The Sun.
London, England, 1844-12-26 00:00:00

CURRENCY OF SCOTLAND.

I

•
'rom the Edinbu"gh Evening Post and Scottish Record.)
Remarks on the Speeches made at the stated General
Meeting of Road Trustees, Commissioners of Sup-
Ply, and Justices of the Peace for the county of
Mid-Lothian, held on Tuesday, the I9th inst., re-
garding the contemplated change by Government in
• the Currency of Scotland.
.; •• After perusing these speeches, it is impossible to
refrain from expressing deep regret at the opinions
entertained by some of the members of that meeting,
'which are evidently founded upon erroneous views,
Misconceptions on various points connected with this
very important subject, and a total misapprehension of
the true and actual position of this country.
A Noble Viscount held, that "it was idle for that
Meeting to talk of what measures might be in con-
' emplation " thereby, declaring, that at the moment he
bad entirely forgot (for he is too high-minded a No-
bleman wilfully to misrepresent) that the Right Hon.
' rinronet at the head of her Majesty's Government had
Intimated in his place in the House of Commons, on
the 27th June last, "the intention of Government to
*pply themselves, after friendly communications with
the parties interested in the banking establishments of
Scotland and Ireland, to frame and bring forward
beasures for the regulation of the currency of these
kingdoms, similar to the measure now before the
."douse."

If such an intimation cannot be held as evidence of
What are the intentions of Government (taken in con-
nexion with the formerly declared sentiments of the
Premier, and the details of the measures passed for
the regulation of the currency in England), it seems
difficult to conceive in what less ambiguous language
the Government can convey an intimation of its con-
tnplated measures, or of the objects it has ultimately
M view. It would appear the Noble Viscount and
the Noble Baron entertain the opinion, that although
they see a giant flourishing his club, and placing him-
self in the attitude to strike his intended victim, it
Would be much more magnanimous to await the blow
than either to parry it or to use means for averting it
antirtly. Such a course, it is to be hoped, the people
of Scotland will not follow, but that they will heartily
"-operate with those who have expressed their alarms,
and their anxious desire that Government would let
the Scotch system and currency alone, and who have
--1,:)Y such a procedure truly estimated the notice given
'by the Premier, and acted the fair and open part of
Making him aware of the general sentiments of the
Country, and that as early as possible, thereby to in-
duce him to reconsider the subject, and, if possible,
save Scotland from harsh and ruinous measures.
• The :Noble Viscount, whilst he admitted "the sta-
bility and success of the system of banking in Scot-
livid and its great utility to the country," demurred
)" to the statements that the system of cash credits
depended upon the issue of one pound notes, and that
their abolition would form an impediment to the sys-
tem of allowing interest on deposits." Now, the ad-
Itission and the demurrer are so irreconcilable with
each other, that it is apprehended there exists some
error in the reporting—the more especially, when it
is known and recollected that the same parties who
have joined in his Lordship's admission are completely
at Variance with him as to his demurrer, seeing that
ouch demurrer cannot be supported by, but is con-
trary to, all the evidence given before the Committees
of both Houses of Parliament, particularly in 1826,
When, it was shown that the system and its utility
'depended upon the continuance of issue of one pound
'lutes, " which, if annihilated, would not only prove a
complete alteration and breaking up of the system,
but likewise cause the withdrawal of cash credits and
force a diminution, if not total discontinuance, of in-
terest on deposited money"—a proposition for which
Purpose, be it remarked, the public newspapers a short
time ago stated had already been mooted, although
successfully resisted by some of the banks.
The Noble Viscount, in continuation, informed the
Meeting that some statements had been made else-
where, leading to the conclusion " that notes ought
not to be convertible ; again, there were others who
nontended that although notes ought to be convertible,
• still provided each bank has a total deposit to answer
any demands upon it, that this is quite equal to a
g°lfl circulation in the country." Now here it is
cite evident his Lordship alludes to two very dif•
lerent opinions. As to the first, it is notorious that
he will find few, if any advocates for it in Scotland ;
and with respect to the second, can there be anything
tosetrtal in a circulation if the banks meet all the
gitimate demands made upon them, as they un-
questionably do ? What more can be required—
why insist that our garments should be covered with
gold when humbler and less costly vestments suit our
means and wishes—when we are willing to leave the
Lire expensive but not more useful apparel to others,
-assent to its introduction and to its use ?
