The Sun.
London, England, 1832-09-08 00:00:00

ciat ion :

" How were we paid for our goods during the Bank
restriction, when we did not require gold ?—The Bank
paper was exactly like money, and exchanges on Amster-
dam went down at last to eight guilders, and it is now at
twelve guilders ; the exchange was against this country 32
per cent.
" Did not that arise from an excPss of circulation ?
No; it arose from the great expenditure by the armies of
this country, and likewise there were subsidies paid to
foreign Powers.
" Was it not owing to our foreign expenditure for war-
like and other purposes upon the Continent that our
paper was so much depreciated ?—Certainly ; you had
A great many payments to make upon the Continent.
" Then your opinion is, that it was not from excess
of paper, but from foreign expenditure, that our paper,
compares with the gold, was so much at a discount ?
_-Yes.
" What is the meaning of excess of piper in this coun-
try—how do you determine the excess of paper ?—I have
not said excess of paper.'"
An Evening Contemporary (the Standard)
has a most amusing comment on this part of Mr.
Rothschild's evidence
A paper currency, then, without a lavish expendi-
ture by the Government, has no tendency, in the opinion
of Mr. Rothschild, to a depreciation. But we may refer
to another answer of this most intelligent and experienced
gentleman, in order to discover another principle of appa-
rent depredation of the paper currency, which came in to
aid the actual depreciation produced by lavish expenditure
—we mean the demand for gold—that demand which Mr.
Rothschild has told us is always occasioned by a war, and
which must have been exorbitant during the almost uni-
versal war coincident with the Bank restriction. It was
not in comparison with paper money alone, that gold was
enhanced in value 30 years ago ; its price was, by the ex-
traordinary demand which war occasioned, extravagantly
enhanced, whether in relation to labour, to food, to
goods ; in short, to whatever men use. Though there
was some awkwardness in the expression, there was still
some truth in the resolution of one of the Finance or
Bullion Committees, that the pound note retained its
value in relation to all the commodities of life, though
eight or nine shillings were deemed necessary to raise
this pound note to the value of a golden guinea. It was
the value of the guinea that was exaggerated, not the value
of the note that was impaired to the apparent extent,
though, by the lavish expenditure of which we have already
spoken, the paper currency was, no doubt, to some degree
depreciated."
The value of the guinea was only exaggerated,
not the pound note depreciated I Then it was
pure accident, we suppose, that doubled the rent
of farms, doubled the price of estates, and raised
the wages of labour. A paper currency without
alavish foreign expenditure by the G overn ment,has
no tendency to a depreciation. Then the country
gentlemen, whose mortgages have swallowed their
estates, whose rents have fallen, and other
debtors, had no reason to complain of the opera-
tion of Peel's Bill ; where there was no depre-
ciation, there can be no appreciation. When
the American mines were discovered, the abun-
dant supply of the precious metals lowered their
value as measured by other commodities. This
effect was so palpable, that it did not escape
even the story-tellers of the period. Thus,
for instance, in the "Tales of Eutrapel," pub-
lished about the middle of the sixteenth century,
a speaker, comparing old and new times, says,
‘: For in the time of Lupolde, what cost 100 sous,
is now worth 10 livres, which is on account of
the countries newly found, and the gold and sil-
ver which the Spaniards and Portuguese bring
from thence, ant} which flow into this perpetual

