The Sun.
London, England, 1856-10-18 00:00:00

For the motion 7
Against it
The board adjourned at a quarter past 5 o'clock.

MONETARY AFFAIRS.

(From the Belfast Mercantile Journal.

• ---
When the late war with Russia commenced the minds
of capitalists became uneasy, owing to the oscillation of
the bullion reserve in the Bank of England, and their
confidence increased or diminished in unison with the
stock of gold held by that establishment. As such a
state of matters must be essentially vicious and unwhole-
some, it is our intention once more to offer a few re-
marks upon the bearing of the question, but we will not
at present enter into a discussion of the entire subject,
our object being to suggest remedies which might be
immediately available at the present critical period.
The question is one of such importance, and enters so
fully into the very vitality of commerce, that its discus.
sion and solution cannot be much longer delayed. Pos-
sessing, as Great Britain does, all the elements of ra-
tional greatness, and that greatest of all, an indus-
trious, thoughtful, and energetic population, there can
be no reason why the least impediment should be im-
posed to her onward prosperity by her monetary laws.
A good money system would greatly facilitate and r.d-
vance the progress of the nation, while the present ab-
surd and anomalous one is constantly retarding and
checking it. In the words of an English provincial paper,
we would say, let no nation think itself great as long as
the great condition of the masses of the people is one of
perfect depression, suffering, and poverty. A nation is
truly great only when the working classes, enjoying the
blessing of free institutions, possess also their just pro-
portion of the necessaries and comforts of life, which are
the produce of their own toil and skill, and that with as
little change or uncertainty of tenure as is compatible
with the vicissitude of all human affair.
Persons of ordinary capacity, and not given to the
consideration of political economy, are astounded at the
present state of affairs, as they very naturally imagined
that the vast exportations of gold from California and
Australia would have materially eased all the money
markets of the world, whereas the very reverse seems,
for so far, to have been the case.
The amount of gold actually thrown upon the markets
of the world, in eight years, from California, is calculated
by the Economist at 80,000,000/. ; and in five years from
Australia, at 45,000,0001., making in all the enormous
amount of one hundred and five millions sterling since
1848.

Of course one of the first effects of this immense in-
crease of gold has been to reduce its value in relation to
silver, and in the United States and France, as well as
in other countries where a double standard of value, as
it is called, of gold and silver existed, silver has had a
tendency to disappear, and its place has been taken by
gold. In the United States the silver dollar disappeared
rapidly, and gold dollar-pieces, were coined to supply
their place, while the small paper circulation was increased
and ultimately gold was adopted as the sole standard, and
the silver coins became mere tokens of a depreciated
value. In France silver has been largely displaced by
gold, but the double standard is still retained.
The amount of gold coined in England and Franc? of
late years is remarkable. Before 1851 we coined gold to
the amount of one, two, three, or four millions a-year,
the panic of 1847 leading to the unusually large co;na;e
of five millions. But from 1351 to 1855 (five years) the
amount coined at the London Mintlwas 38,264,0001., or
on an average 7,650,8001. annually. In France, in the
four years prior to 1850, the amount of gold coined at
the Paris Mint was at the rate of 767,0001. annually.
Butfrom 1850 to 1855 the amount coined was 64,920,0001.,
or on an average 10,820,0001. annually. The additional
gold coin absorbed inthe circulation of the United States
is estimated at 25 millions sterling. Supposing, then,
these calculations to approach correctness, we have gold
coined, since the Californian and Australian discoveries,
by the London Mint, 38,254,0001.; by the Park Mint,
61,920,0001.; and by the United States, 25,000,000/.,
or togethtr, 128,174,0001.; and making allowance for
coin exported, melted, and recoined, and that still
circulating in the East, where it was sent during the
war, we may conclude that the whole 105 millions of
Californian and Australian gold is nearly accounted for.
Of this sum the Economist is of opinion that about one-
half has been absorbed by the increasing commerce of
the world, and that one-half has replaced a similar
amount of silver in France and the United States. The
next question is, what has become of these 59 millions
and more of silver ! During the years referred to, 21 mil-
lions has been exported to the East from Southampton,
and from the Mediterranean ports a large exportation
has taken place. Holland, Belgium, and Austria have
absorbed a certain amount, while India and China
appear to be insatiable. The reason why we retain
our silver coin in England is simply that its exporta-
tion is not profitable. An ounce of silver here is coined
into five shillings and sixpence, while the ordinary piece
of silver, before the gold discoveries, was about 4s. 11d.
an ounce, and is now about ss. ld. to 53. 2d. an ounce.
Our silver coins are legal tender only up to 405., and are
mere tokens. A similar system was, in 1853, adopted
in America. France, by retaining the older and higher
value of their silver coins, finds herself supplying the
world with silver, and is now doing so at a great loss
and inconvenience.

