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patrimony in riotous living, and, dying in-act, and solely with a view to their own sesolvent, left these two female wards on the curity and their own profit. parish." We suppose there can be no harm The other fallacy is that the Bank of Engnow in saying that this man was Sergeant land that is to say the Bank of Deposit Bearcroft. The other case is hardly better. and Discount, of which the Issue DepartIt was that of a clergyman deprived of a ment is quite independent - can raise or large fortune by the villany of a trustee, who lower the rate of interest at pleasure. left him no compensation beyond the decis. This also is an error, as far at least as it ion in a civil court that the fortune undoubt-relates to the average permanent rates of inedly was his (" we tried it on appeal from terest, which are governed solely, like the Ireland in this House,' says Lord Brougham, prices of all commodities, by the laws of “ on a somewhat remarkable day, the morn- supply and demand — the proportion of ing after the Reform Bill was rejected”)- buyers to sellers, and borrowers to lenders. the fruits of the crime having already been This fallacy, however, would not have takremoved beyond the civil judge's jurisdiction. en deep possession of the public mind if it
We have seen how narrow was the race did not contain some element of truth. between criminal and civil procedure in the Mercantile men see clearly enough that, case of the banker thieves —and how easily however little the Bank of England can afthe shelter of laws for defence of commercial fect average permanent values, its operations credit is convertible into an Alsatia for pro- have an immediate and powerful effect on the tection of commercial robbers. But the pub- rates and prices which prevail at the molic is keenly alive to the whole question just ment; so much so that at times, if the fate at present, and Lord Brougham has well of the nation depended on the decisions of choeen his time to point attention to a scan- the Bank Parlor, they could not be watched dal which is but a part of the same defective for with more intense anxiety. branch of the English criminal law. The Law To account for this we should observe that Amendment Society have promptly taken it the demand for capital is of two kinds :up, and in the success of their agitation in that which is governed by consumption, and this matter, as in so many others, all honest that which arises from apprehension. men are directly interested.
If there were never any other demand for capital than that which is governed by con
sumption, or the ultimate need of capital, THE BANK OF ENGLAND. we should never see any sudden changes in
the rate of interest from one extreme rate to To the Editor of the Economist (27 Oct.):
another. A rise or fall in the rate of interSIR,- The disturbed state of the money est would always be gradual, because conmarket has revived the currency question, sumption, even in a time of war, is always a and with it two popular fallacies on the gradual process. operations of the Bank of England.
It is otherwise with a demand arising out. One of them is the notion that the Act of of apprehension; to the rapid and extreme 1844 imposed on the Committee of the Bank fluctuations of which, between a state of conParlor the duty of watching the exchanges, fidence and one of fear, especially as affectand of adopting such measures as they might ing money capital, it is hardly possible to asdeem expedient for checking a rapid drain sign a limit." of gold.
| When confidence is felt, a very small The readers of the ECONOMIST need hardly amount of notes or coin suffices for the daily to be told that this is an error; but, for the transactions of business. Money circulates information of others, the fact requires some- freely, because paid away as fast as it is retimes to be restated.
ceived. Where distrust is excited, or an exWhat is now called the Bank of Issue is pectation of coming difficulties, payments are practically a department of Government, deferred. Every one seeks to increase his issuing notes only in exchange for gold, and reserves. Even a small tradesman will keep on the security of £14,000,000 of its own by him the hundred pounds he could otheretoek ; and, how, in an extreme case, gold wise spare; and assuming that in commeris to be found for these £14,000,000 of notes, cial Europe there are a million of persons in practically inconvertible, is an affair for the a not less anxious position, this alone repreconsideration of a Cabinet Council, not for sents a demand for £100,000,000 sterling that of the Governors and Company of the more than would be required if no apprehenDapk of England. An efflux of gold, like a sion existed. rise in the price of corn, is to the Committee No wonder, then, that in such circumstanof the Bank Parlor only one of the indica- ces we should see the rate of interest suddentions that capital is becoming scarce ; upon ly doubled, and six per cent. become a miniwhich they act as other commercial bodies mum of discount where the experience of a
long series of years had shown that it could 1. Without denying or affirming the pronot be permanently maintained as high as priety of issning fourteen millions of paper four.
