Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1847-11-06
THE COMMERCIAL CRISIS IN ENGLAND.

THE COMMERCIAL CRISIS IN ENGLAND.
In the present of soctude regard things in Eng
land, few remarks may not be inappropriate.
The great drain of specie for food the great increase Of
gagemens pay money for railroads. and the consequent
diversion of the surplus floating capital Of the country that
object from the ordinary of trade and the temporary de-
rangement arising from the changes duties and the removal
of restrictions have together caused unusual scarcity of
ney for long period of time The severity of the
has created alarm and panic essened confidence and
stoned searching scrutiny into the Of individuals
and revealed the condition Of many unsound houses TO them
selves and to the public.
That the great fall in breadstu should have produced the
corn failures is natural enough and surprising that
30 long continued scarcity of money and prevailing dsust
should have brought down large houses who extended
and whose nconverbe and whose active capital
bore proportion to their engagements.
This state of things, bad in ITSELF has been made much
by exaggerated statements in letters and newspapers
and by the crude and contradictory put forth the
and appropriate remedies of the commercial difficulties.
BY and among whom highly respectable Names the
endorsements attributed mainly the operation of the
bank restriction law Of 1874 by others to the large expend
ture for railroads. and by many it is believed be in great
degree owing to the effects OF the trade
While we can find in the plain and undeniable first
mentioned above sufficient for all that has occurred
it singular that the evil should be charged with much
confidence the operation of the bank law of ls-a
which has secured the perfect safety of the bank and the
soundnes of the currency and deprived the bank Of the
else of great and dangerous power which all experience has
fully shown to be productive only Of evil.
For the information OF those who have attended the
subject may be stated that the bank law of 1914 divided
the Bank of England into departments The one, the
department. constituted nothing but
nsh bank notes. the deposc Of Government and other
curtics to limited by law, and the depose OF
gold to any desired extent and to furnish gold depoe of
bank notes Any person having Bank of England
always have gold for them demand and any person
ing gold may have Bank Of England for them
the great desdeaum is accomplished Of the convenience
Tank notes. whenever DESIRED in preference Specie and
the certainty always of their immediate converbiy into
specie at the pleasure of the holder.
The discount department Of the bank is that which
usually call the Bank Of England 1t has capital owns
stocks receives deposes and keeps the Of the Co
vernment; but it has nothing do with the currency.
cannot get gold Of the department without paying
Tor in bank notes received by in the Of business
nor can get bank notes from it, with the exception Of the
liked issue, without pay ng for them in god the any
other person must do Its power, therefore, is simply its
ability to lend rom the thus limited Ordinarily il
only lend what it has coming in resorying sufficient to
meet the calls Of its depoos It's actual power cannot be
great because its money being usually lent it can only eoan
what receives S sogreat was Its power under the former
constitution Of the bank, when Il had no limit but its own dis
erosion in issues that the people of England retain the
habit of looking the bank for aid, If II were in their pow
er formerly increase the currency pleasure by the is
Of its The raising lowering its of interest
Of which much is sad is not matter Of great importance
any way whatever may be the rate of interest," its ability
10 discount is restricted within the same limits.
large party however in England think that the bank
should possess the power formerly bad and furnish
time Of scarcity relieve the public They say that the
bank has seven millions Of gold which is Of use, and