The Sun.
London, England, 1856-12-23 00:00:00

LONDON, TUESDAY, DECEMBER 23, 130.

LOUIS NAPOLEON has received a significant
hint from the Minister of Finance. He is told
that he must be a little more economical—or, in
the euphonious language of Courts, must " put
a limit to his munificence !" In 12i6 there was,
according to M. ACHILLE FOULD, "an excess of
receipts, which acts of liberality have nearly
cancelled." The extra and unforeseen claims
upon the Civil List arising from these " acts"
have amounted, within the ye ar, to no less than
6,300,000 francs (252,0001. sterling). It
is unquestionably pleasant to display great
and profuse generosity. Economy is by no means
a popular virtue. It is much more agreeable to
give, than to hold what our Scottish brethren
designate as 44 a tight grip on the world's gear.'
But men must be just before they can be generous,
and in these respects even Emperors are assimi-
lated to ordinary mortals. When the people are
compelled to submit to serious privations any-
thing approaching to extravagance at head-quarters
will be severely criticised, and such "little bills"
as a quarter of a million sterling for un-
foreseen items, although arising from the
great "liberality" of the Sovereign, may
lead to very unpleasant comparisons between the
expenditure of an Empire and a Republic.
If Louis NAPOLEON desires to indulge in these
displays of Imperial munificence he should be
prepared to concede measures by which the
national revenue may be so greatly enhanced as
to justify the extraordinary outlay. But he seems
to entertain profound objections to the only means
by which this great desideratum can be achieved.
He still clings to " Protection," and if not abso-
lutely' refusing any approximation to Free Trade,
at all events procrastinates the period when the
public finances may be ameliorated by its
salutary aid. In place of realising large
sums to the Imperial Treasury by duties
charged for the purposes of revenue, he
still sanctions a tariff in many respects absolutely
prohibitory, and abides by a system of currency
by no means calculated to develope the national
resources. He has not profited in these
respects by his English lessons. Although
he has received salutary lessons in the
school of industry, he still abides by the
fallacies of monopoly and the mischievous
theories of the PEEL-OVERSTONE currency quacks.
Could he make up his mind to deal boldly and
wisely in respect to these all-important questions,
he might still indulge his " munificence," since
that is the phrase, without injury to the great
nation over which he presides, or loss of that
popularity which he is so anxious to maintain.
He has great power either for evil or for good,
and his future will greatly, if not altogether, de-
pend on the mode in which it is exercised. Let
him at once and for ever discard the incubus,
Monopoly. Let him even send with it the minor
demon of Protection. He may safely trust to the
skill, ingenuity, and industry of the noble people
of France. With the qualities they possess, they
need not shrink from the ordeal of " unrestricted
competition."

Let him further supply a circulating medium
adequate to the wants and exigencies of the na-
tion, that will give fair play to industry, and dis-
courage one of the gravest errors of the French
disposition—a tendency to secret hoarding. The
use of a well-devised system of small national
notes for 20, 30, 40, and 50 francs, receivable in
payment of every public impost, would liberate
a quantity of gold sufficient to place the national
finances in a truly satisfactory condition, and to
enable him to indulge his munificence without
remonstrance from the most cautious Minister.
He cannot, however, at the same time, maintain
enactments that lead to great tightness in the
Money Market, and display a lavish and unli-
mited expenditure in matters where his own
caprice or "generosity," to give it the best name,
is concerned.

The Bank Returns for the week ending the 12th
instant are
Cor-
poration very satisfactory, so far as the Cor-
itself is concerned. The bullion and
the notes unea,
eyed. are again largely increased,
while the cotes in tes circulation and the "other
securities" are
greatly diminished. The effects
of the stringent application of the screw are thus
clearly exhibited. ; and
were it a private establish-
ment there would be ample grounds for rejoicing
at the changes exhibited. But we cannot forget
that it is a quasi national institution, or the
deplorable effects produced on
the trade and
manufactures of the country by the reduction of
legitimate accommodation, and the comparative
scarcity of tile circulating medium_
the very life•
blood of industry—produced by these operations.
The industrial community have received a heavy
blow and great discouragement; and although the
minimum rate of discount has been reduced to
6 per cent., the alteration by no means compen-
sates for the diminished facilities afforded to the
trading population.

Within the week the bullion in both depart•

ments was increased by 206,328/. ; within a
month by 1,008,3691., for on the 14th of No-
vember it amounted to 9,684,1571., and on au)
13th December to 10,692,5261. The notes un-
employed were increased within the week by
671,805% They now stand at 5,823,185/., on
the 7th November they were under 3,000,0001.,
thus showing an increase to the banking reserve
of nearly 1,855,000/. The notes in the hands of
the public have been reduced within the week by
neatly half a million sterling (492,3307.), stand-
ing at 18,702,8101., while on the 7th November
they were 20,239,000/. The private or " °their"
securities eve been decreased within the week
560,9871., leaving on the 13th only 16,828,728/.,
while on the 14th November they were
19,054,000/. These simple facts and figures
prove, beyond the possibility of doubt, the
violent action produced on the commercial popula-
tion by the withdrawal, in a single establishment,
of nearly 2,300,0007. of accommodation within
four weeks, and the reduction of the active circu-
lation by more than a million and a half, which,
according to Lord OVERSTONE himself, must
" narrow the amount of bills of exchange in a
very increased ratio."