on other than metallic securities, is it wise But if the principle be correct that all or expedient to give the use of them to a single rapid and extreme variations are occasioned, body? not by consumption, but by apprehension, 2. Is it possible thus to foster the existence it becomes a subjeet for very grave inquiry of a gigantic and irresponsible interest withwhether the action of the Bank of England out placing, at critical periods, the whole is not directly concerned in those we are now industry and prosperity of the community at witnessing
its mercy? The Bank of England differs from other 3. Have there been no instances of the banks of deposit and discount in being allowed Bank, looking only to its dividends, acting a monopoly use of the £14,000,000 of notes against the Government, in the very crisis issued only on Government securities - an of a public loan? exclusive privilege to which there can be no In a word, would not the country be safer adequate counterpoise in private competi- than at present from mischievous vicissitudes tion. The leviathan influence thus erected, in the value of every description of property, on whichever side it may incline in the scale and periodical monetary convulsions, if free of commercial values, must always produce trade in corn were followed by free trade in violent oseillations.
banking, and Government interference with Monetary panics have lately been of fre the circulating medium were confined to the quent recurrence; but the history of all of protection of the coins which form our them (those only. excepted brought about by standard of value? - I am your obedient political revolutions) is nearly the same. servant,
W. E. HICKSON, There is first a slightly perceptible growing FAIRSEAT, WROTHAM, KENT, Oct. 18, 1855. demand for money, which excites but little attention until notice has been given that P.S. -The Bank returns published since the Bank have raised their rate of discount. the above was written confirm the fact that This, by the uneasiness it occasions, increases the drain of gold, upon which the attention the demand; upon which the Bank, when of the public has been too exclusively fixed, ill-advised, raises the rate again. The second is a mere coincidence of the existing moneadvance, following soon after the first, and tary derangement, and not its cause. rumors of a third in contemplation, operate The correct and well-understood principle as an alarm-gun at sea ; every vessel in ller of banking management is to keep in hand a Majesty's fleet reefs topsails and prepares for reserve of cash equal to one-third the amount a storm. With a third advance the next of outstanding liabilities. The Issue Deweek or fortnight, rumors of a fourth, and partment would, therefore, have been safe if, the appearance of the Bank broker as a large on the 13th of October, with a circulation seller of Government stock, panic begins. of £25,205,855, its bullion had amounted to
Very mistaken is the notion that the Bank only £8,400,000, instead of which it was of England, by discounting largely at a time £11,205,855. of pressure, although at a usurious rate, Very different, however, is the case of the affords any relief to the public. It would do other department, governed, not by any 80, of course, if its capital were in hand; fixed rules, but by the capricious policy of but when money, is cheap, that capital
the Bank Parlor. Its reserve, instead of invested in Consols and Exchequer bills, and being three millions in excess, was (and at these must be sold to procure the notes re- dividend time) nearly a million deficient, quired for additional discount acconimoda- £5,104,056, against claims to the amount of tion. Consols and Exchequer_bills are a £17,239,643. barometer for all the stocks of Europe; and The crisis has been brought about by the to force them upon the market at an un- old fault of the Banking Department, favorable moment, for the sake of discount- overtrading. It first, to procure business, ing, is to kindle a conflagration with one discounts bills to any extent applied for band, and seek to extinguish it with the below the market rate, and then, suddenly, other.
when it finds it has gone beyond its strength, The object of this letter is to invite you to makes a convulsive effort to sustain its own diecuss the remedy for such an evil.
