come on this session, should take an opportunity, on presenting petitions, to make their little harangues, which, in the present state of the country, might harass the public mind. It pleased the noble lord to assume, that the Corn-laws caused fluctuations in prices, and were kept up for the benefit of the landed interest only; but, if that noble lord would examine the state of prices previous to passing the present law, he would find that there were more extraordinary fluctuations before than since the passing of it. He was sure, whatever might be the effects of that law, that no man in that House would argue for it out of any other motives than a regard to the public welfare. HOUSE OF COMMONS. greatly benefitted. The proof of this was, the effects which had resulted from the reduction of the duties on Scotch and Irish whiskey; in regard to which the revenue had materially increased, notwithstanding the reduction of duty to the amount of one half. Mr. Hart Davis said, that in consequence of the increase of duties, the number of houses in a certain town engaged in the importation of these articles, had been reduced from eighteen to eight. He agreed, that if the duty were reduced to 1s. 6d. per lb., smuggling would be almost annihilated, and the fair trader and the revenue greatly benefitted. PROMISSORY NOTES BILL-PETITION OF WILLIAM COBBETT.] Colonel Johnson presented a petition from William Cobbett, expressing great alarm at the Thursday, February 23. power given by the Promissory Notes bill REDUCTION OF DUTIES ON TOBACCO to the Bank of England to issue small AND SNUFF.] Mr. Hume presented a notes for a certain period, and stating that petition from the importers of Tobacco it would prevent the return to a metallic and Snuff in the town of Belfast, praying currency, unless its operations should be for a reduction of the duties thereon. counteracted by other clauses. The peHe could not forbear remarking, in pre- tition also stated some instances of hardsenting this petition, that few things could ship, in consequence of the country bankbe more beneficial to the fair trader, more ers refusing to pay their notes in coin, and destructive to smuggling, or more advan- prayed that such bankers might be rendertageous to the revenue, than the reduction ed liable to a distress for payment at the of the duties upon these articles. In instance of a magistrate, upon twentyorder to illustrate this, it might be suffi- four hours' notice. This was the only cient to refer to the state of the trade part of the petition in which he did from 1810 to 1812, as compared with its not agree, as he thought the time too condition in 1820 to 1822. In the former short, and that three or four days ought period, when the duty was per lb. 2s., it to be allowed. He himself knew an inwas paid on 41 millions of pounds. For stance of a person, who having got posthe latter period, when the duty was 4s. session of some Birmingham bank notes, per lb., it was levied on only 33 millions presented them there for payment in gold. of pounds. Now, the population, and He was answered, that the notes were consequently the consumption of the arti- payable in London, and that at the place cle, must have increased considerably of issuing them they would only be paid during the latter period, and yet the num- in Bank of England paper. He trusted ber of pounds on which the duty was that a clause would be inserted in the bill levied had decreased by eight millions. to prevent the recurrence of those diffiThis clearly proved how much the revenue culties; for unless some such summary must, in consequence of the high duty, mode of enforcing payment were adopted, have suffered from the discouragement of instead of leaving the parties to the orconsumption and encouragement of smug- dinary course of law, they never could gling. Similar results had attended these have gold in general circulation. high duties in Ireland, where, notwithstanding the increase of population, the quantity of these articles paying duty, had considerably decreased. He was persuaded, that, if ministers would consent to reduce the duty 1s. 6d. per lb., smuggling in these articles would entirely cease, and the revenue be, at the same time, The petition was read as follows: "The Petition of William Cobbett, of Kensington, in the county of Middlesex, most humbly shows, "1. That your Petitioner sees, with great alarm, that the bill now before your honourable House has had introduced into it a clause to enable the Bank of England to make small notes for a considerable time yet to come; that this power in the Bank of England would, as your petitioner believes, effectually prevent a return to a gold and silver currency, and would, in effect, be a legal tender, in all parts distant from London, unless prevented by other clauses in the said bill. "2. That your petitioner has been most credibly informed, and that he believes the facts, that a man presented, on Saturday last, to a great country bank at Norwich, one hundred and thirty pounds in the notes of that bank; that he demanded gold for the same, and that he was peremptorily refused payment in any thing except Bank of England notes; that, on the same day, the same man made a similar application to another country bank in the same city; that he not only met here with a similar refusal, but that the bankers threatened to put him in charge of a constable, if he remained and persisted in his demand; and that if your honourable House will permit him, your humble petitioner doubts not that he shall be able to produce proof of these facts at the bar of your honourable House. "3. Your humble petitioner prays your honourable House to be pleased to reflect, that it has been solely by means of this species of tender, that the country bankers have been able to shut gold out of general circulation; that, as long as they can venture