received no answer; and indeed, none State Prison, Newgate, Friday, MR. MARRYATT'S SPEECH the House of Commons, 25th April, 1811, on the subject of Exchequer Bills bought by the Bank. in Exchequer, Bills, these latter being a species of promissory note bearing interest; and these the Bank buys and keeps by them, and, of course, receives the interest for them; and, observe, they pay for them in their own notes, which bear no interest.This is a curious operation, and worth illustrating a little.The government issues notes called Exchequer Bills, in payment of debts that it owes, or in order to get money for the purpose of paying debts.--Now, to speak in round numbers, suppose the government wants a thousand pounds, and has not so much in the Exchequer. Why," say you, "as "paper is easily printed, and as people "are willing to take paper for labour and In goods, the best way is for the govern"ment to make a hundred ten pound "notes at once; and thus pay in its own MR. MARRYATT requested the attention "home-made coin. Why not do this?" of the House for a few minutes, on a sub-Indeed, it does seem absurd, that theject which to him appeared of considergovernment should go to the Bank to get able importance; it was the excessive paper to pay with, when it could make it purchase of Exchequer Bills by the Bank' as well at home. But, there is something of England. From official communica in appearances; there is something in tions, it had appeared, that the quantity settled opinion: and I have heard a man of Bank paper in circulation before the in the country say, that he thought the Bank restriction, was on the average fourNational Debt, or Funds, would fall; but, teen millions; that at the time of the rethat the Bank of England would stand. striction, eleven milions; and that at the Aye, it is that of England put to the end present about twenty-four millions. The of it; and long habit, which is second na- excessive nature of this latter issue was ture. Besides, it would not look well found in the increased price of provisions, for the government to issue its own money; and every article of common use. Some to print it off and publish it from White- of the evils which were imputed to this hall; for, it would easily occur then, to circulation, were, it was true, referred to every one, that there could not possibly the unguarded system of granting licences, 'be any want of money so long as there which had been lately pursued; and if were paper and ink. Hence it is that Parliament could pass an act for closing the other way is chosen; and this brings up the doors of the room where the Lords us back to our supposition of the thousand of Trade sat to grant those extravagant pounds wanted by the government.-It licences, and another to close up that issues, not bank notes. Oh, no! not for the where the Bank Directors met to manufacworld! It does not grind its own money. ture their notes, parliament could not It issues an Exchequer Bill for a thousand pass two Acts more highly beneficial to pounds. That is to say, it makes a pro- the community. The fact of the excesmissory note, bearing interest; the Bank sive issue of Bank-notes was not to be takes the said note, and gives the govern- denied; it was plain and palpable; but ment a hundred of its notes for it at ten then there came an answer promptly on pounds each, or ten notes at a hundred the other side. The Bank, it would be pounds each, no matter which; and these said, made no attempt at forcing their the government pays away for goods or paper into circulation, and the people services, or no matter what.So, you only got it as they asked for it. But the see, the government gives promissory matter of mischief lay in another direcnotes that bear an interest in exchange for tion. The Bank formerly drove a most promissory notes that bear no interest.- Blourishing Discount trade. It was notorious that the trade was cut short at once; and it was equally notorious that it was cut short merely by their most regular and best customers having found their way into After this, the reader will enter with due preparation upon Mr. MARRY ATT'S Speech, which I shall insert immediately after this Summary. The Speech, as will be seen, culation, and were made to pay even a the Gazette. When this prosperous traffic was at an end, the Bank looked about for another. They came into the market, bought up Exchequer Bills, and paid with their own paper. They thus pushed out an immense quantity of paper which cost them nothing; but which the public neither wished for, nor wanted. Let the House consider the effects of this principle once established. The whole transaction went against the original objects of a National Bank. The Bank was established for the assistance of commerce, to discount bills, to buy up bullion, and other purposes of the same kind. There was present to the minds of the founders of the Bank, all the danger which might arise from too close a connection between the Bank and the Government, and they adopted every pre-show, were only more deceived as they caution in their power against the evil. were more delighted. A Right Hon. Ba But in 1793, a Bill was brought in by Mr.ronet (Sir J. Sinclair), in a late publica Pitt, to allow the Bank to issue money tion, had actually ventured to state, that a upon Treasury acceptances. Even then Minister wanting to borrow, should en the principle was so far respected, that deavour to increase the circulating me. the issue was limited to 600,000l. Some dium of the country. To mention this modifications of the law had