.t.l,4-he Noble Viscount, however, proceeded to state,
~-„a,t Scotland should have gold, as it might be re-
i‘-t4,'"vd from various causes—to meet the drains aris-
spe , through had harvests, foreign wars, subsidies, and
the "ntltions, when a drain of gold may take place—
th having occurred, " and might occur again—and
the
it was the duty of a wise Government to see that
'le circulation of this kingdom was in such a state,
that when any emergency shall occur, use shall be
able to supply the deficiency caused by the outpour-
ing of the coin of the country ;"—and he emphatically
mks, " What is Scotland to do in such a case ? Could
she furnish her quota ?" No, says the Noble Lord,
It
not Scotland, but the Bank of England, and the
People of England, would furnish the proportion ;"
and, then, he further puts the question, " Was it fair
tu ask England to bear the burden for us ?" which
• .„,eXpressions and queries were echoed by the Noble
Aiaron.

This declaration, these queries, and volunteered re-
Vies, would lead very naturally to the belief that the
Jmk of England, and the people of England are very
I'l used indeed by the people of Scotland, who are thus
Inade to appear—the inference being unavoidable—as
.11 cunning, selfish, unjust, and oppressive race ; but,
°efore such severe charges can be admitted, surely
they should be proved—and, therefore, let facts be exa-
'llllnsd so as to determine the point. First, then, as to
the means which Scotland uses for procuring grain
ken a defective harvest occurs :—Her merchants,
e those in England, send out their orders to Dant-
Petersburgh, Hamburgh, Odessa, &c., &c., for
shipments
of wheat, &c. These shipments are effected
Ythes-resident merchants at the different ports, who
bey the grain and pay for it in the local currency ofbey'le country ; these merchants reimbursing themselves
for the value of the cargoes by drawing bills payable
la London for their amount or cost. These bills are
13';'visled for and paid when due by the parties inter-
ested in these cargoes, through their respective
'linkers in Scotland, who, having available funds at
all times in the hands of their London correspondents,
lady not only for the demands of their customers
but for retiring their own various obligations, are
thus,-N enabled to pay the bills drawn for the grain.
ow, in all these operations, is it not self-evident
that gold has not been employed, and is it not well
"own that exactly a similar procedure would, and
..11tually does take place, whether the grain abroad
.1"/ purchased for and shipped to any place in
:ltd-Lothian
in Lanarkshire, in Middlesex, or
:?‘_,lcl-Lothian ? Yet it is quite true that if a con-
' "klerable number of such shipments be made simultane-
‘ cusly then the effect would be, a turnieg of the ex-
changes against Great Britain, because so many
extra bills drawn for the value of the cargoes must,
at one and the same time, be thrown into the market
on the exchanges, and consequently affect the
~enurse of exchange betwixt the places where they are
hrawn and London. But as such transactions are
Well known and their effect upon the exchanges an-
ticipated, it therefore naturally follows that those
Persons, whose business it is to conduct finance
,t'iPerations, watch events, and, foreseeing the more
than probable fluctuations in the exchanges, acquire
ld by converting the notes of the Bank of Eng-
and, which they possess, into that precious metal,
and shipping the gold off immediately to the Conti-
nent, avail themselves of the profit arising through
such 'finance operations.
from this explanation, it appears that the people
(4' Scotland do not lac; any burden upon the people of
nftland, neither do•they' apply to the Bank of Eng-
land for gold, on account of their importations of
Fain, and therefore the statements or assumptions,
i at there was laid a burden upon the people of Eng-
-11.441, or that there exists a necessity for their
furnishing any particular quota of gold (from
the
circulation) for such a purpose, on account of
ihe people of Scotland is pure declamation, un-
;llPPorted by any proof. Still, with regard to
*tie finance operations above alluded to, and the pre-
, se a ntation to the Bank of England of its own promis-
PT notes, to facilitate such operations, that proce-
dure is not only just and legal, but is in entire ac-
cordance with the covenant entered into betwixt that
establishment and the Government, for behoof of the
itiltl'h public, by which covenant, on the one part,
ci Is stipulated that the Bank of England shall on
r:lhand (and irrespective of the cause for such de-
-4,11d0, furnish gold or bullion (but equal in amount
o1hY) to any of her notes presented for payment; and,
11 tasthe other part, and for such considerations, cer-
reh? privileges tending to very beneficial pecuniary
were conferred by Government upon that
o rPoration, so that, consequently, there is no ground
Somplaint can he made for such demand, founded,
la Just shown, upon a provision framed by the wis-
--!,131
iluf the Legislature.
