The Sun.
London, England, 1855-12-13 00:00:00

MR. SALT ON THE CUR ENCY.

The following letter has been addressed tc' the
Editor of the Times :

Sir,—l think your comments on my sayings at
the meeting on the Bank Charter Act give :me a
claim for a space in your columns for explanation.
You say that I " tantalise you with a promiise of
safe but inexhaustible riches," and you assume) that
a regulated issue of paper money would not give
the honest labourer full employment at remunera-
tion prices.

Thereon your imagination indulges in ant amus-
ing picture of a Chancellor of the Exchequer -hunted
home by packs of countless thousands of Man-
chester spinners, Dorsetsbire labourers, Spibalsfield
weavers, distressed needlewomen, &c.
Witty if you will, hut pray keep in mind that a
spice of wisdom would not mar your wit, amid that
all decent feeling of humanity must for a Eloment
have slumbered, when you could enumez Ate so
lightly classes whose very names call up r acolleo-
tions of suffering, neglect, and social crime too
strong for words.
But to return to your Chancellor hunt. ►hat
are the facts ?

A diminished issue of money has invariably re-
duced employment and multiplied deputations,--
set all the packs in full cry ; while an increased
issue of money has invariably increased the em-
ployment of labour, put an end to depiatations,
dispersed the packs, and left the Chancelkr alee -
ing undisturbed in his form. During these, re-
laxations of the money laws the deadly discords
between the Government and the people have
ceased ; even Chartism has been voiceless, and the
governing and the governed seem to have forgotten
each other's mutual existence.
But you appear to doubt that such will be the
result of an increased issue of legal tender. Let ua
see what will become of it.

It will not be locked up, because, while it is so,
interest is forfeited and capital also, as much aso
if it did not exist. Therefore it will be made tiome
use of. Now, the ingenuity of man cannot cl.avise
a mode of employing money without employing
labour to that extent ; and if the issue of money
be maintained, the power that creates wealth. will
always effect its distribution, ministering equally
to national wealth and individual happiness,, apd
what you call one of my "delicious moments"'
be so far perpetuated.

But a fear crosses your mind. " Who," say yi ?up
"is to stop the floodgates ?" I ask, who fat )P5
them now ? The law I Have we not 14 mail° 135
of legal tender paper issued on debt-14 millions
of paper convertible into gold, without an mint 3e of
gold to satisfy the promise ? You see, sir, that the
system you uphold is not a pure and perfect airy-
solite. It is the law and not the gold that lii vita
this issue, and closes your floodgates.
Then comes the question—Why was this amount
of inconvertible paper fixed at 14 millions ? Be-
cause it was needful for an indebted Govecnunent.
But shall there be no honey for the people , and
would it not be more creditable that the necei ;sities
of the governed should be considered as w ell as
those of the governing 7 Is it the end for v rhich
Government was created that it should take ca re of
itself, and utterly-neglect and damage the init Tests
of the people ?
You say " there is a force and simplicity in the
words, I promise to pay on demand."' is row,
will grapple with you on that point, and show that,
taking these words in the sense used in the Bank
of England note, they contain more of fraud, folly,
and mystification than any words in human lan-
guage._ . _

lilt) law assames assigning to the promise to pal
a definite quantity of gold, it fixes the value of the
note. It does no such thing as fix that v slue.
Abundance and scarcity are the only regulators of
value. _ _

By the issue of paper money, in addition to gold
money, money is made more abundant ; abundant
money creates confidence, investments are multi-
plied, a vast quantity of bills at a date are created,
this increased quantity of money and the increased
rapidity of its circulation lower its value, till the
exportation of gold and the withdrawal of the
paper again lower the prices, and so all trade is
made an alternative of speculation and ruin ; honest
industry is sacrificed, and the 'watchers of the turn
of the market alone thrive, and this is the plain
and simple meaning of " I promise to pay."
From an inherent necessity the use of paper
money has grown in proportion to the progress of
commercial civilisation, till it bears a dominant
proportion to the use of metallic money, that the
metallic money, though it can disarrange, is power-
less to regulate.

fi g i*-- r;
t ffr: I,v S'r PoLert. Pet'l'
Lill is pure Jack ea,deisin. If fixing the price
fixes the value, why not fix the price of every-
thing ? Why
not fix the price of bread at ld. the
quartern loaf? Simply because fixing the price
does not fix, but merely disguises, the fluctuations
in the value of our legal tender—fluctuations which
arbitrarily disturb and alter all other values.
Hence the frequent ruin that has broken up our
our wealth, our insolvency, and our pauperism
alternately the wonder of the world.
filionoo it in that the Times, Awakened from its

