The Sun.
London, England, 1840-03-28 00:00:00

CHINA.

TO THE EDITOR OF TIIE SUN.
Fitt,—lt is rather remarkable that at a moment when
the subject of our relations with China are undergoing so
.mizela discussion in the public journals, and in various
pamphlets. most of them anonymous, scarcely any notice
has teen taken of the publications which. have, within the
test two years, appeared from the pens of those
whose
knowledge of the subject and local experience entitle
their odinions and suggestions to the utmost attention. I
allude to several gentlemen of the East India Company's
late Factr.ry at Canton. Sir George Staunton, equally
well known from his highly-distinguished talents and
Literary acquirements, as by his thorough knowledge of the
language and literature of China, published a few years
back a translation of the penal code of Chinese laws,
anal Sir George, if i mistake not, has on several occasions
spoken on abirs in China. in his place in Parliament.*
Sir James Wimston published a few years since, a sen-
sible, well-written pamphlet, the principal object of which
was to chow the policy and the advantage of the removal
of the Britieh Trade from Canton to the eastern coast of
the Chinese empire. And certainly ttic recent events in
that country, lead to the conviction that such a change
' wcuid be most important and beneficial to our valuable
Commercial interests in that q uarter. Sir James, in his
pamphlet, pointed out Chusan, a fine island, lying at a
very Onri distance off the north-eastern coast of China, as
particularly well calculated for our purpose. The reason-
ing, and opinions set forth by the writer, certainly appear
able, judicious, and conclusive. At any rate, it is to be
• hoped that the suggestions offered in this pamphlet, may
not be lost sight of in our present pending measures, or
negotiations with China. Mr. Davis, distinguished by
.his
iaients and literary acquirements, and for his extensive
knowledge of the Chinese language, has also published
several works on China. His recent one " The Chinese,
_ alicalads in valuable and authentic information regarding'
that empire. Mr. Davis accompanied Lord Amhurst's
embassy to Pekin in 1816.
Tho above-named gentlemen successively, as well as
merieseful4 and ably, held the important and very respeu.
sible situation of President of the East India Company's
Factory at Canton fcr several years each.
Mr. Lindsay, a late junior member of the East India
Company's Factory in China (and now, I believe, a private
Britisrh merchant there), published, about four years since,
an interesting account of a voyage made by him to
several of the north eastern parts of China in the ship
Amherst. In this voyage :dr. Lindsay showed considerable
tact, talent, address, a is.l spirit, and afforded much
tuiefal information respecting that part of the coast of
China and the inhabitants. He was accompanied by Mr.
Guzlatr, a talented Missionary, still in China, possessing
a very extensive knowledge of the Chinese language. Mr.
Guzlaff has since published, in this country, an highly in-
teresting account of the several voyages he made to the
coast of China; also an account of the Chinese empire,
replete with valuable information. The opinions and sug-
gestions of those gentlemen, and those of the distinguished
sad talented Missionary, the late Dr. Morrison, as well as
of aereral other gentlemen who held distinguished situa-
tions in the East India Company's Factory in China,f
plight to have considerable weight at the present juncture,
iii reference to the lamentable state of affairs in China.
I am, Sir, &c.
A BRITISH MERCHANT.

London, March, 1840.
* Sir George was Page to Lord Macartney in the Embassy
in China in 1794, and held the second post in Lord Amherst's
Embassy in 1816.
am not aware of their having published anything respect-
iag China.

MONEY MARKET and CIT Y NEWS.

(FRIDAY EVENING.)
HERALD.—Consols were slightly affected in the
early part of the day by the new complication of East-
ern affairs, reported this morning in the correspond-
ence of the Herald from Constantinople, and which found
A market (already weak and predisposed. They were
acing at 901 for money ; but a purchase of 40,0001.
in one hand brought them back again to 90} to for
money, end 90; to for account ; Exchequer Bills,
18s. to Vis. premium. Money is far from easy, but
some of the larger operators in Spanish have strong
interest ie. keeping the prices of Consols from a further
decline, at least until settling day.
In the Foreign House business was chiefly confined
to Spanish Stocks, in which some fluctuations of tri-
ging extent occurred ; but the quotations of the Active
Stock with the May Coupons eventually settled at
214 to . The account-day is looked forward to with
some anxiety, as it is generally understood to be a bull
speculation to an extent which may create a good deal
of difficulty among dealers in taking their stock, and
pis* money for that purpose.

