The Sun.
London, England, 1856-12-01 00:00:00

._ ..._ .. . S
1 PILE RATE OP NEW PAPER DISCOUNT. •
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'iiia3 11... $

The Bulk 'statement ;of jFriday :II
to increase the impression that a retl
rates of discount which prevailed befogs
of November might have been adopted o.
day. The only arguments on tilmiepopypeonisi',.
have been that, although a great
ro
resulted from the Australian arrivals and other cir-
.cumStances, it will be better to wait to ascertain its
permanence, that an impatience of high rates of
discount is a characteristic of all commercial and
speculative people which should be resisted, and
that, as the advance to 7 per cent, took place only
a little more than a fortnight back, delay would be
justifiable even on the simple ground of the desir-
ableness of avoiding frequent alterations. The sole
consideration.; to guide the Bank, however, should
be the actual state of the supply and demand, and
'the maintenance of a uniform mode of carrying into
operation any changes that may be deemed neces-
sary. Taking these tests the reasons for a reduction
were complete. With regard to the question of
supply and demand it is known that for several
days preceding the last Court the applications at
teat Bank were c..mparaiively unimportant, and
that if, instead of having a fixed rate, it had been
their custom, like other bankers, to adapt themselves
to the market from day to day lower terms would
have been adopted as a matter of course.- - It is true
,this state is not likely to last, but the main reason
simply consists in the fact that t he revenue payments
from now toJanuary will throw saninch of the circu-
lation into the hauls of the Batik that the supply
outside must, under any ciscurnstances. be inade-
quate to the public wants, and the Bank can there-
fore maintain any rate they please. This, however,- is far far from being one of the contingencies content,-
plated in making them the depositories of the
public money, and it has consequently sometimes
been tbi.ir practice towards the termination of each
quarter specially to mitigate any .existing pressure
by accepting lower terms for advances during those
periods. As respects the second point,' the main-
tenance of a uniform mode of carrying into opera-
tion any changes that may be deemed necessary,
their
.present course is not iu haimouy with pre-
cedent. On the 22d -olMay last, when a reduction
to G-per cent, was resolved upon, both the amount
of bullion and the reserve of notes were less than
on the present occasion, yet at that time speculation
on the Paris Bourse was rampant, a similar dispo-
sition prevailed on this side the result of the
harvest was uncertain, the India and China drain,
instead of being partially satisfied, was just about
to assume its worst proportions, and the Austrian
preparations to collect gold and silver for a resump-
tion of specie payments were in active progreSs.
If under such circumstances a decline to 6 per cent.
was resorted to without apprehension, it is difficult
to see why the public should be charged with an
impatience of restraint for desiring a similar step
now, after they have been subjected to a pressure
greater than any experienced since the crisis of 1847.
It is always unpleasant in financial matters to have
to remonstrate against what appears a policy of
caution, but the present question derives its im-
portance from the fact of there being room to ap-
prehend that the restriction which is approved for
its prudence may in reality prove a stimulus to
imprudence. Exactly in proportion to the pressure
put upon the COMM unity is the subsequent rebounds
and if when there is reason to anticipate an ap-
prOchiug turn of the tide the rate of interest is kept
at such a point as to check or limit the usual orders
for foreign produce, and to cause money to be
drawn house from every available source, that turn
becomes sudden, instead of gradual, an inflation of
prices follows, and the orders which were kept back
when they would have been of a moderate descrip-
tion, are sent out in reckless quantities. In the
heigut of such a renewal of ardour there would, of
course, be a universal admission on the pars of the
speculators of the wisdom of the course by which
it-had been brought about, but those who wish to
see commerce pursue its legitimate channels and
our money market proof against the tactics of the
Credit Mobilier and their Russian friends will
watch its possibility with regret. No one cue pre-
tend to say positively that the heaviest difficulties
of the late crisis have been surmounted, but there
is enough to warrant a strong impression that such
is the case, and provided we still kept our rate of
discount' as high as the highest rate known any-
where on the Continent, there could be no danger
in giving the country the benefit of it. In ease of
necessity the step could be at any time revoked.
The contrary argument, on the ground of the evil
of frequent changes, is unsound. The desirable
point is to keep the rate of discount as near its
average as possible, and if this could be better
effected by a change every week such changes
would be advantageous. No ordinary banker, if
left to his own course, would bind himself to spe-
cific rates beyond a day, and the contrary practice
of the Bank has long been considered objectionable.
Even as a matter of precedent, moreover, sudden
changes in times like these would be consistent. In
the railway crisis, after the rate was fixed at 7
per cent., it was reduced within ten days to 6 per
cent. Assuming there were any force in the
doctrine that a reduction once made could not be
rescinded at any moment without hesitation, there
would be no reason in the prevailing uncertainty
to complain of the policy now being pursued ;
but it is this very facility that seems to rend& r it
unnecessary. At the same time, it is to be admit-
ted that the probable course of events during the
coming month is sufficiently obscure to allow of
many differences of opinion. The Bank Court be-
ing composed of merchants whose personal wishes
must be for a moderate rate of interest, there can
at least be no question of the sincerity of their con-
victions in taking an opposite course. The sole de-
sire on each side is to discover in which direction
the prudent path lies, and those who contend that
a reduction to 6 or 61 per cent. should have been
made on Thursday last believe that course to be the
one which is alone consistent with true caution.—
Times City Article.

