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revival; if the shareholders are to escape a loss of for these misfortunes altogether; or, if not alto. capital, which in the two Scotch banks is very gether, in part, and how far that part responsitilarge-two and a half millions, equal nearly to the lity extends ? We have no hesitation in denying paid up capital of all the London joint stock that the entire blame of these misfortunes can be banks. These catastrophes have been attended ascribed truly to any currency system. In some by a severe criticism on the Western and City instances the parties had manufactured and sold Banks at Glasgow. They, and all the other joint goods at a loss for a long time. That practice stock banking companies, have been charged with admits of only one end, and it came to pass. In the concession of extraordinary facilities to adven- others, overpowering losses had been sustained in turers, and very remarkable proofs of the charge the United States, and no imaginable currency law have been tendered. These cases are very

can prevent the natural consequence in these instrange; yet they are not so bad as some that stances. A third class, and the more important have become public property in connexion with of the three, are clearly traceable to the currency private banking, from which we iafer that the law, because the parties had property sufficient, other is the better of the two, and certainly is and more than suflicient, to discharge their liabili. not the worse system. Glasgow, during the panic, ties, but could not render it available for that has lost among its traders quite one million by purpose. bad debts; but the City of Glasgow Bank appears No subject has been discussed more assiduously to have had little or no connexion with that body, or more keenly during the month than the currency, and succumbed for a time before a run for gold, but because it has been so frequently talked and which was the fruit of a panic. One of these written over, we do not observe that any discovery Glasgow banks has assets equal to one and one- has been made. The Act, it is said, should not be fourth million, and the other to one and three- altered, because the Parliament are not entitled to fourth millions over its liabilitics ; but they could interfere for the purpose of making money cheap. not be turned into money with suficient rapidity. Did the Parliament of 1844 have any right to Their suspension, temporary, as we hope it is, interfere by making money dearer ? Either Parillustrates the statement that no security for cir- liament correctly interfered in that and previous culation can maintain a bank of deposit against a years, or injudiciously intermeddled. It did interfere, run by its customers, either from necessity, or and it did medule. That at least is certain. If from timidity. A number of heary failures had it had no right to do anything then, as it did occurred in Glasgow. They had injured the something without a right, it has now the right to confidence felt in one of the banks, but all arrange come and rightly undo what was then unrighte. ments necessary for the management of its buge ously done. If it was entitled to accomplish what business had been concluded, when the stoppage was effected in 1844, it is entitled to do what may of a very large mercantile house in that city, with а

seem to be right in 1857. The argument on tbilt responsibilities ascertained since to exceed to point, at least, is worthless. millions, rendered further efforts for a time useless. Next, the condition of the United States is It has been ascertained since that this house pur. quoted in evidence that an unlimited issue of poses to pay all liabilities with interest ; but the paper money would not save us from trouble. shock to credit cannot be easily repaired. If we Nobody dreams such dreams, surely. Toil a::d include this large sum, the mercantile failures of trouble are heritages entailed irrevocably ou the month, inclusive of the banking, come up to humanity, and we must bear our share of them. twenty millions, one lialf of which will be lost. But the United States do not always circulate These facts describe a greater pressure than has paper money. They circulate paper promises, ever been known in the country for a single month. which are much easier made than paper money.

The calamitics in Glasgow have excited con- | Money must either be in itself value, or it must siderable feeling against the Government, because represent value. A paper currency is of no init is said that no assistance could be obtained on trinsic, and often of no representative, ralue. valid security during the pressure there, although, As we do not advocate the repetition of the latter when a similar pressure only began to be expe. error, the difficulties of the Union furnish no ricnced in London, the Bank Charter Act was illustration against or for our views. immediately suspended. That step was, in the .

A relaxation of the present currency law is present year, as well as in 1847, deferred until sure, it is said, to 'inundate this country with it was too late to save many houses from ruin ; cheap money. A great calamity, assuredly, preand the partners of these firms, with their con- vented, however, by a law, from which we gatber nexions, say that they are treated injurionsly, that, if legislators may not interfere to make because relief is given at a date suitable for other money cheap; they may, by simply maintaining a people's purposes, although it was refused on the law, interfere to keep it dear, and not dear only, day required by them. The argument would not but scarce also. The terms currency and money justify the Goverument in doing evil for ever, are not always considered interchangeable; but we because they had done so for a time.

