The Sun.
London, England, 1864-09-12 00:00:00

LONDON, MONDAY, SEPT. 12, 1864.

Now that the first sensation created by the Bank
in raising itC rate of discount to nine per cent. is
somewhat moderated, people have time to wonder
what can be the cause of that rise. There is no war,

no panic, nor any apparent reason for one ; then
why is money so dear ? Was not the Act of 1844
pa.3sed to keep the money market in a healthy con-
dition, and yet there is as much fluctuation as ever?
Surely there must be something wrong in the act
itself, else why should the evil which it was ins
tended to cure be as frcq'ient as before its enact-
ment, while we hear no cause assigned, but that
the Bank must take care of itself. That may ap-
pear to be sound doctrine, but the Act of 1844
was intended to take care of the public, yet the
public are as much at the mercy of circumstances
as ever, while the bank makes more profit as the
public interests are sacrificed to increase that profit.
Now, if the doctor is to pocket more fees as the
patient suffers more, and yet fails to prescribe a
cure, either from ignorance of the disease or from a
reluctance to risk his character for knowledge, while
his fees are being largely increased, should not
more or better advice be called in to ascertain the
disease or to propose a remedy ? That is the usual
course in private life, and whatever is sound in the
individual case cannot be far wrong in the general.
The public is composed of individuals, and as the
unit makes up the many, what is considered good
for the one cannot be bad for the whole. Such
reasoning is often met by evasion, for what cannot
be fairly answered may be met with doubts as to
its expediency as to the time and the peculiar cit•
cumstances of the ease, or other matters best known
to those whose interest it is that nobody should
know, for though the knowledge of a disease is half
its cure, the knowledge in the present case would,
we are told, be fraught with great public danger.
And so inquiry is baffled, and the disease allowed
to run its course on the assurance that the patient
will come round by degrees, for his constitution is
sound, and all will be as it was before. Just so.
The public are none the wiser save in their pockets
boikg poorer and their confidence rather shaken in
their monetary physician, whoso wisdom is appa-
rently magnified by the mystery of his doings. In-
creasing inquiries are put off with serious looks and a
hint that any explanation at this particular juncture
es ould be very prejudicial to public credit, and
people had better suspend their misgivings a
iit,'l© while longer to see the course of events. The
13anl: Act of 1844 was thought to be so framed as
to meet all contingencies, being founded on the ex-
perience of the past, and able to provide for the
future. But since it has been in operation, it has
not realised expectation nor satisfied public opinion.
What with reserves of notes on one hand, and
gold in the issue department on the other, the pub-
lic are kept in doubt as to the real position of
affairs. Matters look better or worse just as rumour
/Milts the finger of suspicion one way or the other,
and the funds go up or down just as the barometer is
inflaenced by the weather, and so the rate of discount
varies as the amount of gold or bullion increases
or diminishes in the coffers of the Bank. But the
true cause of disturbance is the fiction of making
a fixed standard for the price of gold, while every
°tiler commodity rises or falls according to the de-
mand. Why should the value of
£3 17.4. 1091. the oun,a when itsgold be fixed at
real commercial
value is wbrth £5 er £6—froqueutly much more ?
We talk of freedom of trade—its immense benefits
and the expansion of trade resulting therefrom, and
yet we withhold that freedom from the very soul of
all—the pivot on which commerce, trade, and
public credit turn. It seems a mockery of frf elem.
Thep, again, the amount of the circulation is far too
limited for the public wants. We aro chained
down to the extent of our commerce in 1844
while it has increased more than threefold,
and is still expanding. Why not enlarge
the medium of value accordiugly ? But this does
not rest with the Bank directors; it is the duty of
the Government, and Government will not move
unless pressed by public opinion. There is another

item which seems to 'aamper the action of the
Bank with regard to ',le circulation. The Govern-
ment owe it a debt of fifteen millions, which is set
down as public security, and fetters the Bank,
while it paralyses the freedom of the Government.
It were far better to pay off that debt and leave
both parties free and independent agents, which
they are not at present, nor ever will be while the
Act of 1844 remains unrepealed. Indeed, its
operation has been suspended on two or three
occasions by the pressure of circumstances,
and the Government appealed to for aid. Sorely
such necessity ought not to occur if the law were
sound and competent to meet the requirements for
which it was made. Alt. GLADSTONE is a great
advocate for free trade, and deserves well of the
public for his exertions in that direction, but his
labours avail little while he leaves money fettered.
He has a glorious field now open for his ambition.
Free trade in money will do more to raise the cha•
ratter of this country, and to increase its resources
than all he has yet achieved by his commercial
treaties, and we trust he will boldly take up the
subject. By the operation of the Act now in force
the public are made to pay twice as much
for discount as they would otherwise, and
the Bank profits just in the same pro.
portion. The Bank issues notes of five pounds
and upwards for the convenience of commerce—why
not paper of a smaller amount for the benefit of
trade ? Scotland has been converted from a wil-
derness into a garden by the agency of one-pound
notes. Why should England be debarred from the
use of a medium which has so greatly benefited a
sister country ? We have gold as the currency, and
whenever the amount becomes low the 13ank raises
its value, in order to check its circulation, and this
paralyses trade. We do not blame the Bank directors,
it is the system we condemn. The authorities of the
Bank are placed in a very unenviable position by
the very necessities of their responsibility, but it is
the public who suffer. Let us hope that the Chan-
cellor of the Exchequer will not allow another
session to pass without an endeavour to remedy so
great an evil.

