The Sun.
London, England, 1853-09-06 00:00:00

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The value of our exports in 1852 reached the unex-
ampled amount of 78,000,0001. ; in 1842 they were only
47,000,000/. ; and in 1832 they were 36,000,000/. In
the 20 years, therefore, they have more than doubled.
In the first six months of the present year our exports
are nearly 10,000,0001. in advance of 1852, and it is
therefore a very moderate calculation to assume that
the exports for 1853 will reach at least the remarkable
amount of 93,000,000/. Our imports have also been
large, but it can scarcely be said in the same proportion,
taking commodities only, and leaving bullion out of. the
calculation, the stocks of most articles being consular-
ably reduced. So far as commerce is concerned, ,it is
difficult, therefore, at first sight, in the facie of these
facts, to suppose that the balance of trade is against us,
so as to lead to the unfavourable state of the foreign
exchanges which now exist. It is true there has been
a large importation of foreign grain ; but, on the other
hand, there has been of late a very extensive re-export
both of wheat and flour, and especially to France ; so
much so, that many of the direct steam-vesaels have re-
cently been entirely laden therewith. There is, there-
fore, apparently nothing connected with the corn trade
to account for the present state of the exchanges.
In connection, however, with our general commerce,
there is a consideration which at this particular moment
may materially affect the exchanges, although there may
not in the long run be a balance against us. It is ob-
vious that the exchanges must be affected only by the
actual amount of payments to be made at the time, in
whatever way those payments arise, and not by the
value of exports and imports, except so far as it affects
the amount of payments to be made. Remittances to
France for the purpose of buying railway stock, or for
the payment of railway calls, have as much an effect on
the exchanges as for the payment of a balance of im-
ports. Remittances to England during periods of Con-
tinental discredit for investment in our funds have as
much the effect of making the exchange favourable to
us for the time being as if remitted for a balance of
British goods exported. Whatever, in fact, affects the
amount to be transmitted from one country to another,
whether representing the payment for produce, or capital
to be loaned or invested, equally affects the exchanges
at the time. It is the state of the mutual payments to
be made or received, and not the state of the exports
and imports, except as they affect the former, that ,
de-
termines the state of the exchanges.
I In connection with this consideration there is a fact
' peculiar to the trade of England which it is all-important
to bear in mind, and which :nay be of some aid to us at
the present moment in accounting for the adverse state
of our foreign exchanges. It is this. By the ordinary
course of trade England gives credit to all the world,
and takes none ; on the contrary, in place of taking
credit upon the produce imported, the capital of England
is employed frequently not only in rearing the produce,
but almost always in keeping it, even on foreign ec.
count,' till required for consumption. This is an interest-
ing and important fact in connection with our trade, and,
as we shall show, may exercise at the moment least ex-
pected a remarkable influence upon the exchanges. What
are the facts ? First take our exports. Take the markets
of our entire colonies—take the
markets of India, of the
United States, of South America—in all, a lengthened cre-
dit is given upon our exports. In many of these markets
the goods necessary for their supply are held on consign-
ment and with British capital ; and even when sold a
long credit is given, and the proceeds not finally remitted
to England till the expiration of that credit Take as
an example a transaction in Brazil or in India. A cargo
of Manchester goods is consigned to Rio de Janeiro.
The agent receiving it supplies the market from his store
as the goods are required. It may be six, it may be,
and more frequently is, twelve months before a closed
account of sales can be furnished. But the goods are
sold at a credit of four, six, or nine months, and it may
therefore be from 12 months to two years before the
funds are all in hand and ready to remit. Of course
remittances on account are made at earlier periods for a
part, but 12 to 18 months would be a fair average. Well,
the funds are in hand, and if bills are abundant, and can
be had on good terms, the rest of the operation is quick
enough ; but as it more frequently happens, the funds
have to be invested in a cargo of coffee or other pro-
duce. This done, the next question is—Where is the
best market ? The vessel sails from Rio with instruc-
tions to call at Cowes for orders. The owner in Man-
chester, upon inquiry, finds that his cargo will be best
disposed of in Hamburg. The vessel is ordered on, the
coffee sold within a reasonable time, and finally the
funds remitted to Manchester in bill;drawn, perhaps,
upon some Yorkshire firm for German wools, shipped
by the same steam-vessel that brings the remittance.
During the whole of this time the capital which had
been expended in cotton, in labour, in artistic style, in
dyeing, &c., some months before the shipment was ac-
tually made from England, has been employed abroad,
virtually in conducting the commerce of foreign coun-
tries. Less or more, the whole of our foreign export
trade is of this character; that with the Continent least
so. % Nor is this fact in any way altered because manu-
facturers who make these consignments themselves re-
ceive advances upon them, sometimes even from the
first day of the shipment. If they do so it is always
from British merchants, and in any case it is British
capital that is throughout represented in the transac-
tion.

