The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-09

Real del Monte. 70 $50 pm. 1850 pm
United Mexcan,.... 10 g IS pm. 1855 pm.
The subtraction from the bank Golfers by November,
1875, Of seven millions and half, resulting from this
spirit OF adventure and the unavorable character Of
foreign exchanges led 10 terrible panic Some Of the
banking houses the city and numbers in the provinces
fell Whilst the Bank Of England without the issue Of
single pound note curious to say the country bankers
eomc Of whom were mere retail shopkccpers, had de-
luged The provinces with millions AT such time Of
course, these notes were next TO vaueless Tho dis
tress caused 10y this state of things heartrending
There was literally says Mr. Francis, "a whole
IN the face, unable 10 procure it, nothing but
gold would be taken. The agitation of the city
ceeded everything that had been Witnessed for =
century. The funds fuctnated violently. Tho usual
Channels Of credit stopped, and the circulation OF
the country completely derangcd The gloom spread
20 the Exchange Exchequer bills fell sixty five shil
lngs discount and the brokers closed their books and
fused 70 engage in any transactions whatever The Bank
o England proved itself usual equal 10 the emergency
Within the short space Of three weeks doubled its dis
counts and made advances 10 an immense amount ON de-
posts Of bills Of exchange and even OF title deeds SO
great the demand made the Bank itself for god
from the llth the nth Of December, that doubt
seriously entertained whether this institution would be
able 10 stern the torrent The directors had however,
determined 10 pay out TO their last guinea"
was the merest accident that saved the bank.
When closed its doors Saturday December II 1t had
according the official returns, only 81 O27 900 remain
ing in its ccllars-accordng 10 Lord Ashburons pamphlet
only few thousand pounds In this state OF things the
incidental mention of there being box Of fl notes ready
issue suggested the OF safety. Permission
obtained from the government circulate them and this
Mr. Thorn,ons declaration in i7s7 that it was more the
want OF small change of well asccrtaned value than
necessity for gold that felt amongst
the holders Of small notes. These pound notes .
saN Mr. Harman worked wonders. As far rs my judg
nf goes they saved the country Within week from
their issue the peril had passed away The government
in order 10 afford additional relief TO the money market
gave directions for the purchase by the Bank OF Exche-
quer bills to the amount OF 81 000 repayment to be
made within four months
1s2e-By agreement with the government this year the
Bank of England consented TO give up its exclusive priv
legcs to the number Of partners engaged in banking
oep within certain distance (65 mes) Of the metropolis
OF the kingdom bill passed in February TO proh
bit the circulation, beyond the 5th Of February 1929 of
ali promissory notes payable TO the bearer on demand
sued by English bankers and stamped the 5th February
1926 or previously. The notes OF the Bank OF England
were however to continue 10 be circulated though stamp
ed up the 10th Of October By the banking coparnershp
bill country bankers not allowed to issue pay any
bill within the prescribed limits at shorter de than six
months for less sum than ESQ Strict provisions
also made for the registration and individual liability
Of all the partners.
ls3o-Ihe interest ON the new four per cent stock
which had already been reduced from five per
again reduced to three and halfhence their title of
New 3R per cents. In November of this year feel
ing Of political discomfort occasoned by the unpopuarity
of the ministry led TO serious riots and collision be.
tween the civil authorities and the mob. Preparations
for defence made at the Tower, the bank and the
magazine IN Hyde Park; IN presence OF these demon
STATIONS the courage Of the rioters cooled down and
they dispersed without having done much damage
The financial position Of the bank from 1880 TO 1882
is thus described by Mr. Palmer in his Causes and Conse
quences Of the Pressure the Money Market-Thc po
the 81 and 81 notes in England and Wales had been to
maintain their securities AZ nearly as possible ut fixed
and to allow the contraction OF the currency ef
cced by the return Of bank for bullion gradually
proceed until the value Of paper money remaining in cir
cuaton was SO far increased as to occasion thu return of
that specie 10 the bank which might have
been exported, and thus 10 replace the currency
upon level with that Of other countries That system
worked satisfactorily and without any forced action
part Of the bank in contracting its circulation"
last Run occAsIoSND POLITICAL CAUSES
ls32-In this year occurred the last upon the bull
81.
feat Of the Reform bill by the OF the pocket
boroughs, the excitement of the general election which
followed the passage Of the bill in the House of Commons
by large majority and IT, rejection in the Lords, the
riots ri BRISTOL and the attempt form ministry under
Lord Lyndhurs wrought Up the popular mind to pitch
Of frenzy which drove TO the widest excuses.
