The Express.
London, England, 1847-10-14 00:00:00

ANTI-GOLD-LAW LEAGUE.

A public meeting was held lest evoking et the
Crown and Anchor Tavern, Strand, for the purpose of giving
an exposition of the views of the supporters of the Anti-
Gold-Law League.
Mr. F. DENSOCII, the chairman, said, the members of the
league had resolved not to discontinue their efforts till the
law which they opposed was abolished. Since their last
meeting, about a fortnight ago, three or four millions more
of bad debts had been declared in the City. Such a state of
things must be terrible to all, especially to the industrious
classes, upon whom the great burden always fell. The
country was never more prosperous, looking at the amount
of orders in the manufacturers' hands, the price of provisions,
and other things ; the only obstacle was, that bills of ex-
change were not discountable in Lombard-street, because it
was said there was a want of gold. But why should the
value of all other property be made dependent on the value
of gold i Had gold been allowed to take its market value.
according to the laws of supply and demand, and had it
risen to 41. 17s. lOd. the ounce, additional notes would have
been issued by the bank, and no deficiency in the circulation
would have been experienced. The circulating medium
ought to be one which bad no disposition to become I
hoarded and secreted, as gold did. The distress in
a panic arose, not so much from scarcity, as from the clew-
listing medium being hoarded. (Hear, hear.) Gold being
of limited quantity, and having a positive value as a metal,
ought to be allowed to pass from hand to heed at its market
value, and not to have a permanent fictitious value im-
pressod upon it. Some persons attributed the distress to
over-production, and supposed that a cessation of labour
would bring the remedy. But how were the millions who
were thrown out of employment to be supported? Besides,
the idea of producing too much corn, or too many goods of
any description, was absurd in itself. The same objectors
complained of the want of industry in Ireland; thus attri-
buting the distress of England to too much industry, and
that of Ireland to too little. Under the present system,
when gold was plentiful at the bank, an unlualtky stimulus
was given to production ; the demand for gold was increased
in the manufacturing districts ; and, the moment it began to,
flow out of the bank, a stop was suddenly put to the activity.
With a circulating medium properly regulated, no such to
could take place. Ile regretted that the merchants of
London were apparently so apathetic; but the apathy
was only apparent ; he learnt from Liverpool that the
merchants feared to get up a meeting on this subject, lest it
should be supposed they were in difficulties. But, at such a
moment, this delicacy ought to be flung to the winds ; for
every move now was a move downwards. The Chancellor
of the Exchequer had declared that solvent houses had no
difficulty in obtaining discounts. The very day on which
that statement was made, most unexceptionable paper had
been rejected, for instance, that of Brown, Shipley, and Co.,
of Liverpool, by the largest bill brokers in the world, solely
on the ground that they had not the money. (Hear, hear.)
Either Sir Chas. Wood knew of this state of thiege, or he '
did net ; if not, be was u,dit for ths situation he held ; if he
did know it, the remark was a heartless arid cruel one, end
calculated to destroy all
sconfidence in him as a public man.
The statistics given in Altson's " History of Europe" proved
that our circulation, instead of increasing with the wants of
tho country, was positively smaller than it was years ago.
' (Hear, hear.) He rejoiced that so many portions of the
public preen supported this movement; and he doubted not
that the Times would soon come round to their views, for
ho invariably found that that paper changed its tone on all
public questions. (Laughter.) Many might recollect the
courteous notice it took of the first meetings of
the Anti-Corn-law Leapt,. (Hear, hear.) He was astonished
that our monied men tad ever consented t) bind them-
, selves so completely by the views of Sir H. Peel on the sub-
ject; unless they took a different course, nothing but ruin
would await them, and they might look for the confiscation
of their property. Ile blamed not the bullionist, in this.
crisis ; lie had only done his beet to take advantage of a bad
law. This was no question between theorists as to paper,

and theorists as to gold; it was a question afficting the
whole population, whose very existence was dependent on a
plentiful circulating medium.
Mr. J. DUNCAN said it was his duty to expound the
principles on which this league was founded. A great dein-
sion was constantly propagated through the press by con-
founding money with currency. Money was a legal tender
currency was not so; therefore, it was an abuse of terms to
say that any one could manufacture money ; all they could
do was to manufacture currency. The league held that the
crown only ought to have the power, with the sanction of ,
parliament, of loaning money—not at caprice or discretion, '
but coacurreutly with the amount of annual taxation.
