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

S N 9 OCTOBER 26, 1847.

[PRICE SD.

they had traced with the clearness of demonstrati poses. And the ten per cent., which must be the
to an artificial and legislative origin, were not suf- current rate of discount among bankers for corn-
fered by the negligence of the authority in whose mercial bills, will never be paid but from the
hands the law had placed a paramount discretion, to direst necessity. It will be the exception—not the
urge their petitions and their remonstrances in vain rule. No business will ever be done on the footing
until supplication passed into discontent, and discontent of a ten per cent. discount, because there are no
deepened into a sedition, which set at nought wholesale trades that can afford such a charge.
the law it could neither amend nor obey. " Suspension," therefore, must still he the order of
They will do more than this ; they will the day while money commands such an exorbi-
see that the chosen leader of a great party, tant price. It will be seen from these remarks that
who had been placed by the almost unanimous con• our advice would have been, that, if it was needful
sent of his countrymen at the head of a popular Go- (which no one doubts) to interfere at all—it was
vernment, did not, by a fatal and derogatory negli- most advisable to interfere effectually. A mandate
gence of the facts of a severe crisis, bring confusion requiring the Bank to make advances on stock at five
and disruption into the ranks of his supporters, and per cent. would have entirely removed the existing
again reduce the name of a Whig Government into state of alarm, peril, and suffering. If it replied, that
the category of things which men regard with aver- this would have been unsafe—we ask, To whom
sion and distrust. Whether, therefore,:we view the would it have been unsafe? Not to the Bank itself;
event of yesterday in its relation to the exigencies of for there could be no danger in making advances on
the present moment, or in its wider and probably Stock and Exchequer-bills. Not to the bankers; for
more important bearings upon the general temper and they would, assuredly, have shown abundant caution
prospects of the country, we alike welcome it with in the aid they gave, and in the sort of paper they
our most cordial commendation. In point of form consented to discount. Where would have been the
and detail it is perhaps not precisely what could be danger, then? Oh I in the unlimited issue of bank-
desired. There is here and there an incongruity of notes, and in the " departure from sound principles."
phrase, an attenuation of plan, and an impertinence of But we have all that in the present measure ! There
detail, which serve only to detract from the graceful- is no limitation to two millions, or to three millions.
ness of the concession and the efficiency of the inter- Five banking-houses, that we could name, might ap-
ference. The final paragraph talks of doing nothing ply to the Bank for five millions to-morrow. And as
at variance with the integrity of the measure which to " sound principles,"—why we had them all set
has placed "the currency of this country upon a forth at full length in the Times of yesterday morning,
sound basis." Now it is by no means easy to perceive and we had then, at noon, the Chancellor of the Ex-
either the prudence -or the common sense of chequer lighting his taper with these " sound prin-
an observation which is contradicted by the origin, ciples," in order to seal his missive to the Bank, de-
tenour, and aim of the whole document in which it siring them to give " sound principles" to the
occurs. If the currency was upon a " sound basis," winds ! These are not days in which to be merry, or
why have the Government been compelled to inter- we might laugh at the poor Times. It fights obsti-
fere ? We presume that nobody—not even a cur- nately a losing battle. On Saturday it could only
reacy theorist—can entertain the extraordinary belief make out its case for 1847, by admitting, as we
that a sound currency is identical with a system showed, that all its promises of 1845-6 (that
which cannot surmount an emergency without the foreigners would take our manufactures in paymen t
assistance of the Privy Council. If the currency be for their corn) had been proved, in the event, to b e
"sound,' the Prime Minister and the Chancellor of utterly baseless and delusive. Yesterday it vainly
the Exchequer may certainly congratulate themselves strove to stop that concession on which Government had
on the invention of a new species of testimonial. If already been driven to resolve. Aware that an
it be unsound, as the public voice and their own re- augmentation of Bank paper was urgently demanded,
luctant interference unite in declaring, where is the and was, in fact, then receiving the tardy assent of
dignity or wisdom of encumbering a great public the Premier, it thus argued against this step :
measure with a looseness of phraseology, to say the " Look now to the extraordinary remedy proposed
very least of it, both inconsistent and in no way ne- —an advance on the national credit. We will sup-
cessary ? Then again, we are by no means clear that poseit enough to give general and perceptible relief.
