of bullion, a restriction should be put on the cash payments of the Bank Such a mode of reasoning would, on the face of it, seem to go to establish it as a general axiom, that in all such cases the cash payments of the Bank should be suspended. To these reasons were added the great exportation of specie for corn, and on account of other circumstances con nected with the war. If these additional reasons had any force, then the propriety of fur ther continuing the restriction should not be made to depend so entirely on the state of the exchange. Perhaps even it might happen that the unfavourable turn of the exchange against this country, might be owing to the very restriction on the Bank: and as on this head doubts were entertained, that with him was a strong reason for recommending an inquiry, because a proposition for such an inquiry might, when under discussion, bring forth many opinions on the subject (it was opinions rather than facts which he was anxious the inquiry should produce), more especially of commercial men, and of the Directors of the Bank, whose pursuits and occupations enabled them to throw most light on such sub

shakes his head upon this assertion; and, no doubt, that is all that will be got out of him. Strange, added Mr. T. when I mention the probable opinion of the Rt. Hon. Gent. I have alluded to, A shakes his head, and B gives a significant nod; but when I say that if that Rt. Hon. Gent. were here, he would be consistent, I hope I shall offend none of his friends; and I am confident that his consistency would urge him to support my opposition to this motion, if he should come down, and I most conscientiously think he will;, for when that Rt. Hon. Gent, proposed this measure originally, he gave the House the most detailed reports to shew the grounds upon which his ideas of the necessity were founded. The Hon. Member concluded with observing, that he did not wish the Bank doors to be at once thrown open, without due deliberation; his desire was, that a committee should be appointed, composed of such intelligent persons as formed the original committee on this subject, many of whom were at present in the House, and who would be able to give such a mass of useful information to the country as would satisfy the public of the justice and policy of any measure founded upon it. If such a pro-jects. For his part, he could not pretend to ceeding were not adopted, he was convinced the people would very naturally think the measure proposed by the Rt. Hon. Gent, rather an act of convenience than of necessity. The Bank would be condemned if they should lose the opportunity of this committee to vindicate their conduct, and the House would be set down rather as the blind followers, or suspected accomplices, of the Bank, than as the faithful guardians of the public interest.

Mr. Fox began by observing, that if the Rt. Hon. Gent. felt such reluctance as that which he expressed to bring forward the present proposition, and such anxiety to see the period Arrive when a measure of that nature would be deemed no longer necessary, much more urgent reasons than those he had heard should, in his opinion, be adduced in its support. If, however, necessity, or a strong propriety, called for its adoption, he was not disposed to urge any objection to it: at the same time he should feel more satisfaction if there were laid before him sufficient grounds to justify his assent; and in that view he concurred with the Hon. Gent. (Mr. Tierney) who spoke last, in thinking that some inquiry should be instituted into the causes that gave rise to the continuance of the restriction, that it might appear whether they were of a nature to render the restriction necessary or not. The principal grounds on which the continuance of the suspension now seemed to be rested, were the state of the exchange between this and other countries, and the small quantity of bull on that of late had been imported. Was it then to be understood that whenever the state of the exchange was so unfavourable as to leave no room to expect the importation

much information on them, particularly on the causes that might influence the fluctuations of the rate of exchange between different countries. It was not into the conduct of the Directors of the Bank that the House should be anxious to inquire. They professed themselves to be ready to renew their payments in specie, if Govt. had no political reasons for preventing them from doing so. They were ready even now to resume their cash payments; and if they, as bankers, saw no danger or inconvenience in resuming them, was it not incumbent upon the House to inquire into the grounds of the political objection that was opposed to that resumption? For his part, he could not conceive a possible case where the restriction could be necessary or useful, when the Directors of the Bank declared themselves to be able and willing to pay in specie. If such a case existed, it should be made out, and for that reason he acquiesced with the Hon. Gent. (Mr. Tierney) in the propriety of some inquiry being instituted. His mind was far from harbouring any suspicions prejudicial to the Directors of the Bank; on the contrary, if any danger attended the opening of the Bank (and it was admitted that dangers did attend it), he was inclined to believe that to the caution, the prudence, and the discretion of the Bank Directors, it was owing that all those dangerous consequences had in a great measure been averted. When, therefore, the Bank Directors expressed no reluctance to recommence their payments in specie, must not the worst inferences be drawn, even from a suspicion that circumstances are such as to make it imprudent to suffer them to resume their payments? The House must surely recollect

attend the change? This at least was a matter that well deserved to be inquired into: there were many other points to which an inquiry might be usefully directed, and he should not be sorry to see a motion made for instituting one.

