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

‘i2slll•ll's

LONDON, MONDAY, SEPTEMBER 9, 1850.

Tne directors of the B Ink of England were gene-
rally censured by the friends and supporters of the
Act of 1844 for their management during the years
1843 and 1847. If the Act were to be defended, it
was absolutely necessary to transfer the blame to
some other quarter, to find a scapegoat: that should
bear the weight of its transgressions, and " tkee
Board" of Directors was selected as the victim. Eve-n,
the Governor of the Bank was-ready to concur in the
arrangement, and to offer up the body, of which he
was an influential and leading member, as a willing
sacrifice. To a certain extent, he
,_pleaded guilty to
the charges that were preferred: and with beco:ning
humility acknowledged that "the Bank would have
acted more prudently hid they sooner raised the rate
of discount." Sir CHARLES WOOD and Mr. JONES
LOYD were, however, the most unsparing in their ac-
cusations. The Right lion. Baronet, when moving
for the appointment of the committee of inquiry,
made a fierce onslaught on the directors, and
of all - the witnesses examined during the
investigation Mr. LoYD expressed the most
unreserved opinions with respect to the course pur-
sued by the Bank, which he declared "to have been
extremely erroneous and detrimental to the public in-
terest," and which he asserted " was wily stopped
by the positive provi.i ms of the Act." The
Honourable Gentleman endeavoured to take credit to
his favourite measures for having arrested a system
of procedure that "must have ended in the most
disastrous consequences." Ile appeared, however, to
have forgotten the fact that it was the passing of the
Act that induced the directors to reduce the rate of
interest, which had never previously been below four
per cent., and the supposed freedom from the respon-
sibility under which they had previously acted, an
opinion which was strongly circulated by the leading
advocates of the measure. Sir CHARLES WOOD de-
clared that " the measure took away all discretion
from the directors as to the issues," and that the
" Bank department was, as it ought to he, perfectly
unfettered in its operations, subject only to a weekly
publication cf its accounts," and Mr. LOYD himself,
in his testimony, admitted that, "it was distinctly
stated by Sir It. PEEL, when introducing the Act, that
he left the Bank of England, in its banking
capacity, untouched and uninterfered with, to manage
its affairs according to its own discretion, like any
other banking concern." If the Bank, then, was left
"perfectly unfettered in its operations," if it was left
"uninterfered with, to manage its affairs according to
its own discretion," why should it be censured for
availing itself of its liberty and endeavouring to make
the largest profitS for the shareholders, and looking
merely to its private interests ?
There was another ground that rendered the re-
striction on the issues not merely impolitic but unjust.
The Bank is considered bound to provide for the
wants of the Exchequer, to make such advances as
might be required for the liquidation of the public
liabilities, and the maintenance of the national estab-
lishtnents. These advances are made on what are
termed "'deficiency bills," which are subsequently
paid out.of the accruing revenue of the country. Oe
these points the B ink has "no discretion." It must
give the required amount, whatsoever may be its
own exigencies. Fortunately there was no such
accommodation required by the Government in Octo-
ber, 1847. At the corresionding period in the pre-
ceding yeir, no less than 3,466,000/. had been ob-
tained from the Bank, and the payment of the divi-
dend, and, in fact, the mainti.nance of the national
credit, the preservation of faith with the public cre-
ditor, depended on_the advance. Mr.LOYD, in answer
to the pertinent inquiry, " What would have

been the condition it the averagc; amlunt
" -of/ ' .Government advances h td bjen rc-
ciiirea in Oztober, 1847, when the Bank reserve
was reduced Jo its minimum ?" declared that " the
Bulk, in thrikecase, must have diminished its advances
in some other form." In other words, the commer-
cial comnannity must have been sacrificed, by not
merelka liniitation, but a total denial of discounts.
It ir,us63lso be remembered that the necessities of the
Bank would bare required thi.i step as well as a sale
of Consols for its security. It was, in fact, the principal
means by which it could have w eathered the storm, and
the Lords' Committee did not "rely with any con.-

fidence on either of the remedies, as likely to prove safe
or effectual," even in sustaining the bank, much less
in enabling it to advance some millions to the Govern-
ment out of a reserve amounting to 1,176,7401. only.
The Act of 1844 might, therefore, not only have oc-
casioned the over-payment of the bank rotes, but the
nonpayment of the dividends also, and the violation
of the national faith with the national, creditor.

