IIASZARD’S GAZETTE. APRIL 16.

specie. reduced 10 per cent in value below that of the adjoining Colonies; and it is beyottd all questtou,thsi the additional issue of .5 lb.000 inure of the some uti- redeemable paper would Cllllalt' the further tlepn-ciu- tieu which he tniticipated; IIIMI indo-t.-tl I tltink tnuch greater" litsru scripln rimnel. “ A clian e hits in- Sctl come o'er the spirit oftlie tlrcam," o their lio- nors; their remarks on the measure of I846 are 9° ‘PP ICING to the views I entertain on the present Bill, that it is almost uunecesssrv for me to lll.IlI any thing ofiny own, but [must rlllll trespass on- your Honors’ indulgence by offering st l'cu nlissrvstiotts on awed ofsuch great imperiaittcr us this is. In the iii“! in Ilguinst the Iiuynl Iii-lrucliuns. It ill true the Bill has it suspending clause, lint llis lixcel-,

loniee on the subject,a draft of the Bill before us hav- bg lee sent with the documents referred to, I cannot but think it highly indelicule and itnpropcr to is tics any such measure. until an answer -hull ve been received from the Colottial Ullico " Si- in this case cannot construed into giving as- sent.” I should a the reverse. when I see every dsaputch received itherlo frotn the Coloitial Dilice has been prohibitory of an issue of a r not payable in in on demand. It is self-evident tltat the ti-hole matter has emanated from the Executive. llis Excel- lency talti lils infornistion and opinions from his Council, in test his dasputch recommending the mea- sure; and it is equally evideiit,thst the Colonial (mice has not listened to it. rid why? simply because the principle laid dowit is diametrically opposed to the views of all the most able finunciitrs of the present day. ticularly of the successors of the late Sir Ro- bert who are now in oflce, and who will never listen to the admission of a principle so opposed to that by which they are governed on such a question as this. In rotation of what I have said, lcun safely refer you to all previous despaiohes which have been received on this subject. It was ill sdvics,which caused the introduction of such a ntessure particularl until after an answer to his Excellsucy's despstc had been received from the Colonial Ofiice ‘ great financial error which will tend to the ruin of any country which ms bate recourse to its admission. In times of sdversity,it is ruin. It also tends to mis- lead the people by leading them to the belief that it will increase their osperity. Paper money if not lid in specie and payable on demand, is in fact a delusion. Why should our paper remain in its ' itiou,when compared with that oftbe Provinces of New Brunswick and Nova Scotia ? Sim- ply from the cause above stated Once make our paper payable eudorriaud in specie. and it would be On with theui,und circulate as freely in these viucos as their paper does in our Island. I-‘sr front such a system being hutiuIicial—-it has a contrary effect. as it tends to prevent the establishment of private banks, which would indeed benefit the coiittnunity. I ful Igruu with his honor (Mr. Hensley) that the Govern- llient cuglit,n_ot to be Bankers. It is art ' power to be exercised by a Government, and might prove prejudicial to the interests of the Commercial lad ' tural community. I w’ ttow advert to s

