Baltimore commercial journal, and Lyford's price-current. [volume] (Baltimore, Md) 1840-1849, 1847-11-06
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I'm Mo Rnston DniM Adrertiser.
ERCIAL CRISIS In ENGLANI

p loi, Of sr,c;c f,r food the great in
az = ~" ar,,,,,rt 10 nay, money for Rail Roads,
vi H. gs,I,rnt diversion of the surplus floating
ana tlie C'IS i, - hot object from the orlna-
c"P','' Of tn, md the Temporary arrangement
~ ~ c No. ba,,o,,s in dIti,,s and The removal OF
"''s'l7 80 -, tTg.tI,,r r,us,I an unusual scar
Iss.' ~ ~ e., a Io9r nnriod of fine The srvc-
ci!y ", 'i s,,rr has created alarm and panic,
I'! VI I'a( I,c, and occasirnrd searching scru-
ltss'H'" ~ - ;Jugls and revealed
t,hy nv ;me f . ,,rson,G hnuscs 10 themselves
''> ". ~ LIT: ''
TIt ,b orat fall in brcadstuns should have pro-
-, ~ t ~, riInr,s i natural cpoumh-aud il j,
uuo'u '.ig ttt % Iona, continued a scarcity Of
not SUI he; distrnt sLoud have, brought
NOM ""u ihons's Who were extended and whose
49,. -, irronycrtibIc and whose active capital
inr no nronortion TO their engagements
polT Ho 81 h~s baJ in Itself has been made
- ors, h,. rxaprcratrd statements in letters
J snanrrs and by the crude and contradictory
-; nm, firth rs The. causes and appropriate rene
- 81 ,bc commercial difficulties BY some, and
$50 whom are hiphly respectable names, the en-
brraSsmrnts are attributed mainly the operations
f tbr RAM, restriction law of lSI4,-by others to
thn LARGO expenditure for rail roadS,-and by many
= l. believed to h., in n great degree, owing to the
- a. IS ,f III, rr,,c trad, measures
VIII, we can find in The plain and undcniablc
,ns,s Grt mentioned above sufficient account for
Ill no. has occurred il is singular that the evil
SbonIJ h, rbargcd with so much confidence the
a,ra,ions Of tb, Bank law of lSi4-a measure
b;cL has srcurcd the, perfect safety of the Bank
J ,hc soundnrss of the currcncy,-and deprived
tb,. mi, of the exercise OF great ana dangerous
,,oyvrr which all experience has fully shown TO be
T,rcIuct;yr only of evil
For I'M, information of those who have not attend
ed 10 the subject it NAV b, stated, that the Bank
law of Is1t divided The Bank of England into two
drnortmcuts The one, the issue departments is 50
constituted os TO do nothing but furnish Bank not
on the drpositc of government and other securities
TO an amount limited by law, and on the drposltr OF
cold to any desired cXtcnt-and to furnish gold on
danositn of Bank notes ANY person having Bank ut
FnrIand notes. can always have gold for them on
drm,ud-and any person having gold. may have
Rank of ENGLAND notes for th,m.-so that the great
dcsidcratum is accomplished, of the convenience Of
Rank notes whenever desired in preference 10 Spc-
cic and the cerfqinfu always Of their immediate con-
vrrihty into spccc al the pleasure of the holder.
The discount dfDqrturRt and the Bank, is that
which we usn,llv call the Bank Of Eagland. 1t
has conitoI owns stocks, receives deposits, and
kcrns The account of the Government ii has
no1hinp 10 do with the currency 1t cannot IT gold
ont of lin, issue department without paving for ii in
R,n notes received by il in the course Of business;
nor can il prt Bank notes from it, with the exception
of the fxrd issue without paving for them in gold
the same as any other person must do. Its power
therefore is simply its ability lend, from the re-
sources thus limited Ordinarily il only lend
what il has coming in rcsrrving sufficient to meet
the calls of lis drpositOrs Its actual power cannot
he great because its money being usually lent, IL
can only rcloan what it receives Still, great was
lis mower under the former constitution of the Bank,
when il had no limit but its own discretion in its is
suns thar the pcopIr of ENGLAND retain the habit
Of looking TO the Bank for aid as if it in their
mower os formerly 10 increase the currency at plea
cure hy the issue of its notes The raising or low
cripo lis rate of interest of which much is said is
not q ,,tt,r Of urrat iu,n0rtanc, any way As what
cyrr may he thu. rate of interest lis ability to dis
corut i restricted within the same limits.
A LARGO parly however in England, think that
tbc Bunk sI0ulj po.sess the power it formerly had,
and finnish means in a time of scarcity to relieve
III, ,,Ii, 'Tbr,- sa,- that the Rank has seven mil
lion! of GOLD which is of no use and might be en-
plovcd for the relief of the public They seem to
toss sgbt of the fact that the Bank would not have
I.d Tho cold ot all but for the act of H. which was
I'll Co.. tb ,,rr,. nurnosc IN draw sufficient spccic
,o the Rank. and keen il thcrc,-so that under no
cirrunsoncrs sbould there be possibility of suspen
sion Of navmcntand if the existing stage Of things
in Enrland had occurred under the former consttu-
lion of the Dank il would not only have had now no
snccic 70 loan and no means of relieving the public,
bpt would olmo,; certainly long aro have been unable
10 sustain itself As now constituted, it is always
saf-nobodv has anv fear Of its suspension, and the
public mind is always at ease from the entire sccuri-
~ of holding the notes Without going into any
r.,sor;nr about il we may state, that the present
and former ministry and some of the best practical
minds in the kippi6m are agreed that the Bank act
works nrrE,ctIv. and answers admirably every pur-
nose for which il was intended.
sin tbcrc * n great cry for n change or for the
Ranl ~ have the mower riycn il 10 increase its is
sucs-ond il i by no means certain that if the Bank
could have the power of increasing its issues the
present moment the public mind would not be quiet.
ed. and cOnlilrnrr in a degree rcstOrCd-bccausc, il
i con fdeucc that is wanted and not la0ncy There
is money enough but people. are panic struck, and
they hold on 10 their money Something is wanting
IN art on thr imagination and frclinas-it is not a
matter of rcasoning-and if the power were given,
il would not probably be much used. because com
mnrcal engagements must have lcssrnrd greatly in
Fnuland within six months and they are continuing
TO lessen. so that the actual demand for money for
use in making payments cannot be- very great Still,
we would by no means recommend the Interference
of roycrnmcnt-wc think it wond be unwisc to
make even temporary relaxation at a time when
if might not DO harm because it might be- hereafter
done aoain at a time when great harm might cnsur.
We should consider il a calamity to the world at
large 70 rrucal the Bank Law Of lsi-and especial
l imnortant TO Great Britain that it should be main
famed The aid of governments if any aid be re-
onir,I ,o,, c ,npIird in a form less objectionable.