The Sun.
London, England, 1858-01-22 00:00:00

EXCHEQUER NOTES.

(FROM A CORRESPONDENT.)
The adherents to the present laws upon the cur-
rency pertinaciously envelope themselves in their
own idea. Although the most rank of the bullion-
ists admit that the British community in buy-
ing and selling among themselves, may use
anything as a standard of value, whether it be
" paper, gold, or cowries," they have notwith-
standing the same cramp'd idea whenever they
dwell upon convertibility. They admit at the
same time that if a country select a thing for cur-
x ency,lthat may be increased or diminished in quan-
tity arbitrarily, the prices of commodities bought
and sold by it will rise when it is increased,
and fall when it is diminished in quantity. They

having chosen gold nevertheless because it cannot
arbitrarily be increased, nor diminished in
quanti y from the original sources, thereby
acknowledge the necessity of a fixity or el andard of
value. Notwithstanding all this, the Overstone
advocates will not see that regulating issues
upon gold in hand, destroys the very invariability
which gold would otherwise possess, and for which
it was originally chosen as a standard. They have
selected the thing, gold, but have by the Act of
1844 perverted its intrinsic character ; then
they fly off about foreign debts being paid " in
securities of land or property," which has nothing
at all to do with the present grievance.
Whether notes will be received as currency or
not in foreign countries is not the question. We
know that bills are received in foreign countries,

and as long as our imports have not exceeded our
exports, nor, vice versa, into any country, little
currency is required, for the exchange on paper ar-
ranges the settlement with few notes or sovereigns
possibly passing from one country to the other.
Now the rhodomoutade of Mr. George Combe,
written for 1855, without revision, fit only for
1817, is rank toadyism, and altogether inapplicable
to this day.
If the Scotsman paid him the compliment of
inserting his remarks, I am certain that the Cham-
ber of Commerce was composed of wise heads enough
not to be influenced by the malversations that he
must have laboured hard to trump up.
The frequent mention made of the Pennsylvania
and Philadelphian paper, at a discount of 13 per
cent. appears to indicate such a bias iu all Mr.
Geo. Combe's remarks, that he seems not capable of
understanding the distinctions that must be made
between gold as a standard of value, and the labour
which gave value to the gold. Pennsylvania was
not in a difficulty by not having wealth, but by not
having a proper current representation of it check-
ing the purchasing power. It had only to moderate
their purchases, in keeping with their sales, such
as we have to do just now, and all specie parted
with, because of the deficiency of sales or exports
returned back again to them, as it will now to
us in England.
Within these last three years England has been
doing just that which Philadelphia did in 1839,
when their current bank notes fell to a discount of
13 per cent. We have imported much more than
we have exported, consequently we have to pay in
specie the difference, which amounts, in round
numbers, to 150,000,000/. We having imported
during that time 450,000,0001., and have exported
300,000,0001., this has raised the value of money
to something like the same rrte as that of Phila-
delphia, 12 to 13 per cent. This will be found to
have been about the average rate of die-
counts during parts of the months of November
and December, 1857. Now we need not go
so far away to find illustration of evils arising out
of over-speculation. We can stay at home and see
the same thing acted over again in 1857. The
play and the farce are analagous here to that which
was played in Pennsylvania awl other states 18
Years ago, but 'with totally different monetary laws.
There it was the result of the suspension of cash
payment, or inconvertibility ; here the panic is
the result of cash payment, or convertibility.
Nothing can be more inopportune than Mr. Combe's
allusions to America at this particular time, when
convertibility is found to fail so completely, that
Its act of Parliament is again suspended the second
Instead of notes falling to a discount of 12 to 13
per cent. here, which was the case with Philadel-
phia notes, bills are here, at that discount, ranging
even higher—from 12 to 20 per cent. I presume
the paper of the Western Bauk of Scotland would
be found to be far worse than were the bank notes
of Missouri, which wore at 30 per cent. discount.
There is this grand variation in the play and the
farce of this day, that then it was bankers' notes,
now it is bank speculators' and merchants' bills
that are at the woeful discount. So much the worse
is it then for trade.
This only proves that something must be at a
discount when excessive credit is the result of ex-
cessive money wealth remaining in too few hands ;
of Papital In.refer are
tfPier i'elipecigaliOnlitis;hich they will enter upon, and
are at all times endeavouring to superinduce.
Now, our exports of bullion have consequently
been larger. The end of 1857 will show upwards
of 50 cuilliats for that year, so that now more than
the 84 millions which Lord Derby mentioned in
the House of Lords had been exported during the
three years—nearer 100 millions by this time must
have been sent away. That will still leave some-
thing like 50 millions that we either owe to other
countries, or that other countries were indebted to
us prior to 1854.
Now, the proofs are before us that an extension
of some kind will take place wherever business is
done to an increasing amount ; if not an extension
of notes, there must be an extension of bills, one
or other of which will always be brought to a dis-
count when our imports exceed our exports. The
Act of 1844 does not alter the international relation
of indebtedness, nor does it check speculation ; but
it does one great thing, for which it was designed
by the subtle money-law makers—it has the effect
of lessening the fall of notes to a discount, but in-
evitably brings trading bills and bills of exchange
to a great discount, for which the traders have to
pay and run .the risk instead of the bankers, while
the bankers and usurious money lenders are the
parties benefitted entirely at the expense of com-
merce.

