years been ineffectually recommending. unnecessary. How was it possible, while Whether the present embarrassments the great bulk of the population were arose from over-trading, an over-issue of kept in their present state of exclusion, paper, or any other cause, he knew not; that there could be tranquillity or conbut of this there was no doubt, that the tent? He rejoiced, however, at the revenue had decreased. The same causes prospect of any measures that might tend might recur again, and the same conse- to better the condition of that country. quence follow. The only way of guard- But, nothing could be permanently ading against such an inconvenience was by vantageous, until the Catholics particia system of retrenchment and economy. pated in all the constitutional privileges By no other means could the country of their fellow-subjects. This being once ever hope to see an efficient sinking fund. done, they might safely draw off the Had they commenced upon a principle of immense standing army which they now retrenchment ten years back, and acted found it necessary to maintain for the upon it steadily, how different would the purpose of overawing the people. Though state of the country now be! Instead of not prepared to support the amendment a sinking fund of 5,000,000l., it might of his noble friend, he had felt it his duty have been eight, ten, or even twelve to throw out these few observations. millions; and thus would not only a great part of the interest of the public debt have been got rid of, but a considerable part of the principal. There was not a single branch of their expenditure in which retrenchment should not have been introduced long ago; but the largest reductions should have been made in the standing army. There was no reason on earth, why the army should not have been greatly reduced, as had been the case on the termination of all former wars. This was also most important in a constitutional point of view. What was this large army wanted for? At one time, the cause assigned was the existence of a party called the radicals. But, did their lordships not recollect the events that took place at Manchester? There a more numerous body than had, perhaps, ever assembled upon any former occasion, met together. They created considerable alarm; but, formidable as they appeared, they were dispersed by a handful of yeomanry. Was not this a sufficient proof that the peace of the country might be preserved without such a large and unconstitutional army as the country was called upon to support? Had we hus banded our resources, how much better able should we now be to meet the expenses of the disastrous war in India. He did not know to whose counsels that war was to be attributed, but this he would say, that they had much to answer for, unless they could shew clearly, that it was founded on necessity and justice. Then, with regard to Ireland. Those had much to answer for who refused to concur in a measure which would have effectually secured the peace of that unhappy country, and rendered a large military force Lord Teynham said, he should oppose the amendment. With respect to the Corn laws, it should be recollected that the country was at present in an artificial state; that we were subject to an enormous taxation; and that while such was the case, it was not to be expected that the grower of corn here could compete with the foreign grower upon any thing like equal terms. The agricultural interest had been always anxious to lighten the distresses of the other classes of the community. The difficulties of the present time did not arise from the corn laws, but were mainly to be attributed to that spirit of ruinous speculation which had unfortunately taken possession of the country. He did not see how the present military establishment could be reduced, consistently with the best interests of the country. He trusted that, in conformity with the suggestion thrown out in the Speech from the throne, such measures would be adopted as would prevent the recurrence of the difficulties which had lately been experienced in the moneymarket. The Marquis of Lansdown said, he did not rise for the purpose of at present discussing the unfortunate topic which formed so prominent a part of the Speech from the throne, for it would be impossible for the House to enter upon that topic, without having received any information respecting the nature of the views and intentions of his Majesty's government. It was a subject upon which he could not say any thing, without saying a great deal; he would not, therefore, now attempt to inquire how far that measure would be obliged to receive re-consideration, which authorized the issuing of 17. and 21. notes ; how far the present embarrassments were owing to that measure, to the other laws relating to banks, and to the monopoly of the Bank of England; or how far any of these causes had produced the evil now admitted to exist. All he meant to do at present was, to claim a complete reserve on the part of himself and of the House, as to their opinion respecting the possibility of the application of any corrective, or of that in particular which seemed to becontemplated by the king's government. He did not even wish to call on the noble earl opposite to state more particularly at present the nature of his proposed corrective, because he did not think that the address pledged the House to any thing upon that subject. The case was the same with respect to the Corn laws. Not that he did not think it would be incumbent on their lordships, and the members of the other House of parliament, to express their distinct opinion upon these subjects; but that they were not called on to do so in the absence of that information which he believed his majesty's government had been endeavouring to procure. The same observation applied to the state of the currency, as well as of prices in this country, because he believed it would be impossible to separate these questions from