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HOUSE OF LORDS.
Thursday, March 16.

USURY LAWS.] The Marquis of Lansdown said, he held in his hand a petition from the same body in Manchester from which, a few days before he presented a petition in favour of the bill, for putting an end to the circulation of small notes. The petitioners thought the subject was materially connected with that bill; and he could not but think that it had, if not directly, at least indirectly, a connection with it, as it related to the subject of commercial distress. The object of this petition was, to call their lordships'jattention to the Usury Laws. Those laws had certainly greatly aggravated the distress which prevailed among the mercantile classes. Few of their lordships could be aware of the great loss of capital and loss of interest, which had taken place, within the last six months, in consequence of that unfortunate attempt of the law of England to fix the value of capital,-to make that fixed which was in its nature unfixed and variable. This constituted a state of things which had been the ruin of many individuals; but he spoke not now so much with reference to the effect of the law on the landed interest as to its operations on commerce. Such was the state of the law, that if persons found it necessary to borrow money they could not do so on terms above the fixed rate. What was this but saying that they might borrow money when they had no occasion do so; but that when their exigencies required them to borrow, the law should step in and shut them out from that resource? Thus, in times of great pressure, the law compelled persons in difficulty to resort to the most ruinous terms. This was as inconsistent as it would be to say to a person insuring his life, that no insurance should be effected for less than ten years' purchase. The principle was the same as telling such a person, that when he was in good health he might effect his purpose, but that at a moment of sickness or in advanced age, when insurance became the more necessary for the sake of his wife and children, he should then be deprived of the opportunity of taking such a step. He defied any noble lord to show that there was the least difference in principle between a law which would prohibit the insurance of life at such value as might be put upon it, and one which prevented a man from

placing what value he pleased upon his capital. The profit on capital must, like every thing else, depend on the relation between the supply and demand; and if sound principles of commerce were followed, the interest of money would always readily adjust itself to the state of trade. To try to fix it by law, to impose a maximum, was as vain an attempt as to fix the mercury in the barometer. The most advantageous course for individuals, and the best policy for government, was to allow the value of capital to adjust itself to the wants of commerce. On this subject he concurred with the sentiments expressed in the petition, which was from the Chamber of Commerce of Manchester.

The Earl of Liverpool said, he had had an opportunity of learning the sentiments of the petitioners, at a meeting which took place some time ago, when certain persons belonging to the same body as the petitioners, applied to government to learn whether it could not afford relief to the existing commercial distress. Those persons assured him that they should not have made, nor would they have had pretence for making, application to government for relief, had it not been for the circumstances in which they were placed by the Usury Laws. Now he was aware that obstacles stood in the way of abrogating those laws altogether, in consequence of their bearing on particular interests; but, notwithstanding this, he was of opinion, that at no distant day their lordships must give their best consideration to the state of those laws. The question was one of much difficulty, but the present state of the law could be defended on no sound principle.

HOUSE OF COMMONS.

Thursday, March 16.

EAST INDIA COMPANY.-APPOINTMENT OF WRITERS.] Mr. Wynn rose to bring forward his motion, respecting the appointment of writers in the service of the East India Company. By the act 53 Geo. 3rd, c. 155, no person could be appointed a writer, who had not passed four terms at the East India college. Since the establishment of that college, from the extension of the company's territories, the necessity of appointing an additional number of Zillah officers in Bengal, and other causes, there had been a deficiency of qualified persons. It was found also,

