The Sun.
London, England, 1847-10-26 00:00:00

readiness to enter into future commitments, where
otherwise all would have been caution and contrac-
tion ; a renewed drain of bullion, unattended to this
time, because the " Government will give aid if
things go wrong ;" a contraction of the circulation ;
new deputations for relief enforced by representations
of the good effected by the relief in October; new
concessions ; another rebound of prices and of " con-
fidence ;" again a drain of bullion ; as alarm at the
exhausted coffers of the Bank ; a rush for gold ; an
issue of one-pound notes ; another rebound and ano-
ther panic, and, finally, a suspension of specie pay-
ments. The order of rapidity with which these
circumstances may come about no one can attempt to
determine, because, the Minister having undertaken
to regulate the supply of money, it is now a matter
not of calculation according to fixed laws, but entirely
of individual discretion ; but, that such events or
others analogous to them will happen, can only be
doubted on the supposition that the yielding Minister
of to-day will determine at some time of far severer
peril to take his stand and to deny relief of any kind.
CHRONICLE.—We congratulate both the Go-
vernment and the country upon the decision which
has put so many deep anxieties at rest to-day. The
change is opportune, and making due allowance for
the delay which the weight of official responsibility
sufficiently explains, we can accord to Lord John
Russell the merit of having dealt with the crisis
of mercantile affairs to the full satisfaction of the
community. This act of firmness and devotion will
come back with advantage to its author. The com-
mercial interest—in other words, the empire—will
place their trust in the statesman whose quick eye
and ready hand have their place beside the helm in
the hour of danger ; and while we write the intel-
ligence of the joyful event is speeding to every
portion of the country, conveying the welcome news
of relief, and creating a confidence in the present
Cabinet which it will be truly their own fault if they
should lose. In London the general impression is
most cheering, and the wisdom which has left the in-
creased issue unlimited in amount is everywhere the
subject of remark.
HERALD.—The determination of her Majesty's
Ministers, officially communicated to the directors of
the Bank of England, and the resolutions passed by
them thereon, have at length recognised the principle
that the Bank Charter Act is not adapted to such an
emergency as the present. It is well known that
Ministers have submitted to the relaxation with very
great reluctance, and it is at the same time necessary
to state that the measure, as it now stands, is very
far from giving general satisfaction to the commercial
interest. Whether, therefore, it will allay distrust,
as is the ostensible object, remains to be seen. That
the rate of 8 per cent. per annum is far beyond the
average rate of profit on production, requires no
illustration, and the boon held out can, therefore, only
apply to persona requiring temporary relief to prevent
them from sacrificing property in the hope of matters
amending. It is not for a moment to be expected
that new undertakings will be entered into when that
rate of interest has to be paid for the capital requisite
to carry them on.
Another objection is very generally taken to the
Bank extending their loans to the public securities.
The appeals made to Ministers by the deputation
from the City, as well as from all the large towns in the
provinces, distinctly confined the applications for
relief to the commercial interest, and not for the
purpose of propping up the price of public securities,
and fostering a systematic speculation which the
Ministers profess to decry. This objection we con-
sider, however, may be partially met by the very
high rate of interest charged by the Bank, for whilst
money can be securely employed at that rate many
persons will be induced to sell stock which will not
produce them half the amount of annual income.
The only argument we have heard advanced in fa-
vour of so high a rate of interest is the fact of the
Fresch loan now impending, for in the present state
and prospects of the country every possible discou-
ragement should be given to foreign investments in
any shape and form.
Rumours have been confidently circulated through-
out the day in the City that a partial change of
Ministers will take place before the meeting of Par-
liament. These rumours have originated in circles
professing to be in the confidence of members of the
Cabinet, which is all we can say upon the subject.
POST.—The Bank directors have acted with a
firmness and discretion for which they are entitled to
commendation, in having compelled the Government
to take upon itself the responsibility of adopting
measures for the relief of the intensity of the crisis.
The Government, in turn, though committed to Sir
Robert Peel's scheme of 1844, which has brought so
much ruin upon the country, has also manifested
some prudence in making, as it is clear it has done,
the ex-Premier a party to the authority this day given
for the virtual suspension of that very destructive
example of the Right Hon. Gentleman's monetary
legislation. It is assumed in the City that the Bank
Act of 1844 has gone completely to pieces, as there
can be no doubt, after the events of the few months
past, and more particularly what took place this morn-
'ng, that the enactment will undergo an extensive
modification on the re-assembling of Parliament.
