§ MR. SINCLAIR (Falkirk, &c.)I beg to ask the Chancellor of the Exchequer whether, in the issue of ten shilling notes suggested or foreshadowed in his address at Leeds, he proposes to base these notes on silver or gold (coin or bullion); and if as against silver, will such ten shilling notes be legal tender only for the same sum as that (not exceeding forty shillings), to which silver coin is now limited by law?
§ MR. GOSCHENMy idea was that only so much silver should be held against these notes as, on consultation with men competent to judge, would be necessary, with a view to paying the notes in silver. The remainder will be secured partly on gold and partly on silver. The basis of the ten shilling note will be that it is payable in silver, and be a legal tender only to such amount in silver as the silver coinage itself.
§ MR. SINCLAIRDoes the right hon. Gentleman not consider that by offering 1359 such ten shilling notes in exchange for light half-sovereigns he will thereby obtain a large supply of gold as a nucleus for the commencement of his second gold reserve, while the holders of such light gold will escape risk of loss by such notes being legally tenderable for their face-value of ten shillings?
§ MR. GOSCHENThe question is not whether I should like the holders of the light half-sovereigns to take these notes, but whether they will take them in exchange. When they brought their half-sovereigns in they would be placed to their credit at the bank, and it would be desirable in many ways that they should be able to take out these silver notes.
§ MR. SINCLAIRAssuming that it was avoluntary action on the part of the holders that notes should be allowed to be exchanged in the way I suggested, would not the effect be that the right hon. Gentleman would thus obtain a large supply of gold for his second gold reserve?
§ MR. GOSCHENYes; it would substantially do so.