The Sun.
London, England, 1854-02-11 00:00:00

rate of discount in Threadneedle-street 5 per cen

on unexceptionable paper, and the circulation
greatly diminished, while the prices of all the
necessaries of life are enormously increased. Thus

at the very moment that there is a necessity for
additional monetary accommodation we find it
materially curtailed. Attention is therefore once
more directed to the subject, and we shall be
greatly disappointed if An agitation do not
speedily arise which will enforce judicious altera-
.

tions in the Act. These are said to be the days of
" unrestricted competition." Why, we ask, should
not the competition be extended to banking as
well as to other trades ? Why should we not
have a free trade in money as well as in money's
worth ? These are questions to which straight-
forward and explicit replies must be returned—
Free Trade in money—unrestricted banking is
worth a struggle. The bankers themselves feel

the difficulties in which they are placed as well as
their customers. They find it almost impossible to
avoid incurring fines for over issues, and they justly
complain of not being permitted to increase their
circulation, although the excess beyond the "fixed
issues" should be secured by the most ample gua-
rantees, either in the shape of G ,vernment sec uri ties
or even the deposit of bullion in their cellars, as al-
!owed to the Bank of England and the English and
Scotch banks. This is indeed a grievance which re-
pair es speedy redress, even if the convertibility of the
bank note should still be considered an indispens-
able condition—a grievance on which we shall
have something more to say ere the session be very
far advanced.
Bat, meanwhile, there is one point which we
cannot refrain from touching on, although briefly,
at the moment. The bullionist organ, the great
advocate of the Act of 1844, the Times itself, has
acknowledges that there is a matter connected with
the working of the law which requires amend-
ment. It declares that " there is no reason
to believe that the sum which was adopted
in 1844, as that at which the direct paper cur-
rency of the country might be safely fixed, was
at all too high ;" and confesses that " the abstrac-
tion of 700,0001. from this amount has created a
vacancy which has been filled up with gold that
might otherwise be employed for foreign, payments."
It adds—" This is a circumstance not intended,
and which should be remedied forthwith !"
This is an important admission from such
a quarter. It clearly proves the injurious
consequences of the useless deposit of bullion
that " might otherwise be employed in our
foreign trade." It, in fact, surrenders the entire
question, unless prepared to assert that the sum
arbitrarily fixed on ten years since was
adopted on some infallible principle, so that no
change of circumstances could justify an altera-
tion. Surely all that the most determined
bullionist could require would be ample security
for the paper issued, and its convertibility on
demand. It may be a question in what form that
security should be given ; but, after the admission
above referred to, there can be no difference as to
the propriety of liberating as much gold as practi-
cable, so that, in place of being locked up uselessly
and unproductively, it may be made available
" for foreign payments." It will become an
important question to decide how far a really
national note, based not only on the entire pro-
perty of the nation, but on the industry of the
people, should become the circulating medium, at
least for home transactions, so that all the bullion
would become available for our foreign trade. It
is impossible to over-estimate the importance of
this topic. TA the national note were adopted,