The Northern Daily Times.
Liverpool, Merseyside, England, 1856-10-09 00:00:00

let
eral reader who may not have

in the

ntion to this question of the currency to
le use of money what money really is.

Its chief, if not its only use, is to facilitate the

exchange of property.
By means of money one man readily exchange the
products of his industry for the products of the industry
of many other men which he requires, in order to
supply himself with the necessaries and luxuries of
Civilised life. By means of money the accumulated
products of labour—which are the real capital of every
Country—are invested in lands, houses, national secu-
rities, railway shares, &c., &c.
These are the uses of money, and might to teach us
that it possess necessarily a symbolical, but not hecessarily
anintrinsic, value.

that a proposition so simple as this is not
more generally understood ! Strange that men, even
intelligent men of business should not so have learned
this very easy lesson as to avoid the mistaking the media
of our exchanges for the valuable things which we
exchange—the instrumetit we use for investing our
capital in reproductive estates or securitiees for the
capital invested—the sign for the thing signified, the
symbol for the substance, the mere representation of
value for the thing which it really represents!
Strange, indeed, it is that statesmen and financiers
cannot perceive that that must be a vicious system under
the operation of which a profitable trade in the purchase
and sale of the precious metals, relaxes the springs of
productive industry, depreciates to an alarming extent all
the real property of a nation, and imposes grievous and
intolerable burdens on its commerce !

With a view of clearing away all the mists in which
this money question has been involved, by the crude and
unphilosophical theories of the bullionists, I shall pro-
ceed, in my next letter, to demonstrate the impolicy of
the act of 1844, and the impossibility of satisfactorily

ng the mercantile affairs of this great nation, by
means of a currency resting wholy, or principally, on

conducti

a metallic basis,

Bearing in mind the vast and complicated interests
involved, I shall endeavour to discuss all the points at
assue, between the currency reformers and their
opponents, with fairness and moderation. I shall fortify
my arguments with historical and other undeniable
facts, which I trust will convince some of the most
unflinching advocates of the Peelite theory, that it is
impossible to reduce that theory to practice, and that the
attempt to do so, has inflicted irreparable loss on the
community at large.—Yours &c., J. V

Liverpool, Oct. 6, 1

MUSEUM AND PUBLIC LIBRARY.

TO THE EDITOR OP THE NORTHERN TIMES,

Sir,—The decision arrived at in the above competition
is so eccentric and so unjust, that I hope you will allow
me space to say a few words on the subject.
The rules imposed upon the competitors were to the
effect, that the Museum and Library were to be perfectly
distinct '° self contained" blocks; room was to be provided
for extension, and the cost not to exceed 4'20,000. Instead
of adjudicating in harmony with these rules, the committee
seem bent on a game of " Fast and Loose," chosing
designs which had the most deviated from their instruction

Con Amour's" design cannot be executed for the sum
named, has not the Museum distinct from the Library,
and does not well provide for extension. " Alma's
design does not provide for extension at all, has not the
Library distinct, and would cost apparently X 60,000, with
-levation of anything but appropriate character.
of the competitors who have sought' success by
to the rules are set aside. " Con Amour," who
..t by profession, owes his success, in no small
Ippo his
,artistic drawings, so showey, but
is a wonder.
-,,siTina to a s
attempt to shield themselves behind the
'atter having given their votes ; but if,
-ompetitors have not dealt justly with
,ot excuse the committee in doing
A COMPETITOR.

is an ar

degree, I s

not truthtu

comm

competitors, t

as it appears, t

each other, it does

wrong.—Yours, &c.,

LECTURES TO FEMALES.—On Thursday evening, Dr.
Matcham delivered a lecture at the Assembly Rooms,
Lowestoft, to nearly four hundred females, on "Mid-
wifery," giving the opinions and practices of eminent
American, en ch., and metropolitan accoucheurs on the
propriety of instrumental assistance in protracted
labours. The lecture was listened to with great atten-
tion, and the lecturer was frequently applauded.—Bury
Post.
TILE LATE FAILURE OF SCOTT RUSSELL AND CO3-Mr.
Coleman, the accoun'ant, has given notice that a first
instalment of 4s 6d in the pound will be payable on this
estate at his office in Coleman-street, on Wednesday, the
15th inst., between the hours of eleven and three. At
the same time he states that the dividend will be equal
in amount (viz , 10s in the pound) to the estimate that he
submitted to the meeting shortly after the suspension.

