The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1836-12-09 00:00:00

THEATRE-ROVAL, LIVERPOOL.

For the BENEFIr of M. W. HOARD and Mr. LLOYDS,
This Present FRIDAY EVENING, the 9th of December,
On which occasion, Mr. HAMMOND, formerly of this
Theatre, who has kindly offered his services, will make
his first appearance these two years.
riILIHE Entertainments will commence with Morton's Comedy
of THE SCHOOL I,JF REFORM.
Robert Tyke. Mr. Hammond,
Lord Avondale fir. Stuart.
General Tarragon Mr. Baker.
Mr. Ferment Mr. W. Howard.
Mrs. Ferment. Hiss Faucit.
Mrs. St. Clair Mrs. Baker.
Julia Miss Chaplin.
Shelah Mrs. Clarke.
After which, the Popular new Drama called
ROBERT isdACAIRE.
Robert Macaire Mr. W. Howard.
Jaques Strop Mr. Baker.
Marie Miss Faucit.
To conclude with the the Burlesque Tragcdy of
CHRONONOTONTHOLOGOS.

THEATRE ROYAL, LIVERPOOL.
►7IHE Public is respectfully informed, that the extraordinary
JL Artistes

THE BEDOUIN ARABS,
Whine performances during the last four months in London at-
tracted crowded audiences at the Colosseum and at the Surrey
Theatre, are engaged

FOSITIViiLY FOR FIVR NIGHTS ONLY,
and will make their first appearance here on MONDAY next,
December 12th, in their novel and highly interesting Elite' -
tainment, in twn Parts, called
THE ARABIAN FESTIVAL,
introducing the wonderfuland novel Feats of the native Bedo►tins.

Mr. EDWIN FORREST,
•
the popular Tragedian of the American Theatres, whose success
at the Theatre-Royal, Drury-lane, in the various characters in
which he has appeared there, has been most decided, is engaged
Font FIVE NIGHTS,
_ _ _

and will make his first appearance at this Theatre on MONDAY,
December 26th.

Mr. itigE,
Of the American Theatres, the eelebrated representative of
J 13.1 CROW,-

now performing at the Adelphi Theatre, London, to crowded
auditories is engaged
Fon Six NIGHTS,
and will make his first appearance here in the week succeeding
Mr. Edwin Forrest's Engagement.
Arrangements have been made a ith
A COMPANY OF FRENCH PERFORMERS
for a limited number of Nights, and the Amusements of the
Theatre will be vat ied by a succession of French Performances,
commencing on Mos DAY, December 19th.
Mr. KNowLEs's New Drama of

THE WRECKER'S DAUGHTER,
produced last week with the most decided success at the
Theatre-Royal, Drury-lane, is in preparation, and will be per-
formed iu the course of a few Nigh's.

Mit, tiberpoot ,t-''.taiOarti.

FRIDAY MORNING, DECEMBER 9, 1836.

We are very sorry to find, by the latest arrivals from
Newfoundland, that the same system of brutal intimida-
tion, that has done so much mischief in Ireland, had been
recently practised in that colony, at the general election
which had just taken place. We cannot advert to this
topic without giving expression to feelings of the most
intense abliorence against the lawless ferocity displayed
on this occasion by the sanguinary mob of savages, who
were urged to their murderous avocation by the ruffian
popish priests. When shall we possess a government
strong enough, and virtuous enough, to repress these
scandalous outrages ? The passages we are about to
quote from the Newfoundland Public Ledger, naturally
suggest the necessity of a strong and vigorous ministry
in, order that the enactment of similar scenes may be
prevented in Ireland, at the period of the approaching
general election.

