The Sun.
London, England, 1857-06-26 00:00:00

THE BANK CHARTER.

The Bank Charter Committee continue their heavy
labours, but, according to report, no revelations have
thus far been arrived at to encourage the delusion that
the means of este' lishing a " sufficient currency," such
as shall keep the supply and demand for money always
independent of any disturbasice from the foreign ex-
changes, are destined to be arrived at. The evidence
taken is likely to prove voluminous, yet, however weary-
ing may be their task, it is to be hoped the committee
will not break up until they have given ample latitude
to every gentleman anxious to uofeld ar.y idea on the
subject. With the wh••le arguments of the various
schools comprised in one book it will be in the power of
any person, even if the committee should abstain from
reporting their own conclusions, to form a clear judg-
ment, and the public will be relieved from a continuance
of that issue of pamphlets—each propounding some (lai;
ous and infallible system, wholly overlooked by every
previous inquirer--.vhich has been kept up in an
uninterrupted stream for the past twelve years. It will
create surprise shoul 1 it be found that the examina-
tions have brought out a single opinion or statement
which had not years previously been answered over
and over again, but an available receri of them
will be invaluable towards stopping similar repeti-
tions for the future. There is one suggestion, how-
ever, which, although more specious than most
others that are put forward, has been less discussed than
any, to which the Co in trittee will perhaps give pat ticular
attention. It is founded on the cry of free trade, which,
according to many recent signs, seems as liable to per-
version in the commercial as that of liberty in the poli-
tical world. The question wby should there be a
monopoly of the power of is.oeing notes ? "Let us," it
is said, " have free trade in money as in everything else."
The days of restriction and prohibition are passed, and,
if a private individual, or a body of individuals consti-
tuting themselves a company, choose to issue their pro-
mises to pay, and the public choose to receive them,
why should the law interpose a bar and declare that such
a privilege shall not be allowed to any establishment
other than the Bank .of England ? Even if it be found
impossible all at once so far to discard old prejudices as
to refrain altogether from the paternal system of State
interftrence in such matters, surely, it is said, it would
be enough to stipulate fur a deposit of certain recognized
securities, such as Government stock, real estate, &c.,
with an ample margin. Against such arguments can any-
thing be urged To the astonishment, perhaps, of those
by whom they are brought torivard, the answer even in
the Times must be that they are indisputable. There ought
to bano legal restrictions whatever on the issue of notes.
If this is what is meant by !rep-trade in "money" the
wishes of the advocates of that .piinciple might at once
be granted. In strict consistency every man ghoul fbe
at liberty to make what promises he pleases, leaving the
public also at liberty to place faith in them or otherwise
at their own discretion. But is it certain that this is all
that the agitators of the question demand ? Of course
each notes must not be a legal tender. If the Govern-
ment force the community to receive notes as a legal
tender they are bound to take upon themselves the re-
sponsibility of insuring that they shall, under all con-
ceivable cucomstances, be found convertible into the
gold they purport to represent. That precaution is taken
with regard to the notes of the Bank of England, and
it is capable of demonstration that under no imaginable
contingencies can the exchangeable value of the issues
of that establishment be for one moment jeopardised.
But 14,000,0001. or thereabout, which is the issue
allowed to the Bank, has been clearly ascertained to
be the limit to which a currency based merely on
securities can be carried with the certainty that its part
value in the money-market will be maintained. Hence,
as the Government cannot guarantee any further issue
that may be made except against a deposit of gold
of equal amount, they must of course refrain from
assuming any liability with regard to it. To prevent
misconception it must therefore be provided that all
notes except those of the Bank of England should be
stamped with the words " not a legal tender," or if this
should be deemed an unjustifiable compulsion by the
extreme sticklers for license, the difficulty might be
equally well met by the words "a legal tender" being
prominently affixed on the Bank of England notes, leav-
ing the public to discriminate the probable value of the
paper on which this inscription is wanting. Such a pro-
vision in connexion with the existing powers of the cri-
minal law would undoubtedly sup?ly all the protection
the community are entitled to insist upon. In case of
attempts to pass other notes than those of the Bank of
England as " money" the Courts of Justice could at
once meet the evil. If any person asks Mr. A. for his
note there can be nothing wrong in the transaction, but
if Mr. A gives his promise to pay on "demand to a customer
across his counter, who through being a foreigner
or an ignorant person is led to assume that he has
received a legal disbursement, then, of course, Mr. A.
must hold himself liable to sustain the penalties which,
as the law already stands, apply to all analogous pro-
ceedings. A strict enforcement of the penal clauses of
the Bankruptcy Act against all who Should be found
to have issued notes payable on detnaad under circum-
stances of actual or approaching insolvency would like-
wise assist to keep everything straight: That the first
introduction of this kind of. freedom would be followed
by many abuses and much mischief cannot be doubted;
and to most persons it will be a question whether, until
the general popul ttion become hotter informed on finan-.
cial matters than at present, these results would be com-
pensated by the fanclul advantages of rounding off a
theory. For the moment the joint to be understood is '
simply that the cry against the supporters of the Bank
Charter Act, that they are opposed to the principles of
commercial freedom whenever those principles clash with
theiryiewo, isaltogether a mistake. Perfect free trade in
money. exiets already. The profits of the 14,000,0001. issue
which, apart from gold and silver, is all that can ever
be really regarded as money, are divided among the
public, since heavy deductions on account of it are made
by the Government from the Bank. • With respect to
money beyond that total, every man is at liberty to
make as much as he pleases—or, in other words, to take
gold and silver to the Mint •whenever .he can get it,
where it will be made into money for him at the public
expense. With the golden peetnise3 of A, B, cr C, issued
on their own credit or on the security of stooks, shares,
houses, colonial produce, &c., the term " money" has
nothing to do. If, however, there is a class of persons
who would place them in that category, and who would
desire to have opportunities of being furnished with an
unlimited supply, it must undoubtedly, as far as our
ideas of freedom are concerned, be regarded as a pity
that there should be any legal barrier to their being
gratified.—Times' City Article.

