The Sun.
London, England, 1844-01-15 00:00:00

clear, raised the money price of all commodities about 33 per
cent. above those at which they s!cod for the three months
ending with January 1841."
Nov 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
lie possessed a thousand pounds' worth, found each 1,000/. sud-
denly raised to 1,330/., 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. It 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 Ole
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 1! !
However, we will deal gently and liberally with the proposi-
tion, arid 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 creduleu. 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!! 1

Mr. Pedie cannot be otherwise than honoured by compari-
son with a writer whose admirable virtues so well accord with
her splendid and powerful talents--I allude to Miss Martineau.
That lady, in one of her tales, intended to enforce and illus-
trate the doctrines of political economy, introduces a bosh of
people in Siberia, who established a currency of mouse-skins,
and the amiable authoress (bring 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. Irade 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 occasionally rather too
facile in parting with ;heir property, as the wine merchant or
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 ois, 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 mystifica•bn
about a " standard of value."

There is no such standard—if it means something which will
always command the same 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 prior 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 will
always be created by ilia 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 parer, 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 comparii,on, 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.
BEIRN I AR D.

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 fiity
millions of State notes, receivable in paymtnt 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 not to be
desired, were it otherwise.