Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-06-29

on me sa,nr ier6ls, it they had wanted
go'u. Being asked, whether, If the Bank
'au not been purchasers al + 3 lSs Cd he
beiieres the price of gold would have
fallen To The Mint price, he answers, CT
.oink II might after some lime but that
Is matter of opinion om!v."
In The year 1917 the Bank had much
larger amount OF cash and bullion i'm their
golfers, than they had been in possession
OF al any former period-sincr their esiab-
iIs'men'. From the coS,uencement Of
HE year 1918 The stock has brsu progress
sively diminished. The diminution has
taken place IN consequence of engage
ments INTO winch the Bank entered lin
conformity with the power reserved TO
them by the original Restriction Act. in
The months of November 1916, and Aprii
anu September oil the following wear, 10
pay III the first and second instance cash
'of All notes issued prior TO The Isl Janu-
AIRY 1912 and LIST Januar, 1916: and i'm
the latter, 10 pay cash for their notes Of
every denomination dated rrier to the .st
Jan. 1917
ihe total quantity of gold coin issued
ron Tie Bank, III consequence of the
engagements Illus entered iDto, and ihe
continuance III The fractional payments.
under five pounds. appears by accounts
before ihe House, 10 haye amounted. be-
tween The lst January 1917 and The lst
January 1919, to The sum OF i 500 256.
! III suIn'as and halt guneas, and III ~o,e-
| reiSns and halt sovereigns 10 f 445g. 725.
Your COMMITTEE have asceria,ned. that
subsequently 10 the lst January there las
been iurth"r demand on the Bank Tor.
Soid 10 The extent of aboat e 200, OOO.-
lie total sum, therefore, which ,las been
issued by tile Bank since the commence
menf OF the year lo,7, has been abont
t g 700 900; and no doubt can be enter
| tanned that The coin thus drawn from tie
bank was demanded, not for the purposes
OF internal circulation. bat III order 10 ,e-
ai'se pruhi either on It's sale as bullion
IN TINS country, or on It's expectations
our COMMITTEE are confirmed IN this
conclusion. by The DOCUMENTS before Tie
House; from whicli 1t appears, thai the
sum ISSUED from the 9th ot December.
1916, iwhen the notes Ot,he Bank became
payable under the notice ISSUED Iu lie
preceding month, oJuly 1917, amounted
| only TO $500 los though the Bank
| had become liable on the I'd of Man of
The laiier year Ia pay cash for all Their
notes OF t and t value, dated pt!or 10
. The Isl OF January, 1916.
! ihJuiy, 1917, The foreign exchanges be-
came uniavorable, and have continued SD
since that period profit has heen rca-
lied on the expectation of gold con-. and
the Bank has been subject TO IA constant
demand Tor cash In pay OF their
notes.
The toilowlngeXirari from the evidence
given by MIR. Alexander Barring shows
the purposes TO which considerable Dor
ton OF the gold thus drawn from the cot
iers OF the Bank has been applied :-"In
France, II appears, by the Report of ihe
Minister OF fIDauce, thai there has been
I rI..I To fha &
sixteen months preceding the 3Ist Dec.
hast, gold 10 the amount of 1875 millions
OF francs, (being equal 10 about five nil
Hons s,erl ing y and silver 10 the amount
| OF Little more than three millions of
francs. OF that gold, upwards OF three
| Iourlhs was III com nom this counfrv
and Tbs operation has continued during
the present year, though The amount OF
| The imporiaiIons OF tins year has not been
reported"
1 our committee are satisfied that the
BANK, III undertaking 10 pay their notes
! III cash, under The circumstances above
mentioned, acted from he best motives.
| and from belief that The measure wo,,id
! tend 10 facilitate the complete resumn.
| ton OF payments III specie. Unfortunately
: u has had contrary effect; the last of
! me three notices having been given al a
| pefiod "hen lie exchanges were unfayo-
! iADIe, when the price OF gold bad risen
! from t lSs. Cd. 10 f. per ounce and
al a time when Tie Bank had uoi taccord-
ING To the evidence gwen NV AIR Har-
MANI that control ov'rtbeir issues. sh,cb
might have enabled then, TO counteract
Tie effect OF The unlayourab!e exchange
by a reduction ct their paper currency.
Here was, IN fact, the hall year be.
tween July and December 1917, a consi-
deFdDie increase III The amount of noles
lNsued by the Bank. The average amount
outstanding III The tour half years pre-
cedlng, bad not exceeded + 26,77I,9I4.
IN Tins halt year il was Increased ts
1 29,2lO, 035, having been in the pyevions
hall year, 6 % ,330, 76S. II appears Inv
the returns, that on The 5ih of July 1917.
innit dlaiely preceding The paymeu1s Of
HE dividends, The amount oUtsiandinU
Was T. % 100000 Oh the 4th of Ociobet
being "a lew days before The pa, meui of
| lie dividends 0f that quarter, the amount
was { %, 90O, 900.
j !ie issue of sovereisns between inv
| ami Dec. 1917, amounted To- L Or A.,5
so that had Tie sOpereigns remained il,
| circulation, there would have beru a.,
increase To tie circulating medium ls,.,,e1
by the Bank Of England ~ til, course ~
HAT halt gear, compared with Tin. Az. ,age
amount Outstanding in the tour half ve.,ps
preceding, 10 The eSteUi of l. 3,05S 543.
| 1ouF Committee cannot AVOID express.
| ing an opinion, that whatever u,ipht ba.
! me policy, aud however laudnGIe tIr
intentions OF lie Bank, IN engaging to
| WaHe paFilal issues of COIN ~ paN mem oC
| U"e' "o'es'N lien theeXchdnges became
uh'aVouFdDie, aud The price OF gold rose :.
| boVe the hint price, The only pode H.,
1 ~ u tts,,r.