The Sun.
London, England, 1858-10-08 00:00:00

THE SUN, LONDON, FRIDAY EVENING, OCTOBER 8,- 1858.

CONTRACT FOR BRUSHES, BROOMS, HAIR
PENCILS, AND TOOLS, ETC.
Department of the Storekeeper=General of the Navy,
Somerset-place, 4th Oct., 1858.
THE COMMISSIONERS for EXECUTING the
OFFICE of LORD HIGH ADMIRAL of the UNITED
KINGDOM of GREAT BRITAIN and IRELAND, DO
HEREBY GIVE NOTICE, That on TUESDAY, the 19th
instant, at Two o'clock, they will be ready to treat with such
Persons as may be willing to Contract for snpplyin her
Maiesty's several Dockyards with BRUSHES, BROOMS,
lIAIR PENCILS, and TOOLS, &c., under a Contract for
twelve months certain, and afterwards until the expiration
of three months' warning. •
Patterns may be seen, and a form of the Tender, a sche-
dule of the articles, and the conditions of the Contract
obtained at the said office. No Tender will be received
after Two o'clock on the day o treat, nor wl an be
noticed unless the party attends,f 'or any Agent for him duly
authorised in writing.,
Every Tender must be addressed to the Secretary of the
Admiralty, and bear in the left-hand corner the words
" Tender for Brushes, Brooms, &c.," and must be delivered at
Somerset-place, accompanied by a Letter signed by Two
responsible Persons, engaging to become bound with the Per-
son tendering; in the sum of .£5OO, for the due perform-
ance of the Contract.

(1 REAT WESTERN RAILWAY.
kJ! CHEAP EXCURSION FOR A WEEK to OXFORD,
Banbury, Leamington, Warwick, Birmingham, Wolver-
hampton, Shrewsbury, Llangollen Road, Chester, Birken-
head, and Liverpool, &c., from Paddington, on SATUDAY,
October 9th, at 7 a.m., returning on Saturday, October 16th,
from Liverpool (Landing Stage) at 8.30 a.m., and interme-
diate stations as per handbills. Also, a Train will leave
Paddington on MONDAY, October 11th, for the same Sta-
tions, returning on 'Saturday, the 16th, at the same time.
Fares there and back-Oxford, Ga. 6d. and 4s. ; Banbury, Bs.
and ss. ; Leamington or Warwick, 10s. 6d. and 6s. ; Bir-
mingham, :12s. and 7s. ; Westbromwich, Wednesbury, or
Bilston, 12s. 6d. and 7s. 6d. ; Wolverhampton, 13s. and Bs. ;
Wellington or Shrewsbury, 17s. and 10s. ; Llangollen Road or
Chester, 18s. 6d. and lls. ; Birkenhead or Liverpool, 21s. and
ils. Children under 12, half-price.

BOARD AND RESIDENCE. A Superior
Home is offered to a Gentleman of steady habits, en-
gaged during the day, by a family residing near Regent's-
Park. For a young man coming to London for the first time
this would be found a desirable residence. Terms moderate.
References to be exchanged: Address, J. P., Wright's
Dairy, Granby-street, Hampstead-road, N.W.

GLENFIELD PATENT STARCH,
USED IN THE ROYAL LAUNDRY,
A.ND PRONOUNCED BY HER MAJESTY'S LAUNDRESS to be
THE FINEST STARCH SHE EVER USED.
Sold by all Chandlers, Grocers, &c., &e.

•
GEORGE HOBSON begs to call the attention
of Gentlemen to his New Autumnal Trousers, 21s. to
255. Also his New Partridge Mixture Shooting Coats.
Excellence with Economy.
GEORGE HOBSON, 57, Lombard-street.
Established 1796.

WHO WILL PAY THE CHINESE
INDEMNITY ? Why, the English themselves. An
export duty is to be levied, and then not even the East India
Tea Company will be able, as they now are, to sell Mb. of
Black, Green, or Mixed Tea, at ls:10d. per lb., and Coffee, in
the Berry, at 13d.—Warehouse, 9, Great St. Helen's-church-
yard, City.

ID. DISCOUNT ,IN THE SHILLING OFF
MUSIC. Post free to any part of the United Kingdom.
S. and T. Gilbert, 4, Copthall-buildings, back of the Bank of
England. London, E.C. Copy the address.