MARKET NEWB,—(This Day.)

CORN EXCHANGE•

Notwithstanding that the supply of English wheat in
to day's market was very moderate, the demand for all
kinds, compared with Monday, was rather heavy. Very
little business was transacted in any description, and the
quotations wore next to nominal. •
The week's imports of foreign wheat are only 7,460
quarters. That grain met a very dull inquiry, but with-
out leading to any change in value.
There was a fair demand for barley, the supply of which
was very limited, at previous quotations.
There was a slow inquiry for malt, on former terms.-
Oats were in short supply, and steady request, at full
prices.
Both beans and peas supported Monday's currency, but
there was much, lees activity in the demand for flour.
ARRIVALS TIM WEER.
Wheat. Barley. Malt.
English 2,210 I 990
Irish
-
Foreign 7,460 380

Oats.
670
300

Floor.
1,35 J

11,890 2,400br1s
350 sacks

METROPOLITAN CATTLE MARKET.
We had a fair show of beasts in to-day's market, chiefly
the refuse of Monday. For all breeds, the demand ruled
heavy, at that day's decline in the quotations. The sup-
ply of sheep was short, and the mutton trade was more
cheerful, at the late decline in value. There was an im-
proved inquiry for lansb3, at an advance in the quotations
of 2d per 81bs. Calves, the supply of which was extensive
moved off heavily, at 2d per 81bs less money. Pigs and
mulch cows were very dull.
Per 81bs to sink the offal'.
s. d. s. d.l
Interior Beasts.... 3 oto 3 2
Sec..nd quality.... 3 4 3 8
Prime large oxen 310 4 21
Primo Scots, dtc. 4 4 4 6
Inferior Sheep ~.2 14 3 21
Second quality —3 4 3 Si
Prime orse.-wlled.3
LlO
b, 45s '4l
a m

O. d. A 3.
Primo Sonthdown 4 6 4 8
forge crso. calves 3 6 4 0

,
'Prime small do 4 2 4 6
Large hogs
(Small porkers 4 2 4 S
Suckling ealves 23 0 30 0
Quarter old pizs 21 0 28 0
a to Gs 6d.

TOTAL SIIFPLTZ

Beasts 9lO
Sheep and lambs
Calves
Pits