The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1865-11-25
Financial Htstory-Snspcnsio OF
Specie Payments In England.

Ill ep1tO1nIC u1SGOTy covering the SuS-
pension of specie payments in Great
Britain from 1897 to 1919, including
recommendation for final RESUMPTION
in 1922, embraced in report to the
British Parliament, which was pre-
sented on the 9th Of May, 1919, by a
secret committee appointed for the
purpose of nscertaining what legisla-
ton was necessary to alleviate the
serious consequences that would be
likely to follow a forced sudden re-
sumption, or to report an act extend
ing the time for restoration to the
metallic standard
By this report, it will be observed
that the first law authorizing the Bank
of England to suspend specie pay
ments for its notes, was passed by
the legislators of Great Britain, and
received the sanction of the Third
George, as monarch, on the Sd of
May, 1877; and that by supplemental
acts of Parliament, to the number of
eleven, the suspension was legalized
and extended until May, 1S21-em-
bracing period of twenty four years.
When the bank was first authorized
to decline the passing of mint issues
over its counter in redemption of the
notes, upon all of which the 'spromise
to pay was prominent, no panic was
created thereby, and no financial dis
turbance heralded the event. Paper
money, which became practically the
legalized 'tcoin of the realm was as
plentiful then there as now here, and
the prospective success of the people
elected the admiration of the world.
Everybody was flush with bank issues,
the spirit of speculation was rife and
rampant, the burdens of the war
which was then raging with France
were lightened, and prosperity seem
ed to fringe the entire kingdom. But
when the public began soberly to
consider upon the frailty of paper
wealth, to seriously con their condi-
ton, and to look upon the thousands
OF speculative schemes engendered
by the eagerness for easily acquiring
fortunes, through the lenses of reason,
their precarious position became ap-
parent. Then commenced that series
of financial disasters which drew
ecliptic shadows over England's ed
vancement. Panics and revulsions,
riots and bloodshed, running through
decade of years, succeeded, which
shook the old kingdom, as by a Pc
ruvian earthquake, from centre to
confines
The report being au authentic his
tory, will be found to contain matters
of interest to philosophic writer's on
domestic economy and financial pro-
pagandists. It contains the senti-
ments of some of the most prominent
financiers III England ut that time :;
and as the monetary condition of that
country was somewhat similar to that
of the United States at preseat, sorao
profitable ideas may be obtained by a
careful perusal of the evidence of
those men. Mr.. Alexander Barring,
it will be observed, was of opinion
that the operation of reduction of
the currency necessary for the pur-
pose of resumption, would be accom-
panied with restraint and inconve-
nience to every branch Of industry in
the country, and that, if it wore forced
with rapidity at all approaching to
what would be required for the re-
sumption within year from the time
MAY, 1881 at which the evidence
was given, the injury that would be
occasioned would be intolerable. Mr..
Barring further says that the "conse-
quences of a contraction or expansion
of the amount of money in a country
seem more felt during the progress Of
such contraction and expansion, than
from any positive amount of money
at any one given period. It is not
of great importance what amount Of
money may exist in any country but
the question of whether it is on the
increase or decrease, is one of great
Importance to every branch of its
industry Mr.. Haldimand, one of
the directors Of the bank, thought
that by Il sudden reduction of the
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