WHY CONTINUE TO PAY FULL PRICE.
. Twopence discount in the shilling off all Books, Ma-
gazines, 314 s, Prints, &c. The rate of postage is 2d. for each.
Ib. Buyers will find it a saving in the cost, even after pay-
ing the postage or carriage. A£s order sent carriage free to
all parts of the United Kingdom. Town orders ss. and up-
wards sent free. S. and.T. Gilbert, 4, Copthall-buildings, back
of the Bank of England, London, E.C. Copy the address.

GRATIS, AND POST FREE TO ALL PARTS
of the United Kingdom. A new catalogue containing
(1,000 volumes of new and popular books, with the published
.
price affixed to each ; from which a discount of 2d. the is.
is allowed. S. and T. Gilbert, 4, Copthall-buildings, back of
the Bank of England, London, E.C. Copy the address. N.B.
All warranted perfect in every respect, and precisely the same
as if the full price were paid.

A NEW DEPARTMENT FOR YOUTH, &c.
HJ. and D. NICOLL recommend for an out-
• side Coat the Havelock ; and for ordinary use the
Cape Suit, such being well adapted for young gentlemen, as
exhibiting considerable economy with general excellence.
Gentlemen at Eton, Harrow, Winchester, the Military an d
Naval Schools, waited on by appointment. A great variety
of materials adapted for the Kilted or Highland Costume, as
worn by the Royal Princes, may be seen at
WARWICK HOUSE, 142 and 144, Regent-street.

THORLEY'S FOOD FOR CATTLE.—
It is only a short time since this singularly efficacious
article of animal diet first made its appearance ; and already
its celebrity is world-wide. It has been a subject of wonder,
and has puzzled many a brain to explain how this has been
brought about. Yet when we are acquainted with a few facts
concerning the food, our wonder will cease. A few days since,
a gentleman wrote, stating that he had a horse which was a
" perfect bag of bones." He tried all kinds of things to get
the animal into condition, but in vain. He then bought some
of Thorley's food ; and he says the effect was wonderful. The
horse rapidly grew fat, and in the course of a few weeks had
gained no less than 12 stones. Again we find at the late agri-
cultural shows at Birmingham, Cardiff, &e., the animals which
carried off the highest prizes had been partly fed with Thor-
ley's food for cattle. Such facts speak for themselves, and we
are forced to the conclusion that its celebrity arises solely
from its own intrinsic merits, and the great demand for it can
proceed alone from the good opinion and testimony of those
who have tried it. All parties interested in horses and cattle
will do well to apply to 77, Newgate-street, London, for a
pamphlet which is sent post-free.

NEW AND IMPORTANT DISCOVERY IN 'THE
SCIENCE OF MEDICINE.
Patent Office Seal of Great Britain. Diplome d'Ecole de
Pharmacie Pharmacien de Paris. Imperial College of Me-
dicine, Vienna.
TRIESEMAR Nos. 1,2, and 3, prepared in the form of a
lozenge, devoid of taste or smell, and can be carried in the
waistcoat pocket. Sold iu tin cases, divided into separate
doses, as administered by Valpeau, Lallemand, Roux, Ricord,
kc., adapted for both sexes.
TRIESEMAR No. 1 is a Remedy for RELAXA-
TION, SPERMATORRIICEA, and all the distressing
consequences arising from early abuse, indiscriminate excesses,
or too long residence in hot climates. It has restored bodily
and sexual strength and vigour to thousands of debilitated
individuals who are now in the 'enjoyment of health and the
Functions of Manhood: and whatever may be the cause for
' DISQUALIFICATIONS for MARRIAGE, they are effectu-
ally subdued by this Wonderful Discovery.
TRIESEMAR NO. fr.
effectually, in the short space of three days, completely and
entirely eradicates all traces of Gonorrhoea, both in its mild
and aggravated forms, Gleets, Strictures, Irritation of the
Bladder, Non-retention of Urine, Pains of the Loins and
Kidneys, and those disorders which Copaivi and Cnbebs have
so long been thought an antidote for, to the ruin of the health
of a vast portion of the population. •
TRIESEMAR NO.
is the great Continental Remedy for Syphilis and Secon-
dary Symptoms. It also constitutes a certain cure for Scurvy,
Scrofula, and all Cutaneous Eruptions, removing and expelling-
in its course all corruptions and impurities from the vital
stream, as altogether to eradicate the virus of disease, and
expel it with the insensible perspiration, through the medium
of the pores of the skin and urine, and is a never-failing
remedy for that class of disorders which unfortunately the
English Physician treats with Mercury, to the inevitable de-
struction of the patient's constitution, and which all the sar-
saparilla in the world cannot restore. Price lls., free by post,
Is. Bd.extra to any part of the kingdom; or four cases in one
for 335., by post 3s. 2d. extra, which saves lls., and in £5 cases,
whereby there is a saving of £1 12s. Sold by Daniel Church,
78, Gracechurch-street, City ; Bartlett Hooper, 43, King Wil-
liam-street (four doors from London-bridge); Watts, 17,
Strand ; Prout, 229, Strand ; Hannay, 6.3, Oxford-street ;
Sanger, 150, Oxford-street; Butler, 4, Cheapside ; Edwards,
St. Paul's Churchyard.

