The Sun.
London, England, 1857-11-19 00:00:00

HIGH WATER AT LONDON BRIDGE.

THIS DAY—Morn., 8 min. aft. 3—Even., 25 /lift' aft. 3
To-MORROW—Morn., 41 min. aft. 3—Even., 0 min. aft. 4

THE WEATHER-SUN OFFICE, NOVEMBER 19.

TEIRKONIZTHR, lii THZ SLIDE.
54—highest sines noon yesterday.
44—lowest this morning and during the night.
47—this day at noon.

Bartomrriß, 30.33.
WIND, S.S.E.; light, with cold hazy weather.

`. it D.- `c •
- 4

LONDON, THIIRSDA.Y, NOV. 19, 1857.

Day after day it is our painful duty to record
failures of first-class firms, whose solvency was
never suspected, whose credit was never impaired,
until they were crushed by the baleful operation
of the iniquitous monetary code of 1844. The
proceedings already taken have proved, beyond
the possibility of doubt, the general soundness of
trade, and that the misfortunes of these eminent
firms have been occasioned, mainly, if not en•
tirely, by the famine of currency occasioned by
the restrictions established by Sir R. Pzicr, on the
circulating medium. We may, in fact, speak of
it nearly in the terms adopted by the Committee
of the House of Lords, in their valuable report
on the monetary crisis of 1847. We assert that
" the recent (and we regret to say still existing)
panic was materially aggravated by the operation
of the statute, and the proceedings of the Bank
itself. This effect may be traced directly to the
Act of 1844, in the legislative restriction im-
posed on the means of accommodation, whilst
a large amount of bullion was held in
the coffers of the Bank. * * * And
it may be traced to the same cause indirectly,
as a consequence of great fluctuations in the rate
of discount." It is true that on the present
occasion the foreign Exchange, in place of being
favourable, have been quite the other way, and
that capital has not been recently advanced at an
unusually low rate of interest ; but these facts
prove not only the inapplicability of the act of
1844 to the internal trade of the country, but
al,o of that of 1819, on which it was foundqd,
and of which it wax described to be " the necessary

complement."
Trade and manufactures cannot be maintained
with a minimum rate of 10 per cant. for discount
to the most favoured classes, and perhaps double
that amount to those who, though no less solvent,
in proportion to their liabilities, iyAsess inferior
influence. We therefore hear of suspensions,
where we are assured by the bullionist organ that
" no ultimate loss need be apprehended," although
it may easily be conceived that the credit of the
parties who have been unable to weather the stirin
has been completely destroyed, and that the capital)
invested will be annihilated—and all this, that the
tnoneyceracy may be enabled to purchase 40s.
worth of goods for 20,., or, as we have already
at ited, that " prudent (i. e. overreaching) credi
tors should be empowered to ruin their unfortu-
nito debtors," or, as the Times recently stated, "to
face one portion of the community, wLo
allow themselves to be drawn into
a panic, to part
with their property
at a sacrifice, to another and
a more clear-headed portion, who find Mansell, s in
a condition to buy it." That is the sole end and
object of the Bank Charter Act, viz., to create an
artificial scarcity cf.' money, so that numerous

long as they had confidence in their leaders
would brave any dangers, endure any suffering.,
but, when those dangers and sufferings were to be
directly traced to the imbecility, or worse than
imbecility, to the dishonesty of those placed in
command, we could not feel greatly surprised if
disaffection should prevail, and a mutinous spirit
be manifested. So will it be with the people, un-
less immediate steps be adopted to remove the
serious grievance to which they are subjected.
The great question at issue—that of gold D.
labour—must speedily be decided, one way or the
other, or the people may feel disposod to take the
law into their own hands, and to force immediate

