The Sun.
London, England, 1856-10-11 00:00:00

the consequences, of the decline in the funds. Those
who do not wish well to France under the Empire,
may tax their ingenuity to make out an unfavourable
case e butit any impartial lboker on, of ordinary powers
of comprehension, will examine the depths of the sub-
ject, he will see that the present state of the Bourse has
in it no element of either permanent embarrassment or
political anxiety.
It is simply a question of time. The cause and
extent of the mischief are definite and easily trace-
able. In " a country situated as France has been
for the last five years, it is impossible that periodical
panics should not occur. They happen under our
)wn old-fashioned system, and in spite of our jug-trot
ways and the unimpeachable stability of our constitution.
Much more must they be looked for in a country whtue
unexampled prosperity dates but from three years back,
which has just come through a war of immense cost, and
has embarked in enormous public works not only in its
own but in other countries. If the present pressure be
more felt in France than the like of it would be in Eng-
land, it is entirely owing to the difference in the basis of
public credit. Here nearly all the great works—whether
railways, harbour; canals, banks, streets, squares, and
the like—are carried on by private enterprise. Govern-
ment interferes only far enough to legalise their contracts
and prevent their running wild or eating one another up.
It guarantees nothing. It charges no contingent loss
upon the public Exchequer. It carefully abstains from
mixing itself up with the pecuniary responsibilities of
joint-stock undertakinge. It thus preserves for its seen
rities a safe minimum value, however commercial affairs
may go amiss. Under the nglish system a bank breaks,
a railway becomes insolvent, a bubble bursts, and two
or tbree, or two or three dozen, great houses are smashed
and some excellent families ruined, but that is all. Bad
enough, truly, but private after all, and not in the least
affecting our national credit. The panic is scarcely felt
before it is gone, and all the great transactions of the
kia gdbm continue as ifnothing bad happened ; there ensues
noadditionaltaxation, no capitalising ot obligations, no in-
crease of the national burdens. The rate of discount is
raised as a precautionary matter, unreal speculation gets its
hint and stops, the market resumes its buoyancy, and
all goes on as before. How different it would be if the
public Exchequer bad guaranteed dividends upon the
greater undertakings may be easily imagined. The
public would 11l have borne a guarantee of 51. per cent.
to the Great Western when its dividend was at 2/. Nor
would it regard Mr. Lowe with much fill our 131 etVd I e
propose next session to gues antee the shareheld,irs
the South-Ea: tern, the Crystal Palace,or the Unity Bank
But it is otherwise abroad. Governments are snore
or less mixed up with all the great undertakings, and to
guarantee dividends especially on foreign capital is an
impel taut part of their system. In France this has
been done largely; and the result is that the Govern-
ment is to some extent a sufferer by the fluctuations of
the Bourse, without having that power of interfereuce
which alone can control its proceedings within safe
limits. The tendency to undue speculation in France
has long been apparent, and it is not to be supposed that
it could go on without entailing commercial difficulties.
The enormous transactions of the Credit Mobilier may
be very successful as a whole, but they are particularly
likely to affect the money market in a most critical way.
Two peculiar features in it increase this tendency—the
first is the practice of capitalising a large portion of its
profits ; the next is the undertaking of foreign works..
By the fist a large portion of the due returns of capital
never reaches the shareholders except as a dividend upon
a dividend; and by the second an immense exportation of
specie is rendered necessary. This money never returns
as money. It goes out as silver capital, and comes back
as paper interest. It is part of a good investment that
you should be able to reclaim your capital when you
want it. But this is just what you cannot do if you ex-
port your specie to pay the works on Austrian and
Spanish railways. The shares may be transferred from
one owner to another, anti the individuals be no loser,
but the country does not get the money back. This is
the rub. If a country can stand a drain of 5,000,00/.
of its circulating medium without difficulty, that is an-
other thing, but few countries can ; and we believe that
it will soon be recognised that the extension of the ope-
rations of the Credit Mobilier must be so regulated as
to unite in better proportions than it now does the two
tier), party
great items of credit and capital. To undue specula-
legitimate and partly fictitious, the present
panic must mainly be attributed, but it is capable at
once both of stoppage and remedy. Unreinunerative
public works at borne may also have added somewhat to
tbo wrong side. But in Paris at least the public works
will be eventually remunerative, although at present
many ne iv houses are yet untenanted. It is but a ques-
tion of
time. W
patience. Patience and confidence will at once weather
estorm and sts
rengthen the whaanntdeadtoGwovisernsipnlty.
t
en really
the people willn dissipatmeaythbee
gambling transactions the efU6t of
The soundness of the Government and,the elasticity of
Y interests of lirench finance.__
o unsndbup
but
aoarkteieT;%t
toe
shame. Upon mere
nt hoe
ill present
teos etnhte
permanentciifieul t panicser

MIDDLESEX SESSIONS, Oct. 10.—The Court sat to-
day at Clerkenwell, and proceeded with the applications
for licences for music and for music and dancing. Mr.
Archibald Hinton applied fora licence for music and
dancing for the Highbury Barn Tavern, Islington. Mr.
Hudd:eston and Mr. Sleigh appearedfor the applicant;
Mr. Ribton appeared in support of a petition against
the application, and addressed the Court against it. Mr.
Huddleston made! a brief, bnt most effective reply, and
the chairman having put the question, two-thirds of the
magistrates present voted in favour of the licence bring
grar&ed. The announcement • that the licence cynr
granted elicited a burst of applause. .