The Northern Daily Times.
Liverpool, Merseyside, England, 1853-11-28 00:00:00

CorreVonlitnre.

BULLION IMPORTS AND EXPORTS

TO THE EDITOR OF THE NORTHERN DAILY TIMES,

Slll,—Your leader of to-day is, I dare say, con-
sidered by you as a smart retort ; but it is not an
answer to my letter. You repeat again the blunders
of which I complain; and instead of leading, you
persist in misleading, the public on the important
subject of "Bullion imports and exports."
You seem to treat the amounts of the precious
metals used in the arts and sciences, and also those
taken. silently out of the country by the large body
of emigrants Iyho are continually leaving us, not
only for the United States and Canada, but also
for Australia and other places, as " paltry trifles."
And so you dismiss with this editorial dash of the
pen, two important facts, among others, to show
how the supplies of bullion may and do disappear
without public observation. I respectfully submit,
sir, that it might have been much more edifying to
your readers if you had given some sort of infor-
mation to show them what the actual or probable
amount of these " paltry trifles" might be. As you
have not done so, I will do it for you.
The consumption, then, of the precious metals
in the arts and sciences—as estimated by Mr. Jacob,
who is the highest authority we have on these sub
jects—five and twenty years ago, was about two and
a-half millions sterling per annum ! You will not
deny, I presume, that in this five and twenty years
there has been a considerable increase to our popu-
lation, and a large addition to our national wealth ;
also that the national offspring of increased
wealth is an enlarged taste for luxury and orna-
ment. These premises being granted, we must, of
course, make some addition to the estimates of Mr.
Jacob. That amount I should claim to put at
about one million per annum, which brings up the
estimates of the precious metals used for other
purposes than coin at about three and a-half mil-
lions sterling per annum.
As for the amounts taken out by emigrants, they
must be mere matter of theory; but as the number
of emigrants finit,ii.tc, to ..buth. aoo.ooo per annum,
r uo not think it all an extravagant statement to
say that this item will amount to one million ster-
ling per annum.
I am aware that large numbers of emigrants are
very poor, and can have very little money; but, on
the other hand, there are large numbers, to
Australia especially, who take their hundreds and
thousands.
I assume, then, that the amounts of the precious
metals consumed in the arts and sciences, and
taken out by emigrants amount to no less a sum
than four and a half millions per annum, and these
you designate " paltry trifles." My notion is that
such terms are misapplied to a sum of money
which represents more than one-fourth of the
whole stock now held by the Bank of England !!
In this view I think your readers will concur,
whatever your own opinion may be.
Among other crude and ill-considered remarks
in your leader there is the following
" As all merchants use their bankers in the course
of their foreign as well as their domestic trade, all
sums leaving the country in the ordinary course of
trade would be traceable either in the increase or
decrease in the bullion and other returns of the
banks."

Now, sir, you must excuse me telling you that
this paragraph can only have been formed by inex-
cusable carelessness or ignorance. You surely do
not require to be told that there are such men in
our commercial community as " dealers in bullion."
That these men purchase the precious metals from
the importers, and sell it to the exporters, or per-
haps export it themselves ; that large amounts of
the same thus pass through their hands which
never enter the portals of any bank at all, and such
amounts cannot therefore in any way affect " the
increase or decrease, or other returns of the bank."
Again, you say—" With regard to money taken
away in the pockets of emigrants, 11r. Langton
seems to think that it has never formed a portion
of the actual circulation of the country." The fact
is, that my reference to emigrants had nothing
whatever to do with the " circulation of the
country." I merely referred to the monies taken
out by emigrants, as a proof of one silent and un-
observed means of diminishing the bullion, without
any record being kept, and this position I main-
tain.

In order to get rid of the difficulties you are in
about the exchanges, you profess not to understand
my views, and you inquire upon what basis I plan
my calculations as to the average market value of
gold.

I must tell you, then, that my calculations are
based simply upon " the course of exchange," and
from these calculations I find that a merchant, or
bullion dealer, can at present, and for some time
back, get a profit of nearly one per cent by buying
gold in England and transmitting it to Hamburgh
or Paris. So long as the course of exchange re-
mains at that point which will enable merchants
and traders to make profits by the transmission of
the precious metals, you may be sure it will be
done. It is like water; it will always find .its

In order to show you the reason of the exchanges
being so much against this country, I referred you
to the aggregate imports and exports of merchan-
dise, as published by the Board of Trade. I
pointed your marked attention to the large balance
of imports over exports, and thus gave you a cor
rect clue to the reason why the exchanges keep so
continually adverse to England.
Instead of replying to this, or attempting such
explanation as might have harmonised with your
views, you answer, by an extravagant statement as
to the advances made by our merchants against
the produce of our colonies, &c. From whence you
have obtained so wild a theory I am at a loss to
know. Why, sir, the amount you put this item at
is more than half of all ovr foreign trade !! ! That
such advances to some extent are made, no doubt,

but they make nothing for your argument, because
they are made, for the most part, in manufactured
goods, and are periodically included in the Board of
Trade returns. It is clear, then, that such pay-
ments are already reimbursed in' the. imports, and the
balance of 18 millions in value, of imports over ex-
ports, has still, as I suggested, to be paid, before
the accounts between England and her foreign cor-
respondents can be adjusted.
In concluding this letter I cannot but regret that
you should have replied to my former communica-
tion by sarcasm and random assertion, rather than
by sound argument or an appeal to facts.
Your spirited and enterprising attempts to esta-
blish a daily paper in Liverpool deserves encourage-
ment and support. But if you expect the patronage
of the public, it will not do to draw upon your ima-
gination for your facts, or to ground your arguments
and theories upon unsound data. —Yours,
—... ours, &e.,

H. C. LANGTON.

Nov. 23, 1853

wolfing anxiously for the
proofs which you promised some weeks back, of the
very large supplies of food to come from the United
States.

[We publish Mr. Langton's second letter as a
matter of courtesy—notwithstanding the animus
which pervades his correspondence, and the serious
aspersions he throws on our paper—leaving our
readers to form their opinion by comparing Mr.
Langton's letters with our Monetary views, which
appear to be the cause of our correspondent's
displeasure.—En. N. D. T.]

BULLION IMPORTS AND EXPORTS.

TO THE EDITOR OF THE NORTHERN DAILY TIMES.

SlR,—The Exchanges, whether adverse or other-
wise, are no criterion of our prosperity, nor of the
reverse. Money is simply cheap or dear, in every
country, from supply and demand—like all other
articles.

The sources of our wealth, as derived from other
nations, arise principally from the exportation of
articles of British industry and skill; and from
returns, are dividends and interest arising from
capital invested and lent on securities in other
countries.

We may estimate the benefit we derive generally
by the balance of trade. We ought to have a great
excess of imports over exports to yield a profitable
return for the large amount of capital, employed ;
and if there be no excess, it is clear there is no
profit. The indebtedness of other nations to
England is a source in itself of great wealth ; and
as long as British money goes out into foreign
lands, upon proper security, we shall always be in'
possession of a large income, which must be regu-
larly sent us, either in money or in kind.
The argument, therefore, is, that the country