EXCHEQUER BILLS BILL. (Hansard, 20 March 1817)

§ Mr. Barnett
wished to be informed, whether it was the intention of the chancellor of the exchequer, before he communicated to the House his view of the ways and means for the year, to add still farther to the unfunded debt of the country, amounting, as it did now, to fifty millions, what must be the effect of such a floating debt, in the event of a change in our relations? Unless the right hon. gentleman was assured, that the tenure of his office was in perpetuity, he surely ought to feel what would be the nature of his successor's difficulties, under any change of system, in consequence of the course he was pursuing. It might throw wealth into the coffers of the bank of England, but the country had something more to expect, under its difficulties, from a public minister, than this trifling game with any public body.

The Chancellor of the Exchequer
could not think the House would object to the issue of exchequer bills, when they considered how much more advantageous such a mode of raising money was, than contracting a loan with the three per cents at 80. He admitted that it would be injurious to the country to continue such a system from year to year; but he approved of it as a temporary expedient, until an opportunity should arise of converting the unfunded into a funded debt, with more advantage than could be done at present.

Lord Cochrane
observed, that the exchequer bills were usually deposited in the bank of England, and bank notes, bearing no interest, issued on them; and that this was the cause of the present rise in the funds.

The Chancellor of the Exchequer
said, that if the noble lord had inquired in the city, he would have found that exchequer bills were disposed of in a very different manner, and that they bore a high premium in the market.

§ Mr. Brougham
censured the plan of finance, from hand to mouth, which the chancellor of the exchequer was pursuing, as one which had no solid foundation. Some other expedients, to which the right hon. gentleman would have recourse, were rumoured abroad, but they were of a nature that he could not credit, and he mentioned them solely to give him an opportunity of contradicting them. The House must be aware, that the West-India dock company were bound by an act of the 39th of the king, after their dividends had reached 10 per cent, to divide no more, but to reduce the rates of admission to the docks, in favour of the trade of the country. One would think that while the trade of the country laboured so excessively as it did at present, government would gladly resort to every means of affording it some relief; but the report stated, that instead of so doing, government, like spendthrifts, without even waiting for the expiration of the 21 years of the company's charter, were resolved to renew their lease, and receive from them a fine of about 5 or 600,000l. This, it was said, would form one of the miserable expedients of raising money. But from what funds would it come? Not from the funds of the company, but from the commerce of the country, in favour of which the act had originally stipulated for the reduction of the rates. Similar rumours were in circulation with respect to other companies, to all of which lie anticipated a direct contradiction.

The Chancellor of the Exchequer
thought it strange that the hon. member should censure ministers for a reputed act, which he acknowledged was without foundation. The hon. member was correct in saying that such rumours were wholly without foundation; no negociations had been entered into with the dock company concerning it. But he at the same time reserved on the part of the government and the country, a right of participating in their profits if they should find it necessary.

§ Alderman Atkins
said, that there was a redundancy of floating cash in the market, of which the chancellor of the exchequer was perfectly right to take advantage. He hoped, however, that his right hon. friend would not think of inducing the House to continue the monopoly to the dock company against the best interests of the commerce of the country.