New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-10-15


SPECIE.
England has always had currency based on specie
and pointed by the bullioniss the bright exem-
plar OF the benefits OF hard money and specie payments
am also mpeed to trace the financial history OF THIS
shining exemplar because observed few days since In
an argument in favor Of honest money the Bank OF OF
marvellous financial strength and credit"
In 1897 in her with Napoleon, England round that
the bank paper upon specie basis rotten de
tendency Tor her rely upon for financial support as we
found the same system to he in our civil war IN lSo oI
In England them as in our war gold went out OF sight
and boarded; manufactures were stopped. ner-
chants ruined, and money became Impossible 10 pe
obtained general bankruptcy ana rum h o',
the people and Government OF Great Britain when, Oh
Sunday morning, the ed of February, 1871 the klng
himself in council ordered the suspension of specie
payments. which suspension was to last unn ins
although the gigantic Of Napoleon shook all Europe
in which England subsidized and paid the armies OF az
her allies with her gold, still. whether the allied armies
in disaster in triumph financial revuislpn
business panics disasters fell upon her people curing
those years OF most destructive and terrible war; Du
TO the contrary during that time upon nconvertible
promises to pay. England built up her IRON cotton ana
full and unequaled manufacturing prosperity, established
and osercd her colonies and extended her commerce all
the Bank of England indeed an example OF mar
yelous financial strength and credit"
How like H. all this to experience or te Use oi
nconveTtble paper III our own war OF the Reocinoh'
But the parallel does not stop here WhSp ~ Fne cap
doing, began preparations for return 10
specie payments Then agap ensned business dlsas
throw Of credit, prosration OF trade and business:
working people of England. Working people agricultural
and manufacturing. were thrown ont Of employment
soldiers had to he broughtOu to suppress the mutous
and dangerous assemblies and disturbances OF the work
ingmen. when the agrcuturiSts Of England, IN TINS
hour of dire Distress petitiOned the Prime Minister Tor
measures Of relief, he cooly told them thai over
production was only of the low price of corn,
and If they desired good times they must raise less
bJeadst although at the very time the starving labor
OF England being exported TO the colonies and
this country because they could not find food at home
Over. production, indeed! Underconsumpon, rather
is the trouble. How men and women consnme pro,
ductions which they cannot pay for or get More than
a million and "a half of men and women have been
nearly two years out OF employment without Pnr
chasing means or power Of consumption beyond what
will keep body and soul together; A number greater
cothe which claimed TO have consumed the surplus
grain beef pork, and clothing OF the whole country ana
rai sed the price all such articles.
England in spite of the views OF Lord Liverpool az
means OF relief w%S Ssgea 70 %a e G
santIy caused revival OF business because 1t was sup
RS Usea nSy pSsponed But in ISIS Pc Is bin
passed providing for the gradual resumption o. specie
medlaely after the passage OF TINS aet prices sgn ie'
large numbers of wOrknglnen were again OUT OF employ
tamps abounded manufacturing nearly ceased agricul-
tural products fed equally with other commodities, and
mortgages mort found that the mortgages were eat,
ing up the land In ISIS Lord e., Sas,ieT rH,Sn
TO bring into Parliament five money bills IN single
night one of them extending the circulation of the one,
were measures OF "infation." Two years later, the
Bank of England began to reduce its circulation or IN
other words contraction of the currency. Ihis IN
1925, followed by destruction OF values rum OF
merchants an oyerlhrowlng OF al enterprine, WIN
half the land Seventy banks failed nearly twothlrds OF
her merchants and manufacturers stopped payment,
followed by the usual disaster and starvation 10 tho
nottingham and his family Appcaon was p nt o no
pound notes was found in lumberr0om where they hdd
been accidentally stored. instead of being destroyed a.
ordered These issued by the bank as money III
other words there initiation OF the currency, ana
the than lcprous plague was lnStantn stseu,
Bank England by making its notes legal tender but
yet redecmaDe IN gold
SUSPENSIONS OF SPECIE PAYMENTS By THE BANK
OF ENGLAND.