judgment.
The Government, in pursuance of the OvEa•
STONE theory, permitted matters to go on " to
the last extremity, when the danger of general
confusion had become imminent." This cannot
now be stopped by the very inadequate relief they
have thought proper to afford. We explained
some weeks since that the mere suspension of the
Act of 1844 would not now suffice. That of 1819
must share a similar fate, or at all events there
must be an extensive issue of 11.-notes, which by
economising the use of gold may still render it
adequate to the purposes for which it is used—and
which, if issued to the extent of twenty millions,
would, as Mr. JAS. WILSON, the enthusiastic ad-
vocate of bullionism, declared, " immediately add
to the effective capital of the country, to
our stock of commodities, or, which is the same
thing, our command over them, just as much as if
we dug that amount of bullion out of the centre of
England." We have repeatedly pointed out the
absurdity of the prohibition of these useful in-
struments of exchange, which in 1825 saved the
Bank of England and the Nation, and would do
so again if properly introduced.
The Times alludes to the American difficulty as
conclusive against the use of a virtually unlimited
paper currency, but this is a fallacy. The failure
and panic in America are attributable to the con-
duct of the Government, that refused to receive a
single note in payment of tames or duties, and
thus so far as practicable cast discredit on the
entire system. If there was a really national note
receivable in payment of taxes in every State in
the Union—such as we demand for Eng-
land, there would have been no difficulty.
The smart Yankees, who refused the totes
of the neighbouring States, for the purpose of
extracting heavy discounts from the holders, occa-
sioned the mischief, and both the Government
and the sharp practitioners have well merited the
severe lesson they have received. There could be
no danger of the depreciation of really national
notes, of small denominations, receivable by every
Government department in this country ; and the
issue thereof will alone suffice to meet the existing
difficulty.

At length we know the value at which the

Government estimates the services of those gal=
lant men by whom the Sepoy Mutiny has been
crushed, and our Indian Empire preserved to the
United Kingdom. The honours have, unques-
tionably, been tardily bestowed, and are by no
means unreasonable in account. Sir JOHN Law •

RENCE has been made a G.C.B. of the Civi

Division, for his extraordinary and most efficient

efforts in the Punjaub, which may to a

certain extent be said tohave saved India. WILSON
and HAVELOCK are each raised to the secondary
dignity of K.C.B. I The capture of Delhi, the relief
of Cawnporeand Lucknow, and the series of brilliant
victories achieved by the truly gallant HAVELOCK
are thus lightly estintated by the Government.
Why, if they had destroyed their brigades and
totally failed in all they were bound to accom-
plish they would, judging from precedent, have
received just the same distinctions . It is

scarcely worth while, so far as stars, and ribands,

and titles are concerned, to tike much trouble to

earn them. The capture of Delhi has enabled
the General in command to add a handle to his
name, but no other person has obtained an equal
reward. It is true that it is stated that if the
deeply lamented NICHOLSON had survived his
wounds, he also would have been added to the
list ; but what of Brigadier JONES, of Colonel
CAMPBELL, and the other survivors, who so nobly
headed the columns in that terrible onslaught
They have not been even deemed worthy of the
third rank of the order—VAN CORTLANDT, and
CHAMBERLAIN, are the only two who have received
even so trifling a recognition of their services.
Again, Cawnpore and Lucknow together, are
only good for a single Sir-ship, just what a Civic
tailor might obtain for presenting a toadying
address to the PRINCE CONSORT. Nor is there a
single officer made a GB. for these noble feats of
desperate courage. INGLIS, the commander of
the devoted garrison, was not deemed sufficiently
worthy. Verily, the Government are indeed
chary of the rewards, which they have dealt
forth with niggard hands to their faithful and
truly meritorious servants.
This is simply because these real heroes are
men of the middle class ; because they have not so-
called noble blood In their veins. If they could
trace their origin to a libertine Monarch, or even
an influential Peer, albeit their escutcheons might
be obscured by the bar sinister, they would have
more suitable recompenses. But their virtues are
concealed by " the cold shade of aristocracy," and
anything is good enough for those who have not
near relatives in either branch of the Legislature.
But u
the
they
ePeople will not so judge their heroes ;
with
will exclaim—Honour be to all who
have so nobly vindicated the supremacy of our
arms against the traitorous and bloodthirsty
villains who have frantically endeavoured to
subvert our rightful domination ! Honour to the
energetic LA.WP.CE, to WILSON of Delhi, to
NrcsoLsoN the prompt, to NEILL, the avenger !
But dou le honour be to the bravest of the brave
—" the noblest Briton of them daunt-
less warrior, who, if the national will receive a
fitting exposition, will speedily be enrolled

