The Press. — London, England, 1857-12-05 00:00:00

advances of capital, as lest they should not be 1 able to obtain them at any rate of interest' from a deficiency of the medium of exchange. Here, however, a most important question arises. Whence does this dreaded deficiency arise? Is it from the demand for an expansion in the medium of exchange much beyond its average limits at these times of pressure, or from the fear of its contraction much within the average limits? We reply without hesitation, from the latter cause. The need for greater " fic " commodation" than usual among the mercan tile classesat large does not mean any need for a greater circulating medium than usual. With an unchanged amount of business transactions there can be no addition—nor yet any need for addition—to the mere exchange-medium of the country. Nor is there any such need for an extended exchange-medium, in point of fact * When a merchant asks for and gains accommodation—that is, when he gets a loan on adequate security, or gets a bill of exchange discounted —he either needs the money for im mediate use, or he does not need it immedi ately, and has only obtained it as a precaution. Let us take each case individually. In the first case, when be does need it for immediate use, he needs it either for payments in this coun try, or as bullion to send abroad If wanted for payments in this country, it will return to some bark, and ultimately to the Bank of England (where all other bankers keep the bulk of their reserves) in the shape of deposits from the persons into whose hands it has now flowed. Unless the transactions of the country have increased, no larger amount of circu lating medium can be made use of. It is not wanted, and returns immediately into the credit-account of the owner at his bank, passing thence to the Bank of England. On this point the evidence of the best authotities is most explicit. In his evidence before the Banking Committee of last session, Mr. WEGUELIN, one of the highest authorities on sucka point, is asked (question 654) : No person has any inducement to retain a larger amount of circulation, whether it ha metallic or whether it be paper, than is actually necessary for the purposes for which circulation is required ?—A. Certainly not. And again (question 746) : Then I understand you to say that whether as regards the Bank of England or as rewards country issuers, the amount of their circulation frotu time to time is not de termined by the will of the one or the other, but by the wants of the public from time to time'—A. Certainly. It seems clear, then, that any special accom modation given to a merchant for immediate use in the country cannot go to increase the active circulating medium in the country, unless the transactions and trade in the coup• try have increased so as to need it. It returns through other hands to the Bank, whence it came. But if, on the other hand, the mer chant need the advance for export as bullion, then i►t is clear it is not wanted to increase the circulating medium of the country, as it is wanted to go out of the country. The demand was not for inure circulating medium, but for a special kind of capital suitable for export. The want, then, cannot be caused by any scarcity of the exchange medium at these times of pressure—fur notes or mere currency would have been of no possible use—but by the state of the exchanges, which make it more profitable to export gold than any other sort of capital. It diminishes the Bank's reserve of bullion, but adds nothing to the amount of circulating medium. Again, if the person accommodated does not want the advances he gets for immediate use, • This is remarkably shown by comparing the circula tion of any year of large business transactions, such as 1444 or 1452, with the present critical period. The circu lation is seen at a glance to be much larger, simply be cause more transactions are effected. 1 , ;52 Notes held by the public. 1657 Notes held by the public. Oct. 2 1:22,214,000 Sep. 30 ;219,931,234 9 22,242,000 Oct. Y 20,824,714 10 23,660,000 14 .. 23 .. 23,160,000 21 21,0.52,315 30 23,813,000 24 20,58.5,707 Nov. 6 23,351,000 Nov. 4 .. 21,079,942 13 23,202,000 11 21.036,430 It is quite clear, however, that in the last crisis of a panic there is an extra demand fur gold and notes. Thus the circulation, including Bank post bills, was 22,235,9541. at the highest point in this panic. This is not file, how ever, to any demani for circulating medium, but to the dread of a " run" in the country banks. . . THE PRESS, DECEMBER 5,1857. but only as a precaution, it is still more clear that there is no fresh or special demand for exchange•medium. In that case all that hap pens is as follows : the merchant gives his security; the Bank advances money thereon, which the merchant places as a " Deposit," to be drawn out if he should need it, in the Bank's care. The result is that the Bank has as much circulating medium at command as ever, only having undertaken to advance a cer tain sum to the depositor on demand in return for the security it holds. What did stand as the Bank's capital now stands as a deposit, but is still at the Bank's disposal. Should it be drawn out, however, by the depositor, we have seen that it does not add to the circula tion of the country, but either goes abroad as bullion or returns through other hands to the deposits again. A crisis of this kind, then, does not cause or tend to cause any demand or need for the expansion of the circulating medium; but it may cause, or tend to cause, a fear of its undue contraction. Until the rate of discount is so high that it is more profitable to export any other kind of capital than gold, the demand for gold for export may and will seriously diminish the bullion in the coffers of the Bank. This was the case in the present crisis. Gold went to America every week, and the bullion reserve in the Bank diminished rapidly. Now, as the ordinary note circulation needed for the country's trade over and above the coin and country issues is at least 20,000,0001. at this time of year, and as the Act of 1844 requires all issues of notes above the 14,500,0001. issued on Government securities to be backed by bullion in the vaults of the Bank, it is obvious that as soon as this