The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-12-12


history they might learn the danger and
imprachcability Of their course. But they are
for the most part mere theorists, superficial,
people or one idea, and incapable Of learning
either from history or experience. The more
ignorant they are the greater their professions.
and the more noise they make. The news
paper organs In this city OF both political
parties, and portion OF the press elsewhere,
kept M constant cry until lately of on 10
specie payments Though some of them have
abatei their tone, and show signs Of change
since public sentiment and the representatives
Of the people in Congress have declared
against their theory, still the radical Chase
organ here keeps up the senseless cry, just as
it did the "On TO Richmond cry" which resulted
in the Bull Run disaster Strange to say, these
resumptonists take their ideas, such as they
are, from the same class Of theorists in England
who brought that country to the verge OF
revolution, and who have burdencd it with a
stupendous debt that can never be paid.
The same causes operated in this country
and in England in causing suspension Of
specie payments. Agigantic war in both cases
that begun in 1889 soon set Europe in a blaze,
and England was plunged into long and
exhausting war as tho consequence. Pitt CON-
menced the an-Jacobin war in February, 1898,
and in February, 1907, Cabinet meeting was
called in London to deliberate on the financial
difficulties of the country, and Abe result was
specie payment was suspended the next morn
ing. Paper became tho currency. and re.
manned SO for twenty-eight years. "This admir-
able system (of currency arose from absolute
necessity" the historian Alison says, and T" it
brought England victorious through the war;"
No serious efforts were made to return TO specie
payments while the war lasted; for that
was an impossibiity. The war ended with
the battle Of Waterloo, in June, 1916. Then
the bullionists, backed by tho bond
holders AMI great capitalists, commenced
to clamor for resumption They insisted
that ii ought to take place six months
after the war closed. The government yield
ing to this pressure, fixed the day OF resump-
ton in July, 1916. In 1916 gold rose 10 forty
premium. We have not sufficient data to state
what the amount Of paper circulation was-Bank
y
notes and all-but there could not have been
much less than we have now in circulation
The forts to force specie payments, therefore,
Immediately after the war necessarily proved
disastrous.
Soon after the Bank Of England began 10
contract, in accordance with the action of The
government, agricultural and commercial die
nf oIapt al .iu
Mr. Tierney stated from his place in The House
Of Commons that 'the people Of England were
suffering more intensely than at any period
since the Norman conquest" The bankrupt
cies in 1916 were two thousand and eighty
nine, being an increase OF fifty-lve per cent
over those in the preceding year. The manu-
featuring, commercial and agricultural into
rests all suffered alike. The consequence was
that the government had to bring In a bill to
postpone the resumption Of specie payments
for two years, till July, 1918. Under
this reprieve industry revived and the
downward course Of the country was arrestcl l.
In the first of these years-l6l7-the bankrupt
cies were nearly fifty per cent less than in 1876,
and there was still further decrease In 1913,
the year following. Trade, commerce and in
dustry OF every kind revived when contraction
ceased. But the resumptionisls were not con-
tented with this encouraging state Of things
and the Bank OF England made another effort
in October, 1917, to resume specie payments.
But this experiment soon fa;lel, and The gov
ernment was then convinced TINT IL would not
do to attempt to resume at the time fixed In
1878; consequently bill was brought into
Parliament anl passed extending the time to
July, 1919. Th'n, again. as The Prince Regent
said to Parliament, the commerce and manu-
tactrres Of the country were in the most -four
ishing condition" The government being dis
posed 10 act upon the principle Of letting well
enough alone, wished to postpone the forcing
process of resumption; but the bullionisis were
powerful and carried resolution in Parliament.
which was introduced by Mr.. Peel in
My, 1919, providing for q partial resump-
ton in February, 1920, and for . total
resumption in May, 1921. Immediately on the
passage of Peel's bill severe distress and fear
ful riots began. To uso Mr. Alson's cx-
pressive language, the industry OF tho nation
was speedily CONCEALED rs lowing stream is
by the severity Of an Arctic winter" The
government felt sorely the effect Of contrac-
,on, as we'll as the people for the revenue
fell far short OF what had been anticipated
II was not, however, till several years after
wsrds-that Is, till lS24-that specie payment
was entirely resumed. Eight years England
had been passing through this struggle, aud
then in the end what was The consequence
The terrible revulsion Of 1925. when The mos.
unprecedented suffering occnrrel. The ruin
was universal, except among the bcndholders
and the very rich. The foundation Of that appel
ling paupcrism which pervades Great Britain,
| end has ncryaded Il ever since was ihan laid.