POSTSCRIPT.

SATURDAY.

In the House of Commons last night, the CinliscesLoa of the ExenaQUER moved for the appointment of a Select Committee "to inquire into the operation of the Bank Act of 1844, and of the Bank Acts for Ireland and Scotland of 1845 ; and also to inquire into the law relating to Joint, Stock Banks." In order to understand the operation of the Act of 1844, Sir George Lewis thought it necessary to go back to the time of Bank Restriction, and Peel's Act of 1819. He reviewed the history of the various measures from that time to the present ; taking up all the points of it which have been rendered so familiar lately by Lord Overstone's book and the discussions of the press—down to the question "what is a pound ? " or, as Sir George Lewis expressed it, "what is the meaning of a one-pound note ? " The interest of his speech lay in the practical part, when he came to consider the question of the precise limit which should be fixed as to the issue of notes.

"The limit was originally fixed at 14,000,0001.; but since that time an order of Council had been made, under a clause in the Act, by which the Government is empowered to authorize the Bank to issue in addition to the 14,000,000/. upon securities two-thirds of the amount abandoned by the country banks. The additional sum which the Bank can issue in consequence of that order of December 1855, is 475,0001. • therefore it is at present empowered to issue notes to the amount of 14,475,0001. It has been suggested that this limit is too narrow, and that it might be increased or enlarged. Now, Sir, with regard to the point at which numerical limits are fixed, it is very difficult to give an answer which shall be conclusively in favour of any precise amount. When it is once admitted that a limit is to be adopted, it is necessary to fix upon some sum at which the line shall be drawn ; but it would be very difficult to give a reason why it should not be a little more or a little less. In the case of a duty of ls.,it would generally be difficult to *bow why it should be that precise amount and not either 11d. or 13d. In the present instance the amount of 14,000,000/. was taken as representing the lowest amount to which it was thought the currency might descend ; and I believe it has, in the operation of the act, been found not an inconvenient amount. Those persons who desire to raise this limit to about 16,000,000/. have it I apprehend, in view, that such an alteration would enlarge the issue of the Bank and the paper currency of the country by the amount of about 1,500,0001. My belief is that an extension of the limit to that extent would would have no such effect, but would simply enable the Bank to keep a million and a half less gold. The issues would not be increased, because they are already sufficient to meet the wants of the trade of the country. In any measure which I now have in contemplation, it is not my intention to propose any alteration of the limit which is now fixed by law, and which may, in round numbers, be taken at 14,500,0001. At the same time, I quite admit that it is a subject fairly within the consideration of the Committee ; and I need not say that if I am appointed a member of that Comniittee, I shall be fully prepared to go into the inquiry with the view of seeing whether any public benefit would arise from the enlargement of the limit. There is another point which is referred to in the report of the Committee of 1848, and which is generally mentioned in connexion with the policy of this act. I mean the question whether, as a legislative limit is to be imposed upon the discretion of the Bank with respect to the issue of paper, power should not by law be vested in the Government to dispense with the restriction, and to enable the Bank in extraordinary circumstances to depart from the provisions of the act. I confess that I am entirely hostile to any such provision. It appears to me that not only is the Government empowered, but it is required, by the maxim Salus populi supreme lex '—by the duty incumbent upon all Governments to interfere at critical moments—to depart from the provisions of the law, and afterwards to come to Parliament for an indemnity ; the course which was taken in the year 1847. In support of that opinion, I will take the liberty of referring the House to a remarkable precedent in the year 1797 on the occasion of the Bank-restriction. In consequence of the demands which were made upon the Bank for foreign loans and for the military service of the year, the bullion in the Bank was at the commencement of the year 1797 reduced to a very low ebb. The demands upon the Bank increased ; the reserve of bullion diminished during the month of February, until at the end of a certain week in that month it was found that matters had become urgent. Parliament was sitting at the time ; but Mr. Pitt thought the affair so pressing, that, after communicating with the Bank authorities on the Saturday, he convened a Council on the Sunday. On a certain Sunday in the month of February 1797, an order in Council was agreed to, restraining the Bank from paying in specie ; and on the following day, Monday, Mr. Pitt brought down a message from the Crown informing Parliament of the step which had been taken, and explained it to the House. I think that precedent, the legality of which has never been questioned, although the policy of the Bank-restriction has been much disputed—an example set by Mr. Pitt, who was very careful of constitutional precedents—must convince the House that there does inhere in the Executive Government a power of meeting emergencies of this kind, which they are called upon to exercise upon their responsibility, however painful that responsibility may be ; and it appears to me that it will be better to leave the matter in that state, than, by attempting to allow a discretion by the act itself, to confer upon the Executive Government a dangerous power of at any time interfering with its operation. Therefore,. although I fully admit that the subject is one which may very properly be inquired into and considered by this Committee, it is not a provision which I should advise them to recommend. The course which I am prepared to adopt is this, subject to any amendments of the law which the Committee should suggest for consideration, within the limits which I have sketched—I shall, at the proper season, be prepared to introduce a bill renewing the privileges of the Bank of England for another period of ten years.

