The Northern Daily Times.
Liverpool, Merseyside, England, 1856-11-04 00:00:00

TO THE EDITOR OF THE NORTHERN TIMES.

Sir,—An excess and a scarcity—an undue expansion, and
an unnatural collapse—in our currency, produce serious conse-
quences to our commercial and manufacturing interests.
Unfortunately, our Parliamentary enactments with the Bank
of England do not place that establishment in a position to
meet a pressure for money, or to put her reserves into circula-
tion ; in respect to either, she is wholly left to her own dis-
cretion.

The Bank, by Act of Parliament, has to buy in, at a fixed pr ice,
all her bullion, and her issue of notes is also fixed, and limited
to lier own Reserves and the indebtedness of our Government
to her. The natural consequence of such a position is clearly
that of raising or lowering her discounts, or, in other words, to
extend to, or contract, her engagements as cu cumstances

compel her.
The root df all our currency evils take their rise here.
Government ought to be the national security to the nation,
and not a company like the Bank of England. The capability
of the Bank of England alone is not equal to the require-
ments of the country, and that establishment requires assist-
ance if she is still to continue the regulation of our monetary
system.

Our Government must come to her help before we can look
for a steady money market. Government must not only
continue to the Bank her issue according to present arrange-
ments, but she must pledge herself to the Bank for the issue
of—say twenty or thirty millions more. The security thus
given to the value of the Bank of England notes would satisfy
the public, and ensure them a free circulation throughout the
country. Bank of England notes would represent national
property, and become as valid as any document from under the
hands of the Chancellor of the Exchequer.
Government would, of course, make their own conditions
as to any participation in their guaranteed notes with the
Bank upon the profits resulting from such issues.
By this plan, gold would meet our exchanges and balance
of trade abroad—bank notes would meet all demands at
home—and we should not be subject to the application,
every now and then, of the screw, upsetting all agreements
and engagements previously entered into.
Among your many correspondents on money matters, and
the various schemes put forth to amend the currency laws,
perhaps, Mr. Editor, you will kindly find a corner for this
plain statement.—Yours, &c., PAPER AND GOLD.
October 30, 1850.

TO THE EDITOR OF THE NORTHERN TIMES,

Sir,—On receiving a double number of your paper last
Tuesday, I looked at once for your heading, " The Cur
rency Questipn," hoping to see another letter from
"J. W.," or, at least, one from " Cornelius," instead of
which I found only a " Currency Reformer," and "Nepos."
I fear the two first-named gentlemen have written
themselves out, or that they were only humbugging us.
Now, having promised to wait patiently for "J. w.,5,,
plans, I think I have a right to complain if he won't go
on with his work. When he has done, perhaps I may
begin to build on his foundation, if his superstructure
should turn out to be nothing better than " wood, hay, or
st übbla."

- ---- -
I see no improvepent in monetary matters.
Even your bullionist purrency Reformer" of Tuesday,
says that " our present system pf currency is very
defective, and does frcquently produce roost disastrous
results."

Will none ,of your correspondents show us a remedy ?
What. if the Bank of England were to double its capital
X28,0G0,000 instead of ,l4,000,000?—Yours truly,
$ LLow_Hill, Oct. 28, 1856. GLIINBA GOLD.