The Express.
London, England, 1866-05-28 00:00:00

THE EXPRESS, MONDAY EVENING, MAY 28, 1866.

payments. French and German capiiiands are too 1
well acquainted with the vasimie“ mone(ory
systems of Europe to fall iib inch a ridi-
culous error. It is true *hat Oki- fault, if ft
had happened, might be justified by the
persistency with which the singular expedient of

saving the country from a convulsion, and main-
taining the convertibility of the ordinary Bank
note by the issue of bank post bills, or, in other
words, inconvertible notes, has been urged. The
fact of the withdrawal of gold from England in
the face of a high rate of discount is susceptible of
a ready solution. A French banker is actuated
by precisely the same motives as a banker of any
other nation. A fair profit, combined with safety,
are the essential points required. Now, when a
country is suffering from a commercial crisis, which
may easily affect houses of the highest standing,
the course adopted, whether here or abroad, is to
call in loans, limit discounts, and accumulate re-
sources. This is exactly what is happening at this
moment. The French bankers, as we have bad
occasion to observe, usually hold a large
quantity of English bills, and the pro-
portion is at present much larger than in
average times. Seeing the existing difficulty,
they are encashing this paper as fast as possible,
and they will only take gold in exchange. The
effect would be the same, perhaps greater, if the
Bank rate went up to 12 or 15 per cent. If con-
fidence could be restored, doubtless the result
would be different. But high rates of discount,
and the certain dead-lock which a rigorous main-
tenance of the monetary system of 1844 in-
volves, prevents the restoration ofd confi-
dence. Up to a certain point—that is, in fair
weather times—the Act does no particular harm ;
which may be safely said of any regulations on
the subject that were ever devised. Brought to
the test of practical experience, it has utterly
broken down now, for the third time within little
more than twenty years.
Does any one really doubt the convertibility of
the Bank of England note, or that it suffers the
slightest danger from the letter of relaxation
issued by the Government 9 In some quarters
the impression seems to be entertained that the
least infraction of the present fifteen millions
issue can only take place from a desire to send
as much gold abroad, and so weaken the national
resources. By this class of observers it is alto-
gether forgotten that the function of money is to
facilitate transactions between one man and
another, and that for this reason it may be, and
often is, required for internal use only. The effect
of the present restrictions is to cut off all supplies
when they are most required, and to reduce us to
the primitive system of barter. We are assured
on high authority that we were close on this stage
in 1825,0n1y that the ability and presence of mind
of the then directors of the Bank stopped the evil.
The present directors appear disposed to show how
the absence of those qualities may, in a critical
period, produce the very result that their prede-
cessors obviated some forty years ago. One thing
is very certain, that with all our boasted
wealth and commercial progress we are becoming
simply ridiculous in the eyes of foreign countries.
Our Bank Charter Act as it stands seems chiefly
powerful in times of pressure to render all pro-
perty inconvertible, and to create an amount of
confusion both at home and abroad which, as we
have urged before, amounts to national disgrace.

OUR CONTEMPORARIES.

(THIS DAY.)

• • • - THazullieuxir POWNIII. •
Referiati tone new pies of die Austria* se- .
vernor of vaimo, the Da Pews OSP we, tray expect to
bear before** that meet ye bees shot in Italy for des
dining to /leis against di* country. It is very horrible,
but it is equally logical. The Austrian government is only
acting up to the neoessities of its position. As long as it
holds Venetia, it must make the population tributary in
blood u well as money, even though both the blood and
money should be wanted to be used against themselves-
But a government which in thus reduced to fight against
n'atos4 Itself mast be also fighting against its own convic-
tions. The statesmen of Austria tare not to blame for in-
heriting function, which must be odious as long as men
think and feel ; but they will be very severely blamed if
they show a liking for them, or attempt to prolong a mo-
ment stiiiie than is absolutely necessary the situation out
of which those functions arise.
In the course of an article setting forth the folly and
wickedness of aggressive war, and speculating upon the
way in which it will be appreciated by European opinion
and influenced by commercial interests and the strong
respect for popular rights, the TAU remarks that, re.
membering the urgent instinct of self-preservation and the
double claim based on the doctrine of nationalities and
natural boundaries, we can make large allowance for the
war spirit in Italy, though it cannot but be doubted
whether any contingent gain will compensate her. As
for Austria, it is self-evident that no possible benefit she
can reap from the retention of Venetia is comparable to
the ;weakness it entails ; nor is there a subject of the
Kaiser who would not have reason to rejoice if this fatal
appanage were peaceably severed from the empire.
With all possible despatch the Telegraph supposes that
the meeting of the conference will not be found practicable
within the present week. During the interval there will
be no necessary suspension of the preparations for war ;
on the contrary, it is likely that each of the rival powers
will use its utmost efforts to get ready far the hostilities
which must inevitably ensue if this basttand decisive at.
. tempt to arrive at • peaceful settlement of the points in
, dispute should prove a failure. On the other hand, no
actual outbreak of war is to be dreaded pending the pro.
gress of negotiations.

ICS TOPICS.

