Mr. Duncombe opposed it; but the feeling of the house was strongly in its favour, and it was adopted.
Two bills were this year brought in by Sir Robert Peel, for the regulation of banking in Scotland and Ireland, based on similar principles to that by which he had remodelled the English banking system in the preceding year. In explaining these measures he first touched upon a peculiarity in Irish banking as distinct from Scottish—the existence of the national bank of Ireland. It enjoyed the exclusive privilege of issuing and paying notes, except of large amounts and at longdates, within a circle of sixty-four English miles radius. Its capital was £6,729,000.; and there was a debt due by government of £2,630,000, on which three and a half per cent, interest was paid. There were eight other banks of issue in Ireland—joint-stock banks: those banks had four thousand shareholders, and many thousand more customers; to many of whom it was a serious inconvenience that they could not transact business through the national bank. He proposed, with the willing concurrence of its directors, to withdraw all the exclusive privileges of the national bank, except that he would continue to it the government business, and the present rate of interest on the government debt, as payment for conducting the official business. He would also abolish the oaths in that establishment, distinguishing Roman Catholic office-bearers from Protestants. The bank would also make a weekly return, like that of the Bank of England. In Scotland, as in Ireland, there were no private banks of issue: all were joint-stock banks. There were nineteen banks, to which number they were restricted by the acts of last session. Three had charters; two were incorporated under act of parliament; the rest were not incorporated. It would be better to give them all charters of incorporation; but still he would make that permissive. He would not abolish the power of issuing notes under five pounds in amount either in Scotland or Ireland—he would not run the risk of encountering the opposition which such a proposal would excite; though he did not know that the use of tire small notes could be justified by argument. He would not establish any fixed proportion between the notes under £5, or above; but he would, as in the case of the English banks, restrict the future issues of the banks to the amount of the average issues for a ces tain time past; namely, the period of the 27th of April, 1844, thirteen lunar months. In Ireland it was necessary to take an extended time, because there had been a greater increase on the issues within the last three or four months. He would solve the doubt in Scotland as to the question of law, whether Bank of England notes were a legal tender or not, by making them not a legal tender. There was in this country a security against derangement of the currency, in the general diffusion of gold coin, probably not less than £30,000,000 or £35,000,000, through every part, a security which did not exist in Ireland or Scotland: he would therefore oblige any excess of the issues of the banks, over the amounts now fixed, to be based not on bullion or Bank of England notes, but on bullion alone; gold or silver bullion; making silver under two pounds a legal tender. It would be advantageous to encourage an increase of silver, especially in Ireland. The banks would, in future, be obliged to make weekly returns of the notes in circulation: but in Scotland, returns of the circulation each day would be fallacious, on account of exchanges with other banks; and therefore he would continue the present system of making a return of the last day in each week; the average would be struck on the returns for four weeks, and the circulation, or any excess, calculated on that average. Several statistical particulars, such as the amount of gold in each bank, or distinction between the £5 and the lower notes, the description of issues, &c., would be required; but the information thus exacted by government would be in confidence: the monthly returns published by the stamp-office resembling those now made in England. The average circulation of the Scotch banks in the thirteen months since the 27th of April was £3,041,000; but there was in the November of each year an excess in the issues of about £500,000, which would of course have to be based on bullion. The average circulation in Ireland would in future be, of the national bank, £3,706,000; of the other banks, £2,565,000; in all. £6,271,000. As there was in Scotland no national bank to supply any deficiency caused in the circulation by the failure of any joint-stock bank, he would give permission for any bank to dispose of its circulation to another bank; the aggregate of the two amounts to be taken as the joint circulation. To avoid any inconvenience or precipitancy, the plan would not come into operation until the 1st of January, 1846. Sir Robert Peel concluded by expressing his belief that this plan would add to the stability of the circulation in the United Kingdom, and would be an equitable way of making Ireland and Scotland bear their share of the burden of providing a guarantee against commercial panic. These bills passed through both houses without much discussion, and became law.
During this session a measure was passed by government for facilitating the enclosure of commons in England and Wales, by appointing a board of commissioners with extensive powers, and removing the necessity of obtaining private acts of parliament for the enclosing of lands.
The business of the session was closed by Lord John Russell’s taking the opportunity for a formal motion for papers, to enter into a critical review of the results of the session, and the general policy of the administration.
PROROGATION OF PARLIAMENT.
Parliament was prorogued by the queen in person on the 9th of August. After the speaker had addressed her majesty on the measures of the session, and some bills had received the royal assent, her majesty read the royal speech.
THE AFFAIRS OF INDIA.
In the early part of this year the important subject of railroads in India was taken into serious consideration. Various companies were formed in England, for the purpose, if possible, of carrying out schemes of railway communication in that country. In order that full preliminary information might be obtained before any project was sanctioned, the court of directors sent a despatch to the governor-general, directing him to take the subject into his best consideration, as one in which the interests of India were deeply concerned.