The Sun.
London, England, 1847-10-15 00:00:00

THE AFFAIRS OF SPAIN.

THE COMMERCIAL CRISIS.
TO THE EDITOR OF THE SUN.

SIR,—I have paid some attention to the various
writers on the present state of the currency, and con-
sequent commercial duties, but find in all attempts
made to account for the present state of things, and
to point out how they might be remedied. The
arguments of most are palpably defective in some way
or other. I am not going to confute such argu-
ments, or propose a nostrum of my own—it is better,
I think, to allude to the facts of the case, and leave
them to indicate the proper remedies. The professed
object of the Bill of 1844 was to prevent undue
speculation and undue expansion, and to set up a self-
adjusting system whereby great and ruinous fluctua-
tions in the currency were to be prevented ; in fact,
a sort of sliding scale, whereby, as with the old corn-
law, prices were to be kept steady, and violent
fluctuations prevented. Like that notable scheme, it
is palpable to all this scheme of Peel, Jones Loyd,
and Co., has entirely and ruinously failed ; and for
why ? Because, like the corn-law, it cannot take
cognisance of circumstances against which no law
can provide. The corn• law would not prevent a
surplus of home produce, neither would it prevent
scarcity, and consequently prices were found to
fluctuate as widely, or more so, than when no sliding
scale existed—so with the currency law, it would not
restrain the outflow of bullion when famine visited
our country, and consequent on that outflow, it could
not restrain men's fears that money was to become
scarce, and that for self-preservation it was necessary
to hoard cash to meet all contingencies. It would
not restrain the cupidity of capitalists from exacting
an enormous rate of interest consequent on that
scarcity, and when that scarcity had produced its
natural results, it could not prevent panic and the
almost total denial of all accommodation, and the as
total destruction of all credit, and thus produce a
crisis, the ultimate results of which the stoutest
heart trembles to contemplate. I say, Sir, that no
currency law, be it ever so cunningly devised, can
prove a self-adjusting scheme, simply because it can-
not regulate men's passions, whether displayed in the
shape of fear or avarice. So late as August, 1846,
money was abundant, credit stood high, and why ?
because the Bank of England had plenty of gold in
its coffers. For the sake of argument we will assume
that the Bank had 15 millions of bullion on hand; at
that time all went merry and free, railway calls had
little effect then ; circumstances over which no Cur-
rency Bill could possibly exercise control gradually
withdrew this bullion, until in Aug., 1847, it is reduced
to nine millions, and concurrent with this reduction
of seven millions the country is brought to the verge
of ruin, though the remaining nine are lying idle.
Yes, Sir, the abstraction of seven millions of gold has
produced such results in the commercial world, that
no man knows whether he may not be a beggar to-
morrow, whatever his prudence or property may have
been. Under such circumstances I care not for ab-
stract principles—there are emergencies when ab-
stract principles cannot be carried out, be they ever
so sound. For instance, did the Government when
it undertook to feed the Irish, act on abstract prin-
ciples ? The emergency then justified the departure,
and the result was the salvation of the lives of
millions ; how does it happen that what was justifi-
able and necessary then is not so now ? how does it
happen that now, when the very existence of the com-
mercial and manufacturing world is at stake, no de-
,parture from abstract principles is to be permitted ?
The latter case is as urgent as the former—the bread
of millions is at this moment depending not on the
supply of food, but whether the working classes are
to get that employment whereby they gain the means
to purchase food. It is now distinctly proved by the
results that our system of currency is based on the
fact whether the Bank hold twelve or
fourteen millions of bullion, or only eight
or nine—therefore the base of the cur-
rency has this extent, no more. I may be
told that the issues of the Bank are most materially
diminished. Granted ; but are they available ?
This is the question. I say they are not available,
and they might, to a great extent, have never been
made, as to be " clutched up," as they now are. I
care not what the motive for hoarding may be, the
effect is the same. Is, then, the whole mercantile and
banking world to be left at the mercy of such a state
of things ? Are the solvent as well as the insolvent i
to be swept into one common ruin, because an abstract
principle is to be carried out ? I said I would not
offer a nostrum of my own, and though I refrain
from doing so, yet the remedy is clear, and, compared
with the present exigency, easy. Had Mr. Pitt been
alive he would have suggested it long ago. The very
disposition to offer a remedy, from the only quarter
whence it can come, would, I am persuaded, stop the
evil. The fearful falling-off in the revenue will
create alarm at head-quarters, where, if there is not
originality or energy enough to produce a movement,
fears for the future may, and I trust they will, com-
pel it. It has long been described as a great and a
growing evil in this country, the tendency of capital
to concentrate itself in a few hands—what a fearful
impulse this tendency is now acquiring 1 The capi-
talist is swallowing up all. Look at the increased
profits of the Bank of England—look at the enor•
mous rates of discount—all so much levied on the
community to swell the bulk of the rolling snowball
capitalist, who, left to dictate his own terms, is ab-
sorbing the property of all those placed at his mercy.
The abstraction of seven millions of gold from the
Bank has cost the country many hundred millions in
the depreciation of property, and rendered a very
large proportion of it inconvertible. It is manifest
that our currency is not expansive enough for the
vast wants of commerce. What is a currency ?—a
i mereinvention of convenience to facilitate the ex-
change of commodities ; but by a strange perversion
this mere convenience is made the supreme arbiter of
value—nay, of very existence ; instead of a facility,
it has become a ruthless tyrant, like Saturn of old,
devouringits own children. Few are willing to
come forward and lead public opinion in such a crisis,
lest it should De inferred that they are exposing their
own difficulties ; but every one feels his situation not
a whit the less, and instead of clamouring they grind
their teeth, and execrate the men who leave them to
sink without an effort to save them. EBOR.

