DEBATES ON THE CURRENCY.
In order to relieve the agricultural distress, Mr. Western brought forward a motion on the subject of the currency. He moved for a committee to inquire into the effect which the act of 1819, for the resumption of cash-payments by the Bank, had produced on our manufacturing and commercial interests. In his speech he assigned the alteration of the currency as the chief cause of the calamity, since it operated injuriously on all classes except the fundholder and annuitant, and by its ruinous effects on private contracts, as well as public payments, was calculated to endanger all kinds of property. Mr. Huskisson combated his views at considerable length; and moved as an amendment, “that this house will not in any way alter the standard of gold and silver.” The house then adjourned; and on the following day the debate was resumed. After many members had spoken on both sides of the question, Mr. Peel rose, and said, that “he would not enter on the discussion of abstract subjects. From the reasonings of gentlemen, down to the speech of the honourable member for Westminster, he was at a loss to guess the objects of the committee. The honourable baronet fairly stated that the real object of the motion was to repeal the bill of 1819; he had declared that the aim of the honourable gentleman, Mr. Western, was to establish a new standard of value, and to reduce the value of one pound to fourteen shillings. The house, he hoped, would pause before they adopted a proposition for reducing the value of the currency by one-third. An honourable gentleman had talked of establishing and securing the foundations of public prosperity; but what would be the consequence to-morrow if that night they adopted the proposition of the honourable gentleman? Every man of common sense would buy up every guinea in the country; the whole of our mercantile transactions would be disturbed, and all private contracts be open to inquiry and to defeat. Seven or eight years had already elapsed since the house had pledged itself to return to the ancient standard of value. In 1814 the house came to a resolution that the Bank of England ought to return to cash-payments; in 1816, when his right honourable friend proposed a resolution on the subject, the Late Mr. Horner would not consent until an express declaration was made, that the legislative would see that cash-payments should soon be resumed; and his proposition was accordingly adopted. But the restriction was continued to enable the Bank to resume cash-payments with greater convenience; so that since 1814 the country was accommodating itself to this new state of things; and after having accomplished that object, the house was told that the intent of the honourable gentleman’s motion was to reduce the value of money from twenty to fourteen shillings. With respect to the situation of the public creditor, he has been paid in a depreciated currency. The public creditor lent his money in 1798 and 1800 on the understanding that, when the Bank restriction should expire, he would be entitled to his demand in the ancient standard of value. If the house, therefore, were to come to any adjustment of the value proposed by the honourable gentleman, undoubtedly the creditor would have a right, and would demand the full payment of his debt. It should be recollected that a great number of persons held debentures who were not the original purchasers, but had bought them for a full and valuable consideration; could the government turn round upon these persons, and say, The original holder gave for this debenture only eighty pounds, you gave ninety-five pounds, but we will not pay you more than eighty pounds? If the house were to proceed upon this principle there would be an end for ever to the very idea of national faith—that faith which had supported us under every difficulty, and which constituted the pride, the glory, and the support of this country.” These arguments prevailed; parliament determined not to interfere with the currency. On a subsequent day, however, as the distress among the agriculturists grew to an alarming height, ministers repealed that part of the bill of 1819 which confined the issue of small notes to the period of 1823; the privilege was extended till January, 1833. This measure had the effect of causing symptoms of returning prosperity. Country bankers increased their paper issues; farmers obtained a higher price for their produce; landlords were paid a higher rate for their land; and the natural consequence of all this was the prosperity of trade and commerce. At the same time it proved to be an illusive prosperity.