" delicious dream," has to guess and wonder
whether wo shall get over the 4th of each month
without the suffering and humiliation of vast in-
solvency ; to watch with sleepless vigilance the
condition of the gold in the Bank coffers, to be
racked by hope and fear if the arrivals from Aus-
tralia be delayed a week ; to be agonised by an
east wind. All because we persist in staking our
existence on the possession of gold, and at the same
time in supporting a law that renders it impossible
we should permanently retain it.
I Pay the law prevents the possibility of our
keepinr, possession of the gold.
Gold money and paper money will not for any
length of time circulate together at equal values.
There are two distinct values in the coin—the
egal tender value and the metallic value, and these
Flo net coineirie, but vary inversely to each other.
Thus, supposing a large quantity of metal to be
taken up by the Mint to be coined and issued, the
bullion would become scarcer and rise in value,
while the legal tender would become more abun-
dant, fall in value.

At Melbourne, when coin bad beceme very
scarce, an ounce of coined gold actually commanded
an ounce and a third of uucoined gold of equal

fineness.

While the monopoly we have assigned to gold
raises its value as metal, the issue o legal tender
paper, making legal tender more abundant, lowers
the value of the legal tender. The price of the
gold being fixed by the law which binds the Bank
to take all the gold offered at 3/. 17s. 9d., and to
pay it out at 3/. 17s. 100., this alternation in value
of money is, for a time, only indicated by the rise
in value of all other articles. This rise stimulates
large exports. The importer looks around for his
returns, all commodities have risen. We are under
no engagement to supply iron, lead, tin, or any
other article at a fixed price, except gold. We
thus bribe the foreigner to take our gold instead
of our goods. The gold being gone the Bank is
compelled to reduce her issues of paper. Eight
hundred private and joint-stock banks are instantly
afflicted with the cramp, and seek to lock up the
remaining money by increasing their reserves.
Now, as unreduced debts cannot be paid by re-
duced money, this phasis of our system is equiva-
lent to a general decree of loss or insolvency against
all who by commercial enterprise have been con-
tributing to the welfare of the country.
_ _ _ _ .

Just at this moment the watchful Times advises
caution, recommends all to limit their transactions,
which means limiting employment, which is
limiting the life of the labourer. It is equivalent
to a procla3.ation through the land, " Now get ye
to the workhouse or to your graves." No other
resource is left to the labourer thrown out of em-
ployment by this fatal system.
Even the press, the tardigrade press generally,
is beginning to inquire into a system which becomes
daily more incompatible with the advances of com-
mercial civilisation.

It is impossible much longer to bind industry and
its complicated divisions of labour down to barter
—nay, what is worse, to a monopoly of tartar for
gold. Free trade will not tolerate this bondage.
The paper system, which the instincts and neces-
sities of the people have continually enlarged, can-
not longer be permitted to rest on the narrow basis
of gold, rendered unstable both by the law and by
the increased rapidity of communication with
foreign States. A foreign loan or speculation, a
short harvest, a telegraphic despatch, anything, in
short, may, by causing a sudden exportation of
gold, derange our whole commercial system. I
scarcely need recall to your mind how
frequent and fatal such panics have been,
how fertile of insolvency, misery end crimes,
and that in the depth of our ruin and the
triumph of our prosperity the amount of our wealth
was exactly the same, but disorganised by the failure
of our monetary system. It will be well for the
Times seriously to consider whether it will be be-
coming
its rank and character to be the first to err,
the last to learn, in a matter so deeply involving
the interests of civilisation and humanity.
It is a vulgar error, that the value of legal tender
money depends on the obligation of the issuer to
redeem it in gold, or to redeem it at all, or to give
any security whatever.
The value of wheat depends on the fact that it
ministers to the great human necessity of satisfying
hunger. The value of legal tender depends on its
legal power of ministering to the equal human
necessity of satisfying debt, and in both cases those
values will vary exactly in proportion to their abun-
dance and scarcity relatively to the wants of man-
kind. To satisfy debt is the sole function of money
and the sole element of its value. Money ought
not to be merchandise which can be melted and
robbed of its vital function as the canceller of debt.