Lord J. Russel's Administration has, it appears, been
ooking supinely on in the vain expectation that mat-
ters would mend. Some trifling circumstances oc-
curred to inspire hope, such as a contemptible return
to the country of the gold exported—for what, it may
be asked, has been the amount ?—but the whole fabric
of our commercial credit being found to be on the
totter, it proclaims its disappointment and avows its
conviction that the time has arrived when it ought to
attempt by some extraordinary measure, " to restore
confidence to the mercantile and manufacturing
community." Sir Robert Peel has, we presume,
been made to acknowledge the failure of his Bill of
1844, and, happen what may, he cannot in this case
pretend at any future time to say that all would have
come right had the operation of it not been inter-
fered with. The removal of the restriction on the
issues of the Bank will, there can be no question,
have a most salutary effect. The private bankers
will no longer withhold accommodation from a dread
of some emergency that might give occasion for
extraordinary resources. They now know, at all
events, that, with Consols or Exchequer-bills to
offer as security, money may be had, though at a
high rate of interest. It is probable, therefore, that
within the space of a few days discounts will be
obtained in the open market at from 6 to 7 per cent.
per annum. It will be observed that, for stock,
xchequer-bills, and short-dated bills of exchange, the
Bank charge will be s per cent. per annum ; but that,
for bills not having more than 95 days to run, that
rate will be the minimum. It is of course believed
that such an arrangement must, in a certain sense,
prove inoperative. With a heavy loss on imports,
merchants cannot afford to pay 8 per cent. for the use
of money, and in this circumstance is involved a serious
falling off in the public revenue, especially in the item
of Income-tax. The repeal of the Usury Laws has
been again the subject of condemnation, and what will
be thought on the Continent of the advance, on the
part of our national bank, of its minimum of interest
from 5i to 8 per cent. at a single coup, and this pro-
fessedly for the relief of our suffering commerce ,it is
hard to say. The wisdom of recent English legis-
lation on banking affairs certainly will not pass into
a proverb.
ADVERTISER.—The hopeful anticipations in-
dulged in on Saturday, that Government would afford
relief to the mercantile community, have been more
than realised by the important events of this day. From an early hour the anxiety manifested in all circles was more conspicuous even than at any former
period during the present crisis ; and although it was
felt that Government had, from the commencement,
manifested an indisposition to disturb the Currency
Bill, the impression became general, especially in
well-informed quarters, that the representations made
by the bankers, who last week waited upon Ministers,
were so serious as to have caused a reconsideration of
the question. About two o'clock its transpired that
the Governor of the Bank of England had received a
most favourable communication from the Treasury,
reccmmeading the Bank to make loans upon good
security at 8 per cent., and if necessary to issue
_notes for the purpose, and intimating that a Bill of
Indemnity will be
of Parliament. applied for in the ensuing session
and The letter has given the highest
aatisfaction
ver,. may be the views of
parties as to the neessi.et.
of Peel's Bill, an See yet a permanent relaxation
emo to express approval of the
manner in which the
atenetzesibon is made. By keep-
ing money at a high rate the uhllion will be kept in
the country, confidence
restored without
houses of doubtful means beingwllszparted, and the
surplus means of the wealthy
s.lArsed, so as
theciercxut:::
to impart legitimate activity to trade.
stance of all profit on the over-issue being secured to
the country will operate as a check upon
sion of undue facilities.
The Bank of England has, in accordance with the
been this day doing best bills, having 95
suggesti°ll,
days to run, at eight per cent., and will loan upon
stock, Exchequer-bills, &c., for periods of six weeks
at a time.

ACCIDENTS ON THE YORK, NEWCASTLE, AND
BERWICK RAILWAY. —On Wednesday au accident oc-
curred at the station at Tweednaouth which might have
occasioned a serious loss of life. The train which leaves
Newcastle at halt-past two o'clock in the afternoon
arrived at the terminus about half-past five; and whilst
the guards and porters were collecting the tickets,-a
pilot engine ran into the train with fearful violence. The
consequence was that some of the carriages were more
or less broken, and the passengers thrown together with
such force, that ten or twelve of them received severe
bruises and wounds, but fortunately no bones were
broken. Of the entire number of passengers, some-
where between sixty and seventy persons, there was not
one but was more or less hurt. On the same day, near
the Accrington station, a man was run down by a train
and killed.—Gateshead Observer.
The Chinese call going to law, " losing a cow to
win a calf."
without a With us it is oft it losing of the cow
winning IA the e/af.