The Sun.
London, England, 1856-10-08 00:00:00

LONDON, WEDNESDAY, OCTOBER 8, 1856,

There is a monetary convalsion impending—
another commercial crisis "looming in the fu-
ture," that threatens to prove no less disastrous
than that of mr.

The panic has already commenced ; and the
practice of hoarding, the inevitable incident of a
metallic enrrency, must materially aggravate the
evil. Notwithstanding the enormous importation
of bullion, the Bank of England is unable to hold
its own, and the weekly returns afford painful but
incontrovertible evidence of the rapidity of tho
drain. These returns show but a portion of the
mischief. Not only is the amount in the Bank
cellars reduced, but that circulating in the hands
of the public, which, as in 1847, is abridged
to a still greater extent. It must be borne in
mind that, under the sagacious system that
prohibits the circulation of small notes, there
ate, according to the best calculations, franc
forty to fifty millions of sovereigns circulating in
England. The amount may he greatly diminished
without distinct evidence thereof, although the
etect will be severely felt by the industrial cla.ses.
besides, it is not gold only that is now aimed at.
[Silver is even more eagerly sought after ; and
there we are likewise without the means of detect-
ing the amount withdrawn. We can only guess
at it from the severe pressure occasioned to these
whose business transactions seldom extend to the
more precious metal. While the silver of France
is so eagerly sought after, it cannot be supposed
that our silver has escaped scatheless from the
acquisitiveness displayed by anxious bullionists.
It in true that English silver has one protection
to which we may ascribe a great portion of its
comparative exemption from the run on the silver
coinage of other nations. The intrinsic is consider-
ably less than the nominal value thereof. Tho
pound troy is coined into sixty-six shillings—
that is to say, the coined ounce of silver is worth
ss. 6d., while the uncoined ounce will fetch little
more than ss. There is thus a royalty of
than sd. per ounce, or some 7 or 8 per cent.,
while the royalty on gold is but a small fraction.
The want of full intrinsic value--the matter so
loudly insisted on by the bullionists of the MER-
CATOR school—is the only thing that saves the
silver currency, and prevents us from realising the
full extent of the inconvenience experienced in
France. This will show the vast importance of
paper currency, only valuable for domestic pur-
poses. That would not be in any way disturbed or
interfered
with whatever may occur in other king-
demo. There could then be no derangement or
paralysis of the national industry from the mere
want of the measure and representative of value.
Production would not be checked at the very
moment when it was most required to maintain
the revenue, and amply provide for every dernan,
on the resources of the country.

Under the existing monetary code, which com•
pole us to
Provide specio at a fixed price for all
comers, we are the common objcet for all conti-
nental powers to
possible. Our 2onci
Prey on to the utmost extent
- friends and allici of France
make the heaviest de—ands. Their agents fore-
stal US on every' arrival of
gold or silver bullion.
4-
The Bank of Prance is ct
'I4IIY paying more for
gdhl than it receives, but the acute mind that
directs and controls its 0 •
Perati ous is well aware
that 50,0001., or oven double
sacrificed in averting the
be judiciously the amount, may
are pressing on its resources. The b evils that
urden, there-
fore, is coolly transferred to Ermii
c, a shoulders
and the system will be continued until
we adopt
come adequate means of protection to avert the