The Sun.
London, England, 1839-03-11 00:00:00

Concurrent accounts agree in stating that not
less than one million quarters of corn have been
purchased abroad and brought hither within the
last six or eight months. As the whole quantity
was a demand made by this country over and
above its ordinary demands, which are settled by
way of barter, it must in the first instance, though
ultimately it will be paid for by the produce of our
labour, be paid for by bullion. Supposing it pur-
chased at 355. the quarter, a drain of gold must
have arisen to the extent of 1,750,0001. Ac-
cordingly we find by the last returns of the Bank
of England, that the average amount of bullion in
its coffers had decreased since the return of the pre-
vious month by upwards of 800,0001. ; but it was
decreasing before February, and both the Chroni-
cle and the Times state that it is now decreasing
with an accelerating rapidity. The former says,
though without giving any authority for its asser-
tion, that the stock of bullion is actually
very much below the 8,106,0001. mentioned
in the return, while the latter declares the decrease
during the last three months, exceeds any decrease
in the same period of time since the resumption of
cash payments. We apprehend, however, that the
Times commits an error. The return up to De-
cember 11, 1838, gives the stock of bullion
9,362,0001., the return published in the Gazette on
Friday gives it at 8,106,0001., which is a difference
in the stock between the two periods of 1,256,000/.,
and not, as stated by the Times, of 2,439,0001.
But the smaller diminution is quite enough, going
on more rapidly in the last month than in the
two preceding months of the average to deserve
public attention. In conjunction with the expor-
tation of bullion to pay for corn a great destruction
of paper money has taken place in Belgium,
which will require a permanent supply of bullion
to fill up a large portion of the vacuum. As Mr.
POULETT THOMSON'S lying law, declaring the
promises to pay of the Bank of England, the sol-
vency ef which is very doubtful, to be an actual
payment every where but at the Bank counter,
makes those promises the main currency of the land,
on which other paper currency rests, and as the
Bank profess to limit or extend that as the bullion
in its coffers decreases or increases, a considerable
reduction of the Bank circulation to preserve that
body in safety, of private and joint-stock bank:paper,
and a considerable pressure in the Money Market
may, ere long, be anticipated. If, as some persons
say, prices have been kept up by an extended issue
of paper by private banks and joint-stock banks,
and they should be forced by the operation of the
Bank of England to lessen their accommodation,
prices, may be expected to fall considerably, and no
slight degree of mischief will ensue to the holders
of stock of all kinds. We, however, make that ob-
servation in passing ; for our main purpose is to
direct the reader's attention to the effect of the
Corn-laws in producing fluctuations in prices,
through the medium of disturbing the currency.
With a free trade in corn, our demands on other
countries would be pretty much the same from year
of years could not be to year, and on an average