THE CURRENCY.
TO TIIE EDITOR OF THE MORNING HERALD.
Sir,—Observing your laudable endeavours to ex-
plain the evils of the currency Bills of 1819 and
1844 with much pleasure, I trust you will excuse
my claim of a small space in your valuable pages.
Among sundry suggestions for improvement, I ob-
served one a day or two since which, although open
to objections, would answer with very little altera-
tion. I allude to the issue of Exchequer-bills of 11.,
hearing interest at 5 per cent. to railway companies.
This would not answer the purpose, for two reasons—
it would only assist one part of the community, viz.
the railway companies, and it would not increase the
circulation, but only add to securities, which is part
of the present evil ; for at present it is evident that
the circulating medium is not sufficient to carry on
the natural business of the country under the pres-
sure occasioned by the withdrawal of the bullion,
and the only safe remedy is to increase that circu-
lating medium in some way that will not promote the
export of bullion, and merely act while we are
without the requisite amount. Now, what I would
name is this—an Act to allow the Bank to issue 1/.
and 21. notes at any time that the stock of bul-
lion is under a certain amount, say 10,000,000/..
to such an extent as the bullion is defi-
cient to make these notes legal tenders, but not
couyei able into gold until a year after date, but pay-
able into the Exchequer as taxes at any time. The
Bank could so arrange the dates as to be able to pro-
vide for them as they become convertible, either by
gold, if the quantity in hand allows them, or by a
fresh issue through other channels to meet them ; at
the same time, the Bank should be compelled to with-
draw other notes to an equal amount should the bul-
lion suddenly increase, to avoid having too large a
circulation out. This plan would always act; for
supposing (which God forbid) that by famine nearly
all the bullion was withdrawn from the Bank, there
would be the same amount of circulating medium for
carrying on the business of the country, although not
the same facility for exporting bullion. Again,
supposing the gold to be increased to its former
amount, or, in fact, anything above 10,000,0001.,
there would either be no small notes out, or so many
large ones would be withdrawn as would tally with
the amount, and the large ones being convertible
into gold would soon be exchanged for the small ones
out. The profit on the issue would amply repay the
Bank. Apologising for this intrusion,
I am,
Your
Editor,r obedient
servant,
A CONSTANT READER.
City, Oct. 14, 1847.

THE ROMAN CATHOLIC PRIESTLIOOD.-Our obi-
tuary this week, records the death of the Rev. J.
Standen, of this town, and the Rev. J. Dugdale, of
Stockton, members of the Catholic priesthood. Both
are to be added to the long fist of those who have
fallen victims to the prevailing fever, while braving its
danger to administer consolation to the sick and dying.
—Newcastle Advertiser.
SOUTH EMI REFORM ASSOCIATION.—A meeting
took place yesterday at the London Tavern, for the
purpose of establishing the Metropolitan Auxiliary
South Essex Reform Association. The chair was taken
by Mr. Chambers. Resolutions were submittal, and,
after discussion, carried unanimously. A President,
Vice-President, and Committee were appointed, whose
names, it was resolved, should be announced by adv,r-
tisement in the London papers.
M. Negrelli, the Austrian civil engineer, is making
preparations to leave Vienna for Egypt, to join the
French and English engineers in the formation of the
canal of Suez.
BRISTOL SUGAR MARKET, OCT. 13.—The business
done in sugars during the past week has been too limited
to make quotations accurately, indeed there seems a
mutual disinclination on the part of both buyers and
lelleri to do business for the present.—liristol Gazetk.

