The Sun.
London, England, 1857-11-13 00:00:00

selves, and then' to seek safety by cutting off
facilities" and throwing the applicants upon the
Bank of England. Then we have deputations to
the Governors, threats that if something is not
done the whole trade of the country will be brought
to a stand, and an outcry, of course successful after
the requisite amount of alarm has been created,
for the suspension of the Bank Charter Act.
If, however, the example of 1847 had never been
set, and these persons had been taught to feel that,
happen what might, the laws of the country_
in the full knowledge of which they had undertaken
all their operations—would be. rigidly kept invio-
late, not only would the public never have been
disturbed by predictions of coming ruin, but every
safeguard that ingenuity could devise would have
been secretly prepared to provide for any casualty.
If the discount-houses and any of the joint-stock
banks apprehended a withdrawal of their deposits
to an extent to cause public inconvenience, it was
their business to make common cause to guarantee
each other's safety, and, if any nominal or contin-
gent suspension were necessary, to bear the discre-
dit of it themselves, and not to inflict it on the
Bank of England and the country. They could
have announced to the public that a run being
threatened they bad combined to mitigate its cou-
sequences • thet, not being able to foresee its pos-
sible extent, they had agreed to suspend for the
moment any return of deposits, and that to meet
the difficulty they would issue their promissory
notes at three months b?aring 9 per cent. interest,
and secured by their common liability. A meet-
ing of all the principal bankers aiid merchints, in-
cluding the governors and directors of the Bank of
England, might have expressed approval of the
wisdom of their course, and before a few weeks had
passed these notes would have been at a premium.
But, unquestionably, the character of the issuers
would have been damaged, since the fact cf their
having been obliged to resort to such a method
would have fixed them in their right position in re-
lation to the causes-that had led to it. If any cha-
racter was to be damaged, it was much more plea-
sant that it should be that of the Bank of England,
the country, and the Government, and, thanks to
the complaisance of the latter, they .have suc-
ceeded in putting it on that footing. To b 3 sure
they took care that matters should go to a point at
which the Cabinet would have little choice. There
was, however, an alternative which, although
equally unjust in being an act of Government relief
for which there was no true claim, would still have
prevented a sacrifice of principle. An issue of one-
pound notes could have been adopted without 'any
infringement of the doctrines on whicff the Bank
Charter Act is grounded. The fact that the per-
mission for the circulation of such notes terminated
in 1820 is riot material, as the law could have been
set aside on one point as easily as on another. This
plan, however, seems not even to have been consi-
dered. After ten years' experience, therefore,. and
all the enlightenment that was thought tolave bee n
attained, we have thrown back at once to the dis-
creditable position we occupied in the last crisis,
and all the admirable conduct of the Bank of Eng.
land andnf the respectable mercantile publio has
b ,en rewarded by a proclamation to every specu-
lator or reckless money-lender who may choose to
disregardthe plainest principles of monetary science,
th it he will always find his safety in the very panic
which his own misconduct has promoted, and that
the only persons who will he brought to disappoint-
ment or confusion will be those who have prudently
guided themselves by the law, and have relied
throughout upon its inviolability.

(From the Morning Post City Article.)
The scene witnessed at the discount department
of the Bank to-day was of the most exciting charac-
ter. The pressure for accommodation was general,
and the applications, numerous as they were, re-
ceived attention, but the very extreme rates had
to be enforced. As the weekly board is held on
Thursday, much anxiety was manifested to become
acquainted with the resolution, if any, adopted by
the Bank directors. The sitting was very protracted,
and, consequently, apprehensions were aroused
lest further restrictions might be attempted ;
but shortly after three o'clock p.m. it was an-
nounced that the rate would continue at 10 per
cent. No intimation had then been afforded of
the probable appearance of a Government
letter, but the assurance that the rate would not for
the present move above the fixed minimum was cal-
culated to ease the anxiety which had previously
been manifested. During the afternoon it was con-
fidently asserted that the Treasury authorities were
prepared to afford relief, and the intimation to that
effect was shortly afterwards conveyed in official
form to the Bank ' aria to the Stock Exchange.
Money out of doors was certainly less difficult to
obtain when the circumstance transpired, and
there was more readiness' to extend assistance im-
mediately it was found that the Premier and the
Chancellor of the Exchequer were impressed with
the actual importance of the crisis. Although in
Lombard-street the demand was great, and not
readily respondedto throughout the day the brokers
exhibited increased liberality towards the close of
the afternoon. As illustrating the terms obtained
through discount operations, it may be mentioned
that a merchant to-day, in negotiating a bill of
four months' date given by one of our best and
most flourishing companies, had to pay 131 per
cent. for the accommodation. Some of the brokers,
it appears, have refused to deal with any paper ex-
cept at 10 per cent. and 1 per cent. commission.
Facts of this description corroborate in their full
sense the severity of the pressure in every depart-
ment.

