confined to the exchequer deposit, but would embrace all the public money in the hands of the Bank; or, to put it more shortly, deprive that body of six out of seven millions, leaving one million as an adequate remuneration for its trouble. Now, the utmost that could be obtained from the bill was, that the public would receive what was equivalent to the interest upon three millions instead of six. It was well known that there were no less than 56 balances of various kinds in the hands of the Bank, and the measure now proposed, only touched one of them.

The Chancellor of the Exchequer said, that the very title of this bill was the best answer to the hon. gentleman's observations. That title was for the application to the public service, of a part of the growing produce of the consolidated fund. It professed solely to refer to the exchequer bills account, which was certainly only one, though a very important one, of the 56 accounts of balances. The hon. gentleman was well aware that since the peace, the public balances in the hands of the Bank had been reduced to six or seven millions; he must also know, that with respect to several of these balances he had no control, as their appropriation was specifically enjoined by a distinct act of parliament. There was, it is true, another branch of public balances in the hands of the Bank, namely, the revenue balances, which were no longer suffered to remain in the hands of private bankers, and these were paid weekly, and

sometimes oftener, to the exchequer. If, in the course of business, still further sums could be rendered available for the public, he was ready to admit that such savings ought to receive immediate attention. He had no hesitation in saying, that the interest of six millions would be available to the public, three millions on the day after this act passed. The bill did not protect the Bank against any further reduction of their balances, if it should appear advisable to make such reduction.

Mr. Tierney said, that these Bank balances consisted of two descriptions; one from the growing produce of the consolidated fund; the other arising from the general receipts of the departments of the government. How came it, then, that the proposed measure was reduced to so limited a scale? As to these six millions being made available, he believed that such a hope had no existence but in the imagination of the chancellor of the exchequer. He, however, first took credit for three millions, going to meet certain arrears and deficiencies arising on former quarters out of the consolidated fund. Now, for such a purpose, he had no necessity for the present bill, as there already existed an act of parliament which provided for such deficiency by the issue of exchequer bills, which bills were to be met by the current revenue of the succeeding quarter. Then came the other branch, namely, the re-payment of three millions due to the Bank. What means had the House of knowing, that a sum existed to

be

be thus applied? Would the chancellor of the exchequer say, that there existed the means of making to the Bank an actual and positive payment of three millions? Surely, he must feel that it would be unbecoming in him to say so, merely because such a balance existed on one particular day in the quarter. Let him remind the right hon. gentleman, that early in the present session, he himself thought that the consideration of the Bank balances should be referred to the committee now sitting on the Bank question. The right hon. gentleman concluded with moving as an amendment, the postponement of the committal of the bill until Monday se'nnight. The Chancellor of the Exchequer replied, that his bill went to regulate the whole question respecting the Bank balances, and he could not consent to postpone it for the object alluded to.

The House divided on the chancellor of the exchequer's motion: Ayes, 154; Noes, 80. The House then resolved itself into the committee.

Mr. Tierney having pressed the chancellor of the exchequer to state, in what manner he expected to have between two and three millions available to go in reduction of the Bank loan, and that gentleman having replied, that he expected the amount would turn out as he had already stated it, Mr. T. declared that he did not believe a single word of it.

Some other questions and answers were made by different members, after which the House was resumed, and the report was

ordered to be received on the following day.

On March 29th the House of Lords entered upon the third reading of the bill for rendering the growing produce of the consolidated fund available for the public service.

The Marquis of Lansdowne said, that the bill should have his warmest support, since nothing could be more just than its provisions, so far as they went. He must, however, call their lordship's attention to the principle on which it was founded, and the very limited extent to which that principle was carried. Alluding, then, to the spirited efforts made by a member of the other House (Mr. Grenfell) to obtain for the public a share in the balances left in the possession of the Bank, the marquis observed, that the bill confined the application of its principle to one description of balances, namely, that on the growing produce of the consolidated fund, and asked, why was not this principle carried to a greater extent? Why was it not applied to the balances of the customs and excise, of which at least three millions might be made available each quarter in the same manner? It had been boasted that the arrangement contemplated by this bill would produce a saving of interest on balances to the amount of six millions, whereas the fact was, that the average of these balances did not exceed four millions. Besides, the advantage could only be enjoyed by the public for a small part of the year; for it was provided, that the bills made out

under

under the act of the 57th of the king, commonly called deficiency bills, should be discharged before this measure could operate. The sum required for the discharge of these bills, in the course of the last two years, amounted to not less than 3,300,000l., and the only advantage which the public could obtain by the measure, must be limited to the saving of interest on the casual and temporary employment of about 2,300,000l. after the deficiency bills were discharged, which, upon an average throughout the year, would not be more than equal to one million.

The Earl of Liverpool reminded the House, that the question as to the advantage the public ought to derive from the balances deposited in the Bank, had been very fully considered in 1807 and 1808, when the Bank proposed to advance a loan of three millions without interest, which it was then thought advisable to accept, rather than the other alternative. With regard to the average amount of the balances in question, it was probable that the sum would be ultimately not less than four millions. As to the balances to which the noble marquis had alluded, he had no difficulty in stating, that it had not been thought proper to extend the principle further at present, while an inquiry was going on which had for its object the affairs of the Bank.

The bill was then read a third time, and passed.