Another grievous mistake commltted by the framers
of the Act was the limitation of the amount of silver
bullion against which notes may be issued. Without
any adequate reason, it was provided that one-fifth
only of the amount of bullion can be kept in silver•
This absurd restriction has been almost unanimously
condemned even by those whose opinions are in other
respects favourable to the Act. The Governor of the
Bank, one of its most unflinching advocates, spoke
strongly of the inconvenience and positive injury occa-
sioned by this most unwise regulation. The Hon. Gentle-
man said, " I consider silver quite as available a means
for the convertibility of the note as gold. We have been
limited to keeping one•fifth of our amount of bullion
in silver. I think that limitation is too restricted.
Toe silver can be readily sold in the market, and
bank notes obtained for it. Thera is no mlrchandize
that will sell easier than silver. By dropping a frac-
tion in price, we could get bank notes out of the
market immediately." Mr. COTTON, another sup-
porter of the Act, did not think " there was any
public advantage in the restriction," and that it
would be wiser and more prudent " if the Bank were
left unfettered in that respect," adding that "if the
drain had been for any place but America the silver
would have gone first, and they could not have had a
surplus quantity." Mr. HORSLEY PALMER was even
more decided. The Honourable Gentleman, who had
twice filled the office of Governor of the Bank, thought
" there was a very material inconvenience attending
the regulation," explaining that " silver being equally
available for continental payments as gold, and per-
haps more so, it was desirable that the Bank should
not be restricted in the purchase of that description
of bullion which was always marketable, and
answered every purpose of correcting the foreign ex-
changes." It also appeared that this regulation led
to even a greater reduction of the circulation in case
of a run on the Bank than had been generally ima-
gined ; for if there had been a reduction of the gold
bullion to the extent of 400,000!., notes to the extent
of 500,000/. would have been cancelled, viz , 400,0001
against the gold, and 100,0001. against the silver that.
would become practically useless, being in excess of
the proportion allowed by the law. The effect of
this preposterous regulation was, that during
the crisis a merchant, with a large amount
of silver bullion in his possession, was un-
able to sell it, or even obtain an advance upon
it, and parties trading with the Pacific were generally
compelled to sell the silver bullion to the continent,
and not only sustain a very serious pecuniary loss,
but be kept out of their resources about six weeks,
From the evidence under this head it was manifest

that the object of the Act could not be merely the
securing the convertibility of the bank note, for, if so,

there would be no restriction on the amount of silver
held, which would in fact afford an additional gua-
rantee for the payment on demand, but that it was
also to render money scarce, and increase its value
very materially, and thus to increase the liabilities of
debtor and the demands of the creditor. It was not

justice to the latter that was required, but justice and
something more. No wonder that the Gazette con-
tains such formidable lists of bankrupts, or that so
large an amount is lost by bad debts, in each and
every year. A more merciful policy might be found
more beneficial to the creditor class, as it would be
equitable to the debtor. It is not always advisable
" to kill the goose that lays golden eggs."

A very important judgment was pronounced by
Mr. Commissioner FANG in the Court of Bankruptcy,
Bisinghall-street, on Friday last, by which a much-
disputed question will, we trust, be henceforward set
at rest. This decision will be the more valuable in-
asmuch as another of the Learned Judges of that
court had previously arrived at a different conclusion,
and there is but too much reason to suppose that in
consequence of the prevailing opinion the court was
often resorted to for the purpose of vexation and an.
noyance, and compelling the debtor to submit to ex-
tortionate demands.

