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


We take from the NEW York HERALD of the 9th inst.
the following paragraphs relative the Bank of England
which we published that day in history Of the
"Panics in England" They will be found particularly in
tercsting just now
l6s3-The project Of national bank Of credit start
ed this year II established alter some difficulty at
Devonshife House. Bshcpsgate street. London but did
not remain long in existence It's machinery was too com.
pcaed and the risk Of depreciation the value Of
factures too great for such an institution 10 maintain bold
OF the public confidence.
FOUNDATION or THE BANK or ENGLAND
1694-The commencement Of an era Of wild specula-
uon which gave birth 10 multitude OF gigantic schemes
including the rarcn Company ana the great south Sea
bubble. Amongst the infinite variety Of projects to
which the popular mania gave rise WERE however, two
plc-the New River Company and the Bank Of England
The institution received the charter Of Incorporation
plan on which II was founded IL attributed by
writers TO Burnet, Bishop OF Salisbury, and
by others to william Patterson, the protector Of the
Company. The immediate results Of its estab
shment TO lower the rate Of discount on foreign
bills per cent TO relieve the government from bor
rowing at usurious rates Of interest the public
rites give life and currency 70 double and treble the
value Of its capital In other branches OF the public credit
and the success OF the campaign OF 1895 and
subsequently the conclusion Of peace in 1897 The bank
traded the deposits Of It's customers, and when first
established allowed interest for running cash. DAvenant
complains OF this being continual bar 10 industry.
FIRST srsrESsIos oT srssIE PAYMENTS BY THE RANK OF
ENGLAND.
1eet-Owing 10 various difficulties among others 10
those arising the ecoinage of the silver the Bank Of
England compelled temporarily to suspend specie
payments. The coins had been diminished by clipping
fling the bank had received the clipped money at its
full value and when the notes issued by in exchange
there not sufficient specie TO meet the daily
demand. Had Il paid In full, Il must soon have been
drained of specie rcsorcd To the plan OF paying cash
at drst In nstament Of 10 cent fortnight, and
afterwards per cent In three months. That tho
instituton was not dscredted by this arrangement
proved from sealed bills bearing interest being
ceivcd by their creditors lieu Of specie Other vigorous
me uer
difficulties, and great was the confidence inspired by
the prudence with which the affairs OF the bank
Quoted that received from the government great add
uonal privileges including extension Of ts charter
lilo. 0f the rapidy with which bank stock rose in
value have the evidence OF the fact that stock given
the propetors in exchange for alles at y per cent
discount rose 10 III per cent
ie97-A proposal was made this year "that tho Bank
OF England be branchcd into every city and market town
in England and that the several branches be accountable
the general bank in Londoni the profits OF their
pective branches" This project TO have fallen
would have saved the country from many crises
At later period will be seen, the plan was partially
carried into effect.
svcosD SUSPENSION OF srTcrE PAYMENTS ny TIE RANK or
17eTThs year witnessed another suspension Of specie
payments by the Bank OF England This measure, which
went into operation the 2Tth February, necess-
tated by variety Of The subsidies granted by
England foreign natonsthe duplication ofthe national
dcthe apprehcnsions of invasion-thc pressing
continually increasing wants o the government and the
gradual dmnuon Of gold in the Golfers Of the bank dur
ng the previous twelve months, 10 tho low figure Of
VI 2T2 600, all combined 10 render u imperative. Had
the been guided by the advice and circumstances
ol the directors this might have been avoided
Mr. Fox thus characterized ~ IN his place In Parliament
nFor the hrst time the revolution act done
which struck at the foundation Of public credit by sezng
money bclor gng 20 Individuals II the opinion
Uf many the practical of the time that the bank
might have escaped difficulty by increasing instead OF
diminishing circulation. Mr.. Henry Thornton stated
the Parliamentary committee that ut tho want OF
bank and not of guneas that was felt" The con.
traction preceding the suspension OF specie payments
had very great On the 2bh OF February the notes
we're reduced fourth &C the which they stod
the beginning VI the year II must be remembered,
however that the directors were ~ acrucal position
Between the advances demanded by government FOR the
safety Of the country and the large discounts required FOR
the extensive mercantile operations carried on they we're
reduced to the necessity of taking step which must
have cost them many painful struggles.
In this year act passed authorizing the issue Of
bank notes under f5 and large quantity Of dollars sup
Piled by the bank and stamped by the Mint put in
circulation and taken in exchange Tor the notes Of the
bank The latter soon, however, fell into disiayor nd
on the 3lst October we're called In.
The report Of The secret committee OF the House Of Com
mons printed In November, shows the condition Of the
bank ON the llth OF that month. Outstanding demands,
fT 90 funds for dschargng the (uot including
ell 6S6,S00 due from governmcnt), Ell tlS460. Not
withstandng their aaluent condition. however, the bank
restriction act passed In May, prevented the directors
from revertng TO cash pay ments
ls0o-Ihe bank charter again renewed this year
on consideration q further loan q three millions ad
Naneed 70 the government for six years without interest
with the right OF claiming repayment any time before
heexprauon of six years consos should be above
cent per annum the repaid for the time that had
TO lapse In return for this payment they we're 10 enjoy
amcog other advantages the privilege holding the pub
lie balances in their possession.
1s02-CoScusion OF the peace Of Amiens. An act was
passed in April Of this year further restricting the bank
from resumng specie payments before the LIST OF March
1903
1s03.-The Bank q England lost upwards Of E30o 900
this year by the celebrated fraud in the transfer OF ex
chequer bills, committed by Mr.. Robert Astett, It's
cashier
Another bill passed further extending the res,ric
al
dehnitive treaty of peace In the discussion on this
measure the Chancellor Of the Exchequer remarked
"That was very much 10 the credit Of the bank that