It might appear to some that the Bank of Eng-
land is entirely exonerated from blame, since the
over-buying merchants gave rive tothe exports of
bullion. Up to the extent of the payments in
specie to regulate exchanges at home and abroad
that might be the case, also to the extent in which
she has not herself induced the outgoing of bul-
lion ; but her loans to foreign countries during the
time when panic is ravaging our country at home,
is reprehensible. The Legislature will nut be doing
justice to the nation, unless there be an open inves-
tigation into the conduct of the Bank of England
prior to the crisis and during its destructive preva-
lence.
The contraction of the currency when the panic
has reached us—when we have reached the maxi-
mum of the crisis—is a clumsy and inefficient mode
of curing the disease ; it is an aggravation of it,
not a cure. The evil is done, before the thera-
peutics come to its rescue, as the law now stands.
I know you are ever stedfast in uprooting abuses,
and equally fertile in providing honest remedies.
I now propose one, but I lament that one thing is
at a greater discount than were even the bills of
November last—that is, virtue, integrity of pus,.
pose. It is almost an act of supererogation in
these dark times, to attempt to provide a panacea,
for the evils that are, for until first principles are
recognised by a government as they are beginning
to be in Belgium and Sardinia, no good can come
out of a pandemonium such as the law-makers
coming from the first hell of magnitude in England,
viz., the Stock Exchange ; the fertile school and
initiation of all the vices that aro speculative—
gambling, betting, and gaming.
Forlorn as it at present is I will propound ano-
ther remedy for the evils extant on the currency.
Allow exchequer notes to be issued in proportion to
the departure of bullion from the Bank of England
—leaving the Bank to retire her issue as before,
apteeably to 1844.
starting firstof all an issue of notes of exchequer
to the 11,000,0001. or the 14,000,0001. the amount
of government debt to the Bank. Imports and
exports uniuterfered with are one of the causes of
bullion coming in and going out of England, I
propose that upon the monthly returns of imports
and exports, shall the issue of exchequer notes be
regulated and published ; as a premonition to mer-
chants and money advancers. As follows :—ln
January 1858, as imports exceed exports by ono,
two, or three millions, withdraw the exact amount
of exchequer notes from circulation, which the
monthly returns show to be the excess of imports
over exports. This will be a check to the two
great interests of the country, viz., that
of the banking interest and the commercial
interest. Issuing notes of exchequer in
propottion as bullion leaves the Bank,
will prevent the Bank lending to countries foreign
to domestic interests, which will compel her to
regard home interest first. The second, that of
withdrawing the same Exchequer issue from cir-
culation if imports exceed exports, and vice verse,
adding the same, if exports exceed imports, will
be such a check to commerce at the right time,
that all must be compelled to bo cautious, if now
they are not. Since no encouragement would to
given then to indi.criminate commerce, certainly
S wise legislature should compel (if they cann
induce) all men to regard national objects.
This check to excessive speculation is intlispene-
able, but the present mode of doing it, as provided by
the Act 1844, is not a preventive, it does not grapple
withthediflicultiesas they arise, but deals with them

doubly severe after the evil has been effected. Tbs
plan I propose would avert the approach of a strug-
gle before it reached a crisis, which of all things is
what we require. The very existence of such a
law as mine would in all probability prevent much
use of Exchequer-notes, although there they would
be, is case of need. The Bank, finding the issue
notes of Exchequer checked by commerce, would
have no need of putting on her screw, the privi-
lege of which, of late, she has abused. They might
by law be required to retain not less 'Amu
10,000,0001. of bullion in the Bank at all times; her
fluctuations above that amount would not be so
disastrous, since, according to the above arrange-
ment, it could neither be sudden nor great at one
time.