credit. The subject is one quite distinct from that Seven per cent. discount means only that of the basis of our currency; which, with the Bank lends no more money till it has got £11,000,000 of gold in the Department of money to lend, and for which it must wait Issue, is at least in no immediate danger. the maturity of the bills it discounted at These are the questions I wish to see an- 3 1-2 and 4 per cent. As these fall due, swered:
every one may see without mystifying him
self with the exchanges, that notes and gold people of England; her oppressor stood elatwill flow in ; and, when they have done so, ed with success on the neck of the victim, the Bank will again lower its rate of dis- proud in the menacing attitude of the count, as it did in December, 1847, to get restored power of despotism, yet I found the back its trade.
curse of execration pouring down on his The popular theory, now is, that if the name from four millions of British lips. Committee of the Bank Parlor were allowed The conscience of the British people sat in to place their hands on the gold of the Issue judgment on the morality of kings. Was it Department nothing, of this kind would I who lured England into those prayers, into happen; but it is obviously just as easy to that curse? 17 The flowers of sympathy overtrade with a capital of £30,000,000 as that grew up in my path from Southampton with one of £20,000,000.
to Winchester, and along the streets of LonThe remedy must be sought, not in sur- don, across the balls of the Mansion House rendering the securities we have obtained for and up to the mighty gatherings of hunconvertibility by the Act of 1844, but in the dreds of thousands of free Britons at Birabolition or restriction of all exclusive bank- mingham and Manchester -- the flowers of ing privileges. The Banking Department sympathy that were conveyed to me by admust either be placed on the footing of a dresses and delegations from more than a private bank, or restrained from making the hundred localities where I never happened to same free use as at present of the Govern- be - were they the work of my words? I ment deposits.
have England for witness that they were not.
They were a spontaneous offering of the KOSSUTH ON HIS RECEPTION AND RESI- moral sense of the English people at the
shrine of justice and right. My task has DENCE IN ENGLAND,
been to gather the free offerings, and to The Briton with the soul of ancient times, thank for the noble gift in the name of my the words of whom I quote; he, who so well country as well as I could in the broken can imagine how the Brutuses may have accents of a language foreign to me; and fest
, and how a Demosthenes spoke, he remem- staggering as I was under the weight of honbered the 6th of October. [M. Kossuth ors paid to me, sympathy for my country, refers to Mr. Landor.) I claim from him and not my own desert, caused to reflect on the honor of being allowed to offer to him my own humble self. On my return from herewith the public homage of my heartfelt America, I secluded myself in the solitude gratitude. May the best blessings of Heaven of undying grief, and of undesponding hope, be with him! Amongst millions of free justified by the imperishable vitality of my Britons be alone remembered publicly the country, to which I trust, like as the martyrs day on which Francis Joseph of Austria - of old trusted to their God, for the ultimate then yet a boy in genrs, but more than a triumph of their faith. It was on that vitalNero in cruelty -- revelled with fiendish fero- ity, on the justice of the Eternal, and on the city in the blood of the bravest and the best inexorable logic of events, that I rested my of my country, and gloated upon the agony hopes, and not on foreign sympathy. This of a heroic nation. "It was a deed, rarely I did not court. I rather went out of the equalled in baseness, never surpassed. way of it. Nobody can charge me of obtruTwo years after the bloody day of Arad, I sively parading my grief. It was of too first landed on the shores of England, a sacred a character to be thus profaned. . bameless wanderer, powerless and poor; and For nearly two years I lived a hermit, lonely I saw my landing become the signal for a and mute in this gigantic hive of busy milaniversal outburst of sympathy with my lions – to me a desert. At last came the country's wrongs, such as no people ever war, and with the war the consummation of experienced from a foreign pation Hun- my prophetic words, that the fault of havgary, a couple of years before scarcely known ing permitted the ambition of Russia to inter
name, I found a household word at every fere with the destinies of Hungary would British hearth; she lay prostrate under the fall back on the
head of England with countimon hoof of foreign oppression, yet her less sacrifices treasures and blood. - Kosname had a share in the prayers of the suth in the Atlas.
