Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-09-20
Financial Parallels.

One Of the favorite methods Of the English
press at this time, when they wish to touch
the " raw spot" OF American feeling, is to
speak Of our financial course in this war, as
something insane and unheard Of. The sus-
pension OF specie payment in 1861 was met
with q howl of derision the issue of legal
tender was treated as il such mad measure
had never been heard of in history and the
increase Of paper circulation, with the depre-
citation consequent, the rise in prices and the
active speculation, were detailed in London
journals, with the exultation with which
man might regard the sudden and marvellous
ruin Of his worst enemy. One would think
that no Nation, before the universal Yankee,
had ever suspended cash payments, or carried
on war with paper money, or speculated on
an inflated currency, or had supported heavy
debts BY means Of taxation and customs.
When New York proposed topay her foreign
fund-holders in deprecated currency Ia
terly needless and unwise,) a general cry
arose in the Tory press of England, at
Yankee dishonesty" Repudiators was the
mildest epithst upon US. 1t would be sup
posed that no European State-least of all
Great Britain-had ever paid foreign fund
holders in deprecated currency, but that
such unexampled knavery was reserved
alone for Americans, and those Of the North
ern States. And so profoundly ignorant are
large masses Of the English public, even of
their own history, that we have little doubt
many respectable Englishmen think our
financial course as new and original as il is
disgraceful.
Any American of common reading knows
that no long wars have been carried on with
out paper money; and the course Of this
Country in preserving its National life, has
a sufficiently exact parallel, financially, in
the course Of England, when seeking to ruin
Napoleon. For eighteen years Great Britain
suspended specie payments, in her des-
perate struggle with France. Bank Of Eng,
land notes were made, in effect, illegal
tender" by every person beingprotected from
arrest who offered them in payment Of debt,
and by the bank being guarded BY law from
any suit for non payment of its notes. For
eighteen years there was thus in Great Brit
ain an inConvertible paper currency. From
1897 to 1915 the Bank of England tripled its
circulation, and the country banks increased
from two hundred, in the same time, to nine
hundred and forty, or almost five times. The
depreciation was, of course, enormous, not
shown so much in the price OF gold, which
only reached Al in 1928, owing to causes
which need not here be specified, but especi-
ally in values-fl in paper became worth but
los in 1918, and according to Doubleday fell
to Is or IS, that is, depreciation of nearly 70
per cent. The price Of wheat rose from 53s
Id quarter in 1877, to l25s I'D in 1872; oats
from les Cd to AS; wool from IS Sd to los.
The rent of arabic land increased from fS8
IS Sid to the hundred acres in 1870, to fl6l
lbs lid in 1872. But unlike America, no in
crease of prices arose in England from dimin-
ished labor on the contrary, labor was sup
piled in abundance and wages did not rise
with other values; the final rise being only
about 20 per cent. in many parishes.
In this deprecated currency, worth 40 or 30
per cent. below what the foreign fund he lders
had supposed themselves pledged to receive,
did England pay her former creditors. 1ndi-
viduals, of course, complained, but it was
manifest she could do nothing else. and this
Reputation has never, we believe, been
thrown in her teeth. The enormous volume Of
paper money, amounting, according to the best
authorities, TO nearly $50 600, 900 in 1915 nat
urally stimulated speculation and extraya-
gance to the highest degree. and left its bad
effects on the national habits. 1t served
also las it has done herc) to stimulate
some very useful branches Of production
Still, despite all the initiation, and with
public debt in 1915 of some SO, zoo, GOO, 900,
England resumed specie payments within
four years after the termination of the war,
and began a career Of prosperity which has
made her the richest Nation of the world.
The financial experiences Of America are
no new thing. They have very nearly their
counterpart during their struggle Of Great
Britain with France, with the immense ad-
vantage to US that our working classes were
never in more prosperous condition. Even
the fall in Government funds Of late, which
has so alarmed some timid people, had more
than its parallel in England, where cOnsols
fell from l07 in 1887 to 474 in 1898, and 543
in 1918, the two latter estimated in depre-
ciated currency. Heavy taxation carried
the credit of England through, and still ena-
bles her to bear her debt. What she bore
for the balance Of power, we with far greater
resources, can surely bear for National exis-
tence, and with much better financial issue
before us.-N. 7. Times.