The Sun.
London, England, 1861-01-22 00:00:00

THE SUN, 'LONDON, TUESDAY EVENING, JANUARY [22, 1861.

course, now that for the following remissions we
have a tenpenny tax upon our incomes ! that
during 1859, in the shape of those duties now
repealed—
Butter—produced
Cheese
Eggs
Tallow
Oranges and lemons 33,000
Silk
Leather gloves
Artificial flowers
Musical instruments
Watches
Having enumerated which, and a variety of other
duties levied upon articles of a similar charac•
ter—Mr. M'CuLLocu says, "We are clear
that not one of these articles should
have been exempted from duty." It is not
Mr. BUSFIELD FERRAND, or Mr. BUSFIELD FER-
RAND'S ghost, who is pronouncing this opinion to
us oracularly. It is Mr. M'CuLLocs who writes the
words deliberately in his last edition of his great
" Commercial Dictionary ;" and he adds, " The
duties on butter, cheese, eggs, and tallow, were
so very moderate that their influence over the
prices of the articles was practically imperceptible."
Observing still farther—" We have yet to learn
that there are any articles better fitted to be taxed
than silks, gloves," and so forth, than artificial
flowers, let us say ! ! or musical instruments ! ! !
Nay, Mr. M'CuLLocli goes on to lay it down
axiomatically that—" No article, unless it be the
raw material of a manufacture, should be allowed
to be imported except under a duty of 10, or 12, or
15 per cent. This," writes Mr. M'CuLLocu,
" would not only be a much safer, but also a much
sounder policy than the accumulation of oppressive
duties on a few leading articles"—[such, for example,
as TEA or TozAcco]—" or on Income." Particularly
upon INCOME mulcted to the tune of 10d. in the £1
—and this tenpence drawn from it according to the
present cruel, unjust, grinding, and demoralising
mode of assessment.

Take into account for a moment the mere ques-
tion of the demoralising influence of the Income
Tax as at present assessed.
The income tax in the old war time, Mr. PITT'S
income tax, the income tax raised to carry
on that tremendous struggle during fifteen
years against France, under the Consular and
Imperial rule of the Great NAPOLEON—that
old Income-tax of the famous war time went as low
as incomes of £5O per annum. Our present Income-
tax going no lower than incomes of £lOO per
annum. Well, more than half a century back,
when England was already oppressed by this
coarse, clumsy, brutal device of " raising the
wind" for an emergency caused by the neces-
sities of a vast warlike expenditure—what was
the result produced ? Let the current num-
ber of the Quarterly answer with one
trenchant sentence—a sentence that is two edged—
that cuts both ways—at our fathers and at ourselves!
" Under Mr. PITT'S income tax, " writes the
Reviewer, " the limit of exemption was first fixed
at £6O, but it was found necessary to lower it to
£5O in consequence of the extraordinary number
of people whose incomes, by a strange coincidence,
happened to amount to £59 10s. ! " And
now with the income tax, not of Mr.
PITT, but of Mr. GLADSTONE with this
cruel, unjust, grinding, demoralising Income
tax of tenpence in the pound—what is the calcula-
tion made by Mr. M'CuLLocH in regard to this ?
Why, Mr. M'CuLLocrf estimates that false returns
are given in by more than one half of the classes
assessed under Schedule D ! Mr. BABBIGEN cal-
culation, going the length of asserting that, in re-
gard to the same schedule D, when the income tax
was fixed at 7d. in the £l, the whole schedule D,
taken together, did not pay more than at the rate
of Fourpence !
Authenticated instances are given, in fact, by
the Quarterly Reviewer, illustrative of the flagrant
character of these false returns. It is said, for
example (p. 242), that " one gentleman (?) had
returned £3,000 to the income tax, having actually
earned £9,000 !" Another case is instanced in
which—" A respectable (?) firm returned £B,BOO as
their earnings in five years, having really earned
£31,432 !!" But—beyond even this—" Another
legal worthy," we read, "took a still higher flight
of genius, and, having earned £2,000 in the year,
returned £2OO to the income tax, and claimed
compensation of the Treasury on an income of
£3,000 !! !" These astounding contrasts, it may
be observed, were brought to light in reference to
the Proctors' incomes—at the time when the Proc-
tors of the old Probate Court sent in their claim
for compensation. We all know perfectly well,
besides, what the conscience money means—the
conscience money sent from time to time to the
Chancellor of the Exchequer from repentant letters
of the alphabet ! It is a cruel system altogether :
a cruel, unjust, grinding, demoralising system,
and it behoves us that we should have done
with it !