HUMAN FRAILTY ; a Medical Work, price ls.
post free, illustrated with 100 engravings, containing the
opinions of Valpeau, Lallemand, Roux, Ricord, &c. It gives
instructions for the perfect restoration of those who are pre-
vented by impediments from entering into the married state,
also showing the dreadful results from early abuse, gonorrhoea
and syphilis,.and the benefits arising from the chemical tests
and the examivation of the spermatoza by the newly-con-
structed microscope, with powerful lenses. The Author may
be consulted daily according to the rules in the Rook.
Sold by J. Allen,
20, Warwick-lane, Paternoster-row, and
from all agents for the sale of "Triesemar."

CHESS.—The match between Mr. Morphy and M.
Harrwitz has been suddenly brought to a close, in conse-
quence of the latter gentleman being constrained by ill
health' to decline going further. The state of the games at
the close was—Mr. Morphy, five, M. Harm itz two, and
one drawn. The terms of the match, it may be remembered,
were that the winner of the first seven games should be the
victor.

•
[ADVERTISEMENT.] - Painless Teeth Extraction.—By
her Majesty's Royal Letters Patent. Mr. B. Bethel, sur-
geon dentist, 38, Albemarle-street, Piccadilly, `V., has the
pleasure to inform the nobility, gentry, and public, that he
possesses a patent apparatus for painless tooth and stump
extraction, by congelation, without chloroform, simple in
its action, and is used with the greatest facility. Mr.
Bethel guarantees, with his invaluable patent, perfect im-
insuring to the
munity from pain during operations hitherto SO dreaded.
He continues to supply his Incorrodible Mineral Teeth of
unrivalled beauty, which are fixed in the most tender gums
withoutthe
springs,heg
at e sr c
oeisn,
fo orr
taannyd fda sutreanbiinl gt
ys „
with perfect arti-
culation and mastication. The chemically prepared white
and gum-colour India rubber as a lining to the ordinary
gold and bone frame, by which all sharp edges are avoided,
and secures softness and flexibility to the mouth and gums,
with increased suction and a perfect fit, so that the greatest
support is given to the adjoining teeth. Decayed teeth
stopped with the white enamel cement. Loose teeth
fastened. Scurvy in the gums effectually cured. Parents
should be particular in having their children's teeth early
attended to. Consultations free. 38, Albemarle-street, Pie-
opposito the York Hotel, _

THE EAST INDIA AND CHINA MAILS.

