The Express.
London, England, 1847-11-18 00:00:00

THE CURRENCY.

Sir,—My appeal to the history of our issues during
post panics has shown that the excitement which caused
them was not the result of an excess of the circulating me-
dium in the hands of the public. On the last three memo-
rable occasions the belies of notes were unusually low, and
the stock of bullion in the country was in the vaults of the
banks when speculation commenced. Much larger sums
were temporarily locked up in the fonds, making the
difference between the fair value of money in the market
and the exaggerated price of government investments. As
far as the wealth of the country is concerned, it amounts to
exactly the same thing. if an accumulation of capital is
thrown into the sea, or invested for a permanency in funds
whose productive power is in no way angmented by such
investment. There is consequently no project so wild that'
is not to be preferred to sitting down in idleness, and ab•
stracting the gains that have been brought together by the
associated capital, skill, and labour of all classes of the com-
munity from circulating amongst and benefiting that com-
munity.
But I have already pointed out, that to represent all di.-
position to speculate es leading to reckless and ill-calculated
investments is begging two questions at once. The first is,
whether home investments would not be exclusively pre-
ferred, if no difficultiesopposed their establishment. The
second, that many of the foreign iovestments which bare
received that stigma really deserve it. Were not the in-
terest. of so powerful a body as the fundholden of this
country, by the new shoot of political economy patronised
by Sir Robert Peel, set at variance with all other classes of
capitalists, we should not have had our foreign relations so
managed as so withdraw all protection from foreign invest-
ments. As Iris, the American states are resuming solvency ;
and the maintenance of peace, and spread of constitutional
liberty, will make mines and railways profitable. The con-
dition of Mexico is a case in point. Have the interests of
our mining companies hemmed for before or during the un-
warrantable attack upon that country? Why then charge
the failure of foreign investments solely on the invester ?
Hu he, as an Englishman, no right to protection ? Is the '
dealing with English subjects to carry no advantage with it
to foreign nations ? Are Engliahmen precluded fro n draw-
ing revenue out of other countries? We are inclined to
think that the fundholder's game is played too boldly when
it leads to assumptions like these.
Bat my object in this letter is to show that, although re-
striding the amount of the amount of the circalating has ne
repressive action of a beneficial kind on speculation, yet it
acts moat injuriously when speculation is rife, and would '
prove beneficial if not impeded. To comprehend the lull
meaning of this assertion we must look at the way in which
enterprises begin and then at the manner in which they
have to be carried out. _ _

A number of speculator' preparing for an enterprise that
promises a good return usually collect their means, and invest
the sums they desire to hold disposable in the funds, or in some
other transferable shape, where the capital lies for a while
and requires no circulating representative to give it activity.
When calls are made this stock is exchanged for circulating
medium, that the sums may be paid away in wages and in
the purchase of raw materials. From these bands the money
returns through the shopkeeper to the banker, who seeks to
place it immediately at the disposal of parties desiring to pay
wages. Were trade practically free there would evidently
be a slow and gradual growth of the sum required for circu-
lation in this manner, utilise education and profits, increas-
ing in power and efilmency, made it become gradually prae-
Linable to pay wages without the intervention of coin or
small notes. To attain this end, both intelligence and con-
fidence are neesaary, and unhappily both are checked by the
restriction on lames.

Experience of the insufficiency of the present amount of
the oreulating medium makes bankers wary of encouraging
sew undertakings of any kind. It is in vain that the oaring
effected by railroads or the demand for certain articles
L shown to be certain. The argument is unconquerable
that money is not to be had. When, then, a set of men get
together, and Waist upon making trial, they do so almost at
war with the circulators of mosey ; and instead of finding
the co-operation that would cause the views of all parties to
he realised, they are under the necessity of buying out com-
ps:awn to make room for themselves. In proof of this fact, I
will only allude to the practice introduced sun after 1844 of
charging commissions on accounts that were formerly not so
charged and which was announced by circulars u about to
be adopted by many oountry bankers. Of course trades that
could afford the new communion then went on. Those that
could not pay it were dropped. A move of a similar kind
is now making by Marrs Jones Loyd and Co., of Man-
chester. _ .

The timidity of the banker drives the capitalist who de-
sires to invest out of trade, and forces him to go to the funds,
until their prim is driven up so enormoudy that it becomes
intolerable. Bpeculations then begin in sudden bests be
large mounts, that ought to bays gradually pressulad,, and
whisk Is that meat, by Maras ecaddenee ia a
healthy slab, liars wird arm:a aremseed
essamical hiftS. vie nevi ft
prestbable to do ocastarly=eriagaggbadesse with little
Makes to the drinkable twain. maid expedients
are rut ii*st
israsthable whin asselleme is expend be
repeated oat list Ulan' an are to tallow err
and miles sr amilment.
hie whoa egesidatien has esemeassi its careen tad new
undertalder re in fall lowan that dee want ef akeekt-
ing median to sear Ilse the., tai Ise the add emir* de-
mands men it, bermes paresribin There is no theirs
between ahtadonia. ail that has bra erkelthen, and es-
=hie
thehen mFr this vim=
teUtsimas assn assegialefrelasedalwax
from tide fe: it is lie te rem that me rums would have
been hit if the resublime had arse bees Wpm&
The nation of dew. the whit al enterprise by re-
stricting the needier is patting im
the hors. The aria of inisepshe is he bread the=br
of such paltry words Is Mtse, as Mum be ever
For the iptarlatrie =mar it a arra, net 1111 MC red
until now na terenable Ern hoe ttlitt it to
calculate whet the yds@ at rid me to be whoa -
Mr a relleted se Miry stann-beat kirisar,would
by Salim take elehrst late his amount sleet the mine of
his project. Okay kis a semi sae and will messed, if at
the cost of alight*/ tithed, se it Is around and would