The Sun.
London, England, 1847-11-09 00:00:00

RETROSPECT OF IMPORTANT

EVENTS IN THE LAST TWO YEARS.
(FROM A CORRESPO:ZDENT.)

In continuation of the retrospects inserted in The
Sun on the 19th and 29th ult., I send you an abridg-
ment of the proposed amendment of the corn-laws,
which was sent to Lord John Russell, Sir Robert
Peel, and others, about the 27th of December, 1845.
stating
The proposed amendment was a " Bill to allow corn
to be imported at a moderate duty (or nominal duty),
t
and, It to prevent the bullion being exported to pay for
i‘s'ilTveh
silver
t m excessiveohey
o f thisi m -
portations of corn occasioned the export of a very
large amount
of commenced
the b y
gold
and
realm, which obliged the banks to contract the issue
of their notes; that both these lessen the value of all
the property in the kingdom, diminish the revenue,
and are very injurious to the productive and indus-
trious classes of the community.
"Be it therefore enacted, That from and imme-
diately
i after the passing of this Act, all corn im-
ported into this kingdom shall be liable to the duties
in schedule A (that is, wheat 20s. per quarter ; other
grain in proportion), unless the vessel by which such
corn is imported shall, the voyage immediately before
or after,take out to the kingdom from whence the corn
is imported, for merchants, there a cargo of British or
Irish manufactures of equal or greater value, in which
case the corn shall be liable to the duties in schedule
B (that is, to a moderate fixed duty or a nominal
duty)." Then followed clauses for levying the 20s.
duty on part of the cargo where the manufactures
exported were of less value than the corn ; equitable
rules for valuing the corn in British and foreign ships
penalties for frauds, and a suspension of the 20s. duty
where it could be ascertained that the balance of trade
was in favour of this country with the nation from
which the corn was imported.
This proposed amendment of the corn-laws was
rejected by the Government, and Sir Robert Peel's
Bill was adopted in its stead. The construction of
railroads proceeded with imprudent rapidity ; the
demand for foreign corn became enormous ; the bul-
lion in the Bank diminished several millions; and in
the autumn of 1846 there was a seconi deficient
harvest, with the enormous demand for corn still
continuing. It became evident that Sir Robert Peel's
Corn-law Bill must be altered ; when, as a remedy
for the disasters that were besetting the country from
a want of corn and a want of currency, Lord John
Russell's suspension of the corn duties was tinkered
on to Sir Robert Peel's Corn- law Bill. While the
corn merchants were waiting for the Suspension Bill,
they limited their imports and kept up prices. But
as soon as that Act was certain of passing, they
engaged a fleet of the largest ships in the coal trade and
coasting trade and sent them in ballast (not with
British manufactures) to foreign countries for corn,
and next left them to return to their former trade.
The bullion has since been drained away for the
corn, and all the disasters have followed which Lord
John Russell and Sir Robert Peel were warned of,
in the clearest manner possible, in 1845. I think the
only Member of Parliament who told the Govern-
ment, in the spring of 1846, that their corn-law
would greatly diminish the gold and injure the
commerce of the country, was the eminent Railway
King.
I have been informed that a copy of the letter and
Bills sent to Lord John Russell, Sir Robert L'eel, and
others, was also sent to the directors of the Bank of
England, to ascertain if it met with their approba-
tion, and that nearly all the banks, as well as the
Bank of England, have ever since been acting on the
principle on which those Bills are founded, by giving
more liberal accommodation to persons concerned in
the export of British manufactures than to any others,
and by refusing it altogether where it was likely to
promote the export of bullion.
I believe it is a well- known fact that when
foreigners are draining away our gold, the more paper
money there is afloat the faster the gold vanishes.
This has been felt in foreign countries as well as in
England.
For the last twenty years, whenever it has been
necessary to put a stop to the export of bullion, the
banks have always effected it by diminishing their
issues, and diminishing accommodation. It appears
by the former retrospects in The Sun, that for this
purpose the banks have diminished their issues since
1844 about fifteen millions. Lord John Russell
now proposes to mitigate the disasters with which the
commerce of the country is beset by acting exactly
contrary to all the bankers, and by extending the
issues of the Bank of England. I agree with the
author of the articles in the Times, and those who

entertain similar opinions, that it will most probably
aggravate the disasters ;—unless, indeed, the above
amendment of the corn-laws is adopted, or some im-
proved modification of it, to prevent the bullion being
exported for excessive importations of corn.
If such an amended Corn-law Bill is passed, the
enterprise of the railroad makers will increase the
energies of the British and foreign merchants, and
increase the demand for British manufactures. It
will also increase the imports of corn without draining
away the bullion to pay for it, an:l it will render un-
necessary the Bill proposed by the Manchester
Chamber of Commerce for dissolving existing com-
panies or impeding their progress. The railroad
makers have increased the wealth of the nation in
permanent property in a few years more than any
companies or partnerships that have ever existed in
this country. I think, therefore, they should be en-
couraged and fostered as much as possible where they
do not injure the shareholders by making the calls too
rapidly, and while they refrain from causing excessive
importations of corn and an export of the bullion.
As the wealth of the nation increases the currency
must also be increased, and Sir Robert Peel's limit on
the Bank notes must be removed within a short
period. But, while there is a drain on the bullion,
and while the present defects remain in the corn-
laws, Lord John Russell's measure for increasing
the paper money is premature.
Nov. 9, 1847.