Alexandria gazette, commercial and political. [volume] (Alexandria [Va.]) 1812-1817, 1816-11-05

rod, attributable to that diminution!
I. Mr.. Whltmore. | have no doubt
about it. 4
/" Mr.. Pearse. Undoubtedly"
Jeremiah Harrison examined.
I" Do you mean that the diminution of
discounts increased the alarm
" The diminution of discounts, Il con-
|seqaently of bank notes, Increased the
ALARM, l. think. consequently increased
the rum (upon the bank.)f
/" Sir Franci. Barring.
Ifany embarrassment shall be pre-
duced, by an excess fprivate securities,
IA reduction during the alarm is impossi-
Ible--and an increase Tor the time will be
Iindispensable."S
Gentlemen, in the name Of heaven, 4
|of the Creator OF the heavens. ] adjure
you, weigh well this solemn truth. Let
liz have that influence on your future o.
|Derations, 10 which its truth and justice,
and the re pectibility and intelligence of
Its author entitIe it, Never was there a
truth pronounced that bears more strong
|ly upon our situation, and that seals more
|definiiively the condemnation Of cur late
and present banking operations.
Although |" the examination" was ex.
tended to237 pages yet the great mas OF
lit has no coDnexion with the present sub
|ject of discussion. What have produc.
led is, | suppose, amply adequate. Tbs
governor and deputy governor of the
Bank of England, and Francis Barring,
|are authorities equal to any in England
perhaps in the world.
From I" the report of the committee" ~
which is founded on /" the examinations
| shall make few extracts in furtherl
confederation Of the positions ] have laid
down.
" A very urgent demand for guiUsas,l
though arising not from the high price oil
gold, and fhe state Of exchange, but from
la fear of invasion, occurred in 1898, and
|alsoin 1897, and ineach Of these periods,
THE Banks restrained their discounts and
consequently also the amount of :heirl
netss, very much below the demand of
the merchants. Your committee ques-
ton the policy OF thus limiting the accom-
mediation in a period of alarm, unaccorn-
lpanied with aa unfavorable exchange
|and high price Of bullion,''n
/" An enlarged accommodation is the
|true remedy tor that occasional failure of
confidence in the country districts, to|
~hich our system Of paper credit is an
exposed. "'s
!" The circumstances which occurred
lin the beginning OF the year 1877, were
very similar to those OF 1898. An alarm
st Invasion, a run upon the country banks, !
the failure of semeof them, and a run
upon the Bank Of England, forming al
crisis like that Of 179S, for which, per-
|baps, an effectual remedy might have
been provided, if the Bank of Eegland
had had courage to extend, instead Of d.
|minishing its accommodations and issues
|of notes,"tf /
/" A much smaller amount lof curren
|cy1 is reguired ina high state of pnblic|
|credit. than when alarms make individu-
ais call in their advances, and provide
against accidents by boarding and in a
period of mutual distrust, discourage Pc
|cuniary arrangements for any dist,usi
|time.'tt
I" In the year 1898, the distress wasi
accustomed byafailure efconfdence in the
country circulation. and a consequent
pressure upon that of London. The bank |
of England did not think it advisable
to enlarge their issues to meet this en-
creased demand and their notes, pre-
vious!y issued, circulating less frequent
ly in consequence of the alarm that pre-
vailed, proved insufficient for the neces-
sary payments. In this crisis. parIIa-
ment applied remedy, very similar in
effect to an enlargement of the advancesl
and issues Of the bank a loan of ex.
chequer bills was authorized to be made1
to as many mercantile persons, givlngl
good security, as should apply for them. 4
the confidence which this measure diffused
as well as the increased means which it'll
afforded of obtaining Bank notes through
the sale ofthe e1chequer bills, speedily
relieved the distress both OF London and
of the country. "SS
| might here close the subiect. Ihope
no man possessed Of common sense
can now doubt on The course requisite
to be pursued, in a season Of difficulty
and danger. But lest their sill remain
a peg to hang doubt on, | shall add al
few, lines more.
The committee, in discussing the pro-
per remedy for ga demand upon the
banks for gold, for the supply of the do