The Sun.
London, England, 1858-01-29 00:00:00

LONDON, FRIDAY, JAN. 29, 1858.

The Bank Directors yesterday reduced the
minimum rate of discount from 5 to 4 per cent.
The movement did not, however, produce any
great impression in the money market. It had
previously been, to use the technical phraseology,
fully "discounted," or, in other words, its effects
anticipated, and already acted on. The general
feeling was that the step was too tardy, and did
not go far enough, to restore the business that
had been forfeited by their cupidity—that they
bad acted like petty tradesmen, ready to take ad-
TantagS of any increase of price, however trifling,
lAA In/WllliZg to give the benefit of reductions to
thel consume:its until compelled to do so. This
unavorthy poicy hal,
operated injuriously , r
very ior
their owls interests, and, as they are still lagging
behind, there is not
much prospect that they can
successfully compete with
establishments ready
and willing to advance money,e:nal, history of the
rules, it 3, or even less tban: 3 percent.approved seen-
Never, perhaps, in the
m
country have there been
such llu
'violent fluctuations in the value
and er
sous and
Wiley as within the last two or three months,
during during which time the range at the quasi national

'establishment varied from 10 to 4, and in other
l'Ausrters. from 15 to 3 per cont. ; and 10 per
amt. before the issue of the Government letter,
suspending and virtually abrogating the Act of
1844. Pecuniary accommodation could scarcely
be obtained'on any terms, however stringent, and
but for brief period,,. Etch man butt-sued his
pockets against his neighbour, and, reckless of
expense, provided himself, at any price, with
ample fund? to meet any pof.sible emergency.
There was a general system of hoarding in
operation. The hard-calculators profited largely,
although many from excessive greediness, and
hoping to realise still larger profits by keeping
their money by them, lost the golden opportunity.
These were the men who were so indignant when
the Government, not for the bcnefit of the com—
mercial community, but in order to save the 0d
Lady from closing her doors, issued the letter of
the 12th Nov. last, promising to bring forward a I

~....
bill of indemnity for any violation of the law. •
Their organ babbled a great deal about the neces-
sity of preserving faith with creditors, as if that
could be in any way impaired by the debts being
paid to the uttermost farthing. It might as well
rail against the man who stepped between the
usurer and his victim, and prevented the former
from obtaining the " pound of flesh " for which
he had not bargained, but which he thought he
might enforce if his intended victim were left to
his tender mercies, to deal with as he thought
Iproper. Much valuable property was undoubtedly
sacrified, and many houses of unquestionable
solvency obliged to suspend payment, but this
was not sufficient. What they were pleased to
designate as " the vicious system of holding depo-
sits, paying interest, which interfered with their
, profits was not abolished by " the crumbling to
atoms of the institutions by which it was fostered."
Binc illa lack-move. Hence the source of their
direful wrath—the escape of the mercantile and
joint-stock banking community from their toils,
defeated if not all, a large portion of their selfish
schemes.

