House Of Commons.

remained in its present shape , it would be impossible to placeany limitation to the issue of notes . Gentlemen had already seen lhe progress of the paper currency , both in America and France ; it had soon been depreciated , and lhe expences of both countries had thereby been considerably increased . The bill was of the utmost importance ; if a paper currency was once established , how could it be got " rid of ? If gold and silver were once driven out of circulation , how were they to be recovered ? The sure consequences of a paper currency would be a debt so enormous , that it would never be removed . The old debts and the new would

vanish together , and the funded property would sink with them . A revolution in Property might produce a revolution in Government , and all those scenes of blood which had disgraced France . The House then resolved itself into a Committee upon the Bill . Upon reading the clause for indemnifying the Bank for complying with the Order of Council , Mr . Dent delivered his opinion respecting the scarcity of specie . He attributed that scarcity to several causes . Firstto the loans furnished to the Emperor .

, Secondly , to the alarms of an invasion , which had induced persons to convert their property into specie . Thirdly , to the- melting of guineas to send abroad , on account of the high price which gold bore upon the continent . . Fourthly , to the immense speculations carried on in this country of late , on account of the extended views of commerce .

Mr . Fox objected to the indemnify clause . In the first place , for the Bank to obey the order , was prima facie , culpable . In the second place , it was a circumstance deeply to be lamented , that so close a connection subsisted between the Bank and the Government . Nothing could be more unfortunate , nothing more disastrous . He would ask those who knew . the principles upon which credit rested , and how easily it was blasted by the touch of power , how it could exist if Ministers were to be the persons to conduct the affairs of the Bank ? It was on ( his account , and on these grounds , that lie deplored the connection between the

Government and Bank . Feeling , therefore , lhat there were no grounds for the indemnity proposed , and seeing the danger that must arise from giving a sanction to the principle , that the Bank ought to listen to the Minister in private concerns , he should give his negative to the clause that had been read from the Chair . Mr . Pitt stated , that the object of the clause was to continue and confirm the Minute of Council , and as a consequence of confirming it , it was thought just that the Bank having been enjoined to pay obedience to an order , which , in lhe first instance , was not legal ; il was fit that the Legislature should bear those harmless

from whom Government had required ohedience . With respect to the Order itself , the necessity of continuing it had been distinctly stated by the Secret Committee , and by the Right Honourable Gentleman . He was most decidedly of opinion , that the utmost liberality , on the part of the IBank , would be a most adviseable measure , on every ground ; that it would be most likely to diminish the present difficulties , to abridge the duration of them , and to enable the Bank to resume their former transactions . But this was only a recommendation , not an . injunction ; it was a recommendation of an opinion to the Bank , and the Bank

acted in the independent exercise of their discretion , as to what they thought best for the interests of the public , under all the circumstances of the rase . Sir Francis Baring conceived the situation of this country , at the present moment , extremely critical . He thought the consequence of the measure would be , that all bills drawn abroad would be for gold and silver , in preference to bank notes . There was another objection he had , namely , that this clause would make a distinction between the Bank and individuals , which it was not improbable would be the means of bringing Bank paper to a discountas the merchants would

, find a difficulty in obtaining money to pay their foreign bills . Mr . Manning said the Bank came to a determination to extend their discounts , from a conviction of theu . own , of the propriety and necessity of it . Mr S . Thornton stated , that the Bank had acted merely of their own authority , according to the best of their judgment , without being influenced by any person whatever ,