The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-26

The Bank OF England Indemnity BiIl-The
London Money Market-The Crisis on the

The Bank OF England Indemnity BiII-The
London Money Market-The Crisis on the
THE GREAT CURRENCY AGITATION IN EsGLASD-THE
BANK OF ENGLANDs CHARTER.
From the London Times (Cty Artcle) Dec. IL
This is the time for great practical authorities to
speak out. The question before Parliament and the
world is whether person who makes contract to
exchange one article for another at certain date
should be held bound to fulfil IL; or whether, II he
has promised ounce of gold for four tons OF coal
or any other commodity, he should be permitted to
substitute something else If he finds that gold has
become scarce and the bargain inconvenient. Ac
cording to old fashioned notions, each mans intu
tive perceptions would have been supposed the best
authority on such point but the interests of
trade the expanding requirements OF the com.
the necessity of upholding credit" are
phases that have thrown all simple ideas
SO completely out of sight that nothing but
everlasting discussion and an abundant use OF all
those great names that are supposed to embody the
lights either Of official general experience can now
help to show us where We are. Il have the high
authority of former Governor of the bank" says
one. 81 make such and such statement on the
authority of eminent partner in discount firm,
says another and so ON through exChaneellors OF
the Exchequer down to some unnamed but highly
influential business man in provincial town, who
may have happened that morning, in advising the
| consignment Of q bale Of goods, to have added
postscript expressing his ideas of the functions Of
currency in general IL people are TO bow to autho-
rlty, the advocates Acl nhu Dctter
retire The balance in that respect has been against
| them for some time. They sustained a heavy blow
last week when an experienced merchant at tilas-
gov, whose credit IL so high that he has been allow
| ed To overdraw his amount with the Western Bank
by f6OO O0O testified to the prevalent want of bank
accommodation. But yesterday evening there wa.
| a final Encouragement. Mr.. George Hudson, the
| member for Sunderland, pronounced against them.
| Few men" he reminded the house, perhaps need.
lessy, have had more experience of money matters
than have" He remembered tho former panic and
the difficulty then encountered IN obtaining advances,
and that on that occasion, when he wished to get
loan fl00 600 exchequer bills, he had absolutely
been told that II he wanted To realize the amount
he had better submit TO heavy loss and sell them.
Since then he has Thought a great deal on the
subject Ten years have passed and in the inter
| val he has ripened suggestion which he bestows
| upon Parliament and the country II is that power
should be given TO the Bank OF England to issue
notes upon bills under discount TO the extent Of one
| third their value" Surely" he added, bankers
bills and the bills of first class mercantile houses
worth 6s. Sd in the pound" That, perhaps depends
upon circumstances. Messrs De Wolf X Co. Patti
son Co., Macdonalds, and variety of others
all distinguished firms little while ago. But IL
would be pity by small cavils to interrupt the re-
ception OF scheme 80 grand in its simplicity. All
that is wanted IL that its author should explain what
he means by saying that the power to carry il out
should he granted 10 the bank. Already they have
the power not only To advance 6s Sd but 20s in the
pound on all bills they may think proper TO take
the only limits to its exercise being such may be in
terposed by their being fasdous as TO quality. To
do any good, therefore IL is evident the system must
lie made compulsory. Either II must be understood
that all traders carrying on business OF n certain
magnitude shall have the Gs sd per pound furnished
whatever paper they may present, or some board
must be constituted free from the iliberal prcudccs
Of that institution TO decide upon each application.
| In the formation Of such board there could be
| difficulty, and Mr.. Hudson might confer on the
country the benefit Of his vast experience in every
thing relating 10 matters Of accommodation and ac-
| count by consenting to act az chairman. 49, The
no agf bepu
| blamed in some quarters for not standing by the
| law. But what government would have dared 10
stand still and let the people starve To carry out
principlcfn Would they fear that, under the vigi
liant care Of Mr.. Hudson, anything would be allowed
| 10 be sacrificed for such an object.
/ THE IRISH STOCK BANK SYSTEM AsDITs MANAGEMENT.
| Prom the London Tines, (Oty Article) Dec. lo.l
The dealers in deposits and rediscounted bills may
| rejoice. Parliament and the government are stiIl
| disposed 10 uphold the system which, II not the
cause Of their prosperity, has at all events been
singularly co,ncdent with T. The debate ., on
| in the trade OF banking-which, in fact, simply
| involved the question, whether the mercantile
| classes are better judges Of their own interests
| than either the House Of Commons the govern
ment terminated exactly as had been anticipated.
The doctrine that freedom of contract cannot in all
be safely allowed In England, and that Parlia
ment should still retain In ts hands the patronage
Of granting the privilege Of limited liability 10 such
banking concerns whether home colonial, may
contrive 70 find favor with Il, was not exactly
expressed in direct resolution; but the motion Of
Mr. Headlam, which would have been tantamouDt
TO an opposite avowal was got rid Of by vote OF
lis TO Al The public already aware Of the
grounds on which the compulsory introduction q
unlimited liability into all banking contracts s CON
dcmned. They may be resolved in fact into two
axiomslst that Il is against all rational views Of
liberty that government should interfere 10 dictate
the terms upon which alone one individual should
place confidence in another; and, secondly, that
all laws should be based on coherent principles
il IL absurd 10 prohibit limited liability in
any trade connected with the commodity called
money, when in the trades connected with every
other commodity the public arc allowed freely 10
exercise their own judgment. There Is no occasion,
therefore, 20 enlarge upon these points. But most
people will like to be told in few words the cons
deratiOns that urged for their being set at
nought. One gentleman. who seemed 70 think there
no getting over the fact that If the choice OF
limited liability u permitted in every other case OF
trading, II should in consistency also be allowed In
that OF banking still contrived to do good service
against the cause Of commercial freedom from 60
yernment trammels by expressing extreme distaste
for the thing itself lie thought that the operation
his reason for that opinion was, that it pro-
tects the public, who know nothing .of the
affairs of the bank, while il throws the onus OF
everything on the shareholders, who have cogn
zancc and direction over the conduct of their
directors. What did he mean by "the publicg"
The only portions of the public interested in
the matter are those who may choose to
have dealings with the bank, and the simple
question IL whether IL il not quite a. much
the duty Of these persons TO ascertain its standing
and character and constitution before entering into
transactions with it-as u is that Of some distant
indyidual-a goyerness or a clergyman perhaps
out Of q body of thousand shareholders. More
over, as these persons need not trust the bank
unless they choose to do so. why need government
Trouble themselves specially TO protect them from
the consequences Of voluntary acts, when they take
no similar steps 10 prevent any old lady from
investing her all in Venezuela deferred bonds
or the shares Of the Golden Wheal Mining
Company just opened up in the middle q walesl