The Sun.
London, England, 1845-10-14 00:00:00

TO THE EDITOR OF THE SUN.

SlR,—There appears to be a very erroneous opinion
preValent resi.ecting the money employed in the
formation of railways ; some persons talk and write on
the subject, as if there were so much gold and silver
actually sunk and deposited in the soil, instead of iron,
stone, and wood. The fact is, that no money is lost to
the community, although such immense sums are ex-
pended, and no pressure can, or ought to be, apprehended
or felt in the Money Market, unless more cogent reasons
be addueed than have hitherto appeared in some of the
newspapers and other publications. These remarks will
also apply to the speculators in shares ; if A buys of B,
for instance, on the Stock Exchange, the transaction is
merely a barter. A takes the shares, and B receives the
proceeds, which he again employs; therefore if shares or
stock be taken out of the market the money still remains
there for future operations..

Indeed, all the ramifications of the railway system,
from the daily labourer up to the wealthy iron manu-
facturer, may be considered as a species of barter or ex-
change of money for work and materials. Permit me
to examine its various phases, seriatim—at least so far
as the general currency of the United Kingdom is con-
cerned. First ; upon the pre jection, or formation of a
company, the deposits of the subscribers are paid into
some local bank; perchance to be invested in Exchequer-
bills or stock, until the ensuing meeting of Parliament ;
they are then paid into the Bank of England, and re-
main under the control of the Accountant-General as a
guarantee for the bond fide nature of the undertaking ;
now, in these primary stages, whether the deposits be
invested in the funds, or used by the local banks in loans
and discounts, or subsequently to augment the circula
tion of the Bank of England and its branches, there is
no question but that the amount thereof will be in the
market in some shape or another, for it is quite absurd
to suppose that the banking establishments keep their
customers' bal, nces in the iron repositories unemployed,
when, in fact (as is well known), that ail the private
London, and many of the provincial bankers, depend
solely upon these resources, as a set-off for the expenses
and trouble of keeping their clients' accounts, without
any charge of commission whatever.
The next stage ib, either the passing or rejection of
the Bill by Parliament. In either case the deposits are
returned, and most likely lodged at their old quarters in
the local bank ; if the Bill be rejected, the company is
of course then dissolved, and the deposits (less the ex-
penses) returned to the subscribers.
I now proceed to notice the operations of the company
incorporated. After due registration of the proprietors,
the first step will probably be for the directors to make
a call—how many of the subscribers, to some of the
schemes, will be at home on that occasion, Pun,lt can
better illustrate than myself ; sufficit for me to say, that
these calls must not be slighted or disregarded, either
by the then registered proprietors, or their heirs, exe-
cutors, or assigns. And here I would beg to observe on
the awful responsibility involved by the indiscriminatt,
application for shares—no matter what the project is, or
who are the projectors—every one must, or ought to be
aware, that after paying the subscription deposits, at the
banker's, he cannot get a negotiable title for his scrip
without first signing the subscribers' agreement and
Parliamentary deeds ; wherein he engages for himself,
his heirs, and executors, to pay up all the calls for which
he is liable to the full extent of his subscription. Look
at this and take warning, ye professional men and
'fathers of limited incomes, engaged in these pursuits.
and tremble for the future welfare of your wives and
children, should it please the Almighty to remove you
suddenly from them—and ye, tradesmen, who perhaps
have, during a long course of honest industry, saved a
few hundred pounds—how can many of ye submit to be
so entrapped by some of these cunning soi-disant direc-
tors to write and sign the deeds for hundreds of shares,
upon condition of giving them one-half, for the use of
their influence in obtaining them ? So that, for the
sake of a moiety of the premiums (if any) you incur
all the risk, as well as responsibility, for future calls.
The instalments, or calls, are now coming in, and the
next step in advance will be, the purchase of land : and
here again the proceeds will either go to the landlord,
to pay off some old mortgage, or they are re-investeil,
or lodged to his credit at his banker's until some suitable
investment be found for them.

The levels, cuttings, embankments, tunnellit gs, &c.,
are also now in progress, and large sums are drawn from
the bank and disbursed, every week, to the men employed
which finds its way to the bakers, butchers, and general
shopkeepers, for food and clothing for themselves and
families. With a portion of these moneys, on market
days, the bakers buy corn of the farmers ; the butchers
buy cattle of the grazers ; and the shopkeepers hand
over their weekly or monthly receipts to the mer-
chant, manufacturer, or wholesale houses ; which sums
are again deposited at the bank, to the credit of their
several accounts.

And finally, comes the liquidation of all the expenses
for the rails, engines, law charges and surveys, &c., &c.;
but, as in the former case, wages for labour and work
done, form the principal items—more especially in the
manufacture of iiron. The same remarks will equally
apply, both to the professional gentlemen and iron
masters, as well as to the contractors, for any specific
work, at a fixed price. Thus, it will be seen, that
through the medium of the various banks, the permuta-
tions and combinations of moneys, discounts and credits,
are continually going on, to an enormous extent; whilst
only a small, comparative amount of cash, is actually re-
quired, to adjust the balances between the respective
Turtles.

Perhaps I cannot better illustrate these important
operations, than by a reference to the clearing house in
London, where upwards of four millions sterling are (on
an average) daily liquidated, by the mere passing of
cheques, exclusively, between the private banking-houses
in the City.
On a future occasion, I may probably offer a few re-
marks on the reproductive process which the capital of
this country is at present undergoing. Many who now
read these lines will, in all likelihood, live td witness the
total extinction of the National Debt, by the immense
revenue which railways will ultimately be the means of
bringing into operation for that purpose.—l am, Sir, &c.,
Oct. 7, 1845. COSMOPOLITE.

MALICIOUS OUTRAGE AT DALIIAIII.-,--011 Saturday
night last, the 4th inst., some evil-disposed per,on or persons
entered the sheep-fold of Mr. William King of Wiliam, broke
the neck of three ewe sheep and left them ; but we are
happy to add, that as Mr. King is in an association, the per-
petrators have been foiled their attempt to injure him.—
Bury Herald.