The recent rise in the rate of discount to seven
per cent. now begins to show its ruinous conse-
quences on commerce, and the producing interests
of the country very generally. We have so
often pointed out the injurious effects of PEEL'S
currency crotchets of 1844, that we shall now
only direct attention to Mr. HAMER STANSFELD'S
letter on the subject. It will be seen thereby
that the great apostle of the Bullionists one day
says that the excessive rise in the dis-
counts is of no consequence to people in trade while
but yesterday he states that a firm of long standing
has been compelled to stop payment to the tune of
some £400,000 ! Now which opinion is right ?

THE PRINCE OF WALES.—CAMBRIDGE, Monday.
His Royal Highness, with the Hon. M ajor-General Bruce
and Captain Grey, attended Divine service on Sunday
morning at Madingley Church. The Rev. Thos. Field, of
Emmanuel College, Cambridge, and vicar of Madingley,
officiated. The church, which is within the demesne of
Madingley Hall, contains many monuments to the mem-
bers of the Hinde and Cotton families. His Royal High-
ness remained at Madingley throughout the day.
THE DUKE OF SUTHERLAND.—The bulletin
received from Trentham yesterday announces that " the
duke is going on well, and had an excellent night." During
the illness of his grace a despatch has been daily forwarded
to her Majesty at Windsor Castle, conveying a medical
report of the condition of the noble invalid.
THE LATE LORD ELPHINSTONE.—This deceased
nobleman, who died a few days since at Bournemouth, only
succeeded his uncle, the late Governor of Bombay, in July
last, in the Scottish barony. The late peer was the only
son of the Hon. Admiral Chas. Fleeming Elphinstone, son
of John, 11th Lord Elphinstone. He was born 11th Dec.,
1819, and was unmarried. His lordship was formerly in
the l'ith Lancers, and at the close of the late war held the '
rank of Lieut.-Colonel commanding the 2d Light Dragoons
of the German Legion. The deceased nobleman is suc-
ceeded, we believe, by Commander Wm. Buller Fullerton
Elphinstone, of her Majesty's ship Hornet, now 15th Baron
Elphinstone, eldest son of the late Lieut.-Colonel Jatne. D.
13. F. Elphinstone, by his second marriage with Anna
garia, only child of the late Sir Edward Buller, Bart., of
Trennant, Cornwall. The present peer is in his 33d year.

THE RIVER STEAMBOAT TRAFFlC.—Yesterday
the steamboat traffic both above and below bridge, which
was totally suspended during the severe frost, was resumed,
and large numbers of persons availed themselves of the
accommodation, in order to avoid the muddy streets, in
passing between the City and the Nest-end, The half-
penny boats had a full share of passengers, but the iron
boats and those of the City Company had a decided advan •
tage, in consequence of their calling at all the intermediate
piers, .• ,

Is THE SEVEN PER CENT. BANK
ifINIMUJI RATE OF DISCOUN I NOT Alf EVIL ?

TO THE EDITOR OF THE SUN.

SlR,—Does the Times truly represent the times when, in
its City Article of the 11th instant, it says:—

" The absence of inconvenience with money at 7 per
cent. is a subject of remark on all sides ; but it would be
hard for anyone to point out a reason why the existing
rates should be regarded as an'evil ?"

Is it not inconsistent in the Times, whilst showering
down blessings on the destitute, whose afflictions are
aggravated by the unusual severity of the season, over
which the hand of man has no control, to allow its noble
exertions on behalf of suffering humanity to be counteracted
by the assertions of its City Editor that a 7 per cent, rate of
discount, which must inevitably increase the number of
unemployed, is no evil ? Do we not find in the same
columns reports from the manufacturing districts such as
the following : _ _

" LICICESTI3R.—LittIe progress made in business for the
new year. The state the money market has assumed, and
the increased rate of discount, wit the prospect of a still
further advance before us, creates in the manufacturer a
tardiness in resuming making ; therefore the operatives are
t• a great extent short of employment. There is no giving
way either in the yarn or wool markets, which are at pre-
sent uninfluenced by these oo.uses.--.Leicester Journal?"

Is it no evil for manufacturers to be obliged to discharge
their work people, because, with money at 7 per cent.,
majiufacturing is not remunerative !
Is it no evil for the operatives to be thrown out of work
at this bitter season?

