The New-Zealander. SATURDAY AUGUST 7, 1847.

New Zealander, Volume 3, Issue 124, 7 August 1847, Page 2

The New-Zealander. SATURDAY AUG US T 7, 184 7.

lie just an<l feat not: Let all thp ends thou aimg't sit, be tliy Country?!, Thy Gou'a, and I'rutU's.

A Bill is to. be lai4 More Council, in accordance with the vrisHe* of Lord Grey, foi altering the Currency of the Colony. ' The abstract question is one of the most compll? cated difficulty : one upon which men of the most powerful intellects hare been engaged for lives, without coining to agreement in their conclusions ; one, wjijch no man in tyew Zealand, without exception, js competent to, give an opinion upon. In this case, however, such an opinion is not needed. It is no, theoretic e^positipn of principles f}iat we have to copsjejer, but the mere practical effect which this measure will have upon our relations with New South Wales. Future convenience of remittance must be Io9 kerf to, $nd the disadvantage to the place itself, of still remaining without a private bank; for it may be taken for granted that the issue of Government paper money will have the effect of scaring awny the projected e»tablishm,ent, half of whose profks would be oif course cut off. Upon these subjects, our colonists are perfectly comf etent to form a sound opinion ; much more so than Lord Grey, and his knot of theorists at home In qrder to enable those who have had neither Msure or opportunity to stucly the bearings of the measure proposed for the acceptance of Council, we will lay before them, io as few words as possible, a statement of the circumstances which called for au alteration pi' the moqetury system of England, and a consequent revision of the Bank of England charter, in 1844 5 the principle of the change that was made; and then enquire whether parallel evils" exists here, requjripg'a parallel remedy. It had been lorn* observed, that the state of things, which is ca)j<jd a commercial crisis, was no,t a m-re casualty, but a calamity of almos^ periodical recurrence. As the notions of many persons on what constitutes such a crisis are rather indistinct we will endeavour, before going further, to po}nt out its principal characteristics. A commercial cris;», is the. recoil of prices, after they have be«n, raised by speculation higher than is warranted by the state of the demand, and the tupply. A rise in price, it im.tt9r3 not upon what grounds, is expected ; ipcculative gurchas,ea are, made j the ady.an.ee

jjbegjus, 0,11(1 pf i t seJLt' nejjr speculators jnto the .field. The infection spreads, prices are unnaturally forced up, and the thing is overdone. At last it comes to be discovered that the rise has gone beyond the permanent cause for" it, und purchases cease, rr the holders think it time to realise thpir gains. Then comes the ineyjtublje recoil, and the pike falls to a lower point than that fom which it had ! risen, because the high price has checked the demand, and by stimulating production or ! importation, called fortli a lurger supply With respect to singe articles of commerce, this succession of events is at* continual recurrence ; the cause of it may be mostly traced to something that afforded apparent grounds (or expecting either an extra demaud, or a deficient supply, and the mischief of it does not in general extend beyond the ruin ot a /jew individuals, But there is sometimes seen, without any reasonable cause whatever, a general tendency in all commodities to rise in price together. The same series of eve tits takes place, but on n grander scale. Speculation goes to work in several great departments at once ; overtrading begins; nil calculation is o^ en-ridden by the gambling s t itit that springs up ; the final and fatal conclusion to which is panic, the end and devastation of which no man cap foresee or describe. In this case, we must not seek as before, separate causes specifically connected with each several' class of commodities, but some hidden motive power, of more general agency. These constantly recurring speculative manias and subsequent panics, were laid at last to the account of au ill- regulated circulation ; to the arbitrary increase and diminution of paper currency. We will now endeavour to explain the connection between this irregularity, and the evil that has been described. Let us suppose au over issue of paper, as was possible under the old system, to have tnken place, and enquire what will be the im* mediate result, lii the first place, money becomes cheaper, and prices rise ; it has even been observed that the first effect of undue issue, by increasing prices, may he to encou rage further issues ; wild speculation encou raged by overabundance of money begins, and by its own operations, still further height* ens and prolongs the rise. The natural consequence of this has been already described. Meanwhile, however, another evil has been at work. The value of paper, from excessive issue, no longer corresponds with the value of gold. The exchanges turn against us ; gold is expprjefl to a large amount, which is drawn from the coffers of the Bank of England The residue being insufficient to meet the notes in circulation, the H^nlc i? obliged iv self-defence, to apply the " screw." and to stop the exchange of notes for specie, by callipg in |ts issues. It diminishes it» loans to merchants, depriving them in a period of tailing prjees, of their accustomed accommodation, which is then more than usually necessary ; thus doubling (he Intensity ot reaction, where it should rut her afford relief. This e\il was of such fnquent recurrence, that Parliament found it necessary to interlere. An opportunity was. 1 afforded, by the terms of the agreement with the Bank of England. It will be remembered that in the year 1833, an act was framed, continuing to the Bank certai i privileges up til the )ear J 855, and after 1555 until Parliament s|iould determine to give one year's notice of its intention to revise the Bank of England Charter. Ejefqie however, the full peifod of the expjration of twenty-one years, there was reserved to Parliament, the power, after the lapse of ten years, of revising the Charter, und reconsidering the whoje s.ubjec.l of this agreement, Of this faiHamfint availed itself} Sir Robert Pe.eJ with his ministry, proceeded to s.eqrih out the origin of the evil, and to introduce a remedial measure, similar, in principle at least, to that whicl) is now recommended by Lord Grey to us. The great fundamental principle assumed by them in their inquiry, was that of the year 1819, the strict adherence at all tiu.es to a metallic standard of value ; their grea.t object was to enforce more constant identity between the v^lue pf the pound qn paper, with that of 123 gyains of gold. But the preservation ot this identity depended upon the proper regulation of paper currency, -which qf 3ourse,became, depreciated, when issued to an improper amo.unt. The question then arose, whether such circulation should be permitted to adjust itself, in simple oompliance with the demands of commerce, 0% whether it should i>e restricted by Parliamentary interference. Under the qld system |. c,«, before, 184.4, whafeis called" free'tra^lq in banking," was illovved, or nearly' so. It was held that the true principles which should govern the njtsue of paper money, were freedom ofcompetjtion, and immediate convertibility into coin at the will q* the, holder,* th.a,t tM combination 01 these principles would afford the public a complete security against the abuse o£ l V privilege. It began however, Jo be suspected, mainly Torn the example of America and observa;iot» of the recurrence ot thest commercial :iises in England, that mere convertibility as not an adequate security against over ssu^; t,h,afr alj&ojiuih it grovided the means of aking^ut of circulation % quantity of paper

