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

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be accompanied with restraint and inconvenience
TO every branch OF industry In the country and that II
u were forced, with rapidty at all approaching 70 what
would De required for the payment In the course q
twelremonth, the injury would be Noticeable; THERE
duction OF paper would produce all those effects which
arise from the reduction in the amount money in any
country an effect which think is we'll described in Mr.
Hume ~ Essay on Money The consequences OF .
contraction or expansion OF the amount OF money ina
country seempore felt during the progress Of such con-
traction ami x,ansion Slaa FROM any poSlnSe anouY,
of money at any effSsiven period II rs not, irshy
opinion Of grea. importance what amount S o. money
whether it the decrease Of great
Importance to every branch Of its industry"
MIR. HALDIMAND's TESTIMONY.
Mr. Haldimand stated "that he conceived Il to be
necessary that the Bank OF England In order 70 be
bed to the payment Of its notes in specie should
four millions forcibyn He explained sthai by the term
forcby he meant reduction not arising from three
four millions less being demanded but from three or
four millions being demanded and refused by the bank
to the public and government He considered this
forced reduction OF the issues Of the Bank Of England
to be necessary in order 10 restore the rest of the
In circulation 70 its ancient value In gold and the
changes par" Being asked II, Sin order 10 produce
the effect which he anticipated from forcble reduction
of the issues OF the bank would be necessary that the
reduction should be sudden he replied '1n my opinion
every possible dsadyansase and nosnvenience % the
public would arise from sudden reduction; should
certainly recommend lis being gradual"
MR.. GLADsToNR's TESTIMONY.
Mr.. Giadstone-a member OF the House, and mer
chant principally engaged in trade with the East and
opinion shat tho influence which the reduction OF the
bank issues produces Is OF secondary nature that in
other times the alteration or two or three millions In
their would not have been ct all felt but that
the present state Of the trade Of the country after
year OF much overtrading and great accumulation Of
foreign goods in the country and Of British goods for
British account in foreign markets, whatever tends to
the OF circulation acts In much greater
degree low than II would in other times -
THE COMMITTEE THINK IT INExPEDrENr TO RETURN
TO SPECIE PAYMENTS.
After full consideration Of the evidence and OF the
several matters TO which is material to advert in
sderng the expedency of rcsuming payments in cash
the 9th of July next, the amount Of the advances of
the bank to government the quantity Of bullion in thor
Golfers the probable effect Of rapid and considerable
reduction OF their issues, in whatever manner with
whatever view such reduction might take place, your
comm decidedly of opinion that it is expcdcnt
to continue the restriction beyond the 5th OF July next
Third, your committee have now presented to the
House their view Of the two important points which
they proposed according TO the order OF referencc to
make the first subjects of their invesgatonthe state
OF the Bank OF England and the expectancy Of resum
ing cash payments on the 9th OF July next They
proceed offer their observations with respect to the
period ut which may be advisable 70 terminate the
restriction
WHEN IT WILL DE ADVISABLE TO RESTORE TIE
METALLIC BASIS. :.
They will in the first instance, advert to tho sup.
ply of gold which may be required in order to meet
the probable demands upon the bank on the resumption
OF payments IN specie.
AMOUNT oP SPECIE IN CIRCULATION.
II is difficult to form any accurate estimate Of tho
OF gold in circulation previously TO the year 1887
be required must necessarily be more vague and unsat
isfac,ory.
In the communication made TO the committee by the
court OF directors of tho bank the 25th of March it is
observed "tha the amount Of specie in circulation be-
fore The vaousy estimated even by persons best
qualified, from their situation, to obtain information"
II seems however To have been agreed that about
thirty millions but whatever the amount the whole has
been exported
Mr. Hartman states in his evidence othat tho amount
OF gold in the country previous 10 the restriction had been
etmaed by the late Lord Liverpool nj thirty millions.
al r.
take IL 1T twenty millions, that might be about the
amount who WIS in circulation previous TO the Restrc
ton act" lie Ids thai lie thinks hc warranted In say
ING that II twenty miloH, 5esdes what remained in the
bsb& necessary fer til scale of expenditure before
to Restriction act, is taking il moderately to contend
thai rs mach void be necessary now.
now MUCH COIN WOULD BE REQUIRED TO RESUME
SPECIE PAYMENTS.