THE COMMAND OF THE BRITISH FORCES IN
PERSIA.-OFFICIAL BLUNDERS.

We feel assured that the announcement that Sir James
Outrata as been appointed by the Indian, authorities at
home to command the British forces despatched to the
Persian Gulf, will be received with unmixed satisfaction
front one end of India to the other. Sir James left
Southampton on the 20th inst., in improved health. It
is to be hoped that the outward voyage wilt administer
further to his recovery, and that he will join the army
with sufficient bodily vigour to give full effect to the
suggestions of a mind always active and energetic, and
fertile of resource.
Our military readers will not require to be told that to
give effect to this aPPointmeut it %Ai necessary to confer
On Major-General Outram the brevet rank of Lieut.-
rveiu
General. The brevet has appeared in the Gazette, bct we
observe that by
aclerica.l error, which
t rak e haves confined nnfion deodb to t
the Ea'e Id
, w u
willbespeerliiely rectified,
Indies. Now, Persia is not geographically a
part of the East Ind es, and it has been ruled tat it is
not officially so. It, therefore, the ore-ent Horse Guards'
notffica?ion were to remain in I.rce, Outran w,,uld be
liable to he superFeried en stir exnAiti •ri tonch:ng pPr-
siski, gr.und ; or, practicaliA (assuming tin; exP euiiion to
itave bef ,re his arrival) would never he competent
to take command of the fo,•ce.

Some regret has been expressed that Sir H. RI slin-
son has not also been despal &led to Persia, to conduct
the negotiations which are likely to arise out of this armed
demonstration ; and a,suredly it is tine that the anoma-
mug position which Mr. Murray occupies should now
altogether cease. But we are tot sure that Sir H. R3W"
linsoe's extensive local knowledge and experience are
not as useful in this country as they would be on the
spot. For although the East India Company know
nothing about the war with Persia, beyond what they
learn from public newspapers, it may be fairly as-
sumed that her t ajestv's Nlinisters. in whose bandai
the direcion of the war, know where the best informationA
is to be found, and the best advice to be obtained.
blunder
blunder in D .wning-street may be as fatal a.'..
at Shire or Teheran. Moreover, there is stniltlaaauligniiiindganetf
time fel'. Ra wlineon's employment in thedise
to find our
complications with which we are not unlikely
We shall as.
selves embarrassed at the end of the
wrrs.t-rate diploma.
depths st the
sureuly then require the services
tist, thoroughly acquainted withoftbae
Persian Court, and capable of fathomingce
aild America all
Persian guile. With Russia,. cbatrhaectedre
'in Iran, we shall
seeking to strengthen their in
have enough to do to, recover theigroundlFennee
nt and neglect.
lost by years of mismanagement
dethat Col. John Jacob, C B.
We may mention,
it is very generally ramonrer
in
in connection with this subject, that
_Sancinde, will be appointed
command
appointment regard.
eof opinion can exist ; but wile.
ing which no differentcoe
ns
:CIO second inn go
cams
the rank and position of other
ther, with reference
d
we are not yet able to declare.
officers, it can be nada
Ind
of the
Cr.'s Overland Mail.
—Smith, Elder, an

LEOPOLD REDPATIL—The interest which first excited
suspicion against Redpath is somtwhat remarkable. Mr.
Denison, the chairman, was standing outside the statinn
conversing with Lord ---. Redpath approached and
lifted his hat to Mr. D., when Lord took him cor-
diallyyou? After Redpath had g.)ne, Mr.
`° Why, my dear fel-
hboyarthaerehand, and exclaimed,
DloewnPison asked his lordship what he knew of their clerk
Why," responded the latter, " he is the jolliest fellow
in life—gives the most sumptuous dinners and capital
bads that I know of.'' That fatal and friendly recogni-
tion by on© so superior to him led to an investigation of
his accounts, and to his pr-sent lodgment in the House
of Detention.—Sunday paper.
With reference to the statement made in the Court of
Bankruptcy on Thursday last, that the appeal from the
Vice-Chincellor's decision in the matter of the Royal
British Pack would be withdrawn, in consequence of
arrangements then pending, with a view of affording
more efficient protection to the shareholders, it is now
stated that the appeal must proceed, the arrangements
contemplated having been found impracticable.