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

TO THE EDITOR OF THE BUN.

Sit,—The Times, in allusion to the letter of Mr.
Muntz, says that it will not discuss the propriety of a
temporary extension of an inconvertible paper currency
until some ono has produced a Bank note expressed in
other terms than "I promise to pay on demand the
sum of five pounds," which will be acceptable to the
people. The Times asserts, in fact, that a Bank of
England note will only pass current as long as it is
believed that it will be converted into gold on demand.
That this assertion is false is, happily, not merely a
matter of opinion : experience has made it a certainty.
In one of those extremely clever and unanswerahle
articles which have appeared in your paper on this sub-
ject, articles which entitle you to the thanks of the mer
chants and manufscturers of England, indeed of the
trading commulity generally, you state that, in 1825,
when there were only a few hundred thousand pounds of
bullion in the coffers of the Bank of England, and when
there were 19,748,000 notes (of course inconvertible)
passing current, Lord Ashhu, ton, a financier of no mean
repute, and one whose experience, I imagine, was quite
equal to that of the writer for the Times, recommended
a further issue of inconvertible notes to the extent of
4,731,000, what was the result ? It must have been ge-
ne-ally known that these 24,479,000 could not be
converted into bole. by the B ink of England on demand,
and yetAcontrary to the assertion of the Times, they were
willingly accepted by the people, the crisis was tided
over, trade resumed its regular course, and gold in
abundance soon filled the coffers of the Rank of Eng-
land.

Since the establishment of free trade the commerce
not only of Great Britain, but of the world, has taken
gigantic proportions. With the increase of commerce
there should, of course, be an increase of the circulating
medium by the aid of which that commerce is carried
on. It is obvious that if 50,000,000 of circulating me-
dium are required for 20,000,000 of people trading to
the extent of 200,000,000, that, the 50,000,000 are not
enough for 30.000,000 of people trading to the extent
of 300,000,000. Either the circulating mediu'n was
too abundant in the former case, or it is too contracted
in the latter—l need not say. that it will not do to de•
pend upon an event so fortuitous and uncertain as the
discovery of gold in Australia and California. These
discoveries were certainly most a propos. Without those
discoveries in the midst of p'enty, we should, with the
exception of a few holders of bullion, be all starving in
the streets—but as it cannot be expected that the dis-
covery of gold should keop pace with the increase of the
trade of the vorid, the tone has arrived for the Govern-
ment of this country to consider it part of its duty to Be-;
that there is al waysa circulating medium in the country
of some sort or another to aarry on the operations of trade.
Whiist the balance of trade in favour of England is
something like 40,000,000, if there is a scarcity of gold
in England, it must be that we have something more
valuable to us in its place ; the scarcity of gold can only
be temporary, and a temporary remedy should be im-
mediately supplied. Let the foreigner buy every wive,
r-ign we have as long al it is profitable for us to sell,
but there is no reason why the circulating medium of
the country should be so much less. A temporary sup-
ply of bank notes should be issued for domestic purposes,
which would enable the merchants and manufacturers to
get their perfectly good bills disc 'noted, and obtain a
circulating medium to answer every purpose, without
paying from 7 to 121 per cent, for it.
The Times persist., in valuing the circulating medium
paper only according to the quantity of ciro,ula ing
medium gold ; but I do not see why the value of the
former should depend so much upon the quantity of the
latter. I consider a metallic circulating medium as a
very clumsy contrivance. It was necessary, in former
periods of the world, when printing was not invented,
and not one person in a million could read or write, and
a bank note or a bill would have been a perfectly in-
comprehensible document, and consequently useless.
Then the circulating medium roust have been something
that the ignoramus could see and weigh ; but in a coun-
try like England, where everybody, even the most
illiterate, is acquainted with the nature of a bank note
or bill, in a country like England where all nations
by glancing at the trade returns can see the
state of weal h and prosperity where the Queen
is loved, and a successor to the throne is
secured—where the institutions of the country are
cherished from the highest to the lowest, and a general
feeling of security prevails, a paper circulating medium
is much more convenient for domestic purposes, and
quite as highly valued as bullion ; and if the Times, after
being reminded ot what took place in 1825, still asserts
that the Bank of England cannot circulate its notes ex-
cept on the understanding that they are convertible
into gold on demand, then, I say, the sooner the Bank
of England ceases to be a corporation carried on for the
profit or loss of private persons, and becomes a Govern-
ment institution, with notes issued on Government secu•
rity, the better. I maintain, sir, that the establishment
of free trade increases trade and population on the con-
tinent as well as in England to such an extent that
causes like the present must be of constant recurrence.
A disposition on the part of continental countries to
realise—that is to say, to convert their property, what-
ever it may be, whether Government securities, or wines
or silks, raw and manufactured, into gold at any sacri-
fice, which disposition to realise is brought about by
some want of security in their Governments, causes a
drain of gold profitable to this country, but extremely
inconvenient and ruinous to merchants and manufac-
turers, who require a proper supply of circulating
medium to meet their bits and pay their operatives.
As the trade and population of the continent in
creases the power of absorbing the bullion
of the world also increases, so that a dread of revolu-
tion some d i
ay will leave us without a sovereign in the
country. Increasing the Bank rate of discount will not
it
keep the gold in the country; will only enable us to make
a better
people on the continent dread revolu-
tion andbargain. If
loss of property; if they cannot realise at one
price they will at another. In 1848, raw silk, which is
as convertible as gold, fell 50 per cant., because the
French people were afraid to keep it in the country.
These remarks, I think, will bear out your opinion,
that it become the duty of the Government to keep an
eye upon the circulating medium of the country ; and if
the gold is abstracted below a certain point, to supply its
place with a substitute without delay.—Yours

o: w." s.