each other, and also from the question of free trade. Having said this, he trusted he had said enough to preclude himself, and he hoped others, from entering upon the discussion of these topics at present, leaving it to the noble earl, if so disposed, but not at all pressing him, to state more particularly the nature of his intentions upon the subject; and also whether he had any measure in view respecting the state of Ireland. The Earl of Liverpool said, that he did not feel himself warranted in intruding on the attention of the House for the purpose of entering into a discussion upon the several very important topics which naturally grew out of the Speech from the throne, and which undoubtedly involved questions of the greatest political interest. After the statement made by the noble marquis, he certainly did not conceive himself called upon to enter upon the consideration of those important points on the present occasion. At the same time he considered it necessary, with respect to a question of so much political interest, that he should use no reserve not as to details, for it would be impossible to treat of them with effect at that moment-but as to the general nature of the measures which it might be the disposition of government to propose. He would therefore trouble their lordships with a very short statement. In the first place, however, he would call their attention to this circumstance, that the convulsions in the pecuniary transactions of the country were not unexpected by him or by other members of his majesty's government. Their lordships might recollect that in March last, he would not say he took, he created almost, an occasion of stating to their lordships what, sooner or later, would be the effect of the rash spirit of speculation which then existed in the country, and of giving notice, in a few words, to their lordships and the country, that if the consequences which he predicted did arise, the relief which had been applied on former occasions would not again be applied to meet the new evil. He had given that warning, in anticipation of what was to come. He had told those persons who, by rash speculation, might become involved in distress and ruin, that they must abide by the consequences of their own acts, and that they would have no right to expect from government and parliament that relief which had been afforded on some former occasions. A noble baron had adverted to what he conceived to be the causes of the recent events. When the proper opportunity arrived, he would not be disposed to avoid discussion on that point. There was one cause, however, so prominent and so great in magnitude, that even if he were disposed to allow that other circumstances might have acted in the way of aggravation, yet this cause was so complete in itself, that it was sufficient to account for all that had happened. Their lordships knew the general spirit of mad speculation which had prevailed in the country during the last two years, and they would at the same time recollect his having stated, on the occasion to which he had before referred, that that spirit was not confined to the metropolis alone, but was extending itself all over the country through the medium of the country banks. It must be evident that, from the peculiar nature of the circulation of country bank notes, it was extremely difficult to state precisely what was the amount of that circulation at any particular period. But there was a document which showed the progressive state of the country banks' circulation with sufficient accuracy to serve the purposes of general reasoning. All country bank notes required to be stamped; | of things. He agreed with that part of and therefore parliament had it in its power his Majesty's Speech which stated, that to call for a return of the number stamped for the effects of over-trading, and rash for each banker. Now, it appeared from speculation growing out of the prosperity a return, which would be laid on their of the country, no cure could be found in lordships' table, that in the years 1821, legislation, and that it was only to be found 1822, and 1823, the average number of in individuals having a due sense of the notes stamped in each year was four mil- danger and inconvenience to which they lions and one or two hundred thousand. exposed themselves by such acts. But, He spoke of their value, not of their nu- he likewise concurred with the declaration merical amount. The difference between in the royal Speech, that correctives and particular years within that period, never palliatives might and ought to be applied amounted to more than one or two hun- for the present distress. It was no fault dred thousand pounds-a difference which of his noble friend near him (lord Bexley) might easily be accounted for by incidental nor of himself, that the measures which it circumstances. In 1824, when the spirit was the intention of ministers to bring of mad speculation to which he had re- under the consideration of parliament bad ferred first began to prevail, the amount not been before adopted. He would give of country bank notes increased to about their lordships a short description of them. 6,000,000%.; and, in 1825, it increased to The measures which would be brought more than 8,000,000l., being double what it forward were not new. They had, on was in 1821, 1822, and 1823. Was it not former occasions, been brought under sufficient to state that fact to their lord- consideration. From what causes they ships, to account completely for all the evil had failed, was a question which it was effects of over-trading and rash specula- not necessary to discuss. It was sufficient tion upon the general interests of the for him to show, that they were not new country? He did not deny that, during ideas, drawn out for the first time by prethe same period, there had been some in- sent circumstances. The putting of some crease of the Bank of England paper; check, in one way or other, on