have used both, in this instance, to express the We notice these cases, because they raise the same thing inquiries whether the currency law be responsible A cheap currency can never be more injurious

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to a country than cheap corn, cotton, or any other the Bank, but to the stamp of the Government. article in general consumption-cheap and useless It would be above and clear of any panic, except would be dear; but cheap and good is the nation's one that might sbake the State, compress consols want. By the present law a part of our currency into waste paper, overthrow all our institutions, is based upon national securities ; a part upor submerge the Crown, and threaten destruction to gold, and a portion upon general repute. Private every interest. In that case, the public would be and joint stock bankers were allowed by the Act of ruined at any rate, and any little addition that 1844, to continue their average circulation to that might accrue from the state of the currency could date, with no other security for its validity than be of small consequence. their general repute for wealth. The Bank of The friends of the recent law insist that we must England issued notes to the value of fourteen keep a stock of gold to regulate our foreign exmillions on national securities ; and tbat appeared changes. Under all circumstances, gold will cou• to be the smallest sum which had been at any tinue to form a considerable part of our currency. time previously in the bands of the public. The Many persons like its glitter and its ring. It remainder of the circulation is based on gold, and conveys to them an idea of respectability, and it is no notes beyond the amount of bullion in the a harmless idea, which they may be allowed to hands of bankers, can be circulated legally. That indulge ; but if gold be wanted to adjust foreign is the present state of the law, and it leaves our exchanges, let those who put them out of order currency liable to the action of every foreign pay for the cost. Persons who are not engaged in state; for it is based upon one description of foreign trade do not pay the freight of foreign property, limited in quantity and required in all goods, or the postage on foreign letters, and they parts of the world.

should not be charged with the expense of remitLet us only have a cheap currency, based upon tances to foreign creditors. our own property, perfectly secured by the property Many means of adjusting the gold difficulties of the country, payable in silver or gold, and it exist. One of the most obvious is the employment will be convertible, because nobody will ever seek of gold now in circulation for that purpose. A disits conversion; while, at present, the currency is placement of that gold would occur by an expaninconvertible, when people sometimes want their sion of the paper circulation; and as we are told money. We have lamentable evidence of this that usually the balance of trade is in our favour; theory in Glasgow at this day. No notes are usually, therefore, the world at large cannot be more certain of being paid in full than those of our creditors, but must be our debtors; and that the City of Glasgow Bank, and the Western Bank would be always true, except for the habit of of Scotland, and yet a run closed their doors for a investing largely in foreign states, which has time. A similar run was made upon the National cost something like fifty millions to the country, Security Savings' Bank, because it was believed in the United Sates at present, a habit for which that part of its funds were in one of the suspended this nation is not bound to afford facilities. The banks. The directors published a note of the French Government have found the means of pay. disposal of their capital. They stated that ing for gold, when they wanted additions to their excepting one per cent. of the gross amount, stock; and we should not be unwilling to follow a nearly a million, it was already vested in national good example. securities. The run ceased. If the public bad The Government will not, however, we hear, known that for every note circulated the Govern- enter upon these questions. They want simplicity, ment had a correspondiug sum of national securi- and it may be found by them without, in reality, ties mortgaged for its redemption, very little gold repudiating the principles of 1814. At that time would have been required in exchange for notes.

a circulation of fourteen millions was conceded to A run never would have taken place. We do not the Bank of England upon the guarantee of national propose, therefore, a currency based upon nothing, securities, because that seemed to be the minior only upon credit. We have 10 objections to num quantity of notes that the public had mainurge against the demand, is it should be made, tained in circulation for a very considerable period. for a deposit of government securities opposite Therefore, it was supposed that they would never the entire circulation of the country; but with require a smaller quantity. It would be equitathat exception, we should have perfectly free trade ble, on the principles of 1814, to add to this sum in currency.

upon the same security, in proportion to the inThe objection that the country would be flooded crease of population and trade since that year. with paper, and expand into a bubble; to collapse The intention of perpetually standing by fourteen into ruin, under the powerful influence of cheap millions, even if business and population were money, is untenable, for we cannot see that a trebled, could never have been entertained by the banker would be less careful in giving bis cus- most devoted friend of this act and of its policy. tomers notes, founded upon property, than he is The Ministry can hardly propose the restitution now in giving them, when, to the extent of three of the Act in its integrity. They will move the fourths; they are founded upon reputation. This present minimum a little higher than fourteen milcirculation would not be local, but it would be lions. Some persons say that twenty millions is national. People would look not to the name of to be the fixed issue of the Bank. As matters