Is it no evil to the owners of the Funds and other
interest-bearing securities to have their property depre-
ciated some £50,000,000, in consequence of the advance of
the rate of discount, and, if under the necessity of realising,
of having their loss made the gain of the owner of money?
Is it no evil for the public to be called upon by the
Chancellor of the Exchequer to pay additional taxes, to
make up a revenue which must become deficient from the
stoppage of trade," consequent on the medium for carrying
it on being at 7 per cent. ?

Supposing tkat only bills of three months' date, to the
amount of £20,000,000, had to be discounted at 7 per cent.,
being 2 per cent. hight.r than the almost uniform maximum
rate of the Bank of England prior to the Aot of 1844, there
would be a transfer of £lOO,OOO from merchants and manu-
facturers to owners of money, from productive to non-
productive classes. Is that no evil P
When such outrageous fallacies are published by the

leading' journal, and circulated in most of the country
newspapers, it is time for the opponents of the Act of 1844
to disabuse the public mind, and to make use of the power
which that law foolishly gives them.
Were but a few such firms as Messrs. Ovorend, Gurney,
and Co. to claim notes for their deposits and gold for their
notes, the act would have to be suspended and then re-
pea'ed, as Ministers would have to apply to Parliament for
a bill of indemnity, and no Parliament could uphold a law
which in that case would have been suspended three times

in 15 years. And what would be the immediate conse-
quence of suspending the act of 1844 ? The directors of
the Bank of England would be at liberty to compete on
equal terms for gold with the Bank of France, by being
enabled to issue the same proportion of notes to gold, which
they can ; and further, they would be at liberty (as they
were before the Act of 1844) to issue any amount of motes

which they thought prudent, considering their liability to
convertibility, and the publi% would only be too glad to
take them as perfectly good securities for the transfer of
equivalent values of property.
It is with property and services that debts are at bottom
liquidated, for money (the the legal instrument for dis-
charging a debt) has first of all to be obtained by giving
property and services in exchange for it.
Empower the direct ors at the same time to issue one-
pound-rotes to serve as substitutes for sovereigns, on the
terms of the asnexed petition, so as to set at liberty some
120,000,000 of gold, and the rate of discount will rapidly
fall to 5 per cent. ; commerce will revive, manufactures
flotrish, and operatives again be fully employed.
I am, sir, your obedient servant,

HAMER STANSFELD.
High&ld, Windermere, Jan. 17, 1861.

" TO THE CIVIIEN'S MOST EXCELLENT MAJESTY.

"We the undersigned bankers, merchants, and other
liege subjects of the realm, considering that the present
foreign drain of gold most seriously deranges the domestic
currency of the country, thereby paralysing trade, throw-
ing the industrious classes out of employment, depreciating
property, and increasing unnecessarily the burdens of the
people, most humbly pray that your Majesty will be graci-
ously pleased, with a view to counteract these evils, by
Order in Council, to empower the Bank of England, until
the sense of Parliament can be taken, to issue one pound
notes to serve as substitutes for sovereigns whenever the
Bank minimum rate of discount shall exceed five per cent.,
on depositing Government Stocks for two-thirds and gold
for the remaining one-third of the amount of such issues as
a guarantee for the convertibility of the notes, and on pay-
ing interest at the rate of four per cent. to the Exchequer
for the benefit of the State, on the two-thirds of which they
would have the beneficial use, or on such other terms as to
your Majesty shall seem fit.
"And your petitioners will ever pray, &c."

A suspension, which it is hoped and believed
will prove only temporary, took place on Saturday of one
of the oldest and most respectable firms in the Levant trade
—Messrs. Francis Ede, Son, and Co. Their liabilities are
supposed to range between £250,000 and £400,000, but an
impression prevails that in the course of a day or two
arrangements may be effected by which all engagements
will be provided for. The difficulty is understood to have
arisen mainly from the means of the firm being at this
period of high rates of discount locked up to some extent in
the local loans to the Turkish Government on the security
ef Customs' duties, which come in slowly,—Times City
Article of yesterday, 21st January.

L A E
E

(REUTER'S TELEGRAMS.)
AUSTRALIA.
PLYMOUTH, TUESDAY.
The Wellesley, Captain Smith, from Melbourne
on the 4th Nov, has arrived in the Channel, en
route for London. She brings 33,000 ounces of
gold. She landed 11 passengers. A great robbery
has been committed on board.
She left Melbourne November 4, rounded Cape
Horn December 13, and crossed the Line Decem-
ber 29.