mine of France for corn arra merchandize, which
'thes_cannot do without." When it is said that
a paper currency has no tendency to a depre-
ciation without the lavish expenditure of the
Government, this is about the same thing as
saying, the discovery of new mines has not a ten-
dency to depreciate gold and silver. All depends
on the quantities. If the paper issued is con-
vertible, it will not be in excess, for the best of
all reasons, that gold will be demanded for it
when it begins to depreciate ; but if it is not
convertible, then the tendency to depreciation will
depend upon the quantity issued. The Bank
may then issue twenty millions, forty millions,
or sixty millions, and the prices of all commodi-
ties will be indicated by a corresponding rise, as
compared with the paper. The foreign trade of
the country, however, might be in nowise af-
fected by the depreciation. Foreigners, of
course, would pay no regard to our currency in
their dealings with us. Mr. Rothschild has some
very strange, we should say inconsistent notions
respecting the theory of exchanges :
" From the evidence you have given, is it your opinion
that the Bank of England, in looking at the foreign ex-
changes as the guide of their issues, act upon a princi-
ple that is correct with regard to their own safety, and a
principle that is useful with regard to the public ?—For
his own safety, every man has a right to take care of him-
self ; but with regard to making money scarce, I do not
think that we have occasion to be afraid, because, if gold
is wanted to send abroad, they may make money as scarce
as they like; it will go, because for what reason is gold
wanted? Gold is wanted if there there is a war; and in
that case the Emperor of Russia, or the King of Prussia,
or any other Government, will give two or three per
cent. more or less for the gold, because they must have
it. When the Emperor of Russia made war in Poland
lately, gold, which went from Hamburgh to Petersburgh
and Warsiw, was paying from three to four and five per
cent profit; if five per cent, will not pay it, ten per cent.
will be given. * * • * •
" Your opinion is, that the Bank of England, in at-
tempting to regulate the exchanges, have not the power of
doing so ?—The Bank of England has great power if they
do not care to sacrifice money; if the Bank of England
wish to make mosey very scarce for a time, they have it
in their power to do so; but the exchanges cannot be
guided by any body unless circumstances favour it. If
there is a war, and the foreign governments want specie,
they must have it. I remember France made a loan at
50, and new they want to make a loan at 90. If any
government wants gold, it does not care about any price
for it if it can only get it. So that, upon that prin-
ciple, the Rank has great power to guide the exchanges in
peace time and in quiet times by making money very
scarce, but in the regular way it is not possible that any
body can guide the exchanges.
" Does not a Foreign Government want gold only to
pay it away ?—Yes.
" When it has paid it away, will it not soon come
back ?—lt ekes not return so soon in war time.

" In the case of the war between Russia and Turkey,
how soon wss the effect produced upon foreign exchanges
by t.king gold for the payment of the armies counteracted ;
and how soon did the gold come back and operate in a
contrary direction ?—lt is impossible to fix when it came
back, and how ; it depends upon the demand for your
produce; if those people have a demand for your produce,
and have no bills upon England, they are obliged to col-
lect the gold and send it back again ; but in case they have
no demand for our produce, the gold is distributed over the
world, and does not come back again so easily."
He seems to think that the Governments
which are in want of gold will have it, and that
the Bank have no means of preventing the ex-
portation. Slaughtering of goods, according to
him, has no effect in restoring the balance; for
if you make your goods cheap they will not sell.
His evidence on this subject is most original.

" Will not the Bank contracting their issues tend to
turn the exchanges in our favour ?—Nut always, it may
be for a time ; but it is not possible that the exchanges
be kept down or kept up unless the real trade goes along
with it.

" Will not the exchanges be generally in our favour as
long as commodities are che,p in this country?—lt does
not depend altogether upon this country's commodities—
it depends upon the general trade.
" Do you think that lowness of price, which is caused
by a contraction of issues, makes any great difference in
the foreign demand for our manufactures ?—No, I do not
think so; but the reason is, that a great many people
abroad are deterred from purchasing, because they do not
know to what value the produce or the manufactured goods

may rise.
" Will not the export of goods be greater under low
prices, than it will be under high prices ?—You will ex-
port a great deal of goods,—you will sell two pieces for
one.