r PRICE SD.

be an end to the possibility of negotiating our securi-
ties. This was indeed a time of prosperity, he might
say perhaps of unexampled prosperity, but it was a time,
of all others, when they should act with caution. A great
number of schemes were being brought before the public,
some good and some bad, but it was not desirable to push
them forward at such a rate as their promoters seemed now
anxious to do, which was sure to create a distrust in the
minds of moneyed men. He hoped the advice of the dis-
tinguished guest of the evening would sink deep into the
minds of those who heard him, and that all would endea-
vour to push forward the railway system upon a sound
basis, without rashly encouraging competing lines, to the
great disadvantage of their best interests.
In conclusion, he begged leave to propose tha health of
the city of Montreal, and to couple with the toast the
name of their worthy chairman, who was not only the
head of the greatest banking institution in the province,
but also one who had endeared himself to men of all par-
ties, by his amiable, upright, and consistent conduct
through life.

feltn meulichonth.
they could
Drunk with all the honours.
little, and he assured them that
he felt very deeply the honour which had been done him,
although he had been left standing on his stumps among
them. (Laughter.) The hon. Inspector-General might
have introduced his name as President of the Bank of
Montreal to endorse his very pert observations respecting
ouMleiGsaiLyLlirtetlte ed thanks—When people
the negotiation of securities. He had a great deal in his
power so long as he occupied his present position at the
head of her Majesty's Provincial Government, to restrain
the rash enterprises which were now broached, and he
should do so. Every county and township seemed pre-
pared to pledge their credit for favourite railway schemes,
but the time might shortly come when many of these
would prove unsound, and the credit of the municipalities
of the province destroyed, and that of the province itself
seriously injured thereby. He thought it would he more
prudent on the part of the Provincial Government to re-
strain these enterprises. He again thanked them very
heartily for the cordial manner in which they had drank
his health.
The next toast was proposed by the first Vice President,
the Hon. JOHN YOUNG, M. P. P. He would only detain
them a few minutes-in
_proposing the toast entrusted
to him, a duty which he had great pleasure in per-
forming. As he was certain there was no Montrealer, and
indeed no Canadian present who would not take pleasure in
drinking it. The importance of a bridge to connect the
two shores of their great river could hardly be over-esti-
mated, and happily for Montreal, and for the trade of the
province at large, its site had been fixed at a place where
seagoing vessels of a thousand tons could meet and exchange
cargoes with the schooners and propellers by means of
which our inland navigation was car+ied on. It might be
interesting to some present to learn the particulars of the
history of this great prospected work. It was first men-
tioned in public in June, 1846, when a meeting of the
friends of the project took place, and a sum of money sub-
scribed, and a Philadelphia engineer brought in to decide
upon its feasibility. His report was favourable to the
views of the projectors. In 1848 a private company was
formed, and a bill incorporating them passed in the Lower
House of Parliament, but was rejected in the Upper House.
In 1849 when the necessity of the Kingston Railway was
recognised, the directors of the St. Lawrence and Atlantic
Railway lent their credit to the company for the construc-
tion of that road, for the purpose of procuring a more
minute survey of a site for the bridge. It was then placed
in the hands of Mr. T. C. Keefer, whose excellent map and
report had now been for some time before the public. No
one doubted the importance of the railway, but it would
be all of no use without the bridge. For instance, the
freight of flour from Longueuil to Portland, a distance of
292 miles, was but forty cents, while from Montreal to
Longueuil, two miles, it amounted to five cents. Fears
had been expressed about the construction of the bridge,
and many people were apprehensive that it would be car-
ried away by the ice, but when they thought that they
had among them a Stephenson and a Ross, they could not ,
but believe that it could be safely carried through. That
the same genius which bridged the Menai Straits, would
overcome all the difficulties in the way of spanning our
mighty St. Lawrence. (Cheers.) He called upon them to
drink to " the Victoria Bridge, the latest planned of the
great bridges of the world."