bullion rtserve dwindles to near 6,000,000/ there must be a general dread that the note circulation may need to be con tracted considerably within 20,000,0001—h0w much within no one can know. It was, therefore, a ,read of the extraordinary contraction of the note-circulation within the sum needed for the regular exchanges of internal trade—not, as is falsely assumed, any need for its ex traordinary expansion at such a time—that caused a panic. The need of circulating medium at these crises does not increase—in deed, if it change at all, the depression of business contracts it. But the dwindling of the bullion reserve threatens a.sudden and forcible contraction of the ordinary circulation, incompliance with the Act. If, fur instance, the bullion should ever quite disappear at any time, the country would have to effect exchanges with 14,500,0001. for which it really needs 20,000,0001. ; and it is the fear of this shock. not the imaginary need for a" great circulation of bank-notes," that causes panic as the bullion decreases. THE JESUITS AT DUBLIN. THE discovery that the Jesuits have obtained the religious " direction " of the metropolitan police at Dublin has startled several persons ; and we are not surprised that much discussion should be caused by it. There are some cir cumstances connected with the police in rela tion to the Jesuits that must not be over• looked. There is a large detective force attached to the Dublin police. This body works secretly ; occasionally its members assume various disguises, and mix in various kinds of society. They have necessarily a vast stock of social knowledge, and of secrets about individuals. The existence of such an inquisitorial body has been tolerated hitherto on the ground of its utility in aiding the ends of justice; but the religious " direction " of such a body placed in the hands of Jes uits is a most formidable and dangerous weapon ; and we have no doubt that the Protestant public of the United Kingdom will offer strong and unqualified resistance to such an artful stroke fur increasing the power of the Jesuits in Ireland. There are some highly significant and most suspicious facts about this new move. Dublin 1171 is a large city, and the metropolitan police are scattered over a large space. The church of the Jesuits is in Upper Gardiner-street, at the north end of the city. In point of locality it is a most inconvenient place for the police to pay their devotions. Is it not strange that the police should repair to this particular spot for the purpose of confessing themselves to the Jesuits ? In order to do so they must traverse considerable distances, and put themselves to great trouble. But it is equally strange that the police should thus have placed themselves under the Jesuits, as if, forsooth, the ordinary parochial clergy of the Roman Catholic church at Dublin were not adequate to the task of confessing policemen, and exhorting them on their religious duties It cannot be forgotten that it is their secret influence, by their intermeddling in families, by their depth of personal knowledge of a certain kind, that the Jesuits have obtained their sway; and they have always worked steadily and perseveringly by means of the confessional. It is notorious that they pro nounce the words of absolution in far easier terms than the parochial clergy of their Church. They sooth and lull consciences after a fashion that has made them dreaded even in their own religious communion They profess themsel•"es to be the detective police of the Church of Rome. That is their mission. They have scholars and preachers to dazzle general society, and to distract attention front their furtive and carefully masked proceed ings. They do not perform ordinary parochial duties ; they do not visit the sick poor, nor do they preach to the illiterate masses like the Friars, Dominicans, and Benedictines of Roman Catholic countries. To rule minds, to control great leading agencies, to wield organised bodies, such is their practical ambi tion. Hence in this point of view it is a grand stroke for the Jesuits to obtain the " direc tion," that is, the auricular confession, of the police. It ought not to be overlooked that the Jesuits, though aiming at religious ends, are essentially a political society. They move to and fro between various lands—they have no fixed abode ; and as the Roman Catholic Church existed for ages before them, so it would outlast their permanent overthrow. It cannot be pretended by Roman Catholic par tisans that the Jesuits are a necessary part of their Church, and that the police have a posi tive right to choose their religious instructors. We admit at once that the police have a right to go to confession as often as they please to the parochial clergy in whose districts they reside. We would not throw the slightest obstacle in the way of the Roman Catholic police, or any other body of Christians, dis charging their religious duties at proper tunes and seasons. But the Jesuits form, for manifold causes, a most decided exception to the general rule. We say it is not right that the Jesuits should be armed with such power as the confessions of the police body, in cluding the detectives, must place in their hands. Judging of their conduct in other countries, we fear that their power would be flagrantly abused. We cannot be taunted with " bigotry " or " narrowness" when we acknow ledge that our opinions with respect to the Jesuits generally are those of PASCAL, one of the most illustrious names in the history of the Roman Catholic Church. By the religious " direction " of the police being committed to the Jesuits. not only Dublin, but other parts of Ireland (and even England) will be subjected to a double detec tive force, one belonging to Queen VICTORIA, and another to the Pope. After some police men have been thoroughly disciplined by the Jesuits at Dublin, nothing would be easier than to get these trained " penitents " changed to other localities in the empire, on some plan• sible pretext, but still retaining a connection with the Jesuits. The thing has been prac tised a hundred times over on the Continent. Is it right that the dearest interests of society, not to dwell on the dangers to religion, should be exposed to such peril? Wo certainly %