The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-27

tue ten years since ttt last fcNulsiVu VI 1911 Win
respect TO the commercial circumstances OF this
country In the ten years you have doubled your
exports and imports-(hear)-a In ten years you
have NOT added one bank note to your bank crcuia-
tion. (Hear, hear. hear hear) Thewhole bank note
circulation of England in lS4647-speaking from
memory-was about 40 900 900: and by the last re-
turn saw, which is about 1861 and circumstances
have since occurred in favor Of my arguments as
am informed the whole of the bank note circulation
of England, which was 40 600 900 in 1876 ~ was
39.O0O.Oo0 in 1850 Sir, all this proves that bank
notes are in certain sense form OF credit that
is really falling into desuetnde. We have heard
much with regard to tho influence OF the
bank notes on the commercial fortunes and
operations The truth is there is no doubt that
from variety Of ciIc umstances-improyed means OF
communication, the penny post the telegraph, and
| a thousand other circumstance require less
of this kind of circulation, even with your immense
| ly increased transactions. than you did ten years
ago. / hope the House will believe that, with the
! views have attempted to place before them APP
preach the consideration Of the act which has been
suspended illegally by government with no prejudice
| whatever. am not one OF those who suppose that
the disturbance Of the capital and credit OF coun-
try like England could ever be primarily occasioned
| by any arrangements which you may make IN law
for the circulation Of after all, limited amount of
the notes of the iBank of England. But it is i'm
possible in my mind, to resist this conviction The
act of 1874, which, after all was an act only to re-
gulate the circulation and the issue Of bank notes,
was act drawn up in Difference to those allacous
principles respecting issue which have so long and
l
arrangements OF that act are framed in Difference to
those mistaken views and in consequence OF the de-
ference to those mistaken views. exercise anaggravat
! ing influence upon commercial distress when it
| arrives. (Hear, hear) Sir, the great OBJ
lection TO that act is to my mind that it paralyzes
Observation-Disclosures which should at all times be
| active, and especially active at moment OF com
mercial alarm, becomes stagnant the very instant
that those circumstances have occurred. That act
applies to all circumstances. however different, ex
| sctly the same treatment. Whether you are
| T.. -.
ere dealing rih domestic drain, occasoned BY a
| panic the action of the bank is srdctiy the same;
| while, in the one instance, it ia perfectly
competent to control the foreign inconve
nience the very moment that there il an alarm,
instead Of encouraging confidence, the bank announces
that il is Itself the subject of terror, and occasions
and increases Me rery panic ,rhich ats iegiti-
mate influence Ought 10 prevent (Hear, hear.)
/ In closing these observations with respect to the
| bank would make one remark of a serious charac-
| ter. AS | hope that this committee on the act
| Of ls44 will receive its death blow from this
debate, l would express my. opinion, that
| gard to the management Of the I'D * which are
satisfactorily established by the evidence which we
have before Us. think it is, by that evidence, con-
clsively shown that in the first place the directors
of the Bank OF England really exercise no more con-
troll over the circulation of their notes than do The
members of this House. believe that what Is called
management of the circulation of notes by the bank
directors as MISSIONER and dslusion. (Hear,
! hear) Secondly, l think by that We have estab-
shed that the directors Of the Bank Of England have
| great duty to perform TO the nation as well a. to
themselves, and that Is by the policy which they
! extend to the management of their securities sub
ject of infinitely more importance than the circula
| ton of bank notes, and in the wise management of
which the wealth Of the nation i intimately CON
ccrned. II is in the regulation of their rate of dis
count, ii is in the discrimination and discretion tch
,cch Advances made BY the directors Of the bank
that beneficial influence may no doubt be exercised
over the fortunes Of this country. Thirdly. think
that IL becoming a national oh
| iect which statesmen ought to insist upon accom-
plishing that these should be in the Bank of England
| a great treasure al He command Of The direc-
| tors nth ,chich, tchen moments Of emergency
arise hke those ichich hare recently occurred shall
be in their pocer far 10 assist distressed commerce.
not by advancing capital but By the possession of cur
rency assuring 10 The commercial ,rorid thai there
shall be currency an ocfire circulating medium,
which shall be the medium OF exchange where real
property il concerned and that those interested in
the pursuits of commerce and in the possession of
real capital shall not find themselves in the condition
in which some persons of undoubted capital and
capacity have been recently placed. was surprised
TO hear that one of the most eminent men in this
country. one whom greatly respect. as ! ever re-
spect intellectual power Lord 0verstone, has de-
clarcd his opinion that discussion upon this subject
il inconvenient and inurious that Parliamentary
debate upon II should not be encouraged, but even
yreyented; and that VIC should rest upon the conclu
lions that we have before the House in the reports Of
our committees. am surprised that a man so emf
ncnt, capable of maintaining his opinions by his
by his tongue man VINO u, bcsldes peer OF
Parliament should give such an opinion upon the
proudest privilege OF Englishmen, and as believe,
one Of the beneficial influences OF which cannot be
, exaggerated or over estimated No; | hope the
time i arrived when we shall come 10 some safe
and satisfactory solution Of this long vexed ques
ton. But ! am sure whatever may be the conae-
quences Of tb' amendment am only acting rightly
when ] recor end the House to delegate their
functions no longer to select committees but 10 show
to the country that sent them here that they are
equal to the fullilment OF great public duties.
tCheers)
The House divided. The numbers were:--
For the motion ............-... 2so
Against '''.''-''' NJ
Majority for the motion ,. ,-.,.,....,..... l7s
In reply to Mr.. NEwDEGATF,
| The CHANCELLOR or THE EXCHEorER said IL
| would be competent 10 the committee 10 recon.
| mend any alterations in the act of 1s44 Whether
\ The government should adopt such recommendations
/ would be a matter for consideration.
| THE FINANCIAL CRISIS IN THE UNITED
| STATES IN A FRENCH POINT OF VIEW.
Iran saied from the Paris Coufttionnel, Nov - for
| the NEW yoHK HERALD1
The United States have passed through financial
storm without having been the least frightened by
| ID. They are accustomed 20 breezes Of this kind.
Since the commencement Of the century their boat
| has been assailed by dozen Of gales which would
have cast more solid vessels upon the coast, but
which have passed lightly over them owing TO the
| expeTtnes- 81 the navigators.
in 1893 the administration Of President Adams
having quarrrlicd with the French government, the
United States passed through financial crisis of the
seyerest kind. Ten years subsequently. whilst Mr.
Jefferson was President OF the United States,
general panic shook the commercial prosperity Of
the country. ~ was again disturbed by war from
1912 to lsl5. But peace restored TO the finances OF
the American Union all their elasticity Speculation
assumed enormous proportions; II was period OF
general fever and folly. The finances and commerce
of the country underwent another crash in ls26.
Recovering quickly the lesson Of sickness was soon
forgotten. In 1886 came relapse. Tho President
Of the United States, General Jackson, undertook
campaign against the banks which, after leading 10
: great many commercial failures ended in general
bankruptcy which was lcgalized w 1911. Finally.
fresh excesses 81 speculation chiefly in connection
with railroads brought in 1854 another storm the
precursor Of that of which the United States have
just been the theatre, and which is already subsidng