The New York herald., 1875-10-19
BENJAMIN F. BUTLER.

GENERAL BUTLER's sPEEcH-THE ESSEX STATES
MAN IN REPLY TO THE HRRAID's cRrr1.
CIsMs-THE SUSPENSION OF SPECIE PAY.
MENT' BY THE BANK OF ENGLAND.
OCTOBER 15 1875.
To THE EDITOR OF THE HERALD:-
DEAR SIR do not object to either fair or unfair
comment upon any public declarations of mine, but
do desire that you will examine the comments Of YOU
paper this morning upon my address at the Cooper
Institute last evening, in which you say
"He has frequently read Of the suspensions OF 1s47
1857 and 1866 in connection with the Bank OF England
and in the profundity of his msinformation he sup
posed it meant suspension Of specie payments whereas
fact the word referred only the suspension of
particular provision Of the Bank act
Again. General Butler is dscreditably ignarant
to conound this suspension of the Bank act with
suspension of specie payments =
Again Tho precision OF his knowledge may be
judged of by his repeated assertions that the Bank or
England has several times suspended specie payments
since the Bank act OF 1874. -
The editor is right in saying that these statements
not mere nadvertance, but in speech
deliberately written out ] speaking of the actual
state Of things, not the knew the fact that the
bank actually called upon for specie which she
failed to pay, and that a carping technical criticism
might be made what said. | speaking of the
actual condition OF the Bank of England in ls47 1857
and 1866 and will leave the public to judge whether
in fact she could pay specie not and whether the
act Of the government allowing her to put out more
Let me give you the condition of the Bank of England
in ordinary times, on the 10Th OF December 1863,
which Bagehot says may be considered average
specimen Of those of the last few years. -
Notes issued f3s 2ss 64o Of which Els, ,2ss $40
secured by specie and els 600 600 government Sc
curtes. THIS in the issue department
quote again from Bagehot p. 17S:--
'.fhe hrst time Of trial came in 1925 In that year
the bank directors allowed their stock of bullion fall
in the most alarming manner. On December "a 1924,
the coin and bullion in the bank fl0 72l, 600 On
af.arO r 81 "a nln
the consequence was panic so tremendous that its
suits well remembered after nearly hfly years.
in the next period of extreme tral-1S37 and 1899
the bank was compelled TO draw for 81 600 on tho
Bank OF France and after that aid the directors
permitted their bullion to be reduced e. 4o4 600 tor
little more only than she had just borrowed although
she owed then more than eighteen times much and
had borrowed all her reserve from France.
THE next trial came in lS47, and then the bank per-
mitted its banking (which the law had dis
tinctly separatedl 70 tall to 81, 176 OO0."
I'm the autumn Of the year 1857 the bank directors
let the banking reserve which, even in October was
far small fall thus-0n October 80 ca 024 600 aud
November Is f957, 900 only"
Commenting upon this, Bagehat SAYS tpage 1907
"A more miserable catalogue than that Of the failures
Of the Bank Of England 70 keep good banking reserve
in all the OF trouble between 1926 and 1867
scarcely 10 be found In history"
Now that is what ! call, Mr.. Editor, suspending
specie payments II you don't you may call II by any
name you like. When man has only 1857 TO pay
S45, 600 with, think he has failed-suspended pay
ment What do you think7
Now for the failure Of 1866. ! quote again page
191l-
"As everyone knows, that panic began quite sud
denly the failure Of overend's- just before the
bank had f5 sl2 900 in its reserve fact it advanced
El3 600 900 Of money in the few days and its
reserve went down 70 nothing, and the Government
had TO help
II you persuade your readers that these not
suspensions 81 specie payments will confess gross
ignorpnce Of the meaning Of that term.
The Tribune says that have been "several years
telling this story That is quite true shall
tinue to tell 1t Tor several years
l am respectfully yours,
BENZ. i. BUTLER.