Mr. BANKS felt rather undecided how he should act on the present occasion. If it was intended that the bill should go beyond a very short period, both the dignity of the House and the security of the public credit might require that some investigation should be made into the unnatural state in which imperious circumstances had for some time past placed the Bank. Since peace was now restored, and those circumstances no longer continued to operate, the House would no doubt be slow in acceding to such a measure as that now proposed, without very satisfac tory grounds to justify them in adopting it. He was ignorant whether it was the intention of the Hon. Gent. (Mr. Tierney) to move for an inquiry, or not; but if that Hon. Gent. did not make the motion, he should feel it his duty, if the bill to be brought forward was not for a very short duration, to endeavour to dissuade the House from assenting to the measure, without such grounds as might fully satisfy them and their constituents of its necessity.

how closely the credit of the Bank is con- therefore be expected, that as, in the former nected with the credit of the country, and case, when our currency was meliorated, the how much it therefore must depend upon the course of exchange turned in our favour, so management of the Bank. The credit of the also, if the Bank now resumed its cash-pay country was not likely before to be much affect-ments, the same favourable circumstances might ed by that management; for, while the Bank continued to pay in specie, if the Directors chanced to act improperly, the public were able to discover the impropriety of their conduct in the consequences to which it must have given rise; but now, as there was not the same check of honour on them as that by which other bankers were bound, the public had no longer the same security, and the whole of the credit of the country was made to depend upon the administration of men whose conduct was under the control of Govt. and who owe no responsibility to the country. When the public credit was so endangered, it was not surprising that an impatience should be expressed by the Rt. Hon. Gent. to get rid of the restriction: at all events, he must hope that a short bill only would now be proposed, and that time would be allowed to examine how far it should be prolonged. It might also be proper to inquire how far the state of exchange should be admitted as a criterion, whether the Bank should pay in specie or not. Allowing also that there might be some danger in taking off the restriction altogether, still might not some arrangement be adopted for paying a small part of the dividends and notes in cash? By adopting a gradual system of that kind, all danger from a sudden run might be avoided: but it is said, if the Bank renews its cash payments, the specie will be sent out of the country-that is very probable; but as long as there is a strong temptation to send guineas abroad, the most rigorous laws, even when most vigilantly enforced, will prove inadequate to prevent it. Neither can it be expected that the Bank Directors will serve the public at their own loss. They will not buy bullion, that the public may have money; they will not fose in purchasing it, that others may gain by sending it out of the country. But with regard to the fluctuations in the state of the exchange between this country and others, there was a circumstance which now occurred to his mind, if he rightly recollected it, which tended to shew that the state of the exchange does not always depend on the circumstances which are now supposed almost solely to affect it. In the year 1773 or 1772, when there was a great quantity of bad money in the country, the course of exchange was then also much against us; but he was informed, that when in the room of this adulterated money good gold was substituted, the consequence was, that the exchange turned almost immediately in our favour. As long as our currency continued bad, the exchange was against us; so is it now, because paper is not much better than bad gold; or, it is attended with the same inconveniencies. May it not

Lord HAWKESBURY would trouble the House with but a very few words. The only question now before them was, that leave be given to bring in a bill. When it came to the stage for filling up the blanks, then an oppor tunity would occur to discuss the time to which its operation should be limited, and to advance the reasons why a committee of inquiry should be appointed. But his principal object in rising was to endeavour to set right two Hon. Gent. (Mr. Fox and Mr. Tierney), who seemed to view the arguments of his Rt. Hon. Friend (Mr. Addington) in a different light from that he intended to place them in. These Gent. seemed to imagine that his Rt. Hon. Friend ascribed the necessity of the mea sure solely to the state of exchange between this and other countries. He did not understand him so. His Rt. Hon. Friend, in stating his opinion of the measure, looked back to the necessity which justified it at the time it was first proposed, and to the salutary consequences which its adoption had produced; and in that view he could not but applaud it as a wise precaution; but looking at it now generally and abstractedly, he could not but regard it as an evil, and he therefore felt anxious for the arrival of the period when the cash-payments might be safely resumed. He entertained nearly the same opinion ; but what

