The Sun.
London, England, 1857-02-09 00:00:00

TEE SUN LONDON, MONDAY EVENING,

financial department goes into the investigation
with his mind fully decided to do—nothing ! So
far as he is concerned, the decision will be "a
foregone conclusion." As we have already stated,
he enters on the inquiry, not with the view of ob-
taining valuable information, on which a just and
salutary measure might be founded, but merely to
shift the responsibility from his own shoulders,
and to discharge his envenomed shafts against the
trade, commerce, and manufactures of the country
from under the protection of a safe shield, without
being held answerable for the mischievous results
that must inevitably arise at the first emergency.
His own decision being already formed, it is im-
perative that he should receive the assistance
of a properly-constituted and impartially-selected
committee. A packed body will be worse
than useless. In place of supplying impeae-
trable armour, it will fall before the first
blow, and he will only receive well-merited con-
tempt for resorting to a device so shallow and so
easy of detection.

The course which Sir G. C. LEWIS intends to
adopt is simply to propose the renewal of the Act
for a further term of ten years, without change
or modification of any kind, so far as the circu-
liting medium is concerned. He is still re-
solved to prevent the exercise of any discretion
on the part of the Directors with respect to the
issue department. They must still be fettered
by restrictions, which, although possibly applic-
able to one state of affairs, would be exceedingly
unwise and injurious to the best interests of the
country under different circumstances. Like the
renowned SANGRADO —depletion is the panacea!
A patient suffering from atrophy, or deficient cir-
culation, is to be subjected to copious blood-letting
and thorough drovelling. In like manner when
there is a manifest starvation of currency the ap-
propriate remedy is the abstraction of notes to
the amount of nearly 41. for every ounce of gold
withdrawn from the Bank. Thus, the reserve is
subjected to a twofold process of exhaustion when
it might be strengthened, and i❑ like manner the
means are doubled, and the Bank is compelled,
for the sake of dividend, to force its notes
into circulation just at the time that it would be
desirable to check improvident speculation and
the undue extension of business transactions.
The operation of the Act is thus, in every respect,
mischievous. It stimulates when there should be
reEtriction, rendering the inevitable reaction the
greater, and restricts when a judicious and
wholesome encouragement is imperatively re-
quired !

But supposing that the points respecting the
separation of the issue and. the banking depart-
ments and the limitation of the circulation of
bank notes were conceded, two questions mainly
arise, viz.-Ist, What should be the amount
issued against securities T and, 2dly, Whether
there should be any, and what, dispensing power
vested in the Government for the time being I
On both these questions Sir G. C. LEVIS decided
that there should be no change—that the paper
issues unrepresented by bullion should remain at
14,476,0001., and that in case of necessity the
Government of the day should be compelled to
appeal to Parliament for an indemnity for what
must be regarded as a wholly illegal act, being
diametrically opposed to a well-considered Act of
Parliament.

On the first point, Sir G. C. Lewis declares
that the amount of 14,000,0001. originally fixed
was taken as " representing the lowest amount to
which it was thought the currency might descend,"
This is the only assignable reason for the arbitrary
selection; and, as a bad reason is better than no
reason at all, we shall accept it quantal* valeat,
exactly for what it is worth. But does it cccur
to the Right Hon. Baronet that circumstances
have changed materially since 1844 ; that there
has been a very considerable extension, not only
of the population, but in a still greater ratio of
the legitimate business transactions of the ooun-
try ; and that there is consequently an imperative
necessity for a larger amount of notes in the
hands of the public ? From tables com-
piled by Mr. NBAMARCE from data supplied
by Mr. J. G. HUBBARD, formerly Governor
of the Bank of England, it appears that the out-
standing circulation of the Bank has increased,
even since 1851, by about 4,000,0001. storliug.
The natural expansion of trade has, therefore,
absorbed so much more of the circulating medium
—and, consequently, that amount has been ab-
stracted from the Reserve, and the only fund
available for affording legitimate accommodation
to the commercial and manufacturing interests has
been pro taoto diminished. The effect of this
contraction must be "to contract, in a much
greater degree, the discount of bills of exchange,
AD important form of credit." This is the state-
ment of Lord OTERSTONE himself, who, in his
evidence before the Select Committee of the House
of Commons, in 1840, said that " upon a con-
traction of the issues of the Bank, the amount of
bills of exchange is also narrowed is a very in-
creased ratio." Hence the competition is greatly
increased, and the minimum. rate of discount
enhanced to 6 or 7 per cent. at head-quarters,
which means 8 or 10, or at least 12, per cent. to
the trading population.