It seems the Italians are openly expressing
their wonder at the supineness of England in re-
gard to the two British prisoners of the King of
NAPLES. It is universally known that they are
detained untried in defiance of the law of Naples
as well as of the law and courtesy of nations.
On the last point, indeed, little could be expected
from the bully whom we suffer to exist as
mo-
narch of subjects who want but a hint from us
to throw him into the crater of Mount Vesuvius,
or to employ him in examining the depths of
' Scylla and Charydis. But his refusal to allow the
prisoners the benefit of Neapolitan laws is an in-
su.lt to England in the person of these poor men
at Nvhich it is no wonder that all Italy is asto-
nishod. It is openly said, as indeed we have
said here, that if France or America had prisoners
in the same position, but four-and-twenty-hours'
notice \you'd be given from the state cabin of a
commander's frigate, and, failing attention to it, tl
a notice of another kind would immediately follow.
Of the latter notice there would certainly be no need.
FERDINAND'S subjects would not submit to a bom-
bardment to gratify the infatuated obstinacy of the
Virgin's chief petticoat maker. Then, an indem-
nity for their sufferings and losses, too, would be
immediately forthcoming.
It seems that even the harsh Neapolitan laws do
permit the accused to see his advisers after what
may be called " a true bill" has been found.
This process has been completed some time ; yet
the accused are kept at Salerno awaiting
a trial which never commences, and, notwith-
standing all Lord CLARENDON and our Consul
can do, the latter is not permitted even to

see them. We feel ourseives disgraced as Eng-
lishmen by this. We feel, as Mr. BUCHANAN or
'L•IIIs NAPOLEON would assuredly feel, that this
is not a case to palter with, if we are to retain a
shadow of self-respect. We have Lord LYONS
close at hand ; why not put the business in his
hands. Instruct him to bring away the prisoners
—leave the process to him—and we will answer
for it, he will redeem English reputation in the
Mediterranean in a few hours. We write delibe-
rately. We have no notion of lowering ourselves
for ever before every despot of England. If we
can not enforce justice against diplomacy and red-
tape, on behalf of British citizens in the hands of
crackbrained and contemptible despots, then let
our Admiral strike his flag at once, and return to
Spithead.

THB BANK CHARTER ACT.

TO THE EDITOR OF THE 8171 C.

SlR,—The suspension of the Bank Charter Act of I
1844 sooner or later was clearly to be foreseen. In a
letter I published last November I remarked that its
knell was tolling, and that in all probability it might
again have to be suspended before the meeting of Par-
liament ; that events were rolling on which, resistless as
the ocean's tide, would sweep away all legal obstructions
to natural laws. Our trade was increasing under the
influence of free-trade principles at an enormous rate,
and mast continue to increase at the same rate when
confidence is restored. The wholesale portion of that
trade is carried on by credit money, by bills, which are
engagements to pay legal tender money at distant
periods. When shocks to credit take place, and come
they will sooner or later from one cause or another—and
this time the shock,has come with avengeancefrom Ame-
rica—the issuers of these promises to provide legal ten-
der money have to look out sharply for the means of
fulfilling their engagements failing which, bask-
ruptcy is their fate. The whole commercial world
was, therefore, for legal tender money, and where is it ?
—it is but a drop coinpared to the ocean of credit
money. In this country (thanks to the wisdom of Lerd
Overstone) there is a law, the Bank Charter Aot of
1844, which prohibits the increase of legal tender paper
money under any circumstances whatsoever Now the
apprehension of a deficiency of legal tender money was
the cause of the panio in Oct. 1847. The London bankers
waited on the Chancellor of the Exchequer and said,
"let us have notes, charge 10 or 12 per cent. for them,
we don't care what the rate of interest is." By note,
they meant legal tender money wherewith to discharge
legally their debts, they did net want them as °Grimy,
for in a panio where trade is paralysed less currency is
needed, but, as the one thing needful, legal tender
money. Tee same apprehension of a deficiency of
legal tender money has now again occurred, and a panic
is the natural consequence— a I run for it to protect
themselves against all possible con tinges° ee. Sauce qui
pout, is the general cry, for it is will known that the
Act of 1844 limits the supply, and now, and in Oct.,
1847, the panic is again stopped by the suspension of
the Act. The very essence of the Act is the prohibition
to issue more legal tender paper money, and yet when
the prohibition—the cause of the panic-4 removed,
and the panic cured, it is contended, that unless an
actual increase of issues takes place, the Act itself will
not have been infringed. Has not the position I have
endeavoured to establish, that the rate of discount de•
ponds fundamentally on the demand and supply of the
legal tender, been verified by the suspension of the Act.
The rate in the City before the issue of the Government
letter was 15 per cent., immediately afterwards it fell to
8 per cent.
So far the Government has taken the right to remove
the panic, the unlimited issue of legal tender paper
money on approved securities, still another step is
necessary to revive trade, to setourAmerican customers
on their legs again, and enable them to pay their debts
to us, and buy our goods. This may be done by letting
them have in exchange for their cotton and corn the
gold we can spare from our retail trade, by the issue of
one pound notes as the substitute for sovereigns, The
gold used in the retail trade is a distinct stock, as Adam
Smith says, to that employed in the wholesale trade—
evidenced by the stock in the Bank of England being
reduced to less than 7,000,0001., not withstanding
all the efforts to increase it, whilst the whole stock
in ; the country is 70,000,0001., chiefly used for
shopping. Spare a few millions of this by substilatiog
one pound notes, and let them go to America, and con-
fidence w;11 be restored and trade revived. Nay, the
very anticipation of the supply will produce these effects
in a groat degree.
I will conclude by repeating my prediction that the
knell of the Bank Charter Act of 1844 is tolling. The
chief mourners at the iotermeat will be Lord Overstone
and the Bank directors— the former representing the
moneyocracy, for the exclusive benefit of which class the
act operates, and the latter as deploring the loss of their
monopoly. These friends of the act were the sole sup-
porters of its character before the late Parliamentary in-
quest. The funeral dirge will be chaunted by the writer
of the City Money Article in the Time.; whom rumour
with its thousand tongues proclaims to be a paid and
faithful servant of the Bank of Eegland.—l am, Sir,
yours sincerely,

