GENERAL HISTORY. 



[G7 



about five millions sterling. In 

 the budget of 1817 they made a 

 provision of thirty miUions of 

 rentes, amounting to about 15 

 millions of money at the then 

 price of the French funds. This 

 sum was raised in three several 

 loans, and left about three millions 

 of 7-entes short of the proposed 

 loan. If the conunittee vt^ould 

 compare the dates of these loans 

 with the periods at which the 

 rate of exchange began to be un- 

 favourable towards this country, 

 it would be found to fall soon 

 after the conclusion of the first 

 French loan. He was far from 

 wishing to throw any blame on 

 the contractors for these loans ; 

 at the same time it ought to be 

 remembered that these were sub- 

 jects with which government 

 ought not to interfere. There 

 were, moreover, political advan- 

 tages of great importance con- 

 nected with these loans ; for they 

 had contributed to support the 

 French government, and to enable 

 it to make good its engagements 

 with foreign powers. The effect, 

 however, of these transactions 

 Were such as he had described. 

 The two millions and a half of 

 cash issued by the Bank in pay- 

 ment of their notes had imme- 

 diately gone out of this country, 

 and had enabled the contractors 

 for the French loans to make 

 good their engagements. But 

 there was at present a negotia- 

 tion on foot which might probably 

 end in the raising of a much 

 larger sum. 



The committee were aware that 

 by the treaty of Paris the allied 

 army might either leave France 

 in the course of the present year, 

 or remain there two years longer. 



If it should leave that country in 

 the present year, and the French 

 should fulfil their pecuniary en- 

 gagements during the same year, 

 in addition to the sum of twelve 

 millions, for which a loan had 

 been concluded, the French go- 

 vernment would probably want 

 a farther sum of twenty mil- 

 lions sterling to enable it to 

 liquidate all the claims upon it. 

 He had already stated, that as 

 fur as regarded our internal situa- 

 tion, there could be no danger 

 in the resumption of cash pay- 

 ments by the Bank. But when 

 so large a drain might be made 

 from this country as would be 

 occasioned by the French loan in 

 contemplation, he would put it to 

 the committee, whether the dan- 

 ger of resuming cash payments at 

 an undue time would not over- 

 balance any disadvantage which 

 might arise from the temporary 

 prolongation of the restriction. 

 He then drew a comparison be • 

 tween the original stoppage of 

 cash payments from the Bank, 

 and the period which the com- 

 mittee were now led to contem- 

 plate ; and endeavoured to show 

 the similarity of circumstances 

 in the two periods. 



Should he, he proceeded, be 

 asked whether the nature of our 

 currency was to depend upon the 

 operations of foreign powers, he 

 would reply, certainly not. If 

 we could really return to a state 

 of permanent and secure circula- 

 tion with safety, we ought to 

 resume that state of things with- 

 out delay ; but the moment would 

 be ill- chosen for making the at- 

 tempt when we were under the 

 influence of circumstances very 

 like those when the suspension 



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