The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-20
VI e .,,p.gan VIZ So
a r. ~ - - PAYMENTS.
Interesting Financial
History.
Suspension OF Specie Pay
nlents i'm Great Britain.
II 81 T o 1 8 9 /.
The BANK OF ENGLAND.
Report Of the Secret Committee Of
Parliament In 1919.
THE VIEWS OF PROMINENT FINANClERS.
Number Of Laws Authorizing
Suspensions.
DC. &c. DC.
Report Of the Secret Committee Of
Parliament In 1919.
The VIEWS OF PROMINENT FINANCIERs.

Second Report OF the Secret Comm ittce Of
the House of Commons the Expe-
diency OF the Bank OF England Re-
cunning Specie Payments.
INTRODUCTION.
committee of secrecy appointed TO consider Of tho
state OF the Bank of England with reference TO the
ex,diency the resumption of cash payments at tho
period fixed by law and into such other matters arc
connected herewith and 10 report to the house such
information relative thereto may be disclosed without
injury the public interests with their observations
thereupon 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 rcfor
red 10 them BY the house by brief recaptuation OF
the laws which imposed aud have continued the rcstric
ton upon payments in cash by the Bank Of England
LAWS LEGALtziSG THE SUSPENSION.
II Is not necessary advert to the circumstances
under which that restriction originally imposed by
order council the year 1897, they became tho
subject of parliamentary inquiry previously to tho
passing OF the act, by which the restriction was
Grmed and continued. It's duration limited by tho
first act which received the royal the Sd Of
May 1897, the Gath OF June following. From that
period it continued until ono month after the com
Of the succeeding session, and again, BY tho
first act session. until month after the
clusion of the war; by denntye treaty of peace
In 1902 the provisions Of the above referred 10
| the following year they we're further continued Until
six weeks after tho commencement os the then next
session Of Parliament before which period haviag
again broken out they were continued until sx months
after ratification Of q snitive treaty or peace.
An which passed IN the year isl4, continued tho
restriction until the 2jth Of March " the following pear,
when by an act which rcciied in the preamble thai d
was highly desirable that the Bank OF England should,
~ e Ss i r' saspenson on Of el pas nena was
directed until the 9th Of July, 1slG
In 1916 IL again continued Til the 9TH OF Jn!y,
/ Oi
desirable that the Bank Of England should as soon AZ
pos sibe return payment or cash, but
il Is xpcdlent that the provisions Of the acts imposing
the restriction shall be further continued in order -
afford time OF the bank to make sueti
preparations their discretion aud experience may
| appear most expodicnt for enabling them To resume
payments Ia cash without public Inconvenience, and
the earliest period, and that time should be liked
| which the said restriction should ceasc.o
The which passed M the last session, after rcciinf
| that Il highly desirable that the Bank OF Engant
should soon possible, return TO the payment OF ~
whch have occurred since the passing OF the last act
| continuing tho restriction have rendered u eSpedien
that the resurrection should be further continued am.
that another period should DO Fixed COR the termination
thereof directed that the suspension should remain
| force another year
CONDITION THE BtSK or ENGLAND.
The restriction therefore present stands limtsd
the 9Th of July, 1919; and, in fulnlmen ~ the dur
| imposed upon them by the house, your committee WI
proceed In the first instance 10 report the result Other
| inquiries INTO the state Of the Bank OF Englans al
their opinion with respect TO the expcdIcDcy 81 hse
| SUMPTION Of payments IN specie at tho period awhch
| by law they arc TO he resumed
| First, committee called for accounpf tina
total amount OF outstanding demands on the ank or
England and Of the funds in the possession Of bank
for the discharge Of those demands; and by asccr-
tanned that the which the bank were liaf 70 DO
called pay, IN fulnmcnt OF their eniemcns,
amounted the seth OF January last, % f'y4 $50,
and that the bank were then In possession govern
ment securities and other credits 10 the n0unt Of
ESQ oo6, 900, leaving surplus In favor OF Bank OF
due from 20, eminent TO the bank OF fIJo 800, re-
payable tho expiration Of tho charter
This document furnishes clear and dccic proof of
the fourishng condition OF the Affairs Ono fank OF
England, and Jusncs that ample conGdcr which tho
pubic have rcposed in the stability OF thcifsources
The next point upon which the comncc required
Information respects the amount OF castnd bullion
IN the Golfers OF the bank at the prcscntd az various
other periods since the year 1877.