our favour. No inference can, therefore, be drawn from that circumstance, that restriction on the Bank is the cause of the unfavourable turn of the exchange, or that the exchange would turn in our favour, if that restriction were taken off. Although the restriction has continued, the course of exchange is altered considerably in our favour, especially for the last six months: for the fact is, the exchange was not affected by that restriction, but by the exportation of bullion, or rather by the causes that prevented the importation of it. Those causes will soon cease to operate, and we already see the course of exchange rapidly coming round in our favour, and we have every reason to expect that it will soon be at par, and place us in the same advantageous situation which we had before enjoyed. These were his reasons for discountenancing an inquiry, especially as a motion for it would be more in order when the bill was before the House.

added to his embarrassment was the difficulty us only in appearance, in substance it was in of taking off the restriction after it was once imposed. His Rt. Hon. Friend had observed, that the restriction had been imposed and continued for many years, without any inconvenience having resulted from it; and this he was ready to ascribe, as the Hon. Gent. opposite to him (Mr. Fox) had done, to the excellence of the institution itself, and to the cautious and prudent conduct of the Gent. who administered its affairs. If, therefore, no inconvenience has as yet accrued from the restriction, would it not be wise to pause for a while, and look for the period when the removing of it may be attended with as little danger as possible? The Noble Lord then proceeded to enumerate the causes why the course of exchange was against this country, and why the quantity of its bullion was diminished. A great quantity of it was known to have been sent abroad, not only for the purchase of corn, but for the maintenance and use of the army and navy. The exportation of our bullion was then a matter of necessity; for the exchanges were then with regard to us reduced extremely low: but they are now improved, and may soon be expected to be at par. If, therefore, any inconvenience still remains that may be likely to arise from a premature change of system, is it not proper to look forward to a period when no obstacle may impede it? It was not upon any prospect of an unfavourable change that the present measure was grounded, but rather the delicacy of reverting to the old system without taking the advantage of a favourable moment. That moment was perhaps at no great distance, and prudence admonish ed that it should be waited for with patience. As to the appointment of a committee of inquiry, he was not without his objections to it; and chiefly because its only effect would be to create alarms that might be extremely prejudicial. The appointment of such a committee might be necessary if any doubts were entertained of the sufficiency of the Bank; but on The CHANCELLOR of the EXCHEQUER CONthat point the most perfect satisfaction had fessed that at an early period of the session already been afforded; and by consulting the (as insinuated by an Hon. Gent. Mr. Tierney), papers now on the table, shewing the number he did not entertain the idea of proposing a of notes that have been issued at different pe- further continuance of the restriction on the riods, it may be easily seen whether the Direc- Bank; he did venture to hope that a fa tors of the Bank have abused the power in-vourable alteration in the course of the ex trusted to them. Where, therefore, is the necessity of a committee, the appointment of which might produce much mischief, and no real good? It might perhaps be proper, at a future period, to revise the whole system of our paper credit, but then that should be done merely with relation to that system itself, and without any reference whatever to the institution and conduct of the Bank. An Hon. Gent. (Mr. Fox) has observed, that in 1773 the course of exchange was against this country when cur gold coin was of an inferior value, but that immediately after the recoinage, it turned round in our favour-but the fact is, that at that period the exchange was against

Sir FRANCIS BARING observed, that cir cumstances wholly unnoticed or unattended to may have occasioned the unfavourable turn of the course of exchange against this country. Formerly, its fluctuations might be accurately calculated, and it might be easily ascertained how it stood between this and any other coun try; but the commercial as well as the political frame of Europe, was so dislocated and disjointed, that nothing now could be calculated to a certainty. The disadvantages we now laboured under do not arise from common causes, but from extraordinary and unexpected efforts to cramp and to counteract our com mercial enterprises. Our credit, however, was never safer or sounder than at the present mo ment; and if the measure now proposed is to be adopted, it should be looked upon as a measure of propriety, not of necessity.

change would have relieved him from the pers formance of the painful duty which he this day came forward to discharge. If appearances continued to be the same which they were at the close of last year, and the beginning of the present, and the favourable change promised to be permanent, he should have abstained from the present motion; but while he said this, he desired to be understood by the House, not abstractedly to rest what he had advanced upon the state of the exchange, for many other circumstances con curred in the operation. He thought it right to permit the country banks to issue small notes. Were the Bank to be opened, all these

regret he proposed the present measure, but circumstances imposed it on him as a duty; and that duty, however painful, he must endeavour to discharge.

