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Leader (1850-1860), 3rd April 1858, Edition 1 of 2, Page 326, Untitled Article

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      Untitled Article

      the island is essential to command the deep water channel of the Red Sea , to complete the chain of naval ports between this country and India , to secure the safety of Aden , and to anticipate the possibility of M . de Lessep ' s mighty ditch being excavated in future years between the east and west . Perim is held by the British Government under a ti tle not hitherto questioned by the Ottoman Porte , and it is so valuable that French politi cians are doing their utmost to make it the basis of a European question . It converts the great inlet from the ocean , they argue , into a sort of Dardanelles . Liable to t > e closed at

      the good pleasure of England , and we » are not inclined to deny that the island of Perim is a vital point in our line of communication with India and the China ports . The opposition comes from Paris , not from Constantinople , although French semiofficial journalists endeavour to excite Turkish alarms and Russian jealousies by pleading the integrity of the Ottoman Empire . Public opinion , we are convinced , will support any minister who holds firmly to this important station , notwithstanding the demand of the Patrie that the occupation of Perim should be treated as among the most serious of existing po li tical questions .

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      QUARTERLIES ON THE CURKJENCY . The readers of Quarterly literature have enjoyed an ample opportunity of looking on both sides of the Currency question . Four or the Reviews have had papers on the subject , all deserving of careful perusal , and all affording matter for mature reflection . The Edinburgh * is bullionist to the backbone . It defends the Act of 1844 in every particular , and advocates i ts being pushed to i ts legitimate developments . Its text is Lord Overstone , and to that text it most scrupulously adheres . There is very little that is new in the paper ; most of the subjects that are passed under review have already been discussed in our own columns . The most difficult part of the question it leaves scarcely touched—we mean the relaxing power in cases of difficulty , such as 1847 and 1857 . In both instances the interference of the Executive was absolutely necessary , and was subsequently deliberately approved and confirmed by the Legislature . The Lords' Committee reported in favour of a discretionary relaxing power , to be used only during the existence of a favourable exchange ; the Commons were entirely opposed to this opinion . The reviewer would have

      gratified its readers immensely had he thrown any Eght on this part of the subject , but , like commentators in general , he leaves in darkness the points that especially require light . From the connexion that subsisted between the late Chancellor of the Exchequer and this Review , it might have been supposed that some glimmering of his views and notions would appear in its pages . But he must be a sagacious reader indeed who is able to penetrate the deep darkness that veils all reference to the future . The writer is in favour of some further legislation in the matter of joint-stock banking— 'but beyond

      the suggestion that these establishments should publish a weekly statcmont of deposits , securities , and reserves , he gives no hint of what we might have expected from Lord Palmerston ' s government . He attributes a large share in the lato disaster to over-banking , and would have Parliament take stqps ( but he does not suggest any ) to correct it ; yet , in extolling the Act ot * 1844 , a few pages on , lie claims as a merit that it has secured the unquestioned stability of the whole of the metropolitan banks . Following the lead of Sir Cornewall Lewis , he points out the dangers of the deposit system , how it leads to insufficient reserves , and to investments by the banks in inferior securities . He advooates legislative interference on this point ; but how Government can prevent a bank borrowing money of

      the public on such terms as -the publio ore willing to lend , it is diffioult to understand . It would be far more prudent to leave this matter to bo acted upon by public opinon ; to expose tho dangers of tra ^ tenTT ^ irJuarm trust to the mutual aotion and reaotion of bankors and their clients . In point of stylo , tho Edinburgh is dry , hard , and often inelegant . What is still worse , m the discussion of an abstract and diffioult question like the Currency , it is frequently obsouro . All tins is the very reverse of the compositions oi tho great leader of this aohool , Lord Ovcrstonc , who

      never fails to make himself clearly understood . On the important question of limited liability to banking companies we are not favoured with any information or opinion . The style of the writer in . the Westminster is elegant and polished , and his arguments , even when far-fetched , are clear and intelligible . His opposition to our Banking Act is , if possible , more intense than the admiration of the Edinburgh Reviewer ; and he has taken infinite pains to demolish what he calls ' the currenoy principle . ' He maintains that Government has nothing to do with

