Prorogation.

SECOND Report of the Committee of Secrecy on the Resumption of Cash Payments.-On May 6, Mr. Peel presented to the House of Commons an elaborate report, divided by the committee of secrecy into two parts;-the results of their inquiries into the state of the Bank of England,and their opinion with respect to the expediency of the resumption of payments in specie, at the period at which by law they are to be resumed. On the first head, they stated themselves to have begun by ascertaining that the sums which the Bank were liable to be called on to pay in fulfilment of their engagements, amounted on the 30th of January last, to 33,894,380., and that the Bank were then in possession of government securities and other credits to the amount of 39,096,900l., leaving a surplus in favour of the Bank of 5,202,320.; exclusive of the permanent debt due from government to the Bank of 14,686,8001., re-payable on the expiration of the charter. VOL. LXI.

The committee then informed themselves of the amount of cash and bullion in the coffers of the Bank at various periods since 1797, and of the quantity of gold coin issued by it between the 1st of January 1817, at which period a partial resumption of cash payments had been resorted to, and the 1st of January 1819; which was found to amount to about 6,756,000l. They next call the attention of the public to the amount of the debt due by it to the Bank of England, which, on the 29th of April last, reached the sum of 19,438,900l. After a variety of details and references to evidence connected with this part of the subject, the committee add;-That the amount of their advances to the public is urged by the Bank as one of the main impediments to their early resumption of cash payments; and that, in order to make preparations for their resumption, the Bank require a re-payment to the extent of ten millions. For such re-payment, the committee ear[F]

nestly

nestly recommend it to the House to make immediate provision, and also to establish some permanent provisions limiting and defining the authority of the Bank to make advances to the government, and to purchase government securities; and bringing under the constant inspection of parliament, the extent to which that authority may be in future exercised.

On the second head of inquiry, the expediency of returning to cash payments at the period fixed by law, the committee proceed to state arguments and detail evidence from which it appears first, that the Bank have already very considerably reduced their issues of notes since the beginning of 1818; 2ndly, that in order to secure themselves against the effects of a return to cash payments in July next, it would be necessary for them to make a further and very sudden reduction of that portion of their cur rency which they have immediately within their control; 3rdly, that such reduction in the present state of the trade of the country, would be attended with very serious inconvenience; in consequence of which, the committee recommend the further postponement of the resumption of payments in specie.

A third branch of the inquiries of the committee had for its object to ascertain the supply of gold which might be required to meet the demands upon the Bank on the resumption of payments in specie, and the practicability of commanding such supply. The evidence on this head embraces a variety of facts relative to the in

vestment of British capital in foreign funds,-the rates of exchange, and the effects likely to be produced on such rates by the proposed resumption. On the whole, it is inferred that Great Britain has the power of commanding a metallic currency, but that the return to it ought to be gradual; and the committee conclude, by recommending to the attention of parliament the following outlines of a plan for the purpose. "That, after the first of May 1821, the Bank shall be liable to deliver a quantity of gold, not less than 60 ounces, of standard fineness, to be first essayed and stamped at his majesty's mint, at the established mint price of 31. 17s. 10 d. per oz., in exchange for such an amount of notes presented to them as shall represent, at that rate, the value of the gold demanded:— That this liability of the Bank to deliver gold in exchange for their notes, shall continue for not less than two, nor more than three years, from the 1st of May 1821; and that, at the end of that period, cash payments shall be resumed:

That on a day to be fixed by parliament, not later than the 1st of February 1820, the Bank shall be required to deliver gold, of standard fineness, essayed and stamped as before-mentioned, in exchange for their notes (an amount of not less than 60 oz. of gold being demanded) at 47. 1s. per oz., that being nearly the market price of standard gold in bars on an average of the last three months."

These suggestions of the committee of secrecy on being referred to a committee of the

whole

whole House, were adopted with some modification as the foundation of two bills, which, after considerable discussion in the Commons, passed both Houses.

Motion for referring to a Committee the Petitions from the Royal Burghs of Scotland.-May 6. Lord Archibald Hamilton rose and said, that after the petitions which had been presented to the House, praying a reform in the constitution and government of the Royal Burghs of Scotland, he trusted that no apology was necessary for occupying the time of the House with this object. But when he had last month brought forward a subject intimately connected with this, the abuses of the burgh of Aberdeen, though he had stated as distinctly as he could, both what his motion was, and what it was not, he had not however escaped the unfair and unfounded insinuations of the gentlemen opposite. They charged him with using the subject merely as a cloak for parliamentary reform; a charge totally unfounded, and which he again disclaimed both for himself and for the peti tioners, whose sole object it was to obtain a reform in the internal management of the burghs, radical and comprehensive indeed, but not more than commensurate with the occasion. The grievances complained of were not new, neither were they partial nor transient. Twenty-five years ago, similar complaints had been made by the burgesses of Scotland; and a report of a committee employed to inquire into the subject had been laid on the table of the House. Between a reform in

parliament and the present object, there was no necessary or direct connection; the remote and indirect connection between them, he would frankly explain;-it was simply this: At present, the magistrates returned the member to parliament without any interference or participation of the burgesses; the burgesses wished to have the same power as to the election of the magistrates, which the magistrates now had in the election of the member. And if this were granted, the magistrates would still retain the same power as now; the only difference would be, that being themselves appointed and maintained by public opinion, instead of being self-elected and selfmaintained in defiance of it, they would probably elect such members as were approved by the burgh at large.