That the arrangement just noticed has proved most
' ,tableP to the Bank of England, is indisputable—
ros to its numerous heavy bonuses, and large divi-
"ls during the last 40 years) ; but, besides these
siffr e
Profits, consult the various returns made by it to the
182nrent Parliamentary Committees of 1819,
a 1832, 1838, 1840, and 1841, and, at
ce,l'ance, it will be seen, that with few ex-
, birl°lls and these only very lately the de-
Wits, (publlc and private) in the hands of that
a:nouxiit o
(seeing
of
gaitheyhave at all times far exceeded the
gold in the vaults) must be held

as having furnished the means for procuring and
exhibiting the stock of gold or bullion in the Bank,
and so far as these deposits consisted of public funds,
there was thereby a loss sustained by the empire,
because the Bank does not allow any interest on
deposits, so that thus Scotland shares in the expense
of maintaining in England a gold currency, and in
providing gold for the uses of Government.
These facts, then, show that the Noble Viscount
and the Noble Baron laboured under a misapprehen-
sion, when they gave it as their opinion that the
burden of finding gold for Scotch purposes lay upon
the people of England ; therefore the good
people of Scotland may feel quite at their ease
upon this point, the more especially as, had the views
of these Noble Lcrds been correct, their effect, in
short, would have been this—that the people of
England would be obliged to collect throughout that
kingdom, the amount (in sovereigns) requisite to
pay for the cargoes of imported grain, consequently
withdrawing that amount from the circulation and
the ordinary uses of the country, a course, and a
result, never desired nor contemplated by the Premier,
as is proved by the Government having arranged with
the Bank of England for valuable considerations to
provide gold to pay its own notes when demanded.
Then, with respect to providing means for meeting
the payments requisite for carrying on war, paying
subsidies, and sustaining foreign speculations, it ap-
pears unnecessary, as regards the last, to do more
than refer to what has been already noticed, as to
importations of foreign grain, which are in fact fo-
reign speculations, and therefore a similar procedure
and the like observations are applicable to them ;
but with regard to meeting the expenditure of fo-
reign wars and subsidies, it is surely only requisite
to state, that so far as these are not provided for at
home, they are met by bills being drawn on the
Treasury, or on the different military and naval de-
partments of Government by the respective officers
to whom are intrusted such details. And here, again,
the remark occurs, that by such bills appearing nu-
merously in any particular part of the globe, the
exchanges there may rule against Great Britain, and
gold may again be demanded by the financiers
for their operations in these quarters, but,
whether they operate or not, it is evident that
as less foreign money (at the place of expenditure
and bill drawing) can be obtained for these bills on
the Treasury, &c., owing to the increased de-
mand for local moneys, the sterling amount must also
be increased, and a loss be thereby sustained. But
who pays for that ? Surely not the people of Eng-
land alone, but the whole inhabitants of the empire
who pay such losses and expenditure through the
medium of taxation, whereof Scotland contributes
5,000,0001. annually, which sum, be it however
noticed, is not remitted in Scotch notes, these being
confined within that kingdom.
The Noble Baron stated that the people of England
"pay every shilling of the expense of maintaining a
metallic currency, while Scotland benefits by the
stability of the standard, maintained at the expense
of England," and added " that this is the plain, the
naked truth," but unfortunately he did not explain
how the people of Scotland benefited by the people
of England maintaining a metallic currency. That
the people in England pay their bankers a very smart
commission on account of the business transacted by
them, is true, and that the people in Scotland have
hitherto been spared that additional cost in carrying
on their business is also true ; but it appears difficult
to comprehend, how a Scotchman should be consi-
dered liable for supporting the expenses of his neigh-
bour's establishment, he being perfectly satisfied
with his present state and comforts. Besides, the
whole world is ready to deal with, and to trust him,
to receive his orders, to receive his notes in payment
of any furnishings or supplies, knowing well that he
thereby secures the same sterling
returns and facili-
ties as he obtains from his friends in the south ; and
there carutot be a stronger illustration on this point,
than by referring to the fact, that although the
amount of the revenue of Scotland is upwards of
s,ooo,oool—[See Finance Accounts I. viii. for the
year ended fifth January, 1844, ordered to be printed
by, the House of Commons, 26th March, 1844, pp.
