The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-06-27


specie loosO,o1I l0,9O0,3l4
Circulation. ..".......'. 5o!I ~ 5ISSOa0
deposits ..........-.. 1871 35A lS7,5Os 1880
Legal tenders. 81 56'3 ia So, 500, 5S9
The devatons from the return Of tho previous week
Increase in loans. 645 9l9
Decrease in Specie TIA 500
increase IN circulation .................... IA l26
Decrease In deposits. ACKNOWLEDGEMENTS. ABB 3o8
Decrease in legal tenders ACKNOWLEDGEMENTS. 1000 755
From the in which most people talk, it might
be supposed that the country in the highest state
Of prosperity that the currency dollar the oquva
lent of gold that the national debt was national bless
ing and that the termination of tho had put end
To financial troubles People are Hocking to Europe
under vague impression Of this kind taking with
them large amounts Of gold exchange, which is the
same thing with which to make merry in the Old World
the triumphs OF the New. These people do not
pause reflect that every dollar OF gold which goes
from the country in this way is much taken from the
slender stock Of specie remaining in the country and
which is the only basis upon which hereafter
coin payments 1t is true this stock is being
continually replenished but withdrawing from IL
at a far groatc rate than adding to It,
Let glance at the financial history Of England II
would form idea OF condition and dangers
The Bank Of England suspended specie payments for
than twenty-three years, namely, from 1897 TO
1921 and there commercial panics Of various de-
grees Great Britain in 1912 1919 and 1895 the last be-
ing the most In 1912 the population Of Great
Britain and ireland seventeen millions, and the
tiona debt six hundred and fifty millions Of pounds
sterling and the currency consisting Of bank notes and
exchequer bills which amounted to ELS 900 00O was
twenty per cent below par and government stocks
twenty per cent below that foryonc per cent
below gold There were riots and great prostra-
ton Of trade at the time. The first government
loan In 1872 for twenty-five and half millions sterling,
negotiated with great dculty for Bank Of England
at twenty per cent discount. England was then
being of her specie payment for French grain
and British coin said TO be plentiful In Paris
than in London owing 1t was supposed, to Napoleon
having encouraged exports from France for the purpose
which they promoted. Consols fuctuated between
SOY %, and the average depreciation Of Bank OF
England notes during the year was q X per cent In
1913 another loan Of f2 900 sterling disposed Of
by giving clio in three per stock and eco In four
per stock for each floo in bank notes The Bank
circulation eos 900 900 sterling, and its notes
deprecated 20 per cent
william Pitt who had managed the finances from 1880
10 this timc-a period OF twenty ycars-was
cecdod by Mr. vansIttart who overturned the sinking
fund system established by Pitt under the impression
that would reduce the debt too rapidly "Thc sinking
fund " said he in Parliament, twill II conducted at
present yield before long eco 900 Gao 600
annum" and he argued herefrom that the funded
rites would be lowered in market value II the system
not changed. The reform made and the
sinking fund has been object Of less rdcule
since
In 1915 when Napoleon returned from Elba, Europe
In again, and sixty-ouc bankruptcies
CURED in single week in the month of March,
while oonsols fell from 6l to &c. and gold sold
at 20 per cent premium bank notes The
Bank OF England had then $500 900 Of notes
In cir If ton nd A
half millions Of specie government loan
for ESQ 900, 900 in bank notes authorized,
for which COS 440, 900 in three and four per cent
stock issued The end Of the In 1915 LETT
England with debt OF fsGi, 600 Immediately the
burden Of debt and the effects Of the began to be
felt There great stagnation OF trade, and much
agricultural distress Farm tenants unable 10 pay
rents There general cry for reduction Of taxes,
which the government unable to crafty There
were open air meetings, bowling mobs and petitions to
Parliament for relief The probation OF Bank Of Eng
land noies, however, in 1915 only averaged 1888 per
cent, and consols were quoted at 81 60 In
1917 It was estimated that three millions OF
farmers and mechanics out Of employ In 1918 the
debt had been reduced 600 O0o and consos were
quoted high 81 AT the same time the circulation
OF the Bank OF England stood at ns highest point
Gao GAS $50 In 1919 general dsrust Of the public
credit and national bankruptcy was freely talked Of
by the leading newspapers Tho expenditures continued
70 exceed the income, the former being for that year
fe7 TO- $50 and the latter f54 600 leaving deficit
Of not far from f14oo0 900 Hobs and riots again dis
turbed the social and political atmosphere there
great cutlery against taxation And any
likely escape similar outcres than the people OF
England wereS
On the 18th Of July, 1919, Parliament postponed for
the fourteenth time the resumption Of specie payments
nd n havo 10
which may redeem the debt about six hundred years
and speculaed very prophecaly that the deb, never
would DO paid never will be paid Consols fell in
this year to 6S In 1919 thcro was extreme commercial
depression and an aDt taxation party arose which TO-