The Sun.
London, England, 1839-09-18 00:00:00

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LONDON :
WEDNESDAY, SEPTEMBER 18, 1889.

It appears by the statements which have been
made on the subject, that the difficulties of the
United States' Bank have been principally caused by
the large purchases which it has made of cotton, or
by the large advances it has made to the growers and
holders of cotton in America to keep up the price
of that article. There seems no doubt but that was
the proximate cause; a more remote cause was a too
eager desire to realise a large fortune, leading to a
miscalculation of the means. A failure in such a
course is only to be looked on as natural retribu-
tion, and we have not the slightest intention to
express any sorrow at the result, or excite any pity
) for men who are the victimsof their own cupidity. We
/ would, however, wish it to be remembered that the
Bank of England has, by somewhat similar means,
reaped large profits for many years, and has ac the
same time been honoured by the public voice as a
great national benefactor. The Parliament has
continued its privilege, and so set the seal of its
approbation to the conduct of the Bank. What
wonder then, that numerous joint stock companies,
both here and in the United States, which, for all
purposes of trade, since the Atlantic has been
bridged over.by sailing and steam packets, forms with
us one commonwealth, should have been stimulated
to tread in its paths, and seek to share its vast emolu-
ments ? Enough to satisfy them all, however, has
not been produced, and their contests to get hold
each of as large a share as possible, has brought on
the ruin of some, and will bring on the ruin of
more.

) We by no means wish to step forward as the
advocates and defenders of scheming speculators;
hut as the shallow part of the public are apt on
every such disaster to call on the legislator for more
stringent restrictions on all who deal in money,
and as the legislator is too apt not only to answer
the call, but to do a great deal of mischief, on the
unfounded supposition that he can prevent the ca-
lamities brought on by over speculation, we
think it necessary to say that he is pro-
bably of the two more to blame than the
speculator. We have already mentioned that
he stimulates the kind of speculation in question
by providing an ample reward for it, in the case of
the Bank of England, and bestowing honour and
confidence on the speculators. But he is still more
instyumental in causing mischief by other means.
There is not enough cf business and profit for all
• but the tariff in the United States, and Corn-laws
in England, are plain and palpable impediments to
productiow, inflicted on this great commercial com-
monwealth by the legislator, which, diminishing the
• quantity of produce, cause the disappointment and
the bankruptcy of the speculators. The amount of
commercial credit which can and ought to be
created; depends, however, altogether on the quan-
tity of produce, and the times in which it is to be
brought to market. By limiting the quantity of
the produce of agriculture, for example, without
,inflicting an exact corresponding limitation and re-
striction on the produce of manufactures—and the
leg.islator has no possible means of determining what
is an equal restriction—he deranges the credit mar-
ket, and makes events mock ad the calculations of
the most prudential merchants. But not only does
the legislator, by placing a restriction on the pro-
duction o.f one commodity without laving a siniiiar
restriction on the production of ;mother, for which
)it is naturally destined to be exchanged, pro-
duce a permanent derangement in the credit
market, lie continually alters and varies his
ta:iffs, and so introduces uncertainty into all the
operat-ons of coonnerce. Without pleading for
speculators, we therefore conclude that the legisla-
tor is more to blame than they are for many of
their in:scalculations ; and that to encourage him to
extend It's power over the affairs of trade, in conse-
quence of the failure of one, or two, or a score of
Backs, i.s a most fatal error, pregnant with those
vets; evils it is most desirable to avoid.

For a long period we have regarded the repeated
failures of tmling peculatifts, as one of the most

y
extraordinar pheLoine.na of modern society. The

- -••-
commercial cc:avulsions of Cie last half century
vet require to be explained. The great business
of mercants is founded ou caiculaCon, and the
natural laws which regulate trade., including the varia-
tions of the seasons, by 7xtending observation over a
few years, are ascertained to he certain. The more ex-
tensive it hecumes the greater certainty there is in the
laws of trade. Yet in spite of these circumst.ances we
have seen our calculating merchants over arid over

again commit as gross errors as a youth in love. It
Was not one who went astray—for that would not
he extraordinary—but whole classes and even whole
communities. Nor have the mistakes been confined
the tie
•coanntinity only. The shrewd American,
..7
'
cautious Dutchman, the hasty French-
hare,
,alalsbew:li as the prudent Englishman,delusions.
Thalternately the victims of similar
eno other ay of ac-
belicounting, We is way for such a series of pheno-
mena, but by supposing that the legislator by his , igllCrallt and untimelng interference °with what he
does not understand Y here
anote
duction, there checkir, stimulating one pro-
one branch of trade, and anon lair ;
Pel, ano h r--
tilloiwng restrictingte
for. tw.rabfilele'lv
has introduced confusion into
which
Which regulate
and
dostroyed that safe and sound rule .
tis dictated by the natural laws
production and exchange. Ai, •
barn we am
blame
then, that the ignorant legislator is more to blame
cJman
deluded speculators for such general failures
ailure
as those we have alluded to, and it is necessaryjust
now to impress this an the public lest the pre:seut
failure should countenance urgent and declamatory
demands for other and more stringent restrictions

on sum:, branches of the system of credit.

of Wme_hiave received the whole of the Paris Journals
It is curious to see how the same dark fetid
stream of abuse runs through all the Tory press. ceivedunuhyayihhee BGes.oi,d,ee_rsninfth.!_netteoln_grsaupnhdicayd.espa_tch re-
eo
nouncin night, an-
The Times, from mere love of vituperation, with-
;pearea(rirtivnal on.t:oi:siuCnAoßfLOysestienrda.Fyr,antchee,
which a
out having quoted a single fact to justify or even
0
countenance its assertion, has accused the Ministers Moniteur of IVlonday contains the following Official
BA ON E T. 14, HALF.PAST ELEVEN, P.M.
of having disgraced and dishonoured the country, communication
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because they did not denounce the plans of
pkteboTO to Don CARLOS. An onoortunitv oc- " THE GENERAL COMMA:itNfaacii:Fizoweß2enzleGrliNedmlLAtirzya DIVISION
isf:ouNr
AFs At. receivediar
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L L ' TO THE IHNISTV
.cgs4. by the Carlist rogues falling out amongst
ea.o
.t, otn,s ,ti? for bringing to a conclusion, la- . " Don Carlos and
lock in the afternoon. Theyy
I:curable:l-* our ally, the civil war which
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Po rcefect, and our troops, and conducted to Sub-
has -Xo.:iting desolated S'pain ; and because
ra
g ra
I The Journal des Debats has.. the following pa-
OUT Minikvis would not foster that war by rejecting :
the ovoltwes GI one of the rogues, the Times de- ..', Anph Evening Journal announces that the Ministry has
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