The Liverpool Standard, and General Advertiser.
Liverpool, Merseyside, England, 1854-10-17 00:00:00

fled in looking hopefully to the future. .
The question of currency is not withou.t:tdis.rilllect
portance, particularly with reference to tit
bearing on mercantile affairs, but unfortunatel
is so often mixed up with crude theories Otto
weaken its influence on the public mind' coo
attempt is now being made to create an En land
r Eno.lou
against the renewal of the Bank at 7, to
Charter, and as appeals for support are roue tied,
Liverpool, as a community most largely
it would be but prudent to come to a correct
derstanding on the point at issue. If it be reafc
desirable, after so long an experience of a taetawto
currency, to revert to a paper system, it
ma
be doubted whether the right of issue slioulutbe
transferred from the Bank of England to
Government, in whose hands the creation of paper
interest;
money might be made an engine for political PO
poses. It is not, however, the measure of 1;
which has operated injuriously, but that of 181
and if this point be conceded, of which there sr:
grave doubts, the only resource is to revert near:
more to one pound notes, to unrestricted issu
and, consequently, to the substitution of pad
For s'Lbe,
money for the present gold currency.
an object the repeal of the act of 1844 1"/°u,d
useless ; for, with one exception, which was au°s'rer
far more weight than it deserved, it has: ne to
been in practical operation, and it is abs-nrd of
contend that a nominal restraint on the 155115
notes is really a restriction, when the requireraerj tg
of trade, as evidenced by the weekly rettOhed
notes in reserve, are far within the Pres6j,its
margin. We must, however, look to other res,es
flowing from our currency system, which are "
deserving attention. The compulsory payment to
gold by the Bank of England has a tendadvty
stimulate import trade, owing to the theiLa
afforded to foreigners to be paid in gold a a Jjs'
price ; so that, unless our export trade has an ee
stimulus, the adverse balance of trade
io
creates
constant drain for the precious metals, which, °la
it not been for the Australian supplies, dot
have produced very serious money disasters. P
if, on the other hand, our own circulation were n•
paper, and no corresponding stock of bullion sect
dered compulsory, a large surplus would be
free, so as to render its possession of less lover pr,
in commercial transactions. It will be seen howev"
that the question is beset with considerable
culties ; but these will be rendered still greater
a removal of the privileges of the Bank of Vuts'.-
into the hands of the Government.
There is one point in connexion with ba r
w-
:A
in Liverpool which is entitled to serious coas'-itieres
tion, because it operates to increase the diffic?doll
experienced. None of the bankers in Ifrrest
charge a commission on the payment of the" on
and the Joint Stock Banks, who allow interot on
deposits, confine that allowance to a low r3teiori.
the minimum balance during a particular Per-ety
Were this the custom in Liverpool, none but cater
small transactions would be paid in cash ; a ge-t5,
number of persons would keep banking arel°—
and the majority of payments being rauume be
cheque, a far less amount of specie NvOtp"tbi4
required in business transactions. But if t°
were added the establishment of a clearing-h°11506
a measure which would be amply justified by
thg
number of banks in Liverpool—about nille'tello,
of the money now employed would be at the e° 0,
mand of the bankers for the purposes of acceolor
dation, their business would be extended, and 9 be
greater amount of monetary transactions VtirolllCl.l4
conducted with a less quantity of the circulateo
medium. Such an alteration would practiee4
remove many of the evils attributed to a restric,'
currency ; while, so far from the bankers rear011 ;
less profits from not charging commis/00/i the
ments, they would increase their gains from
additional business in discounts.