The Committees of 1819.

Both Houses of Parliament appointed committees on the Resumption. Each committee rendered two reports consecutively. These reports were not in themselves very able documents, but it appeared from the reports, and from the evidence of the persons examined, that the public conviction in regard to the questions discussed in 1811 had entirely changed. It was now admitted by all but very few that the currency was depreciated, and that the adverse exchanges and outflow of gold were consequences of the presence of depreciated paper, and must last so long as the paper remained—consequently, that, to resume specie payments, the whole problem was to get rid of the paper. These doctrines were disputed by no one save, strangely enough, the directors of the Bank of England. They passed a resolution that they could see no good ground for the opinion that the Bank had “only to reduce its issues to obtain a favorable turn in the exchanges, and a consequent influx of the precious metals.”

There was, however, a strong party of city men who opposed resumption, and petitioned against it on account of the ruin which contraction would bring upon the country. The Bank of England also offered a “Representation” opposed to any legislation fixing a time for resumption. The difficulties involved in contraction no one denied.

It was agreed on all sides that the movement must be gradual and careful, if made at all. Thus the question was narrowed down to this: Is it expedient, in view of the effects of the suspension which we have experienced, and in view of the benefits of a sound currency, to set to work manfully to endure the distress for the sake of the good? On that issue the city men took the negative, the statesmen the affirmative.

The plan proposed for resumption, was founded on Ricardo's theory of currency, more familiarly known as the Hamburg currency.

On this plan, metal may be deposited in the Bank, being weighed and assayed, and its value in a set denomination is put to the credit of the depositor. No coin is used, but generally business is done by transfers on the Bank's books of credits, thus made. When payments out of Bank are demanded, they are made in ingots, weighed, assayed, and stamped. It was proposed that the Bank should redeem its notes in ingots of sixty ounces weight after February 1st, 1820, and until the 1st of October, 1820, at £4 is. per ounce; from October 1st, 1820, to May 1st, 1821, at £3 19s. 6d.; from May 1st 1821, to May 1st, 1823, at £3 17s. 10½d.; and after May 1st, 1823, in coin on demand. This was amended so that it should pay in ingots at £3 17s. 10½d. after May 1st, 1822, instead of May 1st, 1821.