The Sun.
London, England, 1869-05-31 00:00:00

TRADE AND FINA.NCE.

The debate ou the Customs and Inland Revenue Duties
Bill presents many features of interest. It is very evi-
dent that a great advantage will accrue from the pro-
posed plan of collecting the taxes, by turning the assessed
taxes into license duties, on account of the simplifi-
cation in the national accounts. The Chancellor
of the Exchequer, however, has certainly under-
estimated the effect of his measure upon the money
market, and we fear that serious inconvenience may
result at times front the change. We are not, however,
anxious to see any attempt to " cocker up" the Battle of
England, although, as that institution was the creation
of a national necessity, and has even adminis-
tered to national wants, it holds very peculiar relations
with the Government. At the same time, the fact of its
solding the national balances, and having the monopoly
)f the metropolitan note issue, goes far to extinguish the
lebt of gratitude that the nation owes it. We believe,
therefore, that Mr. Lowe's independence of the Bank of
England is not altogether wrong. It is desirable, however,
that the reserve of the Bank should be liable to as little
fluctuation as possible, and such changes should
be confined to the requirements of trade. We want
a commercial barometer that shall tell us, week by week,
the changes in the commercial atmosphere, and afford us
some means of prognosticating the immediate future. At
present we have some such means of determining the
,ourse of the money market in the admirable accounts
published by the Bank, and it is because Mr. Lowe's bill
will interfere with their efficiency that we principally quarrel
with his measure. According to the figures laid upon the table
of the House of Commons by himself, the greatest diminu-
tion of the public balance will take place at the close
the year, being the time of the panic par
excellence. This is precisely the period when the import
trade has attained its greatest dimensions. Our
imports mainly consist of vegetable products,
which are of course dependent upon season,
and, in the natural order of things, they arrive here
towards the close of the year. The Board of Trade
returns will at any time establish this fact, which happens
invariably to be the case. By the same argument, the
demands of commerce upon the money market
are more restricted during the opening months
of the year, and yet, by a singular fatality, this
happens at a time when the bank would probably have a
larger sum of money at its disposal. The question there-
!ore arises whether such a state of affairs would not lead
to an inflation of trade during the earlier portion of the
year, to the great detriment of importers towards the
:dose. Such would evidently be the tendency of affairs.
There is, however, one saving clause to be considered.
However extensive the changes might be that
would be brought about by the new arrange-
ments, they would at least be constant and
would be readily calculated. We should be as fully
Prepared for a gradual diminution of the Government
balance throughout the year as we should be for a
sudden augmentation at the period of the collection of
the revenue. Mr. Lowe, however, is not altogether
unprepared with a scheme that may in some measure
obviate the apprehended difficulties so far as the
money market is concerned. For instance, he proposes
to borrow on Ways and Means from the National Debt
Commissioners, and he will probably embody this idea in
the next money bill. Again, there is a large sum paid for
terminable annuities, which is spread over the whole year.
By making this payable at the two heaviest quarters, the
equilibrium may be to some extent restored. Mr. Lowe
has not pledged himself to either of these measures, but
the latter would bring about a further simplification of
the national accounts, and we should, therefore, be glad to
see it adopted.

As we recently pointed out would be the case, the wheat
trade is now wholly guided by the course of the weather,
and prices are immediately influenced by the prospects
and condition of the plant. The weather, therefore,
having been very unfavourable for the development of
the wheat plant, owing to the great abundance of
wet and the cold frosty nights experienced,
trade has ruled firm, and prices have advanced
fully is. per quarter. Although there is no
room for serious fear as to the Ultimate safety of the
crops, it is evident that we cannot look for so early or so
large a yield as last year's. We incline to the belief that
prices have now seen their lowest point, and farmers will
do well to-. resist further concessions until same very
decided improvement takes place in the condition of the
plant.

The Duke of Norfolk says he is " not able" to grant
the request conveyed in a petition from the Methodists of a
Surrey village, who recently asked for a piece of waste laud
upon which to erect a chapel.

Pope Pius the Ninth, feeling profoundly the
wide-spread evils and crushing burdens imposed upon
the nations of Christendom by their gigantic armaments,
intends, it is aunot need, to lay before the approaching
(Ecumenical Council at Homo a proposal for the general
adoption of International Arbitration in lieu of war, and
for the establishment, by a High Court of Nations, of a d;-
finite cede of International Law, instead of the vague and
unconnected maxims, from Vattel and other private sources,
which at present constitute the only approximation to the
urgently needed influence of a regulating system of rules
and precedents to be universally recognised as An authority
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