The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-12-07
PANIcs AND CRISES.


PANICS AND VRlSES.
Lecture Of Prof Bonamy Price.
How Nations Become Poor Imitation
Destruction Of Capital.-Abominable
Absurdities Of Popular Belief--Tests
Of Capital in America
Equivalent to the Poor Law in Eng
land.
Prof. Bonamy Price, of Oxford Univer-
sity, lectured at Steinway Hall, New York,
on the Causes of Financial Panics and
Crises" it being the second lecture of the
distinguished Englishman in this country.
The lecture was given under the auspices
Of the Mercantile Library Association.
Among the prominent gentlemen seated
on the stage were A. T. Stewart, Gen. Gil
more, Cyrus w. Field, f. T. Marbury, Col
Richard Lathers, and Prof VanAmrynge,
of Columbia College. The lecturer was
introduced with a few graceful words by
the chairman, Samuel Putnam, and began:
THE LECTURE.
LADIES AND GENTLEMEN: / must be-
gin by asking favor of you, and feel all
the more difficulty in doing so because the
necessity of asking this kindness is derived
from the excess Of indulgence, which L
trespass upon. Last time had not quite
time to state in detail the main PROPOSE
tons connected with the resumption Of
payments, and with your permission |
shall be glad to read them out to you:
|. A firm determination of the Ameri
can people that the paper currency of the
United States should be payable in gold on
demand. A successful solution hinges
mainly on the existence of such will as
basis of action,
2. A fixed day shall be appointed alb
solutely by law on which every note in cir
culation shall be rendered thus payable in
gold,
3. The history of the resumption OF
specie payments in England and the prob
able actual state of the American currency
relative to the wants of the American PEG.
pie warrant the belief that the excess OF
paper notes is not considerable, and will
not require large amount to be redeemed
and Cancelled.
4. Hc sdluc ulStoiy vi CuRiioil ~
sumption shows that no large previous &C
cumulation Of gold will be required for the
operation. When the excess of the &C
and the nation feels that the notes are
really convertible into gold, the paper note
will be trusted and will not be sent in fo
payment beyond the ordinary fluctuations
of business wants.
Tho dot aru,inot finn IF tha nupstip,
who shall be the next issuer of the futur
is practical problem to be settled by tn
American legislature under full consid
Grafton of the actual circumstances Of tn
nation and its currency. But it is vita
element of this problem that the currenc
shall be regarded in no other light than a
the tool of exchange, and that no othe
idea or purpose shall be in any other wa
mixed up with it.
g. A direct issue by the government
radically unsound and Enthusiastically.
:. AS the issue Of goods is attended b.
large profits, and is necessarily a publ
and not a private function. the nation
entitled to the SOLID portion of that prof
s. One single form of issue is the high
est degree.
g. The issue Of notes by the Bank
England under the act Of 1874 present
features which highly deserve the study {
the American people at the present mC
ment.
These features are a. The socalle
bank OF England notes are not issued b,
the bank of England, but by an automa
ton or self acting machine called the 'lssu
Department of the bank of England, whic
is no part of the bank, though it works
the banks premises, and over which ncitl
er The drsetrs Of The ba Have ef asR conro
whatever. e. All the notes uncovered
by gold actually in hand are lent by the
automaton to the bank of England corpor
alton, which puts them in circulation in
return for payment given to the bank by
the public, and subject to be paid in gold
Oh demand. g.. These 5000, 900 are
rendered perfectly safe by the long-estab-
lshed stability of the bank of England, its
banking traditions and habits, and the
large debt of $l4, 100000 due the bank by
the Government a. 1t is not conceiv-
able that single one of these notes,
unless England is the prey Of anarchy,
should ever be presented by the public for
payment IN gold by the bank of England.
VI The payment gwen by the public for
these slo,Wl,pDO of notes is applied by
the bank OF England as capital, which i.
never destroyed, which is worked by trade
for the sustenatiOn and remuneration Of
labor, which is constantly reproduced in
its integrity, and always exists as good,
and property. o. The SPECIALIZED bank of
England notes above these SIS 900, 900 are
covered by gold lodged in the vaults of the
automaton, and consequently are in sub,
stance metallic currency. a. These
si3,OJOiUOU are lent without charge to the
bank OF England out of regard for the ser
Yiees it renders the state for the manage
lnent OF the National debt, and also the
large debt due by the state to the bank.
hentemen, ] nov address myself IN tho
asT9plect OF tins cyeuing-Panics aud Crises.
~ WIS are ultimately connected with
the money market. We know Ia, :.
means an agitation and CONJUNCTION ANA
disorder in Wall street, much cu,,jnp
down OF great fortunes and great Grn,s
great anxiety Of every kind and great di.
turbance throughout the nation AMI
gentlemen, there is secondary element A
panlcs vast deal more juportant tn
anything which does or ever can hammer j.,
W all street aud If was not for The in,,,,r
lance of what happens in this serond ,,a.,
should not have troubled you with an,
observations tonight The whole bent
and effect Of what am to speak "a w,
about Is to transplant YOU as much as nos
sloIe out Of Lombard street, out of VI al
suee'' lnto your country, into your proper
" INTO the estates of your penpie. inf,
wnat Is TRANSFERRING in your industries, wha
is going on with everv I,b,r;,,, -