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756

THE LONDON AND GLASGOW JOINT STOCK BANKS.

stand, the Act might as profitably be repealed as the Bank of England had been subjected to a left to starve upon the margin. Therefore, if all proportionate pressure it must have collapsed long parties be satisfied with twenty millions, let that before the Cityi Bank. The sum named is fifty be tried. Bad in principle, it may work well, like per cent. over the circulation of the City Bank. other loose evils in practice. The extra six mil. Could the Bank of England have paid fifty per lions, according to the friends of the Act, are only cent. over its circulation-or even fifty per cent. to be doled out in return for an advance of of its circulation, or fifty per cent. of its notes interest. Two millions for each one per cent. | issued above its fixed circulation ? Published extra over five per cent. will give together a cir- figures answer all these questions in the negative. culation of twenty millions, and a discount of Not only, however, were these banks unable to eight per cent. As these parties do not so obtain assistance; but their management was much care for bullion as for a high rate assailed in terms the most vituperative. One of of interest, this scheme would suit them— them apparently made injudicious advances and not better, but not worse than the present. A discounts to local parties, in extraordinary sums, reasonable outrider to this condition would place and entirely out of the range of healthy trade It matters quite square; for it it were enacted, that is hard that this money should be lost to the sharethe Bank, whenever it was obliged to resort to holders, although their high profits for many years two millions of circulation extra, and be consoled afford some consolation ; but we do not know that with one per cent. of increased discount, should even this circumstance warrants leading journals be obliged to offer five per cent. for two million's in applying the term “ upstarts” to the management deposited in gold, to remain in gold, for three of these banks. The writer of these articles is months certain by a beautiful system of balancing, said to have much influence in monetary and and our constitution favours balances, the whole political circles, and to be one of a family acfabric would be kept steady. Abundance of gold quainted with upstarts, although we dislike to use would be obtained by this simple arrangement; the term. He has made several obvious blunders in and being once got, it would not be sent out of the confusiog family names; and supposing that there country for three months. The cost to the Bauk can be in Scotland only one family of one namecould only be £25,000 on the lot, something a sin that can hardly be forgiven here where a smaller than five per cent. on what the nation pays very different state of things exists; but he must by the present mode of arresting gold.

have been ignorant of the circumstance that one The country need not place the slightest confi- manager to whom he refers has lived in that capacity dence in the expectation that the Government will for eighteen years ; while the manager of th deal satisfactorily with the subject, unless they be City Bank made no extraordinary losses, and has compelled from behind or beneath. Some local occupied that position for nearly twenty years irritation exists in Scotland on our local treatment. earning, as he lived, the good will and the kindly An idea prevails that something might have been feeling, we believe, of all whom he met in the disattempted to relieve the City and Western Banks charge of his public duties. of Scotland, in Glasgow. They are not com- The suspension of the Bank Charter Act was panies formed with a defective capital. The done to save Liverpool, London, and American paid-up money of the shareholders of the City is interests. The difficulties experienced in Scotland one million sterling, and of the Western, one and made little impression on the Ministry—that is a-half million. Their united capital absolutely the idea prevalent here, and it sours many tempers, employed in their business was two and a half and would have been useful to the Scottish Rights millions, or within a trifle of the money paid-up Association, if it had been in a state of vitality at by the shareholders of all the London Joint Stock the commencement of this winter. The best cure Banks, except the Bank of England. The in- for all grievances involves their prevention subsedebtedness of the two suspended Scotch banks is quently. If any addition is to be made to the ton millions. Their paid capital is, therefore, fixed circulation of the Bank of England, we equal to one-fourth of their liabilities. The paid shall be justified in expecting a similar addition capital of the London Joint Stock banks is not to that of the Scotch bauks, not of course in equal to one-tenth of their liabilities. The amount, but in proportion to their circulation shareholders of the London Joint Stock banks are under the act. If the Scotch representatives able, doubtless, to discharge all their liabilities ; cannot accomplish that object, they are unworthy but not more likely to do that than the share- of their seats. Even with his large majority, and holders of the City and Western banks, whose with opponents almost impossible, as his successors, private property is quite equal to the liabilities of Viscount Palmerston, would not cheerfully lose the respective banks, if these concerns were not the support of the Scotch members. They are worth a halfpenny, instead of having apparent not a numerous body—not so numerous as they assets for three millions between them above their should be by fifty per cent.---but they are compact, debts.