The Peninsular and Oriental Company's screw
steamship Salsette, Capt. I. Brown, arrived at
Southampton yesterday morning, with the heavy
portion of the Calcutta, Bombay, and China mails,
in charge of Lieut. Bolton, R.N., Admiralty wi°ent.
11:x dates of sailing were—Alexandria, Sept. 25 ;
Malta, 28 ; and Gibraltar, Oct. 2. On the outward
voyage the Salsette experienced fine weather and
light head winds ; homewards she had strong head
winds, but fine weather.
This steamer brings 94 passengers (68 first-class,
14 second, 11 children, and. 1 distressed seaman),
including—Major Loftus, Major-General Birrell,
Major Pennywicke, Captains Ingram, Torriano,
Cassidy, Cunliffe, Cooper, and Broughton ; Mr. and
Mrs. Mackintosh and two children; Captains Hay-
dock and Bayley ; Lieut. Penton, Dr. Perrie, Dr.
Rose, R.N., l‘lajor and Miss Cotter, Captains Gre-
gor), and Phillips, Captain and Mrs. Torrens and
family, Captain Sweeney, Capt. and Mrs. Lodwiek,
Capt. Barrett, Mr. Grove, Mr. Fox (chief officer of
the Oriental steamer), Lieut. Fitzgerald, Lieut.
Johnson, Miss Spedding, Capt. Darby, &c. On
freight she has £1,760 in specie, 2,376 bales of silk,
63 bales of elephants' teeth, 237 bales of gum, 137
bales of flax, and 230 bales of general merchandise.
At Alexandria were H.M.'s ships Perseverance
and Urgent, with troops for India, and Medina ;
the screw steamer Jura, with the 48th Regiment,
for India'; the British screw steamer Palestine,
the French steamship Meander, the Turkish steam-
ship Malakhoff, and the usual Egyptian fleet.
The Peninsular and Oriental Company's steam-
ships Euxine and Panther were at Malta.
On the night of, the 26th ult. a very heavy
thunderstorm broke )oyer the Rock of Gibraltar,
commencing about midnight and lasting till three
a.m. The lightning was incessant, and the rain
poured in a continuous torrent between three and
four inches of water having fallen in the same num-
ber of hours. Considerable damage was done in the
upper part of the town, and lanes and passages
blocked up by the shingle, earth, and fragments of
rock brought down the mountain gulleys. The
roads in many parts of the Rock were much cut
up, and some trees blown down at the South and
in the Alameda. The storm came on with a south-
east gale. Many houses in the town were inun-
dated, but in all cases their inhabitants succeeded
in either turning off the water or placing them-
selves in security from its invasion.
In the bay, a French brig named Blascon, from
Ibrail and Constantinople, with maize for Gibraltar,
while in the act of tacking grounded on the oppo-
site coast, off Campo. The steam tug Orient went
to her assistance early in the morning, and suc-
ceeded in getting her afloat.
At Catalan Bay, where a detachment of the 25th
(King's Own Borderers) is stationed, the heavy fall
of ram, and the sand washed down from the moun-
tain, drove the men from their quarters to seek
shelter in some houses occupied by fishermen. The
communication -with that village was obstructed in
the morning by the sand and stones which rolled
down the side of the rock during the night.
The French polacca brig Hyppolite, in ballast
from Tetuan, at about a quarter to nine o'clock on
the morning of the 27th was capsized in Gibraltar
Bay by a whirlwind, when she filled and went down
in a few minutes. The moment it was observed
from the Upper Signal Station the alarm gun was
fired and a signal hoisted. Boats from the French
screw ship of the line Redoutable, Capt. Morlaix,
were despatched to the spot, and happily arrived
in time to save five of the crew ; the captain
(Labautier) and one man were drowned. The
Royal Yacht Squadron steamer Airedale, belong-
ing to the Earl of Cardigan, who was on board,
likewise steamed to the spot to render assistance,'
when she towed the boats back to the bay with the
survivors, who were put on board the liner, and
they were landed on the afternoon of the 28th.
The Hyppolite had been driven, through stress of
weather, from off Tetuan, where she had discharged
a cargo of wheat. After the vessel went down all
her crew were struggling in the sea, except one
sailor, who, as he was never seen in the water, was
supposed to have gone down with the ship. The
ship's' dog was observed to cling to the master, and
this incident was believed by the crew to be the
cause of Captain Labautier not being able to save
himself. The survivors were liberally supplied
with elothing,,&c., by the French Consul, who also
provided them -with a passage in the Reloutable.
which sailed for Toulon at 10 a. m. on the 22th.
On the .mornipg of the 29th, at,,2 o'clock, the
brig Diana, of Hartlepool, P. IL Bartols master,
from Marseilles, with a cargo of wheat, bound to
Falmouth, was driven on the rocks off Cabrita
Point, and sank four hours afterwards. The crew,
eight in number, saved themselves in their own
boat, and were taken to Gibraltar by the barque
Quickstep. The master has arrived at Southamp-
ton by the Salsette.
A Spanish schooner grounded off the Green
Island shortly before 1 o'clock on the 28th, when
the. Upper Signal Station fired an alarm gun, and
the Orient steamtug was under way immediately to
offer her services ; but the schooner was got oft' by
the assistance of boats from Algesiras just before
the tug arrived at the spot.
The American brigantine Ida, Captain D.
Rodgers, which put in at Gibraltar from Boston,
had lost sails, yards, &c., and would have to be re-
paired before proceeding to Smyrna.
The Peninsular and Oriental Company s steam-
ship Indus, Captain J. Weeks, arrived in the bay
at 7 30 a.m. on the 26th, in six days from South-
ampton, having experienced very rough weather,
and had a boat and phrt of a paddlewheel
washed away on the passage out. She resumed
her voyage at 2 30 p.m. on the same day, having
taken in a quantity of coals, provisions, and mails,
including the Spanish Government Mail for
Manilla.
The screw steamer Malta, belonging to the
same company, with the Bombay mails, arrived at
Gibraltar on the 29th, in four days from South-
ampton, and proceeded the same night for Malta
and Alexandria.
The British merchant steamers Cairo, Capt. W.
Leighton, eight days from Liverpool, with a gene-
ral cargo for Malta and Alexandria, and the Trou-
master, Captain H. Parkman, .11 days from Mid-
dlesborough, in ballast, for Patras, arrived at Gib-
raltar on the 27th.
In lat. 27 20 N., long. 4 13 E., on the 30th ult.,
the Salsette spoke the screw-steamer Taurus.