Uu.?sd iff exchange for the precious metals, and *haU »l*ay« ,be payable in jthe same." . There js some confiuion here. Why this special mention of a fixed amount. If all paper and gold be mutually convertible, why not state ii in general ieiunsJ it is possible that the terms present Bank Charter,by which the issue pf notes takes place on two foundations— first, on n definitive amount of pubIk 1 securities j secondly, exclusively on n. margin of bullion — might have been running in the w liter's head at the time, But our isaiie is to be upon bullion alone. We aie told lhal it would be "convenient that silver should be used in common with gold for the payment of the colonial paper money," at certain rates assigned. The purity of Furl Grey's theoretic plan is sadly marred by bis deference to expediency. He actually introduces the " double standard of value," the mention of which is enough to bristle up the hair of a tho-rough-bred disciple of hjs own school. But, joking 'apart, dollars had better be left to find their own value here. What is to oblige a Sydney mercliaut to take them in remitttmces at the rate assigned a/nong us. We now come to a more important part of tha despatch. The substitution uf paper for specie being supposed to be complete, Uuee- fourth* of the specie are to be expoited lrom the country, and placed out at interest, and one-fouiili retained to meet any demands for payment that might be jn.ade. Due fourth is not enough. A prudent banker in England is supposed to, reserve a third) and even that, with the assistance of deposits, is not supposed to meet a run, but merely to give lime lor realizing seem hies, - Government pu{» \l into the power of a very few individuals to break the bank at pleasuie, for the specie v\ ill be fai away at Sydney. Surely it cannot think of depending upon the Commissariat chest for assistance. We can recollect, some years ago, at a period of popular agitation, seeing placards all ovqt* London in enormous letters— •• iostop toe Duke, go for gold." It is> giving too much power of embarrassment to thedUaliected. But when we come to investing the said three fourths tn Sydney, we are irresistibly carried back to Sir John's enquiry-—" What said Master Dumbleton about the satin for my short cloak and slop*?" Boy— " He said, air, that you should send better awuraijce than Burdolpti'sf he would not lake bis bond and yours j he lilted, not the security." But let us grant it deposited, as Lord Grey suggests, with one of the principal banking establishment* in that town, what interest yvjuuld it producef Four per cent, perhaps, rind that only by special agreement} » itii three in juili'* notice required of withdrawal. It Mould be better to take up the debentures, now paying eight per cent, with tt>e money. After expenses were paid, what profit will be lefi f We will not encumler our page with figu/es; let any one that feels curiosity take up his pencil, and set down, first, the ampunc of money likely to be so exported, with the interest upon iff and against that, Insurance, agency, cost of establishment and uliices, with, such other items as may suggest themselves % and, units* «c greatly err, the balance will be found updn the wron^ side. Ttie climax of all js, the earnest wish of Lord Grey to press upon the Govefnor's attention '* the imporiance of occupying, if possible, the ground, by some Government paper, before prjvaie Banking Companies shall luve taken possession of jt. And with such an amount of local information does he uhdeitake to legislate for J\ew Zealand. Wellington forgoiteu— submerged j with itt Bank and ijink director, its Bank paper too, the e*istenea of which we ounielues can vouch for, from puiulul recollection of loss, incurred there* it appears as if the Government were driven to the dilemma of either mci easing by threefourths the circu.Jd.liou of the Culony ,or of risking a run upon the Goveimneut banks, a.ccord» ing as they invest within the Uoluny, or without. F«r we cannot suppose thut they will adopt the only other «ourte lemaiuing—to sufler Hie specie received to tie in idleness in the coffeisot tneir bun|i, which would render the bill, in the idnguage of cneinjsis, a mere caput mqrtuum, with' the expenses of bunking establish' Bent left to pay. When will the Home Government have tlje wisdom, to übktaiu from altering the habitual arrangements ol the colonies. It is no nnroa'sonable request to ask to be let alotm. If what is established must be disturbed, let us at least have mine good practictil reason for the change. We quote from a speech qf Lord, Althqrp-^ himself a reformer — iii which he says thai "■Unless some distinct advantages could bed's? rived from a ehango in the monetary system of a country, nothing could Le more iil-advised, —nothing could be more useless than to depart from it."