26 to 62]—and collected in Scotch notes, the Trea-
sury receives that amount from Scotland, in the very
same materials as the revenue collected in England,
nor does the Government experience the least diffi•
culty in providing for its various payments in every
part of the globe, whilst it possesses such materials,
convertible into gold, at the pleasure of the holders, by
an agreement long settled and lately renewed by a
wise Government. SCOTUS.
Edinburgh, 30th Nov., 1844.

OUR FINANCIAL DIFFICULTIES
AND THEIR REMEDY.
(From the Sentinel.)
When Sir R. Peel accepted office his dupe and his
syeophants loudly and confidently proclaimed the
return of national prosperity. Redeunt Saturnia regna,
was the shout of the Commons and the echo of the
Lords. Under his protecting aegis, the landed interest
felt themselves secure. The moneyed men rejoiced
when they beheld thee champion of the bullionists
scaofer safely domiciled
is ofd ow theni
tgoroi naaigonged -
havesmt roene
et .y not But
been
et
de
nrt
ub
ge
realised.
. T antici-
pationsh e
lD4d
seosnw.
agricultural labourer starves and in desperation fires
the rick. The tenant, through low prices, his taxes
being undiminished, is compelled to pay rent out of
capital, all profits having vanished. His accumulations
ceasing, his consumption ceases, and other producers,
who used to supply his wants, find their goods lying
on their hands. Bankers cannot lend their money,
since there are no channels of trade open to prudence ;
and cautious bankers shun rash speculators. Where
are the exponents of this state of things ? Where are
the proofs of this stagnation and depression ? We
refer to the farmers, who demand the repeal of the
malt-tax; to the manufacturers, who insist on abolish-
ing the duty on raw cotton ; to those engaged in the
soap trade, who pray relief from the Excise; to the
dealers in c”lonial produce, who clamour for the re-
mission of the sugar duties ; to the holders of realised
possessions, who complain of the infliction of the pro-
perty-tax; and to the struggling professionals of
every grade, who protest against any further fiscal
diminution of their incomes.
Sir R. Peel asked for a trial ; he has had it, and
proved himself to be a quack. It is not true, honestly
viewed, that he has made the revenue equal to the
expenditure; had he done so, by increasing consump-
tion and profits, he would have displayed the wisdom
of a statesman ; but when he effects his object by ar-
resting progressive accumulations, he simply performs
a trick of legerdemain, slipping the card from one
hand to another. He has had the fair trial for which
he asked, and there is not a class in society which is
not sinking under the weight of financial difficulties.
The farmers, gulled by his plausibilities, now see
through his perfidy; and, while he has lost their con-
fidence, he has not won the support of the manufac-
turers. His acts disavow his principles. He pro-
claims theories, which he lacks the moral courage to
reduce into practice. He has no faith in truth. All
his hopes are based on his presumed tact, and what
Lord Stanley called "his art of dreseing up a case."
llis colleague knows him well, and compliments his
chief on being an accomplished trickster.
We turn from Sir R. Peel to Mr. John Taylor.
We have seen the result of the Tamworth prophecies;
let us refer to those of Mr. Taylor. In 1833, this
gentleman published a pamphlet, entitled " Currency
Fallacies Refuted," in which we discover the follow-
ing prediction, which has been fulfilled to the letter.
We earnestly implore every, man, whose mild is not
locked up and barred by prejudice, to ponder well on
the prophecy, and on its fulfilment.
"If we are to adhere to a metallic currency on the
present system, it is certain that heavy taxes cannot
he paid much longer by the producing classes. They
have found that out ; and this makes them so cla-
morous for the repeal of the house and window taxes.
Whenever these are abolished, others will remain,
equally obnoxious to the supposed cause of their dis-
tress ; they must also he reduced ; till at last the
Minister, driven to extremes, will consent to, if he
does not originate, a property-tax, in lieu of all other
imposts pressing particularly on the industrious
classes. Let this be agreed to, and what then will be
the condition of the landed interest? With corn at
40s. a quarter, to which we shall come when the taxes
are commuted, it will take nearly the half of every
man's property to pay his share of the public debt.