and generally sturdy supporters of the Premier, to The City of Glasgow Bank, we are told, paid whom he will yield this point. out half a million in gold before its suspension ; The currency questions are neither so light or considerably more than all its circulation. If I reading nor writing as to tempt us into their

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discussion, except for their essential importance. take five weeks of 2s. weekly to repay the 10s. The industrial homes of this land are made the that bought bare food in one idle week. What sports and toys of capitalists; and not even a then if there were ten idle weeks ? What, but a a large number of capitalists, but a knot of twelvemonth passed in paying debts, working and millionaires. An operation by a few gentlemen paying, paying and working ? Nothing can be casts thousands into misery, and tens of thousands done for the school that year. It is not the fee out of work. Not one town in the three king- although that were nothing; it is the small doms, exists now without its long list of the garments that cost little—but the little is more unemployed. The unemployed-statesmen know than the family can pay. only the bright side of its meaning. They are The present crisis has been peculiarly unhappy often unemployed, but they do not go without in Scotland, from the great number of young dinner and wine because they are discharged | females who have been deprived of employment by and paid off. They do not know what may the failure of a single gigantic house. Such is be seen in maay homes of any manufacturing the tendency of monopolies and of our times. A town this evening - little children looking be-banking monopoly produces gigantic manufacturing seechingly into their father or their mother's face firms, because, of course, it secures a paucity for a very little bread, and they have none to give. of banks, whose directors prefer the accounts of They do not know how people, who have honest their acquaintances and friends, or large to small pride within their hearts, cannot think of asking accounts. If this particular trade had been any help, even from neighbours, and much less divided, as it might have been very well among from the parish, and strive to look happy in forty manufacturers, they would not all have failed hunger, sheer, downright want. They can tell at this juncture; and the deplorable thought nothing of the sorrow wherewithal thrifty matrons, would have been spared to many minds that who never had more than a few shillings weekly through no fault of their own; for no reason that to save from, carry away some little remnant of they could control, several thousands of young the past—a memorial of the beloved—a trinket of females are deprived of bread, because they are the dead—to buy meat for the living. They have left destitute of work, and exposed to all those never thought how, in a crisis, footsteps bend temptations that assail extreme poverty. towards the pawnbroker's, who never turned into The conviction that we can never have a hope that door before; and when the ice has of steady trading under the present currency laws been fairly broken, the practice does not --a conviction founded on the experience of past seem so deplorable. They have never dreamed years—compels us to urge a change in them for how all this want creeps in between the the sake of those who have been allowed no vote home affections, and plants in the infant mind a in their construction. Their friends say that thought-a puny little thought; that its parents other plans would work worse.

Worse !--nay, are not good and loving parents, or they would and how much worse could any other plan work? bring it bread enough-surely bread enough-and Let us only try other schemes in the happy belief its father would buy a little biscuit as he was wont that we can scarcely go fartber to fare worse. to buy, and give it just such a small hoop, as other Once a long number of years now bye.gone, children drive before them—for the young thing urged by our greatest author of the last generation, knows not how that heart may be beating dull, who, although his politics were those of a baughty and slow, almost as if it would stand still and stop school, loved intensely the homes of his countryfor ever, because there is no work—no work for the people defeated one attack upon the currency the skilled hand, or the strong arm—and no wages; then existing here. They can succeed now, if they but the little thought grows up to be a dark shade-insist upon an effective change in that suspended between hearts, if the sorrow and the suffering thing wbich has been twice disgraced, and should last long. Rich men and statesmen, who have live no longer. never made the multitude their study, not in books That work requires to be commenced and but in their homes, could not think what they concluded this month-begun and finished, before have never seen of evil arising out of these calami- those winter holidays that will be so dark and full ties, springing like the gourd for swiftness, bitter of gloom at many bearths. And it can be done, as the wormwood, like the hemlock poisoning the well done, if the members of municipalities, and springs of life.

the fathers of our villages, and leading men in This next session of Parliament will produce parishes, will, for once again, as they have done some very fair speeches on education—but we do before, assume the slight labour of preparing not know a member likely to tell the truth that memorials to their representatives, or petitions to this crisis has put back the education of many Parliament, against the Ministerial measure, if it young children for six months. Many artizans falls short-as we expect it will fall-of the earn only 15s. to 20s. weekly, and many earn less expansion and the security that the people are enin ordinary times. There cannot be much saving titled to expect. from that, even in a very small family; and when The working men of England, Scotland, and it ceases the family must run into debt. When it Ireland, looked forward to winter less recommences the debt has to be paid, and it will severe on them than those that they have passed

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753

STORIES OF THE INDIAN MUTINY.