Mr. VANSITTART enumerated a variety of causes that at different times affected the course of exchange as it regarded this country, and observed, that the difficulty which the Spaniards experienced during the war in gets ting home the produce of their mines, was one of the principal reasons why we were in want of bullion. These obstructions now no longer prevented the conveyance of those treasures into Spain, and it was natural to expect that a great quantity of them would shortly find ite way into this, country.

No division took place.-Leave was given to bring in the bill.

notes would be tendered for payment, when a | a wide comprehensive view of the paper cree sufficient quantity of bullion was not in the dit of the country; and not permit bad paper possession of the Bank, and the run upon it to be issued without any responsibility on the would be unusually great. Indeed, from a va part of those who issued it-such a revision riety of combined causes, the demand on the may or may not be deemed advisable. He did Bank would be extraordinary. Would, there- not pledge himself to any measure of the sort; fore, such a moment be a favourable one for dis- yet if it was to take place, it should have no continuing the restriction! or, from this view connexion with, or reference to the present of the case, will it be contended that the state state of the Bank; neither should it be now of the exchange is the sole cause for continuing attempted, but at a period more favourable, it?-But an Hon. Gent. (Mr. Fox) has sug- and during the intervening time. He had now gested the propriety of opening the cash pay-only to repeat that it was with reluctance and ments of the Bank under some limited restriction. No doubt that Hon. Gent. is aware that in the former bill a power is given to the Bank to make partial payments of the dividends in specie, upon giving due notice of such payments to the House of Commons.-That Hon. Gent. is also of opinion that the Bank should not be restrained in paying small notes in specie; but does he bear in mind, that if the small notes were to be paid in specic, then the larger notes would be changed into small ones, and presented for payment in specie? by which means the whole effect of the restriction would be completely done away, for the one limited restriction must unavoidably frustrate the other. It has also been observed, that the Bank is ready and disposed to pay. Whether that was the case or not, what he proposed was not in compliance with, or in opposition to, any thing the Bank might wish for: as he had, on the present occasion, no communication whatever with the Bank, all he took their opinion upon was, the state of the course of exchange. Indeed the Bank had expressed no wish or opinion to him.-An Hon. Baronet (Sir Francis Baring) had adverted to a topic which well deserved the serious consideration of the House. The House, from what that Hon. Baronet had said, should imagine many reasons to themselves that would recommend the measure, but which it was unnecessary to explain. The storm that had agitated the commercial and political world, had not as yet subsided: but he trusted it would be soon laid in peace, and that the favourable moment was not far distant when more auspicious prospects might be opened. It was now his intention to insert a clause in the bill which he wished to bring in, leaving a power to alter it during the course of the present session, should circumstances favour its alteration or repeal, or to continue it in force for six weeks after the meeting of Parliament next session. He was averse to a committee-he saw no necessity for it; more important occasions had occurred where no committee was moved for. The charter of the Bank was renewed without any committee having been appointed to inquire into the state of its affairs. If any new grounds were adduced to shew the necessity for an inquiry, he was ready to listen to them; but he was aware of none that would not be liable to inconvenience. It might be proper, during the interval of the suspension, to take

HOUSE OF COMMONS

Friday, February 11.-(See Minutes, p. 247.) [MILITIA.]-The SECRETARY at WAL said, he rose in pursuance of a notice to make a motion for leave to bring in a bill to alter the time for training the militia, from twenty-one to twenty-eight days in each year. He thought it necessary, upon this occasion, to state the reason why he proposed this alteration. When the militia was first formed into a regular system, in the early part of the reign of Charles II. it was enacted, that the militia should be exercised four times a year in companies, and once in battalions: that is to say, two days each time they were exercised in companies, and four days when they were exercised in battalions. As the art of war was not then brought to the degree of perfection to which it has since attained, this was thought sufficient time to train the men. The militia was at that time about 60,000 men. That system was continued from that time till the latter end of the reign of his late Majesty, when a plan was introduced by a Noble Lord, of whom no one could speak without feeling the highest respect (the Marquis Townsend), which was the foundation of the present mode of managing the militia. By the act which was then passed, the militia were order ed to be assembled twice in each year, to be exercised for fourteen days each time, or once for twenty-eight days. This system was found

|

notes, on account of the impossibility of making an exact tender in Bank notes, of a debt in which there was a fraction of a pound: the amendment he meant to propose was, that where a person applied to be discharged upon common bail, he should make an affidavit of his having tendered the amount of the debt.The motion was agreed to.-The House then resolved itself into a committee, Mr. P. Alexander in the chair.