that there was a disposition on the part of qualified persons to conceal their qualifications, in order to prevent their being sent a hundred miles into the interior. Hence there was an arrear of not less than 75 writers, and it was calculated that 50 would be required this season. The present establishment of the college did not admit of supplying this number. His object, therefore, was, to suspend the operation of the clause in the statute referred to, in order that persons might be selected who had not passed their four terms, but who were duly qualified. This measure was not intended to imply a distrust of the system pursued at the college. He believed that system had fully answered its purpose. If the question related to the new constitution of the college, he should decidedly prefer its being assimilated to our existing universities; as he conceived it was much less advantageous to persons to be educated in classes, than to be mixed together. At the same time, he considered it highly creditable to the establishment that in the short space of two years the students acquired so much. The other point embraced by the bill he was about to move for, respected the payment of allowances, on account of officers dying when absent from India. The act of 53 Geo. 3rd. provided that certain allowances should be paid to officers, while absent from India, on account of ill health, for a period not exceeding three years; but beyond that time no allowance was granted. This was a considerable hardship on those officers whose state of health rendered it impossible for them to return to India within the prescribed period. They ought to be allowed to draw some allowance, if necessary for their support, beyond that specified period: otherwise, the chance was, that they would get into difficulties, and the time given them for the recovery of their health would be absolutely lost. By going back to India within three years, those individuals would be entitled to claim a certain allowance, under the act of parliament. Many officers had done so, in consequence of the state of the law, before their health was completely established, and the consequence was, that they had fallen victims to disease. The object of the bill, in this respect, would be to give to officers going to the Cape of Good Hope or to Ceylon on account of ill health, the same allowances as if they were in India, and also to provide for the

payment of allowances on account of offcers dying while absent from India on account of ill health. The right hon. gentleman concluded by moving, "That leave be given to bring in a bill to suspend such part of the act of the 53 of Geo. 3rd. c. 155, as relates to the appointment of Writers, and to remove doubts as to the payment of allowances of officers dying while absent from India."

Mr. Hume said, that what had been stated by the right hon. gentleman cast, in his opinion, a strong reflection on the East-India company's institution at Haileybury. He thought that the whole of the system on which that institution was founded was exceedingly injurious. The young men were shut out from all society, and had no opportunity of acquiring the least knowledge of the world. Such a system was calculated to destroy the native character of Englishmen. The speech which lord Grenville delivered in another place, against the formation of this college, did him the greatest honour. The arguments adduced by that noble lord were conclusive against the system; and experience had amply proved, that the noble lord's view of the subject was correct. He clearly showed what would be the result of such a system. Year after year disturbances had taken place in that college, and the young men acquired any thing but that high tone of honour, principle, and public spirit, which they ought to imbibe, to fit them for the high situations which they were destined to fill. He had often deplored the situation in which India was placed, in consequence of the formation of such an establishment. Young men were sent out to act in the most important capacities, without any general knowledge of the world. Individuals were cooped up in that secluded monastery, as he might call it, where they could acquire no knowledge of active life. Young men of twenty-two years of age, were raised to the rank of judges in the Zilla courts; many of which had jurisdiction over a space larger than Yorkshire. For five successive years, attempts had been made, in the court of proprietors, to alter the system which prevailed as to the education of writers; but every attempt had failed. He was glad therefore that government had at last taken up the subject. He hoped, however, that the right hon. gentleman would select some proper mode of examination for persons going out to India. He wished persons

educated in the college, as well as those educated out of it, to be subjected to the same test. He was surprised that some measure of this nature had not been before resorted to. But, the fact was, that the court of directors had no will of their own. They were obliged to obey the right hon. gentleman (Mr. Wynn), or any other right hon. gentleman who might fill his situation. Every public servant sent out to India ought to be qualified to perform the duties attached to his situation. The business of the college was better conducted now than formerly; still, he must express his decided conviction, that it never would answer the purpose for which it was originally intended. It was only so much brick and mortar, and the expense incurred by keeping the establishment up ought to be done

away.

Captain Bradshaw, adverting to the practice in India relative to Cadets, said that it was usual to make regular reports of their advancement in a knowledge of the language; and adverted particularly to the case of one individual, who was so inattentive to the study of the Hindostanee, that he (captain B.) was directed to inform him, in the presence of the other young men, that the commander-in-chief would not appoint him, if he did not make himself master of the language. The consequence was, that the next day he sent for a Moonshee, began to study, and in a short time was as perfect in the language as any of his fellow cadets.

Sir T. Baring said, that a cadet could obtain a more perfect knowledge of the native language by a six months' residence in India, than he could by two years' study in this country. He thought upon the whole, that if individuals were allowed to receive their education at such places as their parents or friends thought best, the company would have the best guarantee that their servants would be educated and effective men. He hoped, therefore, that the right hon. gentleman would make his alteration permanent.