A claim had been filed under the sth and 6:h Vic.,
cep. 122, for the perp me of compelling the de-
fendent to give security for payment of a demand
for about 1,300/. A preliminary objection was taken
by Mr. LINKLATBR, who represented the defendant,
to the jurisdiction of the Court ; the Leareed Gentle-
man contended that his client was not a trader
within the bankrupt laws, and that proof to that effect
should be admitted, as a sufficient answer
to the summons, and that the Court had
no authority to require a person who was not a
trader to find security. On the other side, it was
very ably argued that the only question into which
the Court should inquire was the existence of the
debt, and that the affidavit of the creditor, as to his
belief in the trading, should be deemed sufficient in
that stage of the proceedings ; that the trading might
be disputed if a petition for adjudication were pre-
sented, but not until then, and the deci-
sion of Mr. Commissioner GOULDURN, to
which we have already referred, was cited
in support of that view. Mr. Commissioner
FANS, however, considered the objection well founded,
and it appearing by the . evidence that the alleged
debtor had not been in trade during the last ten years,
the petition was dismissed with costs.
A slight consideration of the circumstances under
which the enactment was sanctioned, and of the re-
medy given against the debtor in the event of his not
complying with the order of the Court by giving
the required security, will clearly show the justice
and propriety of the recent decision. On
the abolition of arrest on mesne process, in
1838, a clause was introduced, which it was hoped
would have answered the purpose of bringing insol-
vent traders within the operation of the bankrupt
laws as effectually as the old system of arrest, whereby
a person who lay in prison a certain time was deemed
to have committed an act of bankruptcy. After some
time, however, it was asserted that the then provision
was practically inoperative, and that the effect
of the indulgence was to make parties take vexatious
defences for the purpose of delaying the fiat, and
enabling the debtor to make away with his assets,
and thus to defraud the general body of his creditors.
In order to remedy this grievance the sth and 6th
Vic, cap. 122, was passed, which enacted that if the
creditor of any trader should make an affidavit of his
debt, and of his having delivered an account and
required payment, the Court should summon
the trader to appear, to inquire of him whether
he admits or denies the asserted debt, or
any part of it ; and any trader not attending
on such summons, or refusing to admit the demand,
and not making a deposition on oath of his belief of
having a good defence against the claim, or not pay-
ing, securing, or compounding within a certain time,
&c., &c., shall be deemed to have committed an act of
bankruptcy, provided a fiat shall issue within two
months from the filing of such affidavit. Here, then,
it appears that the object of the statute was to pro-
vide against frauds by insolvent traders.
The word " trader" is everywhere used
as the party who can be proceeded against
in this summary manner. It is an essential feature
in this case that he should be such trader, and the
nature of the penalty, viz., " that he shall be deemed
to have committed an act of bankruptcy," showed
that no other class could possibly be within the pro-
vince of the statute. What consequence would it
be to a person not within the operation of the bank-
rupt code whether he had committed an act of bank-
ruptcy or not ? He might deny himself to his cre-
ditors, or leave the kingdom with impunity. The
creditor could derive no advantage from the fact by
vesting his estate in an officiel assignee. The former
judgment, however, left the most important fact—
the trading of the alleged debtor, which was the very
foundation and basis of the entire jurisdiction, in doubt
to the very last. It considered the belief of the creditor
sufficient against the most conclusive testimony that
could be adduced on the o'her side, and compelled a
troublesome and vexatious inquiry into the existence
of the debts, that might eventually be rendered ut-
terly useless.
This inconvenience the judicious and equitable de-
cision of Mr. Commissioner FANS will remove; and
it will remove another evil that was beginning to
attain very formidable diniensions, viz., a recklessness

of swearing—of pledging a solemn oath to the belief of
u fact founded on the most inadequate data. No person
should presume to state his belief, more especially when
that belief was intended to influence a court of justice
unless upon sufficient grounds, end the Learned Com-
missioner will have rendered valuable service to the
community in discouraging such vague allegations
being put forward under the sanction of a solemn
oath—an appeal to the DEITY, as to the truth of the
assertion.

THE FRENCH REPUBLIC.

