The Northern Daily Times.
Liverpool, Merseyside, England, 1856-11-25 00:00:00

lie, and are, therefore, equally open to examination, praise,
or censure, by any one who may read it. This' being my
v ieW Of the case, I must contintie to expose the Mischievous
tendency of a system not built upon an absolute and
wiquestionable security. I thank "J. W." for having
given us his definition of the word money. lam aware it
is the definition of the school to which he belongs--but I
differ from it ; -and whilst I admit that all currency is in
the popular and common acceptation of 'the word money,
yet, in thestrict sense of the word, nothing deserves the
name'bot that which the world at large recognises as full
and fitting equivalents for any and every.other description
of property." 'These aniversal.equivalentt' are—silver and
gold. Me verdict of the public will .decide which of these
two definitions is right. I contend that ag Op than the
mono I have described cannot clainart) b
security fdr Money; or money's worth

bette- than' a
Thus, whilst I

Ivocate a large, extension 'of -our .eurren

amount at.present in use—and believe that such a currency
hould consistnf paperyet I would have
would-not only

t value, but

also give fal,

lute, ecuritr'y for the value it represented. Such a circulatin
medium 'can be readily created to any adViiable exten
and, be brought into use, not only without disturbance c

'jury to any of our commerciall institutions, but very
roatly to the advantage and permanent prosperity of all

If; then, the plan I advocate, which is founded on uni-
ver'sally recognised prineipleS, and is in accordance with
the feelingS and opinions of mankind at large, can. he
readily carried into effect—would it not be something very
like political insanity to adopt a theory of unsecured
" signs of value ?"—a' theory in which there is neither
value nor security for value 1 ! _ _

" J. W." thinks we cannot both be " currency refor;•
mers." Perhaps he is right. At all events, I feel assured
that the system he is so anxiously advocating will not
entitle him, or any other advocate, to the title. fear that
his plan would make:fnuch worse money, and, consequently,
a worse currency than we have at present—this can
hardly be galled REFORM. One more word, to " J W."
am obliged by his occasional " lectures," which afford
ine real amusement ; at the same time I beg to assure him
that, if I did not 'mow that all hii arctum nts rested on _it
mere paper foundation, I should fear to encounter so able
an antagonist. As it is, I feel that I stand upon a rock,
athilst my, opponent sinks at Every step.

. „ .
Your no security correspondents point with much exul-
tation to that period in, the long FrenCh war, when the
Bank of England having disbursed nearly all its gold, a
just apprehension existed that it must shortly stop pay-
Tho Prime Minister, Pitt, aceOrdingly got .a bill
rapidly passed through Parliament, prohibiting the Bank
from paying specie for their notes : the Bank was also au-
thorised to issue and £2 notes.

This was in truth a suspension of payment, and time
granted by general consent for its resumption. The B Ink was
Able to demonstrate its perfect solvency, if it coul I obtain
payment of its debts. In this state of things it was evident
that if Matters were not arranged 'in some way, both
debtors and creditois_would be ruined _together. It was,
therefore, mutually agreed (the ultimate ability of the
Bank to pay being evident) to establish and maintain a
systerw of accommodation paper until times mended.
After a number of-years, the expectations of creditors
were realised, and. the Bank resumed cash payments.
The m asure did, beyond all doubt, so relieve the finan-

cial difficulties of the Country, tliat we were enabled to
continue the war until it terminated triumphantly. Yfmr
correspondents, therefore, argue that, because an issue of
not immediately redeemable paper did good service on that
occasion, a PERPETIME ISSUE of irredeemable paper
wouldicure monetary disorders: It seems to me
that the simple statement of the ease shows the fallacy of
such an assumption. But let us glance at some of the,
effects -Of Pitt's celebrated measure.' Previous to the
Bank Restriction Act, a £5 note and five shillings ex-
changed readily for five gold guineas; but, after the sus-
pension of cash payment by the Bank, the credit of its
(legal tender-) notes were so much dimaged that a & I note
and four shillings were given for the guinea; and as the
suspension continued, so did the discount on paper continue
to Increase ; until, toward the close of the war, a L'l note
and NINE shillings were given for the guinea. At that
period, our silver money was exceedingly worn and
debased, yet tradesmen frequently gave a Rl note for
NINETEEN of these smooth bits of silver (called shillings),
which were so worn that it was seldom that any trace of
an impression remained upon them. This was one effect
of a currency defective in convertability. Another effect
of the measure in question will show the immense priee
paid, and sill payable, for the accommodation paper so
much lauded.

I refer to the ruinous terms upon which the Government
were obliged to borrow money, by which some hundreds
of millionk Were added- to our National Debt 1 A large
portion of the public debt 'was contracted at prices vary-
ing from 63 to 68. Since the resumption of cash payments
the same stock has usually vibrated between 88 and 94!
The nation loses the difference, as the price paid for accom-
modation ! Had the system of currency I advocate been
in operation, none of these results would have accrued, nor
would the cause of them have existed. I could point
to other results from the measures to which I refer, not
less, disastrous than. those have. named; but it is, per-
haps,unnecessary. I will antitpa'e "J. W.'s "reply, and
show....its fallacy. This gentleman and his friends will
probably tell us that the notes did tot sink in value, BUT
Trice. A short answer will settle that
Lion. If gold rose in price, the advance Would have

ch, however, wa

The relativevalu'e of gold to property

enerally varied but li

from what is now usual,

3ut the.rela

value of bullion to paper varied to the ex-
tont.l have stated. 'lichee, the deduction is clear. It was
not the doLD that advanced„but the PAPER that receded

ntended noticing P,

Fourteen Million me

but as I do not w

ions to be obtro

it must be

iverteil to

ers will stilt consid

rne'entitled to stylpmysel

Liverpool, Nov

SLAVERY

H A

TO TIFF, EDITOR OF TUE