St. John's, November 18, 1836.
We gave on Tuesday last, some account of the tumulteus and
riotous proceedings which had taken place on Monday the first
day of the general election for this district. We stated that
such was the riot and disorder, that the civil power was unable
to preserve the public peace, although no less than 140 special
constables had been sworn in for that purpose; and that even-
tually it was found necessary to call out the military force,
which remained under arms during the remainder of the day
and the whole of Monday night. Such had been the confusion
that we haj been unable satisfactorily to ascertain whether all
the candidates had been nominated or not; but we have since
learnt that they were all prOPesed and seconded by their respec
Live friends:—the polling, as we stated before, was necessarily
postponed until the following day.
On Tuesday morning the several candidates proceeded to the
hustings, where there were evident indications of a repetition of
Me disgraceful proceedings of the former day ; whereupon
Messrs. grieve, Kough, and Gill, to prevent the execution of
threats of Murder and other violence, resigned the contest, (un-
der protest of course,) and left the field to the ferocious mob,
and their favourite leaders Morris, Kent, and Carson, who were
declared by the returning. offider duly returned. The rabble
then took possession, us tt were, of the town, through which
they exultingly paraded, yelling and "bah"ing " Down with
the Toriest''"• Down with the mad-dogs !" and annoying and
terrifying ,the peaceable inhabitants, wherever the military
were not present to check the lawless proceedings :—from these,
they fled like chaff before the wind, as often as they were pur-
*men.

'We observed in our last, that the turbulent readers of the
Radical faction, Carson, Morris, and Kent, hadinoCbance what-
ever of coming in for the representation, but by intimidating
the independent electors; and the amount of that intimidation
and the manner of it, are beyond our pen to describe,—
There seemed to be an immense influx of strangers front
the.outharbours to lend a willing hand in overawing the peace-
ful electors, and no less than four hundred ruffians from
that notoriously infamous place Cat bunear are said to have
been present, their hands but recently imbrued in the blood
Which they had caused to flow in beating down all op-
nosition to the election of the radical candidates in Conception
ay, a history of the villainous transactions connected with
Which it became our duty to place upon record a week or two
once. In short, the town was crammed to repletion with ill-
looking fellows, who sought every pretext for kicking up rows,
and whose acts of violence upon the special constables and upon
Others of the inhabitants were not only numerous but of the
attest ferocious description. In short a horde of Red Indians
let loose upon the town from their native wilds could scarcely
• tfave presented an appearance of more savage determination.
Au eye-witness to mica many ot her acts of cowardly ruffianism,
assures us that he saw one individual beaten and knocked down,
and while lying insensible and apparently lifeless on the ground,
his huge assailant gave the poor fellow a most unmerciful kick,
and was about to jump upon him, when he was suddenly over-
powered and restrained from his murderous intention.

But not to dwell upon these acts of savage ferocity—it is clear
that such an amount of brute force could nut have beeu brought
together for one common object without the active agency of
the'Priests—nay, we have had the fact before our eyes that
these personages have all along been most zealous and industri-
ous partizans of the revolutionary faction. There is no mystery
about it; they openly and shamelessly desecrate their altars to
the service of a must unholy cause, and even the confessional
le made subservient to their political designs. They deny the
rites of the church to those whose political creed does not
square with their own, and they oppress and persecute by all
manner of means those who offer the slightest resistance to their
Political domination. Holding " the terrors of the church"
within their grasp, they have an awful influence over the great
Mass of our population, who are ignorant and unlettered in the
last degree, but upon, every householder among whom, even
Upon him who is the inhabitant of a mere log-hut, the elective
franchise has been bestowed.
We have in innumerable instances reiterated the truth that
cis Majesty's government committed a very serious error in
tender'eg the principles of democracy so large an ingredient in
the con: Itution of this country ; and that the elective franchise
wills: he very considerably narrowed indeed before the form of
government which has been given to us can poSsibly answer
the purposes for which it was intended. The views which we
took were founded upon experience, and have been acceded to,
We believe, by all rational men. But the history of the last
Week, or two induces us to thick that we have not proposed a
4effleient remedy for the evils with which the country is beset,
4,11(1 that however limited the elective franchise may' be made,
ine same evils will abound so long as we have for the most part
lt Catholic population, controlled in their every movement by
:It ignorant, a vicious, and a political priesthood. We have
weep that the franchise Which has been given to the great hulk
i.
the people, has virtually been reflected back upon the priests;
keg therefore nominate, and :hey through the instrumentality
their slavish adherents, return to the House of Assembly
rlltty nearly whom they please. We have had a practical il-
,,station of the truth of this remark in the late proceedings at
parbour Grace when all the four candidates who had been re-
'urged came iu under the protection of Fattier Dalton and his
clerical colleagues, and where only one tally was permitted to
he L
rought up for the opposing candidates we have ano• '
ii"..er proof of the correctness of our views, in the scenes which
tiZ.Ve ()used before us here within the present week. Nor is
is all, for we are confidently assured—(although we do not
e°,l_3,ttch for the truth of this), that Morris after being returned for
pis place, has also ctually been returned for the district of
errylend, under they nfluence of Father Duffy !
'there seems to us, under all the circumstances, to be but one
11,4„,.r5e now which the country ought to ackopt ;—and that is the
colltig before the Imperial Parliament ...,4aol and dispassionatearrative of the facts
,h'emected with our political condition—C o wing-p of the working of that sys.4.m which hwever it
itil_ght hauve been designed for our benefit, has already produced
4b`f.4leulable evils, and will in the end, if persisted in, bring
andtotal ruin. We may, then, pray that the royal charter
andil.t_ing to this colorty its present constitution be rescinded,
ih„„as the only alternative left us, that our local government
0171 henceforth consist of a Governor and Legislative Council.
doetectionable as this ferns may he in its abstract principle, it
ap„„aPpear to us that tinder all the circumstances, it is the most
Ille'retile to this country ; and we would therefore urge an
une and very serious consideration of the subject.