Is it jest or fair that such important alterations
should be produced, within so short a period, at
the mere will and pleasure of an irresponsible
body, whose private interests are conflicting with
those of the people ? It is greatly to their ad-
♦antage to enhance the rate of interest, or rather
discount, for there is an extraordinary difference
between the returns obtaißable on permanent in-
vestments and temporary advances, and they
spare no exertions to do so without reference to
the welfare and prosperity of the general body of
the people. They must make the largest amount
of profits possible for their constituents, the pro-
prietors of Bank Stocks, and it is alike unfair to
the Directors and to the community to subject
them to such extraordinary temptation. The
dividends paid by other judiciously-managed
Joint-stock Banks clearly show that they would
not suffer any pecuniary loss by the abolition of
the anomalous and impolitic privileges so long
conceded.

England requires a really National Bank, the
control and management whereof shall be vested
in a public department, responsible to Parliament
for the manner in which the monetary affairs of
the empire and the national currency shall be
administered. A golden opportunity exists for
placing these all-important matters on a satisfac-
tory foundation. The Bank Charter Act has
virtually expired. It only exists on sufferance,
and at the termination of twelvemonths' notice
the connection between the " Old Lady" and the
State may be finally severed. This notice
should be given as speedily as possible after
the meeting of Parliament. There is no occa-
sion whatsoever for a Select Committee to
inquire and report on matters that have long
since been accurately investigated. A. domestic
currency is required that will be exempted from
inevitable fluctuations incidental to the existing
oode—fluctuations which, according to Mr. Cos-
, DEN, have occasioned to the trade and manufac-
ture of the country " greater evils—pecuniary,
social, and moral—than the direct failures of all
the banks of issue since they were first esta-
blished." We have the admissions of the bul-
liouists themselves that such a currency would
answer every possible requirement of internal
trade. A deposit of stook—or the fact that they
were receivable in payment of taxes—would
insure their willing acceptance at all times. They
would, in fact, be guaranteed not only by all the
accumulated and realised property of the nation,
but by the thews and sinews of its citizens.
They could never be deemed worthless rags, re-
pudiated by butchers and bakers, while they
would satisfy the claims of taxgatherers, whose
visits, like those of angels, are unfortunately by
no means few or far between. As Mr. JAMES
WILSON, now Secretary of the Treasury, and
unquestionably the best authority on mone-
tary concerns connected with the Ministry,
declared "no Letter security could be offered.
No more absolute representative of real capital,
or a command over it could be found in this
country." The issue of notes of small and con-
venient denominations, sly it., 21., and 31. ; it
would be still better if, as in Ireland, fractional sums
such as 1/. 55., 1/. 10s., and 1/. 155., were repre-
sented, to the extent of twenty millions, would
liberate almost an equal amount of sovereigns,
and we should immediately, as Mr. WILSON de-
clares, " add to the effective capital of the
country, to our stock of commodities, or, what is
the same thing, our command over them, to the
extent of 20,000,0001., just as much as if we dug
that amount of gold out of the centre of England!"
Why, then, should we refrain from achieving this
great desideratum, from conferring this inesti-
mable boon on the nation ? Nothing prevents
us from obtaining it but what our esteemed cor-
respondent, that faithful and consistent monetary
reformer, Mr. HAMER STANSFELD, justly describes
as " the marvellous apathy of the commercial
community on the subject of the currency."
" Nothing," as he truly states, " but severe
monetary pressure, approaching to a panic, will
open their eyes to the absurdity and injustice of
our system." Should the active circulation be
much further diminished that panic must ensue.
" The coverlet" is too scanty to cover all the
family, and each will try to obtain more than his
due proportion. There will be a scramble, and
the natural results must follow. The temporary
relaxation of the Threadneedle street screw should
not lead to a cessation of the agitation. Let the
people only make a decisive effort, give " a long
pull, a strong pull, and a pull all together," and
they will insure the permanent welfare and pro-
sperity of the nation, and the independence and
happiness of themselvea and their respective
families.

Is the port made at last ? Are the wretched
sufferers, the creditors of the Royal British
Bank, about to be put out of suspense by
the declaration of a dividend ? We sincerely
hope so. They have been tossed to and fro,
and made the sport of circumstances, in all
conscience, long enough. Their case, in fact, is
one of such hardship that even the judicial bench
waxes wroth in dealing with it, and gives utter-
ance to much virtuous indignation at the state of
the law. It is monstrous—no language can be
too strong to designate it ; it is a blot on the
national escutcheon of which every honest man
should be ashamed, that there should have been
such delay and grounds afforded for the calcula-
tion that the law expenses, from first to last, in
connection with the administration of the effects,
will amount to far on to 100,000/. It cannot be
recorded without a blush.

It was bad enough to find the unseaworthy
vessel, freighted with the earnings of so many
industrious citizens, turn out a wreck, in which,
in many cases, their all was hazarded. To find the
law, which ought to have been available for their
protection, lotting loose upon them lawyers and
officials, like so many Cornish wreckers, to pounce
upon the vessel and appropriate its contents,
which the shareholders must make good, as a
prize is almost enough to disturb a man's ails-