New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-10-21

whether the allied armies were in disaster
or in triumph, no financial revulsiop, bust
ness panics, or disasters fell upon her peo-
pie during those eighteen years of most de-
structive and terrible war, but TO the con.
trary, during that time, upon inconvertl-
BILE promises to pay, England built up her
iron, cotton and wooden interests, and laid
the foundation of her wonderful and un-
e4ualed manufacturing prosperity, estab-
lished and fOstered her colonies extended
her commerce all over the world, and main
tanned gigantic navy. During these eight
cen years of rag money" the Bank of Eng
land was indeed "an example of marvellous
financial strength and credit" When by
the capture of Napoleon the war ended, the
Bank OF England, as we are now doing, be-
gan preparations for q return to specie paw
ments. Then again ensued business disas-
tsrs, fall of prices, shrinkage of values,
an overthrow of credit, and prostration OF
trade and business.
Then Lord Liverpool told the apricultur-
lists and manufacturers of England that
over reproduction was the cause of distress.
Under consumption was rather the trouble.
More than 10000 OF men and women have
been now nearly two years out of employ
ment without purchasing means or power
OF consumption beyond what will keep body
and soul together. As means of relief,
despite the views of Lord Liverpool, Eup.
land was then obliged to defer the return
to specie payments until 1919. In that wear
Peel's bill providing for gradual resumption
was passed, full resumption to take effect in
1898, and prices again fell Immediately after
its passage. This description was applicable
to New York in 1875. Although the vote on
this bill was unanimous, Lord Castlereagb,
in 1873, was compelled by the distresses of
the country to bring into Parliament five
money bills in single night, one of them
extending the circulation of the Ell not
until 1888; or, in other words, each and 81
were measures Of Imitation" Two years
later the Bank of England began to reduce
Its circulation; or. in other words, ICON.
traction OF the currency. This, in 1926,
was followed by destruction OF values,
ruin OF merchants, an overthrow of al
enterprise, with a loss of production as
great as if fire had swept over half the
land. Seventy banks failed, nearly two
thirds of her merchants and manufacture
ers stopped payment, followed BY the
ingman and his family. Application was
made to the government for relief What
power can change all this at once, An act
of Parliament The rain of mama from
heaven by Divine interposition Neither
came. But, what seemed to the men of
that day equally miraculous, large pack
age of one pound notes was found in a Ium-
Der room, where they had been accidentally
stored, instead of being destroyed, as or
dered. These were issued by the bank as
money-in other words, there was an intia-
ton OF the currency-and the worse than
leprous plague WAS instantly stayed. Soon
atterward the government came to the re-
lief of the bank by making its notes legal
tender, but yet redeemable in gold In 1887
the bank suspended again, involving this
country, because Congress had demonetized
our silver by restricting it as legal tender
for small sums only. The Bank Of England
being then pressed for gold, which was the
basis of our currency, called it away, caus-
ing our banks to suspend specie payments,
Then for three years We fully appreciated
the beauties of currency on gold basis,
In England 80 enormous were the losses
that Parliament took measures to guard
against future revulsions. The bank was
to Issue no more notes than it had specie
in its vaults, except certain number
which might be issued on excheauer
bills. After long and laborious investiga-
tion and able discussion a bill reor-
ganizing the bank had been drawn, which
would Danish prostcation of credit, but
when the bank proceeded 10 operate under its
charter gold was found to change in value
day by day, requiring corresponding
change OF the banks rate of discount to i(s
customers to keep gold in it's vaults These
changes came so frequently and were SO ex-
tcusiNo ludL Dusiutsh uuctudIlOnS, Q6preH-
slons and panlcs were consequent upon
each, to which those we have been consider
ing were but as gentle summer showers in
comparison with the storms of wiuter,
The lecturer then proceeded to sketch in
detail these fluctuations of discount and
their results, which must have ended in
general bankruptcy but for another specie
resumption and an issue of ineonvertible
paper on October 90, 1917. November Q.
1857, the bank again suspended, after ruin.
ing the merchants and business men of Eng
land; and still again, in November 1866
after the usual but Intellectual struggle, spe
Gle payment was suspended.
Thus, three times within less than twenty
years, In this generation, each time in VIC.
lation OF law and without right, has the
Bank OF England suspended and acknowl-
edged her bankruptcy! What a "marvel of
financial strength and credit she has been,
to be snre' Neither of these suspensions
took place until she mad refused all dis
count 10 her customers, even on the best
sixty -day commercial bills secured by gov
eminent securities. 1t will be thus seen that
she was notthe regulator of the currency
OF England, but the price paid for money at
her bank; and having provided herself with
currency based on gold, in order to retain
that basis whenever it is wanted for foreign
loans or because of foreign war; she is
Obliged to increase the value of her unit by
changing the rates of discount or the inter
est which her people were obliged to pay
tor their money. Candid men would agree
that currency based on specie could not
be the best System of finance, and certainly
not adapted to a country governed as this
is. He would propose instead an American
system of currency. The lecturer said he
was not an infationist. Initiation,
as applied to currency, must mean
the issue OF the same species of
currency or another kind OF less value
than that already issued. Then to .'in1ate'
ID not to issue more currency of the same
value as that already issued. When ap-
pied to credit, initiation must mean asking
more credit upon equal or less security.
he holds that neither a man nor a govern
ment IL ates credit by putting out his non
interest bearing notes in exchange for his
own interest bearing notes or bonds, or
changing his Indictment from bonds or
notes bearing high rate of interest to
bonds or notes bearing a low rate of inter
est, This he thinks more like contraction
Again, he does not desire the issuing of
more noalnterest bearing notes as currency
than are now, or lately were, in circulation,
unless 1t shall be demonstrated experiment.
ally by the imperative demands of trade or
business hereafter that more are needed,
after the system he proposes has been fully
trled. he does not agree that there is too
much money or currency now issued be-
cause 1t ia aggregated in the vaults of the
banks and can not be loaned even at low
rate of interest The reason why there is
surplus OF money in the banks is that no.
Dody wants 1t Tor any business enterprise;
nobody not absolutely compelled SO to do |
VIII oegin new enterprises or cont nue. pro- |
1nf .1,,n.