ge for it. If this were not
permitted, the Bank having no interest in keeping a supply of silver,
would probably cease to keep it; but it was important for the country
to have access to such a supply, not only for domestic circulation, but
with reference to foreign commerce. He proposed, therefore, to permit
an issue of notes upon silver bullion, in the proportion of one-fifth of
the whole, or one part in silver to four in gold. With respect to banks
of issue, he would save them their circulation until parliament should
make further order, and he would compute that circulation upon the
average of its amount from the 6th May, 1842, to the 6th May, 1844,
requiring henceforth a weekly publication of it. Where one bank took
the business of another, the benefit of the averages of the extinguished
bank should be given in the circulation of the surviving bank. If a bank
should increase its branches, it would not be allowed to increase
its total issues. If private banks should coalesce, the consolidated
concern, being still a private bank, should be permitted to retain the
benefit of the circulation of all the component banks, but a change
of character would not be permitted: joint-stock banks would not be
authorized to buy up the circulation of private banks. Sir Robert Peel
next explained the way in which he intended that the new plan should
operate with respect to those banks which had been issuing Bank of
England notes, and announced that the Bank of England was prepared to
enter into negociations with other banks for arrangements under which
its notes should be circulated by them. He concluded by adverting to
some exceptions which had been taken to some parts of his measure,
in doing which he showed that they were founded upon safe and just
principles. After a brief discussion, the resolutions were passed, and
the second reading of the bill founded upon them was moved on the 13th
of June. Mr. Hawes moved as an amendment:--"That no sufficient evidence
has been laid before the house to justify the proposed interference with
banks of issue in the management of their circulation." This motion
was supported by Messrs. Hastie, Woolehouse, C. Buller, Gisborne, and
Williams; and opposed by the chancellor of the exchequer, Sirs R.
Peel and W. Clay, and Messrs. Hume and Warburton. On a division it was
negatived by a majority of one hundred and eighty-five against thirty;
and after some further discussions in committee, in which some m