The Sun.
London, England, 1860-12-20 00:00:00

CURRE.N CY B_EFORM.

To the Editor of the Suffolk Chronicle.
Mr. Editor,—l concluded my last letter by asking—ln
what respect would not a free paper circulation, based upon
national wealth, and guaranteed receivable for taxes, be
superior to a circulation based upon one commodity—gold ?
I will now, by your permission, attempt to show the supe-
riority of the former to the latter.
But let me first premise what are the great desiderata in
a national currency. They are, doubtless, regularity,
security, and ample quantity. Without regularity—sub-
ject to sudden jumps and jerks—that agency, which, by its
smooth and harmonious action, ought constantly to advan-
tage the productive and mercantile classes, immensely
increases their hazard and uncertainty. Security to its
recipients against its possible depreciation is essential to the
very existence of money. And the quantity in circulation
should be at all times commensurate with the requirements
of trade.
Yet, how to realise such an adequate circulation s
wit
ee
h
many casual thinkers a great difficulty. Theycantniot
isn
' its
exportation, an essentially gold circulation can be indefi ni e ..N-
-creased. Indeed, they constantly observe that when,
by
exportation, gold rises in price, or when from its rise fa
price,subs tiatnicsee, xapsoartneda,gtehnet qiutsanatmityouonft gold
apobsseessinedcrebaysetdheor
Bank of England is diminished, and the national circulat-
ing medium is contracted. Money is held at higher rates,
discounts are raised, prices of commodities are depressed,
employment for the masses is less abundant, and profits are
reduced or annihilated. They perhaps perceive that free
trade in gold would retain that commodity, or even, by its
rise in price, if required, secure its importation. Still, in
such rise of price they have a difficulty—how such enhanced
price is to be paid in sovereigns of fixed weight.
This brings us to the all pervading fallacy of our present
currency—that money is a commodity—an article of intrin-
sic worth, or the representative of some one article of intrin-
sic worth, by which at any time may be obtained a definite
quantity of that one article. Instead of this, money is
essentially a token—a counter—possessing only conven-
tional worth, by common consent of society, or force of
national law. in such an instrument intrinsic value is
unnecessary, as any medium adopted by a community will
answer their purpose.
But, although any substance may be employed as a cir-
culating medium, no other combines all the advantages of
a legal tender paper issue. Its cheapness, the impossibility
of its depreciation, the ease and inexpensiveness of renewal,
the saving of wear and tear, the lightness of material, the
facility for remission, are many conclusive reasons for its
adoption. And besides these reasons observable in its
diminished at pleasure—may be so regulated as to expand
Or c9htract with thc orau§i9u or Q°4l7"ticlll Q 40.9"—i%

infallibly to prevent monetary crisis or panics, excessive
fluctuation of discounts, inordinate depression of prices,
non-employment or insufficient remuneration of labour or
capital—appropriately and productively applied. In all
these respects paper money manifestly is greatly superior
to any other form of circulation hitherto devised.
Bur is its security satisfactory ? Will it really be pre-
served from depreciation ? . It may be secure as our liber-
ties and our lives. It may be secure as our great national
investments—our national debt, consols, exchequer-bills—
as railway, and all other joint-stock shares. It may be
secure as stamps and documents of every description. Do
we doubt the security of the Bank of England issues ? If
;not, then surely issues by Government made legal tender
'and receivable for taxes, cannot be fictitious or insecure.
At present, Mr. Editor, I will not further trespass upon
your valuable space, but will reserve till another occasion
some delineation of arrangements requisite for the issue of
paper money, and of the features by which it should be
characterised.
Till then, permit me to commit this question of questions
to the earnest thoughtfulness of English minds—to land-
owners, tenant-farmers, labourers, artisans, merchants,
bankers—to all who are interested in the productive pros-
perity of the nation ; and urge them, as. vitally concerned
in its solution, to master its various details, and weigh it in
all its bearings. These, sir, alone' I venture to affirm,
will be found material relief to a burdened, groaning
people, elsewhere vainly sought. By adopting legal paper
tender money, representative of aggregate national wealth
or deposited securities, may our monetary convulsions and
depressions bo at once and for ever banished.
• I am, Mr. Editor, yours very faithfully,
CHARLES HAWARD.
Bromfield, Saxmundham, Nov. 26th, 1860.