      money and banking beyond administering justice , and he particularly refers to the punishment of those who fail to complete their contracts —whether in the form of bills of exchange , cheques , bank-notes , or otherwise . Of course the Government that is to administer justice in barking matters must do so according to law , and , farther , the Legislature must frame laws for this object ; it must of necessity create certain regulations by which banking institutions must be governed , and then the State must enforce such laws as the wisdom of Parliament may devise . And this is precisel y what has been done . It is the prerogative of the State to issue money , whether i t be in coin

      or paper ; and , abstractedly , Sir Robert . Feel was in favour of . the Government making this a department of its own ; but he found the difficulties too great—he therefore adopted ( we think most wisely ) the machinery already in existence , and intended so to frame his Act as to make the Bank of England ultimately the sole bank of issue . To carry out this idea he took means to ensure the convertibility of the bank-note ; he adopted the only method that has yet been discovered for the attainment of that object ; and made the issues to vary precisely as the precious metals vary . And in this lie has perfectly succeeded ; notwithstanding the Irish

      famine , the Russian , Persian , Chinese , and Indian wars—notwithstanding the suspension of cash payments in the XJnited States , and the consequent failures of remittances from that quarter—the convertibility of the hank-note was so amply secured , that no one , in the very darkest days of fear and distrust , doubted it even for one moment . In exchange for this practical and intelligible rule , the Westminster tells us that if the State did not interfere , ' the proportion of coin to paper would depend upon the average conscientiousness of the people . ' The writer is so evidently in

      earnest that it cannot for an instant be supposed that he is joking ; but his readers must smile when they think of the floods of paper with which the conscientiousness * of Sir John Paul , Sadleir , and Dr . Stephens would have watered the fields of commerce . If this ' average conscientiousness ' drives away all our precious metals ( the only worldwide currency ) , it is not only not an evil , 'it is a good ; ' and more than this , so consistent is the writer in his opposition to established principles , that he asserts this expansion of paper should go on in times of impoverishment or commercial difficulty ; that , in fact , ' i t is highly salutary . ' Having issued more promises than they can fulfil , the dobtors are to of-o on nromisincr until , in the eleerant and precise

      language of Mr . Hicawber , ' something turns up . ' True it is that these self regulating processes will act imperfectl y ; the writer tells us stupid people will suffer ; but Government , we are told , is going beyond its province if it makes regulations for the protection ot the ignorant and confiding . However , those who are not stupid are to nave the privilege of inspecting the books of a banking company before they deposit thoir money . W " e repeat , we believe tho writer to be serious ; but can we for one moment imagine a man with 1 O 0 OJ . to spare , examining tho accounts . of tho London and Westminster Bank , with its six ; branchos , -with its millions of deposits , and its diverse investments , before ho decides to place his money thcro P Do wo not all know that it would tako a practised accountant weeks and weeks to urrive at a definite

      conclusion upon an affair of such magnitude and importance ? The truth is , that tho Westminster Reviewer is a moat able writer , woll read in tho literature of the ouWircyrb ^^^^ of this remark is soarcoly required after what wo have already quoted ; but there is another imaginary statement too good to bo omitted : — A trader applying to his banker in times of great commercial difficulty , will often bo mot by this reply : — 111 cannot make you any dircot advances , having already loaned as muoh nu I can spare ; but knowing you to bo a safe man , I will lend you my name . Thorti is my acceptance for tho sum you roqulro ; they will dlsgount it for you in London . "