Drunk with honours. Band—'
Charlie."

•" Over the water to

The Hon. Wm. BADGLEY, M.P.P., 2nd Vice-President,
proposed the next toast. He said the toast placed in his
hands was so large in its terms and so extensive in its
nature, he supposed that it had been adopted for the
finale of their interesting association that evening. He
had been forestalled in anything he could have hoped to
say to it by speakers to a previous toast. But in connec-
tion with it, he was desirous of bringing under the notice
of those present a gentleman to whose exertions they were
already indebted, and would be much more indebted be-
fore the Grand Trunk Railway would be completed. He
referred to the chief engineer of that company ; and with
these few observations, he would leave the toast in his
hands to be responded to, knowing that he could do it
much fuller justice than he (Mr. B.) could hope to do. He
proposed :
" The Grand Trunk Railway of Canada, and its connec-
tions by sea, lake, river, canal, and rail."

Drunk with enthusiasm.
Railroad Galop."
Mr. Ross, C.E., responded. He thanked them sincerely
for the honour which they had done him ; an honour which
he, as a stranger, had no right to expect at their hands.

Band—" Canadian Trunk

Let us, then, examine the different character of our
import trade. England takes credit from no other

---
country. We may fairly assert that none but British
capital is engaged in British trade. The produce of the
United States, of India, of our colonies, of South Ame-
rica, required for our consumption, is either purchased
on the spot with British capital, or it is consigned to this
country for sale as required. But in the latter case,
though held on account of the foreign producer, it is in-
variably held with British capital. A cotton grower in
Georgia, a sugar planter in Cuba, the owner of flocks in
Australia, the producers of indigo in Bengal, or the
coffee growers in Ceylon, may consign, and often do
consign, their respective productions to this market for
sale, either direct to our merchants or through their
agents abroad, but in all cases the bill of lading is ac.
companied by draughts to nearly the whole value of the
consignment, and almost from the day the goods enter
our warehouses, or very shortly after, our merchants
are in cash advance upon them, and continue to be so
until they are finally sold and paid for.
The practical effect, therefore, is, as we have already
said, that this country gives long credits to all the
world as regards our imports. It is hence obvious that
the relative amount of our exports and imports at any
particular moment may not represent the exact relative
amount of the payments to be made and received ; and
this chiefly at times when our trade is undergoing any
important change. Thus, during a period when it is
rapidly expanding, even though our exports may still
considerably exceed our imports, yet as the payment
for the former is, as we have shown, deferred for a long
time, while the payment for the atter is made by us
at once, and as it is the amount of payments alone
that determines the state of the exchanges, and not
of exports and imports, it may be, even in that
state of our trade, that the payments to be made
by England greatly exceed those to be received by
England, and that the exchanges may be adverse
for a time, while the immediate relation of exports
and imports is altogether satisfactory. And just in pro-
portion as the increase of our exports is rapid and large
is this likely to be the case. For example, the exports
of the present year are likely to exceed those even of
1852 by about 15,000,0001. While, therefore, we are
receiving payments for the exports of 1851 and 1852,
measured by the lesser amounts of these years (in 1851,
74,000,0001., and in 1852 78,000,0001.), we are pro-
ducing and shipping the larger amount of about
93,000,0001. ; and for the additional raw material and
other articles which we import, in order to enable us to
produce so greatly an increased quantity of goods, We
are paying either in advance, or at latest on their arri-
val. Our receipts are measured by the transactions of
1851 and 1852 ; our payments by the larger transactions
of 1853. The balance of payments in the meantime
must, therefore, be against the country. This, no doubt,
can only be for a time. In the natural course of trade
the payments for the exports of 1853 will come round,
and the whole accounts will be adjusted.
In like manner, when our trade is contracting in ad-
verse times—when our exports are diminished—it is
always observed that, notwithstanding that fact, the
exchanges frequently turn strongly in our favour. That
is obviously caused by the reverse of the facts which we
have just been considering. The payments due to us
and in the course of being received are upon a larger
scale than the payments to be made for our immediate
imports in respect to our diminished trade. Thus, KlP-
pose the present year of extensive trade—the most ex-
tensive beyond all comparison ever known—were, from
any cause, to be succeeded by one or two years of very
adverse trade, then in those years the payments which
we should require to make for our imports on a lower
scale would be much smaller in amount than those due
to us for the extensive exports of the present year, a
large portion of which would then be in course of pay-
ment ; and in that case the exchanges would be favour-
able to England in spite of a great diminution of exports
at the moment.

