The Press. — London, England, 1856-10-04 00:00:00

OCTOBER 4, 1856. were unanimous, this would not be the case; but then; u I have urged before, no law would be needed. I quite ad mit that a great deal of the existing habit is the result of temptation. The labourer has in general no club, no place of social enjoyment except the public-house, which he cannot enter without asking for liquor, though his chief inducement to go there may be the love of good com pany, rather than of drink. This is an evil ; but it is an evil which society can remedy without the help of the law. Already in many places working-men's clubs have been, formed, where the labourer may enjoy a good fire, society newspapers, his cup of coffee, &c., on payment of a small annual or monthly subscription. Such institutions are .the most practical means of promoting temperance, and deserve all possible encouragement. 4. T have spoken of the necessity of raising 20,000,0001. additional by direct taxation as a serious objection to the immediate and total suppression of the liquor traffic. I readily concede that the community, and, in the end, the revenue, would gain by the saving of the fifty, sixty, or seventy millions now spent in drink; but this saving, even if effected, would not prevent a serious deficiency, which would extend over several years. There would be a redaction in poor rates, police, and prison expenses. together with an increase in the consumption of tea and sugar ; but all these together would not make up the deficiency, and a severe temporary pressure must at least • is 5 and 6. I have nothing to add to my former observa t•ons under these heads. 7. Great discrepancies of opinion prevail with regard to Ire Maine Law in America. This, at least, is certain— that in a country where population is so scattered, and the Executive so weak as in the United States, the en forcing of the law, if it be enforced, must depend wholly on the support afforded it by the people ; that is to say, if operative, it is operative because it represents the public will, not because it is the law of the land. But in that case the popular will would have been equally effec tive without the agency of law, which is the proposition I am endeavouring to defend. S. " Moral force is not enough for the world as it is." Not enough! The writer means to put down moral evil. Do the supporters of a Maine Law forget that this, their maxim, might be fitly inscribed on the doors of the Inqui sition ? They regard intemperance (very justly) as s social evil. Earnest Roman Catholics regard heresy as a social aril. They are prepared to snppress intemperance. The governments of Italy are equally prepared (if the feelings of the nations allowed them) forcibly to suppress heresy. Where is the difference ? Unless the functions of the State 1w strictly limited and defined—unless the legal rule rolenli non fit injuria be carried out consistently to its logical results—unless the prevention of violence and the administration of justice be acknowledged as the sole legitimate objects of internal administration—l see no security against an indefinite continuance of the bitterest and most degrading contests under which the human race has ever suffered—the contests of sect against sect for religions supremacy, where the possession of such supre macy confers the right of persecuting the vanquished party. The writer's argument is, " Because this or that praztice is wrong, and because moral force is not sufficient to put it down, therefore the State should do so." Wrong in whose judgment? In that of the majority. But taking the existing state of opinion throughout the British islands, it is probable that a majority of their inhabitants regard habitual absence from public worship as morally wrong. Nevertheless it is certain that a large minority of our peo ple do thus habitually absent themselves from public wor ship. Moral force has not succeeded in this instance. Are you prepared to try the effect of penal legislation, and, as in early ages, to make church-going compulsory ? To draw a distinction between the cases is impossible. For though all rational men condemn intemperance, yet total abstinence is not regarded as a duty by more than a small portion of the people, while attendance on religious rites is regarded as a duty by the majority of all classes. If, therefore, you seek to enforce by law a practice which only a few, comparatively speaking, consider binding upon them, how can you evade the duty of similarly enforcing a practice which most persons consider binding upon them? It may be argued that to in►erfere is expedient in one case and inexpedient in the other. I deny the expe diency in either; but be that as it may, I am not prepared to hold my personal freedom of action on so uncertain a tenure as this—that society, on the whole, thinks it more advisable not to coerce me. The principle of individual independence, of personal liberty of action, permitted wherever it does not come into collison with the personal liberty of others, is at once the result and the guarantee of modern civilisation. Encroach upon it, under whatever idea of benefiting mankind, and you will find that com• pnlsion has produced resistance—that the best feelings of men are enlisted in support of their worst vices—that in temperance has gained defenders in those who would otherwise have been foremost to denounce it—and that you will have given to bigotry, political and religious, a prece dent of which it will not be slow to avail itself. gloatil glarktt anb jit ntelligtnte. FRIDAY ERNING : Tint return of the Bank of England for the week ending the 27th ult. sh ows th e f o ll ow i ng c h anges com par e d with that for the week preceding Increase in Circulation .. Increase in Public Deposits Decrease in Other Deposits Increase in Securities 1,324 R 27 Decrease in Bullion .. Increase in Rest Decrease in Reserve Bullion