MI?. MORRIS 1/WORE'S ARREST AT

BERLIN.

TO THE EDITOR OF THE
Sin,—Last night I received a !otter from Mr. Morris
Moore, dated Berlin, Noy. 26, containing further parti-
culars connected with his arrest, and important; as point-
ing directly to the secret agent by whom the intended
blow was struck. Mr. Moore says
I heard last
night on good authority that the order' (for his arrest)
emanated from the `Cabinet du Roi, and that I was to
be seized Conte qui coute.'
" Everybody says that there must be some extraordi-
La: -- ;,flor-oce in the background. At ten o'clock on
on Saturday was at the British Em-
bassy. Lord Blomfield F olu!:f-rpel to him the nrtne of
Waagen, as the mover, and remarked that he wai sur-
prised that Waagen should have recourse to such trr.-
pons.' said nothing to suggest this,
car je
n aurois pas os6 profe'xrer de tels soupcons, quoque je lee
avoi4 : —` for I should not have dared to utter such sus-
picions, though I already had them.' "
Mr. Morris Moore's reason for suppressing the name
of his informant is obvious, in Berlin, where a secret
tribunal wields an irresponsible power, and where for
wrong done there is no remedy.
I am, Sir, yours, &c.,
Keptown, Nov. 29. WM. CONINUHAM.

roe Marquis and Marchioness of Salisbury are enter-
taking a sel,2,ct circle at Hatfield House, Herts.
The Earl and Ciarriteas of Mulgrave have arrived at
Newton House, Yorkshire.
The Right Hon. Liird Cranstoun is sojourning at his
seat at Bagnor, near Aulrhartor.
Burlington House is to be pulled down and a new
National Gallery erected upon its site.
About 35,000/. is understood to have been taken from
the Bank on Saturday in bar gold for transmission
the Continent On account of the silver lately purchased
for India and China, the amount of which to be de-
spatched by the next mail is estimated at about 800,0001.
A Paris let er of Nov. 26, in the C, logne Gazette. says
that 17- ed it day at Font .ioeblearr.
"'lii
is • 7P-4,1"r "Y a* kept
trii.t the newspapers • inviteu' to say nothing about it
The Moniteur also will be silent.",

LATEST NEWS.

BERLIN, Nov. 28.

Prussia is about to invite the great Powers to
fix on the measures to be adopted to re-establish
her sovereignty over Neuchatel, reserving to her-
self ulterior proceedings. She wishes for a con-
gress. The Austrian garrison at Galatz has been
reinforced.

NAPLES, Nov. 29.

The King has returned here, and presided at a
Council of Ministers, relative to administrative
and financial projects.
The Eco publishes the statistics of the Industrial
and Agricultural Bank. Its capital is 2,000,000
ducats, in 20,000 shares. It is especially to be de-
voted to the promotion of agriculture.

It is rumoured in Paris that the friends of M.
Thiers intend putting him forward as a candidate
at the next election for the Seine Inferieure ;
M.M. Duchatel (brother of the Minister of Louis
Philippe and Dufaure (Minister of the Interior
under the Republic) are spoken of for the Cha-
rente Inferieure ; and, by an alleged combination
of a section of the Red and Legitimist parties, M.
Olivier (Red Republica) and M. Berryer for the
Bouches-du-Rhone.

OPENING OF THE PRUSSIAN
CHAMBERS.
(From the Second Edition of the Times.)
BERLIN, SATURDAY.

This morning, at a quarter to 12 o'clock, the
King opened the session of the two Houses of the
Prussian Diet by a speech from the Throne in the
White Saloon of the Palace. This ceremony, which
took place in the usual manner, and which I have
on various occasions already described, was prc ceded
by Divine service, celebrated at the Cathedral for
the attendance of the members of the Evangelical or
Protestant Church, and at the Hedwigskirche for
those attached to the Romish Church. All the Mi-
nisters, without any exception, belong to the Pro-
testant confession. The various members of the
two Houses had already assembled in considerable
numbers when the Ministers appeared in full official
costume, and took up their places to the left of
the throne. After the lapse of some time, and the
period fixed for the opening speech having passed
fully a quarter of an hour, the King appeared from
the side of the Picture Gallery, preceded by the
various officers of the Court, and followed by all
the Princes of the Royal family now in Berlin. He
was received with one of those sounds that occupy
the same place in public business as cheering in
England, and consists of " Es lebe der Konig," ut-
terred in a hurried indistinct piping tone, which
becomes shrill with the concluding word hoch,
and while he took his place on the throne the
Royal Princes ranged themselves at his right hand
in order of precedence. The King then seated him-
self, and having received the speech from the
Minister President read as follows :

