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

amongst the Imperial Peers, reflecting honour
upon that august assembly, by the style and title
of HENRY, Baron HAVELOCK, of Lucknow.

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-
sult to England in the person of these poor men
at which it is no wonder that all Italy is asto-
nished. 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 would be given from the state cabin of a
commander's frigate, and, failing attention to it,
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
LOUIS 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.

THE BANK CHARTER ACT.

TO THE EDITOR OF THE SUN.

SlR,—The suspension of the Bank Charter Act of
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, re)istless as
the ocean's tide, would sweep away all legal obstructions
to natural laws. Our trade was increasing under the
influence of free-trade piinciples at an enormous rate,
and must continue to increase at the same rate when
confidence is restored. The wholesale portion if that
trade is carried on by credit money, by bills, which are
engagements to pay legal tender money at distant
periods. When shooks to credit take place, and come
they will sooner or later from one cause or another—and
this time the shock bas come with avengeance from 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, bank-
ruptcy is their fate. The whole commercial world
was, therefore, for legal tender money, and where is it ?
—it is but a drop compared to the ocean of credit
money. In this country (thanks to the wisdom of Lord"
Overstone) there is a law, the Bank Charter Act. 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 panic 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 cart what the rate of interest is." By notes,
they meant legal tender money wherewith to discharge
legally their debts, they did net want them lie mummy,
for in a panic where trade is paralysed less currency is
needed, but, as the one ihing nestle], legal tender
money. The same apprehension of a deficiency of
legal tender money has now again occurred, and a panic
is the natural conJequence—al run for it to protect
themselves against all possille ccntingeec es. Sauve qui
pout, is the general cry, for it is well 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 ♦ery essence of the Act is the prohibition
to issue more legal tender paper money, and yet when
the prohibition—the cause of the panic—'s 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.
pends 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., notwithstanding
all the efforts to increase it, whilst the whole stock
: the country is 70,000,0001., chiefly use 1 for
shopping. Spare a few millions of this by substiintieg
one pound notes, and let them go to America, and con-
fidence will be restored and trade revived. Nay, the
very anticipation of the supply wilt produce these effects
in a great 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 interment will be Lord O•erstone
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 channted by the writer
of the City Money Article in the Times, whom rumour
with its thousand tongues proclaims to be a paid and
faithful servant of the Bank of England.—l am, Sir,
yours sincerely,

HA.ME ft STA NSFELD.
The Grange, Burly, near 0:ley, Nov. 17, 18.57.

TO TUB EDITOS OF THE SUN.

SIB,—It is evident that the public must he prepared
for a series of such articles as that in the Times of ttais
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 ars 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 not yet appeared, with re-
spect to any of the firms 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 gull, which has been
supplied to some establishments, will speedily be re-
turned into the coffers of the Bank. The 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 bill, which have been offered for discount, have, by
the same means, been passed with as much facility as
they c )uld 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
deb' ; but what would have been the conseqaences, no
one can foretell, if, as the Times intimates, the rate
might have been 20 or 30 per cent., without this con-
cession, independent of the universal panic, which they
also adroit might have taken place, if no extea-
sion of the ILnk issues had been advised.
flow the trade of a country, which has been ioc-eas,i
fourfold since the Act of '44, can beimaintained with ut
some hatter /To-rt.:La:ons v 4 ith regard to the currency, is
a matter which will, no doubt, receive the serious con-
sideration of Parliament.—l am, &c ,
A CONSTANT READER.
Nov. 17, 1857.

Prince Deinidoff, the envoy of Russia to the Curt of
Tu*c.tny, has left Vienna for Floreece.
Marshal Thsquet is at present at Pau, and intends to
pass part •f the winter there.
The Duchess of Nassau has just given birth to a
daughter at Wtesbadtn.
The Duke and Duchess of Norfolk are passing the
season at Arundel Castle, surrounded by a select circle
of friends.
The Earl of Yarborough has arrived in town, after a
se:lour of some weeks in Italy. The noble earl and tl
couiiteis go in a few days to Manby Hall, Lincolnshire.
The Earl and Countess of Lanesborough have returned
to Swithland Hall, Leicestershire, where they intend to
pass the winter, from Laneeborough Lodge, county
Cavan.