The Sun.
London, England, 1857-12-02 00:00:00

MONEY IS POWER.

[FROM A wortrseromuostrr.]

Believing that you devote your paper to that which is
jest and right, I again seek, through your organ, to
make a few remarks, finding that the currency is a sub-
ject that interests you. In Th,e Sun of the 24th ultimo,
you advocate the " issue of small notes of 1/. as a legal
tender, receivable in payment of every tax and duty." I
consider the time bas now arrived when the nation,
through the Government, must urge the adoption of
something of the kind ; but we must congratulate our-
selves that this issue is withheld until some plan can be
suggested that shall be unconnected with the Bank of
England as controller of this issue. To have thrown
twenty millions of issue, in addition to the present, into
that power which has already become too unwieldy,
would have been productive of greater monetary oppres-
sion than we now witness after a few years had elapsed.

No more issue must be allowed to the Bank of Eng-
land than they already possess ;—their excessive capital
and command of the circulating medium renders them
defiant and ungovernable. Our Iron Duke that van-
quished the greatest conqueror of the day was not only
mastered by this strategical board of money plotters, but
was compelled to beat an ignoble retreat from the
pinnacle of power which he held as the first minister of
his day.
A convertibility of an issue is necessary, but not
always the convertibility of gold is essential, the bul-
lionists ever associate convertibility with gold, and they
would have us ignore the great fact that some value was
given for that gold ; there was something antecedent to
the adoption of gold as a standard, which obtained or
purchased gold ; let us never forget that without that
something prior to the gold standard itself, gold would
have no value. The equivalent is first given before the
gold is produced. What is that equivalent Why,
Ton, that vulgar word, toil—labour—work. So falsely
refined have the cunning traffickers in gold become,
that they despise the base degrees by which they did
ascend, and assert that gold is more important than the
means which produced it ; and so it is, but only to the
perverted polluter of its original purpose. Gold was the
standard of value of what? Of all industrial produce,
instead of what it now is, the standard of value of all
able trielebtere, deep-headed plotters, idle, unproductive
feeders upon the worthy confiding sons of toil.
Now, since that which preceded gold (taking gold as
a standard of value because of its less variability of
supply) was toil, where can there be danger in having
another representation of the same, which has been fairly
measured and exacted, in the shape of Government taxes
and duties ? The absolute antecedent itself, with the
whole nation as a guarantee for its convertibility into,
not gold, but into the taxes which everyone has to pay,
Government receiving it as legal tender instead of gold
or bank paper.
No better name can be given for this issue than that of
Exchequer Notes.
Exchequer bills would no longer be necessary, because
Govorumout issuing one-fourth of the collections of taxes
which amount in round figures to, say SU millions, would
no longer be under an obligation to the Bank of Eng-
land in getting advances upon Exchequer bills ; the Go-
vernment could then throw off the menacing position
which every government is placed in which receives ad-
vaaceis from a bank. Holding 20 millions of the currency
back for the 20 millions of issue, the ruling power would
be free to check the unfair promoters of speculation that
are now defiant. ,
The opponents of this system will endeavour to
associate exchequer notes with the French assignats,
but they will be found on investigation to bear no
analogy whatever. Assignants deprecia,ted because of
the constant dynastic changes. that were taking place in
France : revolutions that were so frequently taking
place, and altogether, because of the instability of the
French governments. But England is in no fear of a
change of dynasty ; she has no revolutions, and is the
most stable government in the whole world. The bank
might tiy in vain to bring the exchequer notes to a dis-
count, but' no gold oonvertibility" would frustrate their
every attempt ; the absolute labour and tax convertibility
would show a bold front against its bulliouist
opponents. -
The sordid practices of the great bankers of England,
which are now identical with the Bank of England,
have rendered such a step indispensable. Their one
