The Sun.
London, England, 1848-08-14 00:00:00

THE CURRENCY.

We have already adverted to the strong opinion ex- !
pressed by the Committee of the House of Lords on the
affairs of the currency in favour of the " convertibi-
lity" of bank-notes. The Committee—if its collective
opinion be rightly expressed in the report—have no
doubt at all that, at all times, and under all circum-
stances, Bank of England notes should be exchange-
able for a fixed amount of gold, and that the
law should be so framed as to support this principle.
We can never mention this principle—no matter how
high the authority may be which supports it—with-
out, on our part, expressing our utter disbelief in its
soundness. Our conviction is, that the monetary and
mercantile circumstances and transactions of this
country must either be contracted within a very
narrow limit, or must be subject to most disastrous
fluctuations and vicissitudes, so long as we attempt to go
on with a bank-note currency, convertible at all times and
under all circumstances, into a fixed amount of gold.
Our present purpose is not, however, to carry on
that controversy, but to impress upon the minds of
our readers that, be the policy of convertibility good
or bad, the danger to which the country has for many
years been subject, in consequence of the existing
monetary laws, has been greatly aggravated by the
law of 1844. To the danger which always existed
from promises to pay in gold far beyond the amount
hell by those who issued those promises —to the
danger which always existed from the currency of the
country being liable to be exported as merchandise,
is 'added the very great danger of rendering the bank-
ing department of the Bank of England, at critical
and difficult times, unable to meet its engagements.
" If," say the Lords, " if the Committee considered that
the Act of 1844, which they desire to see amended, so
far as its restrictive clauses are concerned, was
essential to the practical convertibility of the bank
note, they would hesitate in recommending any
change." But, say they, in addition, "it should
never be forgotten that the liability of the Bank
consists in its deposits as well as in its pro-
missory notes. The legal obligation to discharge both
is the same; the failure• of either would be equally fatal.
The protection given by the Act of 1844 is mainly given
to the bank-notes, and in some degree at the risk of the
-deposits. This appears undeniableou comparing the reserve
in the, third week of October with the amount of private
deposits. Had any unfortunate circumstance interfered
with the power of meeting the latter engagements, or
. had not the Treasury letter (of the 25th October)
been written, there seems little doubt of the
fatal consequences which must have ensued. Had
it been impossible to pay the deposits, a dis-
credit of the bank-note must have been the con-
sequence. Nor can it be rationally questioned but
that a misfortune might haVe exposed to risk the con-
vertibility of the bank-notes." Thus, then, we find the
Committee of the Lords, who have examined evidence,
and who have judged after the event, come to just the
same conclusion which we and some others came to when
reasoning upon the probable tendency of the law, before
the Treasury letter was issued. We then pointed out the
probability that, owing to the pressure of the law of
1844, the Bank of England might break at one end
(namely, the Banking Department) while at the
other end (the Issue Department) it was loaded with
millions in gold, for which, at the time, there was no
particular demand. What the public wanted was, not
gold fur their bank-notes, but bank-notes for their
bills, bonds, and all the sundry inventions whereby
the great credit system is carried on. A party in this
country, of which Sir J. Peel is the chief, have a very
great interest in supporting the high exchangeable value
of money. That party had so great an interest in limit-
ing the quantity of money, and making paper money con-
vertible into a fixed amount of gold, that, in procuring such
arrangements of the Legislature as seem most favourable to
these ends, all other interests are either overlooked or
deliberately abandoned. Thus it happened that the
men, by whose influence the law of 1844 was made,
gave protection to the convertibility of bank notes at
the risk of all the individuals, all the companies, and
all the institutions of this country who have deposits
in the Bank of England. The Lords' Committee de-
clare, as we have seen, that if the law of 1844 had
not been broken through, and the violation of it
authorised by the Government in the Treasury letter
of the 25th of October, 1847, there seems little doubt
but that the Bank of England would have had to
declare itself unable to pay its deposits. And
yet that law continues unrepealed, unamended,
and, were the circumstances of October, 1847, to recur
in October, 1848, the Government would again have to
authorise oa violation of the law in order to save the
banking department of the Batik of England from in•
solvency, and the country from all the discredit and the
ruin which such an event would inevitably occasion.
What, then, is the real state of the case as laid
before the public by the House of Lords ? It is this, '
that upon occasions of monetary pressure, such as hap-
pened last autumn, either the law must give way or the
Bank must give way. If the law does not break,
the Bank must break. If the law bo not violated
by the Government, the Bank must violate its en-
gagements with the public. This is the view which
the Committee of the Lords give us of the state of things
brought about by the monetary policy of Sir It. Peel.
This is the state of things which the Committee of the
House of Commons would have condemned, as well as the
Committee of the House of Lords, but that Sir H. Peel and
his colleagues presumed to act as judges upon the trial of
the working of their own measure. The Commons
would have joined with the Lords in the condemnation
of the law had not its authors possessed the unparalleled
effrontery to vote as judges in the cause to which they
were parties, and the country been the victim of such
unparalleled fatuity as to submit quietly to the gross in-
justice of that proceeding.—Post.

