The n.o.ble Lord tells you that, heretofore, a farmer, with a good stock, was able to borrow capital to carry on his business; but that now, let his corn-yard be ever so full, he cannot borrow a shilling, because the banker has not the power of giving him one-pound notes. The n.o.ble Lord says--the banker gets no interest upon his own capital, and therefore will not lend it. My Lords, the banker who lends his capital to a farmer, or trader, does obtain interest for the use of it, in the shape of discount upon the bill, or other security, which the borrower gives him. The question with him, at present, is one of security, and not of profit. If the banker should lend, under existing circ.u.mstances, he must lend his own real capital, and not a fict.i.tious capital in the shape of one pound notes, created for the purpose. He must be certain that the security given to him is good and available, as it ought to be; and if he is not satisfied with the profits arising from the use of his capital, it is because he thinks the risk is so great as not to be covered by the profits. The n.o.ble Lord would wish to pledge your Lordships, by your votes this night, to give the country bankers additional profits, by enabling them to coin money, or to create fict.i.tious paper to any extent, and thus to create a fict.i.tious capital.

_February 4, 1830._

_Taxes reduced under a Metallic Currency._

In answer to all the declamations we have heard this night respecting the evils resulting from a metallic currency, I beg leave to remind the House of some facts; since the year 1815, and princ.i.p.ally since the Bank restriction was taken off, measures have been adopted to relieve the country of taxes to the amount of 27,000,000 l. sterling; and measures have been also adopted which have reduced the charges of the national debt between 3,000,000 l. and 4,000,000 l. a year, that being the interest on nearly 100,000,000 l. sterling. I beg your Lordships will bear this circ.u.mstance in mind; and let me tell you, that all the advantages of a so-called equitable adjustment will never equal the advantage already obtained from an adherence to the principles of justice and good faith.

_February 4, 1830._

_Causes of Manufacturing Distress._

I wish to know whether the compet.i.tion of machinery and the universal application of steam which has been generally introduced since the peace, have not occasioned a decrease in the demand for labour, and have not lowered the wages of labour in manufactures? Must we not take into consideration the general spirit of manufacture abroad, the compet.i.tion of foreign nations in foreign markets, and the universal use of machinery worked by steam? How can we control the subjects of foreign powers? We must seek foreign markets for our surplus produce. How can we prevent steam from creating compet.i.tion abroad in the sale of that produce, as well as a fall in the wages of manufactures, and thus occasioning a part of the distress complained of?

_Feb. 4, 1830._

_Distress exaggerated._

If the exports of Great Britain have gone on increasing for some years--if they were greater last year than in any former year--if the amount of our exports is now greater than ever it was,--I say, not only that these are the strongest symptoms of the prosperity of the country increasing, but that the distress cannot be so great and unexampled as the n.o.ble Earl (Carnarvon) would make it. There is not a rail-road, or a common road, or a ca.n.a.l in the country, on which the traffic has not increased every year during the last few years, and particularly in the last year. It may be true that there is a diminution of profit in commercial transactions in general; but profit there must be, or men would not devote themselves for years to these pursuits. Money would not be laid out in the conveyance from place to place of the produce and manufactures of the country. The traffic being greater than ever it was before, it is impossible but what it must be to the advantage of somebody. The distress then cannot be so universal as represented. The profit and advantage may not be so great as they were some years back; but still advantage there is.

There are other circ.u.mstances well worthy the attention of the House in the consideration of this subject. The retail dealers are a very numerous body in this country. Consider of their profits. Look at nearly every market town in the kingdom, and many villages in progress towards being rebuilt. Who pays the money for re-building these houses? Who pays the increased rents for them? Are the people ruined who require and can pay for these new houses? My Lords, these are facts which do shew that, notwithstanding the existing distress which every man must deplore, the country, in spite of the pressure upon it, is upon the whole, rising.