FORMATION OF A RAILWAY COM-
PANIES' ASSOCIATION.

At a meeting of dire ctors and other representa-
tives of railway companies, held yesterday, at the
Euston Hotel, H. S. Thompson Esq. (Chairman of
the North Eastern Railway Company), in the
chair •, the following companies were thus repre-
sented :
London and North-Western: The Marquis of
Chandos, chairman ; Admiral Moorsom, deputy-
chairman ' • Mr. Tootal, Mr. Stewart. Midland : Mr.
Beale, chairman ; Mr. Hutchinson, deputy-chair-
man ' • Mr. Ellis, Mr. Newcombe. North-Eastern :
Mr. Thompson, chairman ; Mr. Leeman, deputy-
chairman.' Lancashire and Yorkshire : Ir. Wick-
ham, chairman ; the Mayor of Liverpool, Mr. Wil-
son, Mr. Hargreave. tireat Western : The Hon.
F. Ponsonby, chairman ; Mr. Williams. East Lan-
cashire : Mr. Dugdale, chairman •, Mr. Riley, de-
puty-chairman; Mr. Blacklock. Manchester, Shef-
field, and Lincolnshire : Mr. Gamble, Mr. Lee, Mr.
Watkin, Mr. Hutton. North British : Mr. Hodg-
son, chairman ; Mr. Rowbotham. Lancaster and
Carlisle : Mr. H. Howard, deputy-chairman • Col.
Maclean. Glasgow and South-Western : gir A.
Orr, chairman. Oxford, Worcester, and Wolver-
hampton : Mr. Fenton, chairman. Stockton and
Darlington: Mr. Meynell, chairman. Shrewsbury
and Hereford : Mr. Williams. Birkenhead : Mr.
Salisbury, M.P., chairman ; Mr. Townsend, Mr.
Petitjean, Mr. Mason. Carlisle and Silloth : Mr.
Irving. West Hartlepool: Mr. It. W. Jackson,
chairman. Warrington and Stockport : Mr. Fos-
berry. Edinburgh, Perth, and Dundee : Mr. H.
Lees. Port Carlisle : Mr. Heysham. Edinburgh
and Glasgow : Mr. Ewing.
After a lengthened discussion it was unani-
mously resolved :
"1. That it is desirable to give a more perma-
nent organisation to the present conference of dele-
gates, and that an association be now formed, to be
called the Railway Companies' Association.' "
" 2. That a committee be now appointed to draw
up rules and regulations and define the objects of
the association, viz. :—The Marquis of Chandos, Sir
A. Orr, Mr. Thompson, Mr. Beale, Mr. Ponsonby,
Mr. Wilson, Mr. Leeman, Mr. Watkin."
" 3. That the first meeting of the association be
held at the Railway Clearing House, on Thursday
morning, the 4th Nov., at half-past ten o'clock."
" 4. That the thanks of the meeting be given to
the chairman."