Mr. C. Grant trusted that his right hon. friend would only make this a temporary measure. The whole of the complaints made against Haileybury College rested on vague report. That institution had been opposed by those who obstinately adhered to the former system, merely on account of its having long prevailed, and who were adverse to any imVOL. XIV.

provement, which they regarded as a dangerous innovation; and likewise by a certain class of the company's servants in India, who conceived that it would militate to their prejudice. It had also opponents in the court of directors, and of proprietors. Much had been asserted about the irregularities which had occurred in that establishment. On this point he would only say, that those irregularities were not greater in number or degree than were to be met with in other seminaries of the same magnitude. He would not enter into the number of minor complaints which had been alleged against this establishment; but he would contend, that since it was founded there had been a marked improvement in the conduct and character of the company's servants in India. Instead of dealing in vague assertion, he would quote the sentiments which men of very great talent had expressed as to the usefulness of this institution. In 1810, lord Minto spoke highly of its usefulness; a few years after, colonel Roebuck gave testimony of a similar character; the marquis of Hastings had expressed his approbation of the College in the most unqualified terms. And this night, his right hon. friend had stated, that every communication which he received from India more strongly convinced him of its usefulness. Some gentlemen were of opinion, that it would be sufficient for every purpose, if individuals going out to India were obliged to submit to some common test. There appeared, at first sight, something very plausible in this; but this test could apply to nothing but literature. It could have no reference to scholastic discipline, to moral character, or to propriety of conduct. Besides, gentlemen must feel how easy it was to procure a certificate of proficiency, under such a test as had been alluded to. Therefore, leaving out of the question the habits of moral discipline which the present system produced, even in a literary point of view, the mode of education, which was advocated by the opponents of Haileybury College, would be extremely defective. When individuals spoke of the proficiency which a young man ought to obtain before he proceeded to India, he took it that they adverted to the lowest degree of proficiency-to that which might be fixed as a minimum. Now, it was quite evident to him, that that minimum would be both the minimum and the maximum. There would be no inducement to make a young man ac4 T

quire any knowledge beyond that which was necessary to carry him through his examination. Where there was competition, as was the case at present, the result was very different. Now, he begged to ask, what was to be done with the patronage of the East India company, if the existing system were abandoned? Was it meant to throw open the writer-ships to all the young men of the country? Were they to be made the reward of successful competition? If so, the question must be argued on other grounds. At present, those appointments were made by the directors of the East India company, and were granted at their will. Every appointment was viewed, not as a matter that was to be contended for, but as a vested interest which some individual had already obtained through his connexion. So far from its being looked upon as a thing that might be contended for, many cases could be adduced, where, even when some delinquency was proved, it had been considered a great hardship to deprive the student of that which had been promised to him. This was a very nice point to deal with. The present system, he conceived, was well calculated for sending out efficient servants to India; but, if a better could be devised, be the expense of time or money what it might, he certainly would support it.

Dr. Phillimore believed that Haileybury college had fully completed its functions by furnishing India with a supply of welleducated young men for the civil and military services. At the time of establishing the college, there was a great deficiency of the proper means of education. Never did any functionaries acquire more honour and credit than the young men sent out from the college.

Mr. Trant said, he did not think so highly of the education in this college. His experience of the effects of it in India led him to prefer the education at the Universities.

Leave was given to bring in the bill.

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than it was at the present moment, he should think it unnecessary to trouble it at any length on the present occasion. He confessed that the more he applied himself to the consideration of the subject, the more he had become persuaded that there was no substantial ground on which it could be maintained, that the other parts of the United Kingdom ought to be put on a different footing from England, if it were right to adopt this system at all.

But he was ready, notwithstanding, to admit, that there might be, with respect to Ireland, and particularly Scotland, circumstances of difference which it was requisite the House should take into consideration before they proceeded to any legislative enactment. He certainly felt that, in matters of this kind, in which the feelings of any large portion of the community were so strongly entertained, and so decidedly expressed, as the opinions and feelings of Scotland had been with respect to this measure, it was but conformable to the course the House was in the habit of following, to give a fair and reasonable opportunity to those who thought their interests likely to be affected, of proving the injurious manner in which they conceived they would be affected by the proposed extension of the measure, and, on the other hand, to enable those who held an opposite opinion to prove that there was, in fact, no ground for apprehension or complaint. It appeared to him, therefore, that the most prudent and effectual mode of attaining the object of all parties would be to allow a full, free, and unreserved consideration to be given to the subject before a select committee. It certainly did so happen, that in former committees which had sat on the subject of the currency, although they had gone fully into the general question, as between Bank paper and gold, this particular point, the small currency, was not debated, and certainly, as it affected Scotland, the question was not at all adverted to in the report of the committee of 1819; and that branch of the subject had undoubtedly not undergone that sort of investigation which the importance of it justly entitled it to. With regard to himself and those who agreed with him in the general opinion he had ventured to pronounce on this subject, he would say it was not fair to charge them, either as respected Ireland or Scotland, with taking up the consideration of this question improperly. In discussing the subject hitherto, it had been over