iu Both Departments Circulation, including Rank Post Bills THE PRESS. This comparison, like those for some weeks put, affords strong evidence of the active demand for money last week. The Private Securities, which sugmenled last week no less than 1,367,2781., now show a further increase of 1,324,827 E., and they amount to the considerable aggregate of 19,616,3841., or within 800,0001. of the amount at which they stood in the corresponding week last year. To supply this enormous demand the Bank has again lent out every shilling of the deposits received on the public account, and made one of the largest dips into the Reserve that have occurred within the last twelve months. Of course as the time approaches when the October Dividends will be disbursed, a considerable balance of these securities will run off. It is remarkable that for some weeks past the Bank has not resorted to the sale of its stock in order to obtain means to meet the demands upon it ; but to-day some sales were effected, from which we infer that the Reserve, by the demands of the current week, was in danger of becoming inconveniently low. The falling off in the Bullion is considerable. The whole stock is now only 11,769,•3721., and we know that it has been diminished largely since the present return was mad e up. On the whole, this comparison shows the present return to be by far the most unfavorable since the end of June, when the rate of discount was reduced to four and a half per cent, and that the time had arrived for the adoption of some re strictive measure. The principal event of the week has been the advance made in the rate of discount by the Bank of England from four and a half to five per cent. This policy has met with general approval under present circumstances, though the trade of the country and the position of the Bank itself, if they alone were to be regarded, would scarcely justify such a measure. It has been the direct consequence of the Bank of France having advanced its rates from five to six per cent. The value of loanable capital was from one to two per cent. higher upon the Continent before the change was made, a rate of profit that was attracting very large sums to Paris and Hamburg to be lent to the banks at five per cent. It is estimated that one eminent house alone was the means of absorbing fully 2,000,000/. out of this market to be turned to increased profit in this way. At the same time the bullion in the Bank had been since Satur day undergoing a diminution at the rate of from 40,0001. to 50,0001. per diem, most of which was applied in payment for previous purchases of continental silver. Such was the state of things, as far as regards the Continent, when the Com mittee of Treasury of the Bank Directors met on Wed nesday, and ordered the rate to be advanced. But on that day there was another element to be considered The Increased rates of interest charged all over Europe, with the view of protecting themselves against the whole sale absorption of silver by the Indian, China, and Russian demand, had produced a strong conviction here, especially since Saturday, that the Bank of England, in order to in tercept the drain of bullion sure to arise in consequence, would also be obliged to advance its rates. The only question was as to the amount. Some thought it would be only per cent., while others were under the im pression that it would be raised one per cent. at once ; inasmuch as by such a course the previous relative con dition of the several banks would, in some degree, be pre served. This state of opinion produced the second element in the case, in the shape of an extraordi narily active demand upon the Bank for advances and discounts from all its best customers, who, naturally enough, desired to supply themselves with ample reserves of money against the 4th, when the mass of commercial acceptances fall due, while it could be had at four and a half per cent., before five, or possibly five and a half, were charged. The amount of these applica tions was almost fabulous. On Tuesday alone they were more than 1,000,0001. The houses that discount with the Bank, and re-lend the money to the public, would at such a time, if matters had been allowed to take the ordinary course, have realised enormous profits, without risk or trouble, at the expense of the Bank and the public. But their objects were, to a great extent, de feated by the resolution by which the change was made on Wednesday. Still these establishments had, as it were, three or four days clear run at the Bank ; and there is no doubt that they obtained from it, before the rate was raised, larger discounts than they really required, conse quently the result to them, in the way of profits, now that the rates in Lombard-street are about five and a half per cent., or 4 above the Bank minimum, though not all they expected, cannot but be satisfactory. But a new mode of action has, by the circumstances of this week, been suggested to the Bank, and, indeed, become a precedent and a principle, by which it will more immediately exer cise its power of controlling the Money Market. It is that in future changes in the rates charged for advances and discounts may be made any day that they may be found necessary without waiting for the meeting of the weekly court on Thursday, or that of the Committee of Treasury on Wednesday. Such a practice would assimilate the business of the Bank in this important department to that of the private discount and banking establishments; but, on the other hand, it world practically vest the great power which it implies in the hands of the Governor and Deputy-Governor of the Bank. Indeed, they possess this power already, though it has never yet been exercised that we remember. That it will be exercised hereafter in cue of need is now highly probable, of course subject to con firmation. The weekly court yesterday confirmed the resolution of the Committee