that a greater power had been given to the Bank of England, than was ever before given, in a free country, to any private body of men whatever. In that opinion he concurred; and so long as they continued to act in that way, and to support those principles, he, for one, should act with them [a laugh]. Gentlemen might put what construction they chose upon his expres sions, but he meant this-that, repeating his resolution of looking at measures, not men, so long as Messrs. Hunt and Wooler continued to uphold such doctrines, he should think as they did. With respect to what the hon. baronet had said about his near relation, he did most heartily concur with him and if any praise of his could confer one additional offering to the great character of that distinguished individual, he was most disposed to give it now. If ever there was a momeut of his (Mr. Peel's) life, in which he was most unquestionably and most eminently entitled to the gratitude of his country, it was the present one. The hon. baronet closed his speech by warmly applauding the conduct of his majesty's ministers in adopting the proposed measure, particularly at the present time, and by expressing his conviction of the advantages which would result from the measure itself.

Mr. Grenfell expressed his unwillingness to let the idea go forth that the petition presented by the hon. baronet was what it purported to be, namely, that of the merchants, bankers, and traders of London, as not one fourth of that body had subscribed to it; nor, in point of fact, was there any reason to believe that any material proportion of that respectable body acquiesced in its views. With respect to the declaration of the hon. baronet, that the witnesses adduced before the committee were not competent to judge upon this question, as it concerned the interests of trade, he concurred with his hon. friend who spoke last, in thinking that the hon. baronet had not read the report of the evidence, where he might have found the names and depositions of able and respectable merchants, Mr. Alexander Baring, together with those of six Directors of the Bank, and of Mr. Took, who was one of the first practical merchants in the empire. Could it then be stated with fairness, that the committee had not examined competent or practical men upon this interesting question?

Mr. Marryat admitted that gentlemen

of the utmost respectability, connected with trade, had been examined before the committee, but contended, that there was no proposition laid down by any one of those witnesses, which was not contradicted by another; so that like the minor quantities in an algebraic equation, it would be better to strike off the whole of the evidence as immaterial to the question, and that the House should go into the discussion of this important subject without at all referring to that evidence.

The petition was ordered to lie on the table, and to be printed. For a copy of it, see the proceedings of the Lords on Friday last, p. 598.

BANK OF ENGLAND RESUMPTION OF CASH PAYMENTS.] The order of the day being read for taking into consideration the Reports of the Secret Committee on the Resumption of Cash Payments,

Mr. Peel then rose and said, that in this instance he was placed in such a situation as peculiarly to justify his appeal to the House for a patient hearing; for as chairman of the committee appointed to investigate the affairs of the Bank, he was about to perform a great and difficult public duty, in calling its attention to a subject of as much importance as ever occupied the consideration of that House. This subject was indeed of universal interest, comprehending as it did the various concerns of an important corporate body, while it referred to the most minute regulations and the most humble transactions in the country. Important as it was, it involved principles so abstruse in their nature, and rested on details so complex and uninviting, as to be but ill calculated for fixing the minds of a popular assembly. It had likewise been exhausted by the great abilities already applied to it on other occasions and in other places; and, under these circumstances, to add either novelty or attrac tiveness to the question, would be, on his part, a hopeless undertaking. The com mittee of which he had the honour to be chairman, had been engaged for a considerable time in examining all the principles and details connected with this abstract and abstruse question; and if in bringing forward the resolutions which that committee thought proper to adopt, he should be betrayed into any erroneous observations, he begged that such error might be regarded as his own. With this delicate

t

question, he felt the impropriety of mixing any reference to party feelings or transactions. He could not, indeed, make any such reference without proving himself an unworthy organ of the committee from which the resolutions emanated. For in that committee there was no appearance whatever of mere party discussion. On the contrary, all the members of it devoted themselves most sedulously and patiently to the subject committed to their investigation, without turning aside to any point likely to interfere with a correct and candid decision; and made the public interest the sole object of their exertions and inquiries. It was after such an investigation that the resolutions which he had to submit to the House were adopted unanimously by the committee, with the exception only of the right hon. gentleman on the opposite side. It was right, however, to observe, that a considerable diversity of opinion had existed as to the principles by which our circulation ought to be permanently governed; and that several of the members of this committee who agreed in the main point, arrived at the same conclusion by different courses of reasoning. This, however, only tended to diminish the anxiety which would perhaps have otherwise pressed upon him, because it would now be understood, that he was delivering merely his own sentiments, and that for whatever errors he might fall into, he was alone responsible. In stating the grounds upon which his opinion was formed, he repeated the expression of his hope that he would be favoured with a patient hearing, which was the more necessary, considering the peculiar dryness of the subject, and that nothing was less calculated to excite a lively attention, or to produce an animated discussion. But his mind was relieved from considerable anxiety in the difficult and laborious task which he was induced to undertake, by the concurrent opinion of the gentlemen with whom he acted in the committee, and the great respectability of the evidence upon which that opinion was founded. He was free to say, that in consequence of that evidence, and the discussions upon it, his opinion with regard to this question had undergone a material change. He was ready to avow, without shame or remorse, that he went into the committee with a very different opinion from that which he at present entertained; for his views of the subject were most materially different when he