" Is not that increased demand from abroad in conse-
quence of the cheapness of price here, the mode in which
the exchanges turn anti are rectified ?—The exportation
may be more from the Custotn.house, but I du not think
the consumption will be increased ; if goods are too cheap
they will not sell so wel."
With all deference to Mr. Rothschild, this
is sheer nonsense. The Bank, by limiting their
issues, can always turn the exchanges in our
favour. The effect, however, on our manufac-
turers, may be most disastrous. The producer of
commodities must sell ; and when the issues are
narrowed, he must sell at a sacrifice. One part
of Mr. Rothschild's evidence is deserving of
considerable attention. We are the only nation
that have a gold circulation ; and in war the bel-
ligerents require gold in preference to silver, and,
as Mr. Rothschild says, " do not care for the
price ; if they want it, they will give any price
for it, being more portable." Our circulation
is, therefore, more liable to be deranged than if
our standard were silver. Mr. Rothschild sup-
poses that the wants of this country have raised
the value of gold in the markets of the world,
while silver has fallen in value. But much more
is made of this than there is any occasion for.
The relations of gold and silver to each other,
are indicated by the market price. Mr. Roths-
child's notions respecting issues are displayed in
the following answer :
" You think the best principle the Bank can adopt is to
issue largely, and to make the currency abundant ?—Yes ;
if this country has money in abundance, it will have all
the trade from the whole world ; and if you wake
money very scarce, the trade will go to other countries."
This to us is utterly incomprehensible. Trade
supposes buyers and sellers. In proportion as
we increase our trade, other countries must in-
crease their's, otherwise we shall trade to disad-
vantage. We cannot sell commodities if we
do not buy commodities. All trade resolves
itself into barter. By issuing largely, the fo-
reign trade of the country can neither be affected
one way or the other, if the Bank be compelled
to pay in specie. If the Bank be compelled to
pay in specie, a large issue will lead to a large
contraction, and a large sacrifice of goods. But
a large issue of unconvertible paper, though it
may not affect our foreign trade, of course affects
contracts. It would take from the creditor and
give to the debtor. It would lower the pressure
of the public burdens, by lowering the salaries
of all public officers, from the Judge to the com-
mon soldier, and by lowering the value of the
debt to the state annuitant. The Standard has
discovered that the Corn Lars secure the country
against a perpetual drain of gold.
" When economists talk of the Corn Laws as opposing
a bar to commercial prosperity, there is one important
di ct of those laws which they overlook—namely, the
restraint of a perpetual drain of gold. It is forgotten that
corn imported must be paid for in gold to the masters of a
population of serfs ; for in nothing else can such sellers,
or their slaves, take payment."
This is sheer nonsense. When we have a
bad harvest and an abundant supply of corn is re-
quired, the ordinary course of trade is deranged.
What Mr. Rothschild says on this subject is
sufficiently intelligible :
" Do you consider the occasional demand for corn in
the country, in large quantities, to be one of the causes
which operate most upon the exchanges ?—Yes ; because
if any person imports corn largely from abroad, be wishes

to bring it to market immediately. Most persons who
deal in corn have Israt-timiged-credit ; they draw their bills
immediately, and sell them without reference to the ex-
change, and that always has an effect.
" Therefore, the demand for corn occurring only occa-
sionally, when it occurs it disturbs the exchanges, and acts
injuriously upon the currency of this country ?—Certainly."
A regular corn trade would be like any other
regular trade—it would occasion no derange-
ment. We purchase wool in large quantities
from the same parties from whom corn is pur-
chased ; but except when particular circumstances
lead to speculation, as in 1824, we hear of no
derangement caused thereby. It is of no earthly
consequence in commerce whether you pay in
specie or in goods--you must sell your goods,
in order to obtain the specie you pay for other
goods. If it is not for your advantage to buy
the goods for which specie is demanded, of ,
course you will not buy them. We thought that
the idea of hedging in the cuckoo had been
abandoned. The great point, we apprehend, is
to have a standard as little liable to change as
possible. The accusation against the Bank is
that it has caused unnecessary fluctuations in
prices, by its subserviency to the Government.
The Bank may be said to be now on its trial,
and the public will carefully peruse the evidence
before pronouncing on it. The subject is of
immense importance. The general persuasion
of the bankers and capitalists of the metropolis
is favourable to the Bank. The public in general,
however, by no means yet share the confidence
of the London bankers. We shall return to
the subject as we proceed with the evidence.—
Morning Chronicle.
Leopold, King of the Belgians, has repeat-
edly declared that he would submit to any sa-
crifice rather than consent to make further con-
cessions to the unreasonable and haughty de-
mands of the Dutch King. He has even
stated that such concessions, on his part, would
be a violation of the oath which he took on
entering into the solemn compact whence he
derives his title as Sovereign of Belgium. Above
all things he announced it to be his fixed de-
termination to insist upon the free navigation of
the Scheldt, the evacuation of the citadel of
Antwerp by the Dutch troops, and the recog-
nition of the cairn to Luxemburg. By such
declarations he appeared in the eyes of the
Belgians a sincere and zealous assertor of their
rights. They soon discovered, indeed, that he
did not bring to the elevated station to which he
had been so suddenly raised any great or shining
qualities—for no splendour of good fortune can
conceal mediocrity of mind ; but, as what the
new State particularly wanted was a man of
honesty and firmness at the head of affairs, who
would oppose to the artifices and machinations
of a set of deceitful and unprincipled diplomatists
and intriguers the broad shield of stubborn inte-
grity, it was no wonder that the apparently in•
trepid determination of Leopold to abide the
worst, rather than lend himself to the design of
the London Conference for the gradual, but
certain, subversion of Belgic independence, made
him very popular with the Belgic people. Whe-
ther his family alliance with the intriguing
Louis Philip has thrown a new light upon his
mind we know not ; but certainly, if what a cor-
respondent of the Messager des Chambres as-
serts be true, he seems resolved to imitate the
example of the King of the French, and to pre-
fer the favour of the "Holy Alliance" to the in-
terests of the country which he rules, and the
honourable estimation of the people. The com-
munication from Belgium inserted in the French
Journal to which we have alluded states " the
difficulties with Holland are drawing to an
end. Leopold has just acceded to all the
propositions of William, such as they were
set forth in the last act of the Confer-
ence. Belgium will not have the free navi-
gation of the Scheldt, but will pay a toll, which
is to be, pro tempore, that which is applicable
to the Rhine. She will not have the right to
open a direct communication with Germany. A
slight reduction on the interest of the debt will
be made to her. Luxemburg will not be given
up to us. These are hard conditions, it is true,
but we shall avoid a war. Ministers are unwil-
ling to make known at present their adhe-
rence, through fear of exasperating the commer-
cial and manufacturing portion of the population
of Belgium ; but, with time, all will become
calm, and Belgium may still flourish by the
advantage she will derive from the fertility of her
soil." This last sentence is written in the spirit
of caustic irony on the future prospects of Bel-
gium, in the event of submitting to such con-
ce,sions ; for if she abandon her claim to a free
navigation of the Scheldt, and the right to open
a direct communication with Germany, she must
give up commerce, and return to the plough. Her
reward for submitting heretofore implicitly to the
dictates of the London Conference will be the ruin
of her trade, the loss of all the rights which the re-
cognition of her independence implied, and the
scorn of the world for so miserable a sequel to the
magniloquent drama of her revolution. The
writer, however, gives the hapless Belgians this
piece of consolatory information in their sor-
rows, that by submitting to all these hard condi-
tions a war will be avoided. Yes, and we may
add that, if Belgium completes the act of self-
humiliation by returning to her allegiance to
the " obstinate" William, a war will still more
certainly be avoided ; but we cannot believe,
badly as we think of the miserable set of poli-
tical tricksters who have the direction of Belgic
affairs, that concessions which nullify the treaty
unconditionally ratified by England, France,
and Belgium, have been resolved upon. It re-
quires better authority to make the thing cre-
dible. If it should happen to be true, the
" madness," as it was called, and " foolish
obstinacy" of the Dutch King, will be richly
rewarded by the attainment of his objects. The
secret understanding with the Powers that
openly pretended to oppose him will then be
apparent, and Dutch loyalty will adore the
wisdom that smote the rising commerce of her
rival.—Morning Herald.