to refuse gold under pretence of paying in Bank of England notes, there can be no gold circulation, and no diminution of the country small notes, because, when it is merely one sort of paper for another, people in the country will, in most cases, prefer the country notes, however much they may suspect their goodness; and that thus, with a very small supply of Bank of England small notes, the country bankers may wholly defeat the laudable design to give the people once more a circulating gold and silver any country banker shall, under pretence of a tender in Bank of England notes, refuse the legal coin in payment of his own notes, the said banker shall, at the end of twenty-four hours, be liable to a distress, issuing from a justice of the peace, for enforcing immediate payment in coin, and that he shall, moreover, be liable to a penalty for such illegal refusal; or, your petitioner most humbly prays, that your honourable House will be pleased to adopt such other remedy for this great evil as to the wisdom of your honourable House may seem most meet. And your petitioner will ever most humbly pray. "Feb. 21, 1826.. WM. COBBETT.” Mr. Hume called the attention of the chancellor of the Exchequer particularly to this petition, since it afforded a practical proof of the necessity of the clause which he had proposed the other night, to compel the country bankers, by summary process, to pay in gold; for, unless some such provision was introduced, the excess of paper issues would be as great as ever. The bankers ought undoubtedly to lodge proper security for their notes; and it was not in the least unfair, that, upon three or four days notice, they should be compellible, by summary process, to pay them in gold on the spot. Ordered to lie on the table, and be printed. COMMERCIAL DISTRESS PETITION oF Merchants of London for RELIEF.] Mr. Thomas Wilson said, he never rose with greater anxiety to address the House than on the present occasion with a petition on a subject of vital importance to the welfare of the country, seeing that the performance of this duty placed him in the situation in which he was obliged to differ much from those whom it had formerly been his pride to regard as his hon. friends; but, whatever might be the consequence-whatever might be the impression unfavourable to himself in the money. quarter to which he alluded-when he "4. That, in order to prevent such im-witnessed the distress that every where position upon the people, and also to prevent those dreadful consequences that must finally result from the continued issue and re-issue of small country notes, your humble petitioner, with great deference and profound respect, begs leave to be permitted to suggest to your honourable House, that it may be enacted in the said bill, and he humbly prays your honourable House to enact, that, in case prevailed, and was called on by his constituents to discharge the duty they had imposed upon him, he felt himself bound to stand forward. He trusted, therefore, that he should experience the indulgence of the House, while he was compelled to trespass upon their attention. The House knew, that not only the city of London, but the whole mercantile world, had been suffering, for weeks and months, under as the pressure of financial difficulties, which ditable. No mistake could be greater. had brought many houses to the ground, One transaction was sanctioned by time and threatened destruction to many more. and custom. It was what occurred every The merchants of London had solicited his day, and without it the business of the majesty's government for relief, by an country could not go on. The other was issue of Exchequer bills, as on former oc- a transaction that could not take place casions of a similar character; and though without bringing a slur on the credit of he would make no comment on the man- the individual having recourse to it. In ner in which that application had been re- the first stage of the discussion, the obceived, yet he might venture to say, it jection taken by government to afford was quite evident, from what had taken relief, was directed more against the sufplace, that his majesty's government had ferers themselves, as sinners, than against made up their minds to grant no relief the principle of relief itself. The merwhatever. Several objections had been chants, manufacturers, and traders were stated on their part, to the course pursued treated as wild and profligate speculators; by their predecessors. For himself, speak- or at best, as men engaged in unreasonable ing as a practical man, he hoped he should adventures. They were described be excused for saying, that on a great being concerned in bubbles of every emergency like the present, that remedy kind, railways, water-companies, and gaswould be found to be the most effectual, associations; and it was said, that as by which had so proved at former periods of means of these speculations, and the conthe same nature. During the discussion sequent excess of trading, the country that had been going on, his majesty's go- had been brought into its present state of vernment had found out that the charter distress, it was fit that things should be of the Bank of England enabled that body left to find their own level and that goto lend money on goods, and therefore vernment ought, on no account, to interthey concluded, that any interference on fere. As he wished to save the time of their part would be highly improper, and the conference, he had put the worst case would have the effect of perpetuating a that he thought it possible to conceive, series of precedents, calculated, in their and which yet he undertook to prove one ulterior consequences, to work great in- deserving of relief. He had, therefore, jury to the country. As by this discovery stated the case of a speculator, who, it had been ascertained that the Bank was