The Sun.
London, England, 1838-03-14 00:00:00

THE SUN, LONDON, WEDNESDAY, MARCH 14, 1838.

LONDON :
WEDNESDAY EVENING, MARCH 14, 1838

The Times, in an article which we elsewhere insert, states
that an impression prevails in the City, that the Revenue
for the present quarter will be very deficient. This is
only in accordance with the avowal of the CHANCELLOR of
the EXCHEQUER in the House of Commons on Monday
night, when he resisted Colonel SIBTHORP'S motion for the
reduction of the duty on Fire Insurance, because the Reve-
nue, by the balance-sheet of January, appeared deficient to
the amount of 655,0001. Every person must, we believe,
be aware that nothing has transpired since to give a stimu-
lus to industry, many branches of which, such as agriculture
and navigation, with all kinds of communication by water,
both here and on the Continent, have suffered a longer in-
terruption at this season than for many years before. The
resistance made by the CHANCELLOR of the EXCHEQUER
to Colonel SIBTHORP'S motion must be taken as an indi-

cation of his knowledge of the fact that the Revenue conti-
nues deficient. It is some satisfaction to know, therefore,
that the Government is aware of its difficulties, and it does
not argue any great discernment in the City critics,
that they announce with some pomp the formation of such
an impression, after the fact bad been clearly indicated by
the Finance Minister.

But though the public may feel a security because the
Government is aware of the difficulty, we are not satisfied
with the mode which the CHANCELLOR takes temporarily

to get over it. We are told that the accruing revenue is
not sufficiently large to pay off the deficiency bills at the
Bank ; and that he is to pay them off by borrowing
2,000,0001. from the Bank. In other words, he is to bor-
row from the Bank to pay the Bank. He is to renew his
acceptances, and give the Bank, which has now a great
difficulty in lending its notes, the usual rate of interest for
the accommodation. Eager as the Bank now is to put forth
its notes, there is no doubt but it will readily comply ; and
as the spring is the season for enterprize, it will be able,
by the help of the Government, to send an additional
amount into circulation, What, however, strikes us as
rather singular, is that the Bank should be the lender to
the Government, or rather to the public, whose agent the
Government is. When we look upon a Bank-note, we find
it a promise on the part of the Bank to pay on demand
the sum which is expressed in it. The Bank does not give
such promises to the public without an adequate conside-
ration ; and, in fact, it borrows from the public the sum it pro-
mises to pay on demand. According to the last returns, its
circulation is 18,600,0001., which sum it accordingly bor-
rows from the public. In fact it is the privileged borrower,
the greatest of all borrowers ; and it is something like im-
pudence in the Bank to lend notes to the public, by bor-
rowing from which it makes its large annual dividends.
The explanation of the circumstance, however, shows us
one of the most curious juggles which is to be met with in
financial history. For the 18,600,0001. which it borrows
from the public, it pays not a farthing of interest, but for
every sixpence it lends of this borrowed money, including
ten or twelve million it lends to the State, it makes the
State and the other borrowers from it pay a high rate of
interest. It is now to receive from the public, it appears,
an additional 80,0001. a year for lending it two millions of
the money it borrows from the public. By thus borrowing
from the public at no interest, and lending at a high rate of
interest, the Bank carries on a most flourishing trade, in which
other Bankers naturally desire to share. We shall not on
this occasion pursue the subject any further ; but merely
express our astonishment that this great borrower from the
public, has the art to make the public pay a large
interest to the Bank for the very money the public
lends ;it has also had the art to persuade the public
that tho Bank is a public benefactor. We are not
much surprized, knowing the thraldom in which the Go-
vernment is kept by the cunning great borrower, that the
L CHANCELLOR of the EXCHEQUER should have refrained the
other evening from moving to re-appoint the Committee on
, Joint Stock Banks; for he probably anticipated that such a
motion would lead to no pleasant debate.

The debate which took place last night in the House of
Commons on Colonel EVANS'e motion will be read with
pain and sorrow by all who have taken an interest in the
fate of the British Legion. It hardly leaves a doubt that
the statements made by General O'CoNNELL, General