It will doubtless be a matter of no surprise to
many readers to learn that the Government has de-
clined to interfere in the case of the Georgia. It is
only in keeping with the rest of their conduct
throughout the whole course of the American War,
but still it is most irritating to reflect how much
England is rob' ed of her prestige by the pusillani-
mous conduct of her officials in high places. The
fact is that do what they may, the Federals go on
unchecked, and every principle of justice and every
notion of honour are sacrificed to their cause, and
then our Ministers have the assurance to go about
prating of their successful management of the
affair, and laud and magnify their preservation of a
strict neutrality. The Government at Washington
would indeed be hard to please if they murmured
at the treatment they have received at our hands,
and as for the Confederates, their complaints have
been frequent at the inconsistency of the policy of
our Cabinet. Their murmurs, not loud but deep,
have never been attended to ; and in the face of all
comments, in spite of all remonstrances at home,
Earl RUSSELL has gone on his way until he evi-
dently thinks that he can do as ho pleases and say
what he likes. They who take a clear and compre-
hensive view of the matter will, however, pass a
very different judgment upon his actions, and their
criticisms will certainly not conduce to his credit
or redound to his praise. Tae decided step taken
in the affair of the Trent was a striking contrast to
subsequent proceedings. It was the excep!ion that
has proved the rule—" the first, the last, the best"
effort made in the cause of the rights of
others, and cur own national honcur. It is dis-
graceful that the Georgia should be abandoned to
its fate in this sneaking fashion, and great incon-
sistency has been observable throughcut the pro
gress of this affair. If the vessel were not legally
ours, it ought not to have been registered as the
property of an Englishman ; but that being dote,
it was:the bounden duty of the Government to
affard protection to its owner. The fact must be
that no such attempt was apprehended on the part
of the Federals as to make her a capture, but that
having taken place, it is now decreed that there is
nothing to be done but to submit to the doctrine of
chances. The owners must sustain the injury, and
the country endure the insult, while our Foreign
Secretary conjures us to "rest and be thankful" for
the happy and glorious conseauences of perfect
neutrality.

There are some things which are estimable in
themselves, bat, carried on by unscrupulous people,
become positive nuisances. The theory and prac-
tice of Benefit Societies often do not correspond, and
the results of such failures are most lamentable.

There are few ways of losing money more vexatious
and annoying than to be deprived of it by fraud,
and it is indeed deplorable when the working man's
savings are taken from him, and he loses the stock
on which ho had hoped to fallback in times of trial.
It is constantly occurring that some delinquent
is brought up on the charge of misappropriating
sums intended for useful purposes. The worst of it is
that the sufferers do not recover their money, for the
law can only inflict a penalty that visits the crime
upon the offender, but does not possess the means
of restitution. Too much care and caution cannot
be taken to guard against the frauds of these un-
principled speculators, and it is a very bad practice
to jAn those societies which are started by publie
cans—they are often failures, and the matter is
arranged for the purpose of speculation. Large
sums are made by the contributions of poor widows 1
and inexperienced persons. It_is most despicable
thus to trade upon the earnings of the working
classes, and if any feature of a crime can be more
degrading than another, and more hateful in the
sight of Heaven, it must be that class which sucks
in the mites of the poor, and appropriates the dearly
prized and hardly earned products of their toil.
It seems strange that more trouble is not
taken to inquire into the character of the 1
affair before joining the society, but if there were
no simple persons to be duped the knaves would
not be able to reap their present prolific harvests.
Mr. GLADSTONE'S new act is certainly called for,
and it is earnestly to be trusted that it will be
carried into effect, so that the working dupes who
are provident to put by for an evil day may not
incur the risk of being plundered of their treasures.
In no case can they lose by the regulations of this
act, and thus all fear of swindling secretaries and
crafty treasurers will be avoided. After the many
painful experiences which have taken place, it will
be the fault of the insurers themselves if they
willingly incur the same risks that have proved so
fatal to others. Let them wait to see the working
of the lICCV
)
their aegniescence rteattl
act Lefore they venture upon these
private attempts, 0
all events, ha more tardy in
the demands of those who go
about to get members for a society
that will benefit
them nominally, but practically, it is to bo feared,
seeking whom they may devour. It is a true saying
that forewarned is forearmed ; and since so many
serious cases have occurred that too clearly demon-
strate the frauds practised by many ( f these mis-
nomers entitled benefit societies, it I ehoves those
whose money depends upon their own health and
strength to look to their earnings, ncl not suffer

them to be swept into the coffers of greedy and
grasping speculators, but turn a deaf ear to the
flattering tales so prodigally vouchsafed, and ponder
the matter over before making the venture. One
sows that another may reap, and surely sufficient
sufferers have trod the way to point out its dangers
to those who, from ignorance and inexperience, may
wish to become their successors. The risk is too
great to permit the experiment to be carelessly
made.