Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1826-10-05

the same time that myriads Of tb,..
bills that previously served to swell hs private
Of the currency, and to add to the ms "s amount
speculation have been swept off. "N''nerya
1t is, we take leave to say, the mers.
ling possible, to suppose that the uFl'et
proposed during the late session. for tbo .sSues
ment OF the currency, afford any real a"ent
stantial remedy for the abuses Inherent SUI
system on which it is now issued 7, Il 10 he
that Lord Liverpool has prescribed tbs - - 0as
OF his friends the COOLERS and cheesemonmn.uO'
England, though he has apparently fora%S,e rsa
the 81. loL and aol. notes. which these S ." IA:
are still allowed to issue, aoHiom cheek '.Hla
troll of any sort, are about as difficult r. " o.
draw from circulation as those of Il. ,n, Will
in point of fact, FULL THIRD of oil The s"r nat
banks Of England stopped payment in l7g3 g
mo H. notes, or notes for less than 81 rers ' w.
circulation! 1t would be a libel on ,ba s~H
sense of Parliament and the country, to eng. S03
that they should continue to tolerate sIl,
productive of so much misery. It's ups y,Ia
BILE effect is TO render every industrious nun
taking as much of gambling TRANSACTION S4 s'i
its success depended on throw Of The AL AN
We believe, indeed, that the late measure, S ~.
well intended; but it is not too much n -, -,
that they were proposed without due cons;d.h
ton, and are altogether Intellectual 10 the n,..I
object that ought TO be KEEP! constantly IN T y;.'
that of establishing the currency on solid 6vnJ,
ton, UiM the least expense and incoareaieng n -,
country, and to all parties concerned To efs,.
this object, it is essential that no paper Of ~.
description whatever should be allowed ,o-t
issued, except by those who are both able ,ns
willing to give full security for its Daymrr~
And, as the same means which are necesesr.
TO establish FIVE and ten pound notes on g.
cure basis, may be equally applied to one noun
notes, the currency Of the latter NAV be copli.
ued without loss to any individual; which win
save the country the heavy, and, under the eli,
cumstances of the case, we scruple not 10 SAY
wanton and unnecessary expense, attending the
supplying Of their place with gold.
Though it is certainly true that the late re-
vulsion was wholly unexpected by the vast ma
iorily of the public, it cannot be said that there
were no previous signs or indications of is
approach, or that it did not cast its shadow b.,
FORE Early in spring 1924, an eiilux Of III.
metals 10 South America was taking place and
in June and July 1924, there was decided fall
in the Continental exchanges, and the EXPORT.
ton of gold coin and bullion began to be Cal.
ried on to great extent. Here, therefore Is
Mr.. Tooke has Justly stated, was warning not
to be mistaken, that the currency had become
redundant: And 1t must ever be regretted, thai
the Directors of the Bank of England did no.
then set about contracting their issues. Had
they done this, all the subsequent oyeTSsue Of
the country banks, and the absurd speCuIa.ioHs
that took place in the early part Of last year,
would have been effectualy prevented, while
the crisis that would then have taken place
would have been com paratively gentle Blu:
instead of being reduced, the issues OF the Bank
of England were actually increased in 1924 aDt
during the first three months of 1925, and Il
consequence, the issues Of the country banks
were increased in still greater proportion
But it is oh vious, that every person acqualnls.
with the state of the exchanges, or who kneg
that heavy drain for bullion was operating OF
the Bank, which nothing but the magnitude Of
the treasure she had previously accumulated
could have enabled her to withstand Tor any
considerable period, must, had he been posses.
ed even of the merest elements OF the science Oh
money, have been aware that the whole Papersys'
tenn had become hollow and unsound, and that
its explosion could not be long averted. No'
is it true, as has been said, that these are con-
illusions that have been come TO after the even
and when every one was in condition TO max,
them. 1t was impossible, indeed, to loreN.
the exact period when the revuISIon was
take place, or its extent. But speculauo"'
with respect 10 the effect that the dram IL.
gold would ultimately have on the banks, VET
freely INDUCED in for several months before t.'
Directors began to contract their ISSUES v,
have repeatedly heard merchants and Oa' eI's
Of the greatest experience, express their aeC'o.~
opinion, in March and April 1925, tha' W.
|. were on the eve of tremendous TeyuI'OI
And in various tracts published several mum w..
previously. it was shown that the ciLcu' 1Ds'
had become over FULL and that, when Inc DA',
of England did contract her issues %' ), w. ",
certain she would IN the end be obIlSed 70 w.
the contraction would affect the couh'l y~. Je
in way which would most ProoaDN -
struclive Of many Of these estaOlS'l'l'.",IL ,r
Nothing, therefore, can be more lncofIe'''
to contend, that the late revulslon was ho' -
SEEM or that there were no previous pre' .E. n,
the coming tempest 1t is true, lndTeu, s's 70
attention was paid to those who ehaea'O' ~ 70
call the public attention to these signs, W.,
apprize them of their real situation. II Va" c,,,
no purpose to tell those infected win l"' &c ,5s
Of speculation, that large proPortl0" .%,t i,
currency rested on no good iounaa'ioo' woaIa
u nI hn.nn,a re6nn1anf and thai lIlCtN