We learn by-the city articles of the London journals
hat the withdrawal of gold, in one day last week, from
the Bank of England, was so extensive that every pos-
sible care was taken to prevent the amount from trans-
piring, and it seems that, to quiet apprehensionß, and
prevent inquiry, a merely nominal amount was repre-
sented to have been withdrawn ; the actual amount taken
out, however, was no less than 400,0001. The Bank of
France has been buying up bills on London at a great
rate, for the purpose probably of making their returns
look as well as possible at so critical a juncture ; but the
withdrawal of so tremendous a sum from the Bank of
England in one day, in conjunction with those of the
last few days, amounting within the week to between
900,000/. and 1,000,0001. sterling, is undoubtedly a cir-
cumstance calculated to produce serious apprehension, as
a further advance in the rate of discount is inevitable,
unless the demand for gold immediately becomes less
important, of which, indeed, we are happy to say, there
are already some indications. The present anomalous
state of the money market has been owing exclusively
to a pressure from abroad. and not from any internal
causes, as the state of trade in the United Kingdom
never was in a sounder position than it has been for
some time, and still is, and our future monetary position
must, therefore, mainly depend upon the aspect of affairs
in France, from whence the accounts are not by any
means encouraging.
sound and prosperous ai our own trade has been,
however, it would be sheer folly to suppose that it could
long continue so, under such a monetary pressure as
exists at the present moment, and we must, therefore,
dissent from the writer in the city article of the Times,
who says "there is every sign that, whatever may be
the rate to which the Bank must ascend, in order to keep
near the range of the Continental biddings fur money,
it will produce no appreciable effect in cheekirg the
general industry or the profits of the country."
Messrs. Litt'eda!e apd Co., of Liverpool, whose valuable
monthly circular will be found in another column, take
a sounder commercial view of the matter, when they
say—" is there not something wrcug in our monetary
system which gives discouragement. to importers at the
very moment when our supplies of raw produce of every
kind are likely to be deficient, and taxes our merchants
with a rate of interest at which operations cannot be
ca'ried on with a profit, simply because the monetary
affair: on the continent are deranged."
Since July, upwards of five millions sterling in specie
have been ta,:en from the coffers of the Bank of France,
and only abut six millions and a half sterling now re-
main, to meet a demand which is daily augmenting, and
which will continue to augment, unless the Emperor
promptly conies forward with some vigorous measures
calculated to allay public distrust, which is spreading so
rapidly that the people are again commencing to hoard
up their gold—a course calculated to precipitate the
finale to p, tearful extent.
A respected correspondent, whose letter will be foun'l
elsewhere, states, in reference to the remarks in our last

commercial article, article, relative to the pr,priety of our own
Government at once permitting, by an order in council,
the issue of twenty million 11. voter, that such a cmuse
would only stave off the evil day and add to the difficulty,
as there would ultimately be so much more liabilities to

pay off; but, if an equal amount of 5/. notes were gradu-
ally called in, as we stated should be done, if necessary,
we cannot see how his argument can hold good. In net,
so long as the rate of discount is absurdly regulated by
the amount of bullion in the coffers of ono hank, so long
must the commerce of the country be crirpled and dis-
turbed. We areglad to find that our correspondent agree.,
with us o❑ t'iis point. Au izsue of " Goverrroeut notes,"
fur the amount of the national revenue, as we have fre-
quently recommended, and which we observe he also
suggests, say for 70,000,0001. sterling, or for whatever
sum an annual estimate of the revenue amounted to,
such notes to be made a legal tender for all Government
taxes and duties, would save: the nation from periodical
panics, as these notes would not circulate in other
couutries, and would, consequently, be always available
at home, thus letting loose an immense quantity of spe-
cie, which would be profitably employed in the service
of commerce,