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merit at the eirnest supplic . ; s‘;r-1 '(s .1-.494
community. Yet as to the retentkon • 4-• e. oi .--
ss seat law we have not the slighla'st dor-bra is
thorough supporters soy that it; is perfect for all.
times and all ciseutnstsnces, and that its .preaeot
suspension is a weakness on the part of Govern-
ment, generated by an insane panic on the part of
1 the people. But even those.who admit that a time
may come when the Bank should ba all° we I to. ex-
tend its issue mays ill uplioli the Bank Ch enter
Act as the law of thwlarri. They may fairly argue
that the suspension allowed by Vie Governin-mt
yesterday was to save the country from returdiug
to a state of barter. Gold is the nvasure of values,
and, as long as it bears a sufficient relation tcsthes
transactions-of the country, men may be required.
to make their payments in it, or in notes imtnedi-
ate!y convertible. But if fr m any sudden convul-
sion the metal falls short, is drawn away, and ex-
hausted at any spot, it cannot be expected
that all the hilliness at that spot is at
once to cease. There remains money worth--
lands and houses, cotton and sugar, wines and
tobacco. All that is wanted to be able to ex-
press these in the currency which is the general
standard of value. Gold has vaniahed, but the coun-
try has the material wealth which will bring it back
again. All is a question of a few months, perhaps of
a few weeks. It may in such a case be allowed to
the Government to come to the rescue of the nation,
by allowing a corporation which has a quasi natipnal
character, and is ruled by nationally imposed laws,
to create fictitious standards of value, in the shape
of bank-notes which have no metallic representa-
tives. Such a proceeding, however, must be under-
stood to be an extraordinary proceeding, in Which
the community for its own good allows a certain
establishment to exceed the limits of safe and:legi-
timate dealing. In fact, the country must be con-
sidered as becoming security for the redemption of
the extended issue, or, in other words, as itself issue
ing a quantity of paper money by its agent, the
Bank, in order that the business of the country may
be conducted during the temporary abstraction of
the usual currency.
It is, therefore, no proof of the failure of the
Bank Act that at certain times its restrictions
should be suspended. -Te fact, o.:a extension of
issue should be considered as something s,aperadded.
to the ordinary conditions of the Bank's existence.
The Act of 11341-vratrpassed to control -the Bankto .:,_.
not to control the nation. Parliament decided, and
we think wisely, that it would not in ordinary
times trust one great corporation with the power of
issuing an unlimited number of notes. This proceed-
ing is strictly in accordance with the regulations
which control the issue of country banks and which
restrain London banks from having any issue at all.
Whether the amount of surplus allowed to the Bank
be sufficient for the ordinary purposes of commerce
is, of course, a question for discussion, but the prin-
ciple which establishes a restriction of some kind
has been accepted by the nation in its general course
of legislation. It still, however, may be com-
petent to the country to remedy any abnormal
deficiency of the currency by an extraordinary
issue, which the Bank may be empowered to Make,
not, as it were, on its owil account, but on account
of the nation, which may regulate the amount issued
and dispose of whatever profits may accrue by the
transaction. This seems to us to be the defence
for such an interference of the Government as has
just taken place. The suspension of the Bank Act
has nothing akin to the system which allows
American establishments to flood the country with
paper representing only a small percentage of
capital, or perhaps no capital at all. It is the ex-
traordinary device rendered necessary by an extra-
ordinary conjuncture, *and when the necessity
ceases the relaxation may cease too. Still the sus-
pension of a positive law is a grave matter, and
may well nece sitate a speedy appeal to Parliament.