House will do me the justice to believe, during the last ten years, that is, from that in submitting this subject to their in the year 1806 down to the present time, vestigation, I am actuated by no motives I state to have been abcut eleven millions but such as are of a public nature: that I and a half sterling. When I say from am desirous, ambitious, if you please, (no 1806 down to the present time, I beg to blameable ambition, I hope to accomplish, be understood, with reference to this and upon public grounds, an important saving to every other part of the subject, where of the public money. Whatever, then, I may have occasion to use the same exthe feelings of the directors of the pression, as meaning, down to the latest bank may be, on this occasion; whatever period to which any account upon the motives, however erroneous and unfounded, subject has been laid before parliament; may be imputed to me, I shall not shrink and all such accounts come down to a from the task I have undertaken; but, so late period in the last session : what may long as I shall be conscious, as I now am, have happened since that time I know not, of the rectitude of my own intentions; nor would any variation in these accounts, and, above all, so long as I may receive which may since have taken place, either from this House that forbearance and in- alter my view of the subject, or in any dulgence, of which I feel I stand so much manner affect the argument I mean to in need, whenever I presume to address hold upon it. them, I shall persevere; satisfied that I The second branch of the subject, to stand on firm and tenable ground; that which I shall apply myself, will be the the cause I have undertaken is a good commission or charge paid by the public one; and that, under the favour and in to the bank for the management of the dulgence of this House, I cannot fail to public debt, amounting, upon the debt as bring it to a speedy and successful issue. it now stands, including the loan, and Having detained the House, longer other financial operations of the last year, than perhaps I ought to have done, with to an annual sum of about 275,0001., these preliminary observations, I will now to which must be added, a further charge proceed at once to the discussion before paid to the bank of 8001. per million, upon me; and, in doing this, I shall endeavour the whole amount of every loan; and of to confine myself, principally to two 10001. upon every lottery contract; which branches, or heads of the public service, two items of charge, amounted in the last into which the subject seems naturally to year to a sum exceeding 30,0001. and in class and arrange itself; to which the pa- the year preceding, that is, in 1814, to a pers on your table mainly apply; and to sum exceeding 42,0001. which alone I look, as the sources of that There are three other items of charge public economy and retrenchment, which made by the bank against the public, of are the only objects I have in contemplation. comparatively trifling amount, but upon The first these two bra hes hen which I shall wisl to address a few short will refer to the deposits of public monies observations to the House :- the first is a lodged at the bank, acting, in this respect, | sum of 40001. per annum paid to the as the bankers of the public; which monies bank, from the original grant of its char(precisely as is the case with money de- ter, under the denomination of “ an al. posited by individuals with their private lowance to the bank towards its House bankers), are wholly unproductive to the expenses.” The second is a sum of 18981. public, but productive of advantage and per annum, charged for management on profit to the bank to the extent, as I ven four millions of the public debt, purchased ture to contend, as was successfully con- by the bank of the south sea company in tended by a committee of this House 1722, and which now forms a part of the in the year 1807, and immediately after- bank capital lent to the public at three per wards, not only successfully but practi- cent. The last item is a charge paid to the cally, contended by Mr. Perceval in the bank since 1806, as a commission of one arrangements made by him with the bank eighth per cent. or half a crown in the hunin the year 1808 ;. and, as I do not now dred pounds, upon such portion of the proexpect to hear denied, even by the di- perty duty, as persons, assessed for trades, rectors of the bank themselves, productive offices, or professions, voluntarily take to then, I say, to the extent of about five per the bank, and deposit there, on its way cent. per annum upon their whole aggre- into the exchequer. The several items gate amounts ; which aggregate amount, just enumerated, and comprised, under estimated upon an average fairly taken this second branch of the subject, form a the sce, ration injurious to the public interests. | tent, but, if I know any thing of the pracAnd as we are now arrived at the eve of tical functions of the House of Commons, that period when all agreements, having it is our bounden duty, as the constitureference to these transactions will expire tional guardians of the public expenditure, -namely, on the 5th of April next :-if to take care and satisfy ourselves and the Í should be so fortunate as to find the public, that those transactions are conHouse concurring in the view I have pre- ducted in such a manner, and on such sumed to take of this subject, I am confi- terms and principles, as the public are dent they will feel it to be their duty to take entitled to, and bave a right to expect. I care, that