The enormous increase of commercial operations
since the passing of the Act of 1844 also proves
that a sum which was amply sufficient at that
time would now be totally inadequate to the
wants and exigencies of the nation, which have
been greatly stimulated by the salutary action of
Free Trade. In 1848 we reported manufactured
produce to the value of 51,000,0001. In 1855
the official value was 95,000,000/., and there
was a further increase of at least 20,000,0001. more
in 1856. The exports were, therefore, far more
than doubled—in fact there was an addition of
more than 125 per cent., and yet Sir G. C.
LEWIS sees no reason why the sum issued on
securities should be altered. It has, in fac', been
reduced by more than 225,000/., for the addi-
bional issue of 475,0001., authorised by the order
in Council of December, 1855, was in place of
more than 700,0001. absolutely abandoned by
country banks, that have withdrawn from busi-
ness, in addition to the large amounts which the
existing banks are within their fixed issues. What
would be said of a body of railway directors who
determined that, notwithstanding that the traffic
had been more than doubled on their line, they
' would make no addition to the number of their
carriages and trucks—nay, more, that they would
only replace twc-thirds of the number that had
been destroyed or rendered useless by accident or
ordinary wear and tear ? Their ineffable folly
would be universally ridiculed, and they would
ani7tet dtihs
l yibies replacedexactly w
by the s
ir G
indignant.o
.LEWlSshareholders.
isi
doing. His argument as to " the lowest amount
to which the currency might
for anything, must be conclusive
descend
of at least 4,000,000/. to the issue
su e fo
onSecurities
But he says that thetensif. good
effect sr a n addition
I,l'
of an ex,'
ion of
the limit would be merely to enable the Bank to
keep so much less pld ! And why ? According
to the oracle—" the issues wout I not be increased,
because they are already sufficient to meet the
wants of the trade of the country l" Aye, but
that invclves the whole dispute. It is a regular

petilio principii, a mere " begging of the question."
We assert, nay, more, we have repeatedly proved,
that it is currency, not capital, that is required.
The difference between the rate of interest and of
discount is conclusive on this point. The Right
Hon. Baronet does not adduce a single argument
in favour of his untenable positiou ; and yet he
expects that his ipse dircit, which is not only with-
out proof, but withoat the shadow of foundation,
will be accepted by the commercial and manufac-
turing population, who see their entire profits ab-
sorbed by the enormous rate of discount and
going to swell the usurer's exorbitant gains.
We have argued this question on the narrow
basis selected by Sir G. C. LEWIS. We have met
him with his own weapons, because whatever may
be thought on the question of " convertibility" or
" restriction" there can be no doubt or difficulty
respecting these matters. The most earnest bul-
lionist—the most enthusiastic advocate of the
principle of the Act of 1844—must acknowledge
the utter futility of the arguments of the Chancel-
lor of the Exchequer respecting the amount of the
fixed issue of the Bank of England. We have
much to say respecting the dispensing power of
the Government, and other fallacies put forward
in his verbose and tedious address, but we must
defer it to another opportunity ; neither time nor
space will admit of further exposure this day.

We called one morning on an eminent philoso-
pher lately deceased, when he told us that he had
been trying, all the morning previously, whether
it was possible for the human mind to shape to
itself—should he say so of what could have no
shape the conception of Nothing, of pure
Nothing. Had he-survived to read the QuEE.Nes
Speech this year, it might have aided his specu-
lations ; and not less—for our. friend took some
interest in ecclesiastical questions—had he read
the report of the meetings of Convocation. In
pursuance of our duty to know about all things
and tell our readers what we think of them, we
have read the said reports ; but what must our
report bet Why, that the proceedings all came
to nothing—" yea, less than nothing, and vanity."
Vanity, we presumptuously fancied too, in both
the English senses of the word. The bigness, the
display, the high-sounding phrase, the lofty titles
and the low titles, the resolutions, and the amend-
ments of real business-doing assemblies—all were
there ; but it was show only, empty show.
Very great it may seem to Curates and
little Rectors, and Yicars, and rural Deans
deep down in the country ; surely such great
titles, such solemn sentences, such business-like
sounding resolutions, surely they must have some-
thing in them. But ao ; as CUR RAN said to
the jury, when the Judge once shook his head
at some remarks of the orator's—" Gentlemen,
my Lord shakes his head ; but I can assure
you there's nothing in it." And we must beg
to assure the pale country clerics, and the single
ladies who since forty have devoted themselves to
"Sisterhoods of Mercy," to " Curates' Aid
Societies," and to "Church Extension" generally,
that portentous as these forms, and proceedings,
and debates of the Upper House and lower House
of Convocation, of Archbishops, Bishops, Prolo-
cutors, Chancellors, Proctors, Professors, and
Archdeacons, Canons, dac., may seem—there
really is nothing, nothing at all in them.
In the Upper House the debates began where
all must end—with the grave. The dignitaries
thought it best thus to " apply their hearts unto
wisdom." The burial service, so far from sufficing
to bury all disputes, seems rather suited to create
them amongst clergymen. When the Coroner had
recorded a verdict of felo ds se, or when an unbap-
tised son of a Baptist, or when a person acommu-
nicate, or who ought to be excommunicate (ticklish
point !) had left his corpse to be disposed of by
his relatives and the clergymen, what was the
clergyman to do ? He is the clergyman of a Law-
made church, the Law will sustain the legal
rights of corpses that once were bodies living
under its authority and protection. Must he et-
pose himself to actions at law—the said law being
a very costly personage to deal with—or must he
suffer judgment by default in his own Court of
Conscience? SAMUEL, of Oxford, now that CEIRLES
JAMES, of London, is cushioned on 6,000/. a year,
will teach them how ti square the circle—nothing
could be done, but let the anti-service-reading
clergyman come to the bishop, said he—his dio-
cesan can shelter him, if he refuse to read by his
advice. And "to this," as at another Council,
" they all agreed."