Instead of " the promise to pay," which appears so

simple and definite to the iimes, it is payment
which is more simple and definite still. The only
problem to solve is to maintain it in such quanti-
ties as shall be in harmony with the just require-
ments of industry.
What are the conditions we seek? The first and
most sacred right we have to protect is that of the
labourer to full employment. I have shown that
increased money of necessity increases employment
and sustains prices. A sufficient issue of legal ten-
der money will give full employment to labour,
producing the greatest amount of national wealth,
and the money that produces the wealth will al-
ways be able to effect its distribution, securing the
greatest amount of national happiness.
In 1853, with abundance of legal tender money,
labour was fully employed in every branch through-
out the kingdom ; all the classes you have enume-
rated were happy, prosperous, and contented. Every
man was his own Chancellor of the Exchequer.
The air was every where resonant with the music
of gipsey parties of the labouring classes, there was
joy and contentment throughout the land, and the
workhouses were empty. The Bank of England,
under the compulsion of the law, reduced its issues,

and at the present moment the workhouses and
gaols are altogether insufficient to contains the
paupers and criminals ; our wealth and means of
wealth being identically the same, the derange-
ment of our monetary system alone disorganises
every interest.
The Times has fulfilled many a mission of
humanity and justice ; I still hope it will look
More deeply than it has hitherto done into this
all-important question, and that it will enter its
powerful protest against the happiness of the
people being longer made the sport of an obsolete
theory.---I am, Sir, your obedient servant,

J. C. SALT.

AUSTRALIAN DIRECT STEAM COMPANY.—The ad-
journed meeting of the Australian Direct Steam Com-
pany (vid Panama) took place yesterday afternoon, when
it was agreed to postpone further proceedings to enable
the directors to consider an offer for the transfer of the
undertaking to influential parties at Liverpool, who in-
tend to carry out the objects of the company.
MEXICAN AND SOUTH-AMERICAN COMPANY.—At a
half-yearly meeting of this company, held yesterday,
Mr. J. D. Fowles president, a dividend of 7-. 6d. per
share was declared, free from income tax, and the re-
port was adopted. The progress of the works is stated
to be satisfactory, the quantity of pure copper shipped
from the Ist of January to the 16th of October having
been 2,974 tons, against 2,400 tons during the whole of
the preceding year. With regard to the produce of
silver, it appears that the experiments conducted under
Field's process have failed, but that the reduction of
argentiferous regulus and the other branches of the
business continue to be carried forward.
THE NORTH SHIELDS AND TYNEMOUTH DOCK.—A
meeting of the Town Council of Tynemouth was held at
Shields on Tuesday, when it was unanimously resolved
to forward memorials to the Lords of the Admiralty and
the River Tyne Commissioners in favour of the proposed
North Shields and Tynemouth Dock.
THE LATE FATAL COLLISION ON THE GREAT WESTERN
RAlLWAY.—Yesterday Mr. Wakley, assisted by bis de-
puty, Mr. Brent, resumed and concluded a twice-ad-
journed inquiry, at the Beaumont Arms, Shepherd's
Bush, touching the death of John Moore, a breakeinan,
aged 40, late in the service of the London and North-
Western Rai'way Company, and who was killed in a
collision at the crossing junction of the West London
branch of that railway, with the Great Western Rail-
way, near the Acton cutting, as already stated. The jury
returned a verdict, that the deceased was killed through
a collision which took place on a level crossing on the
Great Western and North London Railways at Hades-
don-bridge.

- TRH LATE FATAL EXPLOSION IN WOOLWICH AR-
SENAL.—The adjourned inquest on the bodies of James
Wallace, Henry Laugha►n, Wm. and Thomas
Holland, was concluded yesterday, at the Gun Tavern,
Woolwich. The jury, after some consultation, returned
the following verdict :—" That the deceased expired
from injuries received by the explosion in a rocket shed,
and the jury were of opinion that due precaution had
not been exercised in an inspection of the tools used,
that slippers should be provided for the workmen, that
sheds should not be so close together, and that the pro-
cess of finishing rockets and sifting the composition
should not be carried on in the same shed. _ _

__-
The war steam paddle-transport Telegraph arrived at
Southampton on Tuesday. She is fitted up for convey-
ing about 60 officers, a few troops, and about 250 tons
of light stores. She is remarkably fast, for although her
tonnage is only 819 tons, her engines are 450-horse
power, and she is admirably adapted to carry despatches,
or for rapid transport of sick and wounded troops.
Thy! ne N rs!-.serir,t,on of :tort rsf , biro: •t...vc bei't
fittc.l `•,%.,, It= ; •h, =ll' 2?.• •0
Shoeburyness, has been taken't.i pieces, and the four
pontoons, which are in a dreadful leaky state, have
been towed up to the contractors, Messrs. Seaward and
Co. for repairs and to be strengthened, as they are
found to be manufactured of iron not thick enough to
stand the concussion.