luton seemed impending and preparations" says
writer, "were made for great public tragedy" The
monetary Interests Of course felt the shock For week
the Pank OF England sustained a run upon it, specie
which was reduced 10 "a 919, 600, and II soon became
questionable whether the demand for gold would not drain
every bank In the kingdom Under such circumstances
the only alternative left the Sovereign to recall Earl
Grey This at satisfied the public mind and restored
In this year Was passed the bin aboshng capital pun
isncnt for forgery, except IN the cases OF wills and
Tewers OF neutrality-suspicious. that have never
been acted upon In the discussions 10 Parliament
this Mr. Nicholson said-sForgeries q the
small notes had made alarming progress and the prac
tees 81 government against France and America
showed the mTossbihy OF resisting the effects OF for
gerry. They bad been encouraged by government, and
courts ~ usce had said that 10 depreCae the
credit Of an enemy by forging its paper money q
moral act 10 the report o. the Select Committee the
condition Of the Bank OF England which preceded the
newal Of Ne charter stated that IN addition To the
surplus vested IN the hands IL the bank itself amounting
" 81 500 oce the capital on which interest was paid to the
pTopetors and for which the state debtor 10 the bank
unlimited 20 fl4 ,553 COO making less a than.
eli sss 600 over and above all Il. liabilities.
1s33-Rcncwa n the bank charter for 81 years from
August L 1854 Amongst the important features
Of the act provisions for the payment Of
ienrt ~ NE ae que rum ,he pubic % nc bank Win
proportion for the repeal Of the laws restricting the
interest ~ money 20 per cent so far as they affected bills
81 exchange not having three months 10 rum for prohibit
ing banking companies composed &C than part
rtfr within sixty miles al london from issuing notes
rsybc on demand and for securing weekly accoun, ~
c bullion and securities the circulation and deposits Of
the Bk 70 he forwarded ~ the Treasury and
pubshed quarterly For these privileges the Bank was TO
pay f12o 900 per annun be deducted from the
owed for managing the national debt
"A d-clarstory cla,se added by the Chancellor 81
Tire Frchequer which, created the part
ef tn directors and esteemed partial invasion Of
thcir prvsercs u was 20 this effect That ANY body
a,.isne. "a banking n London " within IS miles Of H.
provided sreh tdy Do not borrow, owe, take mp IN
PRE- and auy sum cr sums ~ money on their bills notes
Non hs horn wing m er = tnd@r tins leclara,a only
= hsnE Of dcrosh inErh, DC estab shed
G. ps.rsrriervryr JO~r sTo~K COMPANIES LONDON
1854 TIE hark th year nlka~e,l an interest IL two
~et che baarces ~ the Ei In,a Company an
rIcep,er g the Is,,ertc iet tcrn tcmsn in iheir pos
me new for rer e~ris were reduced
The snrpeps,cn ~ payments wy Nr Richard Rakcs the
the baskrupt ist crested siry1n sinon Tie arnui
tsnts and ernaN and bnlers however blow over
ANhcrFh ~ one time thrpeneltc assume the features
o. ~. hersi Jpnc ~ (, 5t.t7us Ica 80
GTsi war aso Witnessed tho commencement, Il banks
In The metropolis With than ~ prrtnrrs The Lou.
view che sirr ~ fhis nafrr~ tsNttd and
fs~sr perss<o,s be~n sended with tfc most oorn
rfcts suc~e~s Tht With Sustlerpblc orio
fhelr os-s the Nv rs,e bankers decbineto anor their
Sf~rxs W aft~ud AZ III, Wearing House., euf the Sank of
Eng and rcfosnf them drawhg s,'cuurt 90 Ga
+ o. l,S ~ w no "a Ma
arcea ~ very low amouf4f6. y5e oso--o,.sng ID
sa 10 ,be Spanish ruguess lcans and stsd the
taken Wv General jackson 70 establish netaiD
svv- ev~y IN che unH~s Stn,es The denand tessed IN
u-y and The Directors Increased teir crculson 10 the
Of I've haons from August 10 the scso n the
year. ~ ~ .s'si HaNtea
z npssrc op Isss-sr srrIr~s Avn pr~rostBFS,
lsas me ~ tie tcrradhg sIirw ~ speculation.
wh<h msucsted Fsrf rage fer rRilwpy etthrpssAes
nnd ,ea nc Nsrhs shaeanshs yearto make thenseyes
srreufy tcit VI gfder project HscK hc Bsns raised
W. rs,e y lseres 81 July % 81 and ~ st,os6