the proviso of exacting 8 per cent. from the public for We will also suppose that it is not immediately nul-
the accommodation they may obtain is either wise lified by a run for gold. How will it work ? In the
or expedient. It would hare been much better to first place, it will for the time neutralise the natural
have placed the whole power, together with the remedies. It will give a new and treacherous vitality
whole responsibility, in the hands of the Bank. If to speculation of all kinds. It will lower the rates
eight per cent. had been the fair value of the accom- of discount, and raise the value of securities ; thus
modation afforded, it would have been paid without taking away the objects for which gold is now coming
the help and the odium of a Treasury warrant ; and into the country. It will discourage that careful
we cannot help thinking that the Government have reserving of capital which, though sometimes carried
very needlessly exhibited an ungracious and a grasp- too far, under the impression of panics, is yet an un-
ing disposition for the attainment of a purpose which doubted and most indispensable benefit to the coune
was equally certain of fulfilment whether they inter- try. But, after all, what will be the result ? Will
meddled or not. We are quite certain, however, any advance of the public credit, any issue of paper,
that the huckstering paragraph, which pounces with really add to the actual resources of the country ?
such desperate avidity upon the extra halfpence It will only prolong the reign of those errors under
which the measure may obtain for the Bank which we are suffering. It will only quicken specu-
by the extended discounts and the higher lation, aggravate expenditure, multiply and confirm
rate, would have been much better omitted. impossible engagements, complicate the railway
As a mere matter of morality and fair question with fresh contracts, and thus bring us, at
dealing between one man and another, her Ma- no long interval, to a still more terrible crisis, when
jesty's Exchequer has no more right to the increased it will be childish topropose again another 2,000,000/,
profit which may accrue to the Bank under the simply because it will be tantamount to giving up
measure of yesterday, than it has to the extra small the principle of a convertible currency altogether."
change which a soaking rain and a sudden thunder Well, in three hours after this deprecation came
shower may impel into the pockets of the proprietors forth, the step was taken, in spite of the Times and of
of long-stage omnibuses. The extra work deserves the Mr. Jones Loyd. The Government, in fact, dared
extra pay. The Bank directors take all the risk, all not refuse it. The Times tells us, that the step taken
the labour, and all the disagreeableness of the process, will " bring us, at no long interval, Ito a still more
and Sir Charles Wood magnanimously walks away terrible crisis," ending in a surrender of the Peel
with the reward. The revenue may be in a bad way currency altogether. We do not wish for " a still
—we have no doubt that it is—but what then? The more terrible crisis ;" but if it is to end in the final
necessities of the State cannot justify the practices of destruction of the nostrums of the Tamworth cur-
the extortioner. As to the general question of the rency-doctor, we care not bow soon we encounter it !
real effect of the present interference upon the Meanwhile, we give the Times joy of its task and its
character and permanence of the Act of 1844, we fate—to refute itself, one day, and to be refuted by
presume that the almost universal conclusion of the facts, and Treasury decrees, the next I
common sense of the country does not require that we POST.—At last her ajesty's Ministers have
shall say much. The law has signally failed, and it given way to the dictates of plain common sense,
is virtually suspended. It may be more polite to say pressed upon them by the 'fearful necessity of the
that it is overtaken by an unforeseen and temporary crisis. It is evident that even at this last hour they
combination of adverse circumstances over which it have done so with reluctance. The votaries of the
has no control. But vary the phrase as considerately Peel monetary policy have died hard. But the system
as you please, the plain meaning of the terms cannot is now dead. Let us see who will dare to revive it.
be altered : the machine has broken down—the The bankers of London who remonstrated against
scheme has met with a fatal exposure—the con- the restrictive law of 1844 were not listened to. The
trivance has come to a dead standstill and present Chancellor of the Exchequer, in his place in
there the matter ends. It may be quite true that Parliament, actually sneered at their anticipations of
the formalities of the interment have yet to be possible pressure. The bankers of London were
performed, and the friends of the deceased will right. The Peel contriver of monetary restriction,
best serve the commendable purpose of throwing a and his adviser, Jones Loyd, were wrong. Lord J.