HERESY AT OXFORD.--It is stated that Dr. Mac-
bride, the Principal of Magdalen Hall, and the Rev.
Mr. Golig-htly, Of Oriei Collt..,ge, a,ve lodged with the
Vice•Char.cdior of Ch;',-v:J.L7t:ivc,:.i :ti' I,:crin!
against a work of the Professor of Greek, Mr. Jewett,
seeming to deny the doctrine of the Atonement.

MONEY MARKET

AND
COMMERCIAL IrTELLICIENCE.

CITY, Two O'CLOCK.
The Liverp-Del Cotton Market yesterday closed
very firmly, and the prices of American and Surat
were id. per lb. dearer, but all other kinds were
unchanged in value. The sales were 8,000 bales,
1,000 of which were taken on speculation. They
comprised 200 Pernam and Mazanham, 6i. to
61d. ; 150 Bahia, 64. to 61d. ; 2GO Egyptian, 52d.
to 7id. ; and 1,200 Surat, 3d. to qd. per lb•
The Railway Share Market was steady, at about
the currency of Tuesday.
The letters received from the textile manufac-
turing districts do not report any improvement in
the condition of trade ; and as the stocks are in-
creasing a downward movement in prices will most
likely ensue. Wool and cotton have ruled rather
firmer, but this has had no effect upon the current
values of manufactures. In Manchester; stocks
are limited of cloth and yarn, the supply of the
latter having been reduced in consequence of the
strike. Many of the mills are now working "short
time," and the quotations are expected to advance.
In the wool market, at Halifax, there has been
more animation, and prices tend upwards.
The state of affairs on the Paris Bourse continues
unsettled, and buyers are not inclined to make
large investments. Speculators for the fall in the
railway market have it considerably under their
command, but many are afraid of Saturday next,
which is settling day. Compared with the previous
day's prices a further decline occurred yesterday
in East of France, Lyons, Great Central, and
Western, of 2f. 50c. to sf. per share. Bank Stock
is firm at the advanced quotations of last week, and
continues to rise, while the shares of the Credit
Mobilier are still falling. In French Rent es a de-
cline of 50 centimes has taken place in the 4i, per
Cents. for money, and 30c. for the account ; and
in the 3 per Cent. Stocks 15c. for money, while for

the account no alteration has taken place.
Telegraph accounts from Madrid state that the
payment of the second quarter interest on the Na-
tional external debt will take place at Paris and
London on the 15th inst. It is announced also
that the Government of Mexico has suspended pay-
ment of the Spanish debt. Propositions are stated
to have been made by the Grand Central Railway
Company of France, relative to the Madrid and
Saragossa Railway, which have been accepted,

The subscriptions for the sum of 15 million
florins allotted to the public, out of the proposed
capital of the New Austrian Bank of Credit, con-
tinue to increase largely, and an enormous list is
expected to accumlate at the close, on the 15th inst.
It is stated that the subscribers both foreign and
local are people in affluent circumstances. The
New Bank Shares have risen to 117. On the
Vienna Bourse, however, business was excessively
dull, the public funds were declining, all kinds of
shares were freely offered, with few buyers, and
money was getting scarce again. It is evident that
the recent improvement in the money market was
but temporary, and the foreign exchanges are on
the rise. On London it has advanced from 10.4 to
10.42, and on Paris from 127 to 128.
Favourable accounts have been received from
Belgium of the improved traffic returns on the
principal lines of railway. The receipts for the
month of November, on the Antwerp and Ghent
line amount to 50,472 fr. this year ; which com-
pared with the same month last year show an in-
crease of 6,899 fr., and 'that with 1853, is 4,346 fr.
greater.

Accounts from Witettin announce that the frost
had set in there with such severity that the navi-
gation from thence to Swinemunde was declared
to be entirely stopped.
The question of constructing a canal to Kos-
tendje has been again on the tapis. The represen-
tations of the company formed to carry out the
project have definitively settled with the authori-
ties at Constantinople, and everything has been
signed and sealed to the satisfaction of all parties.
In Public Securities there is very little anima-
tion, but the market now rules rather firmer than
at the commencement of business. The reported
surrender of Kars, and the increased inquiry for
discount accommodation for the Turkish Loan
instalment, due to-morrow, and that on
the English, payable next Tuesday, have de-
pressed the quotations and limited specu-
lation. The latter cause of uneasiness may
probably soon be removed, however, and many
are now inclined to attach less importance to the
intelligence from Kars than they did upon its arri-
val yesterday. Owing to an idea which gained
some ground that the Bank of England would re-
duce the rate upon long dated bills, the Funds im-
proved, but as this step was not resolved upon at
the directors' meeting they have again become
rather flatter. Consols which had been 88i 1 rose
to 881 and at one period were nearlybuyers at the
881, but they are now 881 f. New 3 per Cents.
are 88i to 89, and the Reduced, 88 1 1. Exchequer
Bills are 7s. to 3s. discount.

