The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-23
One Hundred and Twenty Mil
lions of Pounds Sterling Of
Notes in Circulation.
TWO FINANCIAL REVULSIONS.
THE BANK AND THE BuLLIoNISTS.
DISTRESS OF TEE PEOPLE.
&C. &c. &C.
THE SUSPENSION.


DON whereat decided that royal decree should
be issued the following morning authorizing the Bank OF
England to refuse TO redeem its in the current
of the realm"
THE PUBLIC DEBT.
From that until the year 1875 after the battle Of
Waterloo which closed the Napoeonic struggle and
stored peace to England there very strenuous
efforts made the specie basis In that year
tie public debt OF Great Britain had assumed the
nous proportions Of nearly eight hundred and sixtyve
millions OF pounds sterlings about four thousand
three hundred millions Of dollars, upon which there
annual interest of thirty three millions OF pounds
THE CONDITION OF TIE BANK OF ENGLAND AND THE
PAPER CALCULATION IN 1919.
The specie in the vaults Of the Bank Of England had de-
cned TO ten and half millions while it had over thirty
millions of irre1ecmable paper adoat, which was
at discount ranging between eighteen and TWEEN
tvhve per cent The country bank circulation
amounted to about forty Millions and that
of private banks and bankers to probably add
tiona fifty millions that the aggregate amount of
paper aaOat in Great Britain 10 the year 1915 could
hardly be estimated less than hundred and twenty
millions of pounds sterling which is about equal to six
hundred millions OF dollars, and this it must be
bered satisfy the and business requirements
OF less than twenty-five millions of inhabitants nearly
oneseyenh of whom could hardly be classed except
paupers r.
COMMENCEMENT OF THE FINANCIAL TROUBLES.
The public credit had been very much weakened during
the war; but the of peace there n strong
disposition manifested the part of tho people to
confidence and bring back trade and TO their
normal condition. And perhaps might have
crowned their efforts il currency thinkers and metallic
had been heard Of those classes
of individuals numerous then now they
began their operations which caused confidence again
shake and dstrst arise and II became evident
that Engands financial troubles had but just commenced
THE NEW CHANCELLOR OF THE BxcHEQUrR.
We have endeavored TO show above the monetary
dillon Of England in the year 1915 Right Honorable
Nicholas vanstart had lust been installed Chancellor
of the EKchequer, the successor of Mr. Pitt The for
ner gentleman was strong buloDst and had brought
forward various schemes for the restoration Of the
tac basis He imporcd Parliament 10 annu the
srctions, which simply gave authority 10 the bank
suspend and thus force it redeem Its in coin;
but the bank, as the fact subsequently proven,
powerful in Parliament than tho financial minister
and the restriction law remained in force until the
venience OF the hank rendered It's further operation
necessary.
CONTINUANCE or 1HE FINANCIAL DISTRESS.
During the whole Of tho years 1918 and 1916 the
greatest financial distress prevailed. The accounts of
she failures Of thousands OF the tradespeope the STOP
pages OF hundreds Of country banks and private bankers
during that tmo less familiar all readers
OF English history.
FAILURES OF THE PRIVATE BANKS
Is recorded of OF the private banks tina. failed
that with a circulation and debt amounting TO over
forty thousand pounds its assets found TO con-
sst OF q tandem team and two DOGS Another, with
shree hundred thousand pounds liabilities could pay
ono shilling on the pound And third, that had it,
mites in circulation the Of half million pounds
sterling, unable to pay anything and the may
be said OF some forty or nifty others
EEroRT or THE SECRET COMMITTEE OF THE HOUSE
OF COMMONS.
During the years 1917 and 1915 there was comparative
quiet among commercial classes, although the of
the people still sufferers The Of the bull
honds,s again commenced, and great were their
opportunities that Parliament finally induced ap.
point secret committee TO inquire into the subject Of
restoraon Of specie payments. They made lengthy
report 10 the House OF Commons on tho
oh OF May, 1919. which given In full
In the Of the NEW YORK HERALD
the Goth of November 1895 The report elected con-
siderable discussion the oath and 25h CT the same
month, and terminated in the adoption Of OF
rc ouions by which the bank required after the
10th OF February 1880 redeem notes in gold bars
OF not less than sixty EACH the OF four
pounds shilling sterling per As the standard
of gold loss than three pounds eighteen shings
pr ounce the effect Of the resolution merely to
allow the bank to discount its issues. II was further
provided the resolution that the bank should redeem
It, bills in within the period OF four years from the
above date
DEBATE on THs REPORT.
In the debate the resolutions in the House Of Com
mons Sir Robert Peel took strong ground In favor Of
allowing the bank continue the suspension until he
said preparations necessary for the important matter Of
resumpton could be properly made; and he contendcd
Shat the bank should he forced into any sudden
Traction Of IL ls,ca dinnu,ion Of its discounts
extreme distress wOs1 be oceasioned throughout the
country.
Lord Granville who sided with the opposition In the
House of Peers took opposite grounds and insisted that
ths restriction act authorizing the bank to suspend
which first passed in 1877 had caused all the distress
which had beeu brought upon the country. He sad
ta, urgency could sanction the expedient Of putting
The hands Of the bank directors the POWER Of chang
rag their pleasure the value Of all property and the
price Of all comnodities by the OF their
inconverilbe paper at moment and the contrac.
Sion Of ia the next
EFPRcr or TBE REPORT.
The repor, and resolutions, they were made
public, threw the whole commercial community again
into disorder aud the oe scenes Of failures bankrupt
clos and Reputation, threats mobs riots and bloodshed
werer enacted Confidence the second time lost
ard hundred pound Bank q England note. which had
alta bed the respectable value Of ninety pounds
suddenly fell TO nine I've pounds
THE BANK CONTACTS.
Just previous 10 te ast extension OF The restriction
sc tuo bank fel; alarm about the succcss Of tho
measure and IL conseq unity commenced to curta its
couns and contrac, rs issues bu. the fear
away and It's circulation the cose OF lsls vas expand.
cd 10 s3a sb,sso which vas highest Of bills
o. ever ssaed
COUNTY, BANK PAPER.
During the year 1919 paper 10 the amount Of nearly
snilon and half OF pounds thrown cut Of circula
rfon aud Of such little value the issues Of those
country banks which continued 70 hold on that u wa
ated thai Eve pound would not purchase leg Of