The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-09

nnyIwo principal ones At Manchester thirty Eve we're
secret accounts ke and q application BY the Bank
OF England TO examine them the private ledger was not
forthcoming After delay turned up, when dis
closed number Of startling facts One director alone
owed E70 600 In months board Of managers had
distributed amongst themselves 4,ao5 shares, 81 pre-
MUM. Besides these e., 465 were divided at lower
rate also for their benefit Dividends fictitious
profits were ALSO cooked in the same way.
RkACr0S AMERICAN PANIC OF lS3I-ExrENsIvE DRAIN
GOLD.
-'39-These years marked by series OF
financial difficulties arising out Of me emergencies OF the
principal houses engaged In the American trade From
the beginning of 1881 felt that Notwithstanding the
auatc to meet the enormous OF their engagements
by February March their difficulties excited great
attention until known TO what extent their ne
ccssites would require assistance great felt
| in monetary circles The bullion began TO flow out Of
the bank Golfers by the eth February had fallen TO
fa osa 900 The American houses received partial
in that month from the bank, and IN May they
Sd b the the
their appeal finally rejected and the same day three
great Anglo American hIms.wildes Wilson and Virgins
under accepanccs the time to the amount OF Is 600
BY the absence however, Of much doubtful paper the
! circulation became sounder, and assisted by ad-
vances from tho bank to the amount Of 2s 900 900,
the trade of the country revived In March 1895 James
g. King, Of New York then in London, obtained in
ncction with Barring, Brothers Co.. loan 81 900 900
specie from the Bank Of England enable the New York
1889 witnessed a repetition Of similar scenes TO those Of
1887 The large payments for foreign had depressed
the exchanges and the country embarrassed still
further by financial relations with the United States
American securities had been imported and there
was continued drain upon the bullion Of the Bank
c England which reduced from e. ,073 900 In April
! 1889, to f2, 522 900 in the following October To
stop this progressive DRAIN the rate of discount
| necessarily raised by the bank to five and five and
half per cent; and the drain still continuing notice
published that the bank would receive proposals for
the purchase Of the dead weight either in money stock
The attempt failed the price offered did not reach its
estimated value. "They, them" said Mr.. Norman
"pedged portion, obtained credits in foreign
vvhf fhavn Of IN Tho tnf
about two millions and half They also borrowed
ESQ 900 exchequer bills from the East India Company,
on the security portion of which they made
! Of have doubt" adds the well informed
writer, q that the foreign credit operated materially
tended to restrict the circulation here and also furnished
means Of foreign payment" The drain ceased about
! October.
We must omit to mention the fact that in 1889 the
Bank of the United States applied for assistance in its diff
cuities TO the Bank Of England, but the offered
(f30o O0O being deemed insufficient rejected by the
| former.
Is4O-Ths year was exploded the great Bourbcl and
Graham forgery conspiracy plumber the continental bank
by forged letters credit to be Of the bank
ing firm Of Gyn, Mills Co. 1t to the bold and spirit
ed conduct OF the London Times that the detection Of this
gigantic fraud mainly owing To the credit Of that
journal it should be stated, that although excr.
tons in this matter cost several thousands of pounds
refused TO receive the subscriptions raised for its REIN
bursement, deciding that the money should be appro
praed to the foundation OF two poor scholarships in the
! universities
1s41.-Extensive forgcries in Exchequcr bills were
brought light this year by which the public de-
frauded to the amount Of fss5 600 The delnqucns
|
lari Smith chief clerk in the issuing Office Of the
ehequer and aided by his accompices had for five
Great efforts made to remission of Smiths
sentence OF transportation but the government very pro-
| perly declined to mitigate his punishment.