these transactions be conducted am also desirous of stating-what, indeed, in future, upon such a footing, as shall be I have stated upon a former occasion just towards the public, without being, in any that, in calling the attention of parliament be measure, unjust towards the bank of Eng. and of the public to this subject, I am in. land. It being the conviction of my mind Auenced by no motives of personal hosand I entreat the House to believe, that I tility towards the directors of the bank, state what I am now about to do, not rashly, —for whom, individually, I feel the res- ebony not vaguely, nor without the most anx- pect that is due to their characters and this ious and repeated consideration, that the stations : the hostility I feel, if such a result of arrangements, founded on these term be applicable to my feelings, is one just principles, must be to secure for the that I do not shrink from the awowal of The public a saving of public money, amount it is hostility to a system, established, pero en ing to hundreds of thousands of pounds haps, not by the gentlemen who at prese could be construed by the most scrupu. | for any thing I know to the contrary, byzee of in lous into a breach of the public faith, their predecessors, --but a system, by coa without committing the slightest degree whomsoever established, or by whomso of injustice on the bank of England ; but ever acted upon, which I oppose, and an still giving to the bank, what I shall al- in hostility to, because, in my conscience ways wish to see it receive, an adequate, I believe it to be a system hostile to thi , ample, liberal compensation and remune- interests of the country. Neither have ration—proportioned, however, always to been so inattentive an observer of whi the nature and value of the service per- has passed within the circle of my ow formed by the bank for such remunera experience during the last thirty year tion; and still leaving that great corpora- nor am I so ignorant of the principl tion what it now is, and what, as a member upon which this great commercial cou of that body myself, it must always be my try rests, as to be either insensible or i interest, as it ever will, on public grounds, different to the many and important be my wish to see it, namely, the most vantages which the public have long wealthy and opulent, the most thriving rived—which we now enjoy—and whi and prosperous, the most profitable bank. I trust, sliall long continue to derive, fi ing institution that now exists, or that this our great national bank: nor ar ever has existed, in this or in any other in any degree, desirous of limiting, part of the commercial world. tailing, or abridging its fair legitimate Before I enter, however, upon this sub- fits; but, convinced as I am, from e ject, I wish to disclaim all intention of consideration I have been able to gi meddling, or interfering, with any of this subject, that, in our transactions those transactions of the bank of England, the bank, particularly of late years which may purely and properly be consi- have contributed towards those profe dered as exclusively their own. With the a most undue and uncalled-for degre private concerns and transactions of the an extent, unwarranted either b bank, I presume, generally speaking, this nature or value of the service perf House can have nothing to do, and, there- by the bank : satisfied, too, that w fore, except under circumstances of a secure to ourselves a continuance of at br 11 very peculiar nature indeed, never will and indeed of all other advantages, be to meddle or interfere. But in all transac- the bank is capable or suscept tions in which the public are directly inte- affording to us, without our beir rested with the bank, in which the public jected to such immense pecuniar cans are to be considered as one of the con- | fices as we have hitherto made tracting parties, and the bank the other, services such, I say, Sir, - not only do I feel that we are co e honest conyiction of my mind + the back 5, 13. 1816. 360 [466 ure, Euch are Leed, 461] between the Public and the Bank of England. Pen. 19, 1816. (462 House will do me the justice to believe, during the last ten years, that is, from that in submitting this subject to their in the year 1806 down to the present time, vestigation, I am actuated by no motives I state to have been about eleven millions but such as are of a public nature: that I and a half sterling. When I say from am desirous, ambitious, if you please, (no 1806 down to the present time, I beg to blameable ambition, I hope ) to accomplish, be understood, with reference to this and con upon public grounds, an important saving to every other part of the subject, where of the public money. Whatever, then, I may have occasion to use the same ex. the feelings of the directors of the pression, as meaning, down to the latest bank may be, on this occasion; whatever period to which any, account upon the motives, however erroneous and anfounded, subject has been laid before parliament: may be imputed to me, I shall not shrink and all such accounts come down to a from the task I have undertaken; but, so late period in the last session : what may the long as I shall be conscious, as I now am, have happened since that time I knew non, of the rectitude of my own intentions; nor would any variation in these accounts, from this House that forbearance and in alter my view of the subject, or in any The second branch of the ratijeet, to , se; and that, under the favour and is to the bank for the watagernent of the bi ng it to a speedy and saccessful issue. it