THE Parliamentary Debates During the Seventh Session of the Seventh Parliament of the United Kingdom of Great Britain and Ireland, appointed to meet at Westminster, the Second Day of February 1826, in the Seventh Year of the Reign of His Majesty King GEORGE the Fourth. HOUSE OF LORDS. Thursday, February 2, 1826 THE KING'S Speech on Opening the SESSION.] This day the Session was opened by Commission. The place of Lord Chancellor Eldon was, in consequence of indisposition, supplied by lord Gifford. The other commissioners were the earls of Westmorland, Harrowby, and Shaftesbury. The deputy usher of the black rod having been ordered to require the attendance of the House of Commons, he withdrew. In a few minutes after, the Speaker, accompanied by a considerable number of members, having appeared at the bar, lord Gifford opened the session, with the following Speech to both Houses: "My Lords and Gentlemen, "We are commanded by his Majesty to inform you, that his Majesty has seen with regret the embarrassment which has occurred in the pecuniary transactions of the country, since the close of the last session of parliament. "This embarrassment did not arise from any political events, either at home or abroad: it was not produced by any unexpected demand upon the public resources; nor by the apprehension of any interruption to the general tranquillity. "Some of the causes to which this evil must be attributed, lie without the reach of direct parliamentary interposition; nor can security against the recurrence of them be found, unless in the experience VOL. XIV. S NEW {series.} of the sufferings which they have occasioned. "But, to a certain portion of this evil, correctives at least, if not effectual remedies, may be applied; and his Majesty relies upon your wisdom to devise such measures as may tend to protect both private and public interests against the like sudden and violent fluctuations, by placing on a more firm foundation the Currency and circulating Credit of the country. "His Majesty continues to receive from his Allies, and generally from all Foreign princes and states, the strongest assurances of their friendly disposition towards his Majesty. His Majesty, on his part, is constant and unwearied in his endeavours to reconcile conflicting interests, and to recommend and cultivate peace both in the Old world and in the New. "His Majesty commands us to inform you, that, in pursuance of this policy, his Majesty's mediation has been successfully employed in the conclusion of a treaty between the crowns of Portugal and Brazil, by which the relations of friendly intercourse, long interrupted between two kindred nations, have been restored; and the independence of the Brazilian empire has been formally acknowledged. "His Majesty loses no opportunity of giving effect to the principles of trade and navigation, which have received the sanction of Parliament, and of establishing B them as far as possible, by engagements | beyond what the necessary demands of with foreign powers. "His Majesty has directed to be laid before you, a copy of a Convention, framed on these principles, which has recently been concluded between his Majesty and the king of France; and of a similar Convention, with the free Hanseatic cities of Lubec, Bremen, and Hamburgh. His Majesty has likewise directed to be laid before you a copy of a Treaty of Amity, Commerce, and Navigation, concluded between his Majesty and the Republic of Colombia, the ratifications of which have been exchanged since the close of the last Session. For the carrying into effect some of the stipulations of this treaty, his Majesty will have need of your assistance. "His Majesty regrets that he has not to announce to you the termination of hostilities in India: but the operations of the last campaign, through the bravery of the forces of his Majesty, and of the East India Company, and the skill and per. severance of their commanders, have been attended with uniform success, and his Majesty trusts that a continuance of the same exertions may lead, at no distant period, to an honourable and satisfactory pacification. "His Majesty's attention has been directed to the consideration of several measures, recommended in the last Session of Parliament, for improving the condition of Ireland. "The industry of that part of the United Kingdom, his Majesty has the satisfaction of acquainting you, is in a course of gradual and general advancement-an advancement mainly to be attributed to that state of tranquillity which now happily prevails throughout all the provinces of Ireland. "Gentlemen of the House of Commons. "His Majesty has directed the estimates for the year to be prepared and laid before you. "They have been framed with an anxious desire to avoid every Expenditure the public service may require. "His Majesty has the satisfaction of informing you, that the produce of the Revenue, in the last year, has fully justified the expectations entertained at the commencement of it. "My Lords and Gentlemen, "His Majesty deeply laments the incrisis must have entailed upon many jurious effects which the late pecuniary branches of the commerce and manufactures of the United Kingdom. "But his Majesty confidently believes that the temporary check which commerce and manufactures may at this moment experience, will, under the blessing of Divine Providence, neither impair the great sources of our wealth, nor