      It ^ not necessary to assure our readers that such bills would find no favour in Lombard-street and that the very fact of their existence beimJ known would be sufficient to cause a run on the bankers that issued them . The long-dated accept ances of Strahan , Paul , and Co . were refused dis ' count some time before that house stopped pav * ment ; the experienced money-dealer shook ha head when he saw them ; he needed no other warning that the end of that house was approaching Wnen hankers take to ' lending their name , ' the depositor ceases to lend them his money . We must not omit to add that the same number * contains an excellent , article on ' the Crisis and i ts Causes , ' in which , strangely enough , the miserable effects of banking uncontrolled by law , as exhibited in the United States , are ably exposed . The leading American statesmen desire some far more stringent guarantee for bank issues than the ' average conscientiousness ' of a few sharp down-easters of questionable morality , who , we are told , presidents , directors , tellers , and cashiers of the monetary establishments in the one only country where there are no State tamperings with money and banks . '

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      The Recent Architectural Competitions . —A deputation from the Royal Institution of British Architects waited on Monday upon . Lord John Manners and General Peel , at the office of the Board of Works , Whitehall-place , in order to urge upon them a memorial which had been adopted with reference to the late competitions

      for model barracks and public offices . The chief complaint is that the Treasury has thrown over the principle of competition , and has determined to revert to the old plan of entrusting the work to an official architect . Lord John Manners said the Government had little power to undertake great works of art ; and General Peel said that , with respect to the trifling sum which was about to be spent at Nottingham , he saw no reason why the prizemen , if they could adapt their plans to the circumstances of the case , should not superintend ita outlaj' , if they thought fit to undertake so small an affair . —This proposal was apparently considered to be satisfactory .

      The Prospects of Reform . —The report of the dedeputation recently appointed by the Reformers' Union of Birmingham to confer with the leading Reformers of the House of Commons has been published . It is here stated : —" In conformity with your resolution of the 6 th of March , which appointed a deputation to proceed to London for the purpose of promoting the introduction of a Reform Bill into the House of Commons during the present session , and also to confer with our own and other liberal members on the practicability of a demonstration in Birmingham , we have to report that the result of our communications with Messrs . Scnoicuelu , Bright , Beale , F . Crossley , Caird , and others , forbids ua having any hope of the introduction of a general measure of Reform this year . " This opinion is based Liberal party

      on three facts—the disjointed state of tlie in the House ; the want of a leader among the advancea section of members ; and the circumstance that a l « - form Bill must be the work of tho Government ot um day , -which is not to bo expected of the Derby Caomet this soasion , if at all . Mr . Bright is alluded to as u » coming man * among the Liberals ; and it » s . . }~ " Your deputation have found that there exists in toe House of Commons generally , and more especially among the more advanced Liberals , tho strongest desire to prevent tho return of Palmorston to power . "—The Mayor of Salford convened a large meeting on . / " ^ which took place on Wednesday evening w the iow » Hall under his presidency . Resolutions in favour m Reform wore unanimously passed , and a petition to rue

      liamont was adopted . t Fmucs . —Tho South-Western Railway P » flson f - " * tion at Salisbury w « 8 totally destroyed by flw lose Saturday ; and the goods-station nearly snared w same fate . No great amount of property was W ^ - ^ T largo warehouse belonging to tho East Lancashire i . W way Company at Brooksbottom , about three miles . irw Bury , was burnt down on the aamo day . —A wrwua uw -burst out on Sunday morning in King-street , D ° Ptl or " : but up lives wore lost—The frightful ***« " %£ Bloomsbury is related in another column . —A yory tonslvq and alarming flro took place at Mane ester oa Monday morning , when a largo cotton-sp inning n doubling-mill in Minshull-strcot was «>» 8 umod . A * 6 portion of tho front wall fell outwards , ™ / ° " ° "( X on a gasometer . An explosion enwiou , and it w « w li « nra l , nrnrn flm pnnfl . lrrp / lt . loll COldd b () MllUOOCl .

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      326 THE LEADER . [ No . 419 , April 3 , 1858 .

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      A QUOTATION . { Dedicated to Mr . Bodkin . ' ) And blessed be the band that dares to wield The regicidal steel that shall redeem A nation ' s suffering with a tyrant ' s blood . Benjamin Disraeli the Yottngek .

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      ______ , — ' * January , 1858 .

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      ? January , 1858 .

  • Citation
    • Leader (1850-1860), April 3, 1858, page 326, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2237/page/14/