The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-20

'SPECIE PAYMENTS.
Interesting Financial
History.
Suspension OF Specie Pay-
Ments in Great Britain.
~ 81 TO 10 81.
The BANK OF ENGLAND.
Report Of the Secret Committee Of
Parliament in 1919.
THE VIEWS OF PROMINENT FINANClERS.
Number Of Laws Authorizing
Suspensions.
DC. DC. DC
The BANK OF ENGLAND.
Report OF the Secret Committee Of
Parliament In 1919.
THE VIEWS OF PROMINENT FINANClERS.
Second Report OF the Secret Comm ittee Of
the House OF Commons the Expe-
diency OF the Bank OF England Re-
Stunning Specie Payments.


the House OF Commons on the Expe-
diency Of the Bank OF England Re-
cunning Specie Payments.
INTRODUCTION.
The committee of secrecy appointed TO consider OF tho
state of the Bank of England, with reference 70 tho
expediency OF the resumption Of cash payments at the
period fixed by law and into such other matters arc
connected thcrewh and 10 report to the house such
information thereto may disclosed without
injury to the public interests with their observations
hereupon have further considered the matters TO them
referred and have agreed upon the following report
Your committee viii preface the observations that
they have TO make upon the matters immediately refer
red them by the house by brief reorganization OF
the laws which imposed aud have continued the rosrc-
ton upon payments in cash by the Bank Of England.
LAWS LEGALizISG THE SUSPENSION.
II is not necessary TO advert, TO the circumstances
under which that restriction originally imposed by
order in council in the year 1897, they became tho
subject of parliamentary inquiry previously TO tho
passing OF the act, by which the restriction
lirmed and continued It's duration limited by tho
first act which received the royal assent the Sd Of
May, 1897, to the Gath of June following From that
period IL continued until month after the
Of the succeeding session. and again. by tho
first of that session. until month after the
cluson OF the war, by defnitive treaty OF peace
In 1902 the provisions Of the above referred 70
continued in operation until the lst Of March Of
the following year; they further continued Until
six weeks after tho commencement os the then next
session Of Parliament before which period war having
again broken out they continued until months
after the ratification Of d,hntvo treaty or peace.
act which passed IN the year 1SlI coat nued tho
restriction until the 18th Of March ~ the following year,
when, by an act which reciied IN the preamble thd %
highly desirable that the Bank or England should,
az possible, return TO The payrnent@ W. nots-
ID cam NE rurhcr suspension Of cash pay
directed until the 9th Of July, 1SIG
In 1916 II was again continued til tho 9Th Of July,
1873 the preamble Of the act rocitng that il is highly
desirable that the Bank Of England should, al
pc. sble, the payment OF IL notes in cash. but
II IS aypedent that the provisions 81 The arts imposing
afford time the directors OF the bank TO make such
preparations To their discretion aud experience may
anr,car most expcdicnt for enabling them 10 resume
payments ia cash without public Inconvenience, and
the earliest period, and that time should be- fixed
which the said restriction should ccascn
The act which passed IN the last session. after rectinf
that II is highly desirable that the Bank OF England
should possible, return TO the payment OF IL
notes In cash, and that 'unforc cir umstancci
which have occurred SINCE the passing OF the last act
continuing tho restriction. have rendered II eNpeden
that the restriction should be further continued,
that another period should be fixed for the Termination
thereof directed that the suspension should remain
force another year
CONDITION or THE B,SK or ENGLAND.
The restriction, therefore, at present stands limited
the 9Th OF July, 1919; and, in iulnment Of the dur
imposed upon them by the house, your committee WI
proceed In tho first instance 10 report the result Other
inquiries the state of the Bank OF Englans al
tier opinion with respect TO the expedcDcy 81 ne e.
by law they arc TO he resumed.