AFTER several fluctuations In the amount their trea-
sure which was very much reduced at close OF tho
war there appears have been a araduancrcss from
the month Of July, 1915 to the month october IN tho
year fsl7. During the interval betwceUiy, 1885, ana
July 1917 the market price Of gold dnot exceed f3
l9s per The exchanges with thpnunent, for n
very considerable portion Of peri were in favor
Of this country and the bank took adliagc Of those
circumstances and made great addit.to Tho amount
o. ,ne p.spss IN, metal, na IN aner pad No .pS
yorabc effect on the price Of god andero reason tn
believe that IL would have fallen TO mint prce lad
not the bank liked the rate at whcpcy Were willing
TO purchase at CO 1ss. Cd per ouu Nh Goldsmd
informed the committee that Eat thacriod there wcrc
no other buyers In the market at tlprce which was
| given by the bank Had there bethey would have
been supplied on the same terms, they had wanted
| gold, Being asked whether II thonk bah hos been
purchasers al 60 1ss. Cd, h bccithe price Of gold
would have fallen to tho mint " he answers
y
| opinion only
| In the year 1917 the hank bad ouch larger amount
Of cash and bullion In their coicrghn th'y hah bcen
IN possession Of al former ped sne.thcir esan-
| lshmenL From the tommonccint OIL the year 1873
the stock has been progressively eihsh'u- ihe uhi-
mutton has taken place ia cpnsesn ~ eheaeomehH
| into winch the bank catered Qfoniormy wlh tho
poyer reserved 10 Thorn hv tbe gna restriction act
| in tho months Of November ~ aud Apri ana Sep.
| TENDER Of the following year, hay IN we nrst ana
second instance cash for Ill nnto Ior 70 tue lst
OF January 1872 and of Jaary, 1916 and, m tho
latter 10 pay cash for thsir n0tgi every denomination
| dated prior 20 the Let q Januarlsl',
| Rus OK THE B,sfoE COIN.
The total quantity Of gold CO issued from the bank,
in consequence the cngsgornts thus entered into,
and tie continuance q The ftiona payments under
| have amounted between thst OF January 1877. and
the LIST OF January 1918, tone sum OF 81 500 256 m
ruineas and half guncas al In sovercigns aud hall
sovcreigns 10 CA, 4ba 725 y1r committee have asccr9
that subsequently 10 ttlst OF January there has
been a further demand bank for gold 70 the Al
tont ~ about seven hundre thousand pounds Ih9
total sum- therefore, which beef issued ~ the nank
since the commencement the gear 1917, mas been
about 20 1865 600 and no dibt be entertained that
the coin thus drawn from 10 bark was demsnnca, hos
for the purpose OF interna circulation but IN ouI 70
realize profit either itfals as builoo 10 e"H oo"h
try, o on Its expectation. .,,
Your committee confnsd IN ths eon.'us'on ~
the documents before tho hee, rom wmcn avy"s
that the sum Issued froBtne stn o. py s,a a ~
when tho noss Of the b pecame pssao'' au teI.1
notice issued on The preSing m9ntnL 70 ssy, aI
amounted only 70 f3s OF los, though the benk bea
become lisble on tho I'd cMay o. .ns 'ss wv ~, y
cash for all their notesf one pound sna '~o poanes
value II j ssssd R Sls' 3 Sss ,a@. sut.