The New York herald., 1866-05-27

The hank OF Engband.
TIM svsPESsIos or THE cHARTEn ACT.
The following % copy Of the letter addressed iss
Bank OF England 10 the government with copy OF Ear
Russell and tho Chancellor Of the Exrbequers letter Ia
reply authorizing the Bank Of England 70 extend Ia
BANK oY EsoLAsp, May II. 1890
sR-wc consider IL 10 be our duty TO lay before the
government the facts relating TO the extraordinary de-
mands for assistance which have been mado upon the
Bank Of England day in Consequence Of tho failure Of
hessrs Ovcrcud, Curney 4 Co.
We have advanced TO the bankers biilorokers and
merchants London during the day upwards of -four
mos % sterling .pon sne se.any Of s s,1ea *
day, and which, therefore, suppose would be
sufficient To meet all their requirements; although tho
proportion Of this which may have been 10 the
country must materially affect the question.
We commenced this morning with reserve Of f5 727
600 which has been drawn apoo 20 'ns oo %s
evenining, making fair allowance FOR what may be
remaining at the branches.
stance, and unless the money taken from the bank
wcntirey Withdrawn from circulation t~re II no reason
TO suppose that this reserve nsufcteua We have the
honor 70 be, Sir, your obcdcnt servants,
j. HOLLAND, Governor
THos NEWMAN HUNT, Deputy Governor
The Right Hon the Chancellor Of
the Exchequer, n r., Ac.
To THE GovERsoR ASD Dsrun GovKssoR OF The BANK
GKSrknEs--we have the honor to acknowledge tho
receipt Of your of this day the Chancellor OF the
Exchcqucr in which you state the course Of action at
the Bank OF England under the circumstances OF sudden
which have arisen since the stoppaQe OF Messr
oyerend, Quincy Co. u.mited) yesterday.
stood so recently as last nigh, Al sum Of about yc mil
lions and has been reduced in single day
By s &. srSs g the sss ss
anxiety To disaster ~ little than onchaf OF
that amount = laciual for London and estimated
for the branches not greatly exceeding three millions
The accounts and representations which have reached
her Maes,y's government during the day exhibit tho
trw and apprsh,nnon Indeed depua,ions composed OF
persons of the gycatess weight and influence
and representing alike the private and joint
stock banks OF London, have presented them
seYss s,, a,.nm,y "sS w,n snrn,ns.s the Of
some Intervention on the part OF the state 70 aay the
amounted through great part OF the day 70 absolute
psnic
There are some important points IN which tho present
crisis dfsr from thos, OF l4I and 1881 Those periods
peiods Of neontte ds'e", ea he rai c.s'ideva-
tos @ tanstn0 oredo does n@ npPed o Ad~ Dr." m
Uived IN them, A. Il Is IN the present cri.ls.
Again, the course Of slars was comparatively slow
and measured whereas the shook nss IN tns lnsunoe
arrived Win an intense IApiuty Ama 'no opPo''u"'S 'o'
lastly the reserve Of ihe Bank o. Ensland hs. suffered
dimnn,'on without precedent relatively 70 ,he time IA
when IL hAs Deen osovsht aoou. anu w WV esPeoAv
o. ,ni. e,csms,sncs ms. % ss.,, M. .Ahno. n
ooup. that ', - 'nei. guy 20 suop', s,n. sesy .n'
measures m % which seem 70 & rem oe. S 70 Go
pose .ne pubic n,nn, ana 70 a,e" ,ne sm"1s snon
may threaten faae sna he S ,,'.no.,
OF tne BANK o. Eneiana' pIoceeanx upcn soe wuasnt
nlcs OF scuon " .n,cn 'ncr sam u.tIs.on s usually
eoy.lneo, sns hna 'n.I W o.ar. " .sc ~ IN" ~, "
Ies.ina.c oomnneI.e' ,.1as 1, " ns ~. ~
eoans and advances upon apgrosed securities 20 AZ 70
her mass,y's sovernmeut rscomme sSss ,s necessity
shoud be met upop lis occnyr nee and in
thai eypnt thew win moi fail 70 make on 10 PHsiis-
uuene eor - ssuctiou
No such discount or ADVANCE however, should h.
snnted 81 rste Of interest less than ion rev cent and
her Maicssy's government reserve 70 theu,seives 70
recommend, they should sec nt, the impoAhon of .
lficr ded uctIon by the hank of whatever n NAV con-
slider TO be fsr charge for Ia risk eHpense and trouble
W. Ssvs ,hs hono, 70 M ssp,,sm.a Won, oscd,cn, .sr
vsnls Rts-EILt
W T. GLADSTONE
m. or..., .,....,,,s.... 4. ..,.,,,sa y, A.. ,o,
. .ne vs.s.. ,.. - . . sJp1 W WV ""
.o",ns s ss.1 ssa NJ Aron'pnny.n. % ~ s H. -
]" ns h'on nos "a. nusshl asp thh H""f NOS w.
u,,
NJ Led ana a,, u.x,ng i.,a hssors "a. C!m,t M
ny i"u snu su -nss,ns ,s'u oo'o.o ns .o'Is ~
prec.s VOC ,.''er r''sea . ,.o" you y.reIaAy WI
!s-p.s. p 70 IuI'ner nsse n"ss nsoIy psy'n. ,,'s
honor 70 enc'nse COPY o' 'ne oI ,hs cou
uefeupon- We nsvs .ns nono' o "e' my bDfu Ann o"
'''' "''' '''' n l. HOLLAND Goy,r,o,
rno ~ hoSr, pepuy eovefnot
sera r,,.s w s.soLr, y, ,ass TO- n.. -
~ .our OF Difecsoh OF "s nsns On 'nfuruv, 'n'
izh OF WAY rsoo -,
HsoVcd ins' ,ne ooveIno'- .o ieqnss'en W MORN 1
the nrst Lord Of tho Treasury and Tue chsnesof the
sith inc 'stef aadiesseo 70 tnein yes,efnay s,,
,na' ~. % ra's ~ -, @ on ,.,n
POI hssing more man binev'"e aAys " run "e 'ss''
from 'to ~ per esnt ,ox, cu,.., s.-.,
h~"""Sp 'n'nn' secretary
rKEScH OPINION ov rBE BANK or ysoLasp.
pari. NAV I2l correspopdence of the London Time.
The mode in which the Chancellor Of the Eroheqner
employs h surplus revenue does not meet Nth the ap
proval of a writer In the Journal do Dsbas In q long
article signed secretsrs dc is Reduction" he revers
10 the old charge about the governments fuI indebt
sdness 20 the Bank England and the consequent in
jury To The commercial interests OF the British empire
when the Chancellor of the E,oheq,es has moro money
than he knows vhst DO with he forthx IN himself
" lowering the irnposis ON scr articles sur
plus previously obtained applied 10 the reduction
OF the publ, debt by the government broker buy M
10 stock which he only spscie. Of siDk ng
fund the English admit o. u Mr. Ciadaions
follows the old plan the pressst eonjunctnre he viii
buy up $50 0s0 Of oonsoE The writer reserves for
future occasion ,tLsr mode ~ pro- .eding Which tho
fertile mind ~ Mr. Gladstone has conceived B order
sttain more rssdiy the object he has Ne
siders however that would BE- mach Afys1ta-
frous Tor tho industry ard commerce of tngisbd
ihosa surplus funds employs another variety u
tie pubic debt The state has long bsep indebted 10
the Bank of Ensland . considerable sam--pp, leo
than eleven millions sterling Those eleven Millions
h. NJ han. A ~uf In