The Sun.
London, England, 1856-10-09 00:00:00

THE MONETARY CRISIS.

(Front the Times City Art&le.)
The character of the accounts front Paris has not
been improved by the report of the Finance Minis-
ter, the prohibition of all discussions c a the crisis,
or the police regulation forbidding mone.7-changers
to offer a premium for silver. The opin.'on still is
that there is no danger of a collapse, except as a
consequence of the blind apprehensions of the
People ; but it is believed that the measures adopted
are calculated to increase rather than to allay these
apprehensions. It is said, moreover, that some of
the leading persons connected with the Bank of
Frauc3 have already expressed an opinion as to the
expediency of suspending specie payments, and that
it is mainly in deference to the views of the Em-
peror that it is not more strongly urged. In these
circumstances it is impossible to regard such a con-
tingency as undeserving of consideration, and hence
anxious inquiries are suggested as to what would
be its effects on this side.

A suspension of specie payments, especially when
brought about by an internal panic, does not neces-
sarily involve any great disturbance or disaster.
When people are rushing for gold merely for
hoarding commerce suffers no injury by their not
being able to get it. If there is no serious foreign
drain remaining to be met, and if the rate of
discount is sufficiently high to promote- economy
and check speculation, so as to prevent an adverse
balance arising with other countries, everything,
after the first shock from the announcement had
passed, might go on almost precisely as before-
The note circulation would maintain its par value,
the panic would gradually subside, and a rtaittup-
tion would be found practicable. Bat an appre-
hension may be entertained that it is not in this
way, after the note circulation in France had beta
declared inconvertible, matters would be allowed
to work round to a healthy point. The cry for a
suspension is chiefly that commerce may be relieved
—a phrase familiar to all speculators, whether
in France, England, or America, and which simply
means that an increased issue of currency should be
authorised suoh as would produce a great rise in
prices, and enable them to realise without loss the
depreciated securities with which they find them-
selves burdened. The probability exists, therefore,
that the Bank of France would forthwith receive
directions from the Government to relax its mea-
sures of severity, to make ample advances on stocks
and shares, and also to deal liberally with com-
mercial paper. In this way animation would again
be restored to the Bourse, speculators, such as the
Credit Mobilier, would no longer seek to postpone
or cancel their foreign commitments, and mer-
chants would renew their orders for the importation
of produce. The advantages of the measure would
be universally extolled, and, as the interests of all
financiers of the prominent school require that a
rise in prices should go on for ever, there would
never come a time at which, in the view of these
parties, the circulation should cease to expand.
Supposing them to maintain their ascendancy, a
contraction would be out of the question, and
would be denounced as a malevolent blow against
the prosperity of the nation. Meanwhile the high
prices would be attracting all kinds of goods and
securities to the French market, a heavy and con-
stantly increasing debt would become due to foreign-
ers, and, as foreigners would not accept payment in
French bank notes, but would require gold or its
lequivalent, gold would come into great demand as
an article of merchandise, and would rise to a pre-
mium in proportion to its scarcity. That is to say,
the exportable produce and manufactures of France
being insufficient to pay for the goods imported, and
a balance of debt remaining to be discharged, she
would have to obtain specie for the purpose, and, as
her only means of obtaining it would be by her
promissory paper, an extra price w.-mild be charged
for the gold in proportion to the distrust
with which those promises were regarded. Hence,
with all the abundance of circulation, the country
would never become richer. If a 100 f, note would
not purchase more than 50f. of gold, and the Go-
vernment, with a view to relieve the people, were
immediately to double the existing issues, the dis-
covery would then be made that it *would purchase
only 25f. of gold, or a still smaller sum, in propor-
tion as faith might be destroyed by their increasing
recklessness. The national credit would be entirely
extinguished, and at the same time, as all the
Government employes, the public creditors, pro-
prietors of lands or houses let on lease, and an-
nuitants of every kind, would 13.313 ai- only in tbia
paper, the question of their starvation would
depend simply on the point to which the deprecia-
tion might be limited. Ultimately the mass of
circulation might be such as to preclude all idea of
its honest redemption, and a return to a convertible
currency would be- practicable only by a compro-
mise, iii which the note holders would sacrifice 70,
80, or such other percentage of their nominal
claims as the state of the bullion market might
render necessary.