MADRID, OCT. B.—The work of undoing all that
had been done by Salamanca is gradually going on.
The present Government are taking a review of all
his acts, and are going back, with due regularity, to
the period of the amnesty, which, in all probability,
will meet with the fate of its companions. The Ga.•
zette of this day has the following :
"Finance Office.

"EXPOSITION TO HER MAJESTY THE QUEEN.

" Senora,—The alienation of the property called
propios, now administered by the A.yuntamientos,
promulgated by royal decree of the 25th of Sep-
tember last, is a measure of such transcendant im-
portance as, in the opinion of the undersigned Mi-
nister, to require for its execution the concurrence
of the legislative chambers, to which it was sub-
mitted at the period of their suspension.
" They are now convoked for the 15th of Novem-
ber next, and until they decide on what is best to be
done he believes it indispensable to suspend the effects
of the royal decree alluded to, and for which purpose
he has the honour of submitting to the royal appro-
bation of your Majesty the subjoined project of de-
cree.—Madrid, Oct. 6th, 1847.

" Senora,—At the royal feet of your Majesty,
" FRANCISCO ORLANDO."
" ROYAL DECREE.

" In consideration of the reasons manifested to me
by the Minister of Finance, I hereby resolve that the
execution of my royal decree of the 25th of Septem-
ber last, on the alienation of the property called pro-
pios, be suspended until the Cortes shall have taken
into consideration this serious subject.
" Given at the Palace this 6th of October, 1847.
" (Signed by the royal hand.)
" (Countersigned)
" FRANCISCO ORLANDO,
" Minister of Finance."
" EXPOSITION TO HER MAJESTY THE QUEEN.
" Senora,—The undersigned Minister, convinced
that the sale of the property belonging to charitable
institutions is a measure, from its importance, re-
quiring the concurrence of the Cortes to carry it
into execution, and thereby prevent the inconve-
nience likely to result, has the honour to propose to
the royal approbation of your Majesty the subjoined
project of decree :

_
"ROYAL DECRIER.
" Taking into consideration the reasons manifested
to me by my Minister of Finance, I hereby direct
that, until the Cortes shall have assembled and re-
solved on what is necessary to be done respecting the
alienation of property belonging to charitable institu-
tions, the :execution of my royal decree of the 26th
of September last, relative to the said property, be
suspended.
Given at the Palace this 6th October, 1847.
(Countersigned) "FRANCISCO ORLANDO, &c."

" EXPOSITION TO HER MAJESTY THE QUEEN.

" Senora,—Any alteration in the monetary system
of a country is of such importance to the general in-
terest, that its adoption should alone be the result of
the most mature examination. In proof of this truth
are alleged the opinions which at different periods
have been emitted, as well as the various projects
submitted to the deliberation of the Cortee. Without
their concurrence the undersigned Minister thinks
any innovation in the present system is highly dan-
gerous ; but he does not, at the same time, refuse to
recognise the necessity of doing all that is required
for the benefit of the State. With the due respect for
such a principle, he considers it convenient to suspend
for the present the execution of the provisions of the
royal decree of the 31st of May last, and has the
honour to submit to your royal approbation the sub-
joined project of decree.
" ROYAL DECREE.

"Agreeing in the opinion expressed by my Minister
of Finance, I hereby direct the suspension of the
execution of our royal decree of the 31st of May
last, relative to the monetary system, until the Cortes
shall have met and decided on the proper course to
follow. _ _ _

_
" Given at the Palace, this 6th of Oct., 1847.
(Countersigned)
" FRANCISCO ORLANDO,
" Minister of Finance."
Another decree, countersigned by Arrazola, Mi-
nister of Grace and Justice, directs Senor Garcia
Goyena to resume his functions as Judge of the Su-
preme Tribunal, which he exercised previous to his
nomination as President of the Council and Minister
of Grace and Justice in the Salamanca Cabinet. The
same person is also to resume his place as Vice-Pre-
sident of the commission for the reform of the crimi-
nal law.

The dispatches from the General, second in com-
mand in Catalonia, dated the 3d, state that a combat
took place between the faction of Castell and the
Queen's troops under Colonel Roure. The loss on
the part of the Carlists consists of eight men killed
and twelve wounded—the latter they succeeded in
removing from the field. A small quantity of arms
and ammunition was also captured, but no prisoners.
As usual, the loss on the part of the troops was
only one man wounded !

