The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-08-14
NEWSPAPER ACCOUNTS.
THE ENGLISH MONEY CRISIS.
The Rate of Discount nj Ten Per Cent, and
tho Effect.


the Effect.
From the London Times tcity article. July I'll
The per cent Of the Bank OF ENGLAND IL still
nsoia,uicd but The expectation OF reduction by the
BanA Of France from foni per cent 10 which ii was
raised during the london panic, on the llth o May
last, % three and half per cent hai bern n lled Tho
Bank OF England return this evonng shows only ycry
moderate recovery in the reserve bat looking at The
dmnuton that has lakc places VI the liabilities and
The symptoms from all sides of the abun
dance OF money hkely soon 70 accnmuine here, gen
elaI opinion IL expressed that reduction 70 ninc
per cent might ioday have been adyansageonsiy
resolved npon. The plea for contrary course
will be that HE nonmprovement OF the reserve shows
that at the existing charge o ten per cent there ~ su
cient demand TO absorb all tho RESOURCES ~ the establish
Inent bat the same plea would most likely available
" the rate fifteen twenty per cent since there
are plenty of pcrscps wosc m0mcnary needs are sach
10 render the nte matter OF no confederation
The Bank sinte,1n. II is contended, should repre-.
sent within hall per cent the ltir @irfstsnl
ami when !. fails TO do 80 u creates wrong
preston abroad as wcll at nome, and gives an
injurious tone 10 III our transactions. ~ this manent
the actual minimum rate in London y six and hall per
cent, and money 4, any amount can he obtained on
choice bills on those terms " tho bank were 20 ecog
nize this oi aftrs by pnrg us charge At
per cent, and making such hishcr terms rs might be
thought n tor AL Opdary paper there could b. OBJ
econ and the dhca,iics of the time would not be in
creased fy are ~ ne rrorfioR If 0rlais
anlo,g j.ssigacrf, weii among traders IA
the provinces, thai he directors must have appre
hcnsion Of peculiar perils in existence unknown % the
public At large
Ths ~, ~. c.at eth rryss.
u. anomalous ID r1use ~ intiIgAtaS tDat the bafk
praecay excludes the paper OF tha saalng merchants
o these would resort To 10 pay ten per cent
instead and hsl, and II ls unjust because there
are enormous tran actions aii times open between
onrsel.es Foreigners welt between ourselves
alone in which the rate oi interest," regulated ~ old
agreement, according Ia the hank rate Tor the time
bsing. aud many ndiydnas are thus compelled
10 raw three or four cent abUye any fanns
that could have been aiIly contemplated when
they made tbeir bargains If u we're not Tor
these would matter little what rate the
bank might adopt because LIe open market anJris the
true test and II holders Of choice bills there vet
ferspce 10 them thai the hank declines their business
Under existing circumstances. the az the bank
bcxei dis,rust the very moment when drrGa the
on,y evil encountered. II tho hank were ~ seck
primarily for tho best hills bv lcng its mnnum a.
seven per cent the money thus put ou would Through
the Glng channel or private capitalists and disconni
agents ind us WY the higher terms Of eight Ten or
twelve per cent nto the secondary hands whom
such rates might be rsaarcd. ia business wosid then
be OF tpe high slararter behitlng national establish
uent not sngc extra pound would he drawn from ts
resources hat on the contrary. The drain would dmin
ieh IN the recovery ~ confidence Tins caused and the
actual monetary condition Of the country would NJ
lon GER he mrsspr,scmicd ~ corrc, irdgng from the
ned IN any step thrt would proasote further dim
tion of ,nes resources The oalv quest ~ whether
when there arc evcr C8ssa. oi bills IN the market y
which these RI can' BE- employed they shoua
not TAX besi far the, can he Unnamed and DC
content with per cent ~ preference !" ten per
cent upon seClrity, Nhich may be inherently as good
bu, which dues not command the unauasiioncd
currency aud which could be APP r0praiciy dealt
with D., lesser establishments.