The anti.DENisoN decision was protestedagainsf,
but it was informally done, and so that, though
in the hands of HENRY of Exeter, also came to
nothing. Church Rates were nibbled at, but
nothing was done. Then came the long, the end-
less talk in the Lower House about the Discip-
line of the clergy 1 Discipline of the
spiritual guides of the people discipline
—of those who tell us every Sunday what we are
to think, to say, to do, to be ; discipline—of men
ordained by successors of the Apostles ; discipline
—of those who have chosen the profession by
special motion of Heavenly inspiration ; discipline,
—the word grates on our ears like the works of
discord. We poor laity need it we know, but
surely our men in Holy Orders need no such
profane treatment.
We turn, however, to the discussion itself, and
we find it resolves itself very much into questions
of doctrines or ceremonies. What court shall be
competent to settle theca for the Church. Now
came forth propositions and counter propositions,
resolutions and amendments, without end, till it
again ended in nothing. " The effect—observes
the reporter— of this note was to dispose of the
original motion, and to terminate the discussion
altogether, the tote, in fact, being that the
thing was too difficult to be practically
dealt with. Some of the brotherhood
thought the Judicial Committee of Privy Council
should remit the cases on every question of doc-
trine to a tribunal of bishops ; and reconsider it
after having received their opinion. Others
thought this might place the Judicial Committee
in an awkward " fix," if it could not concur with
the Right Rev. Fathers. Others again, that as
questions of doctrine were only questions of the
accordance of opinions with printed articles of faith,
not of the truth of the doctrines, the legal gentlemen
were the very men to settle that point. And so
they agreed, and debated, and negatived amend-
ment after amendment till they negatived action
altogether—and did nothing.
This seems to have led on to a debate how Synods
should be constructed. Church Synods ought to
be the court of ultimate appeal ; and Church
Synods ought to consist of elders as well
as bishops—so the only Christian Synod mentioned
in the New Testament was constituted, and therefore
so ought our Synods to be The New Testament
and Convocations ! We wish Convocation a happy
issue of an appeal to the New Testament. But
having got so far they must go farther ; others
maintained that in the said New Testament Sy-
nods, laymen, " the brethren," were included,
and ought to be now. No doubt of it ; and if they
once go to the oldest book of precedents, 11Lr.
GLADSTONE will have as good a title to vote in 4
Synod as his Grace of CANTERBURY. We should
like to see
this a fact, if Synods are to be ; but we

presume Mr. GLADSTONE, and all statesmen, will
take care that a State Chursh shalt not be a
master of the State.

It must not be forgotten by fiscal reformers
that there are two perfectly distinct phases of the
Income Tax !uestion, on which contests must take
place, and that those who will on the former
prove valuable auxiliaries will be their most
strenuous and determined opponents in the next
encounter. The people require not merely the
reduction, but the revision of the tax. The assur-
ance has been given that the new firm of DISRAELI,
GLADSTONE, and Co. will array themselves on
the popular side in striking off the war 9d., or
rather the war 11d., for, if the so-called compact
of 1853 is to be adhered to, the charge will be
but sd. in the pound for the financial year, com-
mencing on the sth April next. The Right Hon.
Gentleman the Member for Buckinghamshire has
already given notice that he will on the 17th inst.
move two resolutions—lst, to express the opinion
of the House that taxes which have been granted
in time of war for the purpose of carrying on hos-
tilities, by way of Income Tax, should not be
levied in time of profound peace ; 2dly, that the
settlement of 1853 should in spirit be adhered to.
Should these propositions be sanctioned by the
House, Sir G. C. Duns must at once relinquish
the war 1 ld., producing to the Exchequer no less,
than eleven millions of pounds sterling. The
union of the Derbyit& and Peelites, with the
support which they will unquestionably receive
from the independent members (unless satisfactory
cause be shown to the contrary), must unques-
tionably leave the Government in a very decided
minority, more particularly when the secession of
their ordinary supporters is considered, men who
could not venture to face their constituents after
voting in favour of the "pettifogging quibble."
All the exertions of the Right Hon. Whipper-ix
will be inadequate to bring Hon. Gentlemen, who
have a salutary dread of a speedy appeal to the
country, t) the Ministerial lobby. Sir G. C.
LEWIS then must either yield with a good grace,
or make up his mind to bid a long adieu to the
sweets of office. It is more than probable that
he will propose a compromise—that he will give up
L. portion of his spoil in order to be allowed to re-
tain the remainder, and that 6d., Bd., or even
9d., may be reluctantly surrendered, in order to
avoid the still more unpleasiug alternative of im-
mediate resignation ! But nothing of the kind
can be accepted- If the settlement of 1853 is to
be adhered to it must be in its integrity. The
war Acts must be unconditionally repealed from and
after the sth of April next, and the act of 1853,
which will then come into operation, only autho-
rises the levy of sd. in the pound, with further
reductions, until the year 1860, when, according
to the compact, it must for ever expire as a peace
tax, and be only reserved for some great emer-
gencies, when every possible effort is required to
vindicate the honour or to insure the safety of the
country I

