New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-25
" ENGLAND'S EXAMPLE.'

Mr.. John Z. Williams, President Of the
Metropolitan Bank of this city, appears in the
November number of Old and Neu as the
author of paper entitled "a New
York View of Finance and Banking" Mr..
Williams advocates an additional issue of
irredeemable paper money as a cure for the
evils from which the country is now suffering.
His article is remarkable for its mistakes. For
example, he UNDERSTANDS by one hundred mil
lion dollars the amount of paper money now
circulating in the United States. But we shall
deal here with his remarks upon the condition
of England during the suspension of cash
payments, which may be taken rs a fair
specimen of his method of handling the sub
ject. We quote:
England is often quoted 10 show how easily we too
could to q specie basis by following her example
Such people careful not to refer to the history OF
England when they speak in Mandatory terms Of her.
and disparagingly Of their own country The Bank OF
England suspended specie payments In February, 1797
and did not resume till May. 1921 More than twenty
years OF suspensOn whereas this country has
a breathng.spell of scarcely half longi Thanks to
the wisdom and statesmanshp Of such as Pitt and
ST. Robert Peel the uDwise attempts at premature
sumption were defeated in Parliament whenever at
tempted, several times the case.
BY suspension OF twenty odd years that country had
chance to recover after the long and eIhaustng Con-
tnenta wars in which, England had but few men to
spare she contributed largely in bullion The Govern
ment knew that Engands true policy was to mako gold
80 that other nations dealing with her would take
her manufactures the products OF her skilled labor and
thus enable her 70 the creditor instead OF the
debtor nation OF the world All this, and much more
without the Of gold currency, OF convert
ibe paper And without special act OF Parliament the
notes Of the bank by common consent, were received
by Government and people legal tender for all
debledness.
This paper-money period Ia Englands history may be
re garded prosperous than any other OF equal
duration. Although a serious panic was embraced In
that period which originated In the reckless mlscon
duct Of oint-stock banks still capital accumulated
and skilled labor acquired never before. And IL is
worthy Of remark that this growth and prosperity were
accomplished with paper currency medium, which
other nations could neither contract nor expand.
The example of England, then. and the attend
ing her prolonged suspension OF specie payments should
teach encourage to persevere in the wise
financial policy. tf ...I Ir.r
The history of England from 1907 to 1874,
when the currency of that country was placed
on its present substantial basis, should be
most diligently studied by our writer's and
statesmen as warning of the ruin that is in
store for us if we do not reverse our present
financial policy. The index of any good his
tory covering the period spoken of by Mr.
Williams is sufficient to show that the facts
are directly opposed to his statements.
|. Who was this Sir Robert Peel who is
spoken of as the inveterate enemy of the re-
sumption of cash paymentsf Does he mean
the father or the sOnf The former we have
never heard spoken of as a statesman. The
latter was the author of the act of 1919,
which provided for the resumption of cash
payments by the Bank of England In
his speech TO the House of Commons at that
time he frankly confessed the error of his
former opinions and his adhesion to the prin-
ciplcs embodied in tho report Of the Bullion