The Sun.
London, England, 1856-10-17 00:00:00

IONDOT.;, FRIDAY, OCTOBER 17, 1856.

The Bank of England is steadily following up
the restrictive course on which it has entered. It
is true that for the time being the Directors are
satisfied with the trifling minimum rate of 7 per
cent. on bills having more than 60 days to run,
which they keep entirely to themselves, without
having to account for or hand over any portion of
the extra profits to the Government, as in 1847,
when the charge was, for the first time since the
establishment of the Corporation, advanced to 8
per cent.—a rate utterly inconsistent with the
interests of the nation, wh.cla are based on
a sound and healthy system of credit, and
a facility for obtaining pecuniary advances
by houses of unquestionable character and
solvency. But what is wanting in price is
more than atoned for by increased stringency in
the nature of the securities that will be accepted.
Consols are now eschewed by the " Old Lady.''
The possessor of tens of thousands in the 3 per
Cents. cannot obtain a temporary advance from
the quasi National Bank ! The natural conse-
quence of this untoward state of affairs must
necessarily be a great depreciation in the quota-
tions of all public and private securities, in which
forced sales must take place, in consequence of
the withdrawal of the usual accommodation inva-
riably accorded, with the exception of a short
period during the commercial crisis of 1847, im-
mediately preceding the celebrated letter of the
25th October in that year. Nothing will
now be touched with the exception of Exchequer
Bills. They are still regarded as being " good
as gold." And why ? Simply because Exchequer
Bills possess the quality which we have suggested
on behalf of the National Notes of small denomi-
nations—viz., that they are at all times receivable
in payment of taxes. The large sums for
which they are issued unquestionably create a
certain amount of inconvenience, which would not
exist in the National Notes for 1/. 2/and , •, 31.,
which we have so frequently and so urgently re-
commended. But the present action of the Bank
proves, beyond the possibility of doubt or diffi-
culty, that, under certain circumstances, they are a
more desirable security even than Consols, and
that, therefore, there could not be any possibility
of depreciation, or of their being repudiated by
the butcher, baker, or any of the tradesmen with :
whom the pater familias is brought indailycon-
tact, as merely " worthless rags," possessing
no 11
"intrinsic value."

That mania for "intrinsic value" is the cause of
the greater portion, if not all, the mischief. It
leads to hoarding, which is as injurious to the
community at large as the destruction for the
time being of the amount which is thus withdrawn
from circulation. " The life-blood of industry
becomes stagnant" in the national veins, and leads
to a monetary and commercial paralysis highly
injurious to the welfare and prosperity of the
people. Even the national establishments set the
baleful example. The Bank of England is eoni-