As Mlle journalists, whose business it is to watch
over the welfare or the cluntrv, we have often very de-
wi4te, and very difficult &vies to perform. Sornetnues
e cannot help percei ing a conflict.. between particular
liaterttstA, involving fin st ions of intricacy not easy to clis-
eptikngle, and conditett-1 I,viti a Lost spirit hard to re-

eoneile, Sometimes w e are ealled upon to quiet alarm,
and sometimes to cot-muerte caution ; and fool that it
would be equally wrong to neglect the gathering of dark
clouds in the political horizon; as it would be always to
forbode a storm. On no occasion do we desire our read-

ers to regard us as oracles, but always to take together
our judgments, and the reasons upon which they are
founded. We thus remove a great deal of heavy respon-
sibility from ourselves, by placing others in our own po-
sition, that they may see the same objects with their own
eyes. These few preliminary observations we feel the
more imperatively called upon to make now, because the
subject which we are about to discuss is one of vital in-
terest to the whole community, and implicates, at the,
same time, some questions of deeper and more peculiar
importance to particular sections of it—we mean, the
monetary state of England. We have heard for some
time, and from various quarters, heavy complaints of the
embarrassed state of trade—the difficulties with which
commercial enterprise has to contend—the obstructions
which hinder manufacturing movements—and, generally,
the alarming aspect of all affairs dependent. upon our,
monetary system. And we are assured that these mur-
murs are louder and more general than usual; they are
not the periodical complainings of diminished trade at
the " winter solstice," which we have always expected
and commonly seen depart before the "sun entered
Aries." No ; we fear that if this be the " winter of our
discontent," we shall find a summer corresponding with
it. As we hare seen in no publication, and heard in no
conference with others, any sound explanation of the
present embarrassments, we now, unaided by the light
of our contemporaries, venture to enter upon the deli-
cate and difficult task of discussing this most momentous
subject.

That all the evil which we have stated as now existing
does really exist; may very briefly, and, at the same time,
incontestably be made to appear, by a reference to a few
concurrent circumstances in the country, which, even to
the most casual glance, have an obvious relation and con-
nexion with each other, and all united, as we shall soon
attempt to prove, occasion the inconveniences complained
of, and the gloomy prospects in our commercial horizon.
First, the Bank of England has raised its rate of dis-
count to five per cent.—the maximum allowed by law,
and, therefore, evidently pressing upon that limit. Se-
condly, the public funds have sunk below the average of
many years. Thirdly, one large banking establishment
has stopped payment, and two or three others, of various
magnitude, have been driven to the same cessation.
Fourthly, manufacturers have been obliged, either wholly
to suspend operations, or to work " limited hours."
Fifthly, many large mercantile firms, of unquestioned
wealth and stability, have been necessitated to contract
the extent of their speculations. These are facts, in
which all parties concur ; or if the two latter, not admit-
ting of arithmetical proof, may be disputed, the three for-
mer are beyond all contradiction. But, with these facts
before us, what explananation has been offered of their
cause that is in the least degree satisfactory ? One
blames the Bank of England for capricious conduct, with-
out considering that the Bank of England is prompted in
all its transactions by that common moving principle,
self-interest.. Caprice is almost impossible, certainly dif-
ficultly reconcileable with business transactions, and,
must assuredly, quite untenable when affirmed by one

