The New York herald., 1867-01-31

70. tSs nrsc. metals bv The British government was
almost unmited and thus the price Of gold ws q on:
time enhanced 10 f5 I'D per ounce While this great
drain Continued there was very little iefs tho homo
circulation but bank notes being PLENTIFUL the pubic
experienced no difficulty IN carrying On me internal
people thought about the prios OF gold than
about the price Of diamondA
During ihai period labor was generally in plentiful
The war terminated in 1915, and there was an under
months later but there many difficulties 70 con-
tend with and the act did not cease until 1873.
rIAss Lam TO sss1o.s nMALLlc ousRxscr !.
Parliament IN 1919, various suggestions were offered
We Will oonaes ourselves % noticing two Of the plans
1sl Tho reslesaioa * the system Of cash payments
As Il had existed In 1907.
2d Psel's plan, By which gold was % BE- assumed q
money value q everything else and BY this plan spe.
cidc piece o. gold weighing dwta gr and Traction
out the sscoas ps. i w:s necessary that the market
a2d l1s lo,<d per ounce Tho bank directors were -
contrscting o. expanding the issue OF bank nosesl
when the bank directors heard that this pan naa
oeta,ned favor with the Psrismsnssry Uommmsss
wherein they expressed their fears that n this plan
adopted would inct great distress upon the people
OF the kingdom n all its relations Of agriculture manu-
factures, commerce and revenue" We would invite
particular attention % tho prophetic words Jus. quoted
directors many able speeches were delivered In Psraia
msns against 'Peels plan. Among other oppcpents 70
told his that the would very greatly increase
the value OF his own property but be very injurious 70
tho nation and presenting petition .sns ms sons
Of London, he supported the petition with all his
influence.
SERIOUS CONSCIOUSNESS or FEELS MEASURE n
Peels bill however, allowed to pass but II had
beco the law than the predictions Of those
parties who had opposed Il, became verified When he
introduced his bill into Parliament, tho amount Of
bank in circulation about f25 600 00o and tho
financial operations OF France during 1917 and 1873 IN
making new gold coinage, had enhanced the market
price SIS per ounce but carry this scheme
necessary for the bank directors to provide gold
bullion in exchange for bank notes at f3 los Cd on
ounce and after May l, 1922. On and after NAY l.
1928 the Bank Directors required TO provide gold
In coin at the rate OF f3 l's l0ssd per ounce The
Bank Directors thus required by Pees act to force
down in q limited time the market price OF gold from
"a Is TO 60 lis lokd per ounce There were only two
WAYS which this could be accomplished The Directors
either the supply Of gold decrease the
supply Of bank notes. and they could no; increase the
supply Of gold they were compelled to withdraw bank
notes from circulation which they accordingly did by
reducing the note circulation from ELS 100000 to
900. The bank directors and other men Of
monetary experience orcsaw this necessity but Peel ia
his ignorance OF the natural effect OF his measure,
had assured these practical that they were quite
mistaken and that so Ear from there being any necessity
for the bank issues TO be reduced no could
why they might not be increased He also said that IL
mistake 70 suppose that large increase OF tax
alton required increase in tho circulating medium.
Peel was young man when he made this assertion
ON the currency question he was very young man IN.
decd kl
force the price of gold whom the law had made
II the absolute standard for determining the value Of
else to fall Immediately from ten to twenty por cent
Great numbers OF work people were consequently thrown
oa, Of @ a., and & within three - months mont o. the
Manchester took place. which ended deasr0usly, and
which Is historically known as the "saDchester mas
Bacre Farm produce In like declined in money
value value of money increased but not quite
rapidly manufacturing products Tho ONLY property
which was enhanced In value was the funds In Ireland
condition OF the farmers most deporabe. The high
price Of agricultural produce which had prevailed during
tho had stimulated the irish farmers 70 invest all
their land in which they were greatly assisted by the
local banks OF Ireland but the great decline which took
Ysss Y after she passing q ne &C. g
banks As many as eleven banks failed In ono week
The pressure upon tho farmers sndhe iaboren contn
In ireland in the summer Of 1874 famine arising not
from failure Of corn crops but from lack Of money In
February Of that year Lord Liverpool Prime Minister
Of Great Britain stated In the House Of Lords that the
distress complained Of py the farmers Of Engand was
owing TO the excessive production Of Ireland and In
famine dying for want Of food mot having the money
whsrcwith TO purchase It.
The more the manufacturers and the farmers q.
they got for them. Every ono who was actively en-.
gagged The empoyment Of productive industry found
his property Stripping away from him without knowing
ooNCxRNrsG DASH rAyMRns
IL may b. asked not the British government
morally bound 10 restore the system Of cash payments,
the money had boon borrowed during tho war with
thar understanding i u true Pitt and bis colleagues
properly controlled paper currency couid not then
have been forcsccn We think therefore, after the
Try sd % % rs
by paying them additional interest rather than 70 have
tsmpered with tho currency.
PR0cRusraAr OF 1919
has been that whenever the commercial nations Of the
world could purchase other commodities IN England q
rate which cheaper them than gold 1t the mint
price large and useless stock Of gold has accumulated
In the Golfers OF the bank OF England; and then when
bank directors have had permission issue them; but
whom the productsof OF British labor have become some-
what dsarer than gold a the mint price, then BY with
drawing gold from England the foreign merchant has
been enabled TO purchase Herewith manufactured goods
cheaper than In England and then the Bank OF England
Ss q notes
checked just u the time whom her customers had most
need Of them, money panic sooner or later ensues
II Ia clear, then. that gold being fixed In price 10
liable 20 be taken from the country should there bs
var, q denc ent harvest cotton famine, rage
the exchanges be adverse Now, rs drain OF gold
that always prccedos scramble for gold bank notea
convsrtioe into gold and there would not be scramble
DRAIN wsare therefore led the opinion that properly
controlled paper currency Is the best 10 free from
this liability 20 foreign drain England does Bot drain
America OF her grsencacks But % rssus the nara.
tive ~stt4 M4$ -
PArSe CURRESCr aScouRAoEp.
II was enacted by Pecls bill that one pound notes
should altogether cease in 1924, but lord Castle
resgh having expressly declared that the dis.
tress OF aercuture was monetary and that IL must
be relieved by monetary measures, several measures
introduced into Parliament for the purpose OF
couragng inc essed issue Of paper money; ono ol
these TO legalzs the issue OF one pound
notes until the year 1898
BY this and other having similar tendency,
the issue OF incre ased amount OF paper money
encouraged BY thus legalxing the continued issue OF
pound notes the public led 70 believe that the
had discovered that the intended suppress
OF small notes unwse. and that u intended,
BY this Temporary measure, prepare the way for per-
petuatDg the Of them In circulation Acting upon
this assumption, bankers throughout the country became
liberal In their odation 70 their customers
and the money in circulation became increased and in
the course OF two years 600 OF money became
added 10 the active circulation " the country BY this
means agricultural produce obtained . higher money
value. and the condition Of every branch OF domestic
industry partook Of the same Improvement
PANIC or l82e-czrrrcAL cosDsrToN o. KS0-