The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-08-09
A Chapter of the History OF the Bank OF
- EmuIand.


An interesting story of the Bank of England
is told in book just published in London,
under the title of "Secret Bank History in the
City:p-
"Tbere is no doubling that the assistance ren.
dered to Mr.. Peabody by the Bank OF England
in 1857 mas been the cause of misunderstanding
in banking and commercial circles, and of
serious and ungenerous prejudice to the Bank
of England; for, ever since the assistance rem
dered 10 MIR. Peabody, everybody has felt war
ranted in applying to the Bank of England for
help, when help was needed; and, being igno-
rant OF the terms exacted from Mr.. Peabody,
the Bank OF England has been denounced, when
insisting on adhesion TO its rule of lending on
securities which il approved although the phi.
lanthroplc American scrupulously complied
with the rule With the view OF protecting the
Bank OF England from unjust aspersion in this
matter, and OF showing tho terms on which il
lends its money in a time of pressure, we shall
trace the outline of that chapter in the Banks
history, with this word of preface, that our in
formation has been derived directly from one of
the principals In the transaction.
''The revolution had done its work over the
length and breadth of the United States; and
one day, while walking to his Office at the corner
of Pine and Nassau streets, it occurred to Mr..
Duncan, Sr., of the hrm of Duncan, Sherman &
Co., that peobably serious trouble would occur
IN LSAdon and elsewhere as the consequence of
that revulsion. Turning the matter over in his
thoughts as he proceeded, the necessity for
prompt action appeared so reasonable that on
entering his Office he called to his son, and
asked the amount of available securities at tine
instant in hand. The reply was 83OO, 900. BY
IL O'Clock the same day his son was steamin q
out of New York harboI in the Cunard steamer
with 93OO,0O securely packed in his pertman-
teau. Arriving in due course in London, Mr..
Duncan, Jr., and Mr.. Peabody proceeded to the
Bank of ENGLAND, and a conversation of this
kind eneued:-I want to arrange for the assist
ance of the bank in case it should be necessary
to protect the drafts OF my New York corres-
pondents.' Certainly, Mr.. Peabody, whatever
assistance you require shall be given with
pleasure But desire the control of a specific
sum, which / am to send for If need it, we
can only repeat, Mr. Peabody that whatever
assistance you require shall be given with
pleasure You misunderstood me. / must
know what can trust in.' We'll, what sum do
you want and tor what period do you want it p
Mr.. Peabody repeated that he wanted nothing;
he merely desired a credit that he might or
might not use at pleasure.
"Then, turning to Mr.. Duncan, Jr., he asked
the amount of the securities he had brought.
we want $780, 900; here are securities for
f300,000 shall at once furnish securities for
the remainder Very good, Mr.. Peabody; but
If you will consider the matter it is not in busi-
1t, and take 1t for period. We cannot tie our
hands and leave yours united. You must take
9200,000 at least and pay us for it, Mr.. Pea.
II body demurred-took the f200, 900, with the
option Of the other f600 000-and in fortnight,
after returning the f200, 600, he withdrew the
whole amount of the securities. And for the
ACCOMMODATION Ln6 DdIlk Charged Jl6 minimum
rate on f200, 600 tor six months. Such concisely
told, was the celebrated transaction with Pea,
body in 1857.
''in America it was thought, indeed is still
thought, that the Bank of England drove hard
bargain with Mr.. Peabody; that the f200,00
should not have been forced upon him; that the
additional $500 900 in securities should not have
been received; and that interest for six months
should not have been charged for money whict
was only held fortnight. On the other hand
among ourselves it has been thought and t
some extent Is still thought, that the Bank 0
England having helped America, it is moral,
bound 10 carry through Englishmen; and tha
it is monstrous tor Englishmen to be refused
after what has been done for Mr.. Peabody
The facts which have been adduced will, W
hope, satisfy English grumblers; and that Their
are English erumblers should, we think, be salts
factory to our cousins across the water. English
men have positively been refused; Mr. Peabod
was merely charged roundly by the Bank O
England. The reception of the additional secu
rites was obviously in terms of Mr.. Peabody
proposition, and on the assumption that tn
further sum OF $500, 900 would be asked. Th
securities secured this additional $780, 900 t
the order of.Mr. Peabody; and though the Ban
of England continued TO hold the $780, 900,
was precluded from lending it to other people.
HoW.a Physician Became Converted t.