The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-09
ENGLISH PANICS.
PyRsr RUN UPON THE RANKS.

FIRST UPON THE RANKS.
This year memorable in the financial annals of
EngaxA ~ being the Of the first made upon the
banks 1t was fact only few years previously that
the regular banking house had been established by
Mr. Francis Child. Anterior to his time the goldsmths
before them the Lombards and the Jews had been the
repositories of private economies the Intermediates of
commercial transactions and the from whence the
crown derived aid its necessities. BY the year 1867
the banking business had attained considerable impor
tance extravagant habits Of the second Charles and
Of his rendering the trade most profitable
In that year however the mbecility with which the
with Holland had been carried on encouraged the Dutch
TO invade the British coasts and to carry their
ges far up the Thames Chatham The citizens
seized with panic those who held money deposit
suddenly called upon to it, and London witnessed the
first upon the bankers The however promptly
honored all the calls made upon them, and the King
having issued proclamation stating that the demands
the exchequer should be met usual confidence
at once restored.
l672-Anoher panic was created this year, by nfa
expedent resored to by Charles at the suggestion
Of Shafesbury, to raise money. The bankers were in
the habit of carrying their specie to the Echequer and
Of advancing the security of the funds, by which
thoy afterwards reimbursed when the money
levied the public By this traffic they got eight
times per cent for which either had been
signed TO them without interest, which they had bor
rowed at six per cent The King, in order to raise
TO crafty his mmoderate passions ordered the Exchequer
to be closed and payments TO be made. BY this arb
trary the bankers ruined and their depos
tors with them Thousands of families deprived Of
bread and the general indignation reached such height
that the King compelled yield. For the thus
seized upon six per cent paid oct OF the hereditary
excise during the remainder OF this reign.
lbky--Ihe n
started this year II established after diffcuy
Devonshire House, in Bshopsgae street, London but
did not remain long existence. Its machinery too
complicated and the risk Of depreciation 10 the value Of
manufactures too great for such institution 10 maintain
bold OF the public confidence.
rouSpAroS ENGLAND.
16e4-Thc commencement Of an era Of wild spccula
including the Darien Company and the great South Sea
bubble. Amongst the infinite variety Of projects TO
which the popular mania gave rse were, however two
which have conferred great benefits the English peo
ple-the New River Company and the Bank Of England.
The latter institution received charter OF incorporation
on the 9Th o July in this year The conception Of the
plan ON which Il founded Is attributed by
some writers TO Burnet, Bishop Of Salisbury and
by others TO william Patterson, the protector OF the
Bank OF Scotland, and the originator Of the la
ren Company. The immediate results of It's estab
lishment were 10 lower the rate OF discount foreign
bills TO per cent, relieve the government from bor
rowing at nsurious rates OF interest the public
rites, give life and currency double and treble the
and TO secure the success of the campaign Of 1895 and
subsequently the conclusion Of peace in 1897 Tho bank
traded on the deposits of ts customers and when first
established allowed interest for running cash DAycnant
complains OF this az being continual bar TO industry.
rHr srnEssios on SPECIE PAYMENTS ny rHs BANK op
16o5--Owing to various dficulties among others 10
those arising from the econage OF the silver the Bank Of
England compelled temporarily 10 suspend specie
payments. The coins had been diminished by clipping
and ming the bank had received the clipped money az Us
full value, and when the notes issued by IN exchange
came in there not sufficient specie 70 meet the daily
demand Had IL paid in full Il must soon have been
drained OF specie rcsored 10 the plan OF paying cash
at first in nstalmens of 10 cent once fortnight and
Afterwards per cent three months That the in
stitution not dscredited by this arrangement
proved from sealed bills bearing interest being
ceived by their creditors in lieu Of specie Other vigorous
were resoried 10 by tho directors 10 meet their
difficulties, and great the confidence inspired by
the prudence with which the affairs OF the bank were con.
ducted that received from the government great add
bonai privileges including an extension OF s charter n
ITO. OF tho rapidty with which bank stock rose in
lue have the evidence OF the fact that stock given 10
the proprctors in exchange for tes at fifty per cent
discount 10 1l2 per cent
Ies7--A proposal was made this year that the
Bank England be branched into every city market
town In England asd that the several branches be
counabe the general bank in London for the profits Of
their respective branches" This project have
fallen stborn on public attention. thoush there is no
doubt that would have saved thc coantry from many
crises. AZ later period, u will be seem the plan
was partially carried into effect
pASIc oArsxp Nv ANOTHER rnRRAr oy rsvAuov
lTo7A threatened invasion by the Preepder created
this another panic and upon the Bank OF England
for specie This movement favored by the minor
bankers such Sir Richard Hoare Sir Francis Child
however
of injnring that establishment, confirmed stI more
the esteem and Conscience OF the people When the
took place many of the nobility came forward with
offers Of assistance, and large additional were paid
in by persons who usually kept accounts there. The
bank in order 70 render is position secure made
call of 20 per cent on M proprieors, which, with the sup.
port that received from private individuals, enabled
easily 70 meet all demands.
17osThc charter Of the Bank OF England vas further
extended until 1732, and additional privileges were
granted 70 the corporation These svors the
of unsuccessful attempt at the invasion o the prersga
uves Of the bank by bubble company started about
this period under the title Of the Company Of Nine Ad
vennrers In this year the bank also undertook the
first time the circulation Of exchange bills.
iTo9.-The Bank Of England was threatened with
danger OF another description. During the Ssch.
cvercl riots mob set out with the settled purpose cf
pillaRng the bank. Tho Queen hearing OF their in.
tenuon with sclfdevoon and courage worthy OF ali
praise left her own person unprotected and sent strong
body Of horse and foot 10 guard that establishment Tho
ro'ers on nnong tna preparations had been made 10
17l3-Another run upon the bank caused by the dan.
rerous illness OF the Queen snd the rumor u an armament
for ,he invasion OF England by the Pretender being in
readiness 70 leave the French ports Her Macstys rapid
recovery and the authoritative contradiction Of the
ports regarding the armament once put an end 20 the
panic The charter ofthe bank again renewed this
17l4The dcss OF the Queen and the uncertainty pre-
vang regard 70 the future dynasty caused another
upon tne oank which lasted for several days Tbc ist
utlon wa aole 70 meet all the demands made upon n;
bank stock however fell from I2s 20 Iis
ipIne rebellion caused by the accession ~ the arst
george not having extended 10 England marked effect
uspquiisy was restored the Ministry and Parliament
with the aid OF that institution reduced the legal ratio of
interest from sir 10 ave per cent
11lssubscriptions or government loans FOR the
FIRST time received the bank In this year the Regent
dOreans established In Paris royal bank Of which he
made the celebrated law Director General. From this
period Laws cherished project-lhe grea Mississippi
scheme-begun " be developed.