"There are also questions as to the Bank of Ireland, and the operation of the Act of 1845 in that country and in Scotland. The Bank of Ireland possesses no peculiar privileges ; all that it seeks is a renewal of its corporate character, together with the removal of a restriction imposed upon it by an act passed in the reign of George the Third, which seems to me quite unneceasail—namely, a prohibition against the lending of money upon mortgage. The Bank of England is empowered by law to advance money upon real securities, which power it exercises up to a certain limit. It is well known that loans upon real securities are not in general prudent investments for a bank. The Bank of Ireland does not wish to exercise this power to any large amount. They seek relief from a restriction to which

they are now subject; and the demand seems to me to be a reasonable one, provided that the amount which they should lend in such a manner should be limited by the act. With regard to the Scotch Banks, I have communicated with the directors of the six principal joint-stock banks in Scotland, with the view of ascertaining whether they can suggest any alterations in the law. I have not received from them any material suggestions, and do not find that the operation of the act has been complained of. "I have now called the attention of the House to what seem to me the most important questions involved in the Act of 1844, and which will require consideration from the Committee. It is of the utmost moment to the country that its currency should rest upon a sound basis. On the soundness of its currency, the trade, the industry, and the credit of the nation depend ; and no effort should be spared to maintain in their integrity such provisions of the law as secure so valuable a blessing, and so great a aource of wealth and prosperity. But there are other questions connected with this subject, which, although subordinate in their importance, yet deserve, and I hope will receive, the attentive consideration of the Committee. I allude to the arrangements subsisting between the Bank of England, in its relation of a banker, and the Government—that is to say, with regard to the deposit of the public money in the cuatody of the Bank of England, and also with regard to the management of the National Debt. The pecuniary relations subsisting between the Bank and the Government do not, like the subject of the currency, affect the interests and fortunes of trade and production. Nevertheless, within their limited sphere they are of undoubted importance. Under the late act the Bank of England now pays about 188,0001. annually to the Government for the privilege of issuing notes. I think 120,0001. is the sum fixed by the act ; in addition to which the Bank pays 60,000/. a year for stamp-duty, and another trifling item of 80001., making the total amount which it 'pays to the Government in connexion with the paper currency 188,000/. The profit derived by. the Bank of England from the currency is calculated upon different principles, and it is perhaps not very easy to decide its precise amount ; but the highest estimate that I have heard places it at about 170,0001., and the lowest at about 80,0001. The Government, therefore, receives from the Bank a larger sum than that made by the Bank in the shape of profits. In addition to the contribution in respect of the issue of notes, the Bank also receives a payment for the management of the National Debt. The scale of that payment is prescribed by act of Parliament. They are paid at the rate of 4501. per 1,000,000/. for every part of the National Debt not exceeding 400,000,000/. • 3401. per 1,000,000!. for every portion between 400,000,0001. and 600,000,0001. ; and 3001. per 1,000,000/. for all above 600,000,000/. This is the scale fixed by act of Parliament ; but it will be open to the Committee, in connexion with the general question of renewing the charter, to revise the terms upon which the privileges of the Bank shall be continued. I may also state, that I am now in communication with the Governor of the Bank of England on the subject of the pecuniary arrangements subsisting between the Government and that corporation. Upon the result of that communication it may depend whether or not the Government will deem it advisable to propose any modification in the terms of the present arrangement. If such a modification should be thought expedient, and it is likely to receive the assent of the Bank, the Government will of course bring the matter under the consideration either of the House or of the,Committee."

