The Sun.
London, England, 1859-03-18 00:00:00

deed a "strong statement," however inexplicable the data
may be. But we must refer our readers to the address
itself for the explanations or reasons adduced in the sup-
port of such startling promises. We cannot very well
make out whether Sir Archibald approves of paper cur-
rency as opposed to, or auxiliary of metallic, for he appears
to blow hot and cold on the question. But we can gather
from his statements the general proposition that, " a
plentiful currency raises prices," that the suspension of
payment in specie by the Bank of England, by Pitt's Act, in
1797, "gave that increase of currency which enabled us to
carry on the war with France, and brought us through
that terrible struggle. We had imagined that the war was
carried through by borrowing and adding to the national
debt, as we now feel to our cost. Further, we learn, "So
powerful is a paper currency, when issued' in a wise way
(the qualification is necessary), that the little country of
Hungary, when engaged in a contest with the power of
Austria, issued a paper currency of 14 millions sterling, and
it was that which enabled it to maintain the armies that
maintained an equal contest with Austria, and, but for
Russian intervention, would have rendered Hungary inde-
pendent." We would have been happy had such been the
result,though, with due deference, thsagency would have been
due to a different source from the mere issue of a paper cur-
rency. What is the issue of a paper currency by a nation
any more than a trader carrying a bill to his banker to be
cashed ? In both cases, the creditor or party so advancing
looks to the credit or solvency of the party giving the pro-
mise. On that security the value of the document depends;
on no other. There is no royal road to geometry ; as little
is there any magic process by which paper, coming, it may
be, from filthy rags, can be converted into gold, corn, wine,
or any substantial article bearing an exchangeable value.
These are commonplace elementary propositions, and we
would not have stated them had we not found Sir Archibald
putting forth such axioms. "If you increase the currency
too much, afterthe manner of the French with their assignats,
the whole good will be destroyed ; but if you wisely do it in
moderation, an increase of the currency necessarily makes
people happy, while a contraction of the currency neces-
sarily makes them miserable." If for the word " currency"
in the above passage, the words "beef, mutton, and corn"
were substituted, we would adopt it, but not as it stands.
Gold is in itself capital, like houses, lands, flocks, or raw
or manufactured produce. Gold is also selected, along with
silver and paper, for the purposes of currency. Paper
itself is nothing but the interposition of credit. But we
must close, with the expression of regret that, in this in-
stance, we are not more at one with Sir Archibald Alison.
We cannot help it, as we are as much bound as he is to
state our honest impressions, whether they prove erroneous
or otherwise. We cannot, however, take leave without ad-
verting to another statement, among many, which we do
not think will find much favour on our ' Change lam
neither a friend to the Western Bank nor an enemy; but I
think that they were most imprudent and reckless in their
conduct; and this I will say, that the recklessness of the
Western Bank, which created so much misery, was a reck-
lessness forced upon them by the monetary state of Eng-
land." Our simple comment is—Why were not the other
Scotch banks forced into the same slough of despond, seeing
they were subject to the like monetary condition of Eng-
land, be it real or imaginary ?
As to the remedy for those various evils, it is thus given
—" If the gold is taken away, Sir Robert Peel would take
away the notes also, and leave the country without a penny
to pay its debts. Now, my principle is, that when the gold
is taken away, issue more notes, and then we will be able
to get over the crisis." If this issue of notes would enable
as to get over a crisis such as that of November, 1857, it
ought to enable us to do what would be still better, viz.,
prevent us getting into it. With all respect, we believe
the said issue of notes would enable us neither to avoid nor
get over those periods of commercial crisis, which have
their source in undue trade and improvident speculation,
and would occur, as they have already done, independent
altogether of the currency—or whether it was paper, me-
tallic, or a combination, as now exists.