The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-02

contraction Of the circulation 1915 and what the ex
ceptionay favored class let Mr.. Hudson Quincy
the Norwich banker the founders Of The fortunes
OF the Quincy family in his speech in the HOUSE
Of Commons on May Is 1878 tPariiamsntAry Dsbatss
1878, PIP. 77s-9l; .sss $500.
now to the year 1875 and 70 this years expert
ence do presume to entreas the attention Of the House
. - Prices indeed became low: but who M
benefited BY their iai Did The LANDED proprietor 70
and exist BY the occspasisaf Did the manufacture
gain rs from the goods uAcallsd fos and rotng in hi
s ~ h. .i =:
poor were sverywheEs starving Thsrs vas unversA
sstfast IN the higher oFdsrs greater subasrassmsn
known in Esssd Tor centuries No~ H. our our exchange.
veSe q par ~ haA suddenly bean brought back 70 ou
ge,dsn pr1css We tried thsn; bat We could not i've
wsped bythsf own gaiis TO advocate the continuance
o. he baak ssussoas bss beg the great Iaadsd pro-
and they win IS tnat she only csss who remained unn
tured were the ufonied capitalist8
On tsok1ng % the rssarns Of the Bank Of England VI
And thas the ameunt o. commercial paper under dis
souna u ths Bank q Ensland which In 1910 had been
80 osooe0 had sunk in lsls 70 &11 lie0oa The cir
cuaiCn % the country baakA which In 1914 had been
ca 7o1ooo. sfsllin 1910 70 4lS. ooe, oo0
the susrsNslos CONTINUED.
The experiment had been tried and had failed sgnay.
eAss-~S-~~1e"S
nlibsrai one. was yet TOO patriotic 70 look with COM
posurs upon the ruin OF the national industry. The
government Of Lord Liverpool dsssrmiasd 70 grant .
second reprieve Of years 70 the symbolic currency
Il brought in bill 10 prorogus the resumption Of specs
payments until July s. 1915 Incorporation itself dared
not press their avors buionst theories to their logical
ccncusou they dared not declare for immediate res
sumption They offered 70 conceds twelve month's
grace, namely. till July 5, 1917 Tho govsrnmsnt
carried their plan through both houses ~
majori,iss Of two 70 one. while doing -
they eager profess their desire to resume specie
payments II the earliest moment that could be done
without running the industry OF the country. Their
difference with the opposition was not one Of principle
but simply one OF prudence, opportunity and policy
Upon these currency debates OF 1916 Sir Archibald
Alison in his shstory of Europe from 1915 to 1852"
(vol l. pp. l23 OF seq) after summarizing the argu-
monts on either sids has the following profound rensc
TONS M "
Both parties we're to q certain degree right and 10
certain degree wrong in the opinions they advanced
Lord Liverpool was, unqussonably right whom he
affirmed that the nation had been saved ~ the snspen-
the artnsments never could have been produced which
brought 1t to q successful issue Hs was equally right
in saying that the rise IN tho price q gold which took
place ia s latter years, owing 10 the Increased
demand for that article OF commerce 10 meet the
sxigences OF on the continent when hostltities
a r
Hornsr equally right when he observed that Tie
extensive issue OF paper during the war was the cause
OF the rapid and extraordinary enhancement Of prices
which took place In every ARTICLE whether OF rude or
manufactured produce while It lasted; that the still
more rapid and disastrous fall OF prices which had taken
place the peace was the rss y, o. ane sss,
which had ensued from the prospect Of immediately
rcsuming cash payments on the termination OF hosil
tes and that by far the greatest evil which mponded
the country the necessity OF paying or IN
contracted and therefore DEAR currency during peace
the debts public aud private which saa boon cop.racsa
cheap currency during the war rho extraordinary thing
IL that when many Of the true and undeniabe views
the subject were entertained by the ablest and best
informed In the country, the obvious conclusions
which flowed from them were. by common consent,
rejected on both sides Mr. Homer saw csafy that we
had been prosperous and done such mighty things
during the war, because had possessed currency
adequate 70 our necessities, and had Anaushed and su
fered during the peace because IL had been suddenly
and violently contracted from the prospect Of mmsdi.
atey resulnng cash payments He saw also that inter-
minable disasters mpended over the country IN the at
q peace currency But neither he nor his
opponents the Treasury bench perceived what
s,dsa. e 'vs y
suhso thai ali those doulties and dangers might have
been Avcrtsd without either risk detrmcn By the
metallic, once nto the bsods q the roverosnsnt and
issuing unlimited amount Of notesMkc hsFv~acn
amount Is might DO adequate % the permanent and
average wants OF tho community. He saw clearly that
oscillations IN the value OF money, and consequently ia
the price Of overy article Of commerce. were among the
most grevous OWLS which aics society. and
dered property and undertakings or every kind to the
las, degree insecure and he thought that he would guard
eeciuay against Thorn BY fixing the entire currency
ON gold basis, forgetting what he himself At the
sne % " sl l Una. so "sr sV snc S
to perpetual variations OF price; and that from
its being portable and valuable and everywhere in
quest 10 subject to sudden and violent changes Of
value than any other article Ia existence. Ho
clearly that the great contraction Of the currency
s s q or M ovs
arising but In the immediate adoption Of such payments
He saw the impossbility OF paying or our debts IN
whole dificulty might be avoided by extending tho
currency, under adequate safeguards into peace He
wa. as much alive as any man % the pers Of sudden
him how feauly those dangers must be aggravated by
the contraction OF paper going on a. the very time when
still greater contraction OF tho annual pro
duce OF tho treasure mines for the use
OF the globe going from the disasters consequcnt
on the south American revolution The truth 10 that
as centrally occurs IN human Affairs, mems attention
was liked exclusively the last OWLS which had been
exprrenced and these had been the runous ris Of
rom e abuse
signals IN France, the Of q whole generation
shut to the Sun more serious and lasting evils resulting
from the undue contraction Of the currency aud the Ak
Ing IL entirely metallic basis OF which Great Britain
was ere long TO furnish so memorable an example.
SECOND Arrsxpr RESUMPTION AND SECOND RRpRrsvs.
Under the two rcprieve the downward course Of
Industry was stayed. The country bankers enlarged
their issues tho Bank Of England did not contract and
rise In prices took placs. Tho home consumption oe
manufscturcs expanded-a sign that the working
classes were employed. Tho throe per cents, which
In January, 1877, were "a, had risen by December
Of that year 70 So Tho bankruptcies fell from o29 in
1915 to 1878 In 1917, and fuuhsrA 1ose in 1873 The
ross aud In both years the amount paid or the
national debt largc-srger than Il has ever been
since The imports from G27. 600 600 in 1915 TO
ESQ 900 In 1915 Encouraged By these signs Of the
times, the Bank Of England made second attempt
resume specie payment In part In October, 1s17 tho
Directors Of the bank issued notice that they would
pay specie for notes Of every description issued prior
January OF that year. The attempt was lailura A
great drain Of sod sct In upon the bank and the
paid specie for these before the cad Of the
amounted 70 eco ooo The result Of this experiment
convinced the government thai would mot DO TO return
70 specie payments July 1875 according 10 the sct
thea In force They therefore proposed 70 PAliiamsn
70 grant the symbolic currency another rsprievs for
tvslvsuontA, or until July .. lS10 Tho opposi-
uon panicnassl conbased and depouscsd this
measure, bus they wore bsassa In the house
u Commons by lea 70 %, and IN the HOUSE,