gement of the
currency, in the general diffusion of gold coin, probably not less than
L30,000,000 or L35,000,000, through every part, a security which did not
exist in Ireland or Scotland: he would therefore oblige any excess of
the issues of the banks, over the amounts now fixed, to be based not on
bullion or Bank of England notes, but on bullion alone; gold or silver
bullion; making silver under two pounds a legal tender. It would be
advantageous to encourage an increase of silver, especially in Ireland.
The banks would, in future, be obliged to make weekly returns of the
notes in circulation: but in Scotland, returns of the circulation each
day would be fallacious, on account of exchanges with other banks; and
therefore he would continue the present system of making a return of the
last day in each week; the average would be struck on the returns for
four weeks, and the circulation, or any excess, calculated on that
average. Several statistical particulars, such as the amount of gold
in each bank, or distinction between the L5 and the lower notes, the
description of issues, &c, would be required; but the information
thus exacted by government would be in confidence: the monthly returns
published by the stamp-office resembling those now made in England. The
average circulation of the Scotch banks in the thirteen months since the
27th of April was L3,041,000; but there was in the November of each year
an excess in the issues of about L500,000, which would of course have
to be based on bullion. The average circulation in Ireland would
in future be, of the national bank, L3,706,000; of the other banks,
L2,565,000; in all. L6,271,000. As there was in Scotland no national
bank to supply any deficiency caused in the circulation by the failure
of any joint-stock bank, he would give permission for any bank to
dispose of its circulation to another bank; the aggregate of the two
amounts to be taken as the joint circulation. To avoid any inconvenience
or precipitancy, the plan would not come into operation until the 1st of
January, 1846. Sir Robert Peel concluded by expressing his belief that
this plan would add to the stability of the circulation in the United
Kingdom, and would be an equitable way of making Ireland and Scotland
bear their share of the burden of providing a guarantee against
commercial panic. These bills passed through both houses without much
discussion, and became law.

During this session a measure was passe