The Sun.
London, England, 1850-01-09 00:00:00

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LONDON, WEDNESDAY, JANUARY 9,18 SO.

An esteemed correspondent, whose views on the
currency question differ in some respects from our
own, has recently inquired whether we have consi-
dered " the effect which a paper currency, or any
great increase of the circulating medium, would have
on the condition of the labouring classes, by increas-
ing the price of provisions, &c. ?" adding, as his own
conclusion, " whereas it would be difficult, if not
impossible, for them to obtain generally an equivalent
advance of wages." As we are anxious to satisfy all
bond fide inquirers on a subject of such paramount
importance, on which the welfare and prosperity of
the great body of the- people are so completely de-
pendent, we willingly respond to the interrogatory.
We have considered anxiously and maturely the
effects of the monetary code established by the fatal
Act of 1819, and rendered more stringent and in-
jurious by the subsequent legislation of 1844, on
the condition of the industrious population of the
country in the most extensive signification of the
phrase,- from the highest merchant or manufacturer
to the humblest man who earns his daily bread by
his daily labour, of all, in fact, save those fruges con-
sumere nati, who live without toil or exertion on the
dividends or interest of realised property, or on fixed
annuities or rent-charges ; and we- have no hesita-
tion in stating oar perfect conviction that, with the
above exceptions, they would be materially benefited
by the adoption of a well-devised system of paper
currency, which would supply that greatest of all
blessings, a circulating medium adequate to the wants
and exigencies of the country. Such a currency may be
regarded as the life-blood of industry, by which a
stimulus would be afforded to every description of
production, and by which full and remunerative em-
ployment would be provided for every person able
and willing to work.
Cheapness is undoubtedly a great blessing, but it
must be considered relatively to the means of pur-
chasing and the resources at the disposal of the great
body of consumers throughout the empire. It would
but little avail the industrious operative if prices
were reduced to one-half the present scale, and all
the necessaries of life were to be obtained at almost
nominal prices, if the sources of employment were
dried up, and he was unable to obtain a market for
the only commodity which he has to offer in exchange
—his labour. Never, perhaps, were articles of every ,
description to be obtained on nominally cheaper
terms than in Ireland at this moment, and yet the ,
entire population are suffering deeply and severely, i
are actually enduring the greatest privations in the
midst of plenty and abundance. But the cheapness ,
is only nominal—the purchasing power, unfortu-
nately, is wanting. The abundance is comparatively
useless, because suitable measures of value are with
held, and the holders are unable to exchange the
articles of which they have a superfluity for others
which they may desire to obtain in return.

If the country were in a state of nature, :if there
were no public or private debts to he liqui-
dated, it would be of little consequence whether the
circulating medium amounted to one million
or to one hundred millions of pounds sterling.. In
the former case one shilling would procure as many
of the necessaries and comforts of life as could be
obtained in the latter for five pounds, or, in other
words, something less than : twopence-halfpenny
would go as far as a sovereign. But we are placed
in a highly artificial state of society. The labour of
the many is mortgaged for the benefit of the privi-
leged few. The interest of the public debt must be
duly satisfied, twenty-eight millions of pounds per
i annum must be paid to the fundholders, and every
Idiminution of the circulating medium increases the
pressure of that grievous burden. The great organ
of the bullionists has recently admitted that a
sovereign will now procure twice as much
of necessaries or luxuries as it could have
procured some years since. In other words,
that twice the quantity of produce must
now be given in return for a pound sterling that
would have been required at the close of the late war,
and before the resumption of cash payments by the
Bank. Is not the consequence, then, that the burden
of the national debt is also doubled, and that the
eight hundred millions now due by the country, is
equivalent to what sixteen hundred millions would
have been in 1815 ? Each person is, therefore, obliged
to bestow twice the amount of labour as his con-
tribution to the public burdens, and the intensity of
the pressure is such, that it deranges our entire
social system, and renders employment scanty and
precarious prevents the real capital contained
in the thews and sinews of the labouring
men from being rendered fully available, and
thus produces the greatest distress and misery
amongst the industrious classes—the persons whose
interests our._ correspondent, as well as ourselves, is
so anxious to promote.
At first, perhaps, the mere labourers do not obtain
the full advantages of an increase of circulation, and
a consequent increase of prices generally, but they
certainly reach them eventually. At first his wages
may procure less food for his family, but he will
speedily find that he can obtain more certain and
constant employment. Something will be found to
be done at times that would otherwise be spent in
useless idleness. The hours that would be spent at
the public-house, or wasted in listless apathy, are
profitably occupied; in rainy days, or the winter
season, when he would be dismissed, in time of cheap-
ness be can still earn something, so that the balance will
be found to incline to his favour; but ultimately the
wages of labour will be found to accommodate them-
selves to the prices of other commodities. There
will soon be a scarcity of hands at harvest time, or at
seasons when numerous orders have been accepted by
manufacturers ; he asks for and obtains better wages
for the busy time, which speedily becomes the rule
throughout the entire year, and his condition is per-
manently ameliorated, and that in no inconsiderable
degree.

1 A great " appreciation" in the value of money has
a directly opposite tendency—for a brief period the
labourers may be congratulating themselves that the
shilling will go further than it did a short time pre-
viously ; the period is approaching when
many of their class will be turned adrift and obliged
to seek refuge in the tender mercies of the autho-
rities of the union workhouse ; and wages will fall

generally, in consequence of the diminished demand
for labour. We ask, then, our respected correspon-
dent, in the integrity and honesty of whose opinions
we repose the utmost confidence, which state of af-

fairs has the most beneficial effect ca the condition

of the labouring classes ?

Thanks are especially due to Sir WILLIAM CLAY
for an admirable pamphlet on the supply of water to
the metropolis, just published from his manuscript*—
a pamphlet of a most authentic character and replete
with inestimable information. In this brochure the

* " Renaults on the Water Supply of Louden. By
Sir William Clay, Bart, /41.8. Bro. pp. 108. Ridgwxy:
London; 1849.