Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1857-11-30
ran pAN1c 1N nNe1ANp.
THE BANK CHARTER ACT SUSPENDED

/ The las; London Tina gives the following in.
tsrestiag adviees on Tie condition 0. the Bank
Iot Ensland:
The whole history Of our situation Is plsln.
For years past certain provincial oint-stock
banks have gamblsg 10 an incredible amount By
means Of what are termed re-diseoaats-that
Is, with limited q 9iial they have granted ac-
commodauous to an almost unlimited extent,
sending the larger portion Of tue bills thus ne
Sotiated TO The discount establishments 10 Lon.
don, who in turn, discount diem fJr the Joint.
stock bank on the strength chiefly Of theindorsc.
ment Of such bank, aud not upon any careful
estimate Of the drawers or acceptOrs or the le.
/ climate charac;eTof the Transactions they rep
resent "Ofcourse we are safe with the Indorse-
ment Of the Liverpool Borough Bank" is the
cry. "The character Of its business may be
doubtful, but lis shareholders are all liable u
their last farthing.' Again, "Yhy should we
hesitate with the Western Bank Of Scotandg-
Among its PToPrietors are two OF three names
which are alone good for as many Millions
( But how is the money obtained which is thus
freely granted by the London houses2 The Sc
curity relied upon is the ultimate responsibility
OF a certain number OF shareholders scattered
ing anything in common with sound banking
security, is wholly unavailable IN er1erceneies
aud can never be realized except through pro
tractcd legal processes; bul the money ad.
vanccd consists Of deposits lodged 70; the
most part at cal with the discount houses, or
At notice nnging perhaps to moUth with the
ljOint.stock banks Here, then, is deliberate
breach Of every recognized banking principle,
Il mn saassfn e 4.
has led to the same results The London mon.
ey-dealers cannot have been iBsensble to the
peril but their practice is to carry on the sys
TEN until its inevitable consequences develop
themselves, aud inen TO seek safety bY cutting
of facilities" and throwing ihe applicants up.
the Bank Of England Thea we have depula-
tons TO the Governors, threats that if some.
thing is moi done the whole traLie Of tlie country
will be brought 10 stand, and an outcry, Of
course successful after the requisite amount Of
alarm has been created, for the suspension Of the
Bank Charter Act, IT. however, the cXnmulc Of
1917 had never been set, and these persons had
been tnught to feel that, happen what might, ihe
laws Of the country-in the full knowledge Of
which they had undertaken all their operations
would be rigidly kept inyiolnte not only would
the public never have been disturbed by predic.
tions Of coming ruin, but every safeguard that
Ingenuity could devise would have been Sc.
crctly prepared to provide for any casualty
If the disrOunl'houses and a0y Of the joint.
stock banks apprehend u withdrawal Of their
deposits to an extent to cause public incon.
vCnience, it was their business TO make common
cause 10 guarantee each others safety, and il
any nominal or contingent suspension were ne.
ccSsary, TO bear the discredit Of 1t themselves.
and not to inilici it on the Bank Of England and
the country They could have announced 20
the public that run being threatened ihey had
combined to mitigate It's consequences; ,ta;,
not being able to forcsee lis possible extent,
they had agreed to suspend for he momen! any
return Of deposits, aud, that To meet the did.
Guilty they would issue ,heir prOmsSory notes
ri three months bearing nine PEE cent interest,
aud secured by ihcir common liability meet.
ing OF all the principal bankers and merchants,
Including tue Governors and Directors Of die
Bank Of England; might have expressed 40.
proyn o, Vhe wisdom Of their course, and be-
fore Few weeks bad passed these notes would
have been nj premium. But, unquestionably
the character Of the issues would have been
damaged since the fact Of their having beer
OBJ gcd to resort 10 such a method would have
fixed them in their right position in relation 70
;he causes that had led to it, II any character
was TO be damaged, It was much more pleasant
that it should be that Of the Bank Of England, the
country, and the Government and, thanks 10
the ComphiSHnce OF the latter, they have .uc.
ceeded in placing II on that footing 10 be sure
they tool: care tliot thc matters should 20 10 n
point at which tue Cabine, would have little
choice, There was, however, an alternative
which although equally unjust, in being an ACT
of Government relief for which there was no
true claim, would still have prevented a Sacri.
flee Of principle. An issue OF one.DOund notes
could have been adopted without any infringe.
mcnl Of the doctrines on which the bank Char.
ter Act is grounded The fact that tue pcrmisS.
ion for the circulation Of such notes terminated
in 1929 is not material, As the law could have
been set asid on one point as easily as on anoth.
or. This plan, however, seems not even to have
been considered. After ten years experience,
therefore and all the enlightenment that was
thought to have been attained, we have been
t,irown back at once to the disreditable position
We occupied in the last crisis, and all the adrni
rablc conduct Of the Bank ofEngland aud Of the
respectable mercantile public has been reward.
by proclamation to every Sneculator OF reck.
less mo1ey'lcnder who may choose to disregard
the plainest principles Of monetary science. that
he VIII always find his safety in the very panic
which his own misconduct has promoted, and
that the only persons who will be brought 10
disappointment or cofusion will he those who
have prudently guided themselves By the law,
and have relied throughout upon its inviolabiIity
Amos BuRH-The last six chapters Of Par.
tons Life Of Burr, contain many anecdotes of
Burr, and numerous incidents. which throw