The Sun.
London, England, 1857-11-04 00:00:00

LONDON, WEDNESDAY, NOV. 4, 1857.

The commercial community in the United States
have unanimously acquiesced in the all but uni-
versal suspension of cash payments. Indeed, it
is more than hinted, that they bad combined for
the purpose of forcing that salutary measure on
the different establishments, and liberating them-
selves from the difficulties in which they had pre-
viously been placed. The banks resisted to the
last, from apprehensions of losing their charters,
and of compulsory liquidations. The decision of
the Supreme Court bas, however, virtually set
that question at rest ; and although the latest
accounts described the New York Money Market
as "being very unsettled, and decidedly more
stringent," that arose, as we recently pointed out,
from the unwise illiberality of the banks, in re-
fusing to afford adequate pecuniary accommodation
to firms of unquestionable solvency, which pos-
sessed legitimate claims to obtain the required
assistance.

The bank-note currency in New York is one
admirably suited for the purposes of internal
trade, Ample security is given for the due pay-
ment of the paper issues. A deposit of State
securities, or of mortgages on real estate,
runt be made against every note issued,
wad, in the event of non-payment, these
securities are disported of for the exclusive benefit
of the noteholder. The deposit3rs or other cre-
ditors have no claim whatever mit 1 the notes in
circulation have been paid in full. Thera is but
one defect, and that is, that no:inargin is allowed.
()..msequently, in the event of failure, and the
throwing of a large amount of securities of a par-
ticular class on the market, at an' unfavourable
time, there may be some trifling loss. Under
3117 circumstances, however, a handsome dividend
4115 t be paid, and that will be given, whenever it
can be shown that the bank by which the notes
have been issued, is in a state of insolvency.
This applies to the weakest as well as to the
strongest establishment. There can therefore be
no hardship in making such notes a legal tender,
nor any objection on the part of the public t
receive them, at their nominal value. The addi-
tion. of a fair margin to the amount of the deposit,
wouli meet every reasonable requirement. The
tlepcsitors might have to look out for themselves,
but the noteholders would incur very trifling risk,
The case, however, is altogether different in
this country. Although the issue department
and banking department are separated by the Act
of 1844, and notes can only be put in circulation
against Government and other securities to the
amount of 14,475,000/., and bullion for the re-
sidue, there would be no distinction between the
different creditors in the event of a compulsorY

liquidation. Depositors anti note-holders would
come part passe on the assets. The specie stored
in the vaults at Threadneedle-strOt, and for the
time being of no greater practical uNitY that an
equal weight of paving-stones, would .1:)e equally
divided amongst all claimants. The Ban,: might
be compelled to suspend payment while t2'ere
were some seven or eight millions of specie in its
coffers. What, then, would become of the
boasted convertibility of the bank note, or the
certainty of payment to the note-holders? It is
obvious that the OTERSTONR remedy is a com-
plete delusion, and that, under untoward cir-
cumstances, the entire machine might be brought
to a stand, through the very precautions adopted
for the alleged purpose of ensuring convertibility,
but which were really taken in order to make
money scarce and dear, and to enable the money-
ocracy to realise exorbitant profits at the expense
of the great body of the people, more especially
of the commercial and manufacturing interests.
On the 23d of October, 1847, the total " re-
serve of notes," the only available fund for car-
rying on the business of the banking department,
had fallen to 1,547,0001., and on the 30th to
1,176,7401., of which no more than 568,4701.
was held in London, making, with the gold coin
in that department, 719,5231. At that time
the deposits amounted to 14,500,0001., the pri-
vate deposits being 8,580,0001., of which more
than 2,000,0001. was due to London bankers,
who would have drawn out to the last farthing
had the panic continued another week. The
Governor and Deputy-Governor admitted that " if
anybody had called for anything beyond a million
and a half they must have stopped payment, and
that, although they had eight millions and a half
of treasure in their vaults." Could there possibly
be a stronger illustration of the absurdity of our
code, that might have produced such a catas-
trophe, when, with freedom of action, there could
be but little, if any,- real risk ?
The Governor thought that the reserve might
have been strengthened by the sale of two million
of Three per Cent. Consols, then in their hands ;
but great doubts were entertained as to whether
the sale would have been practicable, even at a
serious sacrifice, under the circumstances ; and
were it even possible, it would, by the great fall in
the quotations thereby occasioned, have led to a
considerable withdrawal of deposits by patties
anxious to obtain such bargains., In fact, as Mr.
WILLIAM BROWN, .M. P. for South Lancashire,
declared, " the remedy would have been worse
than the disease."