It was on the sth of November that the Bank
raised its rateof interest to the then unprecedented
sum of 9 per cent. This, however, did not suffice,
and on the 9th another increase to 10 per cent.
was adopted. All this time the Leviathan and
its servile imitators were encouraging the victims
to bear each fresh turn of the screw with equani-
mity, telling them what fine fellows they were,
and that the rate of interest could not affect any
really solvent house. The gammon was, however,
too transparent, and neither the bullying or cajol-
ing of " hard calculating" journalists could satisfy
the sufferers of the propriety of having their sub-
stance devoured, and themselves and their fami-
lies ruined, in order that usurious money-lenders
may build up enormous fortunes on the db‘ris.
On the 12th November, as we have already
stated, the Government interfered, and only just
in time to save the Bank, which was forthwith
obliged to avail itself of the permission
thus obtained, and to issue a further sum
of 2,000,0001. on securities. The relief was
instantaneous, or would have been so, but
for the impolitic condition with which the boon
was clogged. "The interest should still be main-
wined at 10 per cent." Even when the Act of
Indemnity was introduced, that was made a sine
qua non, and an amendment proposed by Mr.
Mannis, authorising the Bank to reduce the rate
of interest without ,the act being thereby annulled,
was rejected by a considerable majority.
It was on this account, probably, that the exor-
bitant rate of 10 per cent. was retained for more
than six weeks, namely, until the 24th December,
when there was a fall to 8 per cent. This, how-
ever, did not go far enough, and en the 7th
January there was another tumble to 6 per cent.,
the variation within a single fortnight being thus
no less than 41. per 1001. in the rate of interest,
a change greater than the wildest imagination
ever conceived. In another week, on the 14th
inst., there was a further reduction to 5 per cent.,
and yesterday the rate was fixed at 4 per cent.,
from whence there must be a further reduction
within a brief period.
Never at any time were there such fluctuations
within five weeks, the fall being from 10 to 4
per cent. Even as yet commerce has not
revived from the terrible blows it encountered,
and those who, a few months since, were hoarding
their superfluous wealth, are now eagerly looking
oat for eligible investments on far less favourable
terms than they could then have obtained.
Before the passing of the Bank Charter Act, the
rate for a century and a quarter never varied
beyond the limits of 4 and 5 per cent., with the
exception of a few months in 1838-9, when
it was raised ~to the then exorbitant rate
of 6 per cent. Merchants, traders, and
manufacturers could then make their calculations
with safety. But now legitimate speculations
are converted into gambling transactions that will
give enormous profits or enormous losses. No
wonder, then, that we see adventurers springing
up, and by their reckless dealing casting discredit
on commerce. All these evils may be directly
traced to the hateful effects of the monetary codes
of 1819 and 1844. The latter has greatly
aggravated the mischief produced by the former.
This will appear beyond the possibility of doubt
in the discussions that must speedily take place ;
and we earnestly hope that the people may be
sufficiently awake to their own interests, so as to
insist on the immediate repeal of this obnoxious
law, and the introduction of a better and more
equable circulating medium adequate to the wants
and exigencies of the country.

We have at last something which may be called
new on Church-Rates ! something which really
will repay a perusal by all parties who feel inte-
rested in that question. Some facts clearly as-
certained, and put • in an admirably clear light ;
and, will our readers believe it—some, really not
many, figures so arranged that the most per-
functory reader will feel their force at once. We
refer to the lucid and unanswerable statement
laid before Lord PALMERSTON on Wednesday, by
Dr. FOSTER, when an Anti-Church-Rate deputa-
tion from all parts 'of the country waited on his
lordship to counteract the misrepresentations of
Lord Smarrnsuunv and the committee of laymen,
made not long ago to the Premier.
Whatever Lard SHAFTESBURY and the Premier
may think, Church• Rates though an old subject
are not a worn-out one. People are often impa-
tient of discussion about them, for the very good
reason that they think no discussion can be
needed. The great majority of laymen look upon
Church-Rates as a parson's crotchet ; they know
that if the Rev. Rector or vicar would but let them
alone, they could just put their hands in their
pockets and raise without more ado all that is
wanted ; but the Rev. Rector is ex officio chairman
of the vestry, and the Rev. Rector likes the usual
assertion of his right to " take tribute of the
Philistines," and the Churchwardens—well, they
must even be good Churchmen and do what the
Rev. Rector tells them ; so, a vestry is called, and
a rate is proposid, and if none of the Philistines
interfere all is done as good Churchmen ought to
perhaps do the thing. Dissenters, if there are any in
Parsonathorpe or Squireham, grumble and pay, or
er
Pay without grumbling because shop cus-
tom or the tenancy of a farm depend on meek
subjection.

But all Dissenters are not so meek. A great
many of them cannot get rid of an Englishman's
characteristic resentment of an overcharge, or an
unfair charge. A fee, where no service is rendered,
or a disproportionate one, even a toll over a
bridge where he does get something palpable for
his money, in fact, all sort of extra though petty
charges where he thinki he should not have to put
his hands in his pocke+, vex and gall hint out of
all proportion to their money value. And this is
no doubt the secret of Dissenters' irritation with
Church-Rates, and most thoroughly do we sympa-
thise with them. Had our neighbours of Exeter
Hall, and all the conventicles of London the power
to levy conventicle rates on us, while we repaired
our own churches and paid for our service; we
knowihat we should be but too ready &show
the collector the door, even if he returned