The Sun.
London, England, 1832-09-13 00:00:00

SPIRIT OF TH E PUBLIC JOURNALS.

We had intended yesterday to conclude for
the present any remarks which we had to offer
on the report of the Bank Committee, and are
only now induced to abandon that intention,
iiroin a wish to comply with the request of a cor-
respondent, who is desirous of seeing a short
answer to the currency doctrines of Mr. Att-
wood, of Birmingham, detailed in his evidence,
—which evidence, for the sake of his friends
and disciples, we this day publish entire. The
proper answer, we think, is already given in the
reasoning rejoinders of the Committee itself, by
-which Mr. Attwood was defeated in every posi-
tion which the bank-note manufacturers wished
to take up ; but we have no disinclination to
perform the office of matador to pernicious
opinions, even when it may be alleged by some
that we are " slaying the slain." If Mr. Att-
wood, and those who argue for an increased
circulation of paper, not convertible into specie,
for the purpose of depreciating the currency,
were to confine the object of their proposition
to the payment of the national debt and all
other fixed debts, in a money of less value
than that of the present metallic standard,
however knavish the principle would be,—
however like our yesterday's definition of the
ancient Chinese circulation,—the project would
be as intelligible as a picklock or a pocket-pis-
tol, sometimes employed likewise in forcible
transfers of property. It would be a species of
" equitable adjustment," brought about by spolia-
tion, like that of the gridiron man, though with
less violence. It would, no doubt, diminish the
pecuniary obligations of all debtors,—alter all
contracts in favour of the party who had to pay
money,—alleviate the burden of mortgages,----
and enable the Government to discharge the di-
vidends at the Bank with a much smaller quan-
tity of real national revenue. But when these
parties were plundered,—when this " adjust-
ment" had taken place,—all the magic influence
of the change would cease. No alteration in
the currency could, by possibility, have the least
effect in giving employment to labour,—in sti-
mulating manufacturing industry,—in calling
forth the productive powers of monied capital,—
or in securing to the industrious classes a greater
proportion of the fruits of their toil. As the in-
fluence of the change would necessarily be gene-
ral, affecting all commodities alike, labour in-
cluded, it is evident to demonstration that it
could not alter their relation to each other, and
could produce no result whatever, for the better,
to any class of the community. Though every
man who has a sovereign in his pocket to-day
were to waken with two in his pocket to-morrow,
all other things remaining the same, it is plain
that the relations of the commodities to each
other would not be altered by the mere additional
quantity of the money by which they are repre-
sented, and that the only effect would be a nomi-
nal rise in the price of all, proportionate to the
fall in the value of the doubled pieces of gold.
To make this truth manifest, even to the capa-
city of the meanest of Mr. Attwood's currency
disciples, we beg their attention to the following
obvious and undeniable remarks. A certain
portion of the wealth, capital, or property of
every nation is necessarily employed in circulat-
mg all its other exchangeable commodities. The
articles of value employed for this purpose are
generally the precious metals. The portion of
them necessary for this office is no fixed or de-
finite quantity ; but it could not be permanently
enlarged or diminished (all other things remain-
ing the same) without a proportional rise or
fall of prices. It varies in different countries,
and in the same countries at different times, ac-
cording to the extent of their population and
wealth,—the activity of their trade,—the number
of their exchange transactions,—and their more
abridged or more cumbrous modes of business. In
the United States of America about 14,000,0001.
or 15,000,000/. of currency only are requisite for
executing all the money transactions of the Union.
In the immense empire of Russia, with a popu-
lation of 60,000,000 of inhabitants, about
25,000,000/. can circulate all the property which
changes hands, or answer all the pecuniary
transactions of the people. In France more
than 80,000,0001. are demanded for the same
service, and in England probably about
70,000,000/. We include, in all the cases above-
mentioned, both coin and paper, measured by
the standard of coin. Now this portion of the
national wealth, set aside for circulating the rest,
according to the value of the precious metals in
the markets of the world at the time—whether
it consists of specie, or is represented by paper
engagements to pay in specie—cannot be in-
creased or diminished beneficially unless by a
corresponding increase or diminution of the pe-
cuniary transactions which it is employed to
effect. If the currency thus created consists of
gold and silver, whatever excess is coined beyond
this necessary supply is melted down or ex-
ported. If it consists of paper convertible into
gold or silver, the excess of the paper is
returned upon its issuers for gold and silver,
which are in like manner exported, horded,
or converted into plate. If, in fine, it consists
of paper not convertible into gold or silver, and
therefore neither of use for export nor home
consumption, the excess, not being able to
escape from the circulation, depreciates the whole
currency to the amount of its own superabund-
ance. This excess, therefore; can have no
other effect than to derange existing contracts.
It can never stimulate industry, nor improve
wages, except in the course of the transition,
or before the public become aware of its effect.
It might, as in the bubble year of 1824, excite
to unreasonable enterprises, at first transferred
property from on hand to another, but
which could not, by their very nature, suc-
ceed longer than the arrival of the day of reckon-
ing, and only added a nominal value to the land
and labour of the country,without increasing the
reward of the latter or the products of the for-
mer. Mr. Attwood and his school of politi•
cians, if they have any meaning at all (of which
some of them are, no doubt, perfectly innocent),
propose to issue paper-money in such quantities
as to depreciate its value by its excess, or, in
other words, till the promise to pay their notes
in coin becomes a fraud and a falsehood. This
must be their intention, or their clamour would
be absurd, as they can now put forth as much
paper as they choose, under the obligation to pay
it in specie. Their cry, therefore, is—" Give
us more Bank-notes. If the people should be
so infatuated as not to prefer these notes to gold,
and should demand sovereigns in exchange for
paper, then let us have a restriction act. At
any rate, for God's sake, give us more Bank-
notes." A restriction act is the principle,
and certainly would soon be the result, of their
scheme. How abundance of money got from
this source, and kept afloat by this means,
can benefit any class of persons but those
who want to pay their debts with moonshine,
it would puzzle greater ingenuity than that of
Mr. Attwood to show. His beau ideal of paper-
money must be the paper ruble of Russia,