The Sun.
London, England, 1862-02-04 00:00:00

OUR MONETARY SYSTEM.

TO THE EDITOR OF THE SUN.

Sin,--The commercial aspect of the nation is, confessedly
by all parties, exceedingly dreary. Stagnation, dulness,
and lethargy are everywhere apparent. And why ? Our
national wants are as great as they have ever been; and
our means, measured by our aggregate physical, mental,
and accumulated capabilities, are not less than heretofore.
Yet, large masses of the people are unemployed; much
wealth is lying inactive; and much besides employed at
considerable loss.
If asked, Why is this ? some reply, The unsettled posi-
tion of the United States of America has seriously embar-
rassed our trade and done us much damage ; some, that
the high price of the principal necessaries of life has been
very prejudicial; others, again, that the taxation levied is
too great for the national vitality or elasticity to withstand ;
and others, that the death of the late much-lamented Prince
Consort has enveloped our industrial interests in the pre-
sent sombre cloud.
Doubtless, these are grave difficulties, and render impe-
rative great consideration before the national judgment is
surrendered to any passing claim. Many are the rumours
which obtain currency that would be scouted if caution and
research were more general. Many bugbears, in such a
case, which now extensively frighten many from their
senses, induce reckless and panic-stricken expenditure, and
necessitate the endurance of burdens too heavy to be borne,
would be divested of their terrors, and appear what they
are—mere chimeras of the fancy.
But, how is it that John Bull attentively and almost com •
placently listens to alarmists, if they but whisper danger
from a foreign foe, and yet to remedial suggestions, the
application of which might eradicate domestic evils, pays
tardy and unwilling attention ? How is it that men grope
in the dark to find costly and injurious expedients to abate
rampant and crying evils, when tried and effective antidotes
lie beside them wilfully neglected ?
At the present moment it is a palpable fact that in both
town and country the population are numerously unem-
ployed, unproductive, and unconsuming ; and trade and
production are paralysed. It is all very well, indeed very
important, to search after every proximate or ultimate
cause of depression or distress ; but not well determinedly
to ignore any one source of mischief or perplexity. To
ignore the baneful influence of our deranged circulating
medium is neither wise nor patriotic. Its evils may be de-
signated " legion." They arise in every direction, and
their bitter fruits poison full many a cup.
Of the many symptoms which this formidable disorder
presents, not one of the least distressing is the stagnation
that now saddens the national mind. Whence this stag-
nation ? Is it an essential element of commercial existence ?
Confidence is gone, and, in its absence, employment and
consumption aro diminished ; and, consequently, demand,
production, and distribution are seriously affected. But,
what disturbs the machinery of trade and depresses the
general mercantile confidence ? The disturbance is always
first caused by the rise of discounts checking trade, embar-
rassing its activities, diminishing or absorbing its profits,
or inflicting losses, sometimes of very heavy amount. And
the rise of discounts—disastrous to our trade, and diametri-
cally opposed to our productive and national prosperit-
in times of trading and commercial activity, and the direct
and certain fruit of our absurd monetary system.
When trade expands, and bills of exchange con-
sequently multiply, and the monetary circulation
requires to be expanded to afford increased facilities
for augmented business transactions, under our pre-
sent system the money in circulation which supports or
underlies the bills, and sustains the trade which the bills
represent, does not proportionately increase, but actually
becomes less in amount from the exportation of gold. The
activity of trade and consequent multiplication of bills of
most unexceptionable character, except under a collapse of
the currency, render the amount of money needed for cir-
culation so much the greater. Such activity causes prices
generally to rise, for their tendency is always to rise till
they reach the remunerative level, above which, with free
home and foreign trade, they cannot be sustained. But
one article of merchandise—gold—is distinguished from all
others, and exempted, by a legally fixed price, from the in-
fluence of such activity, and forbidden to rise in price•
That article, thus fettered, or, at least, partially restricted
in its action, is made the basis of our currency, and has to
sustain the important function of testing, supporting, or
exploding our entire circulating medium, That it too
frequently does the last-mentioned dis-service is far too
well known. Not being permitted to rise hi price, it is
easily, and in preference to our productions, taken by
our merchants for exportation. We thereby as a
people lose the money which should irrigate and
fructify our internal industry and trade ; the money of the
nation is exported, no other being provided in its stead, and
the commodities which we want to export in exchange for
money or money's worth, that we may therewith keep our, people employed and pay our way, accumulate upon our
hands. This process then goes on till exhanstioatand col-
lapse ensue, and crisis, paralysis, and. iii)t-ptcy super-
vein. Then follows a period of great depression, every
body wondering what can be the naltse, but nobody believ-
ing that the currency has anythilig to do with it. And if
here and there a person be 'bold enough to suggest, more
especially to state his belief, that such is the case, he is at
once by many classed with the deluded followers of phan-
toms and nostrums, and supposed to entertain every con-
ceivable vagary.