mode of checking the speculation they themselves
induced, by means of high rates of discount, is a glaring
injustice ; as well might our judges-of the latid, because
one man has committed a capital offence, condemn the
whole nation to be hung, as that the Bank of England
should punish by high discounts every honest man for
the over-speculation of some. Another mode of check-
ing the accommodation paper can be adopted ; pass a
law that every man requiring accommodation shall make
a declaration of all his property, a registration of which
would be the guida to every man what his paper is
worth ; make a false declaration penal, and limit the
extent of the advances and the rate of interest upon the
declared property by law.
Some plan of this or some other invention could be
adopted, were it profitable to the Bank ; but no such
plan will they adopt, because it would not work up such
profit as the present corrupt system of making all pay—
hanging all for one, is the lucrative plan of Thread-
needle-street. At the same time they exercise a sem-
blance of prudence and put on the screw, simultaneously
do they find the money-making process doubled to
themselves, but halved to the merchants, if not quar-
tered ; this process has only to be continued long enough
and the banker must become all-powerful, because rich ;
the merchant must become all-pewerless, because poor.
It cettainly must be seen that we want the usury laws
again to step this career of defective practices ; the
absence of the usury laws has had the very opposite
effect to what it was assigned. Its absence has unde-
niably promoted speculation, because it has given the
bankers a double motive for inducing speculation, first,
because the greater the speculation, the higher the rate
of interest becomes ; secondly, the rate of interest,
though high, when a panic ensues can be made still
higher ; prudentially bearing with it the act of
caution concurrent with the act of profit. Limit the
rate of interest to 5. per cent., and you do away
with the first, i.e., the `greater the speculation then, no
higher rates of interest would be allowed ; secondly,
because the rate of interest could not then be made high
by a panic. Lessen the inducement for the frequent
use of the screw which has characterised the Bauk of
England since they succeeded in removing the usury
laws.
It will be said by my opponents that other nations
contributed to bring about the present panic, and it was
inevitable and imperative on the part of the Bank of
England to raise discounts. America, France, and the
Indian war combined, rendered it unavoidable. I
admit the fact, bat of the mode of dealing with the fact
I disapprove. Had the same combined circumstances
taken place, and were the maximum rate limited to 5 per ,
cent., the loss to the commercial world would have
been far less, and the profits to the banks far less ;
but beyond all, Jonathan would never have had
rope enough to hang himself up in the way he has, had
it been 5 per cent, maximum ever since 1847, nor
would the banks of France found it practicahle
to have combined with the Bank of England to act
in concert in rates of interest ; a combination that
presents a new feature of danger. Nor could India
have made an offer of 6 per cent., to induce so large a
loan, had the law been 5 per cent. ; hence the excessive
drain of bullion ran in Nrt be traced to its primary
cause, 1,. e., high rates. Another cause, of course, can
he assigned, that commerce having increased to such an
extent, our exporis showing front 110 to 120 millions,
instead of 60 millions a little time age, must require a
greater circulating medium, bearing some pro
portion to its increase, which we have not had,
which has driven, nolens volens, the houses of com-
merce to havo recourse to some kind of fic!itious ex
tension pro tent., all of which has benefited one class of
traders, the bankers, at the expense of all else, becaus;
of unlimited interests enabling all money-lenders
profit by the defects in the law. 1 deny in tote
mott
justice of making high rates of interest a
of checking speculation, just as
hanging all the country for the murder
any s.audard of value. Gold was chosen because at its
I also consider it unjust to destroy the invariability of
Wool, wheat, cotton, and silk
less vanish lily of value.
fluctuate in supply, and in one year are worth double the
price of another year ; not so evi,n gold.
I deny o f some.
properE
at l the right of
All the sup-
s of Peru, California, and Australia have not even plie