He felt proud-that he was permitted to part in advan-
cing the interests, in developing the great natural resources
of this most splendid country. He hoped the construction
of the great work with which he was charged would fur-
nish a data, from which a new era in the affairs of the
country would run. It would be no presumption to pro-
phecy a glorious future for it, since it was everywhere be-
ing filled up with inhabitants, whose intelligence and in-
dustry attracted the observation of all who travelled
among them. They only wanted one thing to fully deve-
lope the resources of the country, and that, with the zeal-
ous co-operation of the people, would be supplied them in
a few years, when they would possess as perfect means of
internal communication as the people of the old country
now enjoyed. It would be folly to hesitate for one moment
in adopting measures to complete these works. He would
not detain them longer, but he assured them that he felt
deeply the many acts of kinlness that had been extended
to him since his arrival in the country. The deep impres-
sion which their cordial good feeling that night made upon
his heart, would not be effaced so long as he remained in
Canada. He assured them that no exertions should be
wanting on his part to promote the prosperity of the ceun-

The party broke up about 1 a.m.

A BRILLIANT TURKISH CHARGE.

After marching thus for nearly an hour, the enemy
was seen in strong force near Zepshe. Omer Pasha,
who was with his staff between the advanced guard and
the main body, ordered the former into the wood on
their left, in order that they might be under cover if
the enemy should open his fire upon them. Mustapha
Pasha halted, and bringing his four guns together, un-
limbered them in a favourable position to fire on the
enemy's flank diagonally, across a bend in the river.
The Bosniacs commenced firing, and the artillery re-
turned the attack, but the enemy soon disappeared in
the wood. Suleyman Bey's skirmishers were on the
same parallel, and the enemy, probably taking them for
the main body, and unable to judge their strength in a
thicket, supposed that Omer Pasha had outflanked him,
extended to the right, and took up a position on a
height, from which a murderous fire was kept up on
this forlorn hope of 300 men against 5,000. Omer
Pasha, hearing the fire recede, thought the rebels
were retreating before the main body of his troops
in the wood, and endeavoured in vain to obtain an
accurate notion of the state of the contending
armies, which were in a manner fighting in the dark, on
account of the inequalities of the ground and the density
of the wood. The real brunt of the battle was thus
borne by Suleyman Bey and his small battalion. Un-
able to hold his ground against such odds, and. unwill-
ing to retire, he ceased firing, and ordered his men to
charge the enemies' position at the point of the bayo-
net. They closed, and rushed forwardin a compact
body; but they were repulsed by a heavy fire from the Bos
niacs, who were astonished to see themselves attacked
by so small a number. Again Suleyman Bey ordered
a charge, and again they advanced, received volley after
volley, strained to reach the summit of the height,
staggered, and fell back, leaving the ground strewn with
the bodies of their fallen comrades.
Suleyman Bey
sprang from his horse, placed himself in front on, foot,
rallied his men, and, cheering, made them shout, ,
~ p ad •
ioch,ah ehok yasha!" ("Long live the Sultan ! ) as
they returned to the charge with him, regardless of the
fire from above, and struggling gallantly to gain the rock.
Suleyman Bey was the first man at the top, laying about
him with his sword. Another shout, and the devoted
little band plunged headlong into the overwhelming
mass of the enemy. Every blow was a death-blow ;
not a word was spoken on either side, and for a few
minutes it seemed a wrestling match at awful odds ; but,
strange to say, more rebels fell than true men in that
onslaught ; in spite of their numerical superiority they
wavered ; a few stragglers disappeared on the other side
of the rocks ; their ranks were thinning fast by deser-
tion. A shout from Suleyman Bey, a desperate assault
of the troops, formed like a wedge, and the rebels threw
down their arms, rushed wildly down the other slope of
the hill, and did not again attempt to form their ranks
The Frontier Lands of the Christian and the Turk.