impede the growth of national prosperity." The Commons then withdrew. After which, the Speech being again read by lord Gifford, and also by the Clerk at the table, The Earl of Verulam rose, to move an address to his Majesty, in reply to his most gracious Speech. The noble earl observed, that the Speech from the throne explained to their lordships the political situation of the country, and that it was usual for those who rose for the purpose of proposing to their lordships an address in reply to the royal Speech, to notice the principal topics which it embraced. He did not intend, however, to go into minute details. On all material points, the state of the nation afforded sufficient grounds for congratulation. Whatever unfavourable circumstances he had to notice, were of a temporary nature. He had no series of national calamities to deplore, no prohad only to call their lordships' attention tracted war to lament. In general, he to the fortunate situation of the country: but it was not to be expected that there would be no disagreeable feature in the picture. "Man is born to trouble as the sparks fly upwards;" and their lordships were aware that every state of things was liable to uncertainty and change. Ac cordingly, the first topic of the Speech related to the late extraordinary and unexpected panic, which had occurred in the pecuniary transactions of the country. It was the more unexpected, because it had occurred at a moment when the in which his Majesty informed parliament, that he continued to receive from his allies, and generally from all foreign powers, assurances of a friendly dispo calling their lordships' attention to the last paragraph of his Majesty's Speech, which, he said, stated his own sentiments with respect to the late embarrassments, in the conviction it expressed, that the temporary check which our commerce and manufactures might at this moment experience would, under the blessing of Divine Providence, neither impair the great sources of our wealth, nor impede the growth of national prosperity. He then moved an Address, which was, as usual, an echo of the Speech from the throne. prosperity of the country appeared at its height, and when money abounded to an uncommon extent. This singular embarrassment had not, as was observed in the King's Speech, its origin in any position. The noble earl concluded by litical events. It seemed easy to obtain money for any purpose, and the most extravagant speculations were entered into. He believed it was the difficulty which capitalists experienced in obtaining an adequate interest for their money, which had led to the wild speculations which had taken place-speculations so wild, that it seemed as if the persons engaged in them were indifferent whether they should sink or swim. This overspeculation was the main cause of the distress which had been felt in the commercial world; but it was one which would cure itself, and which, therefore, ought not to be the object of parliamentary interposition. For the consideration of other circumstances connected with the late pecuniary embarrassments, opportunities would arise, and he was confident the evils were not irremediable. His Majesty stated, that he relied upon parliament for the adoption of measures calculated to protect the public against sudden and violent fluctuations; and he hoped their lordships would soon proceed to the consideration of the important subject. The way in which the panic had been met by merchants, bankers, and individuals of property, was a circumstance of great congratulation, and must induce their lordships to turn their attention to the great object recommended by his Majesty; namely, the placing the credit of the country on a more firm foundation. It was to be hoped that adventurers and speculators would take warning from the past, and in future be guided by wisdom and moderation in their schemes. Their lordships would perceive from his Majesty's Speech that the termination of hostilities in India could not be announced. The war in that quarter of the world had been undertaken to maintain the national character. The military operations had hitherto been attended with success. The war had not for its object any extension of our empire in India; its only purpose was to obtain a secure and honourable peace. Their lordships would readily concur with him in congratulating his Majesty on another part of his Speech, which related to foreign affairs. He alluded to that part Lord Sheffield, in rising to second the Address, said it was not necessary for him to trespass on their lordships' indulgence at any great length, after the able manner in which his noble friend had brought forward the motion. He must, however, beg leave to make a few observations. It appeared to him, that the late pecuniary distress had arisen out of the peace and prosperity of the country, which, by creating a great accumulation of capital, induced persons to speculate to excess. The distress, however, was by no means general, and he congratulated their lordships that in all the manufacturing districts the spirit of combination among the working classes had entirely disappeared, and they had now returned to their usual habits of peaceful industry. He also congratulated their lordships, that the agricultural interest had met with no material check by the recent difficulties. Among the topics contained in the Speech there were many