The Sun.
London, England, 1828-01-29 00:00:00

TO THE EDITOR OF THE SUN.

Stn,--In presenting the public with this new pro-
duction, my grand object has been to render the speak-
ing of French as easy and familiar to English persons,
as if they studied in Paris. To accomplish this-great
desideratum, I have composed the essays on the rules
of passages and sentences used in ordinary discourse.
By construing them into French, the pupil will not
only store his mind with useful expressions, but he
will likewise insensibly imbibe just notions of the
Grammatical technicalities of the language. This is
of the utmost importance for speaking French ; for,
unless the learner is properly trained up in the prac-
tical part, he will never be able to hold the least dis-
course with a native of France, although he may be
a proficient in the theory of the language. The na-
ture of the French Verbs is, also, exhibited in quite
a new and clear manner, and the remarks on pro-
nunciation are collected from the present practice of
the fashionable circles in Paris. - The work is con-
cluded by a Grammatical Analysis, and a Treatise
on French Prosody and Versification; besides a
classified vocabulary, a compendium of familiar
phrases, and numerous models of notes, letters of
compliment and business. In the execution of the
whole, in short, the speaking of the language has a
prominent feature; and I flatter myself this Gram-
mar will be found peculiarly adapted to the capacity
of the generality of learners, being divided into sixty
easy lessons and essays, which will prove no less
instructive than agreeable.

I have the honour to be, Sir,
Your most obedient humble setvant,
London, Jau. 28, 1828. J. V. DOUVILLE.
P.S. A Key to the Essays is just published.

SUPPRESSION OF THE SMALL NOTES.

In the last Session of Parliament au Act was
passed for the Suppression of Small Notes. This
Act is entitled, " An Act to limit, and after a cer-
tain period to prohibit, the issuing of Promissory
Notes under a limited sum in England." This law
enacts, that the Commissioners shall not stamp any
more notes under the value of Y., and that after the
sth of April, 1829, no such notes small be issued
under the penalty of 201. It is a question of much
importance whether this Act is beneficial or injuri-
ous to the public. That is to say, whether it is be-
neficial or injurious to the individuals of whom the
public is composed. For it is by its practical effects
upon the interest and convenience of individuals
that we must judge of its public utility. What will
be its effect upon individuals generally ? People
must take sovereigns instead of small notes. But
these sovereigns may be a little short of weight.
When the Bank of England resumed cash payments,
the bankers' clerks were obliged to carry a pair of
scales in their pockets to weigh the guineas, half-
guineas, and seven shilling pieces, that were offered
in payment of bills of exchange. The guineas were
called in, and the scales were of no farther use, as
the sovereigns, being all new, required no weighing.
But sovereigns will wear away, and become light as
well as guineas, what then is to be done ? The
scales must be produced again ; a pair of scales or
balances will become a necessary piece of furniture
in the shop of every tradesman; now all this weigh-
ing takes up time, wad is a great interruption to
business. A thousand 11. notes might be counted
in less time than a hundred sovereigns could be
weighed. But trouble is not all—there is the risk.
Persons who live in towns may run to a shop and
weigh a sovereign they arc going to receive. But
what is to be done by those who live in the coun-
try. The gold will wear away, and the loss must
be borne by somebody. A party might write upon a
11. note the name of the person of whom he received
it, and if it were bad, he could recover the value ;
but he cannot write upon a sovereign, if it be bad
or light he must bear the loss.

A thousand sovereigns arc a thousand times as
heavy as one sovereign, but a thousand pound note
is no heavier than a one pound note. Persons who
have to travel a long way to market, and who carry
with them tl►e money they intend to lay out, would
find it more convenient to carry paper than gold.
Collectors of money, and bankers' clerks, would
rather receive blink-notes than sovereigns, because
they are less weight to carry.

Again, sovereigns cannot be sent by post. If I
owed a person in the country, three or four pounds,
I could enclose the amount in a letter, but I cannot
enclose the gold. And here I must observe that
the Bank of England does not grant bank post bills
under 10/. Now many bankers and stock-brokers
receive dividends, which they remit immediately to
their principals. But suppose the dividends amount
to any sum under 10/., how is it to be remitted ? If
indeed, the person lives at a place where there is a
country bank it may be remitted through that bank,
but it cannot be sent by post.