THE LIVING AGE AND CHARLES LAMB.
shunned the demon of collectorship (I once had My Dear Mr. LITTELL :- I dare say you the Rev. Mr. Cuyler, of this city.
Galileo's signature), I bestowed this volume on
SCOTTISH FOLK LORE. — I wish to make a
upasked before me, and will be heard. That
Salt. - I offered to help an old Highland are now between fifty and a hundred, and remember several old Philadelphia items which lady at dinner one day to some salt from the
“ cellar," which stood much nearer to me than the younger fry cannot comprehend. Day before yesterday, the only French Quaker I ever knew to her; she gravely put back my hand, and
drew was buried good Stephen Grellet, of Bur
away her plate, saying at the same time, lington. He figures delightfully in J. J. Gurney's with a kind of shudder, between her teeth : Life. He used to preach in meeting, pronouncing
“Help me to saut ! the English words exactly as if they had been
Help me to sorrow !" French. I was the other day looking over the Sneezing. - It is a thing known, and fixed volumes of the Museum, which I took at its as the eternal fates in the minds of all douce beginning in 1822. There it was I first laid nurses, and especially all “howdies” whatsoeyes on Elia; and I shall never cease to admire ever, that a new-born child is in the fairy and cherish myself for having tasted the savor spells until it sneezes; then all danger is past. of them, and devoured them over and over, I once overheard an old and most reverendlong before I ever heard the name of Charles looking dame, of great experience in howdieLanıb. Apropos de quoi — when I was in Lon-craft, crooning over a new-born child; and then don, I went to Leadenhall street, to the India watching it intently, and in silence, for nearly House, in order to seek out some memorials of a minute, she said, taking huge pinch of Lamb. A doorkeeper, in a cocked hat, said: snuff, “Och ! oich ! No yet — no yet.” Sud“ I have been here since I was sixteen years old, denly the youngster exploded in a startling but I never heard of any Mr. Lamb.” Such is manner into a tremendous sneeze; when the old fame! A prophet is not without honor, &c. lady suddenly bent down, and, as far as I could But the doorkeeper of the Museum remembered sce, drew her forefinger across the brows of the him well — “O'yes, he was a very little man, child, very much as if making the sign of the with such small legs, and wore knee-breeches."' cross (although, as a strict Calvinist, she would He directed me to some private stairs, which have been scandalized at the idea), and joyfully would take me down to the “ Accounts." This exclaimed, “God sain the bairn, it's no a warwas a place like a bank, where I was shown to a lock!” Even people of education I have heard principal person, a Mr. Waghorn or Wagstaff
. say, and maintain stoutly, that no idiot ever This was the room in which Lamb sat to write sneezed or could sneeze ! - Notes and Queries. for many years; but it had been altered. I saw his window, however, and the dead wall beyond, mentioned in the "Old India House." Mr. W. VERSES TO HOGARTH'S PICTURES. — Did Horegretted that the folio ledgers, &c., had been garth employ a penny-a-liner of the day to write removed. He showed me a quarto volume of the verses which, à la Callot, were suffixed to Interest Tables, with such remarks as these on his plates ? or were the illustrative verses the the fly-leaf, in Lamb's round, clerkly hand, but additions of a subsequent publisher ? Who not with the “ three inks":
wrote the verses to “The Harlot's Progress ?” “A book of much interest." - Edinburgh
C. MANSFIELD INGLEBY.Review.
BIRMINGHAM. “A work in which the interest never flags." [In Hogarth's Works, by Nichols and Steer. Quarterly Review.
ens, vol. 11., p. 104, it is stated that “the verses “We may say of this volume, that the interest to · The Harlot’s Progress' made their first apincreases from the beginning to the end.”.
pearance under the earliest and best of the Monthly Review.
pirated copies published by Bowles. Hogarth, A few years ago I came into possession of the finding that such a metrical description had its identical copy of “Vinny Bourne's” Latin poems, effect, resolved that his next series of prints alluded to by Lamb. It contains an autograph should receive the same advantage from an by him of the only Latin epigram he ever abler hand.''] - Notes and Queries.