W& lipve obtained leave to publish an extr^t from a private letter, the rt-marks in which must be confessed. to be much $00 (rue. " 1 lend you 4 Brinted, letter, addressed tq &ord Stanley by tha (squatting) stockholders of New South. Wufes. Not ttut I know anything of the merit* of the Question— the letter writers may be wrong ibr all I know— but 1 send it at a specimen of the style of writing which, really gayis. ajteu'tipo; It is.of no usl to drive a-head as you New Zealand men dq, like Ijot* headed school-boys calling jour Qqye^nprs und Offi» cers rogues and fools, and your' Military Officeri cowards; People just glanae at* the New Zealand newi in the Times, see the old «iory over, again, and class New Zealanders with Irishmen, as incurables. Now, the man who penned (he enclosed letter is clearly an "ggra.ya.tedL man., and hatna intention whatever of complimenting Lord Stanley or, Rover.iung v powers in. Auntwlia, but he abuses- them in readable terms'} he does not call them fools and rogues, but sets forth iv qourteous language- instances of folly %nd ihej other tiling, and leaves his readers to draw their conclusions, People read and believe such statements «s these, even if they were in fact overcharged or uufounded." New Zealand colonists »boi*)d be.or forpind' that the only check which- they have upon &r bitrary powePiij-theweighl which the irreprej!eft(lHi«a» %a 4' complkintt *r*«ntitled to at home.

