The Sun.
London, England, 1841-05-25 00:00:00

Reduction of circulation

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At 3(1 April, 1838, the bullion was .£10,126,000
On the 27th of April, 18.11 4.538,000

£5,588.000
•
Had the Bank been in a sound position, at present the ratio
of the gold to the circulation should have been the same as it
was in April, 1838; but instead of that the diminution of the
bullion has been, in round numbers, 5,500,0001., while the de-
crease of the paper currency has been only 2,400,0001., so
that the Bank is unsound at present just for inasmuch as that
difference of proportion, or 56 per cent, in the space of three
years. This is the result of applying the rule of soundnesslaid
down by the Direc'ors themselves, and no one can find fault
when they are tried by the test of their own doctrine.
The Securities in April, 1838, were £22,838,000
At April 27, 1841 22,082,000

756,000

Making a difference of
Which does not affect the matter either way.
But the facts thus deduced from contrasting the proportion
of bullion in the Bank with the amount of her circulation as
she stood at the last return, with the bullion and circulation
when her position was declared to be sound and proTerous,
must make the Proprietors of Bank Stock think seriously on
the present state of our continental trade, and convince them
that prompt and energetic measures must be adopted to give a
healthy action to the foreign Exchanges, and to turn back the
flux of gold to the Bank coffers. The importance of such a
measure is not confined to the class interests of Bank Stock
Proprietors. The Bank of England, as manager of the na-
tional currency, is the mainspring of public credit, and if that
be snapped the whole chain of commercial confidence must
be broken, and s. general convulsion and panic. in the Money
Market inevitably ensue. All men, therefore, have an inte-
rest in supporting confidence in the Bank of England, be-
cause all men would suffer if the Bank were obliged
to suspend specie payments. It is with the view,
therefore, of inducing the monopolists to pause and
to reflect upon the feeble state of this mainstay of public credit
that we have illustrated, by reference to the Bank returns, bow
far the position of the Establishment renders it prudent for
them, with due regard to their moving principle of action, viz.,
their self-interest—to persist in a course of conduct opposed
to the principles of free commercial intercourse with other
nations—how far it is safe and prudent for them, under these
circumstances, to resist the demands for cheap bread, and for a
reduction in the price of other necessaries of life. It is no-
thing but public confidence that sustains the Bank at present.
It is not her own strength, but the interest which all classes
have in supporting public credit that maintains the value of the
currency. Let the monopolist, therefore, beware of pressing
too much upon the miseries of the people. Hunger is not to be
appeased by parliamentary majorities ; and if the monopolists
carry out their opposition tothe measures of relief proposed for
the country, the people have the remedy in their own hands.
But the truths which we have here stated as regards the Bank
of England are too palpable and unquestionable to admit of
a continuance in the system of monopoly. The profits
which particular classes have reaped and still enjoy, from the
restrictive duties' on trade, are no doubt great, and it is not
to be expected that they will be abandoned without regret—
without a struggle ; but when it is seen that the alternative is
between concession on the one hand, and a general money
panic on the other hand, and when these consequences are
fairly weighed, we are satisfied that the preponderance of pri-
vate interest will stand so much in favour of a liberal commercial
policy, that monopoly must ultimately kick the beam, Since the
spring of 1841 the exchanges have evinced something of a
better appearance, but the change has not been pro-
duced by the legitimate operations of trade. The low state of
the circulation, and the tightness of money, have been the chief
agents in the work ; and, to some extent,- the bills on the Con-
tinent have been drawn against shipments of silver. The best
part of the season is over, and yet there is no life in our ex-
ports, and the home trade breathes nothing but stagnation.
The weather is no doubt favourable, which is a most fortunale
occurrence, and with a good harvest the Bank may be able to
rub on, but there is nothing in the future which presents a
cheering aspect. There is no way by which fresh life and
vigour can be imparted to the wretched condition of the ma-
nufacturing interests except by revising the fiscal duties on im-
ports. and displacing protection by revenue as the rule of
taxation.

POST.—To-morrow being acceunt-day in Consols, the de-
aeration of options took place this afternoon, at a quarter to
four o'clock, when an extraordinary scuffle was witnessed ;
speculators for the rise or fall having to establish the point
whether the quotation should be determined 90 (buyers), or
90 sellers. The " bull" party prevailed. Consols were kept
up to 90 (buyers), at which price a great quantity of Stock
vsas put." The continuation from account to account was
currently done at per cent., the rate given being, however, in
some rare instances, as high as %. Money for short periods
was commonly to be had, on the deposit of Stock, at 5 per cent.'
per annum. The closing quotations for the English market,
were pretty much the same as on Saturday.
An attempt was again made to stimulate the prostrate Span-
ish and Portuguese markets. The intelligence of a further
remittance having been made on account of the Portuguese
half-dividend—and what a pretty ally Portugal must be to pay
half-dividends to her generous English creditors and support-
ers, while her home creditors continue to be paid in full—
was the only pretext offered for renewed dealings, nor were
they carried to an extent to produce an improvement in prices
of more than * per cent.
The news received of a large steam-vessel, the same sup.
posed to have been seen off the Cape de Verd Islands, having
been discovered progressing on her voyage towards England, has
greatly revived the hope that the latter may prove to be the
President. The colour of the funnel, and some other parti-
culars given of the vessel alluded to, seem to present a dis-
crepancy which should furnish grounds for caution. but the
.1
whole statement is confused and imperfect, and the public wet
naturally catch at the main points as correct, and such as, n
mea),
justify the conclusion to which they are disposed to com...
the subject.
SUN.—Money has been very scarce all day, and bore
an interest, for short periods, equal to about ii
cent. Since the 15th of April last Consols
were marked
nated from 90a to 89i. To-day they haveand aBlt per,er
to 90 for present delivery. Ex'Lliewere Bs.
premium.
to 10s. premium, and India Bonds p
Bank Stock touched 169, and the Re-l'ireed Three-and-a-
querto2 Billss.
The Market left
Half per Cents. ware at 97i to 97.4,
-off well.
In the Foreign Market business continues as dull as
ever. The accounts from
SA y ;and those from
Spain
give no positive intelli-
gence yet respecting the newria finistr
Lisbon only add to the know edge.we possessed before of
the extreme penury of the Royal Treasury. Active
d to
;Portu-
guesequoteSpanish Bonds were to-day
New, 34:1- ; the Three per.
.Cents., ; Mexican,
.2S; Buenos Ayres, 23 ; Brazilian, 68A ; and Peruvian
16. These prices exhibit a trifling depression in Spa-
nish, and a rally of about one half per cent. in Portu-
us
and the Five per Cents. at 99a ;
e• ee. Dutch Two-and-a-Half per Cents. were dull at
:s:oe Belgian Bonds
were firm at 100.
The Railway Shares were in limited request onlv.
Brighton were marked 44 to 4; Croydon, i; Manchester

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