The Sun.
London, England, 1855-11-24 00:00:00

BREAD.

The prices of wheaten bread in the metropolis aro from
11d to 11,d; of household ditto, 9d to 100 per 41b loaf.

HIDES AND SKINS.

Market hides, 561 b to 641 b, :lid to Od ; 641 b to 721 b,
to 4d ; 721 b to 801 b, 4d to 41; 801 b to 881 b, 01 to 40;
:58lb to 961 b, 44,d to 5(1; 961 b to 1041 b, 5d to s}d ; 101
1121 b litld to Gd ; upwards, Od to 01; Horse hides, Gs
bd to Os Od ; calf skins, light, 2s Gd. to 3s Gd ; ditto, full,
Gs 6d to 7s Od ; Polled Sheep, Is 3d to Gs 9d ; Rents, 4s
3d to 5s 4d ; Half-breds, 4s 3d to Is 41; Downs, 3s Od
to 48 Od ; Lambs, Os Od to Os Od ; Shearlings, Os al to Os Od.

THE WAR AND OUR RESOURCES.

TO THE EDITOR OF THE SUN.
" Commerce furnishes those means by which war may be
successfully carried on in such a manner as to cause a safe and
honourable peace."
These words of Lord Palmerston, on a late public
occasion (Guildhall Banquet), are deserving of the
gravest consideration under the circumstances in which
the country is placed.

The resources of England for the vigorous prosecution
of the war depend on the prosperity of our commerce.
Yet, at a time when commerce is in as sound a state as
ever was known, and no pretence exists for depressing
the prices of manufactures on the plea of speculation,
that commerce is in course of prostration by an artifi•
cial value given to money.
Exorbitant interest is imposed on trade, in the vain
hope of enabling the Bank of England to recover the
treasure it has lost under an absurd act, which, fixing
the price of gold in this country, offers, during war, a
premium on its exportation.
Nor can it be wondered at that gold should go abroad,
when we hear " that the allies are taxing all the
wealth and ingenuity of the civilised world to secure
subsistence."—(Times, Nov. 21.) The fact is, that the
requirement of Government for payment of supplies to
our army is at the rato of about half a million a month,
and that about seven millions in gold have been already '
sent to the East for that purpose—that the requirement
of France is nearly double that amount ; and that none
of this gold returns, or ever will return to the West,
being hoarded by the natives into whose pockets it finds
its way, in the absence of Banks and means of invest-
ment.

The consequence of the drain will be to leave us
shortly without any circulating medium, and in the ab-
sence of gold, under our laws, to reduce us to a state of
barter. Hence the declaration of the Times several
weeks ago, that if the war were to be carried on with
vigour, a change must be made in our monetary system.
Now, as the Times is looked upon by many as an
authority on these subjects, I am desirous, at such a
crisis, to invite attention to the question that journal
has lately raised, viz., Whether the War or our Cur-
rency laws must be abandoned ?

This is the upshot of the declaration referred t,); but
to open the case fairly, I will quote the entire para-
graph.

`; The question whether the war expenditure is beyond
the means of the country must be boldly met. If it be
upon a scale to involve a permanent drain of gold, there
is no alternative but to lower it, cr to prepare ourselves
for that mitigated form of national bankruptcy which
consists in a suspension of spehio payments."—Times,
Oct. 5, 1855.
The alternatives announced are—curtailment of our
war expenditure on the one hand, and, on the other, the
abolition of an act which is crippling our commerce, and
destroying our energies.
That a journal whose pride it is to support a just and
necessary war should have hesitated between these alter-
native•, is certainly matter of surprise. Nothing less than
a proposal for the abandonment of Peel's Act of 1844
could have been expected to follow such an announce-
ment. Up to the present time, however, no sign has been
made but of a determination to uphold that act to the
uttermost (see City Article, Oct. 25), while the only
remedy which is prescribed as the alternative of reducing
our war expenditure is stigmatised as a disgrace to the
nation.

