Extended Currency means unlimited creation of Paper Money by Individuals.

I will now say a few words upon the remedy proposed by the noble Lord (the Earl of Carnarvon), who has totally misunderstood the argument of the noble Viscount (Goderich).  My noble Friend stated that the revenue, in 1815, was 80,000,000 l. sterling, in paper currency; that taxes were first of all repealed to the amount of 18,000,000 l., and afterwards to the amount of 9,000,000 l., making in all 27,000.000 l.; and he says that the revenue now produces, in a sound currency, as great an amount as it produced in a depreciated currency; that is to say, that it produces now a sum, in sound currency, which, in paper currency, would amount to 80,000,000 l. sterling.  Those persons who consume the articles which produce the revenue, must be able to purchase them, or the revenue could not exist.  The increase of the revenue is a proof, then, that consumption has increased full one-third since the time when the taxes were reduced.  It is utterly impossible that a country in which, within a period of fifteen years, the revenue has risen one-third, can be suffering universal and unexampled distress.  The noble Lord has thought proper to refer the distress to a deficient circulation, and he recommends a system which he thinks would remedy the evil.  Now, I will tell the noble Earl that the largest amount of currency in circulation, at any time during the Bank Restriction Act, was 65,000,000 l. sterling.  The Bank of England notes were 20,000,000 l.; country bank paper, 23,000,000 l.; gold, 4,000,000 l.; and, silver, 7,000,000 l.  But, in 1830, the amount of Bank of England paper in circulation is 19,900,000 l.; and, of country bank paper, 9,200,000 l.; of gold, 28,000,000 l.; and, of silver. 8,000,000 l.; making a total of 65,000,000 l.  It is certain, therefore, that there is more money in circulation now, than there was at any period of the Bank restriction.  There can be no want, therefore, of more currency.  The noble Earl says he wants an extended currency; but what he, in fact, wants, is not an extended currency, but an unlimited currency.  He would give an unlimited power to certain individuals, not to the Crown, to coin as much money as they please.  The noble Lord wants to give them the power of lending capital to whomsoever they might think proper thus to indulge.  That is what the noble Lord recommends, but that is what, I say, cannot be allowed, without bringing the country again to the brink of ruin, from which it was extricated in the year 1826.

The noble 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 noble Lord says—­the banker gets no interest upon his own capital, and therefore will not lend it.  My Lords, the banker who lends