Much ice, some of a very gorgeous appearance,
was observed in the South Pacific. One ice island
seven miles long was passed, and one berg grazed.
In fact, the ship was obliged to heave to on several
occasions to avoid collision.
The golddust brought by the Wellesley is 33,000
ounces, valued at £132,000, and with passengers
100 ounces, valued at £4OO.
The cargo consists of 1,274 bales wool, 114 casks
tallow, 42 casks hides, 269 bales leather, 59 bales
sheep skins, 2,550 bags copper ore, and 60 packages
sundries.

She embarked 50 passengers, one of whom, Mr.
Henriquez, died on the passage. She also lost Mr.
Eyre, a midshipman, by death.
A considerable numer of small vessels were seen
in the South Atlantic. The Bucephalus, homeward
bound, from Valparaiso.
The Wellesley has landed three mail bags here.
The Roxburgh Castle, from Melbourne, has
passed up Channel.

PARIS, JAN. 22.

The Moniteur in its bulletin of to-day says :
" The presence at Gaeta of the Ministers of Austria,
Spain, Saxony, Bavaria, and Portugal, was not
foreign to the resolution of the King to continue
his resistance."

The Moniteur also states that all the foreign
vessels, even those chartered by the King, have left

Gaeta.

PARIS, JAN. 21.

The Patrie says

A rumour is current that England, France,
and Russia are on the point of coming to an under-
standing in order to bring aboat a solution of the
Danish question by amicable means.
Up to this time there has been no manifesto from
Francis 11., to the effect that he refuses to surrender
Gaeta; but as the fire was yesterday resumed on
both sides, his intention to resist to the last can no
longer be doubted.
It is by mistake that a despatch announces the
corvette Mouette as still remaining on the Gaeta
station. There is now no station at Gaeta, and
the Mouette has gone to Naples.

ROME, JAN. 21.
The Russian, Prussian, and Portuguese Ministers
hare returned here from Gaeta.

There now remain at Gaeta the Papal Nuncio
and the Ministers of Austria, Spain, Bavaria, and
Saxony.

PESTH, JAN. 21.

The following resolutions of the Emperor have
been despatched to the Stadtholder of Buda by the
Chancellor of Hungary.
" The election to the Committee of the Comitat
of those persons who are refugees from the country
for political reasons is null and void. Severe punish-
ments are to be inflicted on all persons who refuse
to pay the taxes.

"The Comitats are prohibited from making any
ordinances in reference to taxes,

" A vote of the Diet alone can bring about a
change in the tribunals now existing, or in the pre-
sent civil and penal codes.
" The practical establishment of the institutions
granted by the Constitution of 1848 is prohibited,
and the public functionaries are ordered to oppose
it by the most severe measures. In case of refusal
the Commitees of the Comitat are to be either sus-
pended or dissolved. The assemblies of the Comitat
have no executive power, and are consequently not
to be allowed to issue ordinances.

" The Imperial diploma of October 20 will, how•
ever, undergo no modification, and the concessions
granted to Hungary will remain unabridged."

PESTH, JAN. 22.

The Imperial manifesto of the 16th inst. was read
in yesterday's sitting of the Committee of the
Comitat.

It was unanimously resolved to adjourn the dis-
cussion of the same to the General Assembly of the
Comitat on the 11th February.

VIENNA, SAN. 22.

The Grand Cross of the Order of St. Leopold has
been conferred on Count Apponyi, the Austrian
ambassador at the Court of St. James.

FRANCE.

PARIS, JAN. 21.
BOURSE, Jan. 21.—The amount of business still
continues very limited, but the market remains
firm at the quotations of Saturday, notwithstand-
ing the arrival of the English funds with a decline
of per cent. Threes are now at 67f 25c ;
Mobilier, 652 f 50c ; Orleans, 1,371 f 25c ; Northern,
952 f 50c ; Strasburg, 590 f; Southern, 503 f; Medi-
terranean, 905 f; Austrian, 463 f 75c; Lombard,
462 f 50c. The following were the last quotations:-
41 per per Cents 97 Credit F3ncier 925
Do. end month.... 96 801 Belgian 41 9B 50
3 per Cents
Do. end month 67 401 Roman
Bank Shares;.. 2875 —) Austrian .. 6Bi
Credit Mobilier 662 50 ) Spanish Threes.... 47i
Do. Account 660 ) Home Debt