The Sun.
London, England, 1857-07-16 00:00:00

CURRENCY AND WITCHCRAFT.

(From, the Derbyshire Courier.)
While the Bank Charter Act Committee is
quietly pursuing its investigations we patiently
await its award, convinced that good must arise
from the discussion of an important public ques-
tion, and that, at the least, much useful statistical
information will be elicited. As we never expect-
ed that this committee would "set the matter at
re-t," we sha`l not be disappointed if it fails to pro-
pose adequate reformations of our currency abuses;
and should its decision be decidedly adverse to our
convictions, while we lament that such should be
the case on the nation's account, it will not induce
us to relax in the lelst degree in our efforts to ob-
tain-Currency Reform.
In the meanwhile, however, rumours penetrate
to our remote locality that the Bullionist part of
the committee are not likely to have it entirely
their own way. Lord Overstone himself believes,
it is said, that his craft is in danger, and has pre-
sented himself this week before the committee as
a witness to confirm the wavering courage of the
Chancellor, and scatter to the winds the ingenious
sophistries of those who refuse to worship the gol-
den'image which the Nebuchainezzar of Lothbury
has set up I
The Times writer of the City article appears to
be like Lord Overstone, uneasy in his mind.
" Soler dulness always loves a joke," whereby our
City correspondent lifts up the heavy heels of his
metallic understanding and indulges in unwonted
antics at the expense of the Currency Reformers of
this realm. " The public," he says, "have been
recently astonished by the prevalence of the belief
.
uliwttelicrsft:" And he proceeds to class the be-
lievers in -anti-ballioniat principles with those who
believe in witchcraft.

Every one knows that we currency men have led
the life of "toads under a harrow" since the Times
began to smash us. How any of us survive to this
day is a wonder. But genine' currency man is
remarkably tenacious of life. He cannot be wa:led
out by floods of nonsense, or pounded to death by
heaps of abuse. And so it comes to pass that our
friend of the Times while he accuses us of Witch-
craft, expresses his astonishment that currency
witches abound. "In the commercial world," he
says, " where all is thought to be plain hard sense,
professors of alchemy are to be found at every cor-
ner," to wit, your currency wizards. Why hero
truly is is wonderful thing ! After all that the
Peelites and the Times have done to enforce ti-e
conclusions of " plain hard sense," " professors in
alchemy," that is to say, currency reformers, " are
to be found at every corner," and to increase the
marvel we are further told that they " not only
boldly proclaim their faith, but are widely regarded
as financial authorities of a high and impenetrable
nature."
We believe this statement to be so far true as
that there is an increased and increasing opinion in
the commercial world that Peel's monetary system
is a bad one.

Our contemporary goes on as he thinks to fight
the battle of " plain hard sense" and " common
people" against the modern " professors of al-
chemy."' We give his words
"To common peOple nothing can seem plainer than
that an excess of expenditure over income cannot be kept
up indefinitely, but must sooner or later produce bank-
ruptcy. If a nation runs a career of luxury, and absorbs
foreign products of all kinds without manufacturing a
sufficient amount of goods such as foreigners will ac-
cept in exchange, they must, of course, part with their
gold and silver, and when all this is exhausted trade
must come to a stand. The entire doctrine of the
foreign exchanges is here summed up, and but for the
interminable pamphlets and speeches of the mystery-
men, who will not let a plain matter stand, the world
would never have had an idea that there are any depths
of finance to be sounded beyond the simple rule of keep.
ing your outgoings within the limit of your incomings.
But the gentlemen in question, whose name is Legion,
have agreed upon a theory that this necessity, although
it may apply to individuals, has no bearing on the
mutual intercourse of nations, and that by the use of
certain methods, with regard to which they none of
them coincide, each insisting that he has a specific of
his own, a nation may enjoy the power of purchasing the
goods of foreigners to any extent. However great may
be the demand for money, enough can constantly be
created to meet it, so that, no matter what quantities
may be sent abroad, the supply at home shall always be
equable."
Poor Mr. Bull is here rather hardly dealt with.
But John is a far more enduring man than the
much-enduring Ulysses of the father of poetry.
John, said the political economist, after Peel's
bill had brought the country to the verge of ruin
in 1822, what have you been about ? You've ruined
yourself by over-production. You have worked too
hard, been too industrious. You have over pro-
duced so much bread, and young John at Manches-
ter has over produced so much clothing, that you
and he are, as a matter of course, half fed and half
clothed. Very true, said John, no doubt it is so.
By and bye John was told that over-population
was the source of all his woes. Wbat business had
John, a mere working man, with a wife and six
children. Very true, again, said John: Parson
Malthus told me, when I went to put in the banns,
that it was contrary to the law of nature for a poor
fellow like me to be married. I wish I had taken
his word.

