The New York herald., 1874-12-01
PANICS.
Professor Prices Lecture ~ Steinwny
Hall Last Night-How America May
Avoid Crises.

Hall Last Night-How America May
Avoid Crises.
Professor Bonamy Price. OF Oxiord University.
England. delivered second lecture on nnance.
last night, ~ Stelnway Hall. The SUBJECT was
'Panics and Their Crises.n There was a small,
but very influential audience, consisting mainly
OF the leading bankers and merchants OF the clty.
Mr. Price commenced mis- lecture 10y reading the
following statement In reference TO the .esump-
ton OF specie payment, which, he said, had been
somewhat misunderstood by the statements made
In his previous lecture.
Propositions concerning the restoration Of ,ne
American currency to merallic basis:-
FVst-And, most important, . nrm determina
ton OF the American people that the proper cur.
rency OF the United states shall be payable in
gold on demand; successful solution OF the
problem hinges mainly on the existence OF SUCH .
will as basis OF action.
SeCo,ad-A fixed day shall be appointed abso-
iuteiy oy law. on which every note in circulation
Shall be rendered thus payable in gold
Tird-The history OF the resumption OF specie
pay yments IN England ana the probable actual
state OF the American currency relatively 10 the
wants or the American people warrant the belief
that the excess OF paper notes Is no, considerable
and vii. not require large mounr or them 10 oe
redeemed and cancelled.
Fourth The same history OF English redemp
ton shows that no large previous accumulation OF
gold viii be needed for the operation. When the
excess o, the circulation is cleared away by can.
ceiling and the nation lees that the notes are
really and permanently convertible into gold the
paper note Will be trusted and will not be sent In
for payment beyond the ordinary nuctuation OF
business wants.
FUth-The determination or the quest Who
shall De the issuer OF notes In the future prac
teal problem 10 be settled by the American Legls
ature, under iull con sideration OF the actual cir
cumstances Of the nation aud It's currency. But 1t
Is in vital element OF this problem that the cur
rency should be regarded In no other light what.
ever than the test OF exchange, and tnaL no other
idea or purpose oe IN any wa mixed up with 1t.
Sirth-A direct issue by the government Is rad
icaliy unsound and dunirnstwortny
Serenth Lone single form or issue is in the high
est degree expedlent.
Eighfh-Tne issuing OF notes by the Bank OF Eng
land, under the act OF 1874. presents features
which highly deserve the study or the American
people at the present moment.
F0.st-The so-cailed Bank or England notes are
issued. not by the Bank Of England but by an
issue department OF the Bank OF England, which
IS no part OF tnat bank, though 1t works on the
banks premises, and over when neither the direc-
tors of the BANK OF England nor the British gov.
ernment have any control whatever.
Second-Ali the notes uncovered By gold ac-
tually in hand are lent by The antomaton 10 the
Bank OF England Corporation which puts them
Into circulation, subject TO be paid in gold, II de-
Thfrd-These sl5,oO0, 600 are rendered perfectly
sale by the long established soidiiy OF the Bank OF
England, its panking traditions and. habits, and
the large debt OF eli, 600 900 due 10 the Bank by
the government.
Foutl--lt is not conceivable that single
one or these notes unless England Is the prey of
anarchy, should ever be presented Dy the public
ior ayment III gold OF the Bank OF England.
Fyh-The payment given by the pubic TO the
bank for these Ella 00o, 900 OF notes Is applied by
the Bank oil England capital, which is never de-
stroyed, whicn IS worked by trade or capital or
the sustentat and remuneration OF labor, which
is certainly reproduced In Its integrity, anu always
Sirth- the so-called Bank oi England notes above
these fl5 100000 are covered Dy gold lodged IN the
vaults OF the automaton, and consequently are
In substance metallic currency.
.Sepenth--These fl5,000, 900 are lent without
che rge to the Bank oil England ont OF regard or
the services which IT renders the State in the
management: OF the national debt, ana also oil the
large deDt due BY the state TO the uank.
to Inc subisct he was announced to sneak nnon.
lie sketcned the present condition OF America, as
manifest IN the distress among the mining popula-
tlon Of PENNSYLVANIA and the return OF emigrants
10 Europe. He then proceeded TO show tina: the
prosperity of country depended IN no way
raiely showed that national and personal
countries. Bankers may stimulate speculation,
but they will not look at the great industrial con-
clothing is being worn out tnat men should have
inc means 70 buy more Bankers never ask the
or Se % Dqa
tR question, What are the causes but
Who has lost and who Is runedf In the
been about!'' That is not the case with the Bank
OF England; but that ls called "od Iogyish = but
it never destroys II reproduces. The duty OF tn g
American people was TO watch Indications and
find the clew which Is the cause OF this distress.
Tne prudent man likes to have a 'sand.by." II
every man VIII do this the nation Will oe sale. We
mad a Crisis in ls47. You had a deficient cotton
crop in America and potato rot In ireland. We
made more railroads. and none Of the bankers
were prepared Tor II and none or the customers
were prepared ior 1t. We had counted on pota-
and thnu urnpn TN had
cheap cotton, and IL was dear. Then came crisis
In the money market. So 1t was in 1865; We built
over Europe. WHAT was this bsaa1yinas Y"Hs It was
leaving English goods at Marseies and other
European ports, which were not replaced;
$40, 100000 worth OF goods and you 20.
spacE S2o.ooO,oOo OF gold; You might as well
have got $4,000, 600 worth Of pebbles. The gold
was perfectly useless in America. There was
nothing more impuverishing than gold coin. No
DOUBT tnat Jay Cooke & Co. was last year the Gull
mlnatlng point OF that disaster IN wall street.
But the mischief had been done days before. They
mad been consuming iron and coal upon railroads
and had only lew worthless pieces OF paper left.
Il puy fl00 worth o! railroad shares and get only
five per cent In the year am eos out of pocket.
of the Legislature that the American shall no not
work at that wnicn he can make the most Of and
says II the law does not Interfere you would not
he making these goods at all II you were to try to
Chinese, you would have to give the Chinese
less OF your goods. Protection crlppes you, be-
cause your power OF reproducing that which has
been lost has been diminished. Ii Boston can
make 1t for you cheaper try IT, but II II cannot you
nave no right 10 buy 1t. Is there any remedy
Ihere Is only before you THIS Before you begin to
give physic, get to know what the disease Is.
FIRST ana foremost do as the French people did
IN this last war; The French people starved them
selves and lived upon less ii America aid TINS.
II each man did this, America would come round
very rapidly. Saving as we understand IL in Eng
land is, am AFRAID very rare Ia America. Saving
Is not a virtue practised in America. The form OF
saving tnat Is oi living below your income, is not
nntn n m I ayn
that ne Will not spend every dollar he is making,
then you VIII turn the corner.
Next, better oanklng banking after the manner
OF the Bank OF England. Banking NAV say to q
man, II VIII help you to destroy yourselfn
man may nave onty 4lO 600 aud banker Will help
him TO spend f10000c. The bank NAV come out
rignt, out the man aoes not. Let that be done by
all the bankers, and tney do this to the nation.
Tne bank simply gets tue power to DESTROY. Ad-
ditionai Imitation viii be this OF destruction.
lCheers.) so as TO- tree trade; II you
want to pension Oh New England ana
Panus -lYanla do IL Rien