We have received the Paris journals of Saturday
and yesterday.
The correspondent of Galignani's Messenger thus
describes the arrival of the PRE£IDENT at Cherbourg
on the sth ; by way of introduction, we would remind
the reader that the squadron of the Royal Yacht Club
is at present at Cherbourg, as are four of her MA-
JESTY'S ships of war, having on board Admiral Sir
JOHN OtIMANNEY, Vice-A. liniral Sir THOMAS COCH-
RANE, and Rear-Admiral Sir CHARLES NAPIER :
" At noon to-jay the roads presented a very animated
sight. About forty of the yachts got under weigh, and
stood out cf the harbour. The weather was beautiful,
and as there was a nice ' royal breeze' blowing, the
sight was really fine. In about two hours they returned,
aid after going round the fleet cline to an anchor. The
officers of the French squadron appeared to watch the
movements of the yachts with much interest, many of
them, particularly the Commodore Lord Wilton's
schooner, the Zarifa, and the Marquis of Conynglism's
Constance, being very beautiful craft. On the yacht's
passing some of the French ships on their return to
the anchorage, the captains ordered their bands to
play God save the Queen.' Those of the yachts as
did not join in the cruize, and which were lying in
the inner basin which runs along the quay by which
the President was to enter, were gaily dressed
out in flags. While all this was going on on the sea,
the good people of Cherbourg were not less actively en-
gaged in preparing for the reception of the President of
the Republic on the land side. About a mile from the
part, at 'he entrance of the town, a triumphal arch,
formed of evergreens, which had been for some days in
preparation, received its final touch, and was surmounted
with its inscription : " Au President de la Rkmblique."
Fur a mile beyond this point, the road, which is skirted
by a lofty steep, was Jibed by thousands of the people,
and the majority being of the fair sex, dressed in the old
Norman caps, the scene was a very picturesque one. The
road, on each side from the triumphal arch above men-
tioned, was lined by National Guards and troops of the
line. A party of artillery were stationed on the Mont
du Roule, a lofty eminence at the entrance of the town,
to ear ounce by a salvo of guns the arrival of the ex-
pected visitor, while the sides of the road and the streets
were thronged with anxious guars, all on the tiptoe of
expectation. But, alas, there is a limit to all things, and
that of human patience is not the most extensive. Half-
past five was the hour appointed for the President's
arrival, and long before that time everything and every-
body was in readiness for his reception. The mayor,
deputy-mayors, municipal, naval, and military autho-
rities, were all at th,ir posts, but time rolled on;
six o'clock, seven ''clock came, but no President ;
and soon after a diligence arrived, the conaucteur of
which announced that the President was detained at
Valogne, a small town some dozen miles off, in order
to receive the clergy and review the National Guards,
and that ho was not likely to arrive for an hour or an
hour and a half. This awful announcement acted like
an electric shock. Every one began to express disap-
pointment, or I might rather use a stronger term, and
say discontent. The majority of the National Guards
shouldered their muskets, and showed not " how fields
were won,' but how soon they would commence an at-
tack on their dianers, after which they had long before
felt a strong yearning; a vast portion of the crowd also
followed their example. About eight o'clock the first
signal gun was fired to announce the approach of the
President, and the whole town was again on the move,
but the entry of the President, which, had it taken
place at the Limo appointed, would have been a triumpal
one, was, I regret to say, not a complete but more than
a partial failure. Horses had been prepared fur him
and his suite, which were in waiting at the triumphal
arch, but from the la:eness of the hour he did not alight
from his carriage, but, after hearing and replying to a
short speech from the mayor, proceeded on his route to
the Maratime Prefecture, followed however by an im-
mense crowd. The respectable part of the inhabitants
who were in the streets and at the windows scarcely
uttered a cry, for in fact, they could not see the person
to whom the cry should have been addressed, for it
was so dark that it was impossible to distinguish who
was in the carriage, and they only could guess it from
seeing the escort. From those who did give an expres-
sion of their feelings the cry of "Vive le President!
Vise Napoleon!' was the prevailing one, though many
cries of ' Vive la Republique!' were raised. A band of
young gamins, about from 150 to 200 in number, evi-
dently organized for the purpose, followed close t. the
carriage, crying "Vivo la Republique!" and singing re-
volutionary songs. That this was an organized gang, I
can safely affirm, for I had myself before watched the
motions of the band, and heard them passing the mot
d'ordre from one to the other. Such of the National
Guards as remained, were those the least well dis•
posed towards the present order of things, and
on their marching to the Hotel de Ville to de
posit their colours, they generally shouted Vive
Is Republique,' their band playing the `Marseillaise.'
The 28th regiment of the line, one of the regi-
ments which foiight so bravely in Paris in June, 1848,
was marching past at the time, and they simultaneously
and unanimously raised such a shout of Vive la Pi a •
sident!' Viva la R Tublique 19 which was at the same
time taken up by the immense number of people assem-
bled, that the cry of the National Guard and their music
to boot was completely drowned. The President
alighted at the Maritime Prefecture. It was expected
that after dinner he would have, taken a promenade to
the jetty to see the illumina-ion of the breakwater,
which had a beautiful effect, but the lateness of the
hour prevented his doing so. The house of the Port
Admiral, the entrance} to the dock-yard, all the naval
establishments, and a vast number of private houses
were also illuminated. What makes this unfortunate
delay sti.l more to be regretted is that a manifestation of
a somewhat hostile cksracter has been rather antici-
pated for some days in consequence of their having been
within the last fortnight several hundred ntim discharged
from the dockyards by order of the Minister of the Ma-
rine, in consequence, it is alleged, of the votes for that
branch of the service having been too much curtailed
by the National Assembly. It is evident that the au-
thorities anticipate d some demonstration on the part of
these workmen, from an order of the day published
yesterday by the Maritime Prefect, in which, after an-
nouncing to the workmen the intended visit of the Pre-
sident, he says, If you have any demands or claims to
make, remember that they must be made through your
chiefi, who love you and merit your confidence; re-
member'that any other conduct will be contrary both
to the rules of discipline and to the welfare of the ser-
vica, aed that it cannot bo tolerated.' With all due de-
ference to the superior judgment of those connected
with the matter, I think it would have been better to
have contrived t I have kept the men on until atter the
President's visit."

