The Express.
London, England, 1847-11-09 00:00:00

THE PANIC AND THE CURRENCY.

One currency act car.not be destroyed without sub-
stituting another. The repeal of the act 1844 cannot be
carried alone. There must be a substitution of some other
scheme for that which recently existed, which is, indeed,
only suspended. Three modes of arranging the eerie of
paper money are suggested : the first is an exclusive issue by
government; the second, an issue by specially-privileged in-
corporations, companies, and individuals, as m present; the
third is by free trade in money—that is, by permitting all
companies who con comply with the regulations devised and
adopted, to issue bills for small viols payable in bullion on
demand. To the first scheme we have a leading objection,
arising from the circumstance that the government me-
chanism is already sufficiently unwieldy, and again from the
suspicion that might be engendered of government inter.
ference through its issues with the course of business.
In reference to the second or existing scheme, while we
deny sot the abstract right of government to manufacture,
or even to manufacture exclusively, paper money, yet vs
dsay any right, in justice, that it can have to pass sway
Ibis privilege to a certain number of private companies
er individuals. The right in law is net to be qua.
dossed. The legislature makes the statute, but what is
right in law may not always be sound in policy or just is
smarals. We see no ground to justify the bestowal of an ex-
clusive privilege to make money—the current representative
of capital—and itself real capital or not, as the case may be.
The government have monopolised the conveyance of letters,
which is done ill and cheaply . the work is not done ill be-
muse it is done cheaply ; but both characteristics exist to-
gether ; and without denying the right of the government to
essevey the mails exclusively, we should deny the moral
right of the legislature to bestow this privilege or Maness
en one or two private companies—on the London and ,oetk
Western, or on Pick'ord and Co. We have, therefore, •
radical objection to the second plan. It is a monopoly, and
sli monopolies are essentially imprudent and impolitic.
The third plan prevailed in Scotland to the date of the
act 1845 and 1846, which confined the power of Outing
paper money exclusively to the banks of issue then estab-
lished in that country.
The Bank of England Charter presents an objection to
the adoption of free-trade in the metropolis and some parts
of England. That charter has its date, and it has its money
value. We know when it will die out, and we know also
that it may be bought out ; while we do not think that any
wax which could be necessary for that purpose should pre-
vent a great national reform. Assuming, therefore, that the
Bank of England can be approached with proposels regard-
Mg the sale of its charter, we reach the conditions on which
say company might be permitted to issue notes for small
same payable on demand.
Thus are many distinctions between a bank and trading
asnaposies for general purposes. In depositing money,•
mesa satisfies himself respecting his banker's sonclar and
saisency. Inquiries are not often made; appearances are
seedily set down for feces; and sometimes the shrewdest
depositors choose the crooked stick • yet we are boiled to
sappose that in a leisurely acid deliberate transaction, nun-
, assa is done, in this regard, on a sound basis.
A bank of issue, however, asks credit from the public. Its
wares are thrown into every Males hand ; and it is not de-
sirable, as a shopkeeper or trader takes their bills, that he
should be obliged to consult some authority regarding their
validity. They should bear the mark of being coed and
solvent promises to pay on their brow. There should be so
doubt left on the enbject. The government warranty can
be affixed to each note, and thus, wherever it pares, it may
be known to represent in good faith one pound, or five, or
ten pounds' worth of negotiable property. In asking
security for the currency we are reminded of the much
larger capital in deposits left with bankers; but that is the
business of each individual depositor; while the currency
affects all dames, and no clans should, we repeat, be com-
pelled to maks special inquiries regarding the character and
solvency of every Bank in the kingdom.
Our proposal embrace*, first, the purchase of Consols by
the hankers who mean to issue note., equal in *mount to
one-third above the sum which they intend to issue. Thus,
if their fixed issue shall be 240.0001., we propom that they
should hold government stock to the nominal value of
320,0001., productive of dividends annually to their concern,
but in every other respect withdrawn from the market, and
•