LITTELL'S LIVING AGE.-No. 608.-19 JANUARY, 1856.
From Fraser's Magazine. plaining of lawyers oppressing you ; whereas FRIENDS IN COUNCIL ABROAD.
it is dull and respectable men who are the SCENE. The Garden of Dessin's Hotel at unconscious bullies of the world.
Calais. Enter ELLESMERE, DUNSFORD, Mil Milverton. It is as some safeguard against VERTON, Mr MIDHURST (a fat, melancholy. this most oppressive and pervading tyranny of looking-gentleman, with a sickly, pleasant the unwritten law that I have ever thought smile), a bull-dog, a boy, and two young eccentric persons a great blessing to mankind. ladies.
But for them, we should all be crushed down Mr. Midhurst. As if life were not mis- into a semi-fluid state of utter respectability, erable enough – what with sinoking chim- entire conformity, and superabundant folly. Deys, screaming children, wrangling and They are the centrifugal forces in life — they jangling marriages, tiresome friendships, op- are the salt of the earth. Better to have pressive relationships, — nothing being what them, even when they border upon madness, it seems to be, nothing made to suit, but than not to have them at all. everything to sell — bad workmanship through Observe in such a trifling thing as dress out, from a house in Belgravia to a penny how hard it is to gain the least improvement. roll, - the Court of Chancery here, and a The Broad-grin Interest - aided by little boys, prospect, alas ! for many of us of a worse - The Respectable Interest, the Sublimo place hereafter ;- as if, I say, life were not Canting Interest, is always against the immiserable enough without this nuisance and prover. Columbus has to be giggled at by burden of passports. I have waited for a idane cosmographers, and to endure that for long time, watching dynasty rise upon dynasty, years.
Shall not the man who proposes a hailing revolution after revolution, only in rational hat have his troubles also to endure, the hopes of getting rid of this transcendent or the woman who endeavors, in a sloppy absurdity. And here it is as strong as ever. country, to abridge a stupid petticoat, have The government that does do away with it her sorrows ? will bave one sincere supporter
Ellesmere. Especially to be pelted by Ellesmere. More than many governments small Conservatives. can boast of, my dear sir ; but pray don't Milverton. The love of foolish comment let me interrupt you.
on one side, and the fear of it on the other, Midhurst. One sincere supporter for life stifle many of the wisest improvements. A in me, sir.
great humorist, a friend of mine, who lives Milverton. These minor nuisances, Mr. in all kinds of society, from the highest to Midhurst, at least have the advantage of the lowest, came home from abroad with a making you forget some of the major ones in resplendent beard. Being a courageous man your catalogue, which you have left at home. he resolved to face the world with it; but his
Midhurst. I don't know that, sir : the main reason for maintaining this interesting capacity for human suffering is very elastic. appendage was, as he said, to ascertain how
Milverton. Surely your eaperience of the many of his acquaintance were gentlemen ; world, Mr. Midhurst, must have shown you that is, how many of them would make no that the moment people have met together in remark about his change of appearance. He any number - say even twenty - they begin says he expected to find nine ; but all human to think how they shall annoy each other by expectations go far beyond the mark. He all manner of triðing rules and regulations. only found six, the Duke of S Mr.
Ellesmere. Ay, and what is worse, there Be the great banker and capitalist, a is the unwritten law, by which human beings, driver of an omnibus, an accomplished writer especially in a country with free institutions, of comedies, a confirmed lunatic — who, howcontrive to vex one another more even than ever, had once been a remarkable gentleman, by all the statutes, laws, and ordinances that -- and myself. I was very proud, as you ever were penned. You are always com- may imagine, at finding myself in such good DCVIII.