First your committee called for accounpf thu
total amount OF outstanding demands on the ank Of
England and Of the funds in the possession Of % bank
for the discharge OF those demands; and hay asccr-
tained that the which the bank were Lap 70 DO
called to pay, IN fuhlment OF their enlemcnts,
amounted the seth OF January last o. fjSg4 $50,
and that the bank then in possession govern
ment securities and other credits 10 the hount o1
ESQ oo6 900 leaving a surplus In favor OF Bank OF
England Of E5 202 $40 exclusive OF the perent debt
due from 90, crnmont % the bank OF CLOGS 500, re-
n.x al mn gllQ nraff I'm of
This document furnishes clear and dcce proof OF
the fourshng condition OF the affairs ono Bank or
England and juslcs that ample conldcr which tho
pubic bave reposcd in the stability OF hcfsources
The next point upon which the comnre required
Information respects the amount Of casfnd bullion
the OF the bank, at the prcscntd at various
other periods since the year 1871
After several fluctuations In the amou1f their trea-
cure, which was very much reduced at close OF tho
war there appears 10 have been raduancrease from
the month OF July, 1915 TO the month October IN tho
year 1871 During the interval betwcerf'y, 1915 ana
July, 1917, the market price Of gold dnot exceed ca
es per ounce. The exchanges with thPntincnt, for
very considerable portion OF that peril were IN favor
Of this country; aud the bank took anagc OF those
circumstance and made great additlto tho amount
OF tho precious metals in their possjon. The pur-
chases made by the bank appear 10 ha had no unfa-
,orbc effect on the price Of gold anderc y reason tn
believe that u would have fallen 70 mint price had
not the bank fixed the rate 1T whcDoy were willing
10 purchase nj f3 lss. Cd. per our ME Goldsmd
Informed the committee that TAT thscriod there wcro
no other buyers In the market, uprice which was
given by the bank Had thorc bcthey would have
been supplied the terms, they had wanted
gold Being asked whether IL thsnk bal not been
purchasers al 60 1ss Cd he bclioythe price Of gold
would have fallen 10 The mint N, he answers, u
mink II might after some time tha' !" hs''er F"
opinion only
In The yesr 1877 Tho bank had tuch larger amount
Of cash ana buliou In bolr Golfers bn they had been
IN possession Of at former ppG slneethcr erisn
lishment From the tommcnCcnt OF the year 1918
the stock has been progressively fihshed inc oml-
mutton has taken place ia cOnsef on chehg'nohH
into winch the bank catered pfonlorihlty WIN tho
power reserved them by the Iginal resurrection act
In the months OF November ~ ana Alrii ana Sep.
TENDER Of the following year, Hny IN tho nrst ana
second instance cash FOR iii n0tJ sued prior TO the LIST
Of January 1912, aud 1T 81 Jhfy leloi ana, IN ina
latter 10 nav cash FOR their no,bf every denomination
dated prior 30 the Let Of Januarisi'
my on Tur B,yfOR COIN.
The total quantity Of gold od issued from tho bank,
p cnnscouenec az The euQarstnts thus entered into.
and the continuance ~ the ftonal payments under
ave pounds appears, by accoqs before the house, 70
have amounted between hlst OF January 1917. and
the LIST of January, 1919, tole sum OF I'll 500 250 ~
guineas and half guncas al in sovercgns and hall
sovoregns to ca 45e,125 1r committee have ascor'
famed that subsequently 70 llst of January there has
been further demand on y bank for gold 10 the cal
toni 81 about seven hundrs thousand pounds Tb4
total therefore, which beer issued by the pans
since the commencement cthe gear 1871 mas bccn
about 20 10000 and dibt can be entertained tha
the coin thus drawn from 10 bark was demanded, nov
for the purpose OF interna circulation out orur
realize profit either on iteale a. bullion IN TINS ooun-
try, or on It's expectation. .,,
Your committee are confnsd IN tnis con.ius'on ~
the documents before the hee, rom wmcn spp.s,s
that the issued frontno gin o. Dseemue,, 10Y
when the notes Of the bk pecame psyaoe uuae, rn9
motto. issued on s prsfpSs though The Ssnt bad
become soe on Tho "a osy Of the latter year TO pay
cash FOR ali their noteSf ono pound and two poondf
value dated prior 70 the If January, lsiQ