voted against the resolutions brought forward in 1811, by Mr. Horner, as the chairman of the bullion committee. Having gone into the inquiry, determined to dismiss all former impressions that he might have received, and to obliterate from his memory the vote which he had given some years since, when the same question was discussed, he had resolved to apply to it his undivided and unprejudiced attention, and adopt every inference that authentic information or mature reflection should offer to his mind; and he had no hesitation in stating, that, although he should probably even now vote, if it were again brought before the House, in opposition to the practical measure then recommended, he now with very little modification concurred in the principles laid down in the fourteen first resolutions, submitted to the House by that very able and much lamented individual. He conceived them to represent the true nature and laws of our monetary system. It was without shame or repentance he thus bore testimony to the superior sagacity of one with whose views he agreed on this point, although he differed so much from him on many other great political questions; but that distinguished statesman's opinions on this subject were such as must render his character still more respectable, and his loss more sensibly felt by the community at large. After this preface he had now to proceed to the question with regard to which the House was called upon to decide, namely, whether it was advisable that the Bank should at the earliest possible period resume its payments in cash? After the repeated declarations of parliament, that it was advisable that the Bank should, at the earliest possible period, resume cash payments, he had hoped, that the only points necessary for them them to proceed on that night, would be to fix on the period when the restriction should cease, and to adopt the most feasible mode of carrying their intention into effect. But it was impossible for him to conceal from himself that new and extraordinary opinions had been promulgated, which, if the House were prepared to act on them, must inevitably lead to an indefinite suspension of cash payments. When he recollected, that the necessity of a resumption of cash payments was recognized in the preamble of different acts of parliament-when he knew that no one objection was formerly made to the principle of doing so, he

confessed he was not exactly prepared to hear, that a principle the very reverse would be contended for. But, judging from certain publications, by which he feared the public mind was influenced, it did appear, that the return to cash payments was viewed in some quarters with alarm; and he came to this conclusion, that, if weight and authority were given to the principles and sentiments contained in those works, the House must be prepared to legislate for an indefinite suspension. It was therefore, absolutely neces sary in the outset, that parliament should make up its mind on this point, whether a metallic standard of value should or should not be resorted to? On this account it was, that, in the second resolution, he had called on the House to affirm the necessity for the adoption of a metallic standard. The House must now make up its mind upon the question whether the old metallic standard should be restored or not, and after an experience of 22 years, it was in his mind impossible that any considerate man should hesitate upon that question, or upon the expediency of returning to the ancient system of fixing upon some standard of value. Upon the necessity of establishing such a standard he could appeal to the opinion of all writers upon political economy, and to the practice of every civilized country as well as to that of our own antecedent to the year 1797. All the witnesses, indeed, examined before the committee, strongly recommended the establishment of this standard, one witness alone excepted (Mr. Smith, a very respectable man), who was an advocate for the indefinite suspension of cash payments. But when this witness was asked, whether the indefinite suspension of cash payments was to exist without any standard of value, he answered, "No-the pound should be the standard." He was required to define what he meant by the pound. His answer was, "I find it difficult to explain it, but every gentleman in England knows it." The committee repeated the question, and Mr. Smith answered, "It is something that has existed without variation in this country for eight hundred years-three hundred years before the introduction of gold." This was, indeed, the only definition he could give. But turning from this attempt at definition, and the theory of Adam Smith, it would be recollected, that Mr. Locke, after elucidating the subject of identity, dispelling