With regard to Joint:Stock Banks, he said, that as some of these establishments have failed disastrously, and as the procedure by which they are wound up is anything but satisfactory, it appeared to him that the subject is worthy of investigation by a Committee ; and as it would be difficult to form two Committees, he proposed both subjects should be submitted to one.

A discursive debate ensued, in which no fewer than twenty Members took part. Mr. Disesism began it by objecting to the reference of two subjects, not necessarily connected, to the Rune Committee. He was, he said, at a loss to understand what the duties of the Committee were to be, since the Government seemed to have made up its mind on all points except one of no great moment—whether the Bank of Ireland shall have permission to lend money on mortgage. The Government, no doubt, have a policy they are prepared to support : then, why not boldly submit it to the verdict of the House ? The propriety of referring the Bank Act to a Committee is questionable, and he would much prefer the matured views of the Government in the shape of a bill. Mr. Tree spoke against the Bank Act of 1844. Mr. GLYN expressed an opinion in favour of two Committees. In his remarks on the Bank Act, his main argument was directed against the limitation on the issue of notes. Mr. HENLEY and Mr. HEADLAM mainly advocated the adoption of the suggestion that there should be two Committees. Mr. MALINS put forward his views on the relation between the Bank Act and the fluctuations in the rate of discount, and contended that what the country wants is "not gold but bank-notes." Mr. Lams combated the views of Mr. Melina ; and from his point of view, "the whole question resolved itself into one of banking reserve," to maintain which the Act of 1844 had not made a sufficient provision. Mr. NEWDEGATE and Mr. SPOONER briefly championed their peculiar opinions. Sir CHARLES Woon replied to Mr. Mains and Mr. Newdegate ; defended the Bank Act of 1844; and, admitting the force of Mr. Disraeli's objection to one Committee, intimated that the point would be conceded. Mr. Muxrz described the appointment of the Committee as "one of the greatest shams ever proposed to Parliament." Mr. HLLDYARD and Mr. CAYLEY pressed on the Government the necessity of appointing a really fair Committee.

That part of the motion relating to Joint-Stock Banks being struck out, the motion was agreed to as amended.

Before the CHANCELLOR of the EXCHEQUER moved for his Bank Committee, he stated, in reply to Mr. Mims= Gemini, the course he will take as regards the Estimates. The Navy Estimates will be presented on Tuesday, the Army Estimates in the course of next week ; and on Monday; or Tuesday Sir George will state the day either for the consideration of the Estimates or for making the financial statement.

Shortly after, Mr. Wnarams expressed a hope that Mr. Disraeli would persevere in his motion, should the Chancellor of the Exchequer not make his statement before attempting to carry votes of supply. Mr. Disnams explained his position and intentions more explicitly than in the debate on the Address.