That the Chancellor of the Exchequer may
bond before the storm which he has himself evoked
is more than probable. The remarkable change
of tone and spirit in the leading journal,
which appears to have some mysterious
connection with the Financial Minister, or at
all events to be cognisant of his views and opinions,
indicates such a course. Forgetting the disin-
terested advice it so recently tendered of patience
and submission to their irrevocable destiny, it
now declares that " the British people have wisely
determined to be rid of this most grievous tax.
To get rid of the war 9d. (11d. 1) now, and the
other 7d. as soon as possible, is the ruling desire
of all classes, from peers to the pettiest trades-
men ;" and ib now counsels that the Chancellor
of the Exchequer shall be allowed t) concentrate
his energies on this one achievement, and then
prepare for our complete relief in 1860.
This, however, as we recently declared respect-
ing another very different recommendation pro-
ceeding from the same quarter, is rather au echo
from Downing-street than an original oracle from
Printing-house-square. It does not express the
wishes of the people, who have no desire to enter
on a retrograde policy, or to abandon the fruits
of the glorious victory which they obtained in
1846 by indefatigable labour and unflinching de-
termination. Their objection is not to the In-
come Tax itself, but to its very unfair and un-
equal apportionment. They still feel that a
judiciously apportioned Property Tax would be
the best and the most equitable impost that could
be devised ; and they are well aware that if that
source of revenue be abandoned there will be an
end to all hope of further remissions. The taxes
on knowledge and on prudence must be retained ;
there can be no further reductions in Customs or
Excise duties; the glorious principles of Free Trade
or unrestricted competition can never be fully or
fairly developed. A Property Tax is the only
charge that can be levied on absentees, men who
draw their resources from this country to expend
them in other lands, and who obtain protection
for their properties at the expense of the indus-
trious classes,
andwho
whocanuot sit down
untaxed meal,at
least to a singlesoper
paycent.
more than ever finds its way into the National
Exchequer.

There is but one course for Sir Cr_ C. LEWIS,
and if he be wise he will adopt it forthwith.
Let him at once abandon the ungracious reserve
which ho has too long maintained, and which has
stimulated the national excitement to such a pitch
thc.t he has been rendered wholly incapable of
stemming the torrent. He should, in the first in-
stance, entirely repudiate the " pettifogging quib-
ble 1" Let the Income Tax Acts of 1854 and
1855 be unconditionally repealed from the sth
April. " The slight convenient intrenchment in
the distance" must be wholly dismantled. If it
would be "cowardly and illiberal" to retire be-
hind it,
and we agree with the Times that it
would be both one and other, it is equally so to
retain it "for the purpose of pointing to and
producing an impression on the enemy." He
may then fairly appeal to Parliament for the
Ways and Means of meeting the national expen-
diture. The appeal, if properly and judiciously
made, will be liberally responded to. He
well knows that he does net intend
to give up the Income Tax as a
source of revenue. He cannot do so. Even if
he possessed the will,
he would not have the
power. But if he retains it even for a single
year in its present form he will have a much
more difficult task before him. This was the
course lung since advocated by The Sun, and
which will be proposed by Mr. DISRAELI I
Besides, as Major REED truly declared, " even
if the Government should give up the war 91
the Rork of
the fiscal reformers would only be
begun. They would regard the concession as an
instalment of what they would have to expect from
further agitation." They wilt not endure the
gross and oppressive inequality
of the burden ;
ncr can it ever again be imposed i n its present
shape, no matter bow great the emer& 3
;ency. I
toI
i•',as well t
, therefore, no ao
reapportion it, •
s
have it ready for use at a moment's notice. Thi

is the second phase of the questions in Which fiscal
reformers, in common with the great body of the