Strictly speaking, the Queen had no riitht to demand taxes
in any other form than in British commodities, as portions
of the produce of the people's labour; and in thiA form hid
the taxes actually been paid until the reign of Henry 1.,
when the exchequer tallies were introduced, and eon-
-1 tinned in use fur six centuries, down to 1694. Under

this system, therefore, was laid the foundation of our stu-
pendous empire. How was it, then, that with a gold Cur-
reny, England was unable to support her population ?—The
speaker then exhibited one of the old exchequer tallies, and
explained their use as a circulating medium. With the in-
crease of traffic, he observed, it was found necessary to
widen streets and roads ; but who, save Sir It. Peel, would
have thought of selecting the scarcest commodity in the
world as the basis of our circulating medium ? The circula-
tion was likened by Adam Smith to a road; and if it were
not sufficient for our business transactions every one must
see what would be the result. (Hear.) As to currency, the
league held that it would be safe, under certain securities
fixed by the state, to allow private bankers and others to
make issues. The national debt was to be paid by some class
or other—it ought to have been paid out of property, not out
of labour. (Hear.) The propertied class ought to have
redeemed the debt alter the cleat of the war; and if they
would do this, the league would abandon its views, as in
thav case the gold and the paper pound would be at par.
But in an indebted nation, w here the interest of the debt
was always paid out of its internal resources, it might be
supposed that a depreciation in value would result from
any extension of the legal tender. Supposing that
the paper note were depreciated it would only be
so in proportion to the indebtedness of the na-
tion • and it should be remembered that whoever pur-
chased government securities clothed themselves with
government responsibilities. (Hear.) Reference was made
to the fact of a pound-note and seven or eight shihinps,
having been paid for a guinea after the passing of the
Bank Suspension Act, and this was celled depreciation,
though the fact was, it was a rise in the price of gold
concurrently with a rise in the price of all other commodi-
ties. (Hear.) The speaker then referred to the proceed-
ings of the Bank since 1792, and showed that down to 1819
the circulation of notes had been constantly below the un-
funded debt, hearing to it an eve rige proportion of 57 per
cent. Hence the charge of Mr. Huskisson against the Bank,
of unduly increasing its iseues at this time, was wholly un-
founded ' • on the other band, there had been a re,vular de-
crease. The Bank had never issued notes up to the amount
of the Exchequer Bills deposited with it by government ;
but, on the other hand, had compelled government to the
exercise of economy. The Bank had the power of refusing
advances to the government. This humiliating state of things
might he obviated by adopting the views of the league, and
allowing the government to issue their own money; and
another advantage would be that men who were solvent in
material property need not rush into the market, or
wind up their affairs, owing to the difficulty of
getting their paper discounted. This led to the clos-
ing of mills and the cessation of labour ; end now
it was proposed to clove the railways, whereby 2,100,000
people would be de priced of support, and an addition of
2.5,000,0001. would be made to the rite rates, or a sum equ d
to the interest of the national debt. (Hear, hear.) So
much was now said about gold that one would suppose fields
could net be ploughed, or houses built, without gold. In
refutation of this, let any one look at Scotland, anti see what
bad been done there by paper. (Hear, bear.) Ou the other
hand, Ireland was totally prostrated for want of a proper
banking system. Her inhabitants were condemned to per-
petual idleness, and then blamed and punished for it. An
Irishman could not be expected to put forth much industrial
energy fur a remuneration of 41d. a day. (Hear, hear.)
Another advantage which would flow from the adoption of
the League's sieves was the decrees • of absenteeism ; for when
the absentees were paid in paper money, the value of which
might be said to be deprecated, that depreciation would
only be au equivalent for such a person's share of the na-
tional burden, and, in fact, what he would have to pay if
the taxes were levied directly on property. (Hear, hear.)
Not only Scotland, but our American colonies, had been im•
proved under a paper currency; and he firmly believed
that, if such a system were adopted here, tliere would
not be a pauper in the country, except the in-
corrigibly idle or dissolute. (Cheers ) Great things
might be done with nothing; for a piece of paper was
Comparatively valueless. The market-place of Guernsey,
now producing 400/ a year to the inhabitants, had been
built by an issue of 4,000 one-pound notes, on the credit of
the entire state, which circulated for ten years, and were
then called in and cancelled. This was an matinee of what
people might do by depending on themselves Instead of going
to any bank to borrow monied crutches. (Applause.) Why
should not our railways be constructed by issuing railway
notes, applying the first fares in cancelling the notes ? By
this means a railway from London to Edinburgh might be
constructed without costing any human being a farthing.
(Hear, hear.) This country had obtained a free uade en
commodities, ; but without ei free trade in the medium of ex-
change—gold—our native industry would be dear vyed. A
foreigner, who hod not to contend with the disadvantages of
our system of taxation, would be able to undersell the native
producer ; but if our home manufacturers were allowed to
pay taxes in the taxation currency, they could meet this
competition, as the foreigner wovareceive a less quantity of
gold than before for his commodity. Our present system
was like the handicapping of horses in a race ; and the result
would bets break the hack of John Bull. He believed that
all the nations of antiquity heel been ruined by their mone-
tary systems; and he was firmly convinced that the
same fate awaited Great Britain if the law of Sir
Robert Peel were upheld. (Hear, hear.) The adoption
of the principles of the 1.• ague would conduce to the utmost
prosperity of all; and their extension to all the countries of
Europe, as well as our own, would have the effect of render-
ing gold comparatively a drug, or useful only for purposes of
oreament. The perpetual recurrence of wire proved the
unsouudness of our system, and must force public reflection
on it. The remedy proposed was most simple—to allow the
crown its ancient privilege of coining and imuing its own
money. (Applause.)