Mr. Alexander Barring observed "that II is difficult in
deed impossible TO form any accurate estimate but his
impression is that with now and perfect coin, such
the sovereign, which, in his opinion, would exclude the
81 and G2 notes whether they by law excluded or
not. the amount of such gold coin could not be much
less than from orty TO fortyve millions lie docs not
that the whole amount would be required before
cash payments could be resumed; but he thinks that
they could not be safely undertaken with much THAN
half Of that amount actually in the country, which its
circulation would ultimately absorb; and that the half
could be accumulated without great pressure upon the
country in less than four or Ave years from present
time"
amount Of any metallic currency that viii ne rcquir.
subsequently TO the removal OF tho restriction - ln
perfect Tint your eom%t'ee abstain from or5 ns t any
Mr. Barring has ovcrrated that amour. win respect
also to the disposition OF tho pubc1 require soa com
as currency in preference not, under nvc pouncs
conclusion may be drawn, ra tho testimony Of other
witnesses. differing from, that wh'cn Mr. Barring mas
lint when .ae bank undertook pay their notes
in la, in tho ear 1877 preference for coin was
shown nm, die foreign exchanges caused demand for
Tho nnrnesc of expectation. Mr. Hartman states in his
eyidepe hat at tina, PERIOD he was induced TO fatter
himself that tho doors OF tho bank would be opened
4 neyfui t.a
hardly know whether the bank was open or shut-that
Il was in a moment Of tranquility that people seemed
bank for gold they brought their gold to the bank that
remained TIL the financial operation in France began,
and as they were talked oil the tide turned"
DOUBTFUL TESTIMONY.
Mr. Strckey, n gentleman very extensively connected
with banks the county of Somerset evidence 10
the following ecct:In the latter end OF the year 1916
for SOM months; it cost us at that period nearly one
hundred pounds 20 transmit the surplus quantity of coin
TO London OF w, 'lf-ia.as IN value at ieast, con
sisted Of god We Gov ~ not ret id OF II In the country,
ous r0storecs pipi'wng oar noe. In the spring OF
1877 ! hrongh. VITA ~ q town " ar one thousand
gnrpag RON ne gaDns; on taking them 70
icnaeu banker he requested M favor would not leave
them there They had lately sont so many TO The bank
OF England that they did not like trouble them INV
more bcsdcs the bank only took those which wego o.
full weight"
PREPARATIONS NECESSARY FOR THE BANK TO RE-
sumo.
Notwithstanding this evidence, " must be admitted
that no satisfactory CONCLUSION cah Oe urNn iv the
experience OF so short interval that which Ia
ferrcd to by Mr. Hartman and Mr. stuckey. Groat
tanty must prevail with respect to the amount OF gold
which may be required for the purpose OF internal crcu
aon and the bank must be prepared not only for the
possibility OF much larger demand for those purposes
than will probab,bc made but for the consequences Of
n drain upon their treasure, induced either by such
temporary depression Of the exchanges as shall afford
profit the expectation OF tho precious metals or by
disposition to hoard them, arising from sudden panic
and temporary want OF confidence In paper currency IL
must BE- considered also that tho stock Of gold now In
this country Is very limited. The long connuance Of
tho restriction has caused the expectation Of nearly the
whole OF that which circulated previously. and the nat
raj nducement TO transmit the coin from this country,
where IL not necessary, to other places where IL
could be moro prontaby employed, has been in worry
tring degree countcracted by the legislative enact
ments which prohibit such an application Off
DIFFICULTY IN OBTAINING AN ADEQUATE SUPPLY
OF COIN.
II Is possible in the opinion OF your committee again
TO procure any quantity OF gold which likely to be
qurcd FOR the purposes Of currency but