In 1897 the Bank of England suspended again,
another crash came, which involved this country also
And why 2 Because in 1892 10 encourage the lroduc-
ton Of gold in the mines OF the South Congress raised
the rate of gold as compared with silver 10 10 to J.
and demonetizcd silver by restricting 1t as legal
tender for small only. Gold having thus become
the basis Of our currency i'll 1887 when the Bank OF
away from US, causing our own banks TO suspend
specie payments The honest money OF n 11e n pes
promises to pay but these uusound as they were
were relief business trade, anu production were
NOT depressed because of this demand OF the Bank of En-
gland upon 1t was all simply stopped ana Tor thce
nitigated benefits which periodically occur To those ma
lions which are blessed with currency on COLO OASIS
In England the by ali classes OF the people were
40 enormous and the distress and ruin so great that Par
lament at its session took measures 10 feOfgaLc
the bank, that such revusio's IN business might
ever return They put the issue department OF the BANK
on specie basis that is the bank was allowed TO lSse
no more notes for circulation than ~ haa specie III lhe
vaults except certain number which might be Issued
on exchequer bills being = than The experience on al
the pancs had shown would be called Tor III ho OF nhah
WGeh the bank into practical operation under its
charter II was at once found far from the gold III the
bank being Interchangeable IN value u changed dF oy
day, With the call for IT abroad ana rGlneu % r.
spending change of the rate OF discount OF te PAM 10 s
customers Keep ts gold in its vaults, 50 that III lact
The only unchangeabiy in the value OF the gold was Sc
cured by changeable rate OF discount to IT'S customers
Between the 7tn OF September ISL the dale Oi INC
Bank act and Feb. H. 1885 the bank altered hef iae Oh
discount IS times raising time to time from 10
10 per cent, thus quntupllng her price Tor money WIN
cOncOnicant destruction To all the Haclaeluing anu
mercantile interests OF the country causing widespread
ruin devastation, which must have ended IN seneIa
years the reorganization OF the bank she
specie payments ana iea "a an The BUSINESS and ed
of England Nov. 8, 1851 the Bank of England
again suspended specie payments after having rllned
the merchants and business OF all England
III her attempt to sustain herself ana drawing TIE tou
fn This country for the same purpose Ia such AN extent
As to cause suspension OF specie payments mere with
ruin Ia nearly all the mercantile houses, ndnhic ueIS
and bapkcs of this country Her efforts to save herself
from suspension and retain her gold were 30 energetic
aud persistent that between April 1897 ana january
IS5S she made changes In her rate OF discount
and in the wear 1883 to retain her specie IN her vaults
she changed her rate OF interest I'VE ths III Fe Wfehs
still again, in November 1866, III consequence Oh Tue
war on the Continent of Europe, the Bank oil England
after the usual but neccual struggle To- MAINTAIN hcr
gold in Ter vaults by quadrulnS her rates OF discount
suspended specie payments THIS failure OF the Bank Oi
England did not affect the business or hnanCes Oh te
United states because our currency IN loOO was the
grecnback and gold was merchandise, ana we were
no longer the money slaves OF the Bank of England or
our business at her mercy. .,,---
Tins three times within less than 20 years in this gen
Grafton each time in yOlitlOOf law ana without fgt,
mas the Bank OF England suspended ana ACKNOWLEDGE
her bankruptcy! what " marvel OF hnllrlai sitnelh
ana credit she has been sure! Neither OF these
Suspensions took place until she had refused al discount
10 hcr customers even the best 6Oddy commercial
bin secured by Government securities 1t VIII lie thus
seen that gold not the regulator OF the currency OF
England but the price paid for money at her p'ns, ana
having provided herself with currency base on goa,
i'm order TO retain that basis whenever Il wanted Tor
fore loans because Of foreign war, sue Is ODNScd
Ia the value OF her unit by changing the rate Oi
discount OF the interest when Der people were oDliged
f.Vrh fa