The Sun.
London, England, 1844-01-13 00:00:00

THE CURRENCY.
TO THE EDITOR OF THE SUN,
Dear Sir,—Your Correspondent, Mr. Pedie, has favoured
us w ith an article on the Currency, exhibiting much industry,
but, unfortunately, based upon erroneous principles. He assails
a most mischievous institution, but does so upon utterly Wens•
ble grounds.
As the error is in principles, more than in details, and, as the
latter are voluminous, I shall confine myself to one sentence,
which is the key to Mr. Pedie's position. . .
This gentleman, after comparing the average issue of the
Bank of England, for the three months ending January, 1841,
with the i,•sue in those ending January 184,3, and showing that
the issue in the latter exceeded that of the former by five mil-
lions, proceeds thus :—" This expansion of the currency, it is
clear, raised the money price of all commodities about 33 per
cent. above those at which they stood for the three months
ending with January 1841."
Now if " all commodities" rose in price, of course land and
the Government securities rose likewise. We cannot suppose
that a merchant who, dealing in 500 articles, of each of which
be possessed a thousand pounds' worth, found each 1,0001. sud-
denly raised to 1,3301., could find no alteration in the value of
the sum he might have in the Three-and-a-Half per Cents.
If corn is at a high price, land becomes more valuable, as the
instrument by which corn is produced. If iron doubles in
value, an iron mine fetches mere in the market.
Now the capital possessed by the inhabitants of this country.
if we include the funds, is probably little under 3,500
millions. 1 t may be objected that Consols are not a capital.
Assuredly they are not national wealth ; but being in the na-
ture of a mortgage on the physical and mental energies of the
population, they become a saleable capital to individuals.
Mr. Pedie's proposition, then, taken rigidly, is, that a varia-
tion of five millions in currency makes an alteration of 1,155
millions in the value of our capital ! !—a disproportion between
cause and effect with a vengeance !! !
However, we will deal gently and liberally with the proposi-
tion, and assuming a vastly smaller ratio of operation on land
and funds than on other commodities, we will take the amount
at only a fourth part, say roundly 288 millions—nay, let us
throw in the odd 38 millions, and confine ourselves to the
neat, compact little sum of 250 millions—and then ask the
most desperate and credulous of theorists, whether it is pos-
sible for him to believe that a public company can, by the issue
of five millions of notes, raise the value of our capital to the
extent of 250 millions !! !
11r. Pedie cannot be otherwise than honoured by compari-
son with a writer whose admirable virtues so well accord with
her splendid and powerful talents—l allude to Miss Martineau.
That lady, in one of her tales, intended to enforce and illus-
trate the doctrines of political economy, introduces a body of
people in Siberia, who established a currency of mouse-skins,
and the amiable authoress (being an unflinching believer in the
potent action of a currency) finishes her account of a day's
trading thus:—
" By Ernest's help, and to her own utter astonishment, she"
(the lucky original possessor of a mouse's skin, intrinsically
worth one farthing) " presently found herself mistress of a
perfect pair of pattens of the finest wickerwork, a large packet of
tea which had just crossed the frontier, pepper enough to last
the winter, and a vigorous young reindeer ! !
Your readers may possibly smile at this astounding specimen
of the length to which a thorough theorist will go ; but as-
suredly Mr. Pedie beats the lady hollow !
The real truth is, that, with certain moderate allowances and
reservations, prices are but little affected by variations in the
currency. Effect has been confounded with cause. Trade is
not brisk because currency is abundant ; but currency is abun-
dant because trade is brisk.

If the transactions of a country are doubled, its currency
must be increased ; if greatly diminished, paper goes back to
its issuers. Bankers' issues are naturally governed by the de-
mand far their goods ; they may be eccasionally rather too
facile in parting with their property, as the wine merchant dr
draper is, but, as a general rule, the body trust, on the whole,
only those who may reasonably be expected to repay them, and
who will not borrow, and pay interest on, more capital than they
think they can advantageously employ.
The fundamental " original sin," which lies at the base of
all currency theories (of the usual school), is the mystification
about a " standard of value."