The same authority adds, that the combined fac-
tion of Castel], Vilella, and other chiefs, failed in
their attempt to enter into Berga, at least in the part
commanded by the fort.
tT They merely succeeded in
h taking some houses at e entrance of the town,
which their plundered, but with the loss of one killed
and several wounded—among the latter one of the
chiefs.
The opinion is entertained by certain parties here,
that if the Government of
which Narvaez have not yet com-
menced the outrages always characterised the
man who figures at its head, the forbearance is less
owing to any partiality towards a just and legitimate
line of conduct than to the difficulties which exist in
the Cabinet itself, and
which it would be dangerous
to augment. Perhaps e
this view of the case is not
entirely a mistaken o
into affairs believe that
; but those who look deeper
m
a system of tolerance, and
even of forbearance, f
been distributed to erms
part of; the role which has
the actors by the great manager
in the Tuileries. Louis Philippe is, very naturally,
unwilling to compromise
view by any premature the great object he has in
atrocities on the part of those
acting under his
people to a pitch orders,which would
and which might excite the
kwould endanger the mighty
interests that are at set
the Duke of a stake.
The despotic character of
allude to. Left to Valencia
is scarcely necessary to
known what the hero his own instincts, it is well
and there is no doubt of La Mancha is capable of;
he instantly obevedubt that his slightest nod would
for the nonce, - 1 by the lesser dependents who,
Narvaez is naturailla; the
character of his colleagues.
Narvaez has himself imperious and overbearing—but
is bound, just as mucha master, to whose interests he
to him. as Orlando and Co. are bound
guinary re-action, Notwithstanding,there then, the fears of a san-
in the fact that a ere would be nothing surprising
otherwise--that _s course of policy rather mild than
None but Mot is, for Spain—will be followed.
the civil and mikados
will of course be employed in
unforeseen occurrencedepartments; but unless some
be no very active e takes lace, perhaps there may
such as persecutioncharacterisedof the Liberals, at least
Narvaez's first entr.the sad and memorable days of
according to the into power. Such, at least
surface; is the opinion of men who look beyond the
his purportsuperiors received from of the instructions Narvaez
Paris ; and the gene before setting out from
present, would seeniral
toconduct of the man, up to the
act of plunderjustify that opinion. If the
successful, its value meditatedwill on the Crown of Spain be
been done in silence. not be:thelless because it has
One would suppose
swallowed General tl'a the earth had opened and
as he ought if all reco Serrano. That person avoids—
li
light
ed of him be true, even in a
small degree—the
those whom he is Lof day, and the contact of
accused of betraying. There is
some rumour, I know not how well or ill founded,
that that now well.
ivan person intends publishing
a sort of defence of the
What will be the character of
imputed to him.
will that defence it is not
difficult to say. Serrano probably allege that he
saw himself surrounded with
able to resist temptation. Anger, and no longer
was useless for him to e, will declare that it
the Progressistas ; that he witrpe to conciliate
still the object of
their suspicion, of their hatred,
oftheir fears ; and
while admitting the impartial justice of mankind
in the penalty inflicted on
treachery, he will
perhaps say that no one could
should sacrifice himself, even te°
rxpecer a place
defence be put forward by him
in
point to the neglect or contempt a tangible shape,
manifested towards
tetra him by the most faithful follower of his former be-
nefactor, of him whom he ayed in 1843. He
Colonel will, perhaps, complain that
.el Gurrea, on his
arrival at Madrid, did not visit
him—did not make
himself the hearer of some words
of kindness, of
friendship, on the part of Espsrt
ero ; and that his
failing to do so was the crownit:lin by
gproof of the hostile
feeling still cherished againstthe Liberals.
Yet who or what is Serrano to ssetu P a claim to be
of s
excepted from the ordinary rules panish society,
and from which the Sovereign, the government, or
the highest authorities, are only exempt? Is Ge-
neral Serrano the Sovereign of thencountryhigh offi.
mal cha-
racter ? Is he, in reality, possessed of that vast
power for good or for evil which the Faro and the
Herald() so long assigned to him under the name of
the " Influence," and which they so long held up to the
reprobation of the public ? Is it, indeed, true that
the fortunes of the country have been again sold ?
and is the conduct imputed to him on all hands—in
public and in private, and never yet denied by the
organs of the French party— false, so
somercenary,
so unfeeling ? Stories are told of scenes between
that man, and a person who must at this moment be
nameless, which, for a space at least, have to be left
untold; but which, if true, crown fitly the career he
has hitherto run. Those scenes, heartrending as they
are described to be, have decided the fate of the
country for the present.

