The Sun.
London, England, 1822-10-17 00:00:00

FOR THE SUN.

CURRENCY.

MR. EDITOR—As you have had the kindness
to give occasionally a column or two of your va-
luable Paper to my thoughts on the premature
and highly pernicious change of currency I am now
encouraged to intrude further on you with a con-
tinuation of the same subject, as ideas may have
presented themselves with any degree of novelty
on that momentous topic. Much has been offered
on the danger of a recurrence to our former pa-
per currency, stating, that notes of that descrip-
tion once 'again brought into play would soon
have no more value than French assignats, or

American emissions in the, first stage of their war
with this country. But in this there lies the
grossest misconception, for that paper had no
substantial foundation whatever, and could not
but fall to pieces on the first trial of its strength,
whereas our paper for upwards of 20 years, dur-
ing last war bottomed, as it was, on the Bank of
England, and all the credit of this opulent coun-
try, never sulTered'any material depreciation, and
the very little experienced, was of no sort of co►r-
sequence compared with the immense advantages
derived from it, and, indeed, without which we
must have been at this moment at the feet of the

arch-usurper of the European Continent. Why
then entertain apprehensions of greater and more
important disadvantages from a return to the
same currency ? What is there in the Bank of
England,or in the resources of this great country,
to cause any rational fears of failure from the
same measures, which enabled us to perform such
wonders in a very late instance ? What compa-
rison would the disadvantages of such a recur-

rence to paper, bear to the present depression
greater or less of the whole community, and the
total and absolute ruin of the landed interests of
the country ? Upon supposed accurate calcula-
tions of Mr. PEEL, the framer, and Mr.RICAItDO,
and other supporters, of that dreadfully ruin-
ous Bill, it was stated, that the difference
between money and paper, did not exceed 3 or 4
or at most 5 per cent. The difference in all
money transactions would not go beyond those
limits, and consequently the exchange of an arti-
ficial for, what they termed, a sane and safe me-
tallic one, was highly desirable, especially when
so great and manifest an advantage was attain-
able at so cheap a rate. Now taking up the
question upon their own principles, which, how-
ever, have been shewn to be dreadfully erroneous
when reduced to practice, if the difference did
not exceed one or other of these rates of interest,
in that case, and upon that very principal, a re-
turn to paper currency would be attended with
no loss or inconvenience beyond those limits; and
as we have seen, by woeful experience, the
dreadful effects of the adopted system, surely a
recurrence to that from which we derived little
if any loss at all for the space of more than 20
years, with nearly the whole of the European
continent opposed to us in every way, in arms,
in commerce, in financial expedients of every
description, can be attended with no com-
pative disadvantage at all worthy of notice.
It has been said above, that even taken
up on their own principles, the inconvenience
must be comparatively little or none, but
on experience it was found that all their cal-
culations were founded on the grossest error, for
instead of 3, or 4, or 5 per cent., the calculated
difference, the real one proved at least 25 or 30
per cent. Now, suppose, when the nation was
already borne down to the very earth by taxes,
it had been proposed at once to add 25 to 30
per cent. to the already over-weighed machine,
would not all the world have cried out against
the gross injustice and utter impracticability of
such a proposal; yet was this additional burden
actually and at a single stroke imposed by the
sudden and wholly premature change of currency,
—a debt of 800 millions, to the liquidation of
which, in the precious metals, all the financial
Powers of Europe combined were wholly un-
equal, was at once increased in that ratio, and
rendered wholly desperate. The interest of that
debt, in addition to the establishment necessary
for the support of this great country, falls little,
if at all, short of sixty millions per annum ;
yet is all this to be effected by an exhausted
country in metallic currency without a fifth
or a sixth part of that bullion to be found within
its limits. By the same artificial means by which
such a debt has been contracted, may the inte-
rest of it be paid, and due faith preserved with
our creditors, and the people at large, but by no
others, the writer is firmly of opinion, devisable
by the ingenuity of man. To obviate in a cer-
tain degree the objections, weakly, as the writer
thinks, suggested by the favourers of the present
system, an idea has presented itself to him,
perhaps .not wholly unworthy of attention, and
as such he begs leave to suggest it with all due
submission to the public consideration. Previous
to the passing of Mr. PEEL'S Bill, it was per-
mitted to every individual possessing paper
to the amount in gold of thirty ounces, at
3/. 17s. 102 d. per ounce, to carry it to the Bank
and obtain,.gOld in ingots to that amount, which
he might afterwards carry to the Mint,and obtain
the value in current specie. Whilst this was
permitted gold and paper were necessarily on a
par, nor could the latter ever fall to discount.—
Now, the suggestion of the writer founds itself
somewhat on the same principle, but subjects the
holder of paper to a certain amount liable to
greater difficulties than were before thrown upon
him. In a few words, then, it is as follows,—let
the holder or holders of paper to the amount of
10,0001. sterling, give a month's notice to' the
Bank of England, that he or they are desirous of
converting the same into gold, and at the same
time deposit 25 per ,cent. of such amount—to
be lodged in the Bank as a security for the
performance of such engagement, and that
such notice was not given merely to perplex
and cause a preparation for what was not in-
tended to be carried into effect. At the end of
that period the amount in ingots should be duly,
paid, which the possessor might convert or not
into coin at his pleasure, on paying for the
mintage, but losing nothing besides but the
month's interest on the 25 per cent. deposited.-4
the writer's humble opunon) little or no de-