Yet the remedy is similar to that which recently car-
ried France in safety through a revolution. The remedy
is the same which carried England triumphantly through
the last war, and by the extraordinary impulse it gave
to commerce, enabled us to double our taxes without
burdening the people.
Were we at that time, it is asked, in a state of national
bankruptcy, even though a principle, good in itself, was
subjected to the abuse of over-issues ?
Are we in a state bordering upon national bankruptcy
now, because our gold currency is liable to be swept
away, and the substitute of paper required?
Does gold alone destitute wealth ? And is all the
property of the richest country in the world of no value,
because we have not gold to represent it ?
This indeed was the language of a late Chancellor of
the Exchequer, who during the last panic actually con-
gratulated the country on the depression of the Funds
and of manufactures, as offering an attraction to foreign-
ers to aid us with their capital. That currency, not
capital, was required, was proved by the immediate
effect of suspending the Act of 1844. The capital sup-
posed to be lost re-appeared in a moment, and bankrupt
England was again the gory "of the world.
The law was suspended then. Why not suspend it
now ? The present alarm would immediately cease.
Orders would not be countermanded. The Manchester
manufacturers would not be ground down by exorbitant
interest, and thus be compelled to grind down their
workmen. Good wages would make the high price of
provisions comparatively little felt. The sinews of war
would be strengthened. Russia would suffer a greater
blow than would result from a series of defeats. Nor
would the absurdity be longer exhibited of England and
France fighting side by side on the one hand for liberty,
and on the other engaged in a ruinous struggle for gold.
What prevents the realisation of these blessings ?
an act of Parharrient—the interest of those who profit
by the fluctuations it produces—a supposition Go-
vernment necessarily understands the subje&, and
that the people need not give it a thought—that it is a
banker's question, and not a philanthropist's—that the
act brings gold into the country, and keeps it there—
that commerce can flourish without an adequate and
steady currency ; that all who deprecate such fond
notions are interested parties ; and that currency re-
formers generally are visionaries and enthusiasts. These
are some few of the prejudices and fallacies which induce
people to hug the chain by which they are enslaved.
As to the Act of 1844, I will only say that it was
passed on very insufficient evidence. These are no new
views. The effects of the Act were foreseen and de-
scribed before it was passed. They are recorded in the
Parliamentary Evidence of 1848 on Commercial Dis-
tress, and in the report of the Lords' Committee.
In the observations made with regard to this Act I
by no means wish to j An in au unmeaning cry against
the Bank of England. She is compelled to carry out a
blind law at whatever risk to herself or the country.
She was told that the currency would regulate itself,
and that in future she was at liberty to consult only the
interest of her proprietors. If; therefore, she has fol-
lowed the rule laid down for her guidance, Sir R. Peel,
and not the Bank, is to blaare.

Whatever difference of opinion may exist as to a re-
medy, all Reformers are agreed in the senselessness of a
system which decreases the circulation, with the increase
Of trade, population, and wealth. A comprehensive re-
medy, however, cannot be successfully proposed till the
country is more enlightened on that subject. In the
meantime we must be content with palliatives.
Suspension of the Act of 1844, with a view to the
consideration of the whole question, is the leant that the
present crisis demands. The Times declares the ques-
tion must be " boldly met," but they have shrunk from
meeting it themselves. A partial remedy, however, I
would venture to suggest—not the alternative, they pre-
scribe, of " a suspension of special payments"—but that
of a convertible issue, founded upon the admissions of
that journal itself.

Inthe City article of the 26th October the subject is
thus treated :—" Supposing the circulation to he re-
quired solely for international commerce, no necessity
would exist for gold being held against any part of it."
It is here adulated that the circulation is twofold, one
portion being required for domestic purposes, the other
for the settlerrint of the balances of trade. Then why
not act upon the distinction ? Why not substitute paper
for a portion of the gold now absorbed in domestic cir-
culation ? Such a limited issue would be in accordance
Fith the rule laid down by Adam Smith, whereby a
paper circulation may actually " bear a premium." The
treasure obtained would celarge our gold basis, and
render our present circulation far more convertible than
it now is, without any gold whatever to meet so large a
portion as 14 millions.
Having made these general remarks on the important
declaration of the Times, I must be allowed to enter my
protest against one obvious conclusion from their pre-
mises—that if the drain of gold becomes permanent, the
war is beyond the means of the country. If this be
true, the nation should know that its disgrace arises,
not from weakness, but from laws, which are mischievous
in peace, and impracticable in war. The drain of gold,
however, is not altogether a legitimate and unavoidable
one, as it is assumed to be. It is in a great measure
buperinduced by that law, which, fixing the price of gold
in this country, contrary to all sound principle, causes
its exportation whenever the market price exceeds our
arbitrary price.

Monied. men in the City, and the directors of the
Bank of England are, it is said, at variance in opinion as
to the possibility of the act of '44 being upheld much
longer, without havoc to commerce, under necessity of
the Bank saving herself " by the ruin of all around her.
It cannot be believed that Lord Palmerston will suffer
this wanton destruction of the resources of w
bo true to himself and to the country,. hewillai If he
oanklye
the
bull by the horns, and throw to the winds, not ot r
glorious
act of '44, but any other impediment
to
ob-
ject in which be is engaged—the attainment ofgious
a safe and
honourable peace.—l am, sir, your ohedient servant,
A BANKER.
Nov. 23, 1855.