though still owner of a good deal of proopen to the relief of the mercantile classes, perty, had lost half he had possessed. Yet why, it was asked, did they not apply to this individual, he contended, was worth that body? What necessity was there saving; not for his own sake, but as formfor an issue of Exchequer bills under ing part of the commercial community. these circumstances? The answer he So he would say of the sufferers generally, had to make on behalf of the mercantile If not for their own deserts, they were yet classes was, that relief in one case was worth saving for the sake of the country, administered by means wholly unobjec- to whose prosperity their welfare was estionable; while, by the other mode, the sential. Passing over the connection that affairs of the merchant must be subjected subsisted between the commercial and the to an investigation which would com- agricultural interests, he would maintain pletely expose his embarrassments to the the necessity of relief, on the ground that Bank directors. The Exchequer bills the distress though he would not say it would be issued under the management of had been aggravated-had certainly been commissioners sworn to secresy. A mer-superinduced by the conduct of governchant who wanted an advance, not on imaginary security, but on real goods of intrinsic value, could, unknown to the world, apply to the commissioners, and thus overcome his difficulties, without the circumstance of his temporary embarrassment transpiring to any human being. The present idea, however, was, that if it was advisable to discount a bill, it was quite as easy and proper to obtain an advance of money on goods, indeed, that the latter course was less discre ment, and therefore he would repeat, that the merchants, manufacturers, and traders had a fair claim of relief, considering all the circumstances under which the distress had been produced. As to the charge of excessive speculation, he had never gone into the subject before; but, when he was told that speculators did not deserve relief, and therefore that no relief ought to be administered to the existing distress, he would stand up for the merchants of the city of London, and, in their name, deny that this was the case with them generally. They were not, as they had been represented, overgrown speculators. They did not deserve the imputations thus cast upon them. Before they were treated in this way, it became government to shew, that the difference in the price of consols had exercised no influence on the value of goods. Was the difference between consols at 95 and at 75, nothing? Had the fall in the price of government securities no effect in throwing down the value of goods? Was no allowance to be made to the merchant, on account of the change which now resulted from the proceedings of government, with the view of reducing the five per cents? There was no proof of speculation beyond what the circumstances of the times seemed to require. As to the excess of trading, with which the merchants were charged, it was easy now to throw the imputation in their teeth. They were accordingly told, that they had traded beyond their power and strength. But, how were they, beforehand, to arrive at this conclusion? How were they to know this result, till it had proved itself? When the trade opened with South America, who could say that five, or ten, or fifty cargoes, were too few or too many, of one kind of merchandize, before the market was actually glutted? At the same moment, too, goods were despatched, perhaps from London, from Liverpool, and from Glasgow, and this unforeseen union produced the overtrading. This objection had been pushed much too far against the mercantile classes. As to the mining concerns in South America, he differed widely from those who had attacked them. He was not in the House when some animadversions had been recently made upon them, or he would then have stated his opinion respecting them; but he had no hesitation in saying, that he considered them a legitimate employment of capital. If the government of Spain had been supported for so many years by the produce of the mines, it was surely not irrational to expect that these undertakings would, at the present time, yield a considerable profit; and, though the investment of capital in them might be a matter of inconvenience at this moment, there was no reason to apprehend that the result would not be greatly beneficial to the adventurers. The sums of money gained or lost by gambling in shares was altogether another consider ation. He was not disposed to justify the practice of gambling in any shape, but it was obvious, that the sale of shares had nothing whatever to do with the present question. He perfectly agreed with the hon. member for Montrose, that the country had certainly not been impoverished by this gambling. One man was richer, and another poorer; but the whole stock of wealth was neither increased nor diminished. The question as to the South American mines was, whether the investment of capital in those undertakings was a legitimate speculation. He was perfectly satisfied that it was. One cause of the present suffering was said to be the excess of imports. The same remark was applicable to this, as to the question of speculation generally. The imports of a country could only be known to be excessive, when, by experience, they were found to be so. At present, the imports were excessive, only because the demand for foreign goods had suddenly fallen off. The loss resulting from the difference of prices would not be entirely sustained by this country. While the great importations were taking place, and while the prices of foreign merchandize were advancing, the prices of our own manufactured goods were also advancing; so that if, on one hand, we were importing at high prices, we were sending out our own manufactures, on the