The Sun.
London, England, 1828-04-11 00:00:00

tRUPTION OF MOUNT VESUVIUS.

(Front the eczzetta di Napoli, March el.)

" On the 14th instant, a new orifice, about 15
feet in circumference, was opened in the crater of
Mount Vesuvius, on the eastern side, from which
issued an immense quantity of smoke in the form of
a globe; this burst with a tremendous explosion,
and scattered around a quantity of boiling liquid.
After some days these explosions ceased, but the
new aperture continued to discharge a great deal of
smoke, and occasionally some flames. On the 17th
and 18th these phenomena were renewed with in-
creased force, the detonations became more frequent,
and a slight flow of lava was perceptible. It was
observed that, on the 20th, the new opening was in-
creased to 60 feet, that the matter ejected piled
round it in a pyramidical form to the height of 50
feet; that stones wen occasionally thrown up into
the air, and that, the explosions were continued at
intervals of trzn minutes: in the opinion of the in-
habitants near Vesuvius an eruption is at hand.

" MARCH 22.
" Since yesterday two other openings have been
made in the crater, and they are of larger dimensions
tha►► the first; from them ►ssue quant►ties of smoke
:and flame. After a variety of explosions, a tremen-
dous shock forced the three apertures into one, and
a column of smoke and ashes rose from it, and pre-
sented to the city of Naples the appearance of a
pine-tree of gigantic dimensions. The rays of the
sun reflecting against it presented one of the most
ext►aordinary spectacles ever seen. Stones were
thrown up in great numbers, and one among the
of immense dimensions, which was thrown over
the side of the crater, rolled down the mountain.
" The violence of the eruption began to diminish
at three o'clock, and the wind having changed,
caused the volcanic column to incline towards Otta•
jano, and it began gradually to diminish in sine.—
At five o'clock the summit of Vesuvius displayed
only a small cloud of smoke. The mad to Portici ii
crowded with carriages and with pedestrians.

" E!GIIT O'CLOCK.

" As the column of smole diminishes, the neises
And explosions in the interior of the mountain in-
crease, and symptoms of cnt•thytake th •caten another
violent eruption. ShP;c-k4 have been Llt in Calabria,
in the districts of -Reggio and Palmi. No damage
of importance Itas lien done."

THE SINKING FUND.

FURTI3 6R EXTRACTS E 11.031 LORD GRENVILLL'3

PAMPFILET.-.--COMPOEND INTEREST.

Dr. Price was fully sensible how little pro-
gress.
n could be made in the reduction of our na-
onal incumbrances by the simple application of
any'surplus which our revenue could afford.—
It is far from probable," he says, " that any
money which the nation can spare, if applied so
ae to bear only simple interest, can be capable of
reducing its debts within due bounds, or of
doing us, in our present circumstances (1781),
any essential service." He strongly urged, there-
'ere, the necessity of strengthening that feeble
machinery, by what have since so frequently
been termed the magical powers of compound in-
terest. And magical indeed they appeared in his
representation of them. ".It has been said (I
quote his own words) that when money is wanted
for defraying public expenses,_ it makes no dif-
ference whether it is obtained by diverting
the Sinking Fund, or by a new loan. There
cannot be a worse fallacy. Money in a Sink-
ing Fund, if never alienated, is improved,
I have shewn at compound interest ;. hut, when
procured by a loan, bears only simple interest.
A nation, therefore, whenever it applies the in-
come of such a fund to current expences rather
than the redemption of its debts, chooses to lose
the benefit of compound interest, in order to
avoid paying simple interest ; and the loss in
this case is equal to the difference between the
increase of money at compound and' simple in-
terest." The following calculation will shevv
what this difference is :—" One penny put out
at our Saviour's birth to five per cent. compound
interest, would, in the present year, 1781, hive
increased to a greater sum than would be con-
tained in two hundred millions of earths, all
solid gold. But if put out to simple interest, it
would, in the same tune,. have amounted to no
more than seven shillings and sixpence ! All
Governments that alienate funds destined for
reimbursements, choose to improve money in the
last, rather than the first of these ways."
What an astonishing disparity would this be,
if we could see in it, as he did, the result of
two different modes of employing, or, as he
terms it, of improving the same amount of
wealth. But, alas, the vision is too truly deno-
minated magical ! It is as unreal as it is
splendid. While it yet dazzles our senses, and
confounds our imagination, one drop from the
pure fountain of science- has already dissolved
the charm. We look again, and, instead of the
enchanted pslaces, glittering with mountains and
earths ci gold, we see only the ordinary gifts of
nature, and the products of patient and perse-
vering industry. By these alone, as all reason
and all experience teach us, can wealth be either
created or multiplied ; uery other agency, pre-
tending to any ,such effect, is mere illusion ;
transferring, perhaps, but never increasing riches.
The redemption of debt at its market-price
van be accelerated only by applying to it addi-
tional means of purchase; and, it is accordingly
asserted that compound interest has actually fur-
nished such additions to our present Sinking
Fund, rendering it thereby, instead of a feeble
and insufficient, a most effectual and powerful'
instrument of our public credit, prosperity, and
wealth. This pretension I have already ventured
generally to deny. These additions have been
supplied, not by compound interest, but by sur-
plus taxation. This matter, however, must here,
be more particularly examined.
In what, then, really consists the application
compound interest to the institution of a
sinking fund ? Divested of technical language
and visionary calcelations, the answer is simply
this. Such application consists in adding to the
income of the Sinking Fund the annuities which
that fund successively redeems. Those, an-
nuities, or more properly speaking, the portions
of revenue from which they were defrayed, are,
as we have already seen, so many fresh surpluses,
which the Sinking Fund annually places at the
disposal of the community. And in the different
modes of applying these surpluses consists, in this
case, the whole difference between simple and
compound interest. A system of simple inte-
rest leaves them applicable to the repeal of tax-
ation, or to the exigency of any other service ;
by compound interest they are appropriated to
the increase of the Sinking Fund.

THE MUSICAL FUND.—A grand INE.scel-
laneous Concert, for the benefit of the Musical Fund, esta-
blished for the relief of decayed musician", their widows
and orphans, was yesterday' performed at. the King's
Theatre. The institution, whose excellent object, are thus
annually promoted, was established in the year 178 G, and
among its patrons are his 111.t.YEsrr and all his Royal Bro-
thers. The performers have, at the annual concerts,
invariably given their assistance gratuitously, and their
exertions, added to those of the many distinguished indi_
viduals by whom it is patronized, have, from year to year,
enabled the institution to administer comfort and assistance
to a -,-ast number of those children of harmony who are
also children of affliction. Since its commencement it has
distributed nearly 14,000/, to its numerous claimants,