The existing burgh system in Scotland, he proceeded to say, was so oppressive to the inhabitants, so abhorrent from every principle of justice, and so very different from the government of any other part of the united empire, he might say of the civilized world,-that he found it difficult to conceive how the House could refuse a committee of inquiry. He appealed to all who heard him, if in the cases brought under the notice of the House, particularly in that comprehended in the petition from Aberdeen, a scene of fraud and oppression was not disclosed which called loudly for investigation. What was the existing system? Self-created power, acting under self-created immunity, sanctioned by law. magistrates first appointed and [F 2]

The

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continued themselves in office, and then had this unbounded control over the funds of the burghs; they were empowered to contract debts to any amount they pleased, and though the burgesses were not entitled to inquire into their accounts, or to check their expenditure, they were responsible to the full extent for the debts thus contracted. This had been shown in the case of Aberdeen: there the burgesses had no means even of detecting the frauds committed by the magistrates; and if they had the means of detection, they were unable by the present practice, fortified by decisions at law, to obtain any redress. The petitioners also said, that the system was the same in the other burghs. It was from parliament only they could seek relief. Whatever might be the unjust iniquitous conduct of the magistrates, still there was no remedy, no appeal on the part of the burgesses to any court of law, so long as the town council remained unanimous. Another abuse which demanded revision was, that the acts of parliament in favour of the burgesses, such as those which required the residence of magistrates and prohibited the sale of seats in the town council, were allowed to fall into desuetude,, while those which supported the unjust and oppressive power of the magistrates continued in full force. Civil or political rights the burgesses of Scotland had certainly none, and if they had no municipal freedom or protection, what right remained to them, unless indeed that of suffering patiently this accumulation

of injuries and of grievances ? The noble lord proceeded to detail other hardships to which the burgesses were exposed, of which the illegal exaction of cess was one. He refuted the opinion advanced on a former occasion by the lord advocate of Scotland, that all which was wanted, was an act regulating the burghs accounts, and that the act of union was an insuperable bar to any more effective interference on the part of the House, and he stigmatized the bill which that learned lord had introduced last year,had suddenly and mysteriously withdrawn, and had again introduced this year, as involving an aggravation rather than a diminution of the existing evil. He concluded by moving for a select committee, to consider of the petitions from the Scotch burghs, and to report thereon.

The motion was opposed by Mr. W. Dundas, Mr. Boswel, lord Binning, and Mr. Forbes, principally on the ground of its alleged connection with parliamentary reform; it was supported by Mr. Primrose, Mr. P. Grant, and Mr. Wynn; the latter of whom concluded by remarking, that he had not heard any contradiction to the statements of the petitions; and he believed he might say with confidence, that at no time had such statements ever been made without securing parliamentary interference.

Mr. Canning thought it proper to assign his reasons for voting against the motion of the noble lord. He denied in general the position advanced by Mr. Wynn, that the House might, notwithstanding the act of union, which reserved

reserved the rights and privileges of the Scotch burghs, legislate for these as it might do respecting English ones; though he did not dispute that where a case of malversation ad hoc was made out, this might be done. The bill of the lord advocate remained for future discussion; but to the present motion he never could accede, because he was averse to any attempt to meddle with the established system of Scotch representation; entertaining as he did the utmost apprehensions of the consequences of any measure tending to what was called parliamentary reform, to which he declared his decided opposition, "whether it exhibited itself in the broad, gross, disgusting, tyrannical, and insulting shape, in which of late it had appeared in other places, or in the more plausible and less offensive, but not less dangerous character, in which it was occasionally laid before that House."

On the division, the numbers were, Ayes, 149; Noes, 144: Majority for the motion 5. A result which was received with loud cheers by the opposition.

Army Estimates.-May 7. The House having gone into a Committee of Supply, lord Palmerston said, that in bringing up the army estimates, he should trouble the House with few remarks, as little could be added to the minute details of the finance committee on this head. Upon a general view of the numbers of the army for the present year, as compared with the number of men voted last year, taking, in the first instance, the permanent

establishments of the two years, and leaving out the troops in India and in France, there would be found a diminution of 9,800 men. Upon a general view of the estimates of last year and the present year, there appeared to be a diminution in the present year of 26,042 men. This was the amount of the reduction of force which had actually been effected since the estimate of last year. After entering into a variety of details of expenditure, through which it would be superfluous to follow him, the noble lord concluded with moving, that a sum not exceeding 258,776l. 11s. 2d. should be granted to his majesty to complete the sum required for defraying the charge of his land forces from Dec. 25, 1818, to Dec. 24, 1819.

Colonel Davies conceived, that a saving of 120,000l. might be effected on the estimates, by means which he should explain hereafter. He could not help expressing his astonishment at the increase of the staff, and particularly when he compared that of Ireland with this country. In England, Scotland, Guernsey, and Jersey, there were seven general officers, exclusive of the commanders in chief and the heads of departments, to 25,000 men. In Ireland, to a force of only between 17 and 18,000 men, there were no less than eleven general officers. He likewise questioned the utility of the military college, which appeared to him only a pretence for keeping up an enormous establishment.

Mr. Hume was not one of those who thought a standing army should be entirely disbanded in