The Sun.
London, England, 1861-03-18 00:00:00

TILE BANA CHARTER ACT.

Now that the aim of the Bank Charter Act, that
the rate of discount should be made to fluctuate
with the influx or efflux of gold, has for the first
time during a period of 17 years been avowedly dis-
regarded, it is vain to speculate on the probable
movements of the Bank, especially at the end of
one of the quarterly periods when the currency is ab-
sorbed by the payments to Government. People
naturally, however, still look to precedent, an fancy
that the present attempt of the directors to resume
their exploded functions of regulators of the cur-
rency will prove exceptional, and that a return to a
normal course will not be long delayed. The stock
of bullion shown in the return of last Wednesday
was considerably in excess of the amount held when
they thought it necessary to advance their rate from
6 to 7 per cent., and only about a million below the
total in December last when their charge was not
more than 5 per cent. Most probably there has
since been a further considerable increase which,
unless they previously take a downward step, will
render their next accounts still more strikingly ano -
malous. It is true that a defence of their course
has recently been attempted by setting aside the
reliable figures of their own return and citing those
of the Custom-house imports and exports of the pre-
cious metals, which, although wholly worthless for
such a purpose, happened to make it appear as it' a
heavy drain was going on, and that this return for
the past week would present an outflow of £958,993
against an influx of £469,434. It may be hoped,
however, that no such idle statistics will again be
used to introduce confusion into a question that is
inherently simple. If the weekly Bank return is
to he accepted by the public in the sense desig-
nated by Lord 0 verstone when he termed it the
" indicator" by which they might regulate their
proceedings, let it be consistently regarded in
that light, but if, on the contrary, it is to be set
aside by any haphazard figures that may chime in
with a crotchet of the moment, its publication
should be suppressed, since it can promote nothing
but delusion. When the movement to 8 per cent.was
made the argument for its condemnation was that
the drain of bullion had already been entirely
checked, and that, owing to the previous rate being
considerably higher than the rates prevalent all
over the world, a rapid influx must be inevitable.
That result was witnessed, but the retort then was
that it was caused solely by the sudden movement
from 7 to 8 per cent., which instantaneously turned
the tide. 'file value of this assumption, however,
will be easily estimated by all who are accustomed
to watch extensive phenomena, and who know that
great revulsions are not produced by a single petty
antecedent. The advance from '7 to 8 per cent. must
have had a very slight influence compared with the
previous movements from 4 to 7 per cent., yet while
the former " failed to stop the drain," the latter, ac-
cording to its advocates, not only stopped the out-
ward rush, but turned it to an upward tide of re-
markable force. Reason must be useless in dealing
with such fancies. The fact is that the principle of
advancing the rate of discount so long as gold was
going out had answered its purpose, as it ever will,
and that the further movement when gold was
coming in was an idle and to some extent a mis-
chievous act of supererogation. It was, moreover,
without the excuse of any external alarms, such as
might hurriedly impel men to rush to unusual pre-
cautions, since even the drain which had existed
and been surmounted had been mainly created, not
by extravagance, but by solid purchases of realis-
able securities or produce. The rate of 8 per cent.
has not caused us to import a single pound of cotton
less, since the shipments made to us from Mobile
and New Orleans have been wholly irrespective of
any question about our terms of discount. Its sole
operation has been to create vague alarm through-
out the country, to interrupt the confidence previ-
ously felt in the weekly Gazette returns as a guide
to prudent observers, to afford an extra pretieixt ftoo
the non-settlement of accounts, and finay,
borrowers
induce our people needlessly to become
of foreign capital at 7-1 per cent., and to cause in
that manner national loss.—Times' City Article.

"The Chamber of Nobles in Prussia!" says the
Nord,"has placed itself in open opposition to the
Government and the Chamber of Deputies, having
rejected by a large majority the bill for allowing
civil marriages, and there is no doubt that it will
also reject the bills for equalising the land tax,
which the Chamber of Deputies has adopted. What
will be the consequence of this conflict ? Is not the
party which dominates in the Upper Chamber pre-
paring, by systematic opposition, which renders
constitutional government impossible, the most
serious dangers for Prussia? Already has that
party placed itself, as it were, out of the pale of
the nation by endeavouring to rise above it. We
must deplore, for the sake of all, such imprudent
conduct."
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