GENERAL HISTORY. 



[65 



The motion was agreed to. 



On April 9th the House of 

 Commons having, on the motion 

 of the Chancellor of the Exche- 

 quer, resolved itself into a com- 

 mittee on two acts, namely, the 

 Bank Restriction act, and the 

 act for the regulation of Private 

 Banl Notes, the Chancellor of the 

 Exchequer submitted to the com- 

 mittee the propositions of which 

 he had given notice. 



In order to render what he had 

 to say as intelligible as possible, 

 he desired the committee to re- 

 vert to the state of things under 

 which the Restriction act had 

 been originally passed, and at 

 various periods had been renewed; 

 which, at the last renewal of that 

 act for two years in 18 1 6, took place 

 with the understanding that the 

 Bank should employ that interval 

 in providing for the resumption of 

 cash payments at its expiration. 

 It would also be indispensable to 

 advert to the course of exchange 

 during a considerable portion of 

 the period to which he had alluded. 

 Prior to the retreat of the French 

 army from Russia, at the close of 

 the year 1812, the price of gold 

 bullion was 51. \2s. an ounce, and 

 of silver dollars 6s. 6d. an ounce. 

 At that time, therefore, any at- 

 tempt to restore the metallic cur- 

 rency of the country would be 

 utterly unavailing, as the coin 

 would have been collected and 

 melted as fast as it issued from 

 the coffers of the Bank. But 

 when the French army retired 

 into Germany, and when a pros- 

 pect arose of a successful termi- 

 nation of the war, gold fell to 

 5l. an ounce ; and subsequently, 

 when the allies got possession of 

 Paris, to 4-^. 6^. 6d., and there was 



Vol. LX. 



every indication of its Speedily 

 falling so low as to enable the 

 Bank to resume their payments 

 in cash. The unfortunate events, 

 however, which took place in the 

 Spring of 1815, and which again 

 involved Europe in the calamities 

 of war, prevented the pleasing 

 prospect from being realized. 

 After the return of Buonaparte 

 to France gold rose from 4/. 6s. 

 6d. to 51. Is. per ounce. From 

 the period, however, at which hos- 

 tilities ceased, it was but justice 

 to the Bank to state, that they had 

 adopted every measure of pre- 

 caution which might enable them 

 to resume cash payments with 

 safety. Their collection of specie 

 had been very rapid, and to a 

 large amount ; and in January 

 1817 they tried an experiment 

 by giving notice that they were 

 ready to make payments in cash of 

 outstanding notes of a certain de- 

 scription. The payment for which 

 cash might have been demanded 

 was about one million sterling; 

 but so little anxiety was mani- 

 fested by the public to avail 

 themselves of the offered pay- 

 ment, that a very inconsiderable 

 sum was required of the Bank for 

 that purpose. At that time gold 

 bullion, which had been conti- 

 nually faUing in price during the 

 preceding year, was reduced to 

 3/. 18« 6d. ; and silver to ^s. \Qd. 

 the ounce. 



In October last the Bank of 

 England, having experienced no 

 inconvenience from their former 

 experiment, were induced to try 

 another on a more extensive scale. 

 A regular notice was issued, in 

 pursuance of the directions of 

 the act of the 37th of the present 

 king and its amendments, that on 



[F] and 