~.MES.—A pamphlet on the pressure on the
tr.Y.ry :maiket in 1839, by Mr. J. W. Gilbart, ma- I
nage; of !Ile London and Westminster Bank, has '
ius.. 4,cen pub:shed, and, without attaching too much I
impel tance to the author as an oracle on such matters, '
his work may be regarded with interest, as probably ex-
pressing the sentiments of the junta of joint stock banks
of which he is a member. Mr. Gilbart's main object
is to n.ova the fallacy of a principle admitted by very
many persons—viz., that when the foreigh exchanges
two favourable, the circulation ot bank-notes should be
rease,t, and vice versa. The soundness of this dot-
t! ne calls in question, and denies that the mere cir-
eutustan7e cf the Bank having more gold or silver in
their vaults (in consequence of a favourable course of
exchange) justifies them increasing the issues,
whether the state of trade autirtids such increase or
not. The foreign excl;:alges being never stationary,
03 the accounts between this and foreign countries
are r.ever precisely the same, a regulation of the
currency by the exchanges must necessarily cause a
perpetual fluctuation in prices. "In all countries,"
Mr. (.iilbart observss, " the amount of currency will
Quettr.te to a certain extent in consequence of the
increase of trade, the increased quantities of commo-
dities. the advance of prices from scarcity, and other
causes.' Thus, in the south of Ireland the variations
in the corn, butter, and bacon trade, regulate the
amount of circulation, and here, as the demand for
money regulates the issue, the prices are unaffected
by the increased issue, while the foreign ex-
ehasges are unaltered. These changes, which im-
mediately grow out of the state of trade, Mr. Gilbart
considers as legitimate, and contends that the regula-
tion of currency by foreign exchanges, with which these
variations have nothing to do, will materially counte-
ract their effect, and lead to such anomalies as contrac •
tion of currency when extension is required, and vice
versa, merely because the forei;n exchanges happen to
be favourable or untavourati.e. The circulation of the
year 1837 is adduced as a ease in point, when, al-
though the state of trade did not require an extension
of currency, the Bank, as exchanges were favourable,
increased their issues during the whole year. Hence,
menev not being absorbed in trade, came to the capital-
ists, laterest tell, and recourse was hail to American
securities to obtain a higher rate. And this, says Mr.
iiilbart, was the first step towards the pressure of 1839.
Besides laying down this general principle, the writer
go,-ts into a long and ingenious line of argument on the
pceorer of the Bank to control the exchanges, so as to
"wing hack exported gold by a contraction of issue. In
Ole course of the discussion he questions the soundness
ot the presumption that the export of goods will imme-
diately regulate the exportation of gold. When the
exchange is unfavouroble merely from the balance of
trade. and gold is exported as a cheap mode of payment,
I of course a supply of bibs wig check such exportation.
.13 u t :t the demand for gold arias from an importation
ei fi.reign corn, or from poLtical causes (as a desire
front some foreign power to borrow), then it will be ex-
portal whether there be a supp!y of bills or not.
Toe :?ifferences between the pressure of 1836 and
I hat. af 1339 are thus enumerated by Mr. Gilbart
• Ibiewsurizig, the pressure by the difference between the
:arge.,t awl lowest stock of gold in the Bank of ling-
hind, the pressure of 1836 is ill be from 7,801,000/. to
; that of 1839, from 10,126,000/. to
2,5;15 In 1836; there were mans considerable
failipss ; in 1839 scarcely one failure till December,
and then only among second-rate traders. In 18:16
prices fell almost immediately ; in 1839 they continued
t for a length of time nearly the same. In 1833 the
Bank did not raise interest. above 5. but in 1839 it was
saiaeil to 6 per cent. In 1839 the Bank gave notice of
a willioxaess to sell the "dead weight:. and made ar-
naveneats for a loan with France, neitherofwhich
measerea were adopted in 1836. In 1
536 the Bank cf
Enghu.d rejected tie bills of jaint-stock, and in 1839
these ot private banks of issue.
Of the above it may be said that. the principles first
stated arc good, and that the fact.s last adduced are ex-
reeediwgly curious and instructive.

•
SC N.—The Tea and Coffee Markets closed.
which
heavily this afternoon, except foreign Coffees, will
. firm. h are
The rates for Bills of Exchange on the principal cities
of the Continent, were much the same as on last post
i day, except Paris, which was a shade lower, being
26 f . 52ic. to 3.5ic.; Hamburg was 13 9} to i ; and
1 4pisterilam I'2 ii.
The English Stocks closed rather heavily. Consols
1 for Si.oney left off at 901 -i, and for April at 90i 1;
Exchequer Bills at. 16s. lbs. premium ; and East India
Stock for the opening,249.
It was ;aported this afternoon, that an express bad
rcaehed town from Paris, announcing the fact of a ma-
-I;;rity baying been obtained in the Chamber of Deputies
by M. Thiers • this rumour was, however, not cen-
t firmed. Spanish Active Bonds closed at 2731 ; Colum-
.l Irian at 24i ; Mexican at 28 ; and Dutch Two-and-a-
Half per Cents. at 54.
~* The Railway Shares were in rather brisk demand.
i The Brighton obtained Ili ; the North Midland 3i ;
I and the Greenwich Ili
06; and the Great Western ;s
r)n
premium.7turst;the Birmingham

The Earl of Minto and the Board of Admiralty
have ordered the establishment of workmen in the dock-yard
,t. Chatham to be increased considerably—the shipwrights from
)0 to 500, and other trades in proportion ; and 169 men are
f, is be hired during the summer months, to repair the build-
„ii, Ake, in the yard, so that the men on the establishment
""ci; e wholly employed in the building and repair of ships.
t Aye understand that her Majesty, having been
P-,11,044.1 to approve the wood pavement laid down at White-
e°mrnanded that the drive through the marble arch
ftr to . Buckingham Palace, as Kell as that under the pvrtiur
To", Jhall be paved in a similar manner.