What will be the effect of this law upon an indi-
vidual manufacturer? In regard to those wealthy
manufacturers who want no accommodation from a
banker, the law, perhaps, will have little effect. But
very few manufacturers are of this description. Let
us take the case of one who is accustomed to receive
front a country bank, either as a loan, or in exchange
for long dated bills negotiable in London, .500/. or
1,000/. per week to pay his workmen's wages.
Above two-thirds of this sum will probably be
in 1/. notes; but small notes are abolished.—
What is he to do now; .5/. notes will not suit him,
because his men do not earn each of them 5/. per
week; and if he classed two or three of them toge-
ther, and gave them .5/. between theta they must take
it to the bank to be exchanged before they can divide
it. In this emergency the manufacturer may adopt
either of these three ways : first, he may procure
sovereigns from his banker : secondly, he may pro-
cure his banker's acceptance, in exchange for his
long bills, send it to London to be discounted, and
have the amount remitted in sovereigns : or, thirdly,
he may open " a tommy shop," and pay his men
their wages in food and clothing. With regard to the
first plan, it is not to be supposed that the bankers
will lend sovereigns on the same terms as their own
notes. They will of course charge an extra com-
mission, which must be paid by the manufacturer.
As to the second plan, the banker would in this case
too charge a commission upon his acceptance, and
the manufacturer would have to bear the risk and ex-
pence attending the transmission of the gold, while at
the same time the number of bills of exchange would
be increased, and this would have the same effect
upon prices and exchanges as the increase of country
notes. The other plan is illegal. An Act of Pat-
liament was passed a few years ago to prohibit the
practice. But this Act may be as easily evaded as
the laws of usury; it is only necessary to let the
shop be kept in another person's name. By adopt-
ing this plan the manufacturer would have little oc-
casion for gold. The goods sold in the tommy shop
would be paid in the usual way by a bill on Lon-
don. It is obvious that in adopting
either
e
first two plans the manufacturer must incur increased
expellee, and in the latter plan the woiltmen would
aiktcr
be subject to those extortions which are supposed to
be practised in shops of that description.
After the run in December, 182.5, Several bof
i h
in Lancashire drew in their note .% and burnt them
ainndonpeuir tta e
into at
hbeanfiltreer
at too ok
oncae.bunetleof 1
One
of
t 13.18,000/
wit.
nesses before the Committee of the House of 1 oka,
was asked—

.•
" How have the manufacturers paid their ivorkmes
since the small notes were destroyed to that extent':
" To answer that, I must divide the manufactu•
rers into three classes :—The first and wealthiesi
do now, as they can at all times, pay their workmei
with the ►rotes of the National Banks, without the

tervention of any agent or banker, and they do pal
their workmen in that manner. The second class,
not so wealthy as the former, are in connection with
some of the largest bankers, such as Jones, Lloyd,
and Co., of Manchester, and through their interveL-
tion they would obtain Bank of England notes of
gold, and would continue their operations. The
third class, infinitely the greatest in number, as well
as in the aggregate amount of their transactions,
but the poorest, cannot resort to either of the for-
mer means of obtaining money to pay their work-
men. They have been accustomed to obtain accom-
modation from the country banks in the neigh-
bourhood in which they live. Since the.contrac-
don of the circulating medium, they have hardly
been able to pay their workmen at all. They do it
partly by cheques upon provision-dealers, partly
in goods, and partly by collecting from meal-
men and bakers the notes of banks circulating
within eighty Miles of the place in which they live.'
What will be the effect of this Art upon a country
banker ? It is certain the country banker w:I1 save
the expense of stamps, and of engraving upon his
small notes; and he will also save the expence of
procuring their payment in London; but then-ha
must find gold. Let us suppose a country banker
has 10,000/. in circulation in small notes. He must
supply their place with sovereigns. He will, perhaps
st,ll out 10,0001. new four per cent. stock, and have
the amount remitted in gold. Here is a loss at once
of 4001. per annum, which he was accustomed to
receive as a dividend upon his stock. It is obvious
he cannot afford to issue these sovereigns on the
same terms that he previously issued the small
I utes. He will charge an extra commission to re-
pay himself the 4001. per annum he has lost.
But suppose the banker reasons with himself in
this way--.-" I now without any risk or trouble to
myself receive 400/. per annum dividend on this
stock. If I sell it out and discount three months'
trills at five per cent., and charge a quarter commis,
,ion, I shall get six per cent. That is 600/. per :IT,
num ; but then I must deduct from this amount the
expence of transmitting the gold, a portion of the
expence of my establishment, and the foss that will
occasionally take place through discounting bid
bills. I n ill not sell my stock : let those who vr.',at
sovereigns get them elsewhere." Ih this case tile.
banker will restrict his business. The rosnotte
curer, unable to obtain the usual accommodat ie w
restrict his business also. Labourers will be thrown
out of work, and the production of the country v. ill
be diminished.

But we will suppose that the banker
golf, and obtains art extra commission to repay hint
the expenee. In some seasons of the year, p'urti•
cularly in the hopping season in Kent Luc! Sasso:,
and in harvest time generally throughout tha
country, the demand for small currency is greater
than at other time:. Ile must procure extra
plies. When tile demand is over, the gold will ha
returned upon his handi. He must now send tile
sovereigns to London again to be proltably em
ployed. Thus the banker will have to beer the risk
and expence of frequent transmissions of gold, for
which he will hardly be repad by an extra com.
mission.

What will be the effect of this Act uport a Lor.
don banker? He will not have to pay any small
notes for country b.Lnks. The paying, sorting, en.
tering, and returning these notes, takes up a great
deal of time. The Londun banker can now' do
with fewer clerks. He saves the amount.of their
salaries, put at the same titre he will gvt leia profit
ny the country banks. fhe demand for bankt,r'
clerks will be diminished; but there will no doubt
be abundant employment for coiners and scale.
makers.

What will be the effect of this Act Upon the G
vernmeut ? The Government will eertalnly ic;:s
the amount of taxes upon the small notes, alas
the tax upon the paper used in their manufacture.
They will also incur the expellee of coining some
millions of sovereigns ; and AN henever the course of
exchange shall be against this country, these sovc,--
reigns will be exported, and the State will have to
incur the expense of a fresh coinage. It cannot be
expected that the coin will remain in this country, if
every individual can dispose of it to advantage.—
Gilbart's Practical Treati4c on Banding.