since taken singular opinion was enough for it. place, and it was possible the Bank But there was a circumstance springmight be sheltered by the letter, but ing from this unjustifiable intercourse they had certainly violated the spirit of the Bank with Government, which of the law, even as it stood at this mo- ought to awake the House. It was rement. The House should look at the corded in the report of the Lords' Secret hardships sustained by individuals in Committee on the Bank Restriction, that this trade. What was to be the chance in 1797, the Governor and Deputy Goverof private men, in a competition with the nor of the Bank, on the occasion of some Bank of England? In the first instance, transaction with the Government, actually this mighty purchaser swelled the price demanded of Mr. Pitt an obligation, that of the article by his perpetual presence in he would not subsidise, or enter into any the market. In the second place, he money négociation with any foreign Goswelled the price, without suffering any vernment, Power, or Potentate, without thing by his own extravagancies. The acquainting the Governor and Deputy individual brought actual property; the Governor of the Bank forthwith. The pro price of his land, his inheritance, his goods, mise was extorted from Mr. Pitt; and thus and must lay those down for the Exche-were the most important secrets of the quer Bill. The Bank was not pressed by State, and the whole course of our foreign this inconvenience. It parted with no-policy, put at the mercy of those two men. thing. It was liberal of nothing that was worth keeping. It simply went to its papermill. The mill was set in motion, the pur chase was made without difficulty, and the price of every thing we eat, or drink, or wear, was instantly increased. But why did it not strike the Minister that the Exchequer Bills might be subservient to more useful purposes than the profits of the Bank, and the increase of a paper citculation already enormous? The country would be better inclined to receive Exchequer Bills paying interest, than Bank-notes paying none. If the Exche quer Bills were put into a form fit for cir Let this be not forgotten by the House. Mr. Pitt was forced to submit to the demand; and did the House ever expect to see a firmer Minister than Mr. Pitt? But the Bank had still more power at this moment. Then, they had but their share in the circulation of the country; now, they had the whole circulation by their papermill. The Bank were now purchasers of Exchequer Bills to the amount of seventeen millions. This might be shewn to be highly injurious to the general interests of the Empire. But where was the purchase to stop? Was it to be said that an enquiry into these things was an enquiry into the circumstances of private property?rities was an injury to the country. The Certainly not. From the moment of the Bank made no profit by these transactions. Bank restriction, the Bank ceased to be a It had only complied with the regulations private undertaking. It became a public adopted by the wisdom of Parliament, instrument, strongly affecting public inte- without travelling into the vague staterests; and it was as justifiable to call such ments, of its having raised the price of the an agent to account, as any of his Majesty's necessaries of life by its issue of paper; Ministers. The charge now brought all which he (Mr. Manning) must most against the Bank was plain and intelligible. positively deny, (hear! hear! from the It was that of converting the means which Chancellor of the Exchequer): he must were confided to it for public profits, inform the Hon. Member, (Mr. Marryatt) into its own aggrandisement, and that that every paper which could be required charge was only to be met by a fair, open, for his satisfaction was already on the table, and candid refutation. The papers might in the Appendix to the Bullion Report, be refused; but if the Bank was guiltless, and in the accounts which the cashier of the they would not be refused. It would be Bank had lately presented to the House. impossible to attribute refusal to any other As to other transactions, not connected motive than the consciousness of guilt, and with matters of a public nature, it was not the fear of exposure. Mr. Marryatt then to be expected that any gratification. moved, "That there be laid before the would be given to mere curiosity. House, an account of the Exchequer Bills held by the Bank of England on the first day of January, April, June, and October, in each year, from 1797, up to the latest period to which the account could be completed." MR. MARRYATT complained that the only account which was material should be still refused. He desired to know, not the amount of the Bank dealing with Government, but the actual amount. of the purchase of Exchequer Bills by the Bank, on its private account in the market. But the Bank was now putting itself forward as the supporter of the public securities. Why was it to stop at seventeen millions? Why not bay up the whole thirty millions of Exchequer Bills that were out? Why not buy up all other securities? It would cost the Bank nothing but another application to the paper-mill. The Bank might then, with the whole mass of public securities in its hands, proceed to model its proceedings as might best suit its convenience. One of its operations might be the reduction of the interest; and the five per Cents. might become four, and four three, and so on. These might be the first fruits of the new power which the Bank had now taken to itself, and only a beginning of what