The Sun.
London, England, 1854-05-19 00:00:00

siderable debt to the Bank, and, beyond all this,
had added to its liabilities a large additional sum
in State paper money. So that the total amount
of the funded and floating debt of Austria, at the

w just 1,194,403,317
close of the year 1849, as
florins, and this, too, after deducting the sums
possessed by the sinking fund, and by the Central
State coffers and State receipt coffers for issue and
convertibility. Added' to the diminution of the
double debt (funded and floating), which has
steadily gone on since then, it must be remembered
that some small boon has been accorded to Hungary
after the crushing out of the last spark of the
patriotic flames enkindled by the glorious War
of Independence—a boon, we mean, in this
~,,,i,...—,, by the abolition of the excise line
against Hungary on the first of October,
1850," in consequence of which the Aus-
trial. Monarchy " forms oue single territory
with respect to taxes and customs," by which the
trade and commerce of the Hungarian lands are
said to be greatly favoured, and the proceeds of
taxation of those countries considerably increased.
Since then, moreover, the compulsory services
throughout the empire have been abolished, with-
out indemnity, and at this moment, throughout
the whole extent of the Austrian dominions, the
peasant has become a perfectly free landholder.
These things--particularly at this remarkable
crisis when Austria begins to give some token of
adopting the cause of the allies as opposed to that
of the ArrocßAT—should, we conceive, be re-
membered. They should be remembered now
that Austria, adding to her loan, is apparently
meditating that enormous ingratitude to Russia,
threatened by Prince SOHWARTZENBERG. They
should be remembered—these facts just enume-
rated—if only in compliance with the principle of
magnanimity involved in the suggestion that we
should give his due, even to a certain Gentleman.

Although the Act of 1844 confers a virtual
monopoly on the private and Joint Stock Banks
then in existence, we believe that the banking
community are, as a body, greatly opposed to its
provisions, and that there is nothing of which
they are more desirous than the establishment of
a perfectly unrestricted " free trade in money."
The intelligent and respectable gentlemen engaged
in this important business do not desire the pos-
session of exclusive privileges, nor do they dread
the effects of fair and legitimate competition.
They know that the invariable result of adequate
banking accommodation, if conducted in ac-
cordance with sound and judicious principles, is
to stimulate the trade and commerce cf the dis-
trict to such an extent that there will be an
abundance of business for all. They do
not, therefore, deprecate an honourable rivalry.
Nor is the practical prohibition against the crea-
tion of new establishments, joint-stock or private,
regarded as by any means a recommendation ;
while the restrictions imposed on their transac-
tions operate very prejudicially to all, but more
especially to those who are doing a considerably
increased business.
The Act of 1844 aimed at "finality." No
matter how great the addition to the wealth, po-
pulation, or trade of the district, 'and to the con-
sequent demand for money, an insuperable ob-
s aele was raised to the supply of that very neces-
sary commodity. No matter what that demand
might be—no matter what might be the excel-
lence of the security offered—not a single note
could be issued beyond the amounts, without sub-
jecting the party to heavy fines fixed by
the Statute. These amounts were based on
averages, taken for a certain time before
the provision passed into law, and it is perfectly
obvious that in very many instances they must
be perfectly inadequate to the exigencies of the
locality. Still no variation could be made on any
terms. The parties desirous of issuing their own
notes cannot even do so against the deposit of
gold in their coffers. Even that privilege, though
allowed to every banker in Scotland and Ireland,
is only enjoyed in England by the leviathan
monopoliatt.
The bankers of England do not wish that the
public should be without ample security, or that
specious adventurers should be allowed to vic-
timise the trading community with impunity.
They would not therefore at all object to giving
suitable guarantees for the liquidation in full of
any additional issues which they might deem it
expedient to make. They, however, feel the gross
inconsistency of not being allowed, under any
circumstances, to pass the magical limits, while
they can go to the very verge thereof without
giving the most trifling guarantee. By the ex-
isting enactments, no less than 8,408,0621. may
be issued, not only without bullion, but without
security of any kind. Of this amount the private
banks are authorised to send into circulation
4,698,0751., while the joint stock banks can add
the remaining 3,4091,9871. We thus find that
there may be 22,108,0621. in circulation without
a single sovereign against them. The Act, there-
fore, does not carry out its professed object, and
in a severe crisis would be perfectly incapable of
providing for the " convertibility" of the bank
note—a " whistle" for which the trading and ma-
nufacturing interests of the country are paying so
very dearly.
But it is not merely that the Act arrested fur-
ther banking progress, it necessarily led to a
retrograde movement. It might naturally have
been anticipated that some establishments would
wind up their affairs, while others would con-
siderably reduce their transactions. No provision,
however, was made for supplying the voids thus
created. And the circulating medium should
necessarily be gradually and permanently reduced,
notwithstanding, as we have already stated, the
increased wealth, population, and trade of the
country., This is decidedly wrong, and it is as
impolitic as it is inequitable ; while the country
is advocating " free-trade" principles in the
broadest signification of the term, the most ob-
jectionable of all restrictions should no longer be
sanctioned or tolerated.

It will be seen that in the above observations,
we have not put forward a single opinior, iu which

the most strenuous bullionist might not participate.
It is unnecessary to state that we go very much fur-
ther than the simple repeal or raodifi .a.tion of the

Act of 1844. We have, however, shown that there

is 413 al,mupt unparalleled unaniwityof sentiment as
to the propriety of speedy legislation—which, in-
deed, becomes a matter of imperative necessity in
time of war. As the subject must be discussed,
it is to be hoped that truth will eventually be
elicited, and that more judicious measures may be
brought into operation, measures calculated to

lead to, the establishment of sound monetary prim

ciples, and, as the natural consequence thertiof,
the full development of all the industrial capabi-

lities of the country, and the avoidance of those

repeated fluctuations in the supply and value of
money, that, according to Mr. COBDEIV, " have
proved more prejudicial to the nation than the
failure of all the banks of issue that occurred even
at periods of the greatest excitement I" What
we want is " free trade" in banking, coupled
with the establishment of a really national
bank, issuing small notes based upon taxation,
and secured on all the accumulated wealth of
the nation. The time is peculiarly favourable
for agitation. The Bank Charter is rapidly ap-
proaching to its termination. It can never be
rTehnoewdaeyds of monopoly
on anything like the existing conditions.
The Bank itselfwT
Irl have for ever passed away.
e a really b
privileges—with
nb.
vienl
se
gfiets wh
t d bi
ty the
abolition of these obnoxious its
wealth and capital it need not dread competition.
These matters will always insure it
the lead to
which it is entitled, while it will be freed from
demands that have recently proved very incon-
venient. At present, it holds a doubtful posi-
tion ; it is neither a public nor a private establish-
ment. It should be one thing or the other ; and
it would be for the benefit of the proprietors, as
well as of the community in general, that it should
relinquish the exclusive privileges, on being at the
same time liberated from the obligations supposed
to be associated therewith.

. INLAND BOOK POST. —GENERAL POST drprilic.lfay,
1854.—Whenever the number of postage stamps on a
hook packet is insufficient, or when there is any other
infringement of the regulations respecting book packets,
the packet becomes liable to the letter rate of postage.