aich at any given period are
most characteristic of the economical situation of the
cauntry, and supply the most accurate measure of its capa-
bilities. As these data form the basis of a rational estimate
of the wants and resources of the future, I beg your
Majesty's permission to make them the subject of some
observations. The budget of 1854 is now in course of being
brought to a settlement. The provisional account
of it, which was published last year, showed an excess
of expenditure of 100 millions of francs. This deficit is
in the final account reduced to 75 millions. The budget of
1855 has just been closed, and we have every ground for
hoping that the amount which it leaves to be covered will
not go beyond 50 or 60 millions. These figures will be
seen to be satisfactory, sire, if they are compared with the
average deficit of the five preceding years, which was not
-hty millions annually, and if we bear in mind
enormous burdens which the public calamities, even
ut taking the war into account, imposed in addition
to the ordinary services of 1854 and 1855, involving the
1g of large supplementary credits. These compara-
yelp favourable results are attributed to the extraordinary
age of the revenue from indirect taxation, which last
,ar attained the enormous amount of 6.5 millions, without
including 33 millions arising from new taxes. At no
period, under the most favourable irfluences, have the
producing capabilities of the nation been exhibited in so
signal a manner. This movement, which was ascribed to
the exhibition, has.not ceased in 1856. It was believed
and asserted that it would cease; but that was a complete
error. The result, in fact, has been decisive as to that point.
If the amount of the products of the country in 1855 had
been owing to an accidental cause, we should have seen,
what always happens after a great effort, a sudden pause in
ourindustrial progress, and the products of 1856 would
have fallen eff and descended even to less than those of
1854. I am happy to be able to state, sire, that the
contrary has actually happened. Not only has the amount
of the year 1854 been attained and exceeded—not only, at
least up to this time of the year, the extraordinary amount
of 1855 has been reached—but the first months of the
present year, compared with the corresponding months of
last year, give us a considerable increase. This increase
comes to 63 millions as compared with 1854, and nearly 26
millions as compared with 1855, in the first half year only.
It is true that the comparison for the month of August is
less favourable—but that is immaterial, for it is to be
explained by the payments of taxes by anticipation, in the
month of August, 1835, occasioned by a wish to avoid
payment of the newly imposed tenth. This partial falling
off will, moreover, be soon compensated for. The information
we have received enables us to expect an increase of above
twelve millions on the month of September. Upon the
whole, the augmented revenue from the old taxes, and the
sum derived from the new taxes, together constitute an
excess of about 72 millions above the amount of the esti-
mated revenue for the nine first months of this current year.
The importance of this calculation is beyond all dispute.
We have, therefore, sire, without indulging in any illusion,
most substantial reasons to hope that the bur'
se of contracting the loan,
tirst tim^