On Friday the PRESIDENT held a levee, at which
all the English officers and all the members which
of the
Yacht Squadron were presented. In the afternoon a
grand banquet was given to the PRESIDENT by the
inhabitants of the towr, and in the evening a ball
was given at the Frefecteure. The PRESIDENT was
well received at the
_Me and at the ball. A review
took place in the morning, in the course of which
cries of "Vive la Republique" were heard whenever
an attempt was made to get up a cry of " Vive
l'Empereur."
On Saturday there was a regatta. During the
course of the morning the PRESIDENT visited the
arsenal, the dockyard, the breakwater, and each line-
of-battle ship and frigate in succession. On leaving
the last frigate he visited the Earl of WILTON, the
Commodore of the Royal Yacht Squadron, on board
his yacht, the Xarif.t; he afterwards paid a visit to
the Earl of CARDIGAN, on board the Enchantress.
Oa his lan'ding he was saluted by the whole fleet
and by the batteries on shore. The effect of this
salute, upwards of 2,000 pieces of ordnance being dis-
charged at one time, is described as having been sub-
lime in the extreme. In the evening a ball was given
in the arsenal.
The following was the speech of Louis NAPOLEON
at the banquet at Cherbourg, in acknowledging the
toast the Health of the PRESIDENT

-
" Gentletrien,—The more I travel through France the
more do I observe that much is expected from the Go-
vernment. Ido not pass through a department, a town,
or a hamlet, without the Mayor, the Councils-General,
and even the representatives demanding, in one part
fresh measures of communication, such as canals and
railroads—in another the completion of works already
begun—in short, every where the adoption of such mea-
sures as may remedy the sufferings of agriculture and
give a new impetus to commerce. Nothing can be more
natural than the manifestation of these wishes; they do
not, be assured, fall on an inattentive ear. But in my
turn I must tell yuu that these much desired results can-
not be obtained unless you give me the means of accom-
plishing them; and those means lie in your co operation
in strengthening the Government, and in warding off the
danger of the future.—(Loud applause.) Why was the
Emperor enabled, in spite of the war, to cover France
with imperishable works, and the most wonderful of
which era to be found here? It was that, independently
of his genius, he lived at a period when the nation,
fatigued with revolu'ion, gave him the necessary power
to put down alarchy, to repress factions. and to make
it triumph abroad by its glory, and at home by giving a
vigorous impulse to the general interests of the coun-
try.—(Loudr7ace
whie h aoeucgl ahmt
atoi.'nb!;) If
INT eothuee b a
en,r, in
irst alef d c
tive, it is Chorbourg—(Loui cries of " Yea,
yes
Nspoleonist from gratitude—(Applause)—and Conser-
vative from a proper appreciation of its true interests.
How can a port created like yours, by such gigantic
efforts, be other than a striking testimony of French
unity, pursued through so many confl.cting of and re •
vohtions? But let us not forget that though unity may
make a great nation, that nation cannot maintain itself
at the height of itj destinies rxoept its institutions them-
sslves be in accordance with the exigencies of its politi-
cal situation and its material interesti.—(Loud acclama-
tions.) The inhabitants of Normandy know how to
appreciate a visit as I now make; they have given me a
proof of it, and it is with pride I propove as a toast,
The Town of Cherbourg.'—(Loud applause.) I give
this toast in preselice of •tbat sea which we have over-
ooms—in presence of the ficet which has carried the,