The Sun.
London, England, 1857-02-06 00:00:00

ME BANK CNARTER ACT.

(From the Derbyshire Courier•.)
"I cannot," says "Mercator," in his last published
letter to the Times, " venture to trespass further upon
your columns, although the subject is not exhausted, nor
have the considerations alluded to undergone a full exa-
mination.

-Unless "Mercator" can adduce more cogent argu.
meats in support of his currency theories than he has
done in his former letters, he will act wisely in writing
no more. He gives us an abundance of strong asser-
tions, and reiterated misstatements of facts, but no novel
reasoning or conclusive proofs of the " solidity" of his
system.
Reluctantly driven by the attacks .made upon him to
refer to the crisis of 1847, he repeats the often-refuted as-
sertion that the commercial distress of that period which
led to the "surrender of the principle of the Bank Charter
Act," was the effect of "banking mismanagement on the
part of the Bank of England." Now " Mercator " well
knows that the Bank Charter Act of 1844 was pro-
fessedly intended to take away all discretionary power
from the bank. The bank was in future to take care of
itself. The Bank Charter Act engaged to take care of
the public. " With respect to the banking business of
the bank," said Sir Robert Peel on May 6th, 1844, "I
propose that it should be governed on precisely the same
principle as would regulate any other body dealing with
Bank of England notes."

The Bank-in 1847 acted according to the best of their
judgment, and the result was that ruin and confusion
were spread throughout the country, and that the "self-
regulating" principle of the Bank Charter Act was sur-
rendered to prevent a revolution.
" Mercator" wants no further answer on this point.
But "Mercator" further refers to the fluctuations in the
rate of interest which have occurred since 1844.
Here, as before, he ignorantly, or designedly, con.
founds capital and currency ; and this fallacy has been
so often refuted that it deserves no further reply.
But he tells the manufacturers and merchants of Eng-
land, for their edification and guidance, that fluctuations
in the rate of interest are "the necessary accompauimeoht:
says, "cast aside all weak apprehensions
indicative
of rapid creation of wealth." "We may
yofare
fluctuations in the rate of interest ; the
progress in
our national prosperity." .
must be indeed un-
reasoning energy in our commercial spirit and
The commercial community
this, t such a statement as Is.
reasoning if they accept
1839
" From 1704 to 16th May, , the rate of discount
was losi than four per cent.
never ezceeded five nor
rate was raised for
some
the pressure of 1839 the .
In
cent but it was reduced to five
months to six per . . 1
in January, 1840, and remained at four or
per cent.
before till the passing of the Aot "
five per cent. as
a •
L rd's Report on Commercial nitre's of 1847
( o . b r 1844, the rate was
In Sep am e , reduced by the
Bank
Bank to 2h per cent., at which rate it continued for 12
months. During this time speculation was fostered—
of the Act of 1844.
almost forced on the public, by cheap money, the result
•
In 1847 money was 10 per cent., and with the " com-
mission" paid on Bills raised 20 and even 30 per cent.
The number of changes between
weendth • 1844 an 1847 (thee
years) was 13 ; and the number bet f
e panic o
1847 and October, 1855, amounted to no less than 23 in
number. The fluctuation was between two and seven
per cent.
Had England no prosperity,—WaS no progress made
from 1704 to 1839, with its steady rate of interest ! Has
commercial prosperity dated from 1844, with its Mercator
fluctuations of the rate of discount ?
It remains for the commercial community to say
whether they will accept the flo,,vine sentences and
fine words of "Mercator" as equivalents for the prat.
tical inconvenience and positive loss which their fluc-
tuations entail.
Should they remain supine, the Bank Charter Act
must
bitter expe-
must remain au incubus on the country till it
rience hay taught the mass of the people to understand
the Currency Question.

EMIGRATION TO AUSTRALIA.--LIVERPOOL, Thursday.
—The Black Ball line of packet ship Lightning, Capt.
Enright, sailed from the Mersey this afternoon, tor Mel-
bourne, with a pretty large mail, 320 passengers, and a
very large carte of merchandble on freight. The
Broughton Hall, and the Salem, elkptain Flynn (of the
White Star line), have also sailed for Mehourne, each
with a fair complement of passengers and cargo on
freight.
MARINE DISASTERS AND Loss OF 14/113.—LivER.
head to-day reports a foreign vessel, supposed French,
hraosoLb,eeTnbutorteadlaly.--"y wrecked:A telegraphic despatch from Holy.
at the back of the Head, and
only two lives out of the entire orew have been saved.
The cargo, consisting of Cognac brandy, olive oil, and
candles, is washing about the coast, and very little likely
to be recovered. The Warratah, from Savannah to
Liverpool, was diemasted and abandoned, Jan. 21, is
long. 26; crew landed to-day at Queenstown.

THE WEATHER—SUN Ornor, FEBRUARY 6.
THRRITOMTTER, TN THE SHADE.
44 -highest &was noon yestord*Y-
-4t -invest this morning and during the night.
48 -.this :lay at noon.

PAaov TrINF, 29.95—falling.
WIND. S.W. in the morning; no•.v W. by S.—Light,
wish mild, cloudy, and partially eunshiny weather.

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