the issue but it bore no proportion whatever to the of small notes, was a plan suggested by increase in the general circulation of the his noble friend. So likewise was an arcountry banks. The noble lord who com- rangement with the Bank of England, menced the debate had accused ministers having for its object to alter the situation of having participated in causing the ex- in which that establishment stood with the isting embarrassments, by endeavouring public. He had no difficulty in stating to lower the rate of interest. If ministers what it was intended to propose on the had introduced any forced measures which present occasion. Indeed, he thought it could operate to lower the rate of interest, better that no uncertainty should prevail such conduct would have been highly on the subject; for it frequently did blameable; but he denied that ministers more mischief than a full knowledge of had done any thing of the kind. What the general purport of the measures were the facts? There was a rise in the which government meant to adopt. He price of public securities, and a lower rate had therefore no difficulty in stating, that of interest, the consequences of continued one of the measures which government peace and the prosperous state of the intended to submit for the consideration country. Government would have been of parliament, was a regulation, by which highly reproachable, if they had not taken one and two pound Bank-notes would advantage of those favourable circum- be gradually withdrawn from circulastances, in order to reduce the burthens tion, and a metallic currency substiof the people. By the measures which tuted for them. Another measure which they adopted, they had been able to take government would propose had become of off 1,800,000l. of taxes, and to reduce the essential importance to the interests of the interest of the national debt, in the first country. He did not mean to join in the instance to the extent of 1,400,000l. and reflection which the noble baron had cast subsequently of 150,000l. a year. He upon the Bank of England; but he was had very shortly stated these points, be- perfectly satisfied-and he had entertained cause he might have occasion hereafter to the conviction for years-that the country go more into detail, when it would be his had grown too large, that its concerns had duty to endeavour, in some degree, to become too extensive, to allow of the expoint out a remedy for the present state clusive privilege of the Bank of England. VOL. XIV. C The privilege of the Bank might have been highly useful in the early period of our commercial transactions; but the country was now too large for any one such exclusive establishment. The Bank of England's privilege operated in a most extraordinary and, he thought, a most unfortunate manner for the country. Any small tradesman, a cheesemonger, a butcher, or a shoemaker, might open a country bank; but a set of persons with a fortune sufficient to carry on the concern with security were not permitted to do so. He was old enough to remember the time when there was scarcely such an institution as a country bank, except in great commercial towns, and when the transactions of the country were carried on in Bank of England notes, and money obtained from London. But now, when such a mode of conducting the transactions of the country was no longer practicable, it ought to be the policy of parliament to place all country banks on a solid foundation, and to amend a state of law which he would not say allowed of the establishment only of banks which were not solid, because he believed the greater proportion of the country banks were substantial, but which certainly prevented the establishment of those which, from the nature of their constitution, must be most solid. It was, however, necessary to deal with the existing charter of the Bank of England, which would not expire till 1833. But, if the Bank could be induced to give up so much of their exclusive privilege as related to country banks, and if they would accompany that surrender with a measure which would be desirable for their own sakes; namely, the establishment, in some parts of the country, of branches of their own institution-the effect on the general circulation of the country would, he thought, be most beneficial. Such was the general nature of the measure which government would feel it necessary to propose at the present moment. He had considered it better to make this general statement, than to leave the intentions of government involved in obscurity or doubt. He did not mean to say that there were no difficulties to be contended with. The whole question must be the subject of discussion hereafter. To enter upon that discussion at the present moment would be improper. With respect to the question put to him by the noble baron, on the subject of the Corn Jaws, he had no difficulty in repeating what he had stated last session; namely, that his opinion was, that sooner or later it would be highly desirable to revise the general system of the Corn laws. There were, however, a variety of circumstances to be taken into consideration. He had no difficulty in stating, that it was not his intention, nor that of any member of his majesty's government, to bring forward any proposition with regard to the general question during the present session. He saw no circumstances connected with the present situation of the country, which rendered it the imperative duty of government to bring that question under the immediate consideration of parliament. He had spoken particularly of the general question; because, a detached measure with respect to Canada corn, which was passed last year, and would expire in 1827. it might be necessary to re-consider in the course of the present or of the next session. Upon the point, whether it would be expedient to review that particular measure during the present session, he would reserve himself; but he wished it to be distinctly