Some time ago an Irishman was convicted of
a felony, and sentenced to death. On the day it was to
be eartitd into effect he received a reprieve, his innocence
having, after his trial, been satisfactorily established. The
poor fellow had a wife, a terrible vixen, who lived at a
distance, and whose presence lie dreaded more than death.
With the hope of accomplishing a final separation, he
wrote to her the day after he received the reprieve, to the
following effect:—" Dear MAKY, I was banged yesterday,
and died like a man; no more at present from your loving
husband, till death does us pa• t."

NAPOLEON AND THE TWELVE ..kPOS-
Tuts.—The Cabinet de Lecture gives the following an.
ecdote of NAPOLEON, without pledging itself for its au-
thenticity— if not so it is at all events very characteristic :
" NAPOLEON having entered one of the cities of Italy, the
churchwardens recommended to him the reliques of their
church. ' Sire, will you deign to take our Apostles under
your protection ?" Your Apostles ! are they of wood ?'
No, Sipe.' Of what are they, then?' Of silver, Sire
—of solid silver.' Solid silver !' replied NAPOLEON
quickly; Yes, I shall help them to fulfil their mission;
it ha, bete ordained that they should go throughout the
world, and they shall.' Having said so, the EMPEROR
sint the twelve Apostles to the Mint at Paris"

POLICE INTELLIGENCE.

GUILDHALL.