might be effected by collusion with the Minister of the day. The papers necessary for de Mr. MANNING observed, that the charge against the Bank rested merely on the authority of the Hon. Member who had just spoken. There was no document on the subject before the House, and the House was certainly not bound to take notice of a mere unauthenticated statement. Some Acts of Parliament had been stated as limiting the purchase of Exchequer Bills to 600,000l. It was true that there had been a regulation for that purpose, but it was merely temporary, and died with the time. (The Hon. Member then quoted a variety of acts, in which purchases to the amount of millions were authorised by Parliament.) There had been, in the passing of those various Acts, opportunity enough to resist the extension of the purchase, if it were really illegal. When the Bank was charged with the extravagant traffic in Exchequer Bills, it ought to be known, that it never pur-monstrating those charges might be rechased at a premium. It was only when money was greatly wanting in the market and the most serious inconveniencies might result from withholding their purchase, that the Directors of the Bank appeared in the market. The Bank had been charged with raising the price of the government securities. This was a curious charge, and he (Mr. Manning) must go to school again, if he was to learn, that keeping up the value of government secu fused; but as a public man, he could not give confidence to those who demanded that he should give it blindly, with a precipice at his feet. He could not give his entire acquiescence to those who told him to shut his eyes, and walk on. After a few words from Sir J. Newport, the question was put, and negatived without a division. will easily explain the mischievous consequences of a paper circulating medium, which can never possess the determinate value of the precious metals; and also teach us to justly appreciate the system of the "Great man now no more," and the character of the greedy knaves and Impostors who build their fortunes on the ruin of their country. CIVIS. 21st April, 1811. OFFICIAL PAPERS. DEPRECIATION OF MONEY. Sir;-The information you lately gave to your readers respecting the state of the coinage in France, is conclusive evidence, if indeed any proof be wanting beyond what we daily experience, that it is not bullion which has advanced in price, but our paper currency, which is alarmingly depreciated below its nominal value. I am the better pleased with your statement because it clearly exposes the fallacious pretence that has been so idly urged, of the competition being merely between the SPAIN. BATTLE OF BARROSA.-Disputes at gold and silver currency and not between Cadiz, relative to the conduct of the Spathe real money generally and paper. It niards in that Battle.-Cadiz, 29 March appears that the six-livres-piece, being 1811. Concluded from page 1024.) about of the same intrinsic value as our Letter of D. JUAN DE LA CRUZ MONTGEON, crown, is, in reality passing in France at to D. JUAN JACINTO LOPEZ, in consethe rate of only 48. 10d. while Spanish Dollars worth 4s. 6d. are passing with us quence of the Letter of the English Officer, inserted in the Conciso, No. 41. at 5s. 6d. and, as you, in common with every other person of any discernment, This letter, which is of very consideraforesee, cannot be kept in circulation even ble length, begins with complaining of at that price. Can any thing be more ob- the want of precision in the details of the vious, when even our wretched silver cur- English Officer, either with regard to rency of counterfeit shillings and six- dates or the positions of the sections, corps, pences, which perhaps contain scarcely or divisions of the army. To remedy this half the standard quantity of silver, has defect the writer sends to his friend a absolutely almost entirely disappeared? If ground-plan of the whole, to illustrate the this will not convince the" thinking nation" contents of his letter. He then proceeds that Bank notes are at a discount, I am to analyse the letter of the English Officer afraid that a complete vacuum in our in the following manner:-"He says in pockets can alone cure the defect in his letter, I know not what took place another quarter.--Perhaps there never on the heights, after our troops left them,' was a question that resolved itself into a &c. To this I reply, that Brigadier Be-" more narrow compass than the subject we gines and myself remained upon them have now under discussion. If John Locke with the division under his command, were alive at this day, how would he laugh, which consisted of the company of mus or rather how indignant would he feel, at keteers of Getares, a battalion of the his degenerate countrymen for their Queen, the regiments of Seguenza, Canwretched credulity and ignorance? What tabria, Ciudad Real, a battalion of the would be his surprise at finding the press Walloons, another English battalion, 4 teem with a parcel of elaborate pamphlets; pieces of artillery, and all the baggage part to prove, and part to controvert a with the ammunition of the first and seplain matter of fact: a truism as palpable cond division, with orders from the Geneas that two and two make four ? -For ral in Chief to begin our retreat towards my own part, Mr. Cobbett, I shall despair the bridge, as soon as we saw the troops of the success of your arguments, how-repassing by it. We were in position at ever forcible, unless you can bestow com- this place when the enemy were descried mon understanding enough upon the