all the erroneous views with respect to innate ideas, and endeavouring to penetrate even the properties of eternity, could not, with all his power of reasoning, and subtlety of disquisition, succeed in defining what he meant by an abstract pound. On that point, indeed, this distinguished man was evidently misled himself, and, of course, misled his readers, Sir Isaac Newton, retiring from the sublime studies in which he chiefly passed his life-from the contemplation of the heavenly bodies-from an investigation of the laws by which their motions were guided-entered on the examination of this subject; but that great man came back, at last, to the old, the vulgar doctrine, as it was called by some, that the true standard of value consisted in a definite quantity of gold bullion. Every sound writer on the subject came to the same conclusion, that a certain weight of gold bullion, with an impression on it, denoting it to be of that certain weight, and of a certain fineness, constituted the only true, intelligible, and adequate standard of value; and to that standard the country must return, or the difficulties of our situation would be aggravated as we proceeded. The House would, he hoped, look at our circumstances in 1792, and contrast them with our present condition; for it would be absurd and useless not to look our dangers and difficulties in the face, or to attempt to disguise them from ourselves, while they were known to all foreigners. Every Jewish pedlar in Europe, indeed, was aware of our actual circumstances, and of the means of deriving profit from them. It ought, therefore, to be felt that the difficulties of our situation could not be diminished by our declining to acknowledge their existence, and it was notorious that the restoration of a metallic standard of value was essential to our relief from those difficulties. The issues of the Bank of England were the foundation on which was raised the superstructure of the country banks, and those issues were made either in the purchase of gold, the discount of mercantile bills, or the purchase of government securities. A distinction had been drawn between the issues of the Bank, and the paper issued by foreign governments, and it might be of some importance to examine this dis tinction. By reference to the accounts it would be seen, that in the year 1815 the advances of the Bank to government amounted to 35,000,000., and they now

amounted to 20,000,000, the amount of their notes in circulation being about 25,000,000l. Now it was well known that these advances were, not made on the security of any tax or duties already imposed, but in anticipation of future revenue. No provision was yet made for payment of the exchequer bills which the Bank held in acknowledgment of the debt created by these advances. How, then, could it be said that the issues of the Bank were regulated by the demands and necessities of the mercantile world? How could they distinguish between such advances to government, and a paper circulation directly emanating from it? There was indeed this difference between them -that if the notes were issued immediately from the government, instead of intermediately through them, an interest of 3 per cent would be saved to the country, But again it was contended, that it was very different from a forced paper circulation, and the validity of this distinction might also deserve a little inquiry. Was it not received in all ordinary payments, and had he who objected to receive it any remedy but to wait till the resumption of cash payments? But it was said the Bank was safe, their affairs were prosperous, the utmost confidence prevailed, their issues were made upon the best security, and the public faith was pledged to them. This was perfectly true, and clearly distinguished the Bank of England from all other establishments of the like nature. But did it follow that, because the Bank was solvent, there could be no over issue of its paper? If solvency alone was a sufficient proof that there was no excess of circulation, the theory of Mr. Law was just, and the land, as well as the funds, might be safely converted into a circulating medium. There was, in fact, no test of excess or deficiency, but a comparison with the price of gold. This was not indicated by theory alone; the last few years had afforded abundant experience to support and confirm it. The circumstances which had taken place since the year 1816, were such as must fill every man who carefully considered them with a desire to put an end to the present system. In the year 1815, our commerce was in full activity, a great impulse had been given, speculation was at its height, and the exports were great beyond example. But in 1816 and 1817 came the natural result of these overstrained hopes and exertions. A langour proportionate to the degree of

excitation succeeded. An immense accumulation of property had taken place, for which there was no demand. Prices fell, the country banks stopped their issues, and thousands were in a moment stricken to the ground by a blow which they could not foresee, and against which it was impossible to provide. The amount of Bank of England notes in circulation previous to 1814, was about 23,000,000/.; in 1815, it was about 25,000,000l.; in 1816, 26,000,000l.; and at the end of 1817, 29,000,000l., together with a large issue of gold. At that period trade revived, and importations were made from all parts of the world. Many were deceived by a nominal profit, which, in truth, resolved itself into an excess of currency, and the same scene of distress and embarrassment was renewed. He. might refer for the truth of this melancholy statement to a part of the evidence to which his hon. friend near him could, he apprehended, entertain no objection. He was sorry to find that his hon. friend's attention was not quite so lively as he had reason to expect. The evidence to which he was referring was that of Mr. Gladstone, who stated, that the value of grain and provisions imported at Liverpool, from Ireland, in 1817, was 1,200,000l.; and in the last year, 1,950,000l. He added, that in the year 1816, 270,000 bales of cotton were imported at the same place; in 1817, 350,000; and in the last year, 457,000. The consequence of this excess above the demand was, a fall in the price of cotton of not less than 40 per cent. The same gentleman declared, that in 1818, there were in Liverpool, goods to the value of 3,000,000l. above what were deposited there in the preceding year. All this overtrading was productive of no advantage; but as respected the labouring classes it was attended with incalculable mischief. The unequal and fluctuating demands for labour deranged all the relations of humble life. At one period wages were too high; at another there was no employment. The rapidity with which these changes sometimes followed each other defeated all private arrangements, discouraged the steady accumulation of savings, and frequently overwhelmed the labourer with want and misery. He felt himself bound to speak out boldly and decisively upon the subject; for it was impossible to listen to the descriptions recently given by the hon. members for Coventry and Carlisle, of what the situation of the