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recently. God made his suinmer's to ever, do we ask for a quiet demeanour, the shine warmly ou

our fields.

The crops bent redress that strength might take. Not less sucwith their own weight. Peace was taken away, cessfully, surely, should we plead in peace, and but plenty was promised. And now this man- | law, and order, for the reform that mulinies and made cloud ; in a great measure this law-made violences might bring, wrecking their good to us cloud, pours down its torrents of wrath, and hopes in their heavy price as they came. are bleak, and homes are desolate.

The disap

And if the middle classes cannot or will not now pointment has been met calmly and courageously. assist themselves and the unenfranchised in the Two places alone-Lurgan in Ireland, and Not- removal of those evils that destroy profits and tingham, in England, hare evinced a riotous spirit. wages-cannot guide and lead to success ou this There will be no riots. The richest need not fear practical question—they will not complain of the here for their greatest or their smallest. No impatience that says we have waited long, wanting offensive proceedings will shake the weakest often, and we must wait no longer for those great nerves of the oldest lady in the land. As a rule, changes that will work --not for the destruction, nothing of that kind will occur. Not less, how. I but for the preservation of property.

STORIES OF THE INDIAN MUTINY.

The dark history of 1857 in India cast shadows occurred on a Saturday. General Hewitt, who before it. The infatuation and treachery of commanded the forces at the Meerut station the Bengalese sepoys were foreseen by some expected, by this determination, to crush the statesmen, and by many who made no claim mutinous spirit out of his corps. He might to the title. Still, the Anglo-Indians lived have been more successful if he had marched in security, as those races live who have built the men to a distant gaol ; but no other dwellings, and chosen fields upon the crust of occurrence stirred the fears of the Europeans at a volcano. The Government entertained the Meerut until the next evening, the night of same feeling of insane security, and although the 10th of May. That was a Sunday, and they had been repeatedly warned by occur- they collected to evening service as usual in the rences rather than opinions, yet they made station. The sepoys chose that hour for their no preparations for the storm until the late Sir mutiny. They began by forcing the gaol, Henry Lawrence telegraphed to Calcutta from releasing their comrades of the 3rd Cavalry, Lucknow, in the month of April, for unlimited and along with them, 1,300 of the felons conpowers. The request was conceded, and the fined in the prison. Council began to consider the use that they had These criminals were the worst portion of the made of their own powers.

people, the dregs of an immoral population; The first serious act of mutiny occurred at and those who may reconstruct the social system Lucknow; but that was suppressed by Sir of India should dispose of its criminals in a Henry Lawrence. The real origin and root of manner widely different from that formerly the contest was at Meerut. This station is pursued. Banishment should, and would long not more than forty miles from Delhi. Itago have been introduced more generally occupies a larger space of ground, and as the among Indian punishments, except from the European soldiers were placed at distances of insane respect of the Anglo-Indian Government five to six miles from the sepoys, they were for caste and the feelings of the people. The almost powerless to prevent the revolt. The feelings of honest people should be respected arrangements were extremely bad, but, like in all honest things, but the feelings of felons many others, they were made without any are not easily injured. The safety of the comprovision for contingencies that might have munity is the first feeling to be regarded in been considered possible.

dealing with them. They were stored up in The cartridges formed the ostensible cause great strength at all the Indian stations, like of quarrel at Meerut. The 3rd Native Cavalry magazines of murderers, ready to the day of refused to use those provided by the Govern- the first insurrection. It came, and with it, ment. They were, on the 6th of May, offered cruelties, most horrible and ingenious--of which old cartridges on parade, and refused to take no doubt, these criminals were the chief doers. them. Eighty-five of that cavalry corps were The ordinary quiet of that Sabbath evening immediately apprehended, and on the 9th of at Meerut was harshly and suddenly broken by May they were condemned, some to six, but the yells of the mutineers; and the falling darkthe majority to ten years' imprisonment- ness grew thick with the smoke of the burning ironed, and marched to the gaols. This event bungalows, until the flames, bursting out,

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