New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-10-30

tesd of Eel dig Us geld fer our whest, vii send rs
back our stocks.
While on this subject, and with the story repeated
by every steamer, that the CZsr Is endeayoFins -
break the Bank of England by selling bis ccnsols aud
drawing out gold we capn)t refrain from quoleg the
following striking pas sage from Bldckpo0ds Magd-iHe
for December ls47 il reference to the then existing
crisis:
Nicholas, obs yipg th.t the Preach funds bad,
like our own, very much declined, aud tnat puma
IVES the great desiderGtum in both countries deer
us,d n ,heir 70 scra and, with discern
melt which does credit 10 MS abilities, be pu'ch eed
al most advantageous rates deep lnse ee 10 toe IA
toI al securities OF England and Frsaee. Inc lnm4.
date rsult OF that measure was large sec'euon Oh
revenue TO tie Emperor, VITO s row one OF II caieI
creditors The utmste rdency IL ye; ~
the womb of time bat no thinking man will epateu,
plate without alarm the power wbGh SO gigantic ani
90 bilious susie as passia has thereby gained within
the very fortress sf our strength"
In regard to the Bark Of France, the cours' II Il
puIsuir Of purch asipg gold at premium has mys1
fed every on Anc veIy little is know IN N" c)uu-
try about its IT snsgement the probability of 80 early
SUSPENSION OF pece psy ments has been accep'ed oy
many as the solution the mystery. Whet1er suehs
the correct conclusion have no means Of deermn-
ing but we Incline 10 consider it at least premature,
for two res obs: because this option is chiefly con-
fired TO u eide of the AsDc. and because o'to the
Rank Of ENGLAND AID the Bank OF France have, on
p,eyiou occ ssons reored to extrao binary measures
10 counferac the effects of heavy drain this to' al
times when they not preparing h'r, but ON the
contrary successfully wardipg off suspension
In July, 1882 the Bank CT Eng md finding It's out
+ lion dow 10 So 900 OOO the rate being cent mace
a rspeements with Messrs. Barring Brothers Co.. oy
which the latter drew Il rec months bills Oh various
houses in Psrs for forty millions OF francs. These
bills were gotiated on change and the proceeds paid
into the bank AT the end of three months when the
scceptsuces fell due, the same amount was redraTn
ard the acceptois of the first bills we're covered taus
proongng the operation to six q on'hs. But before
the end of this tire the supply OF the regular remit
tapces of commerce ensb ed Messrs. Barring Brothers
! 70 lquidate all theb eDgas emenIs in Psri'.
| From the report of the governor OF the Bank OF
! France, dated January &C. 1897, we find that the
American crs of 1886, after Ieactng upon London,
finally affected French finances, AMI, to such an ex
tent that the specie in bank fell from 1872 to lO3
COO 600 of france. To prevent q crisis notwi'hstant
ing this diain the bank increased its discounts and
main aimed tie rate at 4 q cent.
Bnt in order to accomplish this, che obliged to
| have recourse TO extraordinary precautions. The
specie on hand decreased rapidly; it was necessary to
| replace this reduction. The bank purchased eight
! millions of gold at Paris; she drew from abroad
Il, 500 900 francs in silver bullion. The operation
! on the bulion occasioned loss OF l0J 900 francs
This loss hiss been in some measure recompensed by
more abundant discounts; out even had it been lm-
possible to obtain any compensation this considera
ton would not have prevented the council from taxing
that course; it would equal have adopted without
hesitation, iuasmuch 20 it was imperously called for
! by the interests of conmerce-a fact which 1t now
frank declares to you through my instrume 'tality
Whether the drain on this bank will continue long
enough to compel it to suspend do not pretend to
Judge But while IN the subject it is as we!to con-
slider the probable effects of such procedure 1t is
currently stated that gold in such an event, would
rise 10 a premium, and the premium would cause a
curent OF gold to set in from those count les where it
is at par Yet we find on the 10th May, 1897, when
the banks in the United States suspended that gold
oommaf ded during the of the year y cent pre-
MUM and still coin continued 10 be exported to the
extent of IS 900 900 from NeEYork and Philadelphia
alone between the 18th Of May and The 10th of Sepem
Der Of the same year.
Again in 1914, the capture of the city of Washing
toI the 2i;h August, inspired apprehension that
Baltimore and Philadelphia would be similarly visited
! This induced immediate run upon the banks Of
Baltimore, Philadelphia and New. York. and before
the ct of September they all stopped. The s1spen-
sion lasted until the goth February, lsl7, and com
prised all the banks Of the Union outside OF New
England. The latter held on and the result was tia.
gold soon became drug in their vaults Considering
the intercourse BETWEEN New-York and Boston quite
close as that unitiIg Paris to London this fact
would serve to show that the suspension of the Bank
of France would not necessarily involve that OF the
| Bank OF England.
The following extract from report read before the
Senate of Penns, AHA the Goth Of January, 1870,
by committee appointed to inquire into the e1 ent
as end Of the general distress then prevailing
testifes that during suspension of specie payments
the precious metals flow out OF and into the
try. Paper not being exchsDgeable for coin on pre-
septation its issue becomes umestrcted-m ney
becomes plenty-prices advance-foreg On productions
find resdy ma kettle exchanges gradually turn in
favor of those countries where the specie basis re-
presses initiation by keeping down prices, and the bal
anee Of trade has to be settled in the precious metals
and thus the country becomes drained of them, the
want Of which is not felt long paper is for al In
terpsl purposes its acknowledged Substitute.
"Morey lost lie value. The notes Of the city banks
became deprecated 20 T. cent and those OF the coun-
Try banks from 25 to so; and specie entirely disap
peared from circulation that the fractional parts
Of dollar substituted by small notes and tickets,
issued by banks, corporations, and individuals. The
depreciation of money, enhancing the prices OF every
species OF property end commodity, appeared ike
real rise in value and led TO all the consequences
which ever attendant upon a gradual advance of
prices. The false decisions Of artificial wealth ac eased
tie demand Of the farmer for foreign productions and