It might be said that the plan of withdrawing
Exchequer notes when imports are in excess, is
taking them out of circulation just when they are
about to be most required. But that is intended,
because since the arrest is very far in advance of
what we now have, when bullion becomes with-
drawn, it can be dealt with by the merchants in
time to prevent a crisis.
This plan would also be a great stimulant to our
exports, for foreign countries would be more inter-
ested in taking our goods, since the more we export
the more could we import from them, without
interfering with our circulating medium.

REFUGEES IN ENGLAND.

THE CASE OF PIERRI.—FURTHER
DISCOVERIES.
(Front the Birmingham Post of yesterday.)
The inquiries into the antecedents, pursuits, and
connections of the assassin Pierri are still being
prosecuted, and the result is some curious revela-
tions, which for prudential reasons it is not consi-
dered expedient at present to divulge. The first
steps taken were exceedingly creditable to the
vigilance and boldness of action manifested by Chief
Superintendent Stephens. Upon seeing in the
newspapers that a person of the name of Pierri was
arrested as a conspirator, he, acting upon the con-
viction that the Parisian assassin was identical with
the Bath-row teacher of languages, immediately in-
stituted inquiries, which left little doubt upon
his naiad that his surmises were correct. He
consequently took the wise, although somewhat
hazardou., step of searching the house. It
was poorly furnished ; there were no indications
of any manufacture, either of chemicals or meta:
work having been carried ou ; but some trunks,
which were fastened, and locked, excited attention.
In one of these, which Mr. Stephens forced open,
was found a most vol emulous correspondence with
individuals both in England and abroad, and ex-
tending so far back as 1848. These letters and
other documents, which were numerous enough to
fill a carpet bag, were at once taken possession of,
and placed in the hands of the Home Secretary.
Further investigations have given rise to the suspi-
cion that Birmingham will probably be freed from
the doubtful reputation of having fabricated the
shells, It is by no means unlikely that by this
time the maker has been discovered.
Last night another search of the house in Bath.
row was made by one of the metropolitan detectives,
assisted by Serjeant Manton, of the Birmingham
force, which resulted in what are considered to be
some important discoveries. A table stood in one of
the parlours, covered by a cloth which concealed a
drawer. In this receptacle were found another mass
of correspondence from individuals in England and
various parts of the Continent, some addressed to
" Major," and others to " Colonel Pierri." Nearly
all of these letters, which were written in French,
Italian, and English, are of recent date, and are
likely to throw some light upon the atrocity in
which their recipient was engaged. A book was
also discovered treating of the construction of
grenades, and giving numerous receipts for the
manufacture of explosive substances. This was
taken possession of. A great many numbers of the
Spectateur, a Paris paper, which the French Govern-
ment suppressed on Monday, were also found in the
house. From other discoveries it would appear
that the Spaniard Gomez, who is now in cus-
tody as implicated in the conspiracy, was like-
wise one of Pierri's visitors. Three of the princi-
pal's have thus been traced to Birmingham--
namely, Pierri, Orsini, and Gomez. It is by no
means improbable that some very singular facto
connected with the secret meetings here will be
placed before the public. The letters and docu-
ments above alluded to have, like the others, been
transmitted to Sir George Grey.

COMMITTAL OF THE PROPRIETOR OF A
MUSIC AND DANCING SALOON.