"I can assure the honourable gentleman, that it is my intention to proceed with my motion, whatever IDIEly be the course pursued by the Chancellor of the Exchequer. (Cheers.) I think that the object of that motion has been misunderstood, and that it will be seen to be quite independent of the course which her Majesty's Government may think proper to take. I observed that great agitation prevailed throughout the country in the autumn, in consequence of a grievance which was sustained under an act of Parliament. I examined into the circumstances of those allegations, and it appeared to me that it was a grievance justly complained of. All that I shall propose to do is to repeal the act of Parliament that entails this grievance. In the agitation of this-question, however, as in all agitations of this kind, very many dangerous opinions have been eircilithdWith respect to the principles of taxation with regard to this particular law; and I thought it more judicious, not only to remove the grievance, but to assert those sound and just principles on which I thought the tax ought to rest as long as it is 'permitted to remain in existence. I thought that ill attempted to remove the grievance without arresting attention to the principles of the tax, I should pursue a course which would be injurious to the public good, and should only half perform my duty. I shall endeavour, in the motion I shall make, to accomplish both these purposes. I am not about to bring forward any financial scheme myself, nor do I want to stand in the way of the financial scheme of her Majesty's Ministers. I think that the House of Commons is acting in the discharge of its first and highest duty in redressing a great grievance which has been complained of and in asserting and strengthening those principles of legislation which I think it of advantage should be maintained. Whatever estimates, therefore, may be brought forward in this House, and whatever may be their nature and amount, ways and means will, I doubt not, always be found in order to sustain the public service of the country." (Cheers.) Mr. CARDWELL said he hoped that the speech just delivered would confirm the Chancellor of the Exchequer in the good resolution he had announced, although more faintly than could have been wished. At the same time, he did not see how it was possible to go into one part of the great financial case without hearing the whole. If the House repealed the Income-tax, imposed for war purposes, without providing for all necessary expenditure, the House would be compelled either to sanction a loan or to levy taxes on articles of consumption. He submitted, that the proper course was to follow the precedents set by Sir Robert Peel in 1845 and Lord John Russell in 1848, and state the whole views of the Government before proceeding with the Estimates. Mr. MALINS thought there was some misconception of Mr. Disraeli's intentions. He was not going to ask the House to take the raising of ways and means into consideration. The people of England complain, that by the accidental wording of an act of Parliament, a war incometax seemed about to be levied for two years instead of one—

If the Chancellor of the Exchequer could satisfy the House that the next year could not be got through without the additional ninepence income-tax, he did not pledge himself to vote either for or against it : but the Government were certainly bound to forego the advantage they had gained by the accidental wording of the act, and to throw themselves upon the generosity of Parliament and of the nation.

In answer to a question from Mr. BAILLIE, the CHANCELLOR of the EXCHEQUER said that Government will propose that the House should grant payment of one-half of the extraordinary expenses of the Persian war out of the national exchequer, and the remaining half of the expense is to be borne by the East India Company. This arrangement has received the approbation of the Court of Directors.

Mr. LOwE brought in a bill for abolishing passing tolls at Dover, Whitby, Ramsgate, and Bridlington; and explained how it is proposed to provide for the debts on the harbours. Government will pay the debts of Whitby and Bridlington, and the Admiralty will take on itself the debts and liabilities of Dover. The case of Ramsgate, being more complicated, is provided for differently ; the burdens are to be shared between Ramsgate and the Government. The bill was read a first time.

Both Houses of Convocation sat yesterday, and in both there were spirited debates. In the House of Bishops, the subject was missionary exertion at home and abroad, and the desirableness of devising means for raising funds which were formerly raised by means of the Queen's letter. At the suggestion of the lishop of Exeter, the House resolved to appoint a Committee on the subject, and to request the Lower House to appoint a Committee also.

In the Lower House, the debate on the admission of the laity into Ecclesiastical Synods was resumed, and carried forward for a long time. Canon Woodgate moved, and Archdeacon Denison seconded, a motion to the effect that the question should not be entertained until "effectual means are taken to determine what constitutes a bond fide member of the Church of England." Chancellor Martin then moved the "previous question " and after still further debate, it was carried by 29 to 11. Shortly afterwards, the Archbishop of Canterbury formally adjourned both Blouses until the 26th June.

The Gazette of last night contains several items of intelligence.

The Queen has directed letters-patent to be passed under the Great Seal, appointing Charles William Fitzgerald, Esq., (commonly called Marquis of Xildare); Sir Thomas Nicholas Redington K.C.B. ; Bonamy Price, Esq., M.A. ; and James Gibson, Esq., Barrister-at-law, to be her Majesty's Commissioners for the purpose of inquiring into the progress and condition of the institutions commonly called the Queen's Colleges, at Belfast, Cork, and Galway, respectively.

