The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-08-05

The Euglish Bank Acts.
hHPoHr or THE PARLIAMENTARY COMMITTEE
CAUSES AND CONSEQUENCES OF THE FIEANCIAL
CRISIS OF lS57-PosITIoN OF The BANK OF ENG
Iron the London News, July Al
~, Yec Yer We Issued report Of twenty five pages
Der Last 70 inquire into the operation Of The bank acy snl
into the causes the recent commercial Distress and
nve.tsase how far had been Affected by the law. fr
regulating the issue Of bank notes payable on demand
CHANGING 81 the commercial history Of the ten yeees
which have elapsed since the last committee at under e
l647 three important circumstances have arisen
the question referred to the present oommiitee-nams
posation OF gold and silver scale unknown in hytosy
since the period which immediately succeeded the ara
% % %
for tho and distribution Of capital but 70 the Close &
1857 the Bank Of England had connded under the
1874 TO conduct It's business without difficulty In 6ep
TENDER the first tdings arrived Of the bank crsh h
America, and in October there were numerous failures
here.
The report them reviews the chief failures, dwelling
the st0ppage Of certain banks and att outng fore
sight and vgor 10 the proceedings Of the Bank Of Eng
land upon which everything depended Messrs Quilter
and Bali, the accountants assign what appears 70 the
committee an adequate the crisis. "AvAiag
which have now been finally closed to illustrate tss
transactions Of 1857 which still appear in estimate and
are therefore liable 70 correction they ascribe the csa
great abuse Of cred. And overtrsanr fev
notice also this difference between the two periods Many
wealthy but had long ceased 10 be 40 ihose of SS7 M
suh fen exceptions, suer possessed adequate capital BIT
carried on extensive transactions by fictitious credit az
This the com mitec proceed TO rive nstances
an Instructive example how readily misortunss are q
the time attributed BY The suffers aud others sympashs
inc With them IN the oneration ar the satntarv
msnts which msfortnnes unon full rsvew az Ali Ia
circumstances attending them is obvious that no wis
~ Of tha
have nrsveniea The nsy,cnsys nj thirty houses vSic
1870 - los sS P To- Ss,i, =. ra co non
tSeo IN LOO. snow 'neis aegregass %
IN rovide for mount "a fs ols o0o AVID sssts
f2 3l7 600
a. -,
Deslues ne es whcn arose rom me suspension q
Ameoss rem"'anoes' sno'oer GLASS OF failures u da-
The nature Of these transactions the system or open
credits which were graned-hst Is, by granting 70 per
som sDioau noey 70 IRA. upon tae mousse IN Eneiana
an eAsens 90 nau uoen az ecu upon msmi
tnose oraiis were tnen negoea upon tne foreign ex-
changes Ano ouno heir way 30 WIN tue under
snndng That ney we're 70 De pfovaea lor by mstur ty
They were principally provided for, not by staple
ooiaoo ou' ny o'uof ohs sus woro son' W t4ke tno0
up There acds no real basis IN the Transaction but tie
onoe agar ods Medns 0 rdENse temporary commaNd
cotdt |or ne c"Ioe"tce the saototdudeS ccnceTed
merely pare commission nangiag upon IL; q bakers
COMMISSION WAS al tnat the houses 10 EnglAoo
got upon those Nansactons, Win the excepaoe
Oh receiving sne consiknmens prooa ny o.
eVous iIom oerta pArues, ~ncn D'ousu' mofcnsote
commission upon mem put taey FORMED very small
amount IN conPhrncI VIII the amouat OF creoiS wnico
Das nnder oogGions 70 the World 70 ne ssent OF aboa
1svV,ovo, 10 ocPuot az e to@ t'me tdkia@ 81 ek ~ds
unaeT 1lVvoo; Ms business wa omsny me granting OF
upon Sreos G., sno nouse Pefmeo useu 70 DC dfswn
upon py ioregn houses WITHOUT any remittance previously
or contemporaoeousy MADE, nui vito 90 ecgasemeut
tnAt tnoua DC mAoe before tno acceptance arrived ~
mAtuIny IN nese cpes tne lnaucemens - give tue &C
ceptance Is commission varying rom y u - per
cent The accepances rendered available by being
dncounted as viii appear hereafter wnen the affairs u
tne banks wnch aeo com under cur notice. inc obvious
enec' Q! sucn system nrs unaay 70 enhance, and
ues IN 1901 tcAt iAi o prices wncn according 70 NJ
NesVe seeing people MAJ sntcipsteo actually occur
reu ladies nave peen put Ia Dy more nau one OF the
exnehng an average fail oil 20 or 30 psr CENT
many instances uucn more upon toe comparison OF July,
what elect such sl must have ueon houses ~nica mad
accepeo ps, on the security OF produce consigned 10
capital
The Liverpool Borough Bauk the Western Bank OF sco-
land the Northumberland Durnam BAnx and two bill
second time IN isol-theee i've houses" say the COM
mntee stef caerhg INTO details more tina.
any 0ners 70 sne e9mmerca disaster aad d,screat o.
100. mpossoie iof your COMMITTEES 10 attribute the
failure OF sucn 70 any other cause than 10
sne OWL inherent unsoundness-ne natural the ineviA
ole result tnef own misconduct 1hs ws hare traosd
an under ph,ch extensive fictitious credits hare BEEN
oeuea ~ Menns acoommodanon ous ana open 1edsts,
ice o. on, soS Country bsnss me i ~
reoseounamg ,nem Win .ne oi,l brokers 10 the Lonoos
n no, upou 'no Srea, ~ 'ne psnn sone "rou' reo-
So au.y y. VIC os oser rae .eu,s
ooo, cnes on tne oeiei tnas we oAnk suspend ana
no Dill sre nov me. AZ IN NaIy ne VIA oosan IRON sne
hS , ny ~ anu susn :, V sss - ~. save
,sLsn ~ ,ha g., 49,, .i aI uS ~eos ~
,hon ,,rS a. s .. " 'ie rei'. y, .aops
re xs.i n,sr,n =, a. f ,, .,o quoea W suow ~
,rara .xo.r.ae 40 s.s., 'scis Ns vie
w , ~. M =, oommercls crea' ana !, connrm
la co,,rnnav sgsoss ~, y ~ :. a y, a. oou"
| nrov,senoe -e' Ne S"A'ef1'"'eo "'o"" ""
~ a., sts,,,~ Thai, h.,,., ,,., ........ .,, .
,,c,ass,.s snoosisass ,,l s % mo
ohrcrs !. thss wi,nou, the ,n,c,ro ~ a.
sove,nrcns he a,recso,~ ~ ,ps .ne ~ Wv
esovcr whs.vcr n erceed IN tsc,, Sane. 80 In, ~,
rrs.a ny he co,o AZ 49, ~ w ias l.n
f.nes s'yvan 10 ar nra.an, df.e. ~ sasyso sne ev