IMPORTS OF CATTLE.—The following foreign
cattle were imported into Hull in the week ending the 16th
ult.:—From Amsterdam, 9 cows, 27 calves, 24 lambs, and
12 rigs a from Rotterdam, 195 oxen, 35 cows, 54 calves, and
7pp total, 195 oxen, 44 cows, 81 calves, and 19 pigs,

TELEGRAPHIC CABLES.

Charles E. Oldershaw, Major Royal Artillery,
A.D.C., late Director of British Telegraphs at
Varna, writes as follows:

`‘ The subject of Atlantic cables being now one of
great interest with the public, as evidenced by the
considerable portion of your valuable space devoted
to it, I am induced to trespass upon you in conse-
quence of reading the letter of Mr. Rowett in your
Impression of Saturday last.
" Having been for 14 months in charge of the
Black Sea telegraphs for Government, I have had
considerable- experience in the working of deep sea
lines, and was led to examine particularly into the
construction of cables, and arrived at the conclusion
that heavy wires were.by no means calculated for
deep waters, for the simple reason that in the event
of leakage occurring they could not possibly be
underrun.

" The cable laid between Varna and. the Crimea
was simply a single copper wire insulated by
gutta-percha, the termini at both ends being pro-
tected by galvanised iron wire, while that con-
necting Varna with Constantinople was from end
to end covered with the galvanised item: wire. The
manipulating power of the two cables respectively,
as indicated by Morse's instruments,. was as 32 to
15 words per minute, being.l7 words in favour of
the former, evidently showing that the thin wire
was approaching to the correct principle, as its
absorbance of the saline- particles was unimpeded,
and therefore its conducting powers increased. I
have little doubt but • that the thin cable above
alluded to, imperfect as it was, would have lasted
much longer than the, seven monthS which it did,
had it-not been connected with heavy wire, which,
offering an unequal resistance to the friction of the
waves, broke at the junction of the strong and
light cables. -With this
.experience before me I
came to the conclusion that the principle 'of light
cables was the right one. for deep waters, and
matured a plan which I some time ago laid before
the Government, and have subsequently patented.
The cable I propose is constructed as follows :
One or more conducting wires covered with gutta-
percha or vulcanised indiarubber, then a layer of
compressed cork bound round with hemp, properly
prepared with a' protecting solution. The propor-
tions of these materials are such as to render the
cable sufficiently buoyant to remain at a constant
depth of between 100 feet and 200 feet below the
surface, bringing it thoroughly under control. I
also propose covering the ends of the cable on each
shore with an iron tubular duct of sufficient length
to, protect it from the shore wave and the chafing
effects of the coast currents.

" The superiority of this construction over that
described by Mr. Rowett must be evident, as his
cable once paid out would sink to such a depth that
would render it impossible to under-run it without
fracture. I might perhaps give a better idea of
my invention by enumerating a few of its advan-
tages over every other cable that has yet been
used :

" 1. The expense of manufacture would be far
less than the present cable.
"2. From its buoyancy there would be little or
no strain, and therefore the paying•out apparatus
would not be required, and one vessel might lay
two lines at the same time.

" 3. As there would be but a smalrpressure of
water upon it, and as the insulating properties of
the gutta percha would be aided by that of the
cork, there would be no liability to leakage.
" 4. Should any damage occur the cable could be
easily under-run and faults detected and repaired,
and if ruptured altogether could be brought to
shore with facility, thereby obviating the immense
loss of property ensuing from a similar mishap in
the present cable.
"5. The line could be laid from any point in
Europe to any point in America, irrespective of
natural banks, so that the dangerous region of ice-
bergs may be avoided, which would be fatal to even
the strongest-made cables.
6. The operation of laying could be carried on in
any weather.
" In my report to Government:on forwarding my
plan nearly three months ago, I expressed an opt-
nion that the Atlantic cable would not succeed, and
foretold that if it were even laid the heavy strain
during the paying-out, and consequent on sinking
it to the bottom, would render it liable to con-
stant leakage."