Well, having arrived at 1857, our friend of the
Times tells John that over-consumption is ruining
him.

" If a nation runs a career of luxury, and absorbs
foreign products of all kinds without manufacturing a
sufficient amount of goods such as foreigners will accept
in exchange, they must, of course, part with their gold
and silver, and when all this is exhausted trade must
come to a stand."

Probably John will admit this also, confess that
he is an enormous glutton, that ho has wasted his
substance with riotous living, and that, in short,
over-consumption has raised discounts to 6 or 7
per cant., and left him without money enough to
carry on trade.
But we have heard nothing but congratulations
from the Times' writers, for several years past, on
the increase of our exports. Foreigners appear
quite willing to " accept any amount of goods
with which we can supply them, and the iudus-
tiious producers of this country are from year's
end to year's end hard at work manufacturing for
foreigners. Whatever we require we can buy, and
we could as easily buy gold and silver with our
commodities as any other things, were gold and
silver replaced in their natural position as mere
commodities. It is because we have—and the com-
mercial necessities of the nation require that we
should have—a large circulatingmedium, consisting
partly of paper and partly of gold, the whole of
which circulation is made to fluctuate as the gold
against which a part only of that circulation is issued
fluctuates, that we are threatened with "bank-
ruptcy." Hence our currency is contracted, our
exports indeed increase but they are sold at prices
which are unretnuuerative, until the fOreigner,
finding that it pays him to import gold into Eng-
land, brings back the basis of our currency and
obtains an enormous profit at our expense.
The paper money system, says the Times, is no
better than modern "alchymy" yet the paper money
system supported this country through the un-
parallelled exertions of the war from 1797 to 1815,
enabled the nation to prolress and prosper, and
maintained au equable supply of money at home,
and a settled rate of discount, therefore all those
desirable and propitious effects are the results of a
system no better than " alchymy."
The Times and the Bank Charter Committee will
find that the currency men are prepared not only
to state their grievance, but to point out the
remedy.
By Lord Overstone's Bill of 1814, 14,000,0001.
of Bank Notes are nominally allowed to be issued
against securities. Let that which is nominal be
made a reality. Lot these notes be the representa-
tives of national securities, and not convertible into
gold at a fixed rate, and we shall have a basis for
our circula,ing medium not liable to be exported
or withdrawn.
The Bank of England might further issue notes
to the amount of say, 6,000,0001. convertible into
those security notes, or national notes, or exchequer
notes (we care not what they are called) into gold
at its market price.
Let the Times rest assured that the Bank
Charter Committee will go through their work
'' without flinching ;" and let the Times remember,
and let the country remember, the ridiculous mis-
takes which their writers have made within the last
few years in treating of monetary matters. Let the
Times recollect how, in 1848, they said that the
proceedings of the Bank of France were such as
would inevitably induce a " national bankruptcy,"
and how a few months after they admitted that
these measures, by which the power of paper money
was called into action, had " saved the country."
Let the Times remember how they told us in 1851,
that the rate of interest in this country would
settle down into about 31 per cent—and that since