This is the inevitable end of a forced paper cir-
culation, running the course contemplated for it
by those who believe it to be in the power of a
State to afford at all times a sufficient supply for
the wants of the people. It has been witnessed in
Russia, in America, and a number of other coun-
tries, and there is nothing new to be learnt with
regard to it. It will bo said that there is no pro-
bability it would ever be carried to such a point
by the French Government ; but this reduces the
question merely to a matter of degree. Just :n
proportion as they yield to the clamour for such
an extended issue of paper as shall re-animate the
Bourse will he the difficulty of returning to their
former position. All the contracts in the shape
of loans or otherwise made during the period of
suspension must be on condition that they shall
ultimately be fulfilled in specie, and when the
time for this sacrifice arrives there will be a popular
sense of grievance similar to that manifested in
England in 1819, bitter recollections of which are
cherished iu some minds even to this day. On the
other band, if the suspension of specie payments is
followed by no increase of the paper circulation or
reduction of the rates of discount, there will be
every reason to expect that the prudence thus
enforced will soon bring the balance of trade in
favour of France, so that she will have to receive
specie, instead of its being withdrawn from her. In
that case the note circulation, being not more than
sufficient at existing prices for the legitimate pur-
poses of trade, would be prevented from falling to
a permanent discount, and a gradual and safe re-
sumption might be effected by the Bank in the first
instance voluntarily giving change for their notes
on application, but without holding themselves
bound to do so, and ultimately, when this had fa-
miliarised the people with the idea of convertibility
as ,an ordinary condition, by the removal of the
decree for its suspension.
The considerations thus presented will enable all
persons to estimate the results to be expected in this
country from the measure, according to the manner
in which it may bo carried out. Supposing prudent
counsels to prevail, the only consequence of the
change will be that the artificial purchases of gold
which the Bank of France are now driven to make
in London will cease, and that our discount-market
will return to an easier position according to the
progress towards a general revival of confidence on
the Continent. Assuming, on the contrary, an,
inflation in Paris from increased paper issues,
will be drained thence to this and other countries,
and great buoyancy of trade, coupled with an 11-
creasing abundance of money, must be anticipated
here—results, however, that would appear
ably poor in face of the evils to be sustained from
miser-
the ultimate injury which the credit and, commerce
tainties that would be consequent upon
of France must undergo and the politi.c.a.t uneer-

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d,e)s ago tried by the Court of Assizes
arson. On the night of the Bth
discovered in the house of a farmer named Dussaux, at
hßonnet,isf,tnlybut
wereitwaahsseabsent
a promptlythe
from the manner in which a quantity of small wood was
scattered about that the fire had been wilfully caused.
Seppicion fell on the woman Gamier, who, with her hue.
ban•J, lived next door, and she after a while confessed
latter was unable to pay the
that it was she who had caused the fire. The house, it
ec x
house; but
being this
d had been the property of her husband, who
appLare ,
purchase money at the stipulated period, and- so, the
assuranceher husband, she
bad determined to burn the place down in order to de.
sold it to potnistsha
fraud the company. She added that she had previously
made two attempts to set fire to the house, and gave a
dcacriptien of the manner in which she had done so. In
consequence of this confession it was supposed that she
might have been the author of a fire which had coin-
vetely destroyed the house in which she and her bus.
band lived on the :40th of January, 1845, and for which
he received B,ooofr, as an indemnity from an insurance
company and she being closely questioned admitted
that She had done so. • She professed to feel no sort of
attachment for her husband, and it was stated that in
the fire of 1845 she abandoned one of her children in
the midst of the flames ; it, however, was rescued by a
straeg..r. Her advocate attempted to prove that she
was mad, but the jury convicted her, though with ex•
tenuating circumstances, and the court sentenced her to
ten years? hard labour, •

ROYAL PROCESS'S THEATRE.
Under the Management of Mr. CataLso Lux

TFIt EVENING.
MUSIC H iTH CHARMS.

After which,
PIZARRO.
Iforts, by Mr. C. Kean ; Rivirn, by Mrs. C. Kean.

To conclude with
A GAME OF ROMPS.

THEATRE ROYAL, HAYMARKET.
Under the Management of Mr. Bnekatene.
THIS EVENING,
THE INCONSTANT.

Followed by
The Spanish Dancers.
After which,
PRESENTED AT COURT.

To conalude with
THE GALICIAN FETE.

LYCEUM THEATRE ROYAL,
Lessee, Mr. Charles Dillon.
THIS EVENING,
BELPIIEGOR.
Belphogor, Mr. Chas. Dillon ; Madeline, Mrs. Chas. Dillon.
After which, the New Burlesque. founded on the Winter's Tale,
supported by Mrs. A. Mellon (late Miss Woolzar), Miss 11. Gordon,
Mrs. B. White, Miss W. Wilton, Miss Rosins Wright, Messrs. Toole,
Calhaern, Barrett, and Brongh.
Stalls, 55.; Dress Circle. 4s. ; Upper Boxes, 3e. ; Pit, Zs.; GallerY.
Is. Commence at 7. lialf•Priee to all parts at 9. Box (Mica open
daily from 11 till 4.

ROYAL THEATRE ADELPHL
rropriator and Manager, Mr. B. Webster.
Directress, Madame Celeste.
THIS EVENING,
IRELAND AS IT IS.
Followed by
DOMESTIC ECONOMY.

After which,
TAR HUM TUTOR.
To conclude with
OUR GAL.