other hand, at prices advanced proportionally to the rise on the raw material. He did not stand up to recommend that assistance should be given to the dealers in bubbles of any kind, rail-roads, or gas companies, or foreign speculations, nor to the holders of bills of exchange of a long date, or difficult of negotiation. His proposition was simple. He wished that relief should be applied to that class of individuals who, with ample means, were suffering from the general want of credit and confidence, and who, he would add, were suffering to an extent which he would hardly venture to describe. No language could be used that would be too strong for the state of things to which it was to be applied. Every failure tended to aggravate the mischief and distress pervading the commercial world. Since the failure of the house of Goldschmidt, the consternation had spread in every direction. That house was deemed, like others, to have dealt too largely in foreign securities, and to have been concerned too deeply in over-trading. But, what was the fact? That name, lately so high in credit and affluence, had, no longer ago than last summer, through one of the partners, then abroad, laid out 50,000l. in the stocks of the United States, in order to obtain greater interest on the money than they could procure by any investment in this country. They had also founded an establishment at Leeds, in order to assist the manufacturers of this country, and at the time when the house stopped payment, they had made advances to the extent of 45,000l. on the manufactured goods under their care. The course they pursued was this: If the goods were sold, the advance was repaid;-if not sold within a certain period, the goods were sent out to such part of Brazil or South America, as the manufacturer chose to point out. Of the 45,000l. advanced, 12,000l. had been in this manner repaid. But, what was the state of the country at this moment? Parliament might learn it from the affairs of this house. A communication received the other day from the head of the concern at Leeds stated, that he could not raise 12,000l. to support the credit of the establishment. Four days previous to the stoppage of the house, doubts having been expressed as to its stability, communications to that effect were despatched to Paris and Amsterdam. The alarm produced there, by this intelligence, was excessive. Advices had been sent over from both those cities, stating, that the mischief that must follow this event on the two exchanges, would be incalculable, and would ultimately recoil upon the merchants of London. In this way the distress, great as it was, would be aggravated by every fresh failure. Never was the truth of the old proverb more apparent that delays were dangerous. Those hon. gentlemen who were acquainted with the city, knew what frightful reports were in circulation only yesterday, respecting establishments of the highest respectability and of known property. Yet, these mere rumours had driven down the price of the English funds two or three per cent, and the foreign funds four or five per cent. Among the inconveniences pointed out as likely to result from the granting of relief, was the evil of an excessive issue of Exchequer-bills. It might, he admitted, be attended with inconvenience, under present circumstances, to government, or the Bank, if Exchequer-bills were, to any great extent, brought into the market; but not treble the amount asked for would, under more favourable circumstances, produce any mischievous effect. If his majesty's government sympathised with the mercantile classes, all would be well; but not while they said, "Some of you have done what you ought not, and as we cannot discriminate between you, all shall suffer alike." This was hard treatment from a government which de pended mainly on trade for the means of supporting its army, its navy, and its other great establishments. The conduct of his majesty's government was, in this respect, utterly unjustifiable. Perhaps it would be said, that he had overcharged the picture he had drawn, and he expected that severe animadversions would be made upon him for inflaming the public mind. He declared, however, solemnly, that he was discharging a most unpleasant duty conscientiously, to the best of his belief. Among the many painful feelings he suffered on this occasion, one of the most painful was that arising from the necessity of removing from the bench on which he had sat with so much satisfaction for so many years, to that sort of neutral ground on which he was standing. He had judged it more advisable to take up that position, than to go at once over to the opposition benches, where, possibly, he might have been looked upon as a spy in the enemies camp. The president of the Board of Trade had lately recommended to the House, that the balance of trade should be kept in view by the merchant, in order to regulate his proceedings. But he (Mr. Wilson) was one of the old school, of which it was a doctrine that the balance could be defined only by the result. The state of our foreign trade was now greatly altered. When our imports were chiefly from, and our exports to the continent, the balance of trade was easily adjusted. But now the supplies received by this country from the continent were much greater; and they would necessarily increase in consequence of the relaxation that had taken place in our navigation laws. The exports to the continent last year had been cramped by restrictions, but the great dependance of the country as to exports was on the trade with India, Brazil, and South America generally; and the returns in that trade could not be calculated until after 12, 18, or 24 months. As to the doctrine of limiting trade in order to force up the exchanges, he regarded it as one of the absurdities of the day. It must be left, he contended, to the Bank of Eng |