The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-08-04

ally increasing the evils IL was specially passed
to prevent. And hence, in l8i7, PgaIn in 1857,
and now, its operation had to be suspended.
We believe that its own limitation leaves It In
force for thirty years, up 20 1874, but as Parlia-
ment is said TO be omnipOtent, IL may soon
coerce the Bank into accepting a vital change
in it's charter even before that date, libcralizing
the whole banking system of England.
In our present state OF civilization bank issues
that is fictitious representative OF money,
based upen credit and conbdence--is lust as
necessary as money itself, or food, drink and
clothing. We had to multiply our means of
exchange, and since bullion would not come
forth in the same increased ratio as trade and
manufacturing expanded, we had to create a
fictitious means, and bank paper was the result.
The varied colossal enterprises of commercial
and manufacturing industry depend largely for
their existence and prosperity upon the main
tenance. in good standing and full faith ofthese
fictitious bank issues, and that again depends
upon sound, rational banking system, honestly
administered.
There Is certainly some great advantage in
the Scotch system of banking. No financial
crash ever affected them, and no panic ever de-
prived them of the confidence OF the people.
The sCandalous failure, some years ago, OF the
Western Bank OF Scotland at Glasgow, does not
affect our Judgment for that was afterwards
proven 20 have been n fraudulent concern from
the very start, more in the nature of Western
wildcat bank than Scotch institution, The
Scotch BANKS do really fulfil their mission by
taking up the little earnings OF the laDorer,
farmer, and small trader, and feeding with
them the great industrial centres from whom
the first again derive their profits. Their divi-
dends are small, but sure of coming; they are
safe institutions ana their existence Is beneficial
to the community.
No such praise cen be awarded to English
banging. The whole world stood amazed at
the recent developments of the perfect hollow
ness OF their system. That house like Ove-
rend, Gurney & Co, should have allowed its
capital to be absorbed in worthless paper, be
and continue bankrupt for years, and yet do the
business OF halt the world upon reputation
alone. without capital, gave rise to serious
thoughts as 10 the vaunted sohditY OF British
bankers outside the Bank OF England. That,
according TO Mr.. Dunlap's statement, English
bankers have only half a million sterling caOi-
tai, where they ought to have ten millions ster-
ling: that the Chancellor of the EXchequer
currency from which England suffers. All this
confirms only what the world began to susoect
after the tremendous tumble of 0verend, Cur.
ney & Co.
Not that ENGLAND is poor. She is wealthy, and
probably in the accumulation OF the representa-
rive OF wealth. money the wealthiest nation on
the globe. But Mr. BaZeley certainly spoke the
truth when he said the floating capital had been
absorbed in fixed positions, so as 10 be almost
mmovabe. 1t is found in diamond mines in
Brazil, in tea plantations in China, in gas and
waterwOrks in Berlin, in omnibuses in Paris, in
railroads all over the world, but not as banking
capital at home; and it may not be far from the
truth if we infer, taking this interview of the
Glasgow Deputation with the British Finance
Minister for our point de depart, that the Eng
lish banking system OF to-day is based upon
English credit and not upon English money.