Yestet day Alexander Dushant, and Elizabeth his
wife, were brought before Mr. Alderman HEY-
GATE, charged with deserting their child, and leav-
ing it chargeable to the parish of Cripplegate.
Thorne, the assistant overseer, said, that in Sep-
tember last the man deserted his wife and child,
who were then living at Westminster, and they
were passed from thence to Cripplegate; and from
that time till March they were maintained in the
workhouse, at an expense of 9s. per week. The
mother then accepted the situation of nurse at the
Cholera Hospital, but she remained there only a
few days. About this time a man named James
Shires, who was also in the poor-house, with his
family, obtained leave to go out and search for em-
ploy as a stone-mason, and it appeared he imme-
diately took Mrs. Dushant into his keeping, leaving
his own wife and children to be sustained by the
parish at 11s. per week, while the maintenance of
Mrs. Dushant's child cost 4s. 6d. per week
more, and this charge of 15s. 6d. per week
continued till a few weeks ago, when Shires
and Mrs. Dushant quarrelled and separated, and
he went back to his wife, while the female pri-
soner returned and was received by her husband. After
this reconciliation Shires went to Dushant's lodging,
and demanded " his woman," offering to thrash the
husband, and claiming her bonnets and shoes, which
he had paid for. This uproar came to his ears, and
he hail all the parties secured. He now charged
the wife with deserting her child since March last, and
the husband with deserting the child and mother.
Looking at the heavy expense the profligacy of these
parties► had brought upon the parish, already over-
burdened with 400 paupers in the house, and nearly
1,000 out of it, he earnestly entreated the Magis-
trate would severely punish them.

. .
Thy young woman hung down her head in shame
and was mute, but her husband said, in mitigation
of punishment, that he should lose his employment
if he were imprisoned, and that he should never per-
mit his wife or child to be chargeable again if they
would forgive him this time.
Mr. Alderman HEYGArE committed both the pri-
soners to Lard labour for one month.

Shires was next put to the bar, and immediately
pleaded that he could not be punished for desertion,
the parish officers having given him leave to go
away and search for work.
Thorn said the man could not have supposed he
had licence to keep a mistress. He must have felt
that the money with which he kept Mrs. Dushant
ought to have been applied by him to the mainten-
ance of his wife.

Mr. Alderman HEYGATE did not like to dispose
of this case without hearing precisely what was said
to him on leaving the poor-house.
The case wai, therefore, adjourned.
WORSHIP- STREET.

Henry Colwell, a youth of 18, George Colwell,
his brother, aged 17, and Mary Ann Colwetl, aged
23, were brought up finally for examination before
Mr. BROUGHTON, charged with robbing a ready-
furnished lodging in the house of Mrs. Cook, at
Hoxton.

It appeared from Mrs. Cook's statement, that one
of the youths and the female took lodgings in her
house as man and wife, and had been there about a
fortnight, but she was disgusted with their proceed-
ings, for the other prisoner was there also by night,
and they all slept together. She discovered also
that before they had been there a week, they began
to make away with her property, and so she gave
them all into custody.
A number of articles were produced which the
prisoners had pawned, but the pawnbroker could not
tell which of them.
Mr. BROUGHTON asked which of them took the
lodging ?—The female said it was she and her hus-
band.

Mr. BROUGIITON —And pray which of them is the
husband ? Prisoner—This is my husband (touch-
ing the boy Henry).
Mr. BROUGHTON—Are you really married to him ?
She said, yes, they were married at Christ Church,
Newgate-street ; and in reply to another question,
she admitted that the younger brother shared the
same bed.

Glibbery, police sergeant, No. 5, N, knew she was
intimate with both the boys. She first had the
younger for her sweetheart, and afterwards his bro-
ther, whom she now called her husband, but at last
she took them away both together.
The prisoner Henry, being asked the question,
said, he and Mary Ann were married at Christ
Church, and having said so, he wept bitterly; but
whether affected by the apprehension of punishment
or matrimonial reminiscences did not appear.
The prisoners were all convicted of unlawfully
pawning, and fined 505., and in default of payment
committed for one month.
QUEEN-SQUARE.

Yesterday, a venerable-looking man, of rather
respectable appearance, who is turned 80 years of
age, was brought before Mr. GREGORIE, charged
with taking improper liberties with children in Hyde
Park.

The prisoner, on being asked to give his name
and address, said his name was James iffoutree, but
refused to give his address.
Two intelligent little girls, one aged 9 years, and
the other 12, gave their evidence in a very clear and
artless manner, which excited the indignation of
every one present, but which is totally unfit for pub-
lication.

A police constable was examined, and his evidence
ended to confirm the statement of the children.

Mr. GREGORIE asked the prisoner if he wished
to say anything in his defence.
The prisoner replied that the children had sworn
falsely.
Mr. GREGORIE should commit him for three
months to the House of Correction—to hard labour
as a rogue and vagabond.
The prisoner was then removed from the bar,
and was assailed with hootings and execrations by
a number of women on leaving the office.