now sands, including, the lost, und am perhaps I oogbt to have done with to an annual sum of atomt 15/11, , peincipally is two 1000 upon ezery loway éstur ; which des, op beats of the public service, two items of charge, menneet in the lace hich the subject seems naturalig is year is a sum escorting 63501, and its op and arrange tself is which the pa the year preceding, that is, in 1814, toi cost on your table mainly apoly: and as sam excessing A2SIOL prire alone I look in die mireas of that There we tree other items of charge economy and retrenchment, which made by the bank against the public, tesnis soject I haze in esatempia on. Somparatively willing misone, but upon les oi duese sos branches then which I shall wish to address a leashon Tests the tensits pnhlic soniss sheriaisas is the forse the fira ** Tat the bank acanz, nu sness, sum of San Jose marim soat so the lanikers si se public which monies and from the original Forma sť za chama e nder the denomination of unit swance is the sake wa its Hong expensez" I'he send ruum of KIE. Je mnum. Sed pose nenacene 12 on milline of the sostie, de orched 19 he saak or the south song in 198 so when 1939 soms 3 At the - Ise at tansachaga sad to the rommierenne row in the run sondes tien the same starily sze, 5 us d, ed De apde to the r de d beunt,” ; and whole, by the to the che sum when in Liminga k in the ts, that it le bank e care that together an annual aggregate charge ex. be fairly stated as fluctuating betwixt ceeding 300,0001. twenty-seven and twenty-eight millions. There is, however, another part of this Here, then, the House will perceive, is subject, another source of immense wealth an increase in the bank.paper circulation and profit to the bank, to which in an in- at present as compared with what it was quiry of this kind, it is impossible that I prior to the passing of the restriction act, should not advert, though I beg to be dis- of no less a sum than sixteen millions, tinctly understood, as not meaning, at yielding of course a corresponding inpresent, to propose, or even to recom- crease in the gross profits of the bank of mend, any participation in those profits 800,000l. per annum! Now, Sir, as I on the part of the public. What I allude have before observed, it is not my intento is, the immense increase in bank profits, tention to propose any participation, on arising out of the increased circulation of behalf of the public, in these enormous their paper, since the year 1797, and in profits, in the present state of things. I consequence of an act which passed the say, in the present state of things; belegislature in that year, commonly known cause, presuming to think as I do, that by the name of the “ Bank Restriction from the moment the restriction act passed, Act;" an act, the title of which was, the public acquired an equitable claim “ An Act for restraining the bank of Eng: upon the bank for a participation in the land from paying its obligations in cash" profits, which that act had created ; and, but which, I confess, it has frequently oc- that if we have hitherto abstained (as I curred to me, would not have been in think we have wisely done) from urging aptly intituled, “ An Act for relieving the that claim, it has been from considerations bank of England from the necessity of of policy and expediency, and not from paying its obligations in cash;"_and as any question as to the rights of the pub: this part of the subject does not neces- lic, with reference to such participation; sarily connect itself with either of the holding this opinion, Sir, I have no diffi. other branches to which I have just re- culty in stating, that if this system, which ferred, and as what I shall have to say has now gone on, without any interrupupon it will be very short, perhaps I shall tion, during the last nineteen years, and best consult the convenience of the House, which has been such an abundant source as well as my own, if I dispose of it at of wealth to the bank exclusively, should once, and in this part of the discussion. become the permanent system of our cur It appears then from papers which are rency; nay, if its duration should be proon your table, that the circulation of tracted, as from something that has lately bank of England paper, estimated upon passed, we have reason to expect, may be an average of years prior to the restriction proposed to us, even for one year beyond act, amounted to a sum fluctuating be the 5th of July next, to which this system twixt eleven and twelve millions. I am by the law. now in force is limited; in indeed aware, that at the period when this such an event, I trust some member of act passed, and for some time previously, this House of more weight and authority the bank circulation was reduced consi- and more competent to the undertaking derably below this average; but as I do not than myself, will come forward, and offer wish to deceive myself or the House, by us a proposition, the object of which will taking an exaggerated view of any part of be, in some way or other, to give to the this subject (for in truth, if I were so dis- public a participation in these profits in posed, or capable of doing it, the case be- future. At present, however, I have nofore me appears to me to require no exag- thing of that kind to propose to you; and geration) I am willing to consider this as I have referred to the subject chiefly for a depression arising out of temporary cir- the purpose of bringing under the notice cumstances, and to take the average cir. of the House the two following facts :culation prior to 1797, at the sum of