The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1865-12-06
Financial HistOry-SuspensiOn
Of Specie Payments in Eng
land

itomic history covering the suspension Of
specie payments in Great Britain from
1877 to 1919, including recommendations
for fual resumption in 1921. embraced
in report to the British Parliament,
which was presented on the 9th Of May,
lS49, by secret committee appointed
for the purpose of ascertaining what leg.
islation was necessary to alleviate the Sc
riOus consequences that would be likely
to follow forced sudden resumption, or
to reportan act extending the time for a
restoration to the metallic standard.
By this report it will be observed that
the first law authorizing tho Bank Of
England to suspend specie payments 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 1897; and that by supplement.
tai acts of Parliament, to the number Of
eleven, the suspension was logalized and
until May, lS2l--embracing period Of
twenty-four years.
When the bank was first authorized to
decline the passing of mint issues over its
counter in redenptiot of the notes, upon
all Of which the "promise to pay" was
prominent, no panic was created thereby,
and no financial disturbance heralded the
event. Paper money, which became
practically the legalized "coiu of the
realm" was as plentiful then there as
now here, and the prospective success 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 seemed to friuge
the entire kingdom. But when the pub
lie began soberly to consider upon the
frailty of paper wealth, to seriously con
their condition, and to look upon the
thousands of speculative schemes engen-
dered by the eagerness for easily acquir-
ing fortunes, through Che lenses of reason,
their precarious condition became appar-
ent Theu commenced that series of
financial disasters which drew ccliptic
shadows over England's advancement
Panics and revultions, riots and blood.
shed, running through decade of years,
succeeded, which shook the old kingdom,
as by Peruvian earthquake, from center
to confines.
The report being an authentic history
will dc found to contain matters of inter-
est to philosophic writers on domestic
economy and financial propagandists. It
contains the sentiments Of sore of the
most prominent fnancers in England at
that time; and as the monetary condition
Of that country was somewhat similar to
that of the United States at present,
some profitable ideas may be obtained by
a careful perusal Of the evidence of those
men Mr.. Alexander Barring, it will be
observed, was of epirion that the opera
ton OF a Reduction Of the currency nee
essary for the purpose of resumption
would be accompanied with restraint and
Inconvenience to every branch of indus.
try id the country, and that, if it we're
forced with rapidity at all approaching
to what would be required for the re-
sumption within year from that time
| May, 1870 at which the evidence was
given, the injury that would be occasion.
ed would be intolerable. Mr. Barring
further says that the Consequences Of a
contraction or expansion Of the amount
of modey in country seem more felt du
ring the progress of such contraction and
expansion than from any positive amount
of money at any one given period. 1t is
not Of great importance what amount Of
money may exist in any country; but the
question OF wbauhcr 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 tho
bank, thought that by sudden reduc.
tion Of the currency every possible disad
vantage and inconvenience to the public
would arise, and he therefore recommend
cd gradual contraction. Mr.. Gladstone.
prominent Fact india meIcbaut aud
member of Parliament, gave an opinion
that the influence which the reduction Of
bank issues would produce would be Of a
secondary nature; in ordinary times, he
said, the retirement Of two or three mill
ions of paper would not be felt, but that in
the existing state Of the country, after two
or three years of much overtrading Cor
speculation, he might better have said, }
whatever would tend to narrow the means
of circulation would have very deprcss.
ing effect. Mr.. Gladstone speaks Of a
contraction of two or, three millions of
pounds sterling, which is only about ten
or fifteen millions of dollars, which at
this timo, when considered in connection
with the aggregate circulation in this
country, seems but very-small amount,
but it must be borne in mind that trade
has increased immensely since that day,
and that now the commerce Of the Uni
tod States alone requires more capital
than was necessary at that time to move
tho entire business of the world We do
not propose in this article ro summarize
the report to which we refer, bu. merely
to call attention to it as being curious
document and applicable in many respects
to the present financial condition Of this
country, and we think we can safely claim
for it careful perusal.- ~ T. Herald,
Nov. 81. PEP .t