The Sun.
London, England, 1833-07-06 00:00:00

LONDON,
SATURDAY EVENING, JULY 6, 1883.

The quarter's revenue ended yesterday, pre-
sents a trifling decrease of 5,2511., as compared
with the corresponding quarter of last year. The
principal decrease has been in the Excise,
amounting to 183,7401. on the quarter, and
218,8801. on the year. The Customs, however,
counterbalance this, exhibiting an increase of
147,7331. on the quarter, and 818,776 on the
year. The total increase on the year amounts
to 569,703/., but we may hope for a very great
increase in the revenue when a more equitable
system of taxation is introduced. The present
system is bad in principle and worse in practice.

The overreaching of the CHANCELLOR of
the EXCHEQUER by the Bank Directors, is the
topic upon which our contemporaries mainly
dwell. Most assuredly a very hard bargain has
been made for the State. But this is the least
of the evil. The mischief consists in the power
of expanding and contracting the currency at
pleasure, which is again to be conferred upon
the Bank, although it is notorious that this
power has been abused in time past, and it is
manifest that it will he abused in time to come.

The power of expansion necessarily leads to
over-issue, and over-issue to depreciation of the
currency ; but the manner in which over-issue
operates to the prejudice of home industry, and
the extent of the loss thereby brought upon the
country, do not appear to be understood. We
shall endeavour to make them intelligible to our
readers.

Over-issue raises currency prices, that is, prices
estimated in British currency. In proportion
as home prices are thus raised, the home con-
sumption is diminished ; but over-issue, and its
consequent effect upon currency prices, has no
effect upon foreign prices, which are estimated
in bullion, and not in British currency. Hence
articles of home industry, the consumption of
which at home is diminished by the rise of cur-
rency prices, are sent abroad, and our foreign
trade prospers while our home trade languishes.
But the foreign trade of this country, large and
important as it is, is as a drop in the ocean com-
pared to its home trade.
For the home articles thus exported through
over-issue, an equivalent is obtained from abroad
in articles of foreign growth or industry, or in
gold or silver. If the value be in articles of foreign
growth or industry, and articles of a similar
description are raised or produced at home, the
home industry thus suffers further in proportion
as articles of home produce or industry are dis-
placed by such foreign articles. If, on the other
hand, the return be in gold, such gold necessarily
goes to the Bank, as the main receptacle for gold
in this country, by reason of its monopoly, and
the Bank issues notes in proportion to the gold
so coining in upon it. Thus, in process
of time the currency becomes so overcharged,
that is, Bank notes become so depreciated, that
gold becomes dearer abroad than it is at home,
and sovereigns, as currency, are brought down
in their exchangeable value as coin, and go
abroad to escape from such depreciation. Gold
is thus demanded from the Bank, and continues
to be sent abroad until the exchangeable value
of Bank notes is raised to a par with the
exchangeable value of gold, when the demand
for gold upon the Bank ceases.
It is impossible to state the precise amount
of the loss which the country thus suffers from
this operation of the Bank monopoly. But it
may be estimated in this way, namely, the exports
of British produce and manufacture last year
amounted to 65,026,702/. 1 ls. in official value,
that is, the rate or price at which articles ex-
ported was fixed in 1696, when the account of
exports was first established ; and in real
value, that is, present prices, such exports
amounted last year to 36,444,5241. 18s. 7d.
But the total amount of the labour and industry
of Great Britain is perhaps not less than five or
six hundred millions per annum in exchangeable
value.

Such are the consequences of the power o