For some months past we have had a plethora of monoy,
and, judging from the Bank of England returns, and the
low rate of discount, it is exceedingly difficult to get it em-
ployed. This is traceable to the same cause—want of con-
fidence. Confidence, after repeated infraction, is not easily
restored. The same causes being in operation, the same
results may speedily ensue, and hence caution most reason..
able and essential is exercised, although greatly to the pre-
judice of the nation's industrial interests. Those traits of
character and habits of business save from commercial
shipwreck many who, under existing influences, are often
endangered. Yet the exigencies which necessitate not
merely cautious effort, but diminished application, and em-
ployment, are most certainly and energetically-to be depre-
cated. The system which originates those evils cannot be
too much reprehended or too soon revised. It is rotten at
the core, full of corruption, pregnant with fearful disaster.
Its history may be written in tears and blood; and the
catalogue of ills which it has inflicted upon our beloved
country would be of a most harrowing and heart-rending
•
character.

All this may bo easily pooh-poohed ; and so let it be.
But let the votaries of our present system point out its ex-
cellencies ; let them, with due regard to historical facts,
justify it: The advantages by them most generally in-
sisted upon are its severest condemnation. It is supposed
to favour low prices, and to narrow and discourage produc-
tion, than which, for a numerously populated and highly-
taxed community, no greater evils can well be conceived.
But some may possibly start the inquiry—What features
would mainly characterise the system which currency re-
formers advocate ? I may, sir, briefly reply, they would
have money—the medium or instrument of domestic ex-
change—nationally provided upon an elastic principle, in
abundance proportioned to the exigencies of our taxation
and internal trade, and at a rate of charge which should
neither tempt to rash speculation nor deter from well-ad-
vised enterprise, or ruin those engaged in it.
When will Britons, in relation to this question, assume
their true manhood, and look it in the face ? Let them not
further mistake the varying aggravations of commercial
' derangement—such as deficient cotton supply or threatening
war—for the disease which afflicts the body politic ; but un-
derstand that it is deeper seated in its constitution, and can
only bo ejected by a renewed and more healthy circulation
—a more regular and abundant supply of its life-blood—
the money of the nation. Let them know that paper money,
issued by Government under wise regulations for our home
taxation and trade, is in all respects, as a domestic circulat-
ing medium, an instrument for the discharge of manetary
obligations far superior to the precious metals. And let
them demand that it shall be thus issued for value received;'
for public services, interest of the national debt;
Isecurities deposited, au., &o—that it be legal
tender, receivable for debts and taxes, having no
reference to either price or quantity of gold ; and that it be
cancelled upon its return, in payment of taxes, or otherwise,
to the national treasury. Then may the precious metals
healthily find their market price in such national money
and crises, panics,
stagnation,
forad oenvOranbdanideehpreeLioila, m, &c,,at least, of
C H.
universal prevalence, be

Bramfield, Saxmundham, Jan. 28, 1862.

How MR. SLIDELL ARRIVED AT BOULOGNE:—
The Boulogne Messenger says :—." Mr. Commissioner
Slidell—that very expensive gentleman for Englaed—
arrived here by the Princess Maud on Thursday last. The
Wretched weather prevented many of the habitual atten-
dants being on the quay when the boat arrived, and those
few who were there did not know that at least £1,000,000
worth was passing them in wet clothes and cold aspect.
Mr. Slidell went direct to the station, and proceeded by the
first train to Paris," Mr. and Mrs. Slidell are now in Palle:
THE MEXICAN EXPEDITION.—It appears that
the principal Chambers of Commerce in France petitioned
the Emperor to undertake the Mexican expedition. It ii
expected that it will produce most advantageous results for
the money-market, as the Mexicans pay in silver for the
French produce exported to that country. Previous to the
state of anarchy which has so long prevailed in Mexico the a
average annual export of silver to Europe was valued t
125,000,000 piasters. That exportation has been stoe
P ed
or very much impeded during the last two years by b
by the
h
re-
volutionary state of the country. It is believed
a_silvta;
French Chambers of Commerce that the expo
the allied
from Mexico to Europe shall be resumed,
wheel of foreign
troops have occupied it, for the great
of Customs it ing to a report published by the Director commerce, and particularly for the mozaedryvamnarket. Accord-
silver imported into
ap-
pears that the value of the
exceededgeld
on the contrary, the
that of the gold and silver
France in the year 1860
hilane
exported by 154,6,50,020 f.;
exported
value of the gold and from France during
silverhat of the gold and silver imported
the year 1861 exceeded
metals exported to pay for corn,and
by 88,149,440 f. This tdifference is accounted for by the
amount of the precious
by the deficiency in the importation caused by the war fla
America,