I

plrugraph in hie I-Ixcullency‘s Despntcli of 2d Jau., 858, which I canttot pziss over without notice. It is auto clear from the uicntorandum of the Executive rd, that his Excellency derived his information from that source, and I am, therefore, of o inion the rernarks,l am about to make will apply to Ills Escal- lmcy's advhers rather titan to ltiinself. Iain the more inclined to arrive at that conclusion from the arguments used on moving the second reading of the Bill, by his honor Mr. Swabey. it member of the Exe- cutive, who evidently had a finger in the concoctirtg of that document as it tallies so iuuclt with his speech. Be that as it may, tltcre;is, at all events,a striking co- incidence. The paragraph is this : " No alterations, however, had taken place in the Warrant system un- til this year, when the Government were enabled, with your Lordsliip’s sanction, to borrow £10,000 to pay oil‘ an e uivztlent amount of Warrants; nearlyt e whole of t c loan has been effected at 5 er cent., notwithstanding the ictions of some who have long benefited in so periiiciouss system. y s' and discounting, at usurious rules if infsrsst, Warrants to large amounts. to the great de- triment of the Colony, and pecuniary loss of poor Ilb dividuals." I conclude the sage is correct as it comes front the Secretary's Ufiice. It is different in the document as printed in a Journal be- fore me, in tvhicli the leriti “various" instead of " usurious” is used (the hon. Mr. Hensley said the term tvss “ usurious“ in the original. and the hon. the Attorney General confirmed it. b stating,tiiat the copy received through the Colonial Secretary was correct) In? argument is founded in the precise lan- guage us in that document, and I may therefore proceed. I object to the terms " pernicious” and " usurious." The first is unjust as applied to indi- viduals who iteld Warrants at that period, inasmuch as, it is well known, that Warrants were not so much in demand as they have been of late, and but for the arrival of it few rsons of capital, they would scarcely have been ncgotiabie,even at a much greater depreciation than was the case, although hearing in- terest at6 per cent, and therefore the persons who invested their capital in Warrants were benefactors both to the Colony and to the poor man. The second term, Ihold to ' ' . To purchase any

5

ion

is made in the rate of interest, but in the value of the Bond, by either a temporary pressure on the money market or a want of credit in the security itself. The same fiuctuatiou of price is continually occurring in land both in the funded Ind uuf Debt. Such transactions cannot be termed “ usurious," as no more than legal interest canbe exacted. e- fore, I consider the term unfairly and incorrectly used iven to understand, that a system does prevail in this Island, by which certain indivi- dsslv are exacting to per cent., 20 r cent., 80 per cent. and even more for discounts a loans of money; audlf chbstIiecsse,Ithink theterms "pernici- our” and " usurious” may well be applied to such a system. Such acts amount to an evasion, if not a di- rect violstion, of the usury lntu, and so ion as they remain on our Statute Book, can as little be efeuded as the acts of the smuggler. It is illegal, and morally and religiously wro , and no defence of such a sys- tuin an be zrtcmpt with justice by any right thin- hiug man in the communit . It may well be said to be a "detriment '.o .lm Co on; and u pecanisry loss to pour Individuals," and cannot be too loudly con- deruled. Ituru now to the proposed plan of pa ing oftbe remainder of the Warrants by mans olths issue of Trsesur Notes, in other words, to pay ed’ a debt bearings‘ rest by an issue of Notes not payable ea in specie, in fact by another debt not touring fstrrm. is your ivste trausaotioliu, would ask your Honors whether you would like to be dealt with in like manner? Undoubtedly sot ; and why then should the public c itor be so treated? Pay him ofi’ if you please in go or silver, or in paper payable iugsclo on demand, but to force him to take the Legislature. paper out redeemable in

specie 'Iscarouly acting with common honesty. It is true. you may present the Notes for payment at the Treasury. and I refused, there being no obligation to gay I; is, you may have the amount funded.

OW I

olgnzt of the present Bill be,to extend the deflut the infection .’ The holder of Warrants bui

E

does not at once see how it won

the ‘hssssrsr Ha inset, however. -ale his s essury on certain quar- upy days, sod by uszietstt Geo. nit clause s A ths'I‘reesurer red vs csrtlfloahs tolhs_aui- ussrsrttie Notes, bearing atsrsst; but the Act II It- leur, asto the rate ofiutnestor the time when it is to he paid. New this Iisisg the case, the at Bill rt-iay'be J a Warrant-ereatifl Ass, hes. the Air says—" the one could set be

t’ Hfihtlou again" Just so. Thus where sddltissisibsclroslsiissl It be ‘$3. ‘lib bsleg aliulttd

tltsitliellotss rnaybefhedsd,asI -seiaeressst-fihs fibs,a*.iuh'wessseftbeehIlstlsu wselleasas

