Sir James Grahamsaid:—I hope I may be allowed to ask certain questions of ministers relative to the Currency of the country. Considering the advanced state of the session, and that early next year an important alteration is to take place in that currency, I hope the chancellor of the Exchequer will allow me to ask whether it is the intention of government to adhere to the plan already laid down of preventing, after the 5th of April next, the issuing, re-issuing, and negotiating of notes in England for less sums than 5l.? My next question is, whether it is their intention to allow the circulation of notes for less sums than 5l. in Scotland and Ireland? and, if that question should be answered in the affirmative, whether it is their intention to take any, and if any, what step, to prevent the circulation of the small notes on this side of the Scottish border? My last question is, whether it is their intention to propose any alteration in that part of the act which prevents banking companies from consisting of more than six partners, at any distance less than sixty-five miles from London, from issuing notes or bills of exchange for less than 50l. payable in London?
The Chancellor of the Exchequer— I admit the great importance of the subjects to which the hon. baronet's questions refer, and have no objection to answer them. To the first I say, that government sec no reason to depart from the policy laid down in 1826, with respect to the currency, or to that part of it which consists in the circulation of small notes; and it is their fixed determination to adhere to the law as it was then enacted. As to the small circulation of Scotland and Ireland, government are not prepared to take the same course; but to prevent any advantage being taken of the circulation of small notes in Scotland, it is my intention, at an early period, to introduce a measure, for the purpose of hindering the circulation of those 191 small notes within the limits of the other parts of the united kingdom. As to the third question, whether it is the intention of government to alter the law affecting banking, so as to allow Joint Stock companies of more than six partners, within sixty-five miles of London, to issue bills of exchange for less than 50l., payable in London, that is a matter which does not rest with the government alone, but must be the subject of negotiation with the Bank of England.
§ Mr. Curteiswished to call to the recollection of a right hon. gentleman opposite, what he had said some time ago; namely, that it was intended to allow a silver circulation concurrently with the gold one. That would no doubt go a great way to cure the evil of a diminished circulation of small notes. As to the Scotch notes, though there were only forty-five members from that country in that House, and sixteen in the other, they acted in concert, and on all occasions carried their point when any measure was introduced affecting their country. The moment any measure which was considered in any way opposed to the interests of Scotland was brought forward, every man, woman, and child, in that country raised their voices against it, and they were almost always successful. However, as far as the Scotch notes went, he thought they were safe.
§ The petition was then read, and ordered to be printed.