The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-27

Tor that O0O but to the operation of the act OF
lsia But for that act know of security We should
hsvs had the possession Of any bullion In the
try. Cheers II ths Bank had discounted advances
their having had SO much gold 5000 OOOi pos
session During the whole summer the exchanges were
gold silver purchased by the snk throughout
that period II II Is argued that want OF capital or
should like know what check cen applied to it
IL quite clear that in the present instances at least
no Of interest if railroads had found
no difficulty la borrowing money at or per cent the
h ~ IN nAue Ur s, snsn ins
possible that that state of things could have continued
odthe demand for railroads would not have been check
ed early-but later the time must have
the pert OF the bank and the longer that state things
had existed tho more sudden that check would have
been IS unnecessary to refer to than the effect
or the sudden check to show what would have been the
effect on the trade aud commerce of the country II that
cheek had never taken place for II the drain OF bullion
2Ooo0o0l or 1900 O00l the publications to which
have referred stating accurately the facts week by
week any body suppose that under those CIR
curnstanoes, the want OF capital and the alarm now
felt would not have taken the course OF run upon
experiences teaches that would have BEEN assuredly
tbs case and proves the wisdom OF those by
which have bssn able, without difficulty to retrace
steps. Without these measures, should have
been in imminent danger of cash payments, and we
der In council which Is one Of the severest
could have adopted to the credit of the country
been to the operation in the early part year.
ofthe act OF is4 that indebted for being saved
circulation perfectly necessary aver that conse-
quence fully admit; but when that prdSsurs
not shrink from the responsibility of the course we
adopted and believe thst by that did avert
place AN not prepared say that all difficulty and
pressure as over at the close OF the last seu
hard times to 90 through, and think ': 70 still;
but so great calamity Us the destruction OF
so fearful visitation OF Providence, cannot occur
without throwing some OF its consequences, in their
ever was astonished when heard Hon gentlemen re-
gard the importation OF food under the existence Of IA
nine, as hke The ordinary operation OF free trade
Clear, hear To say that all these consequences we're
anticipated from the altered system of the mpOr taon
81 corn utterly set at no1aht by the circumstance
that that importation took place un.er the pressure of
famine. (Hear) j. does indeed to most ex-
raordnsy ension to attribute these consequences to
ffee trade We had md panic under the
tective system OF 1890; had press and panic
under the m.igated system Of 1885, and we have now
ana panic IN the state OF change through
We are passing from protection to free trade am not
prepared to decay that any change in itself an evil
may result In the end but IT hardly occur that
change eau be made without evil. Hesr, hear)
certainly held out the expectation that evil would
not occur In our present change No said that
the whole OF the prosperity Of the two three
ding years was owing merely to free trade; but to
good haryests, the employment of people, and the
development Of industry railroads, without any
drain on the capital OF the country may be imputed the
Tact OF that prosperity. To exceedingly large har
vest, but high price Of corn drain the avail
able capital OF the country is to be- attributed the late
pressure tits attribute the whole Of pros
perity preceding years the trade
rs 1t Is to attribute the present adversely to the
cause. (Hear, hear) hope and believe, that when
that system is fairly established prosperity will be-
established also upon Arm aud sure basis but never
consequences of this kind Another cause of the late
pressure is that for years have had falling rate OF
those gentlemen who have relied borrowed pita-
(hear That state OF things however would not have
been affected by the issue Of bank but only by too
inadequate euDDlV TIA isma nd WA n
state OF things which issue of bank notes
could have had beneficial effect and sorrv shoud be
TO see such expedient adopted under circum-
stanoes remember after the passage of the act of S9
there was hardly any calamity in the agricultural
mercal or msnuftc uring interests which not in
like manner attributed to the act Of 1919 Upon that
point we are wiser Those who attribute evil effects
TO that act few and select ia number believe
that the great majority Of the public convinced that
It was an act most beneficial to this country In like
manner, ] do confidently anticipate that when the
immediate pressure of the present time is over-when
gentlemen oelmly and impartslly look back the |
events OF the last few monthsthey will be Inclined
am to attribute small portion indeed of the evil
to the effects of the act of ls44 Complaint has been
made that the operation of that act has preserved
from the commercial convulson (Hear know not who
those are who expected it. Hsar) If there such,
which meet persons are actuated in commerce Ger
tsinly for never held out any such pectations
to tue country stated most distinctly that did not
c0ntemp plate that such would be the effect OF the act
That speculation might be carried on and that persons
N.Y. but did say that this end might be attained By
that measure that might prevent additional |
ton by means of il-regulated currency hold In
my hand the pamphlet published by MIR Jones Lloyd,
expressions that act?- TO guard against CONNER
Gal couYusions is not the direct real purpose of the
BILL To suJ-ct the paper issues tosuch regulation
shall secGro their conformity in and value with
aud quently their immediate conyerblity at all
times into metallic money is the purpose to which the
provisions OF the measure avowedy directed. -
Those the objects for which bill was introduced
and do not think that any rejecting would be-
lievo It could prevent commercial couvulseps, and
should have little faith in any of currency
taiic circulation which would profess TO do more than
regulate the circulation The object Of that measure
as believe aud that object has been attained to
insure the value OF our paper and currency in the
manner as metallic currency. The currency of the
two great commercial places in Europe, Holland and
Hamburger, are practically carried on in the
Bullion Is deposited In the bank for every
that goes out bat did anybody hear that those
countries were free from mercantile commercial con-
vulsions in consequence Of that system? We are told
that this restrictive measure to the
OF tue circulation but enables any persoD who chooses
convert bullion to notes and authorizes the issue
OF notes to extent to persons who may deposit bull
lion with the bank, and 1000 000L besides The same
effects precisely might have occurred under metallic
circulation and it never PROGRESSED, did any
THINK that its operation would be- other than that which
would have happened under such a circulation. What
ever has happened under the circulation would
have happened under the present circulation would
have happened under metallic circulation, whilst the
jormersS attended by geeater convenience as circu
lating medium 1t ia perfectly that the amount of
reserve in the bauka the end of the of s46
prevented any advance of cash upon notes to be issued
TO the public vt the tins it perfectly consis-
tent, admit with the provisions of the act and there
opngaUonb on directors OF the Bank OF
England TO act otherwise than they did. | think II |
would IA been wiser and better If they had given
Timely warming but that evidently rested there
was no obligation to do simply the discretion OF
the directors and am far from saying that that dscre
non was wisely exercised (Hear ear) 1t is utterly
Impossible but that establishment possessed OF
large capital can be most powerful either for good
LOT evil on the commercial interests OF the country and
IT. matter Of vital Importance that the
OF the ia NIX OF England should be souudly
wisely am airail that recent events have somewhat
fsken the confidence OF the public In the direction
that bank iesr, hear 1t may be difficult suggest
n mode OF improving that management but OF this
sure IL Is we'll worthy Of consideration
perhaps that may form subject of inquiry by the
committee which am about to for. ! believe that
although the Bank Charter does not expire for some
years the bank paror not ndisposed to in any
measures which the wistom of Parliament suggest
for they find some diicu IT, believe in inducing per-
soDs 70 undertAke the heaHq and reepon,ble office Of