_Feb. 4, 1830._

_Proofs of National Improvement in 1830._

Among other topics of accusation, I have been arraigned for my a.s.sertion on the first day of the session, that the distress of the country was not of that magnitude which some persons have affirmed. The n.o.ble Lord (Stanhope) is quite at liberty to indulge in such invectives if it pleases him to do so, but if he supposes I do not feel for the distresses of the people, he is utterly mistaken, as I can sincerely aver that I have as strong sympathies on the subject as any n.o.ble member of this house. But I am resolved to tell plainly and honestly what I think, quite regardless of the odium I may incur from those whose prejudices my candour and sincerity may offend. I am here to speak the truth and not to flatter the prejudices and prepossessions of any man.

In speaking the truth, I shall utter it in the language that truth itself most naturally suggests.

I request your Lordships to look at the state of the savings banks. A measure was sometime back adopted to prevent the investment of money in these banks beyond a certain amount for each person, in order that the parties not ent.i.tled to it should not derive the advantage which is intended for the poorer cla.s.ses. Large sums were drawn out of those banks soon after; but they have since revived in some degree. Whence has the money come? From the lower cla.s.ses. This cannot be considered as a proof of general distress. Your Lordships ought likewise not to omit from your consideration the increased traffic carried on the railroads and ca.n.a.ls in the country. The n.o.ble Earl (Roseberry) has told your Lordships, that I have availed myself of the increased traffic upon the roads and ca.n.a.ls by merchants and manufacturers--in despair seeking a market--in order to represent the country in a state of prosperity; whereas it is an additional symptom of distress. My Lords, I said that this traffic had been increasing for years; and that it had, in some cases, doubled in ten years. In one of the recent discussions in this House, upon the currency, the n.o.ble Marquis opposite (the Marquis of Lansdowne) very truly remarked,--that a large quant.i.ty of currency might be found in a country in which there should be little riches and prosperity; and that the facility and rapidity of the circulation of the currency were signs of the prosperity of a country, rather than the quant.i.ty of that currency. I entirely concur in the truth and justice of this observation. But I would beg to ask the n.o.ble Marquis whether it is possible that transactions can increase and multiply as they have done in this country, in the last few years, without giving fresh scope for the circulation of the currency of the country, fresh employment for labour, and occasioning, in some degree, the augmentation of general prosperity.

_Feb. 25, 1850._

_Causes of Manufacturing Distress, over which Parliament can have no Control._

There can be no doubt that there has been, of late years, a great increase of manufactures and manufactured produce in this country. It is true, that this produce has given to the manufacturer but little profit, and that the wages of the manufacturing labourer are low; but, as I will show presently, the circ.u.mstance, equally with the cause of the agricultural distress, is beyond legislative control.

My Lords, it is impossible to consider this branch of the subject without adverting likewise to the state of the commerce of the country.

The produce of the manufactures of the country is greater than the country can consume; and, consequently, the price and the reward of the labourer must depend upon the foreign demand, as well as upon the demand at home.

In respect to the distress felt by manufacturing labourers, there can be no doubt that the wages of manual labour have been lowered by the successful application of steam to the movement of machinery for the purpose of manufacture. Here, my Lords, is a cause of distress over which the Legislature has no practical control. As I go further in my observations upon the speech of the n.o.ble Earl (Stanhope) who made the motion,[12] I will point out other causes of distress equally beyond the control of the Legislature.

[Footnote 12: For an inquiry into the state of the nation.]

My Lords, let me beg to call to the recollection of the House the state in which the world was at the end of the war in the years 1814 and 1815.

Europe was absolutely overrun with armies, and had been so for about twenty years. There was absolutely nothing but armies in the world, and nothing was thought of but the means of sustaining them. Except in France and this country, there were but few manufacturers in Europe; but when the peace took place, all the world became manufacturers. I have already stated, that the country manufacturing more than it consumes, is under the necessity of resorting to foreign countries, and foreign markets with its produce, where this produce necessarily comes in compet.i.tion with the manufactured produce of foreign countries, brought there by cheaper labour, and by machinery worked by steam. The prices in those foreign countries, of necessity, govern the prices in this country. Here again is a cause of the existing distress, over which it will be admitted, that the Legislature can have no control. Nothing that it is in our power to do, will raise prices abroad; and till these prices shall be raised, the prices of our produce must continue low, and profits and wages must be low likewise.