manoeuvring to seize upon it, without thinking people" to make them perceive knowing whether the English or Spaniards that an ounce of gold or of silver in bullion, would come to our assistance: if not secannot be of more value than an equal weight cure of victory, we were at least in a si thereof in coin. They must, according to tuation tuation to perish in our ranks, in order to the very nature of things, be alike, allowing secure the retreat of our dear allies, which for that additional part of the value of coin also was carried into effect; it being seen' which is constituted by the price of also how much our position threatened labour.When the foregoing elemen- the enemy, the latter marched the whole tary proposition is clearly understood, it of his columns to attack the troops upo " it, and not the English, whom they could by no means see; a proof of this truth being, that when General Graham with his troops issued from the pine-wood, he encountered those of the enemy, who had changed the direction of their columns on account of our retreat, which D. Santiago Whittingham conducted. Having now entered the pine-wood, I observed that the English light infantry had begun the action with those of the enemy who followed us, and that the British army had returned by means of a countermarch, and was beginning to form in line by wheeling on its left, at the foot of a small height which the enemy already occupied, with whom a terrible fire had commenced; then the English battalion, which marched in front of the column which I commanded (consisting of the Walloon battalion, and the regiment of Ciudad Real, and two pieces of artillery), marched towards the line of battle which the other troops of their nation were forming, which battalion I followed; but. at that moment General Whittingham ordered me to march my column to support the right flank, which gave him most anxiety; because the enemy had already penetrated towards the beach. At that moment I countermarched by the left, in order not to obstruct the line of battle which the English were forming, and marched upon CasaBlanca, making this movement in close battalion, supporting the fire of artillery without returning a shot, overawing the enemy's cavalry, who durst not attack, and never forming in line, because we wanted a point of support.-On attending to the above, it is necessary to observe, that if Senor C. P. 'when he came out of the pine-wood did not see any Spanish troops, it must have been because of his being fully occupied, or because for a time they were on the left flank of the line, where it was very difficult for him to see them, on account of the wood and the broken ground over which my column had to march. Doubtless C. P. confounds Torre-Barrosawith Casa-Blanca, since the latter is the most elevated point in the ridge of Puerco; and being close to the sea, it was not so important for General Graham to preserve Barrosa as Casa-Blanca, which is the point that commands all the ground. He says, That the two battalions made every effort to come up, but did not join till all was over, &c. To this I reply as follows: -As the orders which I had were to guard the right flank, it became my duty, on no account to join the English line of battle, thus leaving open to the enemy the pass which was in my rear. Had that been done, so far from being victorious, we should have been routed; for all the English troops were in one line, and there were no others to manoeuvre, but those which I commanded, and those which supported me on my right flank, and which were commanded by Senor Begines. For this reason I marched still in close column of formation against the force of the cavalry and infantry which was posted in front of Casa-Blanca, accompanied by a squadron of English hussars. I ordered the remains of the first of Valencia, and the companies of light infantry of Siguenza and Cantabria, to attack in divisions those of the enemy who had bastened to the beach to get possession of our baggage. This was executed, and, together with the closeness of the column under my command, so alarmed the enemy, that their cavalry abandoned their light troops, and retired in all haste towards the ter mination of the Lagoon. Observing that the enemy were now neither on my rear nor on my right, I marched my column towards the right flank of the English line of battle, whose left was still engaged. In this situation, and always advancing, the squadron of English hussars advanced and charged the enemy's cavalry, who waited for them with firmness, but the valour and intrepidity of the British hussars routed them in less than a minute. In the pursuit the hussars fell in with a small square of enemy's infantry, who opened their fire upon them, and the hussars prudently retired to their line of formation. I took advantage of this interval, and opened a fire from my two pieces of artillery, the balls of which reached this square body, which formed in column and began to retire. This being seen by the right flank of the enemy's line, which still kept up the firing with much briskness, they also began their retreat in the greatest disorder, at which moment I received orders from General Graham to suspend the march of my column, and give the troops some relaxation, as the English also did.-The whole of the above being an incontestable fact, Senor C. P. ought to confess, that the column under my command, consisting of the battalion of Walloons, the regiment of Ciudad Real, and two pieces of artillery, not only reached the English line before the close of the action, |