supplied the demand, much lass caused a fluctuation o
supply so as to depreciate its value. Hence, it was,
and is, the best commodity fcr a standard of value ; be'
cause it represents the value of labour in obtaining it
more steadily than anything' else ; it measures toil
more evenly, because toil is more even in its application
to obtain it. But what was the Government about when
they did their worst by countenancing a tendency in the.
very measure of value itself ? Byremoving the usury law°
they make gold sometimes worth 5 per cent. sousetinsee
20 per cent., giving it a fluctuation in value immediately,
and thereby depriving it of its invariability. The advan-
tage of weights and measures of 16 ounces to the lb. or 4
pecks to the bushel is, that no one can dispute the statute,
or compact, because it is fixed. The advantage of gold
as a measure of value was equally, that no one can dis-
pute its compact because of its fixity of value, but de-.
stroying that fixity was tantamount to giving 13 ounces.
for a lb, or three pecks to the bushel, according to the
caprice of the great holders of the produce:
It will be said that every thing fluctuates in value, why
should not gold ? I answer that simply because gold is
made a measure of value, and any alteration in the
measure itself interferes with the compact, and causes
great risk in purchase ; for instance, a merchant buys a
hundred or a thousand casks of tallow, say at 60/. Per
ton, to be delivered in London at a given time : when the
tallow arrives, say in six months afterwards, the money
by which the purchase was made has undergone a great
change, and instead of being worth 3 per cent., is worth
15 per cent., this having interfered with the value of the
price of tallow byond that of demand and supply, some-
thing extraneous has stepped in to disarrange his calcti-
lations, and instead of gaining by his purchase, he might
be ruined, and altogether incapacitate himself, notwith-
standing, through a change that has taken place in the
measure of value. This I call an extraneous interference
in commercial compacts, which no matt ought to be sub-
ject to, and is dangerous to the whole world, and is one
of the causes of the constant failures that are taking place
to the disgrace of our country.
It is not enough to say that gold is worth always
31. 175.,10di. in England, or 25 francs and so many cep"'
in France, with slight variations. We know well the
rate of interest regulates the profit or loss, and that
should be made as slightly variable as possible—never
ought it to exceed 5 per cent.
Lord Palmerston, by urging the minimum rate of 10
per cent. was de facto and absolutely doubling the value
of all available property throughout England, without
doubling the amount of the value of labour,
but, on the contrary, stopping the employ of labour.
the effect of whioh must soon' show itself in factory
riots all over the country.
Making money that was commonly worth 5 per cent. to
become worth 10 per cent., is doubling all available pro-
perty in value.

ELIE LATE SINGULAR DISCLOSURES Ar
ST. PAINCRAS WORKIIOIIPSE.

Yesterday, at the weekly meeting of the directors of
the poor of St. Pancras, held at tha Vestry-lay
Cambden-town, Mr. Churchwarden Wyatt in the chair,
the report of the committee appointed to investigate t•
the alleged misappropriation of stores, &c., • was
brought up for consideration, a director of the poor, to
resign his office.
Mr. WEDGWOOD, in moving the adoption of the
report, stated the circumstances under which the inquirl
o-tginated, and it was admitted by the storekeeper tfiaS
Mr. Clarke had three pounds of oatmeal out of the
stores. There was only a slight difference between Mr'
Clarke and the storekeeper upon the point, with
exception that Mr. Clarke said he gave the storekeeper
6d. to buy the oatmeal befora the discovery, while the
storekeeper said it was after the discovery. With regard 9
the broom, the storekeeper stated that he refused to sen 7
Mr. Clarke a broom out of the stores, but that he gent
a tradesman, who sold them, with one to Mr. Clarke'l
house, but Mr Clarke could not say whether he had
paid for it or not. With reference to the easy chair, there
was a difficulty of ascertaining if it had been supplied
:
with the desk and stools purchased by him for the'paT"
Mr. Churchwarden ATTENBOROUGH seconded' toe
mod rr, and said that a strong point was this, that,gri
Clarke wished Mr. Ryan to purchase the oatmeal ad
get the bill dated some months back ; but either Mr.
Ryan or the party of whom the oatmeal was purchase,'
refused to do it. t
Mr. CLASSIC said every right-minded man woubk
once acquit him of these trumpery charges. lie cone!:
dered that be bad been most shamefully treated and
maligned in his absence, after having borne an nnsulliaa,
reputation in London for 40 years. He could act but
feel that the committee had prejudged the case, and if be
were to obey their call upon him to resign his seat ata
that board, he would be at once acknowledging hinosel!
guilty of the charges imputed to him. He would ge
once to the question of the easy chair, which he bad.,
bought and paid for ; and this much he would do—it
the board would appoint any three gentlemen to wait oa
he hoped and believed he should have it
tAhlern. Priest, did
ualnddatdiodnnceotrfiensdignw.hant hee
hsaaiddetoombeet abater:eel. %
justice, and
from that board.
Mr. Fisher and Mr. Stockton said they considered it
thewh aste serious. easkedand
ofonrlyshaonualdctboef jgursatincteedto,
IMabrn.
nCrlianrg
kenntdheart
painful charges he did ; and Mr. Wedgwood accorded is
the view, as the committee could not see Priest's cash‘
book when they went there.
M-. Cranxn moved, ani.. Mr. FISHER seconded, ari
amendment to the adoption of the report—" That -111."
Stockton, Mr. Perkins, and Mr. Summers, with Mr.
Wedgwood, be a deputation to Mr. Priest, to aseirtaiu
as to the purchase of the easy chair."
The CHAIRMAN reminded the board that Mr., Cleric@
had jumped over the case of the oatmeal and the 'Brous
altogether, and he urged that the best thing be could de
for the peace of the board and the parish was to resign' _
Mr. Turner, Mr. Young, Mr. Cameron, and.:othell
members took a similar view of the question ; and 0
the amendment being put, there were 7 for gild 13
against •
The original motion was ultimately carried by
majority of 14 to 6.
The board, after routine business, separated.

