How different were the senti plicated. He must be excused for ex-ments of the right hon. the president of pressing his sense of it plainly. It appeared to him to be one of the vilest jobs which had been heard of among all the schemes with which the country had overflowed. He was sorry to use such expressions. No man thought better of the the Board of Trade, as they appeared in his pamphlet, when commenting upon a similar project adopted by the French government, to force the cultivation of cotton. "Such," said he, "is the detestable policy which sways some of the powers of Eur districts of otherwise fertile territory being members of his majesty's government-rope, that we are boastingly told of whole no man gave his support to their measures generally with more cordial good-will- forcibly destined to a particular cultivathan he did. When the mad projects of the money-market and the commercial world were going forward in their destructive career, how often had he called upon the House to interpose! How often had he implored ministers to stand forward, and rescue the country from those pernicious delusions! Had the House done their duty, they would have broken up those complicated schemes which were brought out by companies upon companies. Now let the House remark the strange inconsis-rect encouragement given to that disastency of some of the advocates of free trous scheming and speculation which had trade. Since they had last met, a charter had been granted by the Crown, similar to that upon which the monopoly of the East India company was originally founded; by which charter the new company had been authorized to vest a million of money in an exclusive scheme for the growth of silk in Great Britain and Ire tion, and of the French government raising, at a ruinous expense, a little bad cotton." How soon the right hon. gentleman forgot his own principle in favour of a similar cultivation of a little bad silk!while the produce of India was secured to the country on terms which made competion utterly impossible. Such was the inconsistency of the advocates of free trade, and of the government which had adopted their principles! Here was the most di nearly convulsed the country. He disapproved of that part of the Speech which stated the pecuniary difficulties of the country to be without any remedy. The remedy was within the reach of the House. The remedy was, to keep the capital at home, encourage the productive industry, raise the demand for labour, and increase the internal trade of the country. The foreign trade was a thing utterly insignificant in amount and importance when compared with this. He had no interested motive in the view of the question which he had taken. Every word he had uttered was opposed to his own particular interests as a foreign merchant. He spoke according to his sincere conviction. The chief calamity of the country was, that the government dwelt so much on our foreign commerce. They seemed to see nothing else, and to be blind to all other relations. The interests of the foreign merchant his right hon. friend with this alleged been set on foot. He himself was not a member of the association; but, what harm could there be in it? It appeared to him, on the contrary, that the growth of silk in this country was a most desirable object, if it could be accomplished, and in no degree similar to the monopoly of the East India company. His right hon. friend, the president of the Board of Trade, had suffered his name to be inserted in the list of directors, not for purposes of profit, but as an honorary title; and then the hon. member for Grampound, taunting might be in opposition to the others. It inconsistency with the principles of free trade which he had so successfully advocated, referred to some passages in a very able pamphlet written during the bullion controversy, and which pointed out the absurdity of the French government in endeavouring to force the culti was his interest that the country should not grow its own corn, but that it should be imported from places of cheaper growth. He was sure to be benefited by free trade. But, when the landed and manufacturing interests were depressed by that freedom of trade, it must be in-vation of cotton, some indifferent coffee, jurious to the country at large. He could not bring himself to concur in the opinion, that the remedy for the existing evils were not within the reach of that House. The Chancellor of the Exchequer confessed that he did not clearly comprehend the drift of the arguments of the hon. member for Grampound; and felt utterly at a loss how to reply to them. The speech of his hon. friend appeared to contain some propositions of rather a startling nature; for if he understood him rightly, the effect of his argument tended directly not only to that consummation, which his hon. friend certainly desired, the extinction of our foreign commerce; but also to the extinction of all the advantages of our home industry. So, at least, did it appear to him. His argument was, that the greater part of the distresses of the country was to be attributed to excessive exports; and then again his greatest dread seemed to be from the operation of the principles of free trade, by excessive importations. How to reconcile such seeming contardictions, he must leave to the ingenious and speculative mind of his hon. friend. As to the crimes alleged against the government, at first he felt perfectly