The Times contrasts the want of money in the City
with the way in which money is going at the West-end.
At a sale of jewels on Friday a pair of diamond earrings
fetched just 1,450 guineas, a diamond necklace 845 guineas,
and so on. A week ago at a sale one picture fetched 1,300
guineas, another 2,000 guineas, and there were similar prices
for other specimens. In short every person acquainted with
such matters knows full well that though money may be
seam in the financial market it is abundant enough else-
where, and that while the extremity of pressure is felt in
the City any object of art, rarity, or interest will
find eager purchasers at prices absolutely fabulous.
The explanation is that the classes concerned in these
transactions are separated widely from each other. The
purchasers of sapphires and rubies at about 6,000 guineas
an ounce probably could not have told what was the Bank
rate of discount at that minute, and would not have been
tempted by it if they had known. Objects of real artistic,
natural, or historical value fetch enormous prices, because

the increase of national wealth has been enormous. Our
neighbours may assure themselves that, despite the inter-
ruption of credit, we are not really any poorer than
before.

The Daily News, Herald, and Star comment upon the
late meeting of the metropolitan guardians of the poor.
The former journal speaks of the gathering as a melan-
choly display, and as illustrating the obstinate perversity
with which those honestly bent on improvement have to
contend. The highest official authorities, the professional
men who have practical experience of the sad working of
the system, philanthropists, statesmen, the general pub-
lic, and the press are on one side, and a handful of paro-
chial dignitaries, indignantly afraid of losing place and
power, are on the other. The remarks of the Herald are
of a similar character ; while the Star say. that nothing in
the whole of the discoveries is more remarkable than the
utter ignorance in which the authorities generally ap-
peared to be wrapped with regard to the shameful condi-
tion of the institutions under their charge.

LATEST INTELLIGENen:

THE ifIROPEAN CRISIS..
All the deformation from Italy, both that cos-
tained in the national journals, as well as that I
communicated in the correspondence sent to
various foreign newspapers, speaks of the
intense excitement existing in that country.
From Florence, Milan, Turin, Rome, and
all along the frontier the news arrives that
war is regarded as imminent and is even desired
by the people and by the army. A concentra-
tion of troops along the frontier was spoken of for
yesterday, and a general feeling prevailed that to-
day (the 28th) some decisive step would be taken.
Neither the statesmen of Italy nor the public
opinion of the nation seem to have any faith in a
congress or in its results. Volunteers are flocking
to the volunteer depots from all directions, and
some of the first nobles of the land are enrolling
themselves under the national banners. The
Italia of May 26 contains the order of
the day addressed by Admiral Persano to
the admirals, commanders, officers, and sailors of
the fleet, announcing to them his appointment to
the command. After exhorting them to the per-
formance of their duty, he adds, " Let us now then
set to work ; let no fatigue tire us ; on the con-
trary, in presence of the sacred end in view, let it
find us contented and joyful. Long live the Italian
fleet, and you, brave sailors, who are the first
called to uphold intact the national honour." The
fleet is called the " fleet of operations." The Aus-
trians are expecting a descent on Dalmatia. The
Hungarian general Turr arrived in Leghorn a
few days ago and started thence for Caprera to
pay a visit to General Garibaldi. The Turin
journals mention that a special agent has arrived
there from London for the purpose of immediately
communicating to the British government events
that are likely to occur along the frontier of the
Po in the next few days.
The Monifeur protests against the supposition
that there exists a secret treaty between Prussia,
Italy, and France, in virtue of which the two
former, in the event of war, bound them-
selves—the ono to cede the Rhenish provinces,
the other the Island of Sardinia, to the last—
and assures the public that no sort of engagement
exists between the French government and foreign
powers. Prussia, it seems, has accepted the con-
ference on the condition that its decisions should
not be binding or even retard the resolutions of the
different governments. Prussia, therefore, reserves
for herself full liberty of action, even pending the
negotiations.
The Patrie is strongly of opinion that there will
be no war—first, because it thinks that diplomacy
will find the means of solving the pending ques
tions ; and next, because, if diplomacy did not
succeed, the French government must take deci-
sive steps and take the side of that power whose
cause isjust. It adds significantly that, thanks to
the organisation of the reserve, France could have
on foot an army of 600,000 men in four days.
A letter from the students of Paris to the stu-
dents of Germany and Italy appears in the Courrier
Francais, in which they pray them not to take part in
a political war which, under the name of nationali-
ties, race, and balance of power, masks the ambition
and mad pride of a few oppressors. " The time
is come," they say, " for repudiating these irra-
tional ideas and murderous prejudices. Lot us
separate ourselves from the old world, which is
falling to pieces. As Italians, Germans, French,
we have fought long enough for the glory
of these vain titles. Let us repudiate
them, and regard ourselves as simply men,
and as we recognise no law but reason, let us re-
cognise no country but humanity. Whoever wishes
to be free, whoever marches with us towards tho
revolution is our fellow-countryman, and the
violators of justice who would perpetuate the
servitude, ignorance, and misery of people
are alone our enemies. Brethren of Germany
and of Italy, these are the enemies against
whom we should make war—implacable war—
without truce or mercy. This is the war to
which we invite you. This is our sacred mis-
sion, the mission of the 19th century. Let us unite
and march together. This war will be the
only one, which since the beginning of the
world will have deserved well of humanity,
and it will be the last of all wars.
For oppression destroyed, prejudices dissipated,
social justice realised, it can no longer be'conceived
that people will dream of killing one another.
Their evident interest is not in these atrocious
conflicts, but in peace, alliance, and fraternity."

(RIIITTER'S TELEGRAMS.)
AUSTRIA AND THE CONGRESS.

FLORENCE, MAT 28.

The Opinioi of to-day says :—" It is probable,
but not yet certain, that Austria will accept the
Congress."

I;be Douro, with the outward mail of the 9th
inst., was at St. Vince.* on the 20th inst. The
Prime Auswitus and Princess of Saxe Coburg have
come from Pm& by the Rhone.