The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-06-28
The Money Crisis.

POSITION OF THE BANK OF ENGLAND AND ITs RELA-
TO THE GOVERNMENT.
In the House of Commons, June 10. Mr.. Grant ssked
the Chancellor the Exchequer whether If the Bank
England to reduce tner of discount beIow ten
Government letter OF issuing larger amount of notes
ccmmelcla circles that the hesitation OF the Bank of
so much to tie actual pos ton Of business as to tear
on the part OF the directors that they reduced their
upon teem by the GOVERNMENT letter would be at an
end, and the letter itself would become null and vod
The Chancellor of the Exchequer-Ih question put to
me h one OF great mpor anee and will endeavor to be
enghy he ques ION SPEAKS
Ia n % e tee @ % 2 hs and hug
may seem to be piece of mere verbal criticism o
important that Should be strictly accntae in our
teraned &o powers properly ca led can be
by Government letter The letter to which the homo
Table member alluded an engagement the part of
the Government in certain contingency to make GER
themselves power in the ma which would euabI 9
them1o confer powers upon others | WI |, therefore
manner in accordance with what take to be his mean
m M @ e IN e ven of 6 y the
bank OF the rate discount to aowe rate than ten
question Of the interpretation OF a document and
nothing else But the honorable gentleman , Is quite
upon document Tor which we are ourselves RESPONSE
eter ony s sp plies to advances Which We're made at
period when the rate Of discount at the Bnk OF Eng
eag sment is limited to the PERIOD while tne Bank
sncas tHeSr Rea fRs Vii observe SSS that
| Distinguish between the question he letter
which has been issued and the policy OF any tu-
action Ii the Bank OF England found that cir.
cumstanCes such to rant reduction of the
of interest IN my opinion this lie ter would
be in force. But If / am asked what the view of he
ent would be any subsequent circumstances
which the Bank of England might 1nd IL neces-
sary to raise Its interest again-(hear hearl-my an
would be that the new event must be dea with
t. merits and that the same principles which
they have aated in this would govern the admin
istrltion in any simi contingency. (Hear hear)
Nr HopknsOD asked the Presiden, of the Board of
Tr de wis ther in order 10 mitigate the Inconvenience
arising the recent failures OF ban ing and discount
companies her bajestY's Government w6uld bring in a
bill to enable ofcio liqudators of such companies,
when In course liquidation under the Joint stock
Companies act issue to depOstOrs end other credl-
IoIs certificates Indebtedness and to render such
ceticates and the debts thereby certified transferable
by Endorsement
cient ground had been made out Tor special egs alton.
The Government were not, therefore, prepared to bring
in bill on the subject =, ,-. ---, . =,
trOduce with the ont stock COmpan es act OF 1862,
such medicaton as would enable limited liability
panes prospec tivey reduce the nominal capital and
proportionaly the denomination of their shares
ing all the rights and securities OF existing credtOrs2
r. NJ Gibson said thar at the time he had thought
there was no insupeIabe objection give powers TO
companies 10 reduce the amount o their shares con-
stfny with the rights OF the creditors but at
he did not clearly see his to that OBJECT and he
could not therefore promise to bring in bill upon the
subject