The Sun.
London, England, 1844-01-11 00:00:00

THE CURRENCY.

TO THE EDI roll OF THE SUN.
SECOND LETTER.
SlR,—The great deficiency in our present currency,
to meet the high tax-included prices of the United
Kingdom, has become quite palpable all over the coun-
try ; and it has been proposed by the currency-men of
Birmingham to extend the currency, by raising the
mint price of the precious metals 50 per cent. ; coining
the crown-piece into 7s. 6d. ; or, in other words, by re-
ducing the size of the coins in that proportion. But
this would be no remedy. It must be clear to every
man of common sense, that the only effect of such mea-
sure would be, to deprive every creditor by one-third of
his debt without payment or satisfaction. But the cause
of truth and justice never, in any case, can be aided
by such means as the commission of one act of robbery
as a set off against another. In the present case, it
would not operate, in the very nature of things, as a
sound means of extending the currency, for ls. 6d.
would then be demanded for every shilling in the in-
trinsic portion of price at present, there being a neces-
sary connexion between the natural prices of commodi-
ties and the precious metals. The raising of the
mint pi-7u of these metals, by reducing the size of the
coins, will never, it is clear, increase the limit of
these metals in the least degree. The remaining two-
thirds of the taxes, which at present enter into
prices, would still raise prices above the limit
of the precious metals, and therefore they could
not form a sound medium of exchange. Even if such
reduction in the size of the coins of this country could be
supposed to have the effect of increasing the limit of
these metals, it would be productive of no remedy, for
the limit of the precious metals being the universal
standard all over the world, anything effecting it change
in that standard would produce no remedy, fer the prices
of commodities in this country being still artificially in-
creased, to the extent of the two-thirds of the present
taxes that would still remain beyond the natural amount
of these prices, to which alone the precious metals are
applicable as the measure of value, a currency of these
metals would still be unsound, because insufficient in
quantity.
The proper remedy is evidently the taxing of the cur-
rency itself, in the same ratio as the prices of commodi-
ties are found on the average to be taxed or increased by
our system of taxation, above their natural amount ; for
then the currency and the commodity being alike artifi-
cially raised, or increased, the one above the natural
limit of the precious metals, and the other above the
natural or intrinsic amount of price, they would in that
way become fair and just equivalents for one another,
and bear the same relation to one another as before taxes
were first imposed on commodities. In no other way can
they may be made fair and just equivalents, without dis-
turbing the universal standard of value among allcivilised
nations.

Sir Robert Peel laments the sufferings of the labour-
ing classes, but says that the Legislature can do nothing
to help them—cannot raise wages by Act of Parliament
—and that wages, like all other things, even if the la-
bourino• classes should die of starvation, must be left to
find their own level. He falsely asserts that the cur-
rency has nothing whatever to do with the present dis-
tress, that the distress is caused by over-banking,
over-production, over -speculation, over-population, and
over this and over that ; but all these over-
doings are evidently brought forward, as every
sensible man must have seen from the begin-
ning, for the mere purpose of deception. True, wages
ought to be left to find their own level. Why, then, does
Sir R. Peel, taking advantage of the ignorance of the labour-
ing classes, and their incapacity for abstruse reflection, put
in a secret hidden pin in his machinery, the existence of
which he knows they are unable to detect, to prevent
wages from finding their own level ? The precious
metals being capable of measuring the prices of commo-
dities at their natural extent only, without taxes, if the
domestic currency, whether of paper or gold, established
by law, be insufficient, even to the extent of sixpence in
the pound, to cover these prices, with the whole taxes
thrown into them, to the extent of that sixpence, it is
quite evident, is the labourer effectually defrauded of his
hire. Because, the taxes being a certain portion of the
precious metals, are evidently the immoveable part of
price, and the wages of labour, therefore, must give way,
and they are force to give way, and are expelled from
price, to make room for the taxes ; and this is the whole
secret of the present distress.

The Bullion Committee of 1818, occupied their time
endeavouring to prove that the value of the Bank of
England's notes were depreciated, in reference to the
value of gold and silver money as they existed in other
countries where our system of indirect taxation had no
place, which could not well be disputed. But that was
not the question before them. The question at issue
was, whether the Bank of England notes were depre-
ciated in reference to the high artificial, because tax-
included, prices of commodities, as then existing in this
country ; and whether, in that the true point of view,
they were a departure from the universal standard
of the precious metals. That they were not exchangeable
for gold was nothing to the purpose; they were exchange-
able for commodities bearing very high artificial prices,
125 per cent. at least, upon the average, above their na-
tural amount. They were, indeed, a departure from the
universal standard, but in the opposive direction from
that alleged; for, numerous as the notes of the Bank
were, they were still insufficient fairly to meet those
very high artificial prices ; and, consequently, short of
their due relation to the universal standard.