from the passing of this Bill, even if the Royal esseitt could be obtained. ‘ now consider the subject of paper is-ties, as it affects the question of llmtlti-lg: iii an .\tm.-iicnn \\tIl'|i, entitled “ u it: IWIII). ' by (.'alt'in l'otion, l\lIIl'lI I hold in luv liaIid,I liiid the following seittence.un-ler the bend of " Paper Honey and llll ‘ng-” “ Assuming that no paper tuuney ought ever to be in circulation which is set good for the ittitoiint in it ie. whenever dsiliiatided b Ill!‘ holder; intd that no in-otiiatious liir such issues a id be authorized. Willltml beiag obliged to conform to this rule,—it may be said, that the invention oirsper iiioney, on such a basis, has prov scarcely less importance to sorbty than that of it inetallic curren- cy." Here is the principle for which tvl contend, fully recogiiinud. fler tresti the tiistter at some length. he proceeds to OlplIIlI|IfIG isietliodof Banking. Ile writes. “ 'I‘lte usual mode of banking in the United States. has been through the itgsno of our rate Companies; tit the State of New orh aut rtzed privuts banltiitg, by requiring deposits of public funds \\‘lll| the Comptroller. as security, and the Coiuptroller‘s stamp on all such private issues, as a method of inspection and control." " No system of banking can stand, except as the Notes are always payable on demand. in I ul tsuder.—tliat is. specie. They who prefer paper, or convenience, are usually many to one of those who want is. chances and pI’0li.tI)l8 calls for specie are obliged to be well considered by the Bank. so that it may not be taken by surprise,—and its issues are regulated according- ly"’ Alter proceeding in favor of banking. as egreat inesns of omotiitg the prosperity of a country. and tiller spea ing in tertns of praise of the late Sir I. Peel's Bill of I8-I4. he again recognizes distinctly the principle we are advocating in these words: " Never- theless, the world now generally understands and he- lievcs that nothing but a basis corn of the pre- cious metals, exchangeable on demand, will sustain a circulating ineditiin in full credit." He then alludes to Government. Banking, in no very favorable tornis. He says, “ 'I‘he greatest hazard of all for s Govern- ment to set up Banking in its own oper capacity, H the temptation to trade on the pub ic credit. Honey brokers may do this legi 'inately; but that a Govern- ment itself should do it, in banking, as a part of its banking capital, is one of the most alarming features of the case. After all the experience of the world, it ought to be considered as a settled question. that no paper should ever be authorised as a common cur- rency, which isuot founded on u specie basis, and wltic is not redeemable on demand in specie." What can be said more to the purpose than I ave read from this work ?—and coming from the efsn Ameri- can, it proves, beyond all doubt. that experience has led the United States to admit the principle of a ma- talliu basis for their issues. I must a logius for

taking a so utuch of the time of our ouors; but feeling! importance of the sub’ t, witiia few more observations, I will conclude. e to y of the measure before us is it‘ hly prejudicial. In the face

roposed issue of Iebentures. under the Land Purc as Bill, you contemplate a further issue of un- redeemable nper. How can you expect the capital- ist to come orwsrd. with the prospect of being repaid inn deprcciatell currency ? Independent of this, who would attempt to establish a Bank in this Colony, without being secured from the elects of an excessive issue of 'I‘reas Notes? No sensible man would encounter such a risk; and so Ion as this a stem is allowed to prevail, so long willtbe olouysu riujary by such obstruction to the establishment of a Bank. Let the Government but see this matter in its proper light, and cease to tani r with the Currency; attd let them lettd every facility to the estabfwhincnt of a Bank. on sound principles; and you will soon see the effects of such a course, in e increasing activity, and consequent prosperity, of this commercial a

a riculiaral community. I had intendedtohave add- ed to my arguments safew extracts from the “ Report of the Currency Comntissieners;" but as you have that in our in I will merely refer you to it for con rmattoti of the principles I have endeavoured to advocate. I feel that I have already taken up too much time. In concluding my remarks on this ques- tion, I cannot avoid repeating, that as a draft of this Bill lies been sent home, I think it would be unad- visablc to proceed further in the matter. Had it been in o position to the views of the party now in ofiice in .ngland. and directly in the teeth of p vious llespstchss. some excuse might be ered _ the course pursued by the supporters of the Bill. Tlierefore, with these observations, and entertaining the views I do on this subject, I begto secondthe amendment, that the Bill be read a second time this da three months.

