"If they are of opinion to name a Committee that shall be authorised in a special manner to defend the rights and interests of the States, and of the public:—to do their utmost by every conciliatory measure in their power, and above all, to agree to an arrangement that shall screen the States from all interruption in the circulation of their Notes, which have been issued for the benefit and advantage of the public, with the design of gradually diminishing the number annually. And in the event of such an arrangement not taking place, to adopt every measure, and make every necessary sacrifice for supporting the circulation of the States Notes. And finally, should the case require it, to propose to the States the adoption of those ulterior measures deemed requisite by the Committee, for the general interests of the island."
The meeting ended with a fine fighting speech from the Bailiff. He reiterated the principle of the States being the sovereign power in issuing currency, claimed that the Cour Royale had the right of stopping the private issue of notes, and pointed to the example of England, where only £5 notes were permitted in the country, and these under a heavy tax, while only the Bank of England might issue notes in and around London. He showed that it was a choice between notes issued for the benefit of individuals and notes issued for the public good. He defended the improvements carried out by the States, and once again declared that they had been advantageous in giving employment to the poor, security to the rich and encouragement to commerce.
CHAPTER VIII
THE END
One can imagine the enthusiasm and the satisfaction with which the majority returned home. One anticipates a triumphant report in the Bailiff's best vein; and expects that the banks will in future have to confine themselves to the operations permitted to English banks, while the States restore equilibrium by causing the withdrawal of superfluous notes and confining future issues, once again entirely in their own hands, to quantities proportioned to the needs of the island.
With surprise, the subsequent proceedings are found to be on quite different lines. Truth is stranger than fiction. The prosaic facts are as follows:—
The Bailiff in presenting his Billet d'Etat to the States Meeting, 29th March, 1837, reported on the arrangement made by the Committee with the two Banks. He brought forward no proposition on the matter on which the States should deliberate. He simply states that:—
"After some preliminary conferences the Committee received the following letter:—