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

TH.I3

year, but an arrangement was then made before Mr.
Arnold, and no costs were then allowed.
The REVISING BARRISTER said that he could not
recognise or sanction any such arrangement.

SPORTING INTELLIGENCE.
NEWMARKET SECOND OCTOBER MEETING.
LATEST BETTING ON WEDNESDAY NIGHT.

CAMBRIDGESHIRE STAKES.
The field agst ten—taken 17 to 1 agst Queen Mary—t
13 to 1 agst Geraldine 25 to 1 agst War Eagle
14 to 1 agst Foreclosure 25 to ] agst Rob Roy
14 to 1 agst Collingwood—t 25 to 1 agst The Cur
15 to 1 agst Giselle 25 to 1 agst Newcourt—t
16 to 1 agst Prior of St. 25 to 1 agst Reminiscence
Margaret's—taken 30 to 1 agst Patriot
17 to 1 agst Blackbird 40 to 1 agst Rough &Ready
17 t. 1 apt George Hudson —taken
—taken ,40 to 1 agst Brocardo—t

a FRIDAY.

THE COMMERCIAL CRISIS.
70 771 E EDITOR OF THE SUN.
Sin,—l 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-preservatson 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
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 ! 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
mere invention 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,
devouring its own children. Few are willing to
come forward and lead public opinion in such a crisis,
lest it should be 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 THE 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.,
bearing 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 11.
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
convertible 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 pip-
vide for them as they become convertible, either by
gold, if the quantity in hanc . 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 wimld 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 cir.Tulating medium for
carrying on the business of the co wary, 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 w. ould tally with
the amount, and the large ones beivig convertible
into gold would soon be exchanged for the small ones
out. The profit on the issue would au ply repay the
Bank. Apologising for this intrusion,
I am, Mr. Editor,
Your obedient servant,
A CONSTANT .READER.
City, Oct. 14, 1847.

TEE ROMAN CATHOLIC PRIESTHOOD v--0111* 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 list of thos e who have
fallen victims to the prevailing fever, while braving its
danger to administer consolation to the sick and (tying.
—Newcastle Advertiser.

SOUTH ESSEX:riErORM ASSOCIATION.—A moeting
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 submit ted, and,
after discussion,' carried unanimously. it I 'resident,
Vice-President, and Committee were appointed, whose
names, it was resolved, should be announc. ed by adver-
tisement in the London papers.
M. Negrelli, the Austrian civil engineer, is making
preparations to leave Vienna for Egypt, to join the
Erench and English engineers in the form ttion of the
canal of Suez.

BRISTOL SUGAR MARKET, OCT. 13. -The business
done in sugars during the past week has b een too limited
to make quotations accurately, indeed. there seems a
mutual disinclination on the part of both buyers and
sellers to do business for the present.,.--Bristol Vazette.