On April 5th, the Earl of Harrowby presented to the House of Lords a report from the Secret

Committee appointed by the House to inquire into the state of the Bank with reference to the resumption of Cash Payments. The report stated the notice by the Bank of their intention of paying in cash certain notes issued prior to 1817, which notice had been acted upon, and had caused a considerable drain of specie; and it recommended, with a view to the more speedy and effectual resumption of cash payments generally, that the Bank should be prohibited from paying in gold the notes for which such notice had been given. His lordship mentioned his intention to bring forward a legislative measure on the next day, in unison with the recommenda tion contained in the Report, with a view to the speedy passing of which, he should move that the standing orders should be taken into consideration to-morrow, in order to their suspension,

Earl Grey expressed his astonishment at the proposition which had so unexpectedly been made, and from which he could draw no other conclusion than that the conduct of the ministers towards the Bank was the result either of ignorance, or fraud. He could conceive no necessity for such a measure short of that which operated in 1797; and if that case had occurred, he contended that the same course ought to have been resorted to, namely, that the privy council should, upon their responsibility, have directed the suspension of cash payments at the Bank, and then would have succeeded the legitimate func

tions of parliament to have investigated the grounds on which that determination had been come to. He had felt it his duty to say thus much upon the very unexpected proposition brought forward by the noble earl, and against which he must now decidedly and solemnly protest. The Earl of Harrowby said, he had not given any notice in his situation as one of the king's ministers, but in his capacity as chairman of the committee by whom this report had been unanimously agreed to. Neither was there the least foundation for the supposition that this measure was required on the part of the Bank; on the contrary, there was no doubt whatever of its ability to make good all its engagements. The reason of the measure was, the opinion of the committee, that in order to ensure at the earliest period the permanent resumption of cash payments, it was expedient to pass the measure alluded to.

Some other lords spoke upon the subject; after which, Earl Grey rose again, and after asserting that he thought the measure proposed was pregnant with danger, but being aware that several of his noble friends viewed it in a different light, he said, that there being now a question before the House, the only mode to which he could resort was, to move that the House do now adjourn, The question of adjournment was put and negatived. The standing orders were ordered to be taken into consideration tomorrow, and the Lords to be summoned.

In the House of Commons, on

April 5th, the first report of the Secret Committee on the expediency of the Bank resuming Cash Payments, was made to the following effect:

"The Committee of Secrecy appointed to consider the state of the Bank of England, with reference to the expediency of the resumption of cash payments at the period fixed by law, and into such other matters as are connected therewith; and to report to the House such information relative thereto, as may be disclosed without injury to the public interest, with their observations thereupon, are engaged in deliberating upon their report, which they hope to present to the House on an early day after the approaching recess. The committee having a confident expectation that, in that report, they shall be enabled to fix a period, and recommend a plan, for the final removal of the present restriction on the Bank, think it their duty to submit to the House, that the execution of any such plan would, in their opinion, be materially obstructed and delayed by a continuance of the drain upon the treasure of the Bank, on account of the engagement of the Bank to pay in cash all its notes outstanding, of an earlier date than January 1st, 1817, and on account of the payment in cash of fractional sums under 51. That the committee therefore think it their duty to suggest to the House, the expediency of passing forthwith a bill, restraining all such payments in gold coin, until the report of the committee shall have been received, and considered by the House,

and

and a legislative measure passed thereupon."

Mr. Peel then rose, and moved for leave to bring in a bill founded on the Report which had been just read. Its object would be, to restrain the issue of sovereigns for fractional payments under 5., in consequence of notices issued in the course of 1816-17, in which the Bank undertook to pay in specie all notes dated previously to the 1st of January 1817. In consequence of these notices, the treasure of that body had suffered a very considerable drain. Accounts had been presented to the House of the issues of sovereigns between the 1st of January 1816, and the first of January of the present year, in which time it appeared that 4,500,000l. had been issued from the Bank: 700,000l. had afterwards been issued; so that the whole sum amounted to 5,200,000l. of treasure which had been withdrawn from the Bank. The object of the bill would be, to restrain, till the expiration of the present session of parliament, issues of cash such as he had described. The delay would enable the House to consider the subject, and to take the measures which the committee might hereafter suggest. The reasons for this measure lay within a short compass. Whenever the time came for removing the restriction, a large sum in cash would be necessary, much exceeding what the Bank had at present in its possession. This diminution of its treasure would make the Bank less able to return to cash payments, and would therefore tend to postpone the period for the termination of the

restriction. It was for these reasons, and in the fullest confidence that it would hasten the period of cash payments, that he should propose the measure. He was also equally confident that the restoration of a standard of value in this country, as invariable as the nature of things admitted of, would not be accompanied by those inconveniencies which some persons apprehended.

The right hon. member then moved "for leave to bring in a bill to restrain the Governor and Company of the Bank of England from making payments in cash, under certain notices given by them for that purpose." He then added, as it was of the highest utility that the measure should pass as expeditiously as possible, he hoped the House would allow it to go through its several stages that evening.

Mr. Brougham said, that he felt himself considerably embarrassed by the course taken by the chairman of the Bank committee, who proposed to them a measure not on their confidence in the responsible advisers of the Crown, not on their acquiescence in the arguments of a committee of their own; but on the allegation of something not explained, they were called upon to pass a measure of great importance, not only without discussion, but without the possibility of discussion.After reasoning for some time respecting the peculiarity of the case, Mr. B. asserted that nothing could have induced him to concur in the measure if it were merely necessary to support the credit of the Bank, but if he thought the stability of that establishment,

and