A (jeer/AMAX asked if it was intended that the proposed
exchequer.bills should bear interest ?
Mr. DCSICAN said, certainly not ; for it was a perfect fame
to compel Englishmen to pay interest to Englishmen, and
could only result in injury to the working claws. (Hear.)
Mr. sett said the League did not want to force oa the
country an inconvertible currency; the cne proposed would
be issue,: by the Queen in payment of her debts, and received
back in payment of taxes. The present currency might, in
fact, be called inconvertible ; for it could not be maintained
that under it the products of industry could readily be can
vented into currency. Men who had large masses of pro-
, perty could not do so; and even the Bank of England,
with its thirty-seven millions of liabUities, had now but
eight millions of bullion. On the principle which refused
the paper of the best houses, the Bank itself might be said to
be insolvent. (Hear.) A leading journal had attributed the
distress to merchants having traded more on credit than
.on
capital. But the act of 1841 had professed to prevent mi-
-1 provident speculation ; shy then should this charge he made
by its supporters ? Was it not odd that those who professed
to foster commerce spoke against credit? (Hear, bear.) If
capital was the only sound basis of trade, the trading opera-
aril tope amount of
gold
ds of the
th coecuonutL ought
ryy
—uy tsobboeutlini.sty
But the
taxation itself, which people were bound to psy in gold,
would absorb nearly this Bum; hence the recipients of the
taxes were almost the only capitalists, according to this
view. Without credit, a sate could scarcely emerge from
barbarism, and its concomitant, a state of barter. An in-
fluential paper had blamed the promoters of railways be-
cause, when they undertook their engagements, they did not
actually possess the amount of capital necessary to complete
their undertakings. What, then, was to be said of a farmer
taking a long lease, or a manufacturer setting up a mill ?
Must these parties be possessed of capital to meet all their '
prospective engagements for years to come? Rather, was
it not their object to become possessed of THAI, to coin
their industry and productions into capital ? (Hear, h. ar.)
The fact of gold being the only legal tender in this country
gave it a fictitious value, superadded to its intrinsic value as
a commodity. This was, in fact, a species of credit ; and, if
credit was to he denounced in reference to other commodi-
ties, let the principle be extended to gold also. By the pre-
sent arrangement, when every other commodity was falling
in value, gold was rising ; and this gave an additional ad-
vantage to the bullionism over the owners of other commodi-
ties. If war was to he waged upon credit, and the owners
of houses, manufactures, and other goods, were to be told
that their property was not capital, let the owners of gold
be treated in the same way, and let the article be divested of
the character which gave it so much credit. (Hear.) It
had been harshly said that the great commercial houses
which had succumbed to the pressure were rotten houses.
What, then, might be said of the Bank of England, or the
government itself, if they were called on to-morrow to re-
deem their obligations in gold at the Mint price? (Hear.)
If houses which could not do this were rotten, then our
whole commercial system seas rotten. It was most unjust to
say that the principles of the league, if adopted, would go
to rob creditors ; on the other hand, they would only compel
creditors to bear their share of the national burdens,
which now pressed unequally on the producing classes.
Under the monetary sy.tem which Mr. Pitt adopted
in 1797—n0t very dissimilar to the one advocated by the
League—producrishad obtained at least remunerative prices;
but now, with an increase of taxation of 40 or .10 millions a
year, the producing classes were compelled to pay this addi-
tional amount, with reduced prices fur their goods. (Hear.)
Since the time of Elizabeth, there had been a gradual in-
crease in the value of gold, owing to the increased amount of
silver brought into the country, whereby a growing dearness
of gold was produced. Why ought not the same effect to
have resulted from an increases' amount of production and
taxation ; and why should not an ounce of gold he allowed
to represent a greater sum than 3!. 17e. 104 d. ? (Hear.) Sir
Charles Wood had accused the deputation or confounding
circulation with capital. This was the very mistake which
Sir It. Peel and his supporters had fallen into in passing the
Bank Charter Act; they had supposed that they could cheek
improvident speculations by. decreasing the issue of bank
notes. But Mr. Tooke had incontrovertibly shown that im-
provident speculations might exist without the intervention
of a single note. The Newcastle deputation had not masked
for capital, but merely for the liberty of using the capital
they had ; how absurd, then, to accuse them of confounding
capital with circulation! (Hear.) Railway speculation had
been blamed for the distress; but where should we
be if the industrious poor had not this means of
support when so many others were failing—when our