The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-08-16
THE ENGLISH M1NEY CRISIS
sendition and po~iiian of the Bsnk OF Eng
nnd-The Causes which Induced the Ls,s


sendit ion and po~itian of The Bsnk OF Eng
nnd-The Couses which Induced the t.s,e
Panic.
In the House oi Commons, on The 3ls, Of ruly M
Mtfss brought on bis motion Tor the appointment of a
royal commission TO inquire into the causes Of the lss
pressure IN TIE money market aud the currency laws
generally. AMER preliminary remarks IN iusinc1.
cation ~ hts having tason UP tho qucson--Iecrrn g
among other reaons % the long continuance Of Ga.
pes cent disrount While money 10 be got 1T three
Scr cent IN France, md TO lord Clarendons letter TO
foregn Ministers which, no said had emnepty tended
10 create alarm aud di-tns abroad and promising that
he had raised . question not IN the interest az spocrla
fora aud unsouud reckless traders. but " the Aid work
ans prudent commercial who 10 times OF pauic
were overwhelmed md rgusd by fault ~ their oUn-
Mr. wa,kn described AZ length what ton Per cent
rate means 70 the ordinary traders " the t0uny. IN
tho other side. he showed that the prolts al the
Bank considerably during such periods Inau.
uOnBg among other facts that Nhlc The ay be fore tno
govern nent c.tcr mo Bank rest ws 10 900 nj In
date % the last rcturn had rson 40 90 s20 600 show
ing pfoft OF about seventeen per cent The riuk
capital and that Tho price Of Bank stock he ssl
i've psuics bod ssn from Cs0 Ia 1850 Consequently.
be ar.ued, IL any error Of caution committed ~
tn directors " would he nsf tie public aud In favor
81 the stockholders lie showed next ~ length quoting
The figures that each crisis had been attended With
greater severity IN the rate ~ discount ami thus ls
msinained showed that some cause was at work which
demanded inquiry, and among other reasons tor a coB.
mlsSon he quoted The opinion OF the Is,rlri commit
isc-ihA r. ineec prnca always led To disturbance Of
l'c LABOR markell The worslng classes we've perhaps,
more deeply interested hna auy other w this lnesf,p
pweing on the ncunyenenccs u Ten pnr cent raj. OF
discount he pa'a;ea pp thai u ntrr.o,sd With many
eoua fic business ,r,iobs tha AZ cav, cf.st ~
vantage 70 or foreign competitors who could obtain
snnney ~ three per cent thas VI defeated he own
@hect 70 many oasss BY udreing country b.nkets 10
Aock % latse Gn0uni If untrs witch 4suld o,l.rN,..
return 20 The Bank After discussing Mr nsrae ,sccn
fi Torn ~ Aye by tna he want ~ oapal not III e,,r
penny was tue causs u the Pre- sre he admitted lat
Where he'd been natural dsiprin. causes, s,rb ~
the uAsny legislation III Gle ag, foW ycars vhioh en-
CO, rg reckless and uns0uud enterprise aud Tia OVER.
Won % The i'ucl Liability aci, ma doh'od 10 efIsS
o. Ne credit nanic, wi ch Lsd been gts.nv
aggravated nv tho conduct 81 tie isto toyetn
went IN t0arbing the ciregus aheea II La "a ~.
AZ ~ sfd Why tie Bank had no. followed to Isercs.t
% 1901, My thoy had not ia,fn Eiyana4t 81 ma f8
thMfy fHen thffl hy the government i0ttrv WHY inv
Ind refred ~ afford sufficient amount Of acconmoy,
fcn and be entered into eatOrne arxlmentt4 mo-
shat they had chiefly errra BY Axilg thrr sleuiion
solely on he state u iho baaking reservas us uiGn
th8 " The directors bad Transferred rs 200 600 only
from the issue 20 The banking Department. woud have
the &C, OF 1874 had neither pr vented parlrs Nor
fncuasions IN the a interest urged that an nan.ry
- neceseary 20 ASCERTAIN Nhe.hef no hylres 10 hc
y, or 1874 ,Sfre siil IN proportion win the rnfe rrd
y, n qfactaras Of the county and declared That IL "
&c ernsed the commercial classes warif believe that
~ Bo ise and The government were Indifferent 20 toes
iiancuIt,e
la natural desire OF III mercantile community for an
into lie cana OF Tho commercial distress
nj ths long p,syaIeure OF hgh rate II discount bot
lsy aid not allow that com mission wac The best node
4 nqurv. A commission he 0nted OUT must inquire
lther into principles or fscis III wcse 70 inquire into
y no plies the government w0nd w driven 70 appoint
70 persons whose opinions this question were pcI-
elty well knnwn whnsa ysutir' - W - N&tussV