who deliberately opposes his own welfare. There may

be want of judgment, or error of judgment—there may
be folly and inconsistency; but we cannot allow the slan-
der of caprice, which is a wanton act of injustice, to be

imputed to a corporation of British merchants. The
Bank of England is governed in its rate of discount by
the proportion which demand and capital bear to each
other. When their coffers are ftql, it is more advanta-
geous to them to discount at three per cent, whereby
their deposits become actively profitable, than to keep a

large proportion of those deposits unemployed, and de-
mand five per cent upon the discount of a much smaller
amount; and such is the fineness of profit now in mer-
cantile transactions, in consequence of the magnitude of
returns, that the figurative expression " dust of the ba-
lance" is no longer disregarded. The difference between
a transaction completed with bills discounted at five per
cent, and the same transaction with bills at three per
cent, is such •as to determine the question of transaction
or no transaction; and this will serve to explain why the
mercantile interests are suffering at this moment ; al-
though the superior question still remains unsolved, why
does the Bank of England demand five per cent upon its
discounts? We shall address ourselves to this question
in the sequel. It will be necessary, before we proceed
to that part of our subject, to say a few words in expla-
nation of other causes of the present embarrassment
which we occasionally hear. Among these, our trading
is frequently mentioned. Of this we forbear to say much,
because it is a point admitting of but little direct evi-
dence ; and that which is collaterally afforded is liable to
objections, easily made,' and with difficulty answered.
They who declare it cannot prove it, and, if proved, it
would be an evil of but transitory duration. The expor-
tation of bullion is also mentioned as furnishing a full
solution of the problem.. But, surely, this is an opinion
hastily formed, and must be, as uncerem9niously, aban.
cloned. Though bullion may become currency by merely
altering its form, yet, until it has received that form
which renders it current, it wants the essential quality of
currency, and, consequently, cannot have any immediate
effect upon the money market, or transactions connected
with it. If any private parties were to deposit in the
Bank of England one million of capital, and the Bank
of England was pleased to exchange such deposit for
bullion of equal value, it is clear that the Bank would
always have an ability to pay the million deposited with
them by coining the bullion; but whether the Bank of
England chose to keep this million of bullion in their
"strong holds,". or to suffer it to be exported, like any
other marketable commodity, nothing would be felt in
either case in the money market, or, at most, nothing be-
yond the question of Bank security. They never dis-
count bills with bullion, and if ever bullion is employed
in monetary transactions, it is in only a few rare in-
stances of foreign exchange. The business of trade' de-
pends upon another currency—a currency which we con-
tend has not been narrowed, but diverted. from its former
channel. In order that we may. be distinctly understood
in our position, and then-ce may be appreciated the force
and pertinency of our arguments, we contend, that the
investment of capital in railroads and other joint stock
companies is alone adequate to explain all the circum-
stances of embarrassment which now press, and those
which threaten still more heavily to press, upon the
country. To the proof of this position we shall now
proceed!

If all the capital contemplated to be required to carry
out the various railroads now projected were actually in-
vested in them, (which we well know is not the case,)
there would be nearly sixty millions of money drawn
from some source or other and diverted into novel than •
nels; and if even those projects be completed, there WILL
BE not less than such a sum actually so invested : that is,
in other words, sixty millions of capital will he expended
in materials and labour. A large ironmaster and great
capitalist once observed to us, that this distribution of
wealth would be a positive public blessing; and doubt-
less it is so in a variety of ways. It is a public blessing
to the pauper, who before could not find employment; to
the ironmaster himself-Land perhaps he caught, in the
corner of his eye, some glimpse of this ;--to artizans of
various description ; and through all these, as a medium,
to the community at large, in the reduction of poor-rates,