" Illustrious, Noble, and dear Sirs of both

Houses of the Diet,—
" It is matter of great gratification to me to be
able at this re-assembling of the two Houses of the
Diet to pronounce the state of the country to be
highly satisfactory. By the bounty of Divine Pro-
vidence all the provinces of the Monarchy have
been blessed with an ample harvest, and an allevi-
ation of the privations that have been caused by
continued scarcity for several years past may be
hoped and looked forward to with confidence.
"In every branch of productive industry, in
agriculture, in mining, in manufactures, and in
commerce rapid progress makes itself clearly visible.
The spirit of enterprise with us has not, it is true,
entirely avoided these extravagances which, as
the experience of other countries shows, always
and of necessity lead to deplorable reaction. In
spite of this, however, the present state of indus-
trial activity with us must be looked on as the result
of wholesome development. The attention and
endeavours of my Government have been directed
to assist and strengthen this most gratifying pro-
sperity by the further development of the public
means of communication and traffic. In the last
few months very important lines of railroad, both
in the east and west of the kingdom, have been
opened for traffic, and the network of railways
spread over the country has thus obtained a most
desirable extension. My Government has con-
cluded several treaties with foreign States, which
will contribute to the promotion of mutual trade
and commerce.
" The various authorities throughout the country
have had their attention specially engrossed by
the carrying out of the laws Ilaatenldy
rstairnacltioeennaed
for the government of the civic .
munes in Westphalia and the Rhenish
for the constitution of the rural communes
Provinces,
and
th e
ood grounds for looking
there are g
kingdom, and
local governments in the eastern provinces of my
An active goodwill is
a satisfactory development of cow
mfourrnvaairdlifteoon
• itself to improve or to found useful
manifestingthese bases.
institutions in the communes, and this tendency is
meeting with ample support in the constantly
extending efficiency of the Estates of Circles. The
Provincial and Communal Diets that have sat
during the last few months have likewise promoted
the interests they advocate in most gratifying har-
mony with the Estates. In the province of juris-
prudence there will be certain drafts of bills sub-
mitted to you for the determination of various
provincial laws ; and further, in conformity with
the former promise of my Government, a bill also
for the amendment, which has been recognised as
so urgently necessary, of the law affecting divorce,
as at present contained in the General Code
(Allgenteines Landrecht).

" The budget for the next year will produce in
you the conviction that the productiveness of the
resources of the country is on the increase. At the
same time there are various important and urgent
claims on them that have hitherto been put off
and cannot any longer be left unattended to. An
increase in the public income of the country is
therefore indispensable. I commend to your careful
examination the financial bills which my Govern-
ment will bring before you to this end. A state-
ment will be submitted to you by my Government
with reference to the manner in which the mili-
tary authorities have availed themselves of the
extraordinary credit voted them, together with a
proposal for the application of the balance still re-
maining of the loan of 30,000,000 thalers. A portion
of it is destined to cover the excess of expenditure
over the estimates, which has been caused by the
return to the triennial period of military her v ice ,
as required by the law of Sept. 3, 1814, and which
iras been called for by urgent considerations.
tc Gentlemen,—At the close of your last session
the restoration of peace to Europe gave mo
gratitule to the Almighty.
occasion to invoke y eur
I hope and trust that the ble,:sings of peace
will still continue to be preserved to our quarter
of the globe, and specially to our country. As
a party to the European treaties, I shall hold fast
by the fulfilment on all sides of the obligations so-
lemnly entered into therein.
" I have been most painfully affected by the re-
cent events in my Principality of Neuchatel, where
the antagonism that has existed over since 1848
between my undoubted right and the actual move-
ment of public affairs, has brought loyal men into
the power of their adversaries. The moderation with
which, in the interest of the general peace, I have
treated the existing state of things in this Principality
for years past, has been duly appreciated and re-
cognised by the Powers of Europe. It is my wish
even after this last deplorable conflict, and now
that my indisputable right has been recently
corroborated by the unanimous resdlution of
the German VQ4leral Diet, to bring a set-
tlement in harmony with the dignity of Dv Crown

by means of negotiations with the European
Powers; at the same time I must not and will net
allow my long-enduring patience to be turned into
a weapon against my rights. My people may
rest convinced that I shall naake the serious and
thorough consideration of my own duties and of
the state of things in Europe the guide and crite-
rion of my further steps in this matter, and I too
entertain the confident trust that, whenever cir-
cumstances may call for it, my people will step for-
ward to vindicate the honour of my crown with the
game energy, loyalty, and devotion they have ever
shown;

" Gentlemen,—l hope and trust that your
labours will conduce to the welfare of the country,
and I herewith bid you welco•rne to their com-
mencement."