HAMER STA NSFELD.
The Grange, Burly, near Otley, Nov. 17, 1857.

TO TUE EDITOR Or THE SUN.

SIB,—It is evident that the public must he prepared
for a series of such articles as that in the l'intes of this
day ; but I conceive that there are few amongst its
readers who will not consider that its illustrations in the
money article are unfortunate—as not applicable to the
cause they are intended to support. Instead of the in-
terference of Government affecting the value of every
article of commerce, it has prevented the ♦alue of every
article being effected. It has sot yet appeared, with re-
spect to any of thefirms which have become embarrassed,
that the stoppages have been caused by reckless trading ;
for the same paper has pretty generally intimated that
the firms were so substantial, that no ultimate loss need
be apprehended ; that even the golf, which has beeu
supplied to some establishments, will speedily be re-
turned into the coffers of the Bank. Tae real defect has
been proved to be the want of a sufficiently circulating
medium, in proof of which, it has also been stated, that
the bills, whiole have been offered fur discount, have, by
the same means, been passed with as much facility as
they c mold have been in the easiest times. With regard
to the rate of discount, that must be treated by those
who now require accommodation, as they would a bad
debt ; but wbat wool ] have been the c insequences, no
one can foretell, if, as the Times intimatee, the rate
might have been 20 or 30 per cent., without this con-
cession, independent of the universal panic, which they
also admit might have taken place, if no exten-
sion of the Bank issues had been advised.
How the trade of a country, which has been increased
fourfold since the Act of '4l, can be/maintained with ut
serue better regulet.ons with regard to the currency, le
a matter which will, no doubt, receive the serious con-
sideration of Parliament.—l am, &l,
A CONSTANT READER.
Nov. 17, 187.

Prince Demiduff, the envoy of Russia to the Curt of
Tu,,cany, has left V;enna for Florence.
Marshal B3squet is at present at Pau, and intends to
pass part of the winter there.
The Duchess of Nassau has just given birth to a
daughter at Wiesbsden.
The Duke and Duchess of Norfolk are passing the
season at Arundel Castle, surrounded by a select circle
of friends.
The Eal of Yarborough has arrived in town, after a
s(je,tr of some weeks in Italy. The noble earl and tl e
counters go in a few days to Maul)), Halt, Lincolnshire.
The Earl and Countess of Lanesborough have returned
to Swithland Hall, Leicestershire, where they intend to
pass the winter, irmt Lanesborough Lodge, county
Cavan.