looked, that the very first measure of restriction upon a small-note currency had been framed with exclusive reference to Scotland; for, in the year 1765, an act passed, declaring that the circulation of small notes in Scotland, under the value of twenty shillings, was incompatible with the prosperity of the country. The measure now in contemplation had only for its object, an extension of that principle. It could not, therefore, be maintained, that a measure which promised benefit to the United Kingdom, and the principle of which was admitted by Scotland on a former occasion, without a murmur, could now be injurious to that country, and ought to be resisted. With respect to Ireland, he should only say, that it did not appear to him that there existed there so strong an objection to the measure. Indeed with reference to that country, the question was different; for it oddly enough happened, that the only time at which the Irish parliament had thought proper to prohibit a small-note currency, was in 1799, after the Bank of England had been restrained from cash payments. In 1804, an act of the imperial parliament restored to the bankers the power to issue small notes. He was at a loss, therefore, to conceive on what ground the measure could be objected to. However, as there seemed to be a general impression, that the subject should be thoroughly investigated; as he was confident that the more it was investigated the more it would be approved; and as it was obvious that we should arrive at a more satisfactory conclusion, by a mode which would prevent discussion, and consequently avoid exciting angry passions, which, on every account, it was most desirable should not be called into action, he would move "That a select committee be appointed, to inquire into the state of the circulation in promissory notes under the value of 51. in Scotland and Ireland, and to report their observations and opinion thereupon to the House, with reference to the expediency of making any alteration in the laws now in force relating thereto."

Mr. Hudson Gurney said, though he felt that it was the desire of the House not to enter into any general discussion of the subject at that time, yet he could not sit there and hear the proposal for a committee made, without expressing his opinion of the great inconvenience which the appointment of these committees must always produce, from the general

uneasiness and unsettlement of men's minds, which they invariably occasioned. The bullion committee of 1810, and the committee of 1819, were of this most pregnant instances; and he most sincerely wished that, without any committee at all, his majesty's ministers had come to the determination of leaving Scotland in quiet, till they had ascertained how their new system had operated in England. It was quite evident, that if gold were to be supplied to take the place of paper, every extension of surface was increase of difficulty, and increase of the pressure on England, from whence the gold must be drawn, as well as on Scotland. In the present situation of Ireland, there could certainly be no wisdom in adding to embarrassment there; and he could conceive no reason whatever for enforcing simultaneously this uniformity of system, whether ultimately desirable or not. It ought to be remembered, that Scotland had gone on, for more than a century, under its present banking system, whilst England had a specie circulation; and no inconvenience had ever been known to arise to either country from that diversity of custom. Something of the same nature had taken place here. The mere introduction of a golden circulation into the districts surrounding the metropolis had occasioned so great a pressure, that the small notes had been continued to the country; and from this difference of circulation, he had never heard that any practical inconvenience had arisen. fact, the Scotch system of paper credits, dangerous in itself, in his opinion in the extreme, and of paper currency to meet them, had so interwoven itself with every transaction between man and man, in that country, that he must repeat, in his view, it was, at the present moment, of the greatest possible imprudence to agitate the question, before the experi ment had been fairly brought to issue in this country, in the first instance.

In

Mr. Keith Douglas said, that parliament ought to show some deference for the petitions which were coming up from all parts of Scotland, in opposition to the proposed alteration of their currency. During the whole period of the Scotch banking system nothing had occurred to warrant the proposed interference in their concerns. The state of things which had arisen in England, and called for a change, sprung from the late panic, occasioned in part by the insolvency

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