New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-04-30
History of the Great Financial Revolutions
of England.


On Sunday, February &c, 1797,a cabinet meet.
ing, at which the king presided was held in the
city of London, whereas it was decided that a
royal decree should be issued the following morn
ing authorizing tue Bank Of England to refuse to
redeem the notes in current coin of the realm"
From that time until the year 1876 after the bat
tie of Waterloo, no very strenuous efforts were
made to return to the specie basis. In that year
the public debt for Great Britain had assumed the
enormous proportions of nearly fS65 100000, or
about 81 800, 000,00O, upon which there was an
annual interest of f33 coo 600.
The specie in the Bonk of England had declined
to E10500G00, while it had over 8300000G0 of
irredeemable paper afloat, which was alta discount
ranging between eighteen and twenty-five per
cent. The country bank circulation amounted to
about f40 100000, and that of private banks and
bankers to probably an additional ESQ, 100000, SO
that the aggregate amount of paper ahoat in
Great Britain in the year 1851 could hardly be
estimated at less than 9l20 0000 which is equal
to E600,000,000, and this, it must be remembered
of less than twenty-five millions of inhabitants,
nearly one-seyenth of whom could hardly be
sclassed except as paupers.
The public credit had been very much weakened
during the war, but on the return of peace there
was strong disposition manifested on the part of
the people to restore confidence and bring back
trade and commerce to their normal condition
And perhaps success might have crowned their
efforts If currency tnkers and metallic croakers
had never been heard of; but as those classes of
individuals were as numerous then as now. they
began their operations, which caused confidence
again to shake, and distrust to arise, and it soon
became evident that Englandis financial troubles
had just commenced.
+ We have endeavored TO show above the none
tary condition of England in the year 1916. Right
Honorable Nicholas Vansitart had just been in
stalled as chancellor of the exchequer, as the sue.
cessor Of Mr.. Pitt. The former gentleman was
strong buonist, and had brought forward various
schemes for the restoration of the metallic basis
He implored Parliament to annul the restriction
tinilc 90
pend, and thus force it to redeem its notes coin
but the bank, as the fact was subsequently, proven
was more powerful in Parliament than the finan-
cial minister, and the restriction law remained in
force-until the convenience of the bank rendered
its further operation unnecessary.
III During the whole of the years 1915 and 1916, tho
greatest financial distress prevailed. The accounts
of the failure of thousands Of the tradespeople,
the Stoppages of hundreds of county banks and
private bankers, the stagnation in trade and the
suiferings of the people during that time, are more
or less familiar to ali readers Of English history.
1t is recorded of one of the private banks that
failed that with circulation and debt amounting
to over 100000 its assets We're found to consist Of
o tandem team and two dogs. Another, with
f300 600 liabilities, could not pay one shilling on
the pound. And third, that had its notes in cir
culation to the extent of E500,000 sterling, was
unable to pay anything. aud the same may be said
of some forty or fifty others.
| During the years 1877 and 1878, there was com
paratise quiet among commercial classes, although
the mass OF the people We're still great sufferers
The war of the bullionists was again commenced
and SO great were their opportunities that Para-
ment was finally induced to appoint a secret com
mttee to inquire into the subject of restoration
Of specie payments. They made lengthy report
to the House of Commons on the 9Th of Nav, 1919
which was given in full in the columns of the New
York Herald on the 10th of November, 1865.
The report ELECTED considerable discussion on
the 24th and 25th of the same month, and termina
ted in the adoption of series of resolutions by
which the bank was required, after the 10th of
February, 1920 to redeem its notes in gold bars of
notices. than sixty ounces each, at the rate Of four
pounds one shilling sterling per ounce. As the
standard of gold was less than three pounds eigh-
teen shllngs per ounce the effect Of the resolution
was merely to allow the bank to discount its own
issues. 1t was further provided in the resolution
that the bank should redeem its bills in coin within
the period of four years from the above date.
In the debate on the resolutions in the House of
Commons Sir Robert Peel took strong ground in
favor of allowing the bank to continue the suspen-
sion until as he said preparations necessary for
the important matter of resumption could be pro-
pery made; and he contended that il the bank
should be forced into any sudden contraction of its
issues or dminution of its discounts extreme dis
tress would be oecasoned throughout the country.
Lord Grenville, who sided with the opposition in
sisted that the restriction act authorizing the bank
70 suspend, which first passed in 1S07, had eansed
| ~ we distress which had been brought upon the
country. he said that no urgency could sanction
q putting into the hands Of the bank
s Tue power Of changing at their pleasure
ae vaiue OF all property ana the price of all com
.;s, ~ the excessive issue of their ncontro
| it the next aia ING ooA'iaoa u
Inc report and resolutions as soan ne thev ,vare
naoe pubic, threw the whole comsercial com
mnnity again into disorder, and the oIl scenes Of
iaiiares, bankruptcies and Reputation. TREAS.
Senee S Msa aa a. ,s were
Bank of England notes. which had atta,s5 IN
respectable value OF EOS, suddenly fell to ss5
fust previous to the last extension of tbe rs.
stricssen act the bank felt some alarm about tie