decent and early obscurity over its many faults Russell and Sir C. Wood, and the rest who con-
by making no obstreperous lamentations over its fided in the " self-regulitipy " powers of the Bill-of
departure ; but it is abundantly certain that no pro- 1844, were wrong. Let Ministers fence as they
fusion of casuistry and no diligence of special plead- may with the circumstances, and die upon
ing can call back the departed vitality. The plausi- the question with the largest circumlocution,
bility of the projectors, the pretensions of the still the end is that they avow their error,
proposers, and the short and troubled career of the and give way. We are no longer to be
contrivance itself, have all become matters of history, tied down to the tyrannical pedantry and nonsense of
and have passed into that obscure and teeming chaos the Bill of 1844. We owe to that measure the
which swallows up with such relentless voracity all dreadful monetary crisis, which we think will, in a
the deformed and ricketty projects of men who cry great degree, pass away, now that reasonableness and
new lamps for old, and who themselves afflict their common sense have been admitted to the councils of
fellow creatures with great and prodgious pre- the Government. We owe also to that measure, that
tensions. The appropriate conclusion of the even now money is to cost 8 per cent. per annum.
epitaph of a bad law is the celebration of Surely the time will come when the people of Eng-
the fame and services of its victorious opponent ; land will " visit for these things," and openly avow
and under the guidance of this rule the con• their contempt for the pretending politicians who have
eluding paragraph of our criticism would be freely done such enormous mischief, and have so late come
open to the stigma of gross omission if it did not to the rescue. The two curses which the last Peel
couple the name of Mr. Tooke with the sudden ex- Government inflicted upon this country were restric-
termination which has befallen the statute of 1844. tion of the monetary means of the country, and un-
To his clear, philosophical, and candid writings, more restricted competition of foreign industry with home
than to any other cause, is the country beholden for industry, under the name of free trade. To one of
its speedy deliverance from the influence of a mis- these branches of impolicy the first great blow has
chievous piece of legislation, and for the establishment now been given, but we have but half gained what
of a system which can boast, without overstepping is due: to the British people, until the quackery of
the modesty of truth, that it inculcates a code of cur- free trade is also abandoned as an impracticable
rency management, easy, simple, and abundantly folly.—The Jones Loyd oracle seems:to look with con-
free from the severe vicissitudes which the country siderable distaste and some irritation upon that partial
will so long and so bitterly deplore, relief to the money tightness which it yesterday un-
HERALD.—The first step has at last been taken, ticipated that Government would afford. This is not
and, however slowly and reluctantly, the limits as- surprising, when it is recollected that to afford any
signed by the Bank Act of 1844 have been overpassed. such relief is to disregard that which the oracle has
The fiat has been pronounced, after an assent, no for some time given forth as the unquestionable
doubt, had been wrung from the author of that mea- wisdom applicable to the present crisis. We are told
sure ; and thus, after " strangulation" had nearly that such relief " would give a new and treacherous
done its work, the victim is allowed to revive,—to vitality to speculation of all kinds, that it will lower
draw breath,—and to commence, it may be, another the rates of discount, and raise the value of securi-
struggle for existence. It is something to have ex- ties, thus taking away the objects for which gold is
torted this public confession, that the Act of 1843 now coming into the country." Are we to under-
will not work. It is something to have brought the stand from this that " the objects for which gold is
Government to an admission, that " things could no now coming into the country " are to keep high the
longer be left to take their course." But we cannot rates of discount and to lower the value of securities ?
applaud the character or tenour of the step taken in- If that be not the meaning of the oracle, ithaste
noh
asmuch as it belongs to that class of expedients meaning at all. If that be its meaning, wtehe think
coming
which we have already denounced as half-measures. observation is absurd. We do not see how
h
'We often hear the foreign exchanges adverted to, as in of gold should produce such effectsgold would be wfurnishing the gauge and criterion of our commercial produce them the coming in
matter, the Jones Loyd
ng
of gld
per-
position. To our minds it appears that a British nicious. But tocleurvand if it did
Minister might look much nearer home. We oracle asks, with a triumphant air, "Will any advance
should be inclined to say that our Downing-street of the public credit, anyissueofparr,
urenaldloyuhatdeddltyo
financiers ought to be conscious of the existence of the actual resources of the country
danger whenever the Bank of England was unable yes. The resources of the country consist not
to discount-first-rate commercial paper at five per merely of the material elements of wealth, but of
cent. Hence it will be seen why we denominate activity, enterprise, and perseverance, which are all
the present measure of " relief" a half-measure. put into action by the credit system. Without
To dictate to the Bank of England, as fit terms to money of some kind to go on with, the resources of
be offered to the commercial community, a regular the country stand still. They are not wrought up
charge of eight per cent. upon the highest class of into wealth. With abundance of money,. well guarded.