on which he might congratulate their lordships in common with his noble friend. It was highly gratifying to find that Colombia had finally established her independence, and that we had entered into friendly relations with that state, as well as with others in the same hemisphere. As to the war in India, it was well known that the principles on which it was carried on were sanctioned by the highest authorities in this country. With respect to that part of the Speech which adverted to the improved state of Ireland, he rejoiced to find that the measures introduced last session had been found effectual in reference to the administration of justice, education, and general improvement. The best proof of the efficacy of those measures was to be found in the tranquillity that now prevailed throughout every part of Ireland. Having thus briefly expressed his sentiments, he should sit down in the confident hope that their lordships would not hesitate to agree to the Address. Lord King said, that the noble mover and seconder of the Address had both mentioned the present embarrassments, but he did not find that either of them had said a word on the causes which led to them. He would endeavour to supply the omission. The causes were, in some degree, to be attributed to the government; in a greater degree, to the country banks; and in a still greater degree to the Bank of England monopoly. He would tell their lordships how the government caused this mischief. It had prolonged the existence of the one and two pound notes. It had passed a law to allow of country banks issuing them. The measure permitting this was the measure of ministers. As far as the present evil arose from the bankers issuing such notes, to this degree it had been caused by his Majesty's government. There was also a strong tendency in the measures of ministers to reduce the rate of interest; and for this purpose, the one and two pound note bill had been passed. They had reduced the rate of interest on Exchequer bills, in order to promote a great future reduction of interest. Their conduct reminded him of the memorable speech of a memorable ex-chancellor of the Exchequer, in which that noble lord had stated, that it would be no benefit, if every individual, when he awoke in the morning, found a guinea in his pocket; but it would be a great benefit if he found the rate of interest reduced when he awoke. Such was the sentiment of the accredited organ of government, and ministers now seemed to think that it was no benefit that wealth should be spread abroad amongst all the people, but a great benefit that it should be collected into heaps. The ex-chancellor would be a proper organ for the projectors of last year, who removed the useless guinea out of the people's pocket, and supplied its place by receipts for stock or scrip for loans. He would recommend the people, as the proper use of such paper, to subscribe it to build a monument to this ex-chancellor of the Exchequer. He had said, that the Bank of England had contributed to the dis tress; and he did not know any period of distress for the last thirty or fifty years, in which the conduct of that establishment had not been injurious. Let their lordships look back, and they would find, that the conduct of the Bank of England had, in every case, aggravated the distress by its conduct. It was a most faulty machine. It was impossible that a Bank so incorporated could do good. If their lordships were to set about erecting an establishment to do mischief, they would erect it on the very principles which governed that corporation; they would give it a monopoly, remove from it all fear of rivalry, and they would connect it with the government. The directors had no interest in the profit or loss of the concern; they had neither hopes nor fears for the result of their conduct; they had no interest in managing it well, but they had a strong interest in mismanaging it. The machine was altogether too vast to be well conducted; and this appeared to him one of the strongest reasons which could be urged for putting an end to the monopoly. The Bank, it might be supposed, had not produced the late crisis; but he contended that it was art and part in the whole. It had increased the issues of Bank notes at the beginning of last year. He did not say this on his own authority, but on the authority of the best-informed merchants in the city of London. Mr. Tooke had stated, in a book which well deserved their lordships' attention, that the issues of the Bank of England amounted, in April, 1823, to 17,750,4737.; in April, 1824, 19,011,575.; and in April, 1825, to 20,881,1231. This was a very considerable increase, amounting, as stated by Mr. Tooke, in the year 1825, to an increase, in the Bank circulation, of three millions, as compared with the issue of 1823. He could not better express the effect this had had on the country than in the words of the author-" Speculative operations, embracing so many commodities of great importance, in point of amount, necessarily created a large mass paper, and of transactions on mere credit, thus adding to a circulation already swelled by the increase of country bank notes. Such were the circumstances under which the Bank of England issued, and for some months maintained in circulation, an increased amount of its notes. Although this increased issue by the Bank did not alone cause the great additional excite |