Lords Sitting of 6 April 1819

CASH PAYMENTS BILL.
Mr. Peelbrought from the Commons the bill for restraining the Bank from paying in specie the notes under 5l. issued previously to the 1st of January 1817. The bill being read a first time,
The Earl of Harrowbyrose to move that the standing order relative to the progress of bills be suspended, in order that the present measure might pass through its remaining stages forthwith. The noble lord described the nature of the payments which it was the object of the present bill to suspend; and argued that the stopping the partial payments the Bank was now engaged to make, would have the effect of accelerating the general resumption of payments in specie. During the period in which the Bank had been in the practice of making partial payments, between 5,000,000 l. and 6,000,000 l. had been drawn from its coffers; and it was obvious that if this drain were allowed to continue, it would tend to retard the desirable object their lordships had in view. He wished it, however, to be distinctly understood, that the present measure was not called for by the committee, with any reference to, the convenience of the Bank. The suspension in 1797 had been referred to; but the case was quite different. The Bank was then bound to pay all their notes in specie, and there might have been, from the circumstances of the country, such a drain as would have rendered the immediate fulfilment of that engagement impossible. The present measure related only to a particular description of notes, and those who re-commended it knew that the Bank was in possession of treasure far beyond the amount of the notes they had promised to pay.
Earl Greysaid, that the impression he had received on the first suggestion of the present measure remained unaltered. He could regard it in no other light than that of a renunciation of the principles of finance hitherto acted upon by the present government, and, a complete condemnation of all the steps professedly taken by his majesty's ministers and the Bank, for the

1421
purpose of accelerating the resumption of cash payments. He felt it to be his duty to state his opinion of the measure, and to enter his protest against it.
The Earl of Liverpoolsaid, he would pledge himself, when the discussion of the general measure should take place, to demonstrate that this bill contained nothing in any degree at variance with the principles hitherto acted upon by his majesty's ministers with respect to financial measures and the Bank. The noble earl had yesterday expressed a doubt as to the opinion which he (lord Liverpool) had attributed to an individual with respect to the transaction which took place in 1797. He was, however, upon reflection, still more convinced, that what he had stated to be the opinion of that individual was correct. There appeared to him no room to doubt that in the discussion which took place on the measure adopted in 1797, Mr. Fox expressed it to be his opinion, that the course which ought to have been pursued was a direct application to the House of Commons. His recollection was besides farther confirmed by the statement of Mr. Fox's opinion in these historical sources of information of what passed in parliament, which had on former occasions been alluded to, and which, whatever might be the imperfections to which they were liable, might surely be relied on for a fact of this kind.
Earl Greysaid, he had merely stated his impression as to what had passed in 1797. With regard to the historical sources of information to which the noble lord had referred, if he had stated them to be imperfect he could only mean that they were subject to those unavoidable inaccuracies, to which the disadvantageous circumstances under which they were obtained gave rise. He had considered the arguments of Mr. Fox to be directed altogether against the principle of the measure; and he must say, with all the respect he entertained for the memory of that great man, that he still considered an order of council preferable to a direct application to parliament.
The Marquis of Lansdownesaid, that before consenting to the present measure, he had been particularly solicitous to establish, first, the disposition on the part of the members of the committee to revert to the ancient and approved standard of value, and secondly, the means possessed by the Bank of recurring to that standard
[1422
of value. Being satisfied upon these two points, it followed that this bill became absolutely necessary to the attainment of the object in view, as without it the fulfilment of that object must be retarded.
The standing orders were then suspended, the bill was read a second time, and the commitment having been negatived, it was read a third time and passed.