of Treasury. It was, indeed, partially expected that they would direct an advance to five and a half per cent., but they made no alteration, owing to a fall in the exchange at Shanghai enough to check to some extent the export of silver from this country to China. But, as gold is going out much faster than it is coming in—though large supplies are due—it would be well to he prepared for a five and a half per cent. rate in the forthcoming week. Money was in rather less demand yesterday than in the previous part of the week, but there was more inquiry to day, particularly in Lombard-street. The rates average there five and a half per cent., and they are giving four and three quarters for money left on call. The specie imports daring the week, including some arrivals to-day, amount to 599,6431. About 32.0,0001. have been sent direct to the Continent, indepen dently of the supplies sent from the Bank, which there is good reason to believe are not much short of 200,0001. Large amounts are, however, due from Australia. The export of silver to India and China by the packet leaving Southampton to-morrow was, ten days ago, estimated at 1,250,000/. The scarcity upon the Continent, and the high value of it there, have, however, produced a demand in this country promising more profit than can be made by sending it to India and China, especially u the ex changes now stand ; and, consequently, this estimate proves to have been considerable in excess of the actual export. It amounts to 778,7631. The following table shows the several amounts of silver and gold, and their respective destinations by this mail:— Alexandria Bombay Ceylon Madras Calcutta Penang Singapore Hong Kong Canton Shanghai GOLD. .. £l,OOO .. • • 1,393 • • .821 600 Sx Lys it. tio,sao 106,150 11,190 50,540 159,807 59,771 358,042 Total Gold .. £3,719 Total Silver £775,050 Add Gold 3,713 Total Export • • • • £778,763 The whole sum taken out by the last packet amounted to 835,2031., of which 808,5701. was in silver ; consequently by the present departure less gold is now leaving these shores by 23,0191., and less silver by 33,5201. The com parative aggregates taken to China are : Barri:miss 4. .6202,701 30,662 .. Hong Kong .. Canton • • Shanghai .. 249,371 Ocrom 4. 1359,807 58,771 358,042 £442,734 Deduct .. £576,620 4R2,734 Increase in October .. 493,886 English Securities, owing to the circumstances which have influenced the Money Market, have undergone considerable fluctuations during the week, any occasional tendency towards high prices being counteracted very speedily by depressing anticipations. The market, there fore, has been difficult " to read," and its disposition to oscillate has been the cause of the absence of business. There has, however, been a good deal of money selling, as might be expected, from the interest which could be obtained by the temporary employment of capital else where. The closing prices of Consols last Fnday was 93f to for the October account, and they have been as low as 92. The range of fluctuation has, therefore, been nearly one and a half per cent. during the week. Last night they closed at 921 to j, prices having decidedly im proved yesterday upon the Bank deciding that for the present discounts shall remain at five per cent. This morning the opening price was 93 to it, and soon after wards they improved to 93* to I; but in the afternoon there was a reaction, and eventually they left off at 9'.4 to 1, which was the closing price last night. After regular hours they declined to 921 to f, closing flat. The fluctua tions of the day were rather considerable. Opening at nearly one-half per cent. higher than last night, they left off one-eighth lower. This unfavorable turn was attributed to anticipations of a bad Bank return. The better prices of the morning arose from an advance of one and a half per cent. in the French Three per Cents. upon the Paris Bourse yesterday ; and the reason these better prices were not maintained was a reaction on the Paris Bourse today to the extent of one per cent. An advance of one and a half per eent. in the Rentes under present circumstances would be significant of imororing prospects. There is, therefore, no wonder that it caused a temporary sensation in our market. These changes arose, we are told, from a report upon the Bourse that the financial position of the French Government was so strong as to enable it not only to carry on next year with its ordinary income, without having recourse to loans, but that its present means were sufficient to justify it in postponing the payment of the loan instalments now just due until January next. The Moniteur's silence on these subjects this morning naturally threw doubt upon both these anticipations, hence the fall. _ _ _ . Exchequer Bills have declined sa. since our last, owing to the urgent demand for money. The present premium is 7s. to 11s. _ Foreign Securities are, upon the whole, lower than this day week ; but there are no features about this market that call for special notice except to say that it remains as dull as ever. Railways have been variously affected by the vicissi tudes of the general market. There is no great change from last week, although the fluctuations in the shares principally dealt in have been equal to those in Consols. These securities, however, remain in a sensitive condition. If money rises in value, present prices can scarcely be main tained ; but. on the other hand, if no change takes place in it, and there is moderate steadiness in the supplies, an advance is not improbable, particularly in the better paying stocks. Joint-stock Bank Shares continue dull and heavy. Those in the new undertakings show no recovery. Miscellaneous Shares have been inactive. Canadian Land have been down to 103 ; but now they are 110 to 115. The Ceylon Railway Company have secured a guarantee of sin per cent. from the Legislative Council of the island; 057