The Sun.
London, England, 1869-07-02 00:00:00

THE BANK OF ENGLAND.

Mr. Charles Sturge writes to the Daily News the fol-
lowing letter on the Bank of England :—" A little consi-
deration will shew every man of business that a moderate
and steady rate of interest is essential to this country
if our manufacturers and merchants are successfully to
compete with those of France and Germany. The
recent semi-panic spews how utterly incapable the
Bank of England is to supply the wants of the trade
of the country, as the least revival in business
doubles the rate of interest, and nearly the whole of the
small profit left by foreign competition is absorbed in the
extra discount on the bills taken in payment. The
Government advance on land, public works, drainage,
&c., but not on what the nation's credit especially
requires they should, that is, their own stocks.
If this was done IA the same rate of interest
as on the above, it would, I think, be all that is wanted,
but it should be in legal tender notes payable in taxes,
not in gold. There is naturally a prejudice against a
currency not payable in gold, but this is only an idea, as
the Bank of England has never whilst the charter has
existed been able to pay the amount of notes in gold
if called upon to do so, consequently Bank of England
notes are only really payable in gold so long as the
holders do not require such payment. The interest
saved by thus advancing upon Consols would enable
the Government to further reduce taxation, and serve
as a step towards the free breakfast table,' &c., &c.
It appears absurd to try to make a less currency
do now than we had sixty years back, though our trade
and money transactions have multiplied ten times; and the
wonder is that we get along so well as we do, particularly
as under the clauses of the Bank Restriction Act the
supply decreases from year to year. The Bank Restriction
Act and the sliding scale of corn duties were both intended
to regulate commerce by law ; together they might work ;
but free trade in produce and an artificially restricted
currency for its payment must continually clash. Every
now and then, either from commercial distrust or the
state' of tLe continental markets, large sums in specie are
required for the adjustment of balances incident to our
transactions with foreign countries. These are of course
drawn out of the Bank of England. Under ordinary
circumstances the only result would be that for a time the
stock of gold in ' the Bank cellars would be small ; but
the Bank F,eetrietion Act here steps in, and says that
the stock of gold being temporarily reduced, the supply of
notes, by which the internal trade of the nation is carried
on, shall also be reduced ; and the business of the country
is all at once pulled up, not because of any national loss,
for our farms are as fertile as ever, our ships as good, our
warehouses as full of produce ; but an old restrictive law
has suddenly deprived us of the circulating medium used
in the exchange of these. As the trade of the country
extends, the quantities of gold required for the temporary
adjustment of foreign balances will of course increase, and
-panics, from this deprivation of internal currency, become
more and more frequent. I could never understand why
England is not allowed the cheap luxury. convenience,
and advantage of one•pound notes, the same as Scotland
and Ireland, instead of our clumsy, cumbersome gold
currency, which, from the Chancellor of the Exchequer's
statement, will before very long cost this nation nearly
half-a-million merely to rectify."

AIEE7'I2;G OF GOTEDERATE COTTOY
LOAA BONDBOLDERB.

A meeting of Confederate Cotton Loan Bondholders
was held at the Cannon-street Hotel, London, on Thurs-
day, to protest against the speech of- Mr. Sumner on
the Alabama and British Claims Treaty, delivered
on the 13th of April last. The chair was occupied by
Admiral Sir Provo Wallis, K.C.8., and a long report was
read setting forth the correspondence which had passed
between the committee of the holders of bonds of the
cotton loan contracted with the Confederate States of
America and the authorities of the Foreign Office.
1 The adoption of the report was formally moved by the
CHAntitAN, and was seconded by Mr. Move N, who
intimated that not only had the most able members of the
bar expressed a strong opinion upon the validity of the
claims of the bondholders, but the present Lord Chancellor
had also admitted it in his judgment in the case of
"Prioleau and the United States of America." Were it not
for the American Government he believed that every
Statewould at once recognise the claims of the bondholders.
General HowAP.D, of the Confederate army, stated that
during the war the cotton was absolutely stowed away for
the bondholders. Even when the soldiers wanted food the
Confederate Government would not touch property which
they felt belonged to others.

Mr. HEAD urged that the just and legal claim of the
nondholders should be persistently kept before the Ameri-
can Government. Let them understand that the bonds
had been taken, and were held by persons who took
them, not out of political sympathy with one section or
the other, but because they thought them a safe invest.

meat.
The CHAIRMAN was quite sure that the time w•on

,:ome when the American Gcverument would be com-
pelled by pressure from without to recognise the bond-
holders' claims.
A BONDHOLDER wished to know if there was anything like
an assurance that the negotiations in reference to the
Alabama claims were about to be resumed.
Mr. Mor.GAN understood that they were to be reopened,

and, be believed, on a basis that would be of advantage

to the bontlho'ders.

Two resolutions had been prepared to be submitted to
tne meeting, Lut the general feeling being that it was

better for the bondholders to take no action at present,
they were not put, and the proceedings were brought to a
close with a vote of thanks to the committee.

AN ASSAULT BY A " UNIONIST."—The strikes
at Oldham are intensifying the ill-feeling existing between
the trades unionists and the non-unioListB of Oldham.
A man was brought up there before the magistrates a
day or two back and sentenced to two months' imprison.
meta for assaulting a " knobstick," as be called one of the
men who did not go on strike. The attack made was most
savage.

---
THE OVEREND, GURNEY, AND CO. CASE.—The
counsel engaged for the defence in the Overend, Gurney,
and Co. prosecution are—For John Henry and Henry
Edmund Gurney and Mr. Birkbeck the Solicitor-
General, Mr. Hawkins, Q.C., Mr. Serjeant Ballantine,
and Mr. J. C. Mathews. For Mr. Barclay— Mr. Mellish,
Q.C., Mr. Serjeant Parry, and Mr. Montague Williams.
For Mr. Gordon—Sir John Karslake and Mr Ledgard.
For Mr. Rennie—Mr. Giffard, Q.C., Mr. Poland, and
Mr. Jardine. -