‘yflte Hon. the Ari-oitxsv Gxxnst. In sup- porting the motion for the second roadln of this Bill, I shall ofi'er a few remarks w ‘ch Octglf to me, some of wkhich hpve hlJO0flI;'lII|ld0d to the reviottss en. at o tplaoe, the iiifibrtiirce of thianposition of the court in the year 1848 and in I853, I must observe is very great. s n net-al rinciple, I admit that no paper ought to be issued exoe t on a sound specie basis, bntlthink, Your ouors, that circumstances will justify a modification of that principle for the purpose of carrying it Government successfully on. I would , what is the the present state of the pa r of

' ‘ Island! (the hon. Mr. “ at it discount of 20 per cent). Look on the itmotmt of Island Treasury notes in the Teasurfi during any one quarter. Your Honors wi hardly credit me, when I state from facts that cannot be contradicted, that it has never exceed- ed three or four hundred pounds. as imued by this Government. In what then has the baknce consisted! why in Coins and in New Brunswick and Nova Bootis Noles—tlie New Brunswick Notes redeemable in s le, those issued by the Government of Nova tie, not so. A "sea

rfl

C '5 3

many Notes from one pound and upwa through my hands in the eouric of a year. circulation of the Notes of these ces In this Island is almost incredible. I re say over £1 .000 The hon. Mr. Hensley " is this merel supposition 1) Yes, but I firntl believe it it I happen to have rather fiver-ab c oppor- tunities for afiruiing an opinion upon the sub- ject. Such beln the case then, it is essential that there she d be some change, because clearly up rs,tbat our Island Notes are in demand on that there are not enough of them to meet the wants of the Country. conceive that this bill would retued the inconvenience a at vlug the other Notes opt of circulation. Wihtlin derives e benefit t e pa 1- currency ve Your Ilznors, the banks of lihx and New Brunswick derive the whole benefit ofour oulution. And yet do you mean to m that they do not—tlist it is no benefit to those Some of these Notes may never be seen up their I rs-the may be

use so

My ost—-a vessel, in

sane l which there are In ividusls who have theta may

, yet t banks are gains by them and they derive ides the whole benc t those the are in

circulation. Now,I ask if such be the case- lflt be the bet, that our Notes lnvu not oisted in value for the last 15 or I) knowthatthsrcliasuotbesnths gh preoiation since my knowledp of the. Island. the discount havippg always been N per out, Is not this Island on perfeefly issuin an increased amount of tainly would not assert, tlmt burdened with an ex

- seams’ .Hau fthebasks ti.u§itii7"'sa"iu‘liuoecu’o.'iitsai h

oI‘;'o.ulatlou;butdoyouueautsmy,&t, we eurruvsassdwwssnm would’. irortuaeoo,ir....t...

-£11,500 in

income of £30,000 and. only 2:-tttls .i."25000. Sm-e|y fi ig fflfll hour-r at i-nil of thi- vcttr than he was at the lwgiuning of it ' 'l‘li--W is an act on record too (the statute uutlturising the funding of notes) that advanhgt: giiiltl be taken of the very instant that an excessive ii-sue did the plnoc. under whit-li Notes can be fit]- dcd. of which your Honors have lost slfitt and which would meet your Honors‘ obyoetiun-—

hat does the 7th 0 use say‘ (his honor read it) I heard thpt no time was lirslb§b—g interest was it