The CHANCELLOR of the EXCHEQUER said, there was in the bill a clause to enable Parliament to repeal or alter it during the present session: he now proposed to fill up the blank with regard to its duration, with these words, "six weeks after the commencement of the "next session of Parliament."

perfectly well calculated to answer the purpose for which it was intended, and during the American war the militia were found ready and fit for service.-After the conclusion of the American war, when the country was exhausted by so long and expensive a contest, for two or three years the militia were suffered to remain without any new arrangement, and in a kind of state of uncertainty: they were not even called out to exercise. It was then thought necessary to reconsider the subject, and to make some alteration; but as economy was then an object peculiarly to be desired, the following alteration was proposed. The whole of the militia, amounting to 31,000 men, were not to be called out every year, but only two thirds of them, the other third neither receiving pay nor clothing. In this situation the subject remained till the breaking out of the late war. When other alterations Mr. BANKES said, he rose to suggest the took place upon the restoration of peace, propriety of proposing a shorter duration for Ministers thought it right to put it upon a the bill, and in doing so, he begged not to be good footing, and to unite the laws into one understood as entertaining an opinion that the system, in order that they might be more clear Bank ought now to resume its cash payments, and distinct; the militia was then augmented nor did he mean to say that the Rt. Hon. to 40,000 men; and it was ordered that they | Gent.'s motion might not, upon investigation, should be exercised once in the course of each be perfectly proper; but the ground of his year. But as this bill incurred a considerable ex- complaint was, that there had not been suffipense beyond that which was incurred before, it cient data laid before the House to enable was thought if they were exercised for twenty-them to decide upon the question. He conone days each year, it would be sufficient, and fessed that he was in a state of uncertainty that a considerable saving would be effected upon that subject, and so he supposed were by such a reduction of the time. It had, how- other Members who had not better means of ever, been thought since, by persons the best information than himself.-On a subject of so enabled to form a judgment upon the subject, serious a nature as that which they were now that, in points of this kind, economy ought not discussing, the House ought to pause before solely to be looked to, and that it would be they placed the Bank in such an unnatural necessary to exercise the militia for twenty-situation, without having the least evidence eight days. He should therefore propose to bring in a bill to make an alteration to that effect, and he was happy to state, that it would not be attended with any considerable expense, in consequence of the economical arrangements which had been introduced.] The expense under the present plan was about 200,000l. a year. The additional expense which would be incuried by the adoption of the alteration he now proposed, would not exceed 18,000l. a year. He concluded with moving for leave to bring in a bill to in-port was made to the House. These inquiries crease the period for which the militia were to be called out to exercise, from twenty-one to twenty-eight days each year.

Leave was given to bring in the bill.

[BANK RESTRICTION BILL.]-The CHANCELLOR of the EXCHEQUER moved the order of the day for going into a committee on the bill.

The ATTORNEY GENERAL rose to move it as an instruction to the committee, that they should have power to alter the bill in one particular. Some difficulties had arisen in the courts of justice upon the clause in the former bill, respecting tenders being made in Bank

that could be obtained upon the subject. In calling for inquiry and information he was not asking for any thing new and singular; because, when the measure was first proposed, it was submitted to the previous consideration of a committee. It was not thought that the secrecy of the affairs of the Bank ought to prevent them being laid before the House. But that was not all: in the same year, when the measure of the restriction was continued, another inquiry took place, and another re

were attended with the most beneficial effects with regard to the public credit of the coun try. He knew that the Reports to which he had alluded had given great satisfaction to the people of this country, with regard to the situation of the Bank and its solidity; and had prevented that alarm which would otherwise have been excited under such circumstances. After the restriction had been laid on, the events of the war, the alarm of invasion and other circumstances, rendered it obvious that the restriction could not be taken off during the war; and therefore as long as that lasted, it never was contended that any fresh matter ought to be laid before the House. But it was expected, that on the restoration of peace the