The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-25

had abused the discretion gwen il with view to its
own private profits"
lSO7The bank dividends were raised from 10 10 per
cent free Of income tax, at which rate they remained
until 1872.
lSos-A revision OF the public expenditure having
been recommended by the Chancellor Of tho xchequer
the bank agreed 70 Withdraw E600 from the unclaimed
dividends for the use Of the public make economy
and TO advance further loan Of f3 900 900 the State
the security Of exchequer bills 70 be made payable
IslI-EGorts were made by Mr. Horner and others in
Parliament to bring about resumption of payments in
specie Lord King distinguished himself by refusing to
receive the rents Of his estate in the bank issues To
meet these attacks the currency of the bank Lord
stanhopes act was passed. declaring il illegal TO receive
give than twenty shiings for guinea, or
less than twenty shngs for one pound note. In the
discussion upon this measure Earl Sanhope said The
bank Of the bottom planks of the ship Of England
and woe be to US il we permit il 10 be bored through
At period in this year the market price of gold
touched f5 lis. and the bank note sunk TO las.
1614-This year c0ncocted and carried into
ton the celebrated stock exchange conspiracy TO crcu
late false report Of Bonapares death and Of the entry
of the allie into Paris with which the name of the pre-
sent Earl Of Dundonald Ord Cochrane) painfully
and is to be hoped enormously associated. or the
tonsive character of this fraud some idea may be formed
from the fact that the Saturday preceding the Monday
which the deception attempted consos and omnum
the extent Of 900 purchased for various
individuals many Of whom were seriously implicated.
1sl5On the restoration Of peace the bank restriction
was continued by new act until the 9Th july 1916.
1878 THIS wear and the last were perods Of great com
mercal depression During their continuance there
CURED t,ol4 bankruptcies, OF which SO bankers
The profits acquired by the Bank Of England from the
strcon of specie payments enabled TO make this year
addition Of twenty five per cent 70 the capital stock Of
each proprietor By act of Parliament the capital Of the
establishment increased from ell ga, 400 to f14
$50 600 at which amount remains For this priv
ege the directors were compelled to the government
bonus Of about eighty thousand pounds in the shape Of
loan without interest.
1s17-The Bank of England announced that after the ID
OF May this year. would cash for all its notes of
and pounds prior TO the LIST Of January
1916 exchange them for notes Of the value
The confidence Of the public however, great that
scarcely any of their notes in further notice
was issued that after the LIST day OF October they would be
ready to pay gold for all their notes dated prior 70 lst
January 1877. The bullion spectators stepped in,
took advantage OF the exchanges and than five
millions to the Continent Parliament was compelled to
interfere and act passed restraining the bank from
pay ing any more Of their notes.
lsis.-Ihe value of bank paper, which in 1916 was
about l6 per cent below that Of god this year to
within n per cent Of bullion.
ls19-Passage of Mr.. Pees celebrated currency bill
BY this bill provision made for the resumption Of
specie payments by the bank and all the former acts
restraining the expectation of gold, prohibiting it from
being melted, repealed This act the naugura
tion Of the great principle enuncated by Mr. Peel that
the National Bank should always be prepared pay spe
Gle for its notes on demanda principle which he subse
quently worked out in his bank charter OF 1874.
RESUMPTION SPECIE PAYMENTS ENGLAND.
lS2l.-After quarter of a century the bank recon-
menced specie payments being year before the period
ls22-The of interest fixed by the bank at four
per cent
lS2o-blk stOck year sixteen per cent
sequence Of an unexpected reduction Of the dividend from
| five 10 -four per cent.
PANIC OF lS25-sARRow ESCAPE or RANK FROM ANOTHER
SUSPENSION
1s24-5-Dscovory of the celebrated Founteroy forge
res This period also remarkable for the spirit OF specu
aton which again infected the country. Joint stock
panes Of every kind put forward and eagerly taken
up. In 1924 and 1925 no less than ga new made
their appearance To the prospectus Of company
attached the OF prince Of the blood another that
OF tho Archbishop Of Canterbury Mr. fooke says
the quantity OF gold expected from the South American
mines was great that many well informed persons
acted the belief Of diminished value in gold and silver
in consequence.
The subtraction from the bank Golfers by November,
1925, Of seven millions and half, resulting from this
spirit Of advenure and the unfavorable character of the
foreign exchanges led TO terrible panic Some Of the FIRST
banking houses in the city and numbers in the provinces
fell Whilst the Bank Of England without the issue OF
single pound note curious 70 say the country bankers
some Of whom. retail shopkeepers, had de-
| luged the provinces with millions Al such time, Of
course these notes were next to valueless The dis
caused by this state of things heartrcndng
There literally" says Mr.. Francis, ga whole
| population, with food In abundance staring them
the son lace S unable to as IS pSh1s s s but
ceeded everything that had been witnessed for
century. The funds fuctuatcd violently. The usual
channels Of credit stopped and the circulation Of
the country completely deranged. The gloom spread
TO the Exchange xchequer bills fell 20 sixty i've shl
ngs discount and the brokers closed their books and
fused 10 engage any transactions whatever The Bank
Of England proved itself usual equal 10 the emergency
Within the short space Of three weeks doubled It's dis
counts and made advances 10 immense amount de
pess Of bills OF exchange, and even OF title deeds. SO
great the demand made the bank itself for gold
from the llh 10 the 18th OF December, that doubt
seriously entertained whether this institution would be
able TO stem the torrent Tho directors had, however,
determined TO pay out 10 their last guinea
was fact the mercst accident that saved the bank
When closed its doors Saturday, December had,
according TO the official returns, only 81 OF 900 remain
ing in it, celars-accordng 10 Lord Ashburton's psmph
let, only few thousand pounds In is state g things
the incidental mention g there being bor @ one pound
obained from the Government b circuats them and
this pat stop % The run, thereby proving The correctness
oi Mr. Thorntons declaration in 1897 that Il was more
the want OF small change Of well asceraincd value,
than necessity for gold, that was felt amongst
the holders Of small notes. +" These pound notes."
ment goes, they saved The Country" wthna week from
their issue the peril had passed away The government,
In order to afford additional relief 10 the money market,
gave directions for the purchase by the Bank Of Exche
bills TO the amount Of 900, repayment 10 be
made within four months.
ls26-y agreement with the government this year the
Bank Of England consented 10 give up It's exclusive prvi
egcs the number OF partners engaged In banking
cept within certain distance tts miles, OF the metropolis
II also agreed 10 establish branch banks In different parts
of the kingdom bill passed in February TO proh
bit the circulation, beyond tie 9th Of February 1929 Of
all promsory notes payable 70 the bearer demand Is
by English bankers and stamped the 9Th February
1926, or previously
nASK CHARTER OF is44-u BULLION REPRESENTATIVE rRIx.
1s44-This year, in renewing the bank charter, Sir
Robert Peel made several important notifications in H.
The chcf features Of the at that restricted
the bank issuing notes beyond the four
teen millions 10 which was ordinarily limited, and that
provided that every note issued beyond that sum should
have ts representative In equal amount Of bullion. BY
this bill the banking and issue departments scparat
ed and various other alterations were made In the ar
rangcments and machinery Of tho bank. The govern.
meni in the last clause reserved 20 itself the right OF
repeating all privileges OF the bank not abolished by this
act uton twelve months notice being given al any time
after the LIST Of August 1855 II should also be mentioned
that the act granted 70 tho country banks the privilege Of
drawing bills payable demand within the sixty five
miles limit at loss than six mouths date.
THE srHTSsIos of 1861.
Gee the above telegrsphic despatch