The Northern Daily Times.
Liverpool, Merseyside, England, 1857-02-11 00:00:00

Tll-E CURREIVOY QtrA'SPION%

LETTER 111.
TO THE EDITOR OE THE NORTHERN TIMES.
Ir,-- When last I addressed you on this most
important subject- (Nov. 18th) the public seemed
t° take suffieient interest in it, and to have
which .t°olllo weary of the lengthened correspondence to
you so kindlyof gave admission in the columns
joutnal This was one reason why I post-
Poned' this letter to the present more favourable opportunity, when the subject is before Parliament,
arna a committee about to be appointed to enquire
ftilY Into the Bank of England, and all other bank
'uctrters connected with our paper circulation.
„ my former letter I prepared your. readers for
; Bystein of- currency based upon government
bie,eurites, limited in amount the estimated
"'es of the year, and to be farmed out by public
competition to one or more bankers who may be
2.ltad prepared to undertake the duties of public
wolters on the terms and conditions. most in
chee°l.l with the public int. Test, and free from those
and hindrances which encumber our pre-
Bink of England system.
1111 have already explained a part of my plan. I
ire.iv Prepare to complete my task. 131,it before
SO, I feel it' incumbent on me to clear up a
iieeetil"t point," namely, What is money ? which,
f
11 oi]] e r monetary question, What is a pound ?
uon
4S 4net with very indifferent and obscure inter-
pret e•
It.
a, and, in consequence, has given rise to a
3c7 general feeling that the currency or monetary
question is one of extreme difficulty. Whereas,
e,tl,en cleared of the t
niystificat',on with which
Zgerested parties have surrounded it, we may
7 clear and siMP,3e3 enough, and so secure
lj
.°l. it that public retention which its vital im-
11ainee) both ninmereially and socially, demands.
heßwTl) 2‘:, to the question, what is money .2 I
xho:"'" Money lis an instrument used to facilitate
Ikt:change of labour and its productions. It may
bO,- an intrinsic or more properly expressed, a la-
lelrvaltie like the precious metals, or have merely a
a
141jrsentitive value, or character, as our bank notes.
ecjiiiither case money represents labour, which, ac-
tee-ng to Adam Smith, is the one true represen-
el,'" of wealth, and fixes, by the action of supply
Roj,4
dentand, a value upon all and every commodity,
The natural
included
gee natural instincts of man have created a
4'e
tr, ral prejudice in favour of gold and silver as
se., `;_ Many reasons are apparent why this is
lirt.-Lneie purity, and freedom from depreciation
baitlle, are among the most cogent. Their porta-
Y,ing beauty, and uses in ornamentation, (an
co
Airs.tion from Heaven) all have their weight in
tr,rating this prejudice.
aviebanY system of currency to be established, it
anal 4e found necessary to keep these facts in view,
of make provision for a practical convertibility
etli,,eur paper issues into specie, as prejudice so
tie,.sal cannot be overcome by any abstract
Abe ea, however perfect. If we can so reconcile
Prejudice here referred to, with the necessity
'aecele enlarged circulation of paper money, not
the 'saraY based upon gold and silver, but upon
aaareneral credit of the nation, and the individual
Sama Whichhas capitalised that credit, and at the
tee: tirae prepare ourselves for a practical
leho-ertibility of this paper currency into specie,
le :I!ever individuals may require it, for any
itZtiniat!, purpose of trade or 'commerce,
tiisc,our
tell, duty to attempt it, and not be deterred by
daily fears, prompted by interested persons, who
nld us, that we must be satisfied with the
TiotiortillY In Threadneedle street, whose antiquated
Toe e s
hare proverbial, and eau only be accounted.
RiviuY deep interest she and others have in
tbaritllth°Be golden fprovorbs, a larger circulation
I.l„'ven her paper issues.
dietuse the time has happily gone by, when the
Informedil,2f :‘ (Mercator)" my Lord Overstone, as I am
eletelev, „,ta the Times, endorsed by fussy . Mr.
erii," c","son of the Economist, that because the
:fire rr,- iellii-'24lagland exhibits weekly, forsooth, four or
fore in'''Zna of notes in reserve, we aro not there-
sent exa,-,41:4 °fatty more paper money than at pre-
peopte-";;,,,,j5' and by this specious reasoning the
-lila expect by
to be hoodwinked.
