The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-27
THE SUSPENSION OF THE BANK ACT
OPINIONS OF THE PRESS.

from the London News, Nov. Is
Commerce breathes again. For the second time
the provisions Of the Bank Charter act have been
suspended. Yesterday afternoon, to the inexpress
BILE relief of all commercial circles, II was officially
announced that her Majestys government have au-
thorized the Bank OF England 10 disregard the tram
mels imposed by Sir Robert Peel's act and to issue
notes il necessary. TO an unlimited amount. The
conditions imposed are that the advances must be
ION approved securities, and at a rate OF discount
not less than 10 per cent per annum In other ,cords
the mode Of reiit IS eIacty the same that adopted
in the panic Of ls41; the only difference being that the
price fired for The Of notes is f,ro per
cent higher. The rate at which relief Is afforded is
not the important thing; the grand point is the GER
tainty that upon certain terms relief can be obtain
ed. What commerce stands In immediate need Of
is money. and for this II Is ready TO pay any reason
able rate. What IL regarded with extreme dread
was the prospect, daily drawing nearer, Of an
almost total suspension OF the requisite supply.
Considering however. the absolute necessity which
existed for the instant adoption of some measure
calculated to pour oil on the troubled waters Of
finance the decision adopted by government is char
acierised by happy holiness which will doubtless
lie attended with the most beneficial results We
differ from and condemn Lord Palmerston's policy ON
many points. On the present occasion we unhesi
tatingy proclaim that we are grateful 10 ministers
for the courage and aacrity with which they have
sponded to the national cry of distress At the
time II must he kept in mind that government had
little choice but to act they have done. This l. not
the first time that England has awOke TO find that
she has been slumbering upon an incpient earth.
quake. We are too sincerely grateful for the escape
Of the country from great danger to entertain
any feeling OF luminosity towards the party who,
whilst acting doubtless TO the best Of their judg.
ment have labored hard TO close the safety
valve: but we must tell the supporters of
the Bank Charter act that they brought the
nation even recently as yesterday, TO the verge
Of an explosion which might have shattered the en-.
tire financial edifce and carried deep distress into
thousands Of households. The secret history Of the
pr,sent-we trust We may say past-hnancial crisr
will probably he written: 1t IL not meet that IL
shouldn't least until the return Of calm and prospe-
rous times, when it, full bearings may he safely dis
cussed, and moral may be pointed for future gui-
dance. The too strict adherence 10 mere theory has
brought the country r'fhin the last feT hours, TO the
rergs of MONETARY crisis perIous as that ,cif-
messed ~ ls47. The ordinary channels 81 monetary
accommodation were rapidly becoming choked up.
The community were rushing TO the bank for mo-
ney 10 an unprecedented extent; and each Dor
rover, on obtaining an amount far In excess OF
his actual requirements, refused to release IL. The
bank was being rapidly drained OF its banking
reserve, and this was the moment selected by
leading contemporary for the Hippant remark, that
when the great Institution in Threadneede street had
parted with all it, notes Il would still be able 10 go
diScountng with the funds falling repayable from
day to day. l. the Times blind or does Il know that
the occurrence Of such state Of things would in
voye the stoppage Of half the commercial houses IN
the kingdom? And now for a word II sober serious
caution 10 the mercantile community. by the cou.
rage and sagacity 81 government an imminent and
great danger has been sumomted. The public
must now do their part towards the restoration Of
confidence. II was only when the Bank act stood in
the way. damming mp the supply Of money, that
there was any excuse for alarm. IL Il now placed
beyond doubt that the bank has plenty Of notes to
issue. Government have boldly yet most judicious.
y RETAINED from fixing any limit TO the amount OF
new notes Every holder oi approved securities
may obtain much a. he chooses to ak. There is.
consequently, no longer any public reason why
holders Of money should decline TO lend, for their
mi Il - Wi
free lenders, and we shall he greatly dsappoint-
ed II the excessively heavy applications at
the bank do not Immediately slacken. There
j. even strong ground for doubling whether the
provisions Of the act Of 1874 will be actually
infrnged. or government be compelled TO apply to
Parliament for an act VI indemnity. The resources
~ the country are az vast ever; the money in
hand s far larger in amount than at former periods
and trade u becoming contracted; the external
drain Of gold Is checked; bullion IL flowing in
freely from Australia: the American advices are al
together more cheerful: and the how Of soveregns
70 Scotland ought TO produce nothing more than