HL Deb 21 March 1815 vol 30 cc306-9

The order of the day for the third reading of the Bank Restriction Bill being read,

The Earl of Liverpool rose

and said, that he could anticipate no objection to the third reading of this Bill, because, however they might have differed formerly on the subject, no one would contend that the present was the proper period for resuming cash payments. Considering all the circumstances that had taken place previous to the termination of hostilities, the consequences of which were still heavily felt, this must be considered as of all others the least favourable moment for putting an end to the restriction. The Bill was made to expire on the 5th of July, 1816, and this period had been fixed upon with two views; first, that the Legislature might have the subject under consideration in the course of the next session; and second, because some hopes were entertained that by the time mentioned the Bank might be enabled to resume cash payments. These hopes were founded on the favourable alteration which had taken place in the course of exchange, which justified the expectation that unless any very particular circumstances occurred to prevent it, the exchange with the Continent would be generally above par. The price of gold had fallen very considerably indeed in the course of one year, being in January, 1814, at 5l. 10s.; and in February, 1815, at 4l. 10s. or thereabouts. It ought to be considered that this country had for a series of years past made foreign payments to a great amount, and increasing till the last year—in 1812, 18 millions; in 1813, 23 millions; and in 1814, 30 millions. The troops in America could not be brought home before the end of the summer, or the beginning of autumn; large debts and arrears were still due, and payments making; and considering all these circumstances, the favourable change which had taken place far exceeded the most sanguine expectations even of those who had thought with him on the subject. It was, however, highly desirable and necessary, that cash payments should be resumed, and things restored to their original course, as soon as it possibly could be done with advantage to the Bank and consistently with the public service. He concluded by moving the third reading of the Bill.

Lord Grenville

did not mean to object to the third reading of the Bill, but on the contrary admitted that cash payments could not be immediately resumed. The declaration of the noble earl, that it was necessary for the restoration of proper confidence and security that cash payments should be as soon as possible resumed, gave him a great deal of pleasure; but, if the public service required it, the resumption might well take place before it became advantageous to the Bank. It ought to be remembered, that the Company had made immense gains by the restriction while it lasted, and they could now afford to put themselves to a little inconvenience for the public advantage. He thought, however, it would have been better if this Bill had contained some provisions for taking proper steps towards a resumption of cash payments. Whether cash payments should or should not be resumed at the period mentioned, the noble earl ought, early next session, to propose a parliamentary inquiry into all the circumstances of the case. He could, he believed, perfectly well account for the alteration in the course of exchange and the price of gold, in consistency with the theory which he and others had held on the subject; but it was fitting that the matter should be examined into, and thoroughly investigated; and he therefore hoped, that early in the next session, such an inquiry would be proposed; and this would at all events be proper, though from recent events, his confidence in the reviving state of our affairs, as connected with this subject, was very much shaken.

The Earl of Lauderdale

had no objection to the passing of the Bill under present circumstances, provided he could obtain from the noble lords on the other side, a pledge that an inquiry should be instituted, early in the next session, relative to this important subject, in order that full information might be obtained, with the view of satisfying the public mind. It was essential that such an inquiry should be instituted, in order that all the facts bearing upon the question might be accurately and distinctly ascertained. As to the fall in the price of gold, alluded to by the noble earl, it did not in the least affect the theory supported by himself and his noble friends. By an ordonnance of the Russian government, a forced circulation was given to the Russian paper money, under which four rubles in paper were to pass for one ruble in gold. This, from the nature of circumstances at the time, had a very extensive operation, and gold naturally flocked to this country, where the pressure upon it was less. This would account at once for the fall in the price of gold bullion. His object was, that the matter should be inquired into, and the minds of the people set at rest, not only as to the resumption of payments by the Bank, but also as to the probability that such cash payments would be continued. He hoped, therefore, that the noble earl would next session propose an inquiry into all the circumstances.

The Earl of Liverpool

, in explanation, observed, that when he spoke of the benefit accruing to the Bank, he identified it in that view with the country at large. He admitted that some sacrificed were to be fairly and reasonably expected on the part of that body to the general interest. If found necessary, the subject might be taken up at a sufficiently early period of the nest session; but he did not see the necessity of giving a distinct or positive pledge of going into a general inquiry upon the subject, before a resumption of cash payments took place. Such an inquiry as seemed to be contemplated, could, he thought, be productive of no convenience to the country, but might, on the contrary, induce much inconvenience; but as far as respected the measure to which the Bill referred, the subject of it should, if necessary, and if he continued to fill the situation he then had the honour to hold, be brought under the consideration of Parliament at a sufficiently early period next session, for the purpose of determining what line of conduct would be the most proper to pursue.

The Marquis of Lansdowne,

though he did not oppose the measure then before the House, contended for the propriety of having some extensive and deliberate parliamentary inquiry into the general subject, before the Legislature finally decided as to the resumption of cash payments on the part of the Bank. He disapproved of temporary measures on the subject, was adverse to such Bills as the present being from time to time introduced, and cordially concurred with his noble friends in deeming a general inquiry into the subject to be highly expedient.

The Bill was then read a third time and passed.