securities, seems to us almost a burlesque upon the against home depreciation, and incapable of being
e have heard carried away as merchandise, the resources of Great
term relief. When, in former days,t
of parties being reduced to the
usuriousexremwity of paying Britain are incalculable. The Jones Loyd oracle
bill discounters, groans at the idea of relief being given to those who
such a rate of interest to
we have always been accustomedum to regard such vie- are suffering, not from want of property to meet their
the London Gazette engagements, but from want of money. Such relief,
tims as doomed men—for.t h
might speedily prepare wcolumns. Hence we are says the Times, " will only prolong the reign of those
unable, with such prejudsices hanging about us, 0 errors under which we are suffering. It will only
hear the Prime Minister.nt prescribe " eight per cent." quicken speculation, aggravate expenditure, multiply
for the whole commercial and confirm impossible engagements, complicate the
as the term of discount
we listen to a general sen- railwayi question with fresh contracts, and thus.
world, without fancying
tence of bankruptcy passed upon British commerce. bring us, at no long interval, to a still more terrible
But let us look a little closer,
at the facts. How will crisis." The plain answer to this nonsense of a
the existing " pressure" be lightened . Much as in vexed oracle, whose " thunder" has been treater 's. as
con-
any such
the case of the victims of the Inquisition, towards mere brutumfulnsen, is, that experience distinc,tilzy
whom, when, under the tortures of the rack, actual tradicts such dismal prophecies. We are far
of 1844 can
fainting had taken place, the screw was relaxed for from saying that under a free-trade system
a few moments, and a slight restorative administered; relief as the virtual repeal of the lajvre
has 'been effected b
but there was no release until further tortures and give will be an effectual remedy the mischief
I at we know that on
further " questions" had been tried.. So, now, the which since February, 1842,
r ,br sfs
ur e relief was a:-
Government, for its own sake, shrinks from the stupid, self-sufficient legislati.on
monetary
own discretion
with
fearful responsibility of reducing the whole trading former occasions of
disposal, and y
panic.we see
and manufacturing population of Great Britain to forded by the Bank actingat,ort-s
tat, the abrogation of Peer
utter prostration ; but while it commands that the capital and cred,hi
the Bank again tos us
the mischief shall be prevented from going this no reason to dotuabetena,
rerievleintgheofmonetar
re-
length, it adds, " Let the rate of interest be not less strictions, and
AD VERTIS,
than eight per cent. !" The operation of this mis- its discretior •
So the ;Government have at
called " relief" will be of this kind :—lt may avert
last agrepa to
;totes mething. This " something" is
such a general convulsion as would endanger the
nut kast the thing that the exigencies of the juncture
peace of the country; but it will not even postpone
.juir.ed but still it
that state of depression and paralysis which is fast re, s
we
haveimportant as recognising the
creeping over all branches of trade. Eight per cent,
Principle for which ls
being the minimum, even for advances on Excheque%been so strenuously con-
bills, it follows inevitably that respectable cr •• - tending—the right and. duty of the Government to
Anmer-
cial paper will not be discounted by p • interpose on behalf of the languishing commerce and
oamser under expiring credit of the country. It would be impos-
Thatten per cent. ;and oven at that rate 0-
with difficult
great mass of bills of e- y. Bible to recognise, in more ex licit or more expressive
-change, the product of
bona fide business betws terms than is done by Government, in their corn-
excluded, and render- ,en solvent traders, is still munication to the Bank of England, its duty to come
-ad useless, for all money pur- forward with a measure of relief in such an emer-