The Foreign Securities have continued in a
quiescent state, and the fluctuations in the quota-
tions have not generally been of importance.
Turkish 6 per Cents., however, have advanced to
83i and 83i, and foraccount the prices have reached
83i to 84. Nothing has been done in the New Scrip.
Russian 5 per Cents. are 2 per cent. lower than
on Tuesday, namely, 961. Brazilian 5 per Cents.
are heavy at 98i, the New 5 per Cents, at 97k,
and Danish 5 per Cents. at 101. Dutch Bonds
rule steady, the 24 per Cents. being 631, and the
4 per Cents. 94.

The following are the nominal prices of foreign
stocks : Grenada Deferred Bonds, 61 to 7 ;
Mexican, 19 to I ; Peruvian, 74 to 76 ; ditto
Three per Cents., 52 to 64; Portuguese Four per
Cents., 41 to 46 ; Russian Five per Cents., 97 to 99 ;
ditto Four-and-a-Half per Cents., 88 to 90; Spanish
Three per Cents., 39.1 to ; ditto Passive, 7- to
71 ; ditto Deferred, 201 to ; ditto Certificates,
4i to B.

This is "ticket day" in the Railway Market,
and the adjustment of the account is in progress.
Money is dear, and the rates of " contaugo " are
in most cases heavy. Caledonian and North-
Western are rather higher. Great Western of
Canada have advanced about Foreign Shares
are neglected. _ _

Mining, Banking, and Miscellaneous Shares are
without alteration.

BRITISH FUNDS THIS DAY AT ONR O'CLOCK.
I Prom Ur ()Nasal
Ru One.. flab
3 per Cent. Reduced Annuities B3l
3 per Cent. Consols Annuities Shut
New 3 per Cent. Annuities
Long Annuities, expire sth Jan. 1860...
Ditto 30 Years, expire sth Aprl, 1885 l4 5.16
India Stock Shut
India Bonds, £lOOO
_ _

. _
Ditto, under £lOOO 3 6 2
on,ols for Account BBi i x d
Ecchequer Bills, 2icl.
• n.OOO
_ ..

'mall
Ditto Bonds, 1858, 31 per Cent 97i 81
1859 ..... .. 971 81
PRICE OF FOREEIN FUNDS AT ONR O'CLOI K.
Brazilian Bonds, 5 per Cent. 93) -
Ditto Now, 5 per Cent., 1829 and 1,839. 971
Danish Bonds, 3 per Cent., 1825 — .
Ditto 5 per Cent la
Russian Bonds, 5 per Cent., 1822, £ St 96i
Turkinh Rends, li par cent §34
Ditto for the Account B3l i 4 31
nividends 0,, the above navibl. in tond,us
Dutch Exchange, 24 per Cent., 12 Gail 63i
Ditto 4 per Cent. Certificates 94
Consols..

TWO O'CLOCK.
881 i

DEATH OF JONES THE PIIGILIST.—The prize fight
which took place on Tuesday between Madden and Jones
has terminated fatally. One of the principals in the
affair, Jones, died yesterday morning, at Long Reach,
from the injuries he received during the fight.
SUICIDE O' A DIPLOIIATIST. —A letter from Copen-
ba,i.% ;,,r,nonlices thc, death of Mr . Valde. the Chlrgd
j , portumi in that city. fie had suddenly
disappeared, as already stated, on the very day he had
been a geest at the dinner given by the Court in honour
of General Canrobert's arrival. His body was after-
wards found in one of the canals of the city. It is be-
lieved that he committed suicide in a fit of mental abe-
ration. -

THE PRESS AFLOAT.—A singular compliment is about
to be paid to Mr. W. Roseell,
_of the Times. The larnest
vessel evcr built at Wett itr!,ttleprl will ,lort(y tic
laurchca jul'a lilt, well-liLown
shipbuilder; and will be called "The Tunes' Correspon-
dent,"