THE POOR LATV BOARD AND THE Loo[l4l

CRISIS IT PRESTON.
Yesterday (Tuesday), at the meeting of the Board 01
Guardians of the Preston Union, Mr. Satterthwaite (L"
chairman) presiding ; Mr. Wanwaring, the Poor Lair
Inspector for the district, attended. A with
From the returns it appeared that, as compare- f
last week, there was an increase of 1,849 recipients 0.
out-door relief, and 1121. 12s. 10d. in the cost. The to
number of out-door paupers is now 8,035. , ,
Mr. C. SATTERTHWAITE pointed out the hardenTp
se vent upon the Poor Law Board's refusal to relax J
prohibitory order in reference to out-door relief (without
work) to able-bodied males. Many -parties in recoiP,s.
of 6s. or 7s. per week from the mills working shore
time had applied for relief, being burdened witE laref
families. Now the guardians could not give them relie
because they were working. 0 the
The. INsrecron—Yon may report the cases t
Poor-law Board.
Mr. C. SATTERTHWAITE—There are scores OLs
ar „
cants working three days a week, earning about 65.,' and
having four or five children, and we cannot relieve.thems
Mr. CROOK—You cannot do it for a fortnight.
Mr. C. SATTERTHWAITE—We cannot do it for 80
time, without the sanction of the Poor-law Board.
Mr. MAYNARD mentioned a case similar the in'
at ace recited by Mr. C. Satterthwaite.
The INSPECTOR—These are very rare oases.
Mr. C. SATTERTHWAITE—Two or three hundred a
week, if you call that rare.
The INSPECTOR—That order is for the protection of
the ratepayers ; it is to teach the people to lay by for
rairy day." When you meet with cases such
these, if you report theta to the Poor-law Board, they
will allow the relief.
Mr. C. SATTERTHWAITE—We shall have to engage a
man solely to write to the Peer-law Board under' the
present circumstances.
The INSPECTOR—Oh no ; you may report the easel
quickly as the relieving-officer enters them in his book.
Mr. WALIISLEY—This is a peculiar time.
Mr. C. SATTERTHWAITE—They (the Poor-law Board)
should relax the order.
The INSPECTOR—These people should be taught to
provide against emergencies like the present. vt, A
Mr. Al3llllllAlE—Look at the increase of paupers. ',-
should require to correspond in something like twa
thousand cases.
Mr. DrcoN—l have spent 30 years in the management
of poor's affairs, but it seems that I and 47 other
dians cannot decide upon .cases of ;did without the
interference of the Poor-law Commissioners. Such
interference was an insult to Englishmen. - „
Some further conversation took place, and the subject
dropped.