At 'Sheffield, on Monday, Mr. Thomas Youdon,
the proprietor of the Surrey Music Hall, in that
town, was summoned before thei magistrates far
offending against the 42d George 11., c. 119, which
enaots that any person who shall suffer in hie
house any lottery or " 1;4-41, s•,"" Anw„,
posed. played,drawn, &c., either by dice, lots, cards,
halls, numbers, or by any other way, contrivance, or
device whatsoever, shall be liable to a penalty of
500/., and shall be deemed and dealt with as a rogue
and vagabond. Mr. Gould, solicitor, conducted the
prosecution. Mr. Youdon is the proprietor of a large
place fitted up as a theatre, and capable of seating
from 2,000 to 3,000 persons. In addition to the or-
dinary amusements o singing, dancing, elrc„ hell°
resorted, as alleged, to a distribution of prizes to
attract persons to the place. These prizes were dig'
tributed under pretence of a sale by auction, Mr.
Youdon having, for the purpose, taken out an ante"
tioneer's license. The evidence in support of the
case was that of G. Joyce, a nurseryman. On Jan.
13 Joyce, with his daughter went to the Surrey
Music Hall, and received at the door two tickets of
admission, for which he paid 6d. each. The check.
taker, on receiving these tickets, asked, "Do you
wish to buy at the auction!" Joyce, who was Per'
feetly familiar with the arrangements, answered
" Yes," and received two tickets for himself and
daughter, each of which bore a number. At the clod*
of the performances there was a distribution or sale
of 10 twelfth cakes. Each was brought in separate%
by a man who called out "This lot is so and soy
(stating the number) and the person in the audience
holding the ticket with the corresponding number
answering "Here." Mr. Youdon then said, "The
reserve on this lo is 14s. (or any other sum), do You
advance?" The bearer of the ticket in each instance
bid a small sum additional, and the lot was at once,
knocked dowo to him. The eighth cake was declared
t o he lot 250, and Joycehappening to hold the ticket
bearing that number, answered " Here." Mr. Toll,-
don stated that the reserve on it was 71., on which
Joyce bid Bs., and was declared to be the purchaser.
The ten cakes having been thus disposed of, ldr•
Youdon announced that the buyers must go to 0,
private room. Here each lot was formally entered
in a book as sold, and the buyer, on paying 2d. ass
deposit, had the cake handed to him. Joyce having
seen Mr. Youdon purchase one of the cakes bscic
from the buyer, offered his for 55., and Mr. Youdou
gave him that sum for it.
Mr. Branson, defendant's solicitor, on this evi-
dence, declined to offer any defence.
The magistrates having consulted together,ot
lookM r
Pye Smith (the chairman), said they did not
upon this as an ordinary case, or Mr. Youdon as an
ordinary offender, because be had long, by artful
and ingenious ways, endeavoured to evade the la*
as far as possible, and to some exten t had succeeded.
But in this instance,the magistrates were of opinion
that the offence had been proved, and therefore
sentenced him to 7 days' imprisonment in the Hnue.
of Correction, the committal to take place that dui,
,
week, unless in the meautime the defendant entereu
into the necessary sureties to appeal. This cot'
mitts! would not interfere with the defendant's
liability to a prosecution at the suit of the Attar'
ney-General for thesoo/. penalty. —Leeds liferciarY•

Lora Norreys will come to town to-morrow, from
visiting Frances Countess Waldegrave and Mr. Sol'
court, M.P., at Nuneham Park, Oxon.
Lord Lovaine left town yesterday morning, far
Albury Park, near Guildford.
Tee Baron Miltitz has arrived at the Brunswick
Hotel,. St. James's, from Wiesbaden. The Hon. S. Fs
Carew has also arrived at the same establishment.
The four Italians—Pierri, Orsini, Gomez, and Do
Silva, alias Rudio, sere confined in the prison of Meog°,;
Pierri is 60 years of age, Orsini 38, Gomez 80.30'
Rudio 25. Gomez is a Neapolitan, and Rudio, it er
pears, eas born in the Lombardo-Venetian Kingdom.
Mondry next, the day for the marriage of the Princele
Royal, will be kept as a holiday at the Stock Exohang"
and there will be merely a nominal attendance in WI
transfer offices at the Bank of England.
MARRIAGE OF THE PRINCESS ROTAL.—The CbaP•l
Royal, St. James's, will not be opened to the punlil
until after the drawing-room on the 30th. The char).
will then remain open for a month.
KING BOMB I AND THE PRESS —A gentleman at prt
sent on a tour on the Continent has accidentally 0";
tamed a piece of information, curiously illustrative 01*
Vat) literary tastes of the Neapolitan Government'
Thera is at Naples a fund set apart annually for tkBl
suetentation of the official journal, so ample, as ad
appear from the sequel, as to be rather more than sub.
cient for the purpose. On the 28th of last December
the 1)110 wing donations were granted by Royal RescriPt:
as New-year's giit4, out of the surplus moneys of °I
feud for 1858 :
To Signor M—, correspondent of the Univers 2,400 P'
To the director of the Gazette du Midi
To the director of the Bilancia di Milano 1,200
To the directors of the Cattolico di Genova 1,300
To Signor C—, in Brussels BOO
To Baron La G—, correspondent of the Gazetta
di Augsbuiy
To Signor di L—, correspondent of the Cat
tolico
The above is an interesting and instructive gradttot::
scale, if not exactly of literary merit, yet of merit of
kind, or what is considered such at Naples.