The Lords Commissioners of her Majesty's Treasury have appointed the under-mentioned noblemen and gentlemen to be Trustees for the formation eta Gallery of the most eminent persons in British History—the Lord President of the Council for the time being ; the Marquis of Lansdowne, LG.; the Earl Stanhope ; the Earl of Ellesmere, KG.; Lord Eleho, M.P. ; Lord Robert Cecil, M.P. ; the Right Honourable Sidney Herbert, M.P.; the Right Honourable Thomas Babington Macaulay; the Right Honourable B. Disraeli, M.P. Sir Francis Palgrave ; Sir Charles Eastlake; William Smith, Esq. ; W. H. Carpenter, Esq. The Queen has appointed the Right Hon. Wm. Francis Cowper to be Vice-President of the Committee of Council on Education.

The English and French Governments have issued instructions for the withdrawal of their troops from Athens, the object of the occupation being now attained by the compliance of the Greek Government with our demands. A Commission, to be composed of the resident Ministers of the three protecting Powers—Russia, France' and England—has been appointed to inquire into the state of the Greek finances.—Iforning Post.

A telegraphic message from Paris, dated yesterday, says that vessels have left Toulon to bring back the French troops. A telegraphic despatch from Bagdad, December 29, states that "the Shah of Persia is in no way disposed to make the concessions demanded from him by England. He will offer a vigorous resistance, and defend himself to the last extremity. He has appealed to his subjects, and proclaimed a holy war."

A letter from St. Petersburg states that M. de Kakoschine the Russian Minister at Naples, has received orders again to call the atention of

the King to the possible consequences of persisting in the political system which he now pursues in opposition to public o_pinion, and contrary to the formally expressed wishes of the Western Powers.

The North America arrived at Liverpool yesterday, with advice from Boston to the 28d. The United States Senate had been discussing a bill granting aid to the Atlantic Telegraph Company. Mr. Pugh moved as a proviso, that no money should be paid under the authority of the act until a convention should have been concluded between the United States and Britain, whereby such portions of the British Possessions in North America as command the Western terminus of the telegraph should have been subjected to the principle of neutralization as adopted in the Central American treaty of 1860. He said he would not vote a cent until the safety and the lives of the people of the United States, porilled by the exclusive use of the line by the British Government in war-time were secured. Mr. Benjamin rebuked Mr. Pugh, and asked, if the miter was of such importance to Great Britain, was it not extraordinary that she proposed to them a full and equal participation in the control and benefit of the line, and consented to allow their Government and citizens equal privileges with herself and citizens for the more sum named ? He said, if they rejected the offer, they would never have such an opportunity again ; and he advised the Senators not always to be thinking of war, but to use all means for preserving peace. Ultimately the bill was passed.

The election of an honorary President of the Associated Societies of Edinburgh took place in the University of Edinburgh on Wednesday. The candidates were Sir John Macneill and Lord John Russell. The contest was remarkably keen ; and at the close of the poll Sir John Macneill was elected by a majority.

A public meeting is to be held on Monday evening at Exeter Hall with a view to ameliorating the condition of Dressmakers and Milliners. The meeting is jointly promoted by the "Society for the Aid and Benefit of Dressmakers and Milliners" and the "Early Closing Association."

Major Calthorpe, the "Staff-Officer," has forwarded a letter to the journals in reply to Lord Cardigan's charge against him in the House of Peers. Lord Cardigan said that the Major had admitted that two out of three allegations wore "entirely devoid of truth." Major Calthorpe denies that in the correspondence between them there is any sentence that can be tortured into an admission that any statement of his is devoid of truth. And he quotes from a notice prefixed to the second edition of his Letters from Head-quarters, several passages which establish his willingness to admit that in some instances he may have been in error. But those passages give to the facts a complexion very different from that to which they boar in the descriptions by Lord Cardigan himself. They contain admissions of error in statements of that kind called damaging to the challenger of the error. For one passage Major Calthorpe expresses regret—his version of the medical report on Lord Cardigan's health; and he subjoins a copy of the report itself

" Lord Cardigan is much reduced in strength; and the Board, considering the serious character of his complaints, recommend that he may be allowed to proceed to England for the recovery of his health."