Will the remaining half suffice to discharge his other
private obligations, all of them enhanced in the ssme
degree ? Even if it should, what a prodigious revo-
lution will have been quietly effected, in a few years,
by that Bill for restoring cash payments, which was
passed with acclamations by the wealthy members of
the State, but which has brought with it so much
misery to the productive classes. And how truly
does it illustrate the remark of a late eminent
Christian philosopher (Robert In the moral
system it is a part of the wise arrangements of Pro-
vidence, that no member shall suffer alone ; that if
the lower classes are involved in wretchedness and
beggary, the more elevated shall not enjoy their
prosperity unimpaired.' "
This is the language of a statesman and a philan-
thropist, of a philosopher able to trace the relation
between cause and effect; and, assuredly, the day will
come when John Taylor will take rank among the
most signal benefactors of the human race.
The cause of all the distress is the monopoly of gold.
We cannot admire, nay we cannot even comprehend,
he logic of those pseudo free-traders, who would
throw protection round a particular metal. All com-
modities, say they, should be left free to the in-
fluences and action of supply and demand, the com-
modity, gold, excepted. We should be glad to hear
the reasons for this preference explained by some
member of the League at Covent-garden Theatre.
It would be edifying to be told, why the manu-
facturers, who desire to push the foreign sale
of their goods, offer every possible inducement
to foreigners to take away gold and leave the
I goods in our warehouses ; for, certainly, if
• gold is cheaper than goods, the foreigner will take

the gold in payment for his imports. And when he
has drained us of the cherished metal, the Bank con-
tracts its issues, refuses discounts, compels the holders
of all commodities to rush simultaneously into the
market, to compete against each other as vendors,
and, by a glut, to reduce prices below the cost of pro-
duction. It is the monopoly of gold which creates
panics, and arrests progressive accumulations of real
wealth ; thus the fund of wages diminishes, as popu-
lation advances, and pauperism demoralises the race
of operatives, makes bankrupts of the middle classes,
and compels affrighted property to vote more soldiers
and more police.
Let us endeavour to simplify this complex ques-
tion. Eight pennyweights and a half of gold,
thirty-four shillings in silver, and a quarter of wheat,
are all reciprocally natural equivalents. Impose a
tax on the wheat, and it rises in price. If, then, you
do not -allow the gold to rise, you disturb the rela-
tions that formerly existed. Keep gold at its natural,
or untaxed price, and how can it any longer he the
just measure of the artificial and taxed price of wheat ?
The consequence, then, is, that you drag down the
taxed wheat to the price of the untaxed gold, and thus
throw that tax on the producer, which ought to be
paid by the consumer. And as all branches of in-
dustry are equally affected by the monopoly of gold,
all taxes necessarily fall on labour, and property goes
scot free. This is the cunning device of Sir R. Peel,
who has liberated the aristocracy from paying their
just contributions to the revenue. Hence he is their
pet statesman.
But, if these principles are true, as we firmly be-
lieve them to be, how blinded the manufacturers must
be to their true interest, while, in waging war against
the corn and sugar monopolies, they show such an
extraordinary desire to protect a metal. Let us see
how it affects them in that foreign trade on which
they have set their hearts. Prices, we shall suppose,
have risen to a remunerating rate, and are continuing
to rise ; the foreigner comes into our market, and
offers his goods for sale ; he inquires what he can get
hack for them in barter or exchange, and ascertains
that gold is the cheapest of all commodities against
which he can exchange his wares. Of course he takes
the gold. Then the terrified Bank of England puts on
the screw. Money becomes scarce ; interest on loans is
increased, and with it the rate of discount. Bankers draw
in their accommodation. Why is all this ? Because
the Bank of England, the prime mover in the whole
system, must redeem its notes on demand at the
Mint price, not at the market price ; therefore it
keeps in circulation the smallest amount of notes pos-
sible. It is the foreigner who has abstracted our
gold, because gold is cheaper than goods. and he
causes all the mischief. What is the remedy ? Let
the gold rise, and then the inducement to its export
is removed, and the goods go instead of the gold.
How is this to be effected ? By abolishing the mo-
nopoly of the precious metals.
lt is to this simple point we would direct atten-
tion. If gold must be cheap, place everything else
on the same footing. Cheap Queens, cheap bishops,
cheap landlords, cheap soldiers and sailors, cheap fund-
holders ! To do this, you must abolish the debt, and
reduce the whole expenditure. Be it so, the bullion-
ists like this system ; but let us no longer be insulted
by the barefaced cruelty of compelling industry to
pay high taxes out of low prices.