TIIE RATE OF INTEREST AND THE
CURRENCY.

" A Country Banker" writes to the Times as
follows :—.
" While the country is slowly recovering from
the effects of one of the severest monetary panics
within the memory of living men—a -panic having
its origin in a great measure in a redundant cur-
rency and low rates of interest—it is a question
which demands the gravest deliberation whether
the present rate of discount at the Bank of England
should be further reduced. _

" The rate is now 3 per cent., and in the open
market it is even lower, surely a moderate rate for
all legitimate purposes of commerce. Can any pos-
sible good arise by reducing it further ? We may
by this means certainly place the schemer and the
speculator on a nearer equality than they now are
with men of capital, if that be desirable. We may
thus foster excessive trading, and drive prices up
beyond their proper level, until we check exports,
turn the exchanges against us, lose our bullion,
and end a few years hence, as usual, in a general
crash and a money panic ; but it would be aiffieult
to show what other results ever have flown or ever
can flow from an excessive circulation, and a reduc-
tion in the rate of discount below the rate of inte-
rest on Consols.
" From 1848 to 1853 we gave ourselves the full
advantages of cheap money. The bank rate was
reduced to 21, and for six months in succession
to even 2 per cent., and we " sowed the wind" in
universal expansion. In November last we reaped
the whirlwind, the force and fry of which were
but faintly indicated by the ascent of the minimum
rate to 10 per cent., on the principle that, in mone-
tary as in other affairs, extremes beget extremes.
Would it be too much to affirm that if the rate had
never gone below 3 per cent. it would never have
risen so high as 10 ?
"It is urged, however, that the directors of the
Bank of England should employ their funds like
any other bank, that is, simply to the best advan-
tage of their proprietors, and without troubling
their minds at all about the advantage of the coun-
try, all responsibility in that direction having been
taken off them by the self-acting machinery of the
issue department.
" But it is at least a point open to discussion whe-
ther a reduction in the present minimum-rate of in-
terest would benefit the proprietors. The discounts
and advances now stand at £15,000,000, and, at 3
per cent., contribute of course £150,000 to the gross
annual revenue of the Bank. To produce an equal
amount of contribution at 21 per cent, the discounts
would have to be increased to £18,000,000 ; and if
the reduction is to 2 per cent. the discounts must be
increased to £22,500,000. To obtain a return at 2 per
cent. equivalent to the present, therefore, the Bank
must increase its discounts 50 per cent., and, by
consequence, its risk of loss to a like extent.
" Neither is it certain that by a reduction in the
rate the Bank would command the required increase
of discounts. It can hardly hope to derive the in-
crease by an abstraction of business from discount
houses or the London joint-stock banks; because
the very day the Bank rate is reduced to 21 they
will, no doubt, as heretofore, reduce theirs to 21,
and if the Bank should boldly drop the rate to 2,
they, with an equal daring, will drop theirs to 11.
" The requiredincrease of discount business, there-
fore, if it come at all, must come from an enormous
increase of those commercial operations out of which
discount transactions arise ; but this must neces-
sarily be a work of time ; and, on the whole, the
probabilities would seem to favour the assumption
that, under existing circumstances, the holders of
Bank stock would rather lose than gain by a reduc-
tion of the present rate.
"And now, as regards the larger question—the
operation of the issue department. The act of 1844
wisely made provision that the note circulation
should not under any circumstances fall below a
certain level, but it placed no limit whatever on the
amount to which the note circulation might be ex-
tended. The Bank, in fact, is bound by the act to
issue notes in exchange for bullion to any con-
ceivable amount. This is one of the features of the
act which requires reconsideration. It is the weak
point of the act, the flaw to which it would be easy
to trace the source of any evils which thus far
have sprung directly from the operation of the
measure. If it be right on principle to prescribe
a minimum for our note issues, surely it cannot be
wrong on principle to provide a maximum as well,
seeing that there is as much danger in excess as in
scarcity—the one, indeed, being the parent of the
otheperiod of a sufficient currency is supposed,
"Ther.
by those very competent to judge, to be attained
when there are some £20,000,000 of notes in the
hands of the public, and some £8,000,000 o f
notes