Among the twelve Peers who voted on Tuesday evening with Lord Grey, and against the Government, was Lord Aberdeen.

The Irish journals report the death of Dr. Slatterly, the Roman Catholic Archbishop of Cashel. Ile died at Thurles on Thursday, at the advanced age of eighty.

NOTICES OF BUSINESS IN THE HOUSE OF COMMONS.

Monday, February 9. Sir GEORGE ORZY—Bill to amend the Act 16 and 17 Vie. c. 99, intituled "An Act to substitute in certain cases other Punishments in lieu of Transportation."

Bill to facilitate the establishment of Reformatory Schools in England.

Admiral BERKELEY—Bill to amend the Act for limiting the time of Service in the Royal Marine Forces. Bill for enabling the Commissioners of the Admiralty to purchase certain lands in the parish of Chatham, 8te.

Tuesday, February 10. Major REED to move, "That whereas the Act of Parliament [18 Vic. c. 20] contains a proviso of an unprecedented and unconstitutional

character, which, by its technical construction, would inflict in a time of peace s second year of full War Income-tax upon the loyal but heavily-burdened subjects of her Majesty, this House is of opinion that the provisions of the said Act should cease and determine from the 6th day of April next."

Sir STAPFOED NORTILCOTE—Bill to make better provision for the Care and Education of vagrant, destitute, and disorderly Children, and for the Extension of Industrial Schools. Viscount PALMERSTON-. Select Committee to consider so much of the Second Report of the Statute Law Commissioners as relates to the proposition therein made for the adoption of means to improve the Manner and Language of current Legislation, and, to report their opinion thereupon to the House." Thursday, February 19. Mr. Pem.arr to move, "In Committee of the whole House, That, as the Income and Property Acts of the 17th Vic. c. 10, 17th Vie. e. 24, and the 18th Vic. c. 20, were passed expressly to defray the expenses of the war with Russia, this House is of opinion, that the war having happily terminated, the said Acts be repealed, or so much of them as will reduce the income derivable therefrom from one shilling and fourpence in the pound to livepence ; such reduction to take place on the 5th day of April 1857." Mr. NAPIER—" That an humble Address be presented to her Majesty, praying that she will be graciously pleased to take into consideration, as an urgent measure of Administrative Reform, the formation of a separate and responsible Department for the affairs of Public Justice." Sir Wituras CLAY—Bill for the Abolition of Church-rates ; the Bill to be limited to total abolition of such rates, and a provision saving existing legal obligations. Monday. February 16. ATTORNEY-GESERAL for IRELAND "IO MOVE resolutions for the expulsion of Mr. James Sadleir from the House." Tuesday, February 17. Mr. Roznece—" Select Committee to Inquire into the existing system of Secondary Punishments, with a view to ascertain whether It may be for the public security to reintroduce the Transportation of Convicts." Captain Sconett—Select Committee "to inquire into the Naval Administration, relating to the lists of Officers, the Patronage, the Promotions, and the Retirements5 and the efficiency of the Service in all its grades."

Mr. Mertz—Resolutions for Equalizing the Property-tax. Sir Jour Partition:or—Bill for the promotion of Elementary Education in Cities and Corporate Towns.

Mr. OLIVEIRA—Select Committee to inquire into the practicability of reducing the Only on Wines. Mr. Locirx Knee—Bill to make the County Franchise the same as in Boroughs. Mr. Dement—To propose resolutions on the Property and Income Tax, Thursday, February 19. Mr. SPOOXER—" That this House do resolve itself into a Committee for the purpose:of considering the Acts for the Endowment of the College of Maynooth, with a view to the withdrawal of any endowment out of the Consolidated Fund, due regard being had to vested rights or interests."