11f Coi aolis to Mr. Glyn and others in the House
the cilara°", on Friday last, on the occasion of
Clancellor of the Exchequer moving for tle
rulent of a select committee, to enquire into
lnk Charters we are not likely to have this
'ol,;4,seet, SO vital to all the permanent interests of
the. ,ountry,glosscd over by the great monopolists of
d
tae.L. ay •—namely, our great private bankers,
ate,llll4 Up the Bank of England, with whom they
ate-,ratio ne. in this matter. Now that the public
ailiien is attracted to the subject, we shall have,
% in committee, such a complete ventilation of
aies;1171;ole subject, as must eventuate in the adop-
li4t of some system more in accord with the en-
aiurcelled views that have at length been corn-
oated to the public
•
Works Patent to all, that no extensive permanent
Neva, of a domestic character, such as
public or
and le,buildings, improvement of towns, drainage,
or e:tuer improvements in the cultivation of land,
eh
lea railways, all of which are necessary to give
laheue
eYtnent to our starving artisans and skilled
/st 'a 4c/ers, now so clamorous for food or employmentl
e t 'll.)ney, which, for purposes such as these, is
e~potPlieed
at long dates, is not to be had even for
11(le larY Purposes, varying from fourteen to
tlirij ninety days, at less than 7 per cent per
4'lo' This is the way to look at the restrictive
Neei'nef the Bank of England, with which some
4t the bareso infatuated as to be perfectly horrified
"ti idea of a change.
rtiq„,_
ty
jrtte that for commercial purposes an
ot value may exist, under pecu ler
e4tistanees of mercantile activity, which renders
el`tlea, eof money at short dates of comparatively
4;114 ro°,4lent ; but even this wilt he effected in time.
eektet, that which concerns our permanent, andi
t.ittleotp,4°. interest, such a high price formo
tv) erei;',° the extreme, and must not be alnleywe.dds
41'4,6 one moment longer than we can ri
stone•." of such an incubus upon the vital
ners
0 the nation, and which, if estimated in ,1
ylea alue; will be found to represent a loss of
„4,kietat aftrnaillious per annum to the domestic
i'qy, ;3' and energy of this labour-loving commu-
.'Nie in" all to enable a few score of banking
'llitena" divide from ten to twenty-six per cent. per
so,Poll their capital. There is an old adage,
tiNiedelY has a tendency to grease the fat pig
it; oie
euepie e• If our Government do not assist
rater in removing this worst form of monof-
'Y will justly deserve the withdrawal o
°"ncleri et, fi co.
T.ll, in "licial reformers who go for direct taxa-
fe-941 order to release our customs and excise
:ti obstruction to the freedom of exchange
litetitle nations of the world, ought rather to
.11-I,llthaerrrt;te their energies on this, the great bar to
that as to domestic, development; and
-10-' is done with we, the people, shall aid
it is
reatablishing complete commercial freedom
-0411(leurather strange to see men who are willing to
ehllese!tlartufacturee to all markets for exchange
. erfrightened at the idea of seeing gold
liklaestin pro
for similar purposes; as if any
10, VP eaort of ours could restrain these which,
ti ;tl'` al r, always seek to find their level, and
b • go where they are required for the
Yet we must well know that in due
th.mlno4 will return again to purchase these
fiflf' Ivan -led Which their presence always prompts
-ttta't,f.
11,,,11te Bishop Berkley laid it down as a
b4;lvitle;lt° be impugned, that a nation could
,qietel Del, gold ; but the witty and instructive.
ner rote ''e went further, and has shown, in his
hind
.wits of Robinson Crusoe, that gold may
or's found of less value than the clay with
w(i'veoleaurs" made the pipkin to stew his food ;
tltikhr(eeee from history that an ancient colony
at t;'oueeeuanged their gold for the iron of their
taro tfeie' changed
afterwards, with the instruments
t the iron which they appeared to
rtblv: •asecl 80 dearly, came and possessed
gold also' . America is sending
()Ittr irient.tt nernalleh gold as we are passing to the
erilig.th,e East, but they do not, like us,
rant -gore,
la 18 (train ; they get from us what they
cottons 4irtelY, iron, salt, coal, earthenware,
uNtl,itnd the' d woollens, &e., ac., in exchange
thee.,-J a'Bo know and feel that it will-come
7- again. whenever they require it, and