astounded-he could not conceive what he himself, or his right hon. friends had been about, to deserve the denunciation-he quite trembled at the terrible consequences which were to follow. But lo, and behold! some distinguished members of his majesty's government had lent their names to a speculation, the most innocent that had ever and manufacturing beet root into sugar. But this silk company did not propose to force the growth of silk. There was not a sentence in their charter to compel the honourable gentleman to grow a single mulberry on his estate. In what respect did an association for the voluntary cultivation of silk resemble a restrictive monopoly, or a compulsory appropriation of good corn lands to the production of cotton, coffee, and beet root? But, Buonaparte was absurd enough to pass a law, compelling his subjects to resort to miserable, futile, and ill-contrived attempts to produce the articles, which his own measures prevented him from obtaining in the regular and more natural way. Thus far in reply to the hon. gentleman's speech. And now, perhaps, the House would allow him to take that opportunity of explaining, in a general way, the views of his Majesty's government respecting the more important parts of the Speech from the throne. And here he would say, that the hon. and learned member for Winchelsea might have forborne from making one or two of his comments (and he was persuaded he would have done so), had he been sufficiently aware of the full contents of his Majesty's Speech. Undoubtedly the matters on which the hon. and learned gentleman had touched, were so important, as to be calculated to excite the strongest feelings of the country; and he owed his thanks to the hon. and learned gentleman for the moderate and candid tone in which he had explained his opinions upon many of these points. He was not, however, charge of treating too lightly the heavy distresses which so unfortunately prevailed. This imputation might have been spared; for he could solemnly assure the House, that nothing was further from the feelings or intentions of the executive government, than to treat with any thing bordering upon levity, those distresses which the country had endured, was still enduring, and might continue, to a certain extent, to be afflicted with, notwithstanding the utmost extent of human aid and sympathy. He entreated parliament to believe, that nothing was further from the meaning of his majesty's advisers, when they suggested the insertion of that paragraph in the King's Speech, than to treat the matter lightly. Indeed, he knew not what materials men could be made of, who could have so treated the sufferings of any large portion of their fellow-countrymen. He should have thought that the best proof of a contrary sentiment pervading the breasts of ministers, and that they did not behold with indifference the sufferings of large classes of the community, was to be found in the striking fact of their placing that topic in the very head and front of the royal Speech; thereby showing the country how strongly the king and his government felt the necessity of calling the immediate attention of parliament to the consideration of so painful a subject, if not to avert or mitigate its present evils, justified in imputing to ministers the | condition of the country. If they referred to the distresses which prevailed in 1816 and 1817, they would see how soon the country arose out of them in the following year. The extreme pressure in the one year was followed in the other by a rapid re-action of a contrary kind; and this was effected without any legislative measure, or violence of any kind, but from the very nature of the pressure itself; because they always found, that when circumstances for a while disabled any considerable portion of the people from indulging in their accustomed enjoyments, they eagerly seized the earliest opportunity their renewed means afforded, of an increased consumption of that of which they had been for a time deprived. They rushed, therefore, with a greater avidity to obtain what they desired to possess the moment it was brought within their grasp. It was, he thought, quite clear to any reflecting person, that the great proportion of all the public difficulties complained of, had arisen from causes out of the reach of human control; and he was perfectly satisfied, that the man who would legislate on the assumption, that all engaged in the foreign or domestic commerce, or the agriculture of this country, were necessarily persons of a prudent character, who would act upon sound views, and turn aside from visionary speculations, would find himself grievously disappointed when he beheld the effect of his system of legis at least to prevent, so far as human wisdom| |lative interference in concerns of private could prevent, the recurrence of such disasters. When he talked, however, of such a precaution, it was in vain for any man who had observed the progress of the late events to deny, that, looking at the cause of the late shock in the pecuniary transactions of the people, there were no legislative precautions that could have averted the mischief. It was quite impossible to expect this virtue from public enactments, with the view of effectually controlling or directing the speculations of individuals in so great a commercial country as this, where such temptations were held out for enterprise-where so much skill and industry