We are now told that, seeing the inutility of a
longer residence in Madrid, or in Spain, and having
obtained all he wished, he intends retiring altogether
from the society of civilized men. It is said he in-
tends, after having arranged his affairs—which must
after late e vents be considerably increased in im-
portance—proceeding to Cuba, very likely as Captain-
General. General Serrano understands his own
vocation better than any one. Cuba is a land of
slaves, and there also men are bought and sold, as
they are in countries nearer home. Serrano has
begun to suspect that the mighty and mysterious
influence attributed to him by the Faro and Heraldo
is already failing him. He knew it the night he
accompanied Narvaez and Ros de Olano and the
Duke of Glucksberg, when he put the seal to his
reputation. He sees that Spain, fallen as she is, is
no longer the land for him ; and the peculiar traffic
so much to the taste of Captains-General of Cuba,
will not come to him unprepared. The difference of
colour is nothing ; they are still men by whom profit
can he made.

Previously to setting out for his new congenial
place of residence, Serrano, we are assured, com-
pleted his measures of bounty to his new friends,
and has given his consent to the recal of Maria
Christina. The Duchess of Rianzares., then, with no
doubt the whole brood of Alunozes, young and old,
returns to Madrid, and will put the finishing stroke
to the work so well begun. It is not certain whether
Generel Serrano waits her arrival.

We are told that when the plan for which so
many acts of shame and dishonour were done is all
but ripe for execution, matters will be arranged so
that a division of the French army will enter Cata-
lonia—the merest pretext—such as the increasing
boldness of the Carlists—being sufficient; and that a
division, of equal amount, •f Spanish troops will be
recalled from the Principality to Madrid. For what
purpose the French will enter Catalonia, and the
Spaniards be recalled to Castile, it is scarcely neces-
sary to say.
The time for both events to take place will be, in
all likelihood, during some period of the approaching
session of the Chambers.

The paper charged with the defence of the late
Cabinet, and, in particular, of M. Salamanca, has
ceased to appear. El Correo no longer exists. For
an injured man, a martyr to good faith, like Sala-
manca, his silence is most exemplary and most edi-
fying. Can it be true that there are, at the lowest
computation, 150,000 reasons for that silence ?
" Once this act obtained," says the Eco del Co.
mercio, "for we will not say abdication,' as we have
a high idea of the energy of the Queen, and we en-
tertain the intimate conviction that she will never
affix her signature, provided they do not use violence
with her hand, to a document which would involve
all Spain in a series of countless misfortunes—once
this Act obtained by France, the French party given
over to the French Government, all either bought
over, or domineered over, the nation exhausted, the
army gained—all being prepared beforehand, so soon
as it is known that force was employed with the con-
stitutional Queen of Spain, in vain would Spain rise
in favour of their Queen, in vain would gentlemen
rush to the defence of a lady vilely and traitorously
sold. The French power enthroned, and, as it were,
surrounded by another 100,000 children of St. Louis,
would erect scaffolds and crowd them with the most
loyal sons of Spain. The treason would succeed at
once. That which would follow afterwards, the evils
which this country would have to suffer consequent
on usurpation, seeing the actual state of Europe, and
the opposing interests of powerful nations, God alone
knows. We have revealed all that is projected, all
that is being realised ; we have performed a sacred
duty—and that is to declare the truth. We have
neither declaimed nor exaggerated. If what we fear
come to'pass, the fault is not ours, because we could
do no more than describe, and we have described it.
He who can prevent the evil, let him prevent it ; if
not, his be the responsibility—his be the fault."
The Countess of Montejo has been named to the
post in the Palace formerly held by the Marchioness
of Santa Cruz. Her son-in-law, the Duke of Alba,
is a member of the Mon faction. He is a deputy,
but his talents for legislation, like a true Grandee,
are confined to hearing and—voting when bidden.
The policeman Chico has resumed his former func-
tions in the service of his friend Narvaez.

The ex-lampooner of the mother of the Queen,
the well-known Gonzales Bravo, has blessed Madrid
with his presence, after a sojourn of some length in
Paris.

At three o'clock p.m. on the 10th will be held the
levee in honour of the Queen's birthday, who will
have completed her 17th year. A grand ball will
be given the same night by her Majesty.
Three per Cents ►•ere quoted at 26 if fer cash.
Five per Cents. at 17, paper. Passives, 51. No
operations quoted.
Exchange on London, 48d. 80c. 31.
—Times.