pelled to hoard under the terms of its charter. I
is obliged to keep 50E1213 eight or ten millions of
bullion stored in its vaults, of no greater utility
than an equal weight of paving stones, which, if
properly sealed up, would answer the purpose just
as well. All persons who have the power to do
so, follow the example thus set. Men who see an
impending crisis looming in the future take ad-
vantage of every available opportunity to provide
not merely for their probable, but also for their
possible exigencies. It is true that with money
at 7 or 8 per cent. they " pay very dearly for
their whistles," but still they regard it as an
assurance against possible ruin ; and are satis-
fied to make heavy sacrifices to provide against
possible disastrous consequences.
On the Continent we see the Russian and Aus-
trian Governments accumulating large stores of
the precious metals, by the formation of railway,
steam-packet, and other companies, the shares of
which must be paid for in French and English gold
or silver, while the expenses are provided for by in-
convertible paper. The French Government, which
has not as yet suspended cash payments, is making
gigantic efforts to purchase specie at a heavy loss.
A system that cannot long be maintained, and which
will only be continued so long as the Bank of Eng-
land remains a species of " milch cow" from
which the ROTHSCHILDS can draw the means of
supplying the 5,600,000/. of bullion which they
have contracted for with the Bank, or, rather,
with the Government of France, and on which
the myriads of minor speculators can pull until it
is at last run dry, as it must speedily be under
such untoward circumstances.
But on the Continent there are other causes to
lead to private hoarding besides those that ope-
rate on the merchants, manufacturers, and traders
of Great Britain. It is not merely commercial
demands that Frenchmen have to look to. There is
alwaits the possibility of a political convulsion, pos-
sibly a'revolution, under which all classes of secu-
rities may be greatly depreciated, and nothing but
the precious metals pass current. Every private
person desires to have a stock in hand sufficient to
provide for an emergency, with which he may take
refuge even in a foreign land. In his official
report, recently published, M. MAGNE calculates
that since 1850 the importation of specie has
exceeded the exportation thereof by no less than
800,000,000 francs (32,000,0001. sterling),
while the balance of trade in favour of
France within the same period reached the
enormous amount of 1,360,000,000 franks,
(or 54,100,000/. sterling). Under such circum-
stances it is obvious that the people must be
" hoarding." Nothing else can explain the phe-
nomena of a dearth of specie, and the further
progress of the evil can only be averted by the
speedy suspension of cash payments.
This course has been eagerly anticipated for
several days past. A rumour was yesterday cur-
rent on the Stock Exchange that the change had
actually taken place, and the immediate result
was an increased buoyancy and a consider-
able improvement in the quotations of
our own funds. An advance of one-half
per cent. took place at the moment. If such was
the effect of a very doubtful report, what would
be the actual certainty of a matter that would at
once stop the artificial drain on our own re-
sources be ? We may easily s2e its vast importance
from the movement amongst the Bulls and Bean
of Capel Court, consequent oa the rumour.
But, according to the old proverb, "If the
mountain won't go to MAIIOILET, NIA.uomET must
go to the mountain." If the Bank of France
won't take the necessary steps for its own protection,
the English Government must prevent the Bank
of England from being involved in one common
ruin with it. For that purpose ladrlitinent should
be convened for the earlie§t posliblo day, and au-
thority obtained to issue Exchequer bills for small
amounts which should be a legal tender,
and which might be paid by the Bank of
England in liquidation of their notes, in
place of gold and silver. It would be still
better if Minister:, without waicirrg for Parlia-
mentary sanction, should take upon themselves
the responsibility as in 1847, and trust to an
indemnity, which would be granted without hesi-
ation. By adopting such a course they would
prove themselves worthy of the exalted position
n which they are placed, and entitle themselves
to the unceasing thanks and gratitude of the
People.

" The cat would catch fish, but is afraid •f
wetting her feet." • So runs the proverb—at laast
in effect. France and England would do some-
thing at Naples, but, to all appearance, are afraid

of something else if they send their fleets into the
Neapolitan Bay. Admiral DUNDAS has got his
instructions, and has sailed with his squadron
from Ajaccio. The French Admiral, in all pro-
bability, has got his instructions also, an will
shortly sail from Toulon. These instructions—

for we presume both are alike—are, it is said, to

sail towards, but not to, Naples. This may be
called explicit ; but we really can't quite compre

hend it. Are the two fleets to go so far, and then
practise the goose-step ; or are they condemned,
like the Flying Dutchman, to sail on without ever
making port ? Not to perplex the reader, we
will assume the meaning to be, the Admirals will
cruise off but not enter the Bay of Naples ; will
give the population an opportunity of assuring
themselves the fleet are at hand, but not of in-
dulging in a close inspection.
There may be sound policy in this procedure.
That will depend on the object contemplated.
But we confess, after the Russian Circular, we
should have liked the fleets, when they did
appear, to enter on the scene in a manner more
worthy of the great Powers they represent.
There may be no febrile apprehension of con-
sequences, but it will look as if there were ; and
if the Allies mean to frighten BOMBA, merely into
submission, to seem afraid will be to insure pre-
cisely the opposite effect. This, however, is no
great concern of ours ; the worst effect a failure
can have is to occasion delay. The Neapolitans,
however, are to be taken into account during, no
less than after, the experiment. What will they
do ? With an army of sixty or more thousand
men, a giant fortress whose guns sweep the streets,
and a bloodthirsty horde of lazzaroni whetting
their knives for slaughter, are they likely to rise?
That will depend on 'their courage, of which we
know little, and on the fidelity of the troops, of
which we know less. Calculation is baffled.

Suppose the Neapolitans see good reason for
not rising unless backed by the thunders of th 3
fleets, what then ? Will England and France be
content to be the laughing-stocks, not merely of
BOMBA, but of Europe and America ? The
tapering spars of their fleets described as sign-
posts, and the hulks buoys for the naval way-
farer ? We should imagine not. We shall see,
if we are not mistaken, the fleets:turned to some
purpose. It may be urged the presence of the
fleets is intended for the protection of English
and French subjects, and that only. The mis-
chief is nobody believes it, and incredulity is in-
creased by the fact of more ships being despatched
than are necessary for the purpose.

Of BOMBA'S submission we have but little
hope. The worn-out BOURBON is cursed with