and in the security which ever attends the full employ-
ment of the poor. But our business now, is to consider
the influence of such an expenditure upon the banking

system, and, through the banks, upon the commercial and
manufacturing interests of the country. These sixty

millions, of which perhaps a tithe part is hardly paid up,

could not. be drawn from the funds—no, not a shilling of
it—for every shilling so drawn from the funds would re-
quire the fixation of another shilling ; and very little of
it could come from the private coffers of individuals, be-

cause millions are never locked up in private coffers.
Whence then must it come ?—what source is there whence

so large a sum can be deuced We answer, that there

are no other imaginable fountains that can supply this
very Ganges of capital than the diGrent banks, in which

the! public place all their strpe: Inoue,

Tiittt is,

sixty millions of capiial must lie drawn, sooner 4 later,
from the chess of the diffo.ent banking, establishments.
throughout England, to provide for the completion of
railroads, &c., now in progress, and projected in the king-
AA what would be the effect of such an abstrac-.
tion or capital ? Why, evidently an abridgment of faci-
lity in discounting bills. There is not a banking-house
in the whole country which does not discount to an
amount beyond its own capital, however ample that ca-
pital may be. Its very existence affirms the fact; and if
the amount of their deposits is lessened, their power to
discount is proportionately curtailed. And we have just
seen, that the heavy demands made upon them to meet
current expenses of present projects, is quite sufficient to
explain why the merchant or manufacturer, though
wealthy, cannot obtain discount, though the banker him-
self is wealthy too. His own wealth is inadequate, and
the wealth.of his customers has been withdrawn. This
fact we think abundantly sufficient to explain the cause
of all the existing embarrassments in trade, and not less
so that of the extraordinary position of the money mar-
ket. We have, and have acknowledged it, supposed a
much larger sum to have been drawn from the hands of
bankers than the present state of railroad expenditure
would justify ; but we think enough has been so drawn
as to account for the sluggish movements of money tran-
sactions and the difficulty encountered in trade, and we
tear as the abstractions increase the embarrassMents will '
increase with them, and it is well to be beforehand with
calamity. "A wise man seetli the evil and hideth him 7
self--'--a fool goeth on and is punished."
We have seen that whenever, if ever, all the present
projected railroads shall be completed, that sixty millions
of capital will be withdrawn from the coffers of bankers.
As a large proportion of this sum is deposited without
any interest, we may, perhaps, without any danger of
great error, consider the whole to average, at present,
four per cent of interest, or nearly two and a half mil-
lions,of profit, substracting, of course, the expenses of
the different establishments, but still leaving the revenue
of a little kingdom. With this we find no fault—it is
legitimately and honourably obtained, and, as we see, in
perfect harmony with the prosperity of the country; but
we cannot conceal from ourselves, nor conscientiously
withhold from our readers, over whose interests we are,
in some degree, guardians, that this change in the bank-
ing system, from causes over which bankers themselves
have no control, is a sufficient ground fur every one to
ascertain the stability of that firm to which he commits
his capital---although the withdrawal of capital, by par-
ties embarking it in railroads, or for any other purpose,
cannot in the least affect the insolvency or the security of
a bank, the capital of whose firm has not been lessened
by other heavy losses, arising from gross mismanagement
or unsuccessful speculations—yet those bankers, which
have been li7ing upon the profits derivable from the use
of the deposits in their hands, either as mortgages or in
discounting bills, will now suffer a heavy reduction in
their income—we see that eventually two millions and a
half of profit will be withdrawn from the entire banking
system.