understood, that go. vernment did not consider it necessary to bring forward the general question during the present session. A noble lord had alluded to the absence of his Majesty. He was at a loss to imagine what could be the noble lord's object in introducing such a topic. He had, however, no objection to state, that his Majesty's absence was owing to indisposition alone. The Earl of Carnarvon doubted whether the gradual withdrawal of the 17. and 27. Bank notes would have all the beneficial effect which the noble earl anticipated from the measure. He greatly feared that the prosperity of the country, during the last two or three years, had rested upon a fallacious foundation. He apprehended that the apparent prosperity had partly arisen from the measure which authorised the circulation of small notes. That measure had produced good in the first instance, and evil afterwards. He had never concurred with the opinion which many had entertained of the difficulties of the country having terminated with the resumption of cash payments. It was impossible to pay in gold a debt contracted in paper. He hoped that parliament would take the whole of the question into its consideration, and not confine its attention to particular branches. He supposed it was intended to place country banks generally on the same footing with sent state of the country, then, be matter of surprise, when a demand was made on its labour and capital to the amount of seventeen millions? The noble earl had read a statement of the increased issues of country bank-notes for the last year or two; but if he wished to account for the embarrassments of the country, he had better analyse the number and qualities of the Steam and Mining, and other jointstock companies which had recently been formed, and the quantity of capital which had been sunk in these speculations. At all events, if it was intended to restrict the circulation of one and two pound notes, he hoped that such a restriction would not be extended to Scotland. The Amendment was negatived, and the Address agreed to without a division. HOUSE OF COMMONS. Thursday, February 2. ADDRESS ON THE KING'S SPEECH AT THE OPENING OF THE SESSION.] The Speaker having reported the Speech of the Lords Commissioners, and read it to the House, those in the northern part of the island. Previous to the last war, the greatest portion of the currency of those banks was paper. Under that currency Scotland had flourished, and had not experienced those convulsions which this part of the country had felt under the restrictive system. It was therefore highly desirable that parliament should consider the question in all its parts, and establish a permanent system instead of constantly changing its measures. The Speech from the throne held forth the prospect of years of continued peace. He hoped that those years would be occupied in establishing the internal condition of the country on a permanent foundation. If any alteration was to be made in the currency, it had better be effected at once, than gradually. A graduated system was proposed in 1819, and their lordships knew that it had been productive of no benefit. The temporizing measures adopted with respect to the silk-manufacture, had greatly aggravated, if not entirely caused, the distress under which that trade was at present suffering. The introduction of foreign silks was postponed for two years; and the consequence was, that the manufacturers entered into Mr. John Stuart Wortley (member for extensive speculations, and over-stocked Bossiney) rose, for the purpose of moving the market during the period allowed for an Address to his Majesty, in answer to the continuance of their monopoly. If the Speech which had just been read. In they had been allowed only a few months doing so, he was, he said, aware of the to dispose of their stock on hand, the ex- difficulty of the task which he had underisting distress would not have prevailed. taken, from the circumstance of his being The Earl of Lauderdale said, that from a young member, and this being the first the time he had first thought upon the time he had had the honour to address subject, he had always been of opinion that assembly. It had been the duty of that a paper currency, convertible into his predecessors, in the task which was gold on demand, was that which was best now assigned him, to congratulate the adapted for the transaction of the business country upon its flourishing condition. of a country. A currency of that de- In the Speech which had been just read, cription at present existed in this country. he also found motive for congratulation; He challenged any of their lordships to although the year which had passed over state an instance, since the resumption of them had not been marked by some so cash payments, in which gold had not pre-eminent advantages as former years been given in exchange for paper when had been. In adverting to the royal demanded. In his opinion it was not to Speech, the first subject that arrested his the currency that it was necessary to look attention was the formidable shock which for the origin of the existing embarrass- the commercial credit had recently susments. In the course of the last year tained. This was the topic that most there had been a demand on the capital strongly challenged the attention of the and labour of the country, to the extent House; and they should come to the of 17,000,000l. Let any man consider consideration of it boldly and manfully, whether the country was capable of an- with a view of removing it, or at least, swering that demand. The distress which checking its increase. And here due was caused at the commencement of the credit must be given to ministers for late war, by the raising of a loan of only having introduced this important subject four millions, was nearly as great as that to the notice of parliament. They stated which at present existed. Could the pre-it with candour, and admitted it without |