There is no such standard—if it means something which will
always command the sane amount of those other things which
men consider valuable.

Did a pound weight of gold command the same number of
pounds weight of iron, sugar, and flour, six months prier and
six months subsequent to the battle of Waterloo?
A circulating medium of any kind is merely an instrument
of exchange—a kind of unit of comparison—a convenience,
saving the trouble of barter—and such a convenience gill
always lie created by the ingenuity of man. In one State
leather, in another iron, in a third shells, in a fourth gold, in
a fifth silver, in a sixth paper, has been used.
It is a curious fact that the most abstract and philosophiCal
view of the matter is taken by the negroes of Africa, who have
an entirely ideal unit of comparison, called a " bar," and who
exchange so many " bars" of tobacco for so many " bars" of
ivory—so many " bars "of gold dust against so many " bars" of
rum—so many " bars" of palm oil against so many bars" "of
powder, &c.
It would be a " consummation devoutly to be wished" if we
could ship off our currency theorists to Caffraria.

BEIRNIA RD.
P. S. The wisest measure, in respect to the currency, would
be that suggested (I believe) by some of your correspondents,
viz., that Government should issue, by degrees, forty or fifty
millions of State notes, receivable in payment of taxes. This
would certainly drive in a considerable amount of our present
paper (and release much gold for purposes of foreign com-
merce), but it would make the public independent of banking
whims, and do away with all the stuff about " a metallic cur-
rency"—physically impossible, if even desirable, and dot to be
desired, were it otherwise.

TO THE EDITOR OF THE SUN.
Sir,—Since writing my observations on Mr. Pedie's first
letter, I have seen, but not had time to peruse his second ; if I
find anything requiring further observation I will trouble you
with a few lines. I now address you chiefly to notice some
observations of " Germanicus" on my last.
It is scarcely necessary to say more than that he offers no
proof that paper was depreciated, nor even a shadow of argu-
ment. Supposing we were to concede all he assumes, as to
variation of relation between gold and paper, it would not in-
validate my obsery at ion that the change of ratio was occasioned,
not by diminished value of paper, but enhanced value of gold
( which was in great demand to pay a million of soldiers of dif-
ferent nations under arms during the late war).
If a banker who issued a hundred thousand pounds worth of
notes were required to withdraw them when gold was at an ad-
vanced price, his property might be diminished by the netts•
sity of buying the gold, but each note, instead of being depre-
ciated, would (as 1 have observed in a prior communication)
be enhanced, because by its exchange fer gold every holder
would be put in the command of more sugar, iron, &c., that
he could have commanded when he took the note.
As to Parliament preventing the depreciation of paper, the
job would be by no means harder, nor a whit less difficult, than
the same body regulating the quantity of sunshine which
should fall on each acre of land in the country. Parliament
may enact that a turnip shall be of equal value to a pine-apple
—and when after such an enactment we find the holder of a
pine-apple exchange it for a turnip, I will concede the whole
question of depreciation to " Germanicus."—Always yours,
BEI RN IA RD.

PRESENTATION OF THE HUMANE SOCIETY'S

MIDAL TO A FRENCH SAILOR. Yesterday a deputation
from the Humane Society, consisting of Sir E. Codrington,
Captain Codrington, M.P., Mr. Hawes, M.P., &c., presented
to Jean J. Gasvert, a sailor on board the French frigate
Cuvier, lying off Blackwall, a silver medal, for having, at the
risk of his own life, saved a gentleman of the name of Turner
from drowning on Christman-eve. The gentleman had fallen
into the river from Blackwall-pier.
11. G. WARD, ESQ., M.P.—We are rejoiced to
learn that our able representative Mr. Ward, in a letter to Mr.
Alderman Dunn, has arranged to meet his constituents in Shef-
field, on Monday, the 22d instant.
PREACIIRRSIIIP OF LINCOLN'S-INN.—Yesterdaythe
Rev. J. S. Anderson, M.A., incumbent of Trinity Church,
Brighton, and chaplain to the Queen Dowager, was elected
Preacher of Lincoln's Inn, vice the Rev. Dr. Loasdale, pro-
motet' to the see of Lichfield.