The various internal alterations Of the business of the
bank which commenced in 1882 under the direction
of Mr.. Ray Since, were this year completed and have
continued to work satisfactorily TO the present day
CHARTER 1S44-IHE REPRESENTATIVE PRIy-
1s44-his year renewing the bank charter Sir Robert
Peel made several important notifications in IT, The chief
features of the act that IL restricted the bank
from issuing securities beyond the fourteen mil
lions to which it ordinarily limited, and that il pro-
vded that every note beyond that sum should have
its representative In equal amount Of bullion. BY this
and other alterations made in the arrange
ments and machinery Of the bank The government In
the last clause reserved to itself the right of repeating all
privileges of the bank not abolished by this act upon
twelve months notice being any time after the LIST
of August 1850 should also be mentioned that the act
granted the country banks the privilege of drawing bills
payable demand within the sixty five miles limit
at less than six months date.
RAILWAY MANIA or 1s45.
1si5The history Of the railway mania ~ this year
presents melancholy record folly as any that we
have recorded The abundance Of money and the
facility OF discounts that had prevailed since 1912
undoubtedly the causes led to it, Owing to the fact
that only low Of interest could be procured for CAPT
tai thirst far speculation cngcndered and
pushed the extravagant and ridiculous
Even the press aided in spreading the for railway
vestmens, for II found enormous source Of profit in
the lengthy advertisements published by the different
companies Again the cnvrons a Change Alley present
cd somewhat Of the varied snd exciting which
they offered the period Of the South bubble "The
Countess Mr. Francis down in her carriage
and lowered of excitement round the doors Of
her broker. Grave and sober dabbed scrip. The
physician the clergy man. the literary and the artist
rked their well earned procure share of the pro-
a,s, ANY one almost could start company and there
thousands OF dupcs ready TO swallow the tempting
bats held out to them 'Mcn without shilling" adds Mr.
Francis wrote for hundreds Of shares. Journeymen
mechanics styled themselves gentlemen and signed deeds
for thousands The Of notorious in the city
swndlers suddenly reappeared IN the lists Of directors
their names graccd by the cheap esquire and their resi-
dences given some far distant county. Every
talked OF making large fortunes, but very few realized
them. Each day witnessed the advent of new com.
panes times the quantity Of shares applied
for than be issued. In many Instances shares
liability, pay less than the interest receivable in the
funds few wary and unprincipcd spectators, Ike
the " Railway KING, made gigantic fortunes during ths
continuance u this frenzy but thousands Of worthy and
respectable persons ruined by The revulson set
in about the middle Of October The repeated aud earnest
warnings Of the London Hmes which like the NEW YoRg
HERALD had early sounded the ~ alarm, began to
produce their effect An advance IN the rate Of inte
| 10 head the general feeling o. uneasiness and
encouragement which had seized upon all classes
The crash came aud down went the prices Of railway
shares with rapdty that involved IN ruin the
projectors Of the bubble companies The deluson
passed but the effects remained. Business, continues
had neglected his calling ruined The merchant who
had embarked in these adventurous speculation. found
his cost that the reckoning yet to come" How
ratey docs this description apply TO condition
the present time.
rE FAMINE IN 1REiASD--Trs FINANCIAL RESULTS
1S46Second failure of the potato crop In Ireland. II
Il necessary that the harvest Of 1sl5 aud espe
cay Of the potato crop, not only IN Great Britain bat ia
the whole oi Western Europe, had proved deficient
that all the old stocks hal been used in cng out the
sumption up TO the harvest Of 1876 This latter, unfortu
naely proved even much than the two preceding
ones. The los resulting from the failure Of the potato
crop and Of the other crops IN Ireland alone, Wa est
mated at G16oco.000. In presence of these facts
tnuons and steady drain Of bullion commenced 70 provide
Tor the importation OF foreign brcastuds
qnrcd 10 make M the deficiency 81 food The bank how
ever took measures TO arrest the outflow which he
gan IN september until the 10th January following when
the bullion having fallen 10 El3 $40 600 raised the rate
OF discount TO az and the I'D u per cent The
supnenes OF the directors this drew upon thcm
censure and doubt contributed to the panic OF
< the following year
RHvuIsoS op ls4T-fl5 600 600
1s41ln enumeratng the which ed to the terri
c revukion o this year, take into the account
tc mmensc amount Of capital sunk railway schemes