NAVAL INTELLIGENCE.
THE MEDITERRANEAN SQUADRON.
CASTIMLAMARE, NAPLIKEi, AUG. 3.
On Saturday, the 29th ult., the squadron, consisting of
the Hibernia, 104, flag ship of Vice-Admiral Sir W.
Parker, Commander•-in=Chief; the Howe, 120; Queen,
110; Rodney, 92; Superb, 80; Vanguard, 80; Ven-
geance, $4; Thetis, 36; and the Bulldog and Hecate
steamers, anchored off Naples between 5.30 and 8.30
P.M., much to the astonishment of the inhabitants, and
particularly goof the King. Prior to the fleet anchoring
the Thetis and Bulldog had communicated with the Ad-
miral from Naples.
The squadron left Palermo, on Sunday, the 23d of
July, at daylight, in company with the French line-of-
battle ships Jupiter and Jena. At two P.m. the Howe,
120, joined company, eight days from Malta; had a trial
of sailing, close hauled, for a few hours, wind very light.
The French ships forereached considerably, but the
Queen, Superb, and Artingerd clawed to windward very
perceptibly. The French ships were light, having very
little provisions on board. Ou the 26th, after saluting
Sir W. Parker with fifteen guns each, they stood back
to Palermo, whence report sent them to Sardinia for a
supply of provisions.
On Monday, the 31st,-being the birthday of the Queen
of Naples, the squadron dressed ship and fired 21 guns
each. A court was held at the palace, which the admiral
and captains attended. The Neapolitan steamers, in
number about 19, anchored outside the mole, as also did
two French war-steamers and the Dutch steamer-of-war
Porcupine.
On Tuesday, at eleven a.m., the squadron, with the
exception of the Bulldog, weighed with the sea-breeze,
and proceeded to the anchorage off Castellamare, where
by four P.m. the whole were anchored in line, north and
south nearly of each other.

Yesterday there was a double-banked 60-gun frigate
launched from the Royal Dockyard here.. She appeared
to be of about 1,300 tons. Admiral Parker and suite
and several other officers were present. • The squadron
corning in at this time is quite a fortune to the Neapo-
litans, the seamen having just been paid advance and the
officers having just got their bills cashed, so that some
thousands of pounds will be in circulation ashore. It is
said there are upwards of 100 bullocks killed daily to
supply the squadron.
To-day a court martial assembled on board the Queen
to try Lieutenants Bedingfiold and Hamilton, of the
Hecate steam sloop on charges preferred by the Com-
mander (Moorman) of that vessel. The court assembled
at the usual hour (9 A.m.), and adjourned at 6 P.M.
A French war-steamer arrived this morning from
Palermo, which the French squadron had left for Cag-
lionea Bay; prior to the steamer leaving Palermo a false
report had got abroad:of 20,000:Neapolitan troops making
good their landing at Syracuse, where the Sicilians in the
neighbourhood rose en masse, and every ono that had a
musket marched to meet the supposed enemy.
News arrived this morning that the Austrians had
defeated the Italians at Rivoli.

The Admiral and squadron remain here until after the
court-martial, after which he, with two or three other
ships will go to Naples, leaving the other portion of the
squadron here. Further movements are at present un-
known, but it is not expected the fleet will return to
Malta before October.
The court-martial on the officers of the Hecate ap-
pears likely to last five or six days. The French Ad-
miral Baudin is at present at Jachia' taking the benefit
of the baths ; ho had been laid up for some time with
disease of the knee. Everything appears quiet and
peaceable here ; there are numbers of English families
here and at Serrante. The Sidon steamer frigate is ex-
pected hourly from Malta with dispatches. There ap-
pears no likelihood of the Rodney or Superb leaving the
squadron for England for some time.
PORTSMOUTH, AUGUST 13.—We have much pleasure
in announcing the promotion of Commander William
Radcliffe, late of the Apollo troop ship, to the rank of
captain. This is a most just set of the First Lord's.
No promotion ho has made since in offico has reflected
More credit upon him. Commander Radcliffe entered
the service in June. 1809. served all the war, was pro-
moted lieutenant in 1816, for his services in Algiers e
was promoted to commander in 1830 ; since which time,
until his obtaining. the command of the Apollo, he was
unemployed. His meritorious services were given fully
about twelve months since, when Commander Clifford
was promoted.
Commander Francis Scott, 1841, is also promoted to
the rank of captain. He shows no services in the New
.Navy List.
Lieutenants C. J. F. Ewart (1841) and J. A. St.
Leger (1841) are promoted to the r
list ankofgeivoemsmnaonder
The latter was mate of the Blenheim in 1841, at the
ser-
vicestaki of thengof Amoyforthear.nd Chinghae. The