The tendency of a return to specie payments, there-
fore, recommended by that deeply interested Committee,
was not to cause a rise of 4 or 5 per cent. only in the
value of the then existing currency, as the cunning men
who sat upon it falsely pretended. It did not create a
rise in the value of the currency of 30 or 40 per cent.
only, as the currency men of Birmingham afterwards
erroneously asserted was the actual result of that mea-
sure; but the direct tendency of the return to specie
payments was, to raise the value of money full 125 per
cent. above its then value, that being the average amount
to which the prices of all commodities had been artifici-
ally increased by taxation, as compared with their na-
tural or intrinsic prices without taxation.' Because, the
precious metals being limited by nature as already ob-
served, in amount, and incapable of measuring the prices
of commodities except at their natural amount, the taxes
fell either to be thrown back upon the producers of
taxed commodities, who had advanced them, or the
wages of labour were to be expelled from prices, to make
room for the taxes; and the money owner, therefore,
was benefited, to the whole extent of the taxes, at the
expense of the industry of the country, his money being
available to him to the extent of 125 per cent. beyond
Is hat it had ever been available before.

Had the Currency Bill of 1819, which carried the re-
commendation of the Bullion Committee into effect, borne

its true title, describing its real objects, as it ought to
have done, it would have run thus, " A Bill to confiscate
the means of every debtor in the United Kingdon, for
the benefit of his creditor, to the extent of 125 per cent.
on the amount of the debt which he owed, irrespective
of the true and lawful payment of the debt itself ;
to increase the whole public burdens of the country, for
the benefit of fundholders, and other recipients of those
burdens, 125 per cent. above their present amount ; to
make over in perpetual slavery the whole of the labour-
ing classes, without any pretext whatever, or any con-
sideration in return, to the class of money capitalists,
to the extent of four-ninth parts of their whole labour,
And to render their condition worse than ever was that
of the black slaves of Jamaica before their emancipa-
tion ; and, finally, to cut up industry by the roots, and
to sacrifice the country to foreign nations." This
was the true title of that Bill, and had it borne
this its true title, neither the plausible super-
ficial arguments of Sir Robert Peel, nor all
the bayonets which the Duke of Wellington commanded,
could have passed that Bill. But Sir Robert Peel knew
th:t he addressed himself to willing hearers, who re-
quired no argument of his, but a pretext merely for
passing that fatal measure. It is now seen by every
one, that this is the true description of that deadly Bill,
for one and all of these objects have been, and are fast
being carried into execution.

Let us, for a moment, compare the condition of the
black slaves of Jamaica before their emancipation with
the present white slaves of England, and it will at once
appear that the difference in their condition is greatly in
favour of the former. The former had their whole la-
bour made over to their owners out and out, but coupled
with this important condition, that the owners were le-
gally bound for their comfort, able subsistence, in food,
clothing, and house accommodation ; and the obligation
by law was strengthened by its being also the interest
of the owners themselves to !see to those things, for by
attention to the comforts of their slaves only could they
hope to make the most of their labour. The power of
the slave-owner over his slave was, no doubt, sometimes
abused, but that was the exception, not the rule, for the
very reason that the interest of the slave-owner lay in
treating his slave with kindness. What is now the con-
dition of the white slaves of England. They have
five-ninth parts of their whole labour confisca-
ted to the money-owner, through ,an insufficient
currency, which necessarily expels their wages to that
extent from the prices of commodities the produce of
that labour, and they are compelled to pay, out of the
four-ninth part of their labour remaining, the whole
indirect taxes of the country, falling on them as con-
sumers of the taxed necessaries of life, before they can
command these necessaries ; and what remains is utterly
inadequate for their subsistence, even in the meanest
way. The white slave-owner, the money capitalist, is
entitled by law to draw five-ninth parts of the labour of
his slave, absolutely and without any drawback, or de-
duction or abatement whatever ; and the white slave of
England may rot upon a dunghill for him. Look at the
condition of the silk weavers of Spitalfields, who were
among the first victims of the new system of currency—
of' the hand-loom weavers all over the country—and
even of the power-loom weavers now—of the common
sailer—of the agricultural labourer, who is now busy
burning the ricks of his employer, out of revenge—and
of all classes of labourers, without discrimination or ex-
ception, whose wages are now utterly insufficient for their
subsistence in any way whatever ; while the prices of
the necessaries of life, and of all other commodities, are
still, by reason of taxation, beyond what they are in any
other country. Look at the condition of the entire
population of Ireland, who have all been reduced by the
same means to the lowest state of destitution and degra-
dation.
When the Currency Bill of 1819 was introduced into
the House of Commons, the money power fixed upon
Sir Robert Peel to carry it through that House for them.
He was then a young man, but as yet unknown to fame.
Being of ignoble birth, he saw that his road to power lay
through the wealthy classes, and not through the ancient
nobility ; and, notwithstanding of his own ample for-
time, he stooped to be the mean tool of the money
power, and to pander to their lusts, and to their sordid,
avaricious, and greedy desires ; and he accomplished
fir them the passing of that deadly measure—their Cur-
rency Bill of that year, a measure of which he
still
boasts.' See, Gentlemen (has he often said to
them since), what I have done for you. It
was I who carried your Currency Dill cf

