The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-16

pated in point OF tine and on the LIST OF May 1921,
the Bank OF England recommended the payment
mind that during the many years OF legal suspen-
sion OF specie payments bank notes were about
0ne-fourth OF the time at par with gold.
SIR ROBERT PEELs SOUND VIEWS ON FINANCE.
brief glance at the discussion that took place
In the English House OF Commons in 1873. when
the bin providing for the resumption OF specie
payments was introduced, may be appropriately
added 10 the preceding. The late STR Robert Peel
introduced by Mr.. Horner IN ISL but the lapse OF
time had brought HIM to modliy mis- views. Horner
died IN 1917, and the banking committee appointed
Mr.. Peel Its chairman, VINO was then recognized
as an able deDater and administrator. In MS
speech On the expediency OF resuming specie pay.
Parliament in favor OF hard money. But an
opinion, he remarked bad been avowed which, II
" csa sad v ns possbe
tnat the House regarded the system which had
existed several years as one that could be con.
tinuedf Was IT possible Tor them 10 suppose that
they could go on without q fixed and
METALLIC STANDARD OF VALUE
a. the basis OF O circulating medium Sucn
standard had been fixed by every nation IN Eu.
rope, and was recommended on the authority OF
every writer Of reputation All the witnesses r eH
Mr.. Locke, newildering himself and his readers
with metaphysical inquiries on the same subject,
lau0ns on the abstract theory or representative
value and admit that the OILY standard was
II gsa T. the
Should be OF gwen weight and nneness, ana
bear with it an impress which should secure the
holder with respect to those qualities. Mr.. Peei
knew OF no other theory upon which the currency
OF the country could be safely maintained; but
circumstances had led to the temporary introduce
ton Of system which some asserted was more
advantageous. Inc paper system affected every
transaction OF commerce.
as Wen as at home, and every foreign Jew knew
how TO detect its fallacy. 1t was well known that
eminent were not made on the security VI any TAX
or duties already imposed. but in anticipation OF
Tor the ment OF the bills which the bank held in
acknowledgment OF the debt created by these ad-
vances How. then. could II be said that the issues
or paper money we're regulated by the demands
and necessities of the mercantile world HOW
could they distinguish between such advances and
a paper circulation emanating directly from 1t
There was, indeed, this difference between them
that II tue notes were issued Immediately by the
government instead n OF lnteImediately throMS rough
he saved. But again, IT was contended that IT
was very different from forced paper circulatlon
Was 1t not
RECEIVED IN ALL ORDINARY PAYMENTS,
and had he VINO objected TO receive IT any remedy
But did it follow because the bank was solvent
there could be no overissue OF Its paper2 II
solvency alone was SUFFICIENT proof there was no
excess OF circulation. the theory OF law was just
and the land, well as The funds, might be safely
converted into a circulating medium. There was,
in fact, no test Of excess or deficiency but COM
parison with the price OF gold. In the year 1915
English commerce was in full activity, great
impulse mad been given, speculation was at its
ample But In 1915 and 1917 came the natural
result OF these overstrained hopes and exertions.
An immense accumulation OF property had taken
place, for which there was no demand. Prices
fell. the banks stopped their issues ana thousands
were in a moment
STRICKEN TO THE GROUND BY BLOW
which they could not loresee and against which it
was Impossible to provide. The amount OF paper
in circulation, Mr.. Peel said Increased In three
years to S145 600 600 from Sis 100000 in 1914. In
1917 trade revived, and importat0ns were made
from all parts 81 the world. Many were deceived
by nominal profit which, in truth, resolved Itself
into an excess OF currency. and the same scene
OF distress and embarrassment was renewed. All
this overtrading Was productive OF no advantage;
but, as respected
THE LABORING GLASSES,
1t was attended with incalculable mischief The
unequal and nuctuating demands Tor labor
one period wages were TOO nigh: at another there
was employment The rapidity with which
these changes followed one another defeated all
private ARRANGEMENTS, and frequently over
wnelmed the laborer with want and misery 1t
was one OF the features Of an excessive circula-
ton and that distinguished 1t rom the ordinances
OF nature well as the more provldent institu-
tons OF man, that it involved no counteractlng
principle to the evil which II created
THE BILL PASSES BOTH HOUSES IN ONE DAY.
Mr.. Peel concludes by saying that 1t was OF the
highest utility that the measure should pass as ex
pedltlousy as possible. He therefore hoped that
1t would go through its several stages at once.
Mr. tafterward Loru) Brougham objected to such
a breach OF the forms of the House but after sew
eral members had expressed opinions clearly in
favor OF the bill it was read three times and
passed. The same evening 1t passed The Lords
under q suspension Of the rules.