The Sun.
London, England, 1857-03-13 00:00:00

MONETARY AFFAIRS.

(From the Derbyshire Courier.)
The return of the Bank for the week ending
February 21st is not of a character to impart
much confidence as to an improvement in money
matters.

The active circulation continues small, being
18,615,1551., a decrease since the former return of
181,2601. The stock of bullion in both depart-
ments has increased by 145,0301., but is still low,
being 10, 404, 690/.
Adopting the test of the author of the " Bank
Barometer," we find that the cash in hand of the
Bank is 6,264,5351., while the half liabilities
amount to 8,738,029/. This leaves a deficiency °
cash in hand of 2,473,494/. ; and noprospect all
therefore, be at present entertained ofp re
a duoti°ll
in the Bank's rate of discount.
There can be no doubt that this state of thin
is acting injuriously on our trade in all commere'id
relations. The constant influx of Australian g°
tends to allay anxiety, and alto prevents the •133°1;
from adopting more stringent measures for ellec t
ing the drain of bullion. But it appears to us that
European nations must adopt more decided Dili
sures if they wish to prevent the absorption
„„k
silver by the Eastern countries. This We'i
459,388/. of silver has been shipped by one verse
the Indus, for India, and 325,8461. for China. „t
We cannot, of course, obtain an accurate a 0011.70
of the sums of silver exported to China, but "
have some report of the amount sent to India. s
The quantity of silver imported from Europe
into British India is estimated for the last five Ytd
at not less than 244 millions sterling ; and duil
the single year 1855-6 more than 10 millions Wee
imported into India.
What is to stop this ? China and India al
absorb the whole amount of silver in Europe, Is
as long as silver can be purchased in Europe tis
profit these countries will continue to buy.. 41'.jk
quite fallacious to talk of the failure of the o
crop of 1856 as a reason for the exportation of r,
ver to the East during the five last years. M.,*
British India especially four millions of money'i
absolutely remitted annually to England throng
the East India Company, the balauce of 104 t, f
made to India, to be spent here, to say nothing °f
the large incomes derived by individuals from Pro"
perty in India.
In fact, before the gold discoveries, the DILI°,
banks constantly imported gold from that coven:
they now carry on a constant trade in exporting Its
Gold is, therefore, drained from this countrket
purchase silver at the cheapest continental mar"
for exportation to the East, and as stir gold iS „,
ported Peel's Bill enacts that our paper InerJed
should be contracted.
...1A of
The immediate remedy in Europe wet,-)44
course, be to alter the relative proportions 0' i-er
and silver coins, so that the exportation delis
coin might no longer yield a profit. But mesa
currency will always present evils.
no
What we require is a domestic circulating - .'
dium of paper which will never be subject to sail,
portation. With such a circulation British iljcsa
would be to us a mine of wealth, of which We
scarcely yet form a conception. • 14
Even the increase of circulating medulel, be.
the importation of silver has acted already me",,r•
neficially for India. With an adequate paper. w ,re,
rency issued by the East India Companit,A or
ceivable for taxes, and not convertible into gniA
silver, at a fixed rate, we s rould see British le Ai
starting into new life, and instead of drawilne,r.
our money pouring into thin country an atall'i"st
tide of wealth.