The Sun.
London, England, 1854-12-06 00:00:00

in providing some 56,000,0001. in the way of
revenue—without any public loan—which, if we

are to credit the new school of political economists,

is even more injurious to the industrious classes
than raising money by actual taxation ! !
These matters appear very strange indeed, but
a clue to the seeming mystery can easily be ob-
tained. At that period we had a circulating
medium adapted to the wants and exigencies of
the people. The notes of the Bank of England
in the hands of the public were then nearly
Twnrrr-rivE MILLIoNs (24,801,0801.), while of
private banks they were 22,700,000/., in all
47,501,0801. while the total circulation in
England, in September last, of all bank
paper—whether emanating from the Bank
of England, private, or Joint-Stock Banks
—was only 26,196,3321., and that of the whole
of the United Kingdom only. 36,840,6061. ! ! !
Thus, with an increase of population of more than
50 per cent., we have a decrease of the circulating
medium in nearly an inverse ratio. At that
period there were notes in circulation amounting
to about 31. 10s. per head, for the entire popu-

lation, and the revenue collected was about 41.
per head, which was raised without difficulty.
Now the notes in circulation are less than 11. Bs.
per head, and we are with difficulty enabled to
collect 21. per head of the population.
These simple facts require no arguments to
enhance their impertance. They speak trumpet-
tongued to every unprejudiced person. If our
representatives are true to themselves, to their
constituents, and the country, they will profit by
the knowledge, and endeavour to ascertain why
it is that the people are not now capable of equal
exertions to those so freely made in 1814, and
what it is that prevents them from doing 10. The
great element of their former power being dis-
covered, we may easily avail ourselves of
the benefit of past experience, with such
improvements as modern science may enable us to
add. One thing is certain, that the present
monetary system prevents the possibility of eau..
tions similar to those made by the people of Eng-
land in the beginning of the present century, and
which enabled them to succeed in all their under-
takings.

The most popular journals of Glasgow are not
a whit behind those of Liverpool and Birming.

ham in their censure of the existing monetary
policy of this country. The Scottish Reformers'
Gazette pithily affirms that " the foreign war,

which drew specie from this country during the
administration of Pitt, was not a more formidable
enemy than our British industry has in a foreign
trade which drains us of the precious metals."

This is the lesson which experience teaches in
all the great hives of industry, and it is a pitiable
thing to see the ignorant obstinacy with which
persons in the situation of statesmen cling to what
they call the " discoveries of modern science" in
defiance of the evidence afforded by events that
their boasted science is a delusion, and the policy
arising from it a blight upon the prosperity of
the country. The Glasgow Examiner, in support
of its opposition to Sir Robert Peel's monetary
policy, quotes an address from Sir Robert Peel's
father to the members of both Houses of Parlia-
ment, dated in 1826. The sound practical wis-
dom of the currency question could not be better
stated than it is in this address .:
" My Lords and Gentlemen,—Will you permit an old
man to address you on the subject of our currency I I
sat in Parliament thirty years, during which time I ire.
quently 'heard this important question di/mussel' in the
house by Mr. Pitt, Mr. Fox, and other distinguished
characters. Oa passing the Bank Restriction Act, I
was entrusted by the merchants and citizens of London
to present their petition against the measure. Though
my opinions were embodied in their case, my

best endeavours t• save them were not successful
Having been long and extensively engaged in commercial
dealings, I often witnessed a national embarrassment
arising from a defective and impure currency, which
resembled the present stagnation in trade ; and I lament
to observe that sufferings and experiences have failed,
in this instance, of producing their usual effects. In
the enlarged scale of business carried on by this country,
embracing a great variety of pursuits, a reliance on a
metallic circulation alone ever did, and ever will, fail us.
Gold, th _ugh in itself massy, often disappears in conse-
quence of war or speculation. Nay, the breath of ru-
mour itself is sufficient to disperse it. Our domestic
concerns are interrupted, and confidence lost, for want
of an ample and improved medium of traffic. I am no
friend to an unrestrained issue of paper-money, and saw
with concern, in the absence of a due quantity of specie,
bills admitted into circulation by persons of respectability
possessing property, but evidently unable to meet a sud-
den and large demand upon them. More than two years
ago I mentioned to a friend high in her Majesty's councils
my fears of the mischief likely to ensue if the practice were
not discontinued, accompanied with a suggestion to
confine future issues of paper money, or tokens, to the
Bank of England, and other competent bodies of men,
who would
.give security in land, the public funds, ca-
nals, buildings, or other tangible property, amounting
at least to one-half the value of their bills or tokens in
circulation. My proposition was not favoured with any
notice ; yet, had it been adopted, I am of opinion that
most of the panic and distress now so severely felt in the
nation would have been avoided. If such an improvement

"I am, my Lords and Gentlemen,
" Your faithful and obedient servant,
" ROBERT PEEL.

in the banking system could be madd available, gold
would become less requisite, and the country be supplied
with a stationary medium of exchange originating with
ourselves. The present panic and distress in the country
have been declared by high authority to proceed from
" over trading" and " wild speculation." Infant nations
and establishments are liable to miscarry from want of
experience and solidity. Trading and speculation, being
natives of this island, and parents of our wealth and in-
dependence, are surely exempt from such an impu.
tation. The same authority has declared, "gold and
paper money are incompatible with each other, and
cannot exist together." The population and trade
of the empire being muck increased, a proportionate
increase in the medium of circulation is called for ; and
when gold is found insufficient recourse must be had,to
paper, which, if improved on the principle already sug-
gested, the two substances would be found in the same
pocket without disunion. A.uxious to see our situation
ameliorated, I trust the currency may be mended with-
out changing or impairing the national commercial cha-
racter, which measure, if resorted to, would resemble
the policy of diverting from its course a powerful river
that had long given fertility and happiness to a large
district, merely because, from excessive rains, it had some
times exceeded its natural limits, and produced partial
injury.

" Drayton Manor, April 3, 1826."
Such were the views of a man of most remark-
able practical sagacity, who, by good sense, in-
dustry, and well-directed enterprise, made the
fortune which the present Sir Robert Peel enjoys.