THE NEW LAW ON RECEIPT STAMPS.—The new law
on receipt stamps contained in the recent act of the 16
and 17 Vict. c. 59, which will take effect from and
after the tenth day of next month, is of public import-
ance. On all receipts for the payment of 21. and up-
wards, the new duty is one penny, and may be denoted
either by a stamp impressed upon the paper whereon
any such instrument is written, or by any adhesive
stamp affixed thereto ; and the commissioners of the
Inland Revenue are to provide stamps of both descrip-
tions for the purse of denoting the duty. In any
case where an adhesive stamp is used for the purpose on
any receipt or upon any draft or order respectively
chargeable with the duty of one penny, the person by
whom it is given shall, before the instrument is deli-
vered out of his band, custody, or power, cancel or obli-
terate the stamp so used by writing thereon his name
or the initial letters of his name so, and in such a man-
ner as to show clearly and distinctly that such stamp
has been made use of, and so that the same may not be
again used, and if any such receipt, &c., is not a bona
fide cancelled, the party giving the same is to forfeit the
sum of 101. An person getting off or removing, or
getting the stamp and affixing, or using to defraud her
Majesty, is to be liable to a forfeiture of 201. Persons
having receipt stamps on hand are to be allowed for the
same.

It is thus that events, which have often appeared as
puzzling anomalies, are satisfactorily to be accounted
fur— viz., that frequently in the face of greatly increased
exports we find the exchanges adverse, while in the face
of diminished exports we have a most favourable state
of the exchanges, they being regulated solely by the ba-
lance of payments, on whatever account they are to be
made, and not by the transactions of the moment.
The remarks which we have here made may also sug-
gest to our readers the true cause of the rapid rise in the
rate of interest, and a good reason why it should con-
tinue high under present circumstances. To increase
our foreign trade alone in a single year by 15,000,0001.,
and that, too, upon a principle of giving credit to our
customers for our exports. while we pay ready money
for our increased imports, may easily suggest such an
increased demand for capital as fully to account for
the present high rate of interest. And let it be re-
membered that this increase of 15,000,0001. of exports
represents but a portion of the increase consequent
thereon. Our home trade must have also increased in
perhaps even a greater ratio, in order to furnish all the
means required for such an extended production. The
increased wages paid, measured by their greater rate and
by the full employment of all the people, must alone
lead to a considerable increased profitable demand for
capital, and again to a greatly increased domestic trade
in their expenditure. It would not be exactly correct
to say that the exchanges and the rate of interest directly
affect each other, but it is certain that they are both in-
fluenced by common causes—that a low exchange is •
rusuallyf
ianctceorme
spt abnyi e
ad
fbayv
oa
übrigh
erate
toef interest,of
eabnadnageslo.w.
the e x
There are other important considerations in connection
with the present state of the exchanges which we anll
discuss in.= next number.