While the circulation of the Leviathan is in this
condition, that of the private and joint-stock banks
is far worse. There is, practically, not a single
shilling's worth of security for the issues of the
private banks. They may stop payment or sus-
pend operations, but the note-holders will be left
in the lurch—in the same position with the general
r creditors. Surely this is not a satisfactory state of
the paper circulation. There ought to be " Free-
trade in currency." Let full security be given, with
an ample margin to cover every possible
contingency, abolish the exclusive privileges of
the Bank of England, and let every person will-
ing to comply with the conditions be authorised
to issue notes of any denominations, which in the
event of failure should be liquidated in full out of
the deposits. By this means we shall have a
sound currency for every domestic transaction in-
ferior only to really national notes, which being
receivable in payment of taxes, would always be
maintained at par, and could not be depreciated
under any possible state of affairs.

We know that Nears SAnta has given Lord
PALMERSTON enough to think of, but we must
nevertheless express our astonishment that he has
given no thought, or no outward indications of it,
to the brutalities of his European compeer towards
two British subjects in Naples. It is now some
four months ago that this savage, living as he
does on French and English sufferance, seized on
the crew of the unfortunate Cagliari—seized them
while actually bound with ropes by the patriot
conspirators, with whom, of course, the tyrant
had as just a quarrel as tyrants always have with
armed patriots—seized the men despite the ob-
vious proofs of their innocence, and hurried them
into a Neapolitan gaol. The scheme of Count
PISCANE proved to be as ill-calculated, as mad, if
that word pleases the prudent better, as it well
could be. However, in its noble design, it proved
to be as useless as our more magnificent attempts
to confer freedom on Spain, and to fix the BOUP
bons on the throne of France. The Count'il
scheme was like our folly, because it did not
attain its object ; but it was " madam," and a
"crime," because he was not strong enough to
save himself and his small band of followers from
destruction. But as to the crew of the Cagliari,
the steamer seized by the Count to carry out his
project, they were neither foolish, nor mad, nor
criminal ; they were simply Sardinian and British
sailors—two of them being British—and their
only crime was that they were citizens of two free
countries, and were taken perforce, along with the
men who hoisted on the steamer the flag of—
Liberty for subjects—Death to Tyrants.

Supposing, however, that by some technical
plea the sailors of the vessel could be detained
and subjected to investigation—suppose that they
ought to be put on their trial—on what earthly
pretext have they been detained the four long
weary months awaiting their trial ; detained in a
custody adapted to convicted felons only, fettered
till the iron galls their wrists, deprived of suffi-
cient foot, of wholesome air, and of dry lodging ;
treated, indeed, with snail daily brutality, that
one of the two, it is feared, has by this time lost
his mental faculties—has been " driven by despe-
ration t) madness t" Even the British Consul,
as well as their friends, is denied access to them,
nor are they allowed to correspond, or to receive
letters from their friends.

But what is Lord CLARENDON, and what
is Lord CLARENDON'S Chief doing all this
time ? We hear of nothing but very bland,
and very ineffectual, indeed, utterly un-
heeded messages through our Consul. Indeed
Is this, then, the Premier to whom we gave his
majority of one hundred, on the strength of his
reputation for dealing with despots, from a Can-
ton Commissioner to a Czar of all the Russias ?
Right well assured are we that, had the two men
been Yankees, the Savage of Naples dare not
have touched a hair of their heads. It would
have been as much as Mr. BUCUANAN's tenure of
the White House) is worth, had he not demanded
their immediate liberation by messengers that could
have tumbled all Naples about the tyranesears, and
almost Mount Vesuvius with it. It is known that
they will usa them rather than see an American
citizen insulted, and the consequence is that
American citizens swagger about the 0 d
' World, and give themselves greater airs
than
they do even in the New One. W e
question whether Jonathan would let FERDINAND
or any one but
himself flog one of his niggers, or
even an American
dog or cat. Everything Ame-
rican must be sacred from
the Atlantic.
onath"
the hands of tyrants
and their tools on this side
If, however, " Brother J
anoccasionally
acts with more touchiness and brag than dignity,
are we to let diplomatic dignity rivet for four