lint no

merely ravila at it \\‘lIIIl but perhaps at-corilinu In llu- true and strict delinitmit til the word. it initv not bi- a correct tune. that lmttrt-rt". in lilll of little con- M‘t|llt‘llCI'. \\'ln-tlm niv aIfL’Ill|lr'IlIr- II--\t‘ lu-t-it ul such it o.titirt- us toi-tmvim--- any in HIM llmimu ‘ tbet than would be little i-liaiwe nl il:III|.'0‘I0|Ib it’- snlts frogt a further incur! --I 'l'mtsiiry Mites, know not‘ put I assure vi-tr, |Ii;i| if I thought llill lunch tttmld be its i'eu.~o-qmenre. I \\'lIlIlll unheal- tatiugly prrii Inv plan in llIP Government anti oppose the Bill to the tiliiiusl of any in-Mr. hat I

tfietl is; easiest lllllill. stay. I an cesmnsed. Illul it will not

P“ . ' within three years ['l‘lte Hon. Sir. lli-ttuley , realise the evils so ilrlltIlII¢'IIlll' imurlriiwll ‘-, "H W‘

“ where is the amount ofitiu-.rest.‘ “ Illll Honor the Attorney General replied. that there was no necessit to have stated the pttrtit-nlar amount of interest, for the legal rate of interest . , t. was ‘presumed and could he recove . The Hon. r. Hensley diirred from his Holt. and contended thutit was indispcnsebly necessary, that both the rate sltould have been s a rtiettlur time, but that nei-

er had been and consequently that such a fund- er would be liable to be exposed to the oaprice of the Government as to the amount of interest it would allow—-" they might,” said the Hon. Mr. Hensley, “ only allow you 4 r cent."-The Hon. the Attorney General “ I ink your Honor would understand it, if you were to e Treasury on each an errand" The circumstan- ces of this Colony are very di rent indeed from what they were in I

I consider, that at the present moment, inde- pendently of the Treasury

pa r altogether, this colony has a surplus of £2,580. currency. the Hon. Mr. Birnie "Ido not admit it."] he

Treasurer-’s accounts shew it, and that not only in Bonds but from other sources. ind&endcnt of the Treasury Notes. In 1848, the lony was heavily in debt, but now it is free of it. con- tend, that the Colon is not paying any interest on any part of the pa lic debt, because although there was the sum of £22,000, on which infer-est was payable, yet there was, to meet at, the large amount of bonds. I have spoken of. bearin interest, so that one interest may be said tosbe uivalent to the other, and- there is ' otes which do not bear interest, and that debt is on these Treasur Notes not 'ug interest. and thus the Colony being rapidly increasing in rosperi , the Govern- ment is perfectly sti in bringing forward the present Bill (his Honor then referred to the emorandum by the Executive.) Now I difier altogether with some opinions of our Honors. I do not. coincide in them at all wit regard to the efict our issue of Notes would have on the establishing of a bank here, because I believe. that if one were established and its mane rs found that our pit r interfered with their oper- ations: cou it easily get hold of it and

the ‘fund it. Siiplpose for instance the Bank ol'

British Nort America were to esniblisli a bank here, how very easily could it bn_v up the‘ government paper. fund it, and issue their own pa r in place of it. But again, your Honors my, if you had the £25,000, what is to hinder

e Government from issuing £25,000. more! Do not our Honors see, that there would be an efiectualcheok on such an attempt, because the Imperial Government would immediately turn roun say, no, you must not, you have issued enough already! But what danger I would ask, would are be with such p revenue

olemtaeiely sxbibo

contrary, I believe it to he afiititiwiztl ttteosum lul- l tnirably calculated to promote cotnmercinl enter- : prise and to sdvsnis- the prosperity of the Island

in a greater ratio even Ilisii the last li-tr years have ' ’ . 'el|v second the Mo- ' tion that the Bill be read a '.’d time, and hope that ill meet with the eiioouragemeiil it so well tIP|0'I’\'t9l and that it will one long become part of the law oftbe lsnil. (To be continued.)

LEISLATIVB SUHIABY House: or Assnaunv, 'l‘liursday, April 7.

TI’-JNANT COMI’E.\'SA'I‘ION BILI. Hon. Mr. Cons, lkotn the Coinuiittce appoint- to draw u Reasons for disc eein to cer- tain of the uiicil‘s amendments to his Bill,