A grand Masonic ball will be given next week in aid
of " The Aged Masons' Asylum." The proceeds are set apart
entirely for this charitable purpose, and, we have no doubt, the
" brethren " will, as usual, show their liberality on the oc-
casion.

ENCROACHMENT OF TUB SEA.—In consequence of
several falls of the cliff at Black-rock, the eastern extremity of
Brighton, the carriage road is considered dangerous, and a new
road is now forming, nearly fitly feet more inland, which
makes the third road made within the last twenty-fire years.
One has been completely washed away, and the second is now
on the very brink of the cliff. Formerly cricket matches were
played by the Brightonians, on a green in front of the Aberga.
venny Arms Inn, which must now be occupied by the carriage
road.

FLUENCY OF THE FAIR ►SEx.—Mr Yearsley,
speaking of the causes, varieties, &c., of stammering, observes,
" It is of rare occurrence in the female sex, the proportion of
female cases being not more than seven per cent !" Married
men, we opine, have long been aware of this " great fact."
When the late John Kemble was one day passing
along Cheapside, he was met by two chimney-sweepo, the
younger one accosted the elder one thus—" I say, Bill, there
goes a player man." " Oh, don't insult him, Jack," said the
other; "no one knows what anybody may come to."
REFINEMENT.—In Dresden, a little ragged child
was heard to call from the window of a mean house, to her op.
posite neighbour—" Please Mrs. Muller, mother solids her best
compliments, and, if it's fine weather, would you go a begging
with her to-morrow !"

MANCHESTER UNION HOSPITAL.—The Senate of
the University of London has recently recopised Cer-
tificates of Attendance on the Medical Practice and Cli-
nical Lectures of the Manchester Union Hospital.—
Medical Gazette.

On the last Sunday in the old year, as the governor
of the Bingham Union Poorhouse was escorting th©
inmates to the parish church, which has been the
custom ever since the formation of the union, a number
of the paupers withdrew from the procession, and
entered the Primitive Methodist Chapel ; for this
the
homagistratesdiscipline,fonthe 4th instant, the governor brought
when the rtoughtthembefore
Bench
pd
re ci
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idl eedg e in favour
allowingthfey thtehmougthhet
rk
w attend what ofthe
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proper, so as they returned in the proper Imo the to
000htoautstee.ndi On
eg chapel in the morning,
the esleyan Sunday last, they embraced the priri-
jegrndtho Primitive Methodist chapel in the afternoon.—
Nottingham Review.
While fishing for pike in the river Till
and
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day week,
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Marina a,
usual at this season of the year,—Newcastle Advertiser.

i'l a

' compensate for errors in legislation not eommitted by them, but
by their rulers, besides the greater part of 14 millions more for
stamps and postages, houses and windows, the whole of which
ought to be paid by the rich, or by those who are above want, ac-
cording to their respective means, is an impost of such magni-
tude, to be made without reason on men who are wholly
unprepared to meet and unable to bear it, as cannot fail to ex-
cite feelings, not merely of discontent in those whom it affects,
but of indignation in every liberal mind.
It came suddenly upon the people, and such was their con.
sternr.tion at the time, such their perpetual harass of mind ever
since to be able to stand their ground, that they have not yet
had leisure to inquire how, or why, or by whose fault, they are
thus overwhelmed with difficulties which thicken as the years
roll on. In the interim, they are told by those public writers
and public speakers who profess to be their friends, that all is
going on right. " Wait a little longer (they say),
and we will
get the taxes repealed which oppress you." But if a mistake has
been committed, if those taxes ought not to fall upon them at all,
why should they wait a day ? Why should they not petition at
once that these taxes should be charged as before to the con-
sumers of commodities? If Government will not furnish the
means of carrying them to their destination by an issue of
paper money, they can, at all events, commute them for a pro-
perty tax, and so relieve the producer. But whatever is dotro
should be done quickly, for thousands of lives are lost while
we hesitate.