were displayed in the conduct of mercantile affairs. It was quite impossible to apply laws to govern the speculations of individuals in such a country as this, without doing far more mischief than good, by an attempt so inconsistent with the habits of Englishmen. There was, however, no ground for despondency, notwithstanding the present management. When he said this, he begged it at the same time to be understood, that undoubtedly there were cases in which it was competent for parliament to interpose, and in which it was decidedly useful to call for that interposition. And this distinction was particularly necessary to be laid down, in a country where its affairs were carried on with reference to a sound basis, and where it was impossible to avoid having a currency exposed to excess at one time, and depreciation at another. This was the case here, where the currency was so far of a mixed nature, as that the part of it consisting of paper greatly exceeded the amount in metallic coin. Under such circumstances, it was quite clear that the tendency of the paper portion of the circulating medium was to increase itself, and to effect this without reference to consequences; and singularly enough, the operation went on too, from causes which did not necessarily require that increase. This was precisely what a had happened in this country, and partly | as connected with the circulation of the country banks, the increase of which within the last three or four years had been of most extraordinary description. Of the actual state of the circulation of the country banks, it was difficult to form an accurate estimate; and this difficulty was in itself a very great evil, because it left both the Bank of England and the government in comparative obscurity upon a matter which it was essential for them to know, and deprived them of the advantage of having recourse to a known fact, which would enable them to determine the criteria how far the circulation was in excess. Although, however, they could not deter- | mine the precise amount of the country banks' circulation, they had the means of approximating to something like an estimate, by a reference to the amount of stamps is sued within a given time to these bankers. It was usually considered that the average circulation of country bank paper lasted about three years-it might be more or less in particular cases, but the three years' average was mostly relied upon; and, therefore, if he multiplied each year's issue of stamps by three, he arrived at a probable test for the purpose of his argument. Judging in this manner, he found that, in the year 1820, the issue of country bank notes had been 3,493,9011. In 1821, it was 4,438,5481. And in the year 1825, it had got up to no less a sum than 8,755,000l. During this progressive operation of the country banks, there was no excess of circulation apprehended, and the affairs of the country were generally in a rapidly increasing state of prosperity. But, nevertheless, the inevitable result of this operation must be, to produce a rise in prices, which naturally extended a spirit of speculation, where men struggled who should get most money for articles in demand. But this was not all the evil which this system of circulation encompassed. A great deal of difficulty arose out of the present constitution of their banking system, and especially from that part of it which was composed of one pound notes, notes which, from the smallness of their amount, necessarily circulated among the poorer classes of society, upon whom they entailed the heaviest affliction when the time of revulsion and stoppage arrived. When one of these banks break, thousands upon thousands of poor people lose their all, and are visited with the most heartVOL. XIV. rending affliction. A great deal was said of the spirit of trade excited by, and the consequent benefits resulting from the circulation supplied by these banks, but he would unhesitatingly ask, what advantage had been conferred on agriculture, on commerce, on the community at large, which could be put in competition with the ruin of its re-action at a moment of panic, and the wide-spreading evils which its sudden depreciation inflicted? What real or apparent benefit could compensate for the poverty and misery to which it consigned so large a portion of the working classes of the community, who possessed nothing for their labour or their sustenance, but the worthless piece of paper bearing the impress of the local bank? Who, with a heart to feel, could refrain from saying, that these evils did not far, very far, outweigh all the exaggerated advantages of the circulation of this mass of country paper?