One great evil, immediately consequent upon this

withdrawing of capital from private banks, is a tempta-
tion to induce the Bank of England to avail itself of the
exclusive privilege it possesses of multiplying its paper
circulation ; and we are aware that this might be done to
a great extent without placing in jeopardy its ultimate
interests, if due judgment were exercised upon its ad-
vance of loans or its facility of discount. Other bank-

ers, as they find their deposited funds diminish, are
obliged to reduce the amount of their discounts; but the
Bank of England is still at liberty, because she possesses
within herself independent powers of production. But
whatever good may sometimes arise from a judicious ex-
ercise of this privilege, we cannot help thinking it a
chartered evil. No corporation, irresponsible to the
country, should be invested with such a controlling in-
fluence over all its monetary transactions. The circum-
stance of its now demanding five per cent upon all bills
is either a proof of its extreme cupidity, or, as we would
rather hope, of its prudent discrimination in discount-
ing. If the Bank of England require five per cent upon
discounts because discounts are impracticable at some
other banks, it is a most reprehensible example of ava•
rice; if it arise from their participation in the circuin-

stances of the times which narrow the business of other
banks,. we cannot but applaud their prudence. But be it
from either of these causes, the result is the same. Five
per cent is demanded, and five per cent is an interest
which will alter the general character of trade ; and the
cause—the only cause, we still maintain, is the abstrac-
tion of large sums for railroads and alter joint stock
companies ; and what renders the prospect more gloomy,
is that there is no probability, we might say possibility,
of any considerable part of this -capital finding its way
again into the hands of bankers. No : it is the case of
breaking large masses into fragments, which cannot be
re-united. It is dispensed for labour. How little do
raw materials cost ! What is the value of iron in the
state of ore ? Comparatively nothing. It is the addi,
tion of labour, in its multiplied forms, that gives it all its
value. The very banks that are raised, and excavations
that are dug, are all the representatives of labour, or, if
you please, of money ; and that which was yesterday 0,
bar of gold in the chest of the bank, the property 'of one
man, to-day is melted down into sovereigns,and becomes
the property of thousands. Yesterday, it might have
been rendered available in discounting the bill of a met.
chant ; to-day it is exchanged, in an almost infinity of
ways, for the necessaries of life—and is so scattered, and
divided, as to mock the thought of being speedily col-
lected together, and returning again into the coffers of
the bank, from which it issued.

Having proved that this demand of capital for railroads,
&c., is a circumstance sufficient to explain the diminished
facility of procuring discounts upon bills, even unexcep-
tionable bills, and, consequently, the embarrassments
which merchants and manufacturers now experience in
carrying on their various concerns, we shall also see that
the same fact will explain the -unusual depression of the
funds. Capital has been wanted for certain purposes,
(railroads,) and many parties wishing to have their ca-
. .

pital to dispose of have either withdrawn it from the bank,
%Olio!' makes the abovemenlioned.caseor hay.ioifere4'
funded stock for sale to larger amounts than there were
to purchase ; and, as in every markeiable com-
modity, when the quantity exceeds the demand, the price
necessarily rails, That what we have here stated affords

a solution of the difficulties with which the money mar-
ket ig now oppressed, we feel very satisfied ; and if these

difficulties be already so great, what are we to expect,
when the whole sixty millions (if such be at all practica-

ble) shall be demanded for novel investments? It be
!loves not cu!y political economists to look well to this
question, but we would also press it upon the attention
of all our monied friends. It is ❑ot against the insecu-
rity of banks, generally, that we offer any caution, but,

first, against those which have not, and never had any

visible capital; end, secondly and principally, against

entering into monetary engagements for the fulfilment

of which they may depend upon bank accommodation.
We have spoken of railroads, as making the heaviest
demands upon the spare capital of the country, but we

would add that the formation of joint-stock banking

companies have also a tendency to augment the same
evil; fur, suppose, for the sake of argument, that one
million only is withdrawn from previously existing

banks (and we have shown that there is no other source

of capital) to be vested in joint-stock banks, although
the capital is designed for the very same purpose in its.
new location, for which it was before employed, yet there
is a division, and frittering down of profits; a spreading

of a grain of gold on a larger surface, so that the film is
less; and all this with an increased expense of manage-

[Dent, which, as far as it extends, will operate like the
railroads. tilt)

_ -
We have purposely neglected, though not forgotten,
the possible intrOduCtion of a small capital. into this
country from the•sale of property in fOreign funds--this,
so far as it extends, will mitigate the evil complained
of; but its amount is, altogether insignificant, and ;the
portion applied to home speculation unworthy notice.
On a subject of such deep and all involving import-
ance as our money market, implicated as it. is', tovith
every transActi-on., it 11 °WO bq