But, my Lords, low as the prices of our produce are, compared with those of former years, those of other countries have fallen in a still greater proportion. My Lords, I will read, from a paper I hold in my hand, a few extracts of prices in different parts of the country, since the peace of 1814. Raw cotton in England, in 1814 and 1815, sold at 2s. 2d. the pound, or with duty included at 2s. 4d. In 1816 and 1817 it sold at 1s.

8d1/2., and in 1829, at 6d. This was a fall in price greater than had taken place in any other article. Silk, in 1814, sold for 1l. 4s., or with duty included, 1l. 9s.; whilst in 1829 it sold for 8s. 10d., or with the duty, 8s. 11d. the pound. Spanish wool, in 1814, sold for 8s.

2d., or with the duty, at 8s. 3d.; whilst in 1829 it sold for only 2s.

3d., or with the duty at 2s. 4d. Another article, that of fir-timber, fell in proportion. It was then 3l. 14s. 11d. the load, and with the duty, 10l. 5s.; it is now 2l. 5s., and with the duty, 4l. 19s. This fall in the price of foreign produce, and in our domestic manufactures, added to the advantage which the master manufacturers derived from the use of machinery moved by steam, and from the lowness of wages, have given them a greater advantage; and have enabled them to make a profit, notwithstanding the fall of prices of the produce of their manufactures since the war.

On articles of manufacture the prices are still lower than those of corn and other agricultural produce. Cotton yarn, which sold for 4s. 4-1/2d.

the pound in 1814, in 1830 sells for 1s. 5-1/2d.; and cotton manufactured goods have altered in price within the same period from 1s.

5d. to 1s. 8d. and 2s. 0-1/2d., to 6-1/4d., 8-3/4d., and 8-1/2d., or nearly a third. Irish linens have fallen from 1s. 7d. to 1s. 0-3/4d.; woollen cloths in the same proportion. Other articles have been reduced enormously in price by the compet.i.tion with foreigners. In those articles in which there is no compet.i.tion with foreigners, prices have been reduced, but not in the same proportion; such, for instance, as in the iron, the pottery, and other trades. Here, then, are causes evidently beyond the control of Parliament. Parliament cannot raise the price of manufactured goods--the thing is impossible.

_February 25, 1830._

_Principle of Reduction in the Public Service._

When offices become vacant, the Government always consider whether the public service could not go on without their being filled up; the next point is, to consider whether the place could not be filled up by some persons who already receive half-pay or pensions, so that the half-pay or pension might be saved to the public. We have tried to reduce the list of pensions of the army and navy, by keeping men in the service the full time they ought to serve, according to the original inst.i.tutions of the army. I should deceive the House by saying that savings could be beneficial if made at the expense of individuals who must be thrown on the public as soon as they were made.

_February 23, 1830._

_The Corn Law of 1828 worked well._

The measure of 1828 has worked well to promote the objects which the Legislature had in view in pa.s.sing it, by preventing the price of corn from rising so high in a season of scarcity as to be injurious to the country at large, and particularly to that part of the population engaged in manufacture; whilst, both in that season and the season which followed, the price has been sufficient to give the agriculturist a fair value for his commodity. In the second year of the existence of that law, a greater import of corn took place than ever, to the extent of 5,000,000 of quarters, of which 2,500,000 were from Ireland, and the prices have not been lowered in this country, beyond what is deemed a remunerating price to the agriculturists. With reference to another branch of Agriculture, I have means of proving that the prices received for other articles of agricultural produce, such as meat, timber, &c.

are equal to what they were in times when the country paid a very large amount of taxes, and the Bank Restriction Act was in force.

_Feb. 26, 1830._

I am convinced the corn laws cannot be repealed without injury to the country.

_Feb. 25, 1830._

_Establishments necessary to maintain the National Honour._