3 than

openin

183 G, notwithstanding the exnen

get cf

exhibit, for the

_..tee during many years,
n equal balance sheet. This desirable result, attained in
—es of exceptionable difficulty, is the best proof
that the onward progress of the fortunes of the State
hitherto is far from being slackened. But shall
we find any evidence to the contrary in
the momentary depreciation of the public securities?
According to my opinion, such a view of the matter would
be in error. This is a very delicate subject, and difficult of
appreciation. In the alternations of rise and fall of prices
much is due every day to the influence of temporary causes
which are often inexplicable and unknown. But one fact
of general observation and of a re-assuring character results
from the present state of things, which it will soon con-
trol ; and that is the perception, as every sincere mind
must agree, that the giving. way in the prices of securities
does not proceed either from a want of confidence or a
diminution of capital in France, or a defect in the solidity
of their titles, but solely from the multiplicity of the securi-
ties themselves. We must not be surprised at this, for it is
the invariable law of trade that every sort of merchandise
declines in market value in proportion to the quantity of
the supply, especially if this exceeds the exiting want and
the amount of means at the time disposable. The resources
of France, sire, are indeed great ; they are immense, and
recent events have showed their full extent. There could
be any serious danger to them only if we came to persuade
ourselves that they were infinite, and that they would
suffice to perform in France, and abroad also, in a single
day, that which should be the patient work of time. But
let the prudent recommendations of your Majesty be listened
to, and let the requisite time be afforded for the surplus to
run off, and then the various classes of securities will
rapidly assume their true position, and the scale of their
values will soon rise; for I expect their basis is solidly estab-
lished, the existing securities are founded in general upon bona
fide productive enterprises, and the elasticity of credit
has, after all, been entirely maintained. The apprehended
embarrassments, I cannot too often repeat, could only arise,
sire, from such exaggerated speculation as it is to be hoped
the pubic will know how to guard against. It is to the
same cause that we must attribute the reaction by which
last year, at this very season, the Bank of France was
obliged to adopt come restrictive measures. Those measures
were unfavourably appreciated by a portion of the public,
because they were not always viewed with an accurate
knowledge of the cause, nor in all cases with disinterested
feelings. That great institution has to deal with such
numerous and diversified interests, that whatever it may do
it cannot escape the disadvantage of injuring some of them,
and in their judgment the course it may adopt, however
wise it be, will always be the course which ought not to
have been adopted. What, then, was the state of affairs ?
The amount of discounts of the Bank daily assumed exorbi-
tant proportions, and its reserve was rapidly decreasing.
Every body acknowledged that an immediate remedy was
called for, and the only disagreement was about the nature
of that remedy, the most serious measures were proposed.
What was it, then, which the Bank did ? The same which
it had done, and always with success, under almost all the
preceding governments when in analogous circumstances.
The Bank said to the public, " How ever liberal may be my
statutes, there is, nevertheless, a limit to the issue of my
securities, which the commonest prudence, if not an express
law, forbids me to exceed. In order to enable me to
grant assistance in a greater number of cases of need, it is
necessary that every one should consent to reimburse me more
quickly." And with this object the Bank contented itself,
whilst raising the rate of in'erest, with shortening the date of
bills discounted. No doubt from this measure resulted a
certain derangement in commercial affairs which was to be
regretted, but which was not without some compensating
benefit to trade itself. The resources of the Bank, renewed
more frequently, enabled it to make a greater number of
discounts ; if its advances were for shorter periods, they
were thereby multiplied ; and upon the whole, during the
months of October, November and December, under the
operation of the measure referred to, the amount of the
Bank discounts exceeded by more than 600 millions that of
the discounts in the same months of the preceding year.
Sufficient notice has not yet been given to the enormous
relief which was thus bestowed upon commerce. By acting
in this manner the Bank of France stopped, as it had done
on former occasions, the evil which threatened to approach
it, and did not cause those serious disturbances to trade
which had been apprehended. The Bank of a neighbouring
country, notwithstanding the great amount of credit which
is characteristic of it, and the legal currency of its bank
notes,
was obliged at the same period to impose restrictions
upon trade, which in their effect, if not in their form, were
far more rigorous. The same circumstances which last
year determined the Bank of France to adopt such
measures having been reproduced in the present year, the
Bank has deemed itself bound to observe the same line of
conduct, and expects from it the same result. It may be
said of the bank, as well as of credit, that its difficulties do
not arise from the fundamental condition of affairs, but are
caused by a temporary exuberance. The exportation of
specie has been spoken of. A succession of bad harvests,
the purchase of silks abroad, and other less legitimate
causes, have doubtless had their influence on the exportation
of our coinage ; silver, in particular, has become an object