Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1873-10-29
Londonss Wall street.
xAs hank 81 EnylanA anaSee1ays-
tories 81 che EngifsA Wiener

A0n0OUfS " du
N. Bank u EarlumA aaaSneMys.
sertes - che EnUifsA Msney
Markets
Mr.. Walter srehot, an ERglishn.an
of considerable literary reputation
has latelv written 4 book Called
uT. lombard street. - Tic Londcs
eonsyslcnf for Wall street-m wilcl,
. Id ciycs Z full, clear aad popular nc.
conut Of that mysterious thug thu
money market. We are given To
maQntfyiny the Importance Of tina,
which we do not clearly understand,
aud evea bankers are prone TO lent
their help to the vague uncertainty
In which the secrets of the inOac.
market are shrouded from tic vulgar
gage. Mr.. Bsgchot has a TASTE for un-
ravelliny mysteries and fors showing
that there is always a plain truth be-
hind, which he delights III telling IN
very plain terms. lie wrote an cx-
cellcnt book on the English Govern
mont, III which he uncovered many
things that had for years passed a
profound secrets of state, and now
he has done the same thing for the
money market, where governments
are often now-s-tays made aud lost.
Ills accounts of tho Bank OF England.
with its conservative system, shows
that II serves an excellent purpose in
keeping a steady balance between all
the lenders and NIL the borrowers
who como to LondoG-ihe n class
TO get money. the other to get the
Lest price they eau for it. lie shows.
TOO, that the money market, under
whose potential influence We all 1.-Two.
is, after sill, of comparative recent
creation, born rs late as 1879. and moi
with the canny Scot, William Pat
ierson. who really iuuMdtd the Bank
Of England in l6)4. The carly histo-
ry cf the bank is curious and inter-
csfii.g. In the library which Mr..
Stephen Colwell formed, and his fam
ily gave to the University, there is =
collection of over six hundred scpa-
rate pamphlets about the Bank of
E.Ii-innd, but mos; of them relate to
:is earlier history, and that has little
or nothing to do with the part il
now plays in the money market OF
the world, since it has become the
regulator of Lombard street, and
Lombard street OF the world, i'll al.
"a iS"f ot'St
The history of banking gocs back TO
the curly days Of Genoa and Venice.
Amsterdam and Hamburg. but thos,
have either disappeared entirely o,
they are OF small Importance now ia
the actual control OF capital. Ii has
gradually centred in London, brCugh:
there patty by the enormous accu-
mutation OF wealth and Tic control ni
it i'll English hands. and, finally, by
the destruction of French credit, or,
rather, credit in the safety of the
Bank of France by The recent Com
nuMist troubles in Paris. The Bank
Of England has to make no small
sacrifice TO hold its place as the yrea;
governing body of Lombard street.
for while Younger banks, such as the
London and Westminster joint stock
banks, pay twenty per cent. divi-
dcnds and increase Their capital by
their earnings. the Bank of England
sticks to the good old legal rate OF
SIX per cent. ; but then i; is obliged.
not by law oil even by its wv regu
lations, but simply by custom and t"
preserve intact lis power, 10 hold -
reserve of forty or fifty per cent.
while the joint stock banks trade OF
ten or fifteen per cent, and look t.
the Bank of England both for caution
when there is danger ahead and fol
help when the danger actually comes.
The wonderful conservative power of
a private institution thus to resist
temptation to great profits for Ill,
sake of great stability is cmincnt!:
English: but then it is also due 1,
the fact that ever its large capital of
nearly a hundred million dollars is
owned by men whose wealth is so
largely invested in other enterprises
that they are willing TO take Il SINAI.
interest from the bank so rs to max,
u large profit on their other ami inor,
speculative properties. The fact thai
the Rank of England is a private cor.
poraiiun is often lot sight of; bu.
Mir. Bagehot shows clearly how en-
tirelv distinct its Banking business
is kept from the agency entrusted t.
it bv the government. The enor-
NOUS operations of the London
money market of Lombard street arr
largely due to the sense of perfcc,
confidence inspired through tbs
whole financial world by the L
of the Bank of England fer NOR
than confidence transferred &c New
York Will. Wall street is SO largely
subject TO the operations Of "r!ngs"
and .'pOois;" aud yet the 9rowii
and development Of wealth in til.
country are SO rapid that sanSuint
people think they see signs of 4 fu.
tire and not very distant day whci
New York shall control the money
OF the world, as London does to
day. This control, however, does
not come merely from the superior
wealth of London itself, for, great
as it is, it i, not u 1.-THE of tho money
dealt in every day in Lombard street.
1t rests upon the fact that l,cop.,
of all countries trust implicitly their
surplus money to the keeping OF Lon
don banks and bankers, and in turn
20 to them just rs implicitly fol
money when they want it, knowing
that, no matter with whom they deal
after all and back of all, there is tht
Bank of England, which takes care O
the money market and prevents an.
possibility of such combinations a
we are constantly hearing of III New
York. BY raising and lowering II.
rate of. interest, and by doing it fire
quently and always keeping it adjust
cd to the actual needs of the none
market, it is i'll . stale of constal
wholesome activity, and it is not, Xix
Wall street, as we have too niue
reasonte know to Our cost. made til
football of desperate spcculatori
The account given by Mr.. Bngehot {
the relations of the great elements
the money market-the Bank Of Ens
land, the joint-stock banks, prival
bankers aud bill discOumters-show
that we have all these except til
Bank of England. 1t Is like havin
all the parts of a steam engine, all
setting it to work to find that rhcl
Is no governor, aud, with about II
same result, n want of control, pre-
ducing a waste of fuel, an incquali'
in the amount ofpower, and just sue
awant Of confidence as we see in o,
own money market. as compared
the safe aud steady movement
business in Lombard street.
Some one has been writing OIL ma
esiiue disadvantages, and points
the experiences of u school-h"y
illustrative al the fact. "Can lie,
SAYS this wr,'cr, ''dotlse his calcnl,
H." counpininI"" of q sick. l:cadach
on | brcasf a IN" Oh toast ans. tea
beu? Cas- -" lid. over his untrsn
lated Virgil =. rtitiin" az new Goa