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

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NEWSPAPER

----)lins to a close, we have the Act whit .---1 ---
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often debated, so skilfully defended , goes:, „ , :- c'
tingly supported by commercial me ''ia ,' ' ' ".: t:',„"' t\he
I which committees have declared pe Get,*rtan , pk''""f
House of Commons sanctioned aga - '''' 'e'''
now for the second time set aside by t poverii- ~..
ment at the earnest supplication of thebusinets ).-3
community. Yet as to the retention of the pre-
sent law we have not the slightest doubt. Its
thorough supporters say that it is perfect for all
times and all circumstances, and that its Present
suspension is a weakness on the part of Govern-
ment, generated by an insane panic on the part of
the people. But even those who admit that a time
may come when the Bank should be allowezi to ex-
tend its issue may still uphold the Bank Charter
Act as the law of the land. They may fairly argue
that the suspension allowed by the Government
yesterday was to save the country from returning
to a state of barter. Gold is the measure of values,
and, as long as it bears a sufficient relation to the
transactions of the country, men may be required
to make their payments in it, or in notes immedi-
ately convertible. But if from any sudden convul-
sion the metal falls short
iis drawn away, and ex-
hausted at any spot, t cannot be expected
that all the business 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 vanished, 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 national
character, and is ruled by nationally imposed laws,
to create fictitious standards of value, in'the shape
of brink-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 issu-
ing a quantity of paper money by its agent, the
Bank, in order that the business of the countrymay
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. In fact, this extension of
issue should be considered as something superadded
to the ordinary conditions of the Bank's existence.
The Act of 1844 was passed to control the Bank,
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-
peterit to the country to remedy any abnormal
deficiency of tho currency by an extraordinary
issue, which the Bauk may be empowered to make,
no., as it were, on its own 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 uece .sitate a speedy appeal to Parliament

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