first, that the bank are now deriving an in, eleven or twelve millions. Now, it appears, crease in their profits, from the circu. from papers which are also before us, that lation of their paper, as compared with this circulation, as might indeed bave been those profits before the restriction act expected, has gone on gradually increas- passed, at the rate of 800,0001. annually; ing ever since ; till it reached, at one pe. and secondly, that they are indebted for riod in the last year (the year ending in these increased profits, in a great measure June. last) the sum of 31,300,0001. and (I will not say altogether, because the inthe average of the whole of that year may creased trade and circulation of the coun. try must have operated in some degree reduction of the national debt; amount upon their profits) to an act of the legis- | ing, according to a paper laid upon the lature. Surely, then, I may contend, that table of this House, in the month of July if we have thus far forborne from claim- last, and for the production of which, as ing our right to a share in those benefits, well as of other valuable documents, from the public had at least to expect, that in which I have derived much information - all its dealings with the bank, the bank upon the whole of this subject, I am inWould have exercised a corresponding for debted to the governor of the bank, who bearance in point of charge; that it would moved for them; amounting then, accordphave acted towards the public, at least ing to this paper, to the sum of 615,0001. upon a system of moderation-aye of The combined amount of these two deliberality and generosity. How far this posits was 3,115,0001., and I have the auhas been the system upon which the bank ihority of the bank of England itself, has conducted itself towards the public, solemnly given in evidence before a comthe House will judge for itself, from what mittee of this House in the year 1807, for I am now about to submit to them: and stating, that these two were the only defirst with reference to the first branch of posits of public money at the bank, that the subject, namely, the balances of pub. were calculated upon when the charter dic monies deposited at the bank, acting was renewed, as all other deposits-(I will as the public bankers. use the very words and language of the In order to submit to the House my bank of England itself on that occasion,) view of this branch of the subject, and to “ As the other public accounts were at render myself intelligible upon it, I feel it that time of trilling amount." i necessary to state, in the first place, that Now, Sir, I am under the necessity of in the year 1800, when the charter of the stating, what, indeed, must be obvious to :, bank of England was removed, Mr. Pitt, every gentleman who has investigated this conducting the negociation on the part of subject, that this evidence of the bank, the public, claimed, as he was entitled to given to the committee in 1807 as the do, from the Bank, a direct participation statement of what passed in the negocia- for the public, in the then existing profits tion with Mr. Pitt in 1800, is directly at - of the bank, arising out of its exclusive variance with, and in contradiction to the privileges of banking as a corporate body; contents of the papers which I now hold and convinced, no doubt, as he must have in my hand, and which the bank has now been, that all deposits of public monies thought proper to produce, having re- must be productive of profit to the bank, ference, precisely, to one, and the same to the extent of 5 per cent. per annum, subject: for it appears from the papers so long as the bank shall be in the prac- now produced, that though the only detice of giving its paper in exchange for posits adverted to when the charter was . securities, bearing 5 per cent. interest, renewed, were the two I have enumerated, Mr. Pitt applied his principle of participa the combined amount of which, as stated tion to the balances of public monies de- by the bank, was about three millions one posited at the bank. hundred thousand pounds ; it now apI have, in the next place, to state, that pears, that one of these two balances dethe only deposits of public money parti- scribed by the bank as amounting to cularly adverted to, or calculated upon, 2,500,000l. exceeded in its amount the in that negociation, were two ;-the one, sum of 3,600,0001., and that the other dearising out of the quarterly issues from posits, stated not to have been noticed bethe. Exchequer to the bank towards the cause they were “ of trifling amount,” payment of the growing dividends, which amounted to a sum of 1,947,0001.; and wwas, stated in an evidence given by the that the combined amount of the whole, a bank to a committee of this House, in the instead of 3,100,0001., as stated by the year 1807, and as I have a right to infer, bank in 1807, exceeded, according to the skso represented to Mr. Pitt in 1800, to statement now made by the bank, the sum have amounted to an average balance of of six millions ! two millions and a half; the other and Sir, I can easily understand, when in only other remaining deposit, calculated the year 1800 Mr. Pitt was claiming a upon, on the renewal of the charter, was direct participation with the bank in the that which arises from the issues of money profits derived from these deposits, that it from the exchequer to the bank, at the must have been an object with the bank. commencement of each quarter, for the nay, that it was their duty, to take care that (VOL. 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