We ourseJvw^onceivß it liO fee a sufficient check, if *lie weapon be used with judgment ; but, "by tbe abuse km* even random use' of ft, they impair its eflwaey. It is by temperate *nd reasonable setting out of grievances, iteadily and frequently urged, that effect is produced, not by giving way to temper : so •soon as the slightest symptom of such folly is •hewn, a deaf ear is turned to all reclamations. Let everything that is written, he written solely, with a view to impression, eschewing the colonial vanity of fine writing, or of«trong wiiting; we can assure them that the tomahawking style of composition is only laughed at in England, and, moreover, leads the reader to suspect an unfair presentment of the case. " A good archer is not known by his arrows, but his aim." Above all, let them abstain from pressing bad arguments into the service. Let them not think that fallacies will remain undetected, or fall into the common error of underrating ,ll»e perceptive power of others. A false "argument on the one side, counts, when exposed, as a good argument on Ul6 opposite •idei in practice at least, if not in strict logic; exposing the propounder of it to the imputation of dishonest reasoning, or of foolish reasoning. The impression invariably left is that the case must be bal, indeed, which needs such propping up. Let them, for example, reflect what would be the effect on their own minris, if, as jurymen, tbev were to detect an advocate in die attempt to mislead. Itmitfln chance to be latal 10 Ins c^se. We have been led to these observations by a letter, dated from Auckland, and signed •« Scrutator," which has latt'y appeared in the S,dney Atlas> the bad taste, and bad reasoning of which are so glaringly apparent, that we cannot help expressing our surprise that the editor of a so respectably conducted paper should have admitted it into his columns. It commences with a vulgar attack upon the Attorney-General for Jiie pliability— su the writer calls it— in having couducied defendant's case in Mcln'osh v. Symonds, after having been a parly to Capt. Filzßoy's famous proclamation. We would recommend •* Scrutator," before impugning ln e conduct of an Officer of the Crown, to endeavour to gain some knowledge of his duties, h it not a flat absut'lity to nuppose that an Attorney General cannot go into Court, like any other luwyer, and make the most of the brief put into his hands ? He 4s bound, by his place, to argue every case in which the Crown is concerned, without ie- | ference to the nierits of it; he has no right to usurp the functions of jud^e. We are almost ashamed seriously to refute such nonsense. • But what right has <c Scrutator" to assume that the proclamation— howe^ei it may have been acquiesced in — was issued in accordance wiili the Attorney-General's advice ? How can he possibly koow what private advice was given to Capt. Fitzßoy on the subject. We have reason to believe, although we have no right to know, that it was exactly contraiy to what is generally supposed. The letter writer, however, goes on to advocate (lie rights of the land claimants in his own way. We can only tell him, that he is wrong in his reasoning, in his Jaw, and in his facts. I ' c does not even understand the nature of an argument on demurrer, but would have had the counsel (op plaintiff attack the defendant's title/instead of supporting his own ! ! The claimants have little to thank him for ; it is neither blunders, or abuse, that will profit their cause.* They will perhaps permit u#, who have been from the beginning their steady and untiring advocate, to tell them how they really stand. They have no legal right, and it is time thrown away to look for such ; they have only an equitable claim upon the justice of the mother-crqntry. it is, foolish to try to slur over the final clause in Capt. FiizHoy's last proclamation, declaring that all such purchases would he null and void unless confirmed by a grant from the Crown, Their only tenable ground of clamv-the only one that we hwe ever urged •--is this ; that they were distinctly encouraged to purchase,- by the agent of the Crown ; and that the, Crown is bound, in honour and honesty, to pay the penalty of the mistake, " Summumjus, summa injuria." Any argument but that entails certain defeat"; but, luckily, it is a good one, and a fair one. We may take this opportunity of remarking that tpe New Zealand Company's journal Joseg no opportunity of connectms.,Auckland with the Jand-shaiking interests ;, as if' they were, not perfectly aware that the land-sharks came from elsewhere, and have gQne again % with a good deal of our money in their pockets. The accusation serves their turn, and in that quarter, ifr is useless to look for scruples.. Butiean they have' foiled to observe,, that where" wfe have bough.t land of the natives, it ha» bean fairly. bought— that, the native title hast beta kooeßtty, extinguished— and' that with, the exception of two or three petty squ.ibbles, there have lt^eiv no troubles on thut ground" in the Worth ! while the' Company's purchases of iwres for- Jew's-harps, have involved the South in a murderous war, ofwKicti no man can yet ▼e_atiw to, foretell 1 ' ttie «ndl $&*" tfrigM rapaciiy of tfcVCbmpan/ Has tiefetf vitftfetTWith

just retribution upon them, hat rbeen throughout the cauSe of all theii* misfortunes, of alt their 'quarrels with Goverhftifent at liom«.

We would suggest, while the council is *6ill sitting, the propriety of passing a short act to make driving or riding along footpaths punishable by fine. A great deal of grumbling would be put an end to aftnong pedestrians, who, probably constitute the majority, no cause of complaint being left except to those who keep their carriages. Carelessness of driving about the, streets, in spite of the many accidents which have al-> ready occurred, is becoming even more common, and might be prevented with little additional trouble. We are aware that it is proposed to leave such measures to the care of municipal corporations, to give them liglit occupation, and to keep them out of mischief; but we believe that every one would be much better pleased to s«e the evil' i tired at once.

By the arrival of the Ramillies, we have English news to the 15th April. The Home Government were fully occupied in devising and administering measures for the relief of the famine and disease prevalent in Ireland. The sufferings of that country are truly frightful, and the gigantic measures of aid, in course of minjstratian, are on'y expepted to effect a mitigation. The House ot Commons had heen several nights engaged in the discussion of a BiU for the further removal of Catho'io disabi ities, which was thrown out on the 14th April, on the motion for going into Committee, by[a majority of 39. Government had intimated a scheme of General Education, which had already given rise to public meetings in Support, and in opposition to it, the outline of which we will submit in another number. The rebellion in Portugal continued, and the British Governmeut had placed a strong squadron in the Tagus, for the protection of British property, and if need be, the Royal personages, should the capital suffer invasion or tumult. In Spain, Queen Isabella it. dad freed herself lrom intrigue and restraint, and effected a change of ministry. The Dowager Queen Christina, had withdrawn to Paris. The American forces still waged war in the Mexican territory, and threatened Vera Crux. At last dates a rumour obtained, that General Santa Anna had gained an advantage over the American troops. The French Government had, like that of iingland, interdicted its subjects saiing with Mexican fetters of marque, which the latter Vvas easier to ■ issue. The war in the River Plate still, raged, and the city of Monte Video was considered in danger from the Buenos Ayrean army. In the Obituary we notice the death of Prince Jul es dePo'ignac, who was the ] last Minister of King Charles the Xth of France.