1819, which has doubled the fortunes of every one of
you ! It has, indeed, doubled their fortunes, but at
whose expense ? At the expense of the humble but
honest industry of his country. At the expense of the
sons of those very men through whose toil, and the
sweat of whose brows his father made made that
ample fortune which he now inherits. Whether his re-
ward
be a coronet and a pension, to which he, no doubt,
looks forward to as the crowning reward of his services
to the money power, or whatever may be his fate in this
world, the name of Sir Robert Peel will descend to pos-
terity with undying and unenviable fame.—l am, Sir,
your most obedient servant, JAMES PEDIE.
Edinburgh, Old Broughton, Jan. 8, 1844.

THE CURRENCY.
TO THE EDITOR OF 7'HE SUN

SIR,—" Beirniurd,"l presume, will admit that

the Bank of England is Compelled to redeem its
notes, in gold, at 31. 17s. 101 d. per oz. This
granted, it is a matter of very little importance
whether its notes are made payable to bearer in
grains of gold, or in sovereigns of full weight and
fineness.

Either a banker's note is or is not not referable
to a fixed and determined standard of value.
The law says the standard is gold. Now, if a
banker's note is not referable to gold it is clear it
cannot be referable to paper ONLY, paper not
being a standard, and intrinsically worth little or
nothing. Nor can it be referable either to wine
or sugar, neither of these articles being standards
of value.

Though the Bank of England note " did not
go down" in London it certainly did go down in
Paris and other European capitals, and, most
assuredly, would have gone down to a very con-
siderable discount in England, had not Parlia-
ment provided against it.
Now, if a banker's note, with reference to gold
or silver as standards, falls to a discount is not the
note thereby depreciated ?
Yours, &c., GERMANICUS.
Manchester, Jan. 10, 1844.

MR. MUN TZ.
TO THE EDITOR OF THE SUN.

very much regret that Mr. Muntz
should have taken my remarks, on his proposi-
tion for raising the silver coin from ss. ‘2d. to
7s. 6d. per ounce, otherwise than as badinage, or
that the quotation used was a purposed insult on
the town of Birmingham. Had Mr. Muntz re-
sided in any other town, and a quotation had
entered my memory at the moment, which I
fancied would have dove-tailed, I should have
used it precisely as I did the one I adopted.
There is no better test as to the value of a pro-
position than ridicule, for if it will not stand
such test, the proposer may be satisfied that that
which he introduced is valueless. While I
wrote I smiled—l did not sneer. If Mr. Muntz
imagined I intended to hit him hard personally,
no doubt now he considers that he has revenged

himself by his letter to you on my jen
so, at any rate, we may now cry quits; and j
T trust, that any observations I may make in
future on Mr. Muntz's proposition, will be
in great good humour, and in kindly feel-
ing between each of us, for I purpose at
an early period to address you on the sub-
jc of raising the coin, with the intention of
demonstrating that it would be a DIABOLICAL
ROBBERY to discharge debts, contracted in the
present measure of our coins, in the tale of silver
coin raised from ss. 2d. to 7s. Gd. per ounce. And
in doing so, I shall have no more intention to
insult Mr. Muntz, than the editor of the Times
intended a personal insult to Mr. A ttwood, when
he assertedtimat " for a nation to evade time pay-
ment of a debt, by legislating to change the
value of the terms in which the bargain is ex-
pressed, is a piece of rascality not, we trust, in
reserve for an English Parliament."

By your leading articles, I perceive your
opinions on money differs from my own, there-
fore your insertion of my lucubrations on this
subject shows your impartiality; and your inser-
tion of currency articles, originally communi-
cated to editors of other newspapers, so concen-
trates the arguments for and against various pro-
positions on this affair, as to make your journal
doubly valuable. Therefore, I trust you will
continue to copy, in The Sun, the communica-
tions made to other newspapers, on the very in-
teresting subject of monetary affairs.—l am, Sir,
your's, &c. GORDIUS.
Ilfracombe, Jan. 10, 1844.