-Upon the fullest consideration which he had been able to give this part of the matter embraced in his Majesty's Speech, he had come to the conclusion, that it was indispensably necessary to apply an immediate remedy to that great source of public mischief. Of course, it would not be expected of him, at that moment, to go into the details of the measure by which he intended to accomplish this beneficial purpose. Undoubtedly, caution was necessary in the progress of the work. It was not always the most prudent course to rush headlong to an opposite extreme from that in which they had previously acted; yet he thought something must be done decisively and effectually, to prevent the recurrence of the evils so universally complained of. And when he reflected upon this state of things, it was to him a source of regret that in the arrangements respecting the currency provided by parliament in the year 1822, the original intention of causing the indulgence granted to the country bankers to issue small notes to cease in the year 1825, had been abandoned. He greatly regretted that any circumstances should, at the time he referred to, have induced government to abandon their first intention; but what had passed since had abundantly confirmed him in the opinion that they must now have recourse to a firm and decided measure, for the purpose of placing the currency of the country upon a durable basis. This, however, would not have the effect of preventing a recurrence of E vided the extension of the charter was conceded; that is, they were ready to give the public, instanter, the particular benefits which it could not otherwise acquire until 1833, provided the main operation of the charter would be allowed to survive till 1843. This, however, the government refused to call upon parliament to grant; but it pressed upon the Bank the greater advantage which the company would obtain in the administration of their own affairs, by the increased safety and security which would result from the adoption of the plan then under contemplation. The government had lately again pressed this matter upon the consideration of the Bank, and had submitted to the directors the benefit which both the company and the public would derive from its execution, accompanied, at the same time, with a direct and unequivocal assurance, that there was no intention of extending the present period of their chartered rights. And here he was bound to say, that the manner in which the Bank directors had met this proposition deserved the highest credit. It should always be remembered, that the conductors of such a corporation had difficulties to contend with which could not be felt by others who were not bound by the same interests, nor constituted in the same privileged manner. The directors had, however, acquiesced in the proposition made by his majesty's ministers, which they engaged immediately to submit to the consideration of a court of proprietors. The plan, if carried into effect, would place the banking system of this country upon the same footing as in Ireland, where companies were allowed to establish banks, with any number of partners, fifty miles from the capital. The same relative distance would be sixty-five miles in England; and at that distance it was proposed to establish banking companies with an unlimited number of partners. When he alluded to the reluctance of the Bank directors to abandon, all at once, rights which they felt were secured to them by charter, it was, he repeated, too much to complain of them for such hesitation. They were charged with the protection of the particular interests of the Bank; and though it was the object of the government, in their communications with the directors, to make it clear to them, that the rights they were charged to cherish would not be prejudiced by the concession required the evil, without another measure, which was equally important. He alluded to what had been appropriately termed the exclusive privileges of the Bank of England, as their charter now stood. It was impossible for any man who considered what was the extent of the public transactions of this great kingdom, and the measures inevitably necessary for carrying on the business of the nation and the government, not to see, that one single chartered banking company, however well constituted, was inadequate to execute all the functions of the state. The town business-that immediately on the spotthey could conduct, undoubtedly, in the present manner; but not so throughout the country, where the government had necessarily pecuniary affairs to transact, and where, from the necessity of the case, country banks had sprung up and taken a part of that business. That the Bank of England was at the outset perfectly sufficient for all purposes, he readily admitted; but the immense growth of the wants of the country for banking aid had become so extended, that the case was altered, and a change to meet this varied aspect must be brought about. Country banks had become necessary, in consequence of the exclusive privileges of the Bank of England and the outgrowing claims of the public. And, from these very circumstances, the country banks had been so constituted, that they were deprived of much of the solidity of what ought to belong to the banking system; in fact, the effect of the exclusive privileges had been, to permit elsewhere in the country, every species of banking plan to be in full operation, save what was of the most solid and beneficial character. This state of things required a more efficient remedy than any which had hitherto been applied. Indeed, for some time, it had not escaped the attentive consideration of his majesty's government. Two years ago they had commenced a negotiation with the directors of the Bank, to see how far the company could be induced to forego a portion of their exclusive privileges. Their charter, as at present constituted, would expire in the year 1833, and the Bank offered to consent to a relinquishment of certain privileges, provided the charter in its main duration was extended to the year 1843. They agreed to allow other chartered companies, within the present prohibited distance, at once, pro |