The Sun. — 1844-07-08 (London, England)

THE, EDITOR OF THE SUN. "Sir Robi.rt -Peel admits that the Bank of England may issue notes to the amount of thirty millions—six-; ten millions on bullion fourteen Millions on Government debts, &c. ,The deposits exceed, hirteen 'millions. I repeat a question I have put in a former letter. If a panic should arise, and the depositors Withdraw thirteen millions of gold, how are the thirty millions of notes to be cashed ?' —Letter signed " Common Sense," in The Sun of June 27, 1844.  Siu,—What a very curious fbncy.'of your corns. pondetat, "Common Sense," to imagine a panic with 29,000,000/. of bullion in the toffer of the Bank of England. If the proposed Bank Charter Bill should-be carried 'into effect, that law must 'be iiifYinged, if there be not 16,000;0001: of bullion in the issue department at all times: when there is a circulation of 30,000,0001. of notes ; so that, supposing ,the depositors to have had-thirteen millions, of bullion paid to them from the banking department, there must still -rOrnairy 16,000,0001. of bullion in the coffers of the issue department, if 30,000,0001. of notes be then left in ~circulation, showing that, if the position of " Common Sense" should hereafter occur, the Bank Must,—,previous to the payment of thirteen millions of bullion to the depositors, and yet having 30,000,000/. of ..notes. 'in . circulation— be in possession 0f,'29,000,060/., of 'bullion immediately previous to the payment, of the depositors, 9,000,0001..,, in, ; the banking :. department, and 16,000,000/. in the issue department, as the •Bank, by law; 'would be Pound__ to have bullion in its cotters for every note issued above 14,000,0001.; so, there being an-issue of 30,000,0001, there ought, and, of course, would be, 16,000,0001. of bUllion, being the amount of issue over and above 14,000,000/. Your correspondent says that Sir Robert Peel admits that the Bank of t ngland may issue 30,00000/. of notes—to be sure the Bank may, who can doubt it ?'==there is no limit to the amount of issue of the Bank of England; the only limit is, that the Bank must- at'all times httire a value in bullion in the coffers of the issue department, equal to Abe- whole issue &ger 14,000,000/. ; so the Bank of England -might have' an issue of 100,000,0001. of notes, provided it held bullion to the value d 86,000,000/. Now, we find that although' the depositors shall have paid thirteen millions from the banking department, there will be sixteen Millions of_ bullion to meet the thirty millions of notes---a very handsome balance-sbeet for a banker to'show his customers. Yet " Comnion Sense " asks, " how are 'the thirty millions of notes to be cashed r  Let " Common Sense" put himself in the position of a merchant who is indebted to- his- creditors' 30,0001.; he has 14,0001. at his banker's, and in his Warehouses goods valued at 1600/. • He 'calls bis creditors together, shows thern the state of his affairs, and .deploringly asks " HOW am '1 to pay you 30,0001.?" The replYWouldbe,:" Sell your goods, and turn theM into cash.' So will the Bank of England be enabled to sell. its ".securities,' and obtain cash to meet the 14,000,000/. '.of .notes, should such a necessity arise ; this is hOW the thirty Millions of notes can be cashed. " Coininon '<Sense " ought to know that a banker who Was. securities equal to all demands upon him,' although: he:Ns not -at any one instant gold to pay every. debtor, is no more insolvent than a merchant who has not ca4l:4) pay every debt, yet. has merchandise in his :possession which will realise more Money than will 'satisfy every demand upon him. '!-Common Sense" does 'not know the working of the. New Bank Charter Bill ;.• he fancies if the depositors were to'make a detnand of 13 millions on' the. banking department, and the gold was not there, that it could be obtained from the issue department without 13 millions of notes being presented. The clerk from the banking deparfnient would not get five sovereigns from the issue .department, if he did not present a 51. note -for 'them, the' same as one of the public. Whatever amount of billion may be drawn by.the depositors from the''bankrng department, will have no effect whatever on The amount of bullion held by the issue- departmentywithout the :banking department presenting mites to the issue department for,,,the value of every Sovereign that may be required. • I am, Sir,-Yours, &c. • . Ilfracombe, June 29th, 1844.  R. W. D.  DETERMINED SUICIDE .DT SIfFFOCATION.---OD Friday Mr, Wakley, f M.P., held an inqueit at the George and Dragon, Buckingham-pkice, Fitzroy-square, do the body of Mr. King, aged, 24, pianoforte-maker., ,Mr. Thomas Dedwick, deceased's brother-in-law, Aepe_sed that he was a pianofortemaker, and that the deCeased lived and worked with him. During the last 'twelve months,' deceased •sliffered greatly from ill health and• depression of spirits. About two months ago -deceased- -was greatly_ affected • ,at seeing a female, to whom he was attached, walking with another man, and from that periodhe was in a very melancholy state of mind. Last Tuesday 'he Was very silent, and supped with witness at ten o'clock at' night, scarcely speaking a word. They retired at twelve o'clock. On the following morning, witness finding the door of the water-closet fastened, bad it forcod open, when he found deceased crouched up 'iii the water-closet quite dead, with, a panier of charcoal burning on the floor. So, resolved Was he upon self-destruetion; that he pasted paper over every cranny and crevice 'of the closet, to prevent -the escape of the' poisonous gas of the charcoal. His left arm and' side were burned by the flames of the charcoal fire. Mr. Proctor corroborated this witness's evidence. From other statements it appeared that the deceased had cut the paper in strips with which he covered the crannies, and made the paste for fixing them on in the workshop. While so engaged, be joined in several songs,. with the workmen, one of whom having said that he would go' to Gravesend, on Sunday next, he said, " I, too, will be at Gravesend on that day." Verdict, ",Deceased destroyed himsee, but there is no evidence whether he was insane or not at the time."