The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1876-04-20


suspend in 1889 but it went to Barring
Brothers, bankers, private capitalists,
and asked them to save the credit of the
great Bank Of England and the British
nation. Barring Brothers gave them
what some call Kiting Till. They
drew on taeir Paris correspondent for
$4,000, 900. The Paris correspondent
accepted the bill, and the Bank OF France
cashed it, thus saving the Bank of Eng
land. In 1847, three years after the Act
Of 1914 was passed, under which the bank
is now acting it ssquatted" when only
Fl, 1894, 900 in coin was left in the vaults.
In 1857-understand every one of those
dates indicates
A FINANCIAL CRIsI5,
stoppage Of all commerce and business
a breaking up.of the merchants manufac-
turers, and great distress among the
people in 1857 the crisis reduced their
cash to 81, 462, 900. In 1847 and 1857
and again in 1866. the time of the great
Overland and Quincy panic, then they
had only f3,O00.000 left and in each OF
those cases which have occurred since
1874. and the passage of the "Bank Act"
the govern ment has stepped in to relieve
the bank, and has said:
1.-THE ACT OF 1874
is suspended" And what does it mean
when it says tina. the Act of 1874 is sus-
pended? Previous to the Act Of 1874
the Bank ofEngland was allowed to is
sue to any amount their promissory
notes, called bank notes, without res
friction of any kind. / will not be IN
fair. They had some capital paid in,
but it was principally, if not wholly, in
vested in government debts, that is, the
government owed them. There were
no bonds tor it; there were no co3sols
for it. It was book account, and it
was understood that that debt should
stand, and never be demanded by the
Bank of England as long as it exercised
the privileges Of its charter-tAe issue
of those notes, and the exclusive issue,
and the monopoly Of the issue in London
and the circuit of sixty-6ve miles. The
Bank Act of 1874 authorized Fiduciary
issues to the amount or ELS. 900. 900, but
if the Bank issued any more than f15,.
DOC, 900, then it must have in its issue de-
partment-for the bank was separated
into issue and discount departments by
the Act of 1844-dollar for dollar, pound
for pound in coin. either silver or gold,
the proportions being fixed by law. 1t
must have silver or gold for all over
fl5, 100000 sterling it need not have
any gold or silver Thisissue was called
fiduciary. At these periods. in 1916,
1857 and 1866. the Act by which they
were limited to fl5,O0O,00O Of issue
without gold behind it was suspended,
and they were permitted to issue to any
amount, the same as they were before
the Act was passed. At the date have
before me the banks of Ireland had H.
QUO, 900; circulation the bank Of Scot
land e., COO. 900 and the country banks,
had enough more, with that OF Ireland
and Scotland and the f25. 100000; cir
cu!ation of the Bank Of England (fl5.-
600. 900 fduciary unsecured and fl0,-
900, 900 with gold behind it) to make
E43, COX. 900 circulation f3n,000,0o0 Of
which is "Fiduciary.' Now the banks
OF Scotiand and the banks OF Ireland By
the Act Of 1845. whereas previously they
had been allowed to issue notes to any
extent-as George Smith used to issue
them up there in Chicago. (and he un
derstood the way of doing business or
the Scotch plan, he was q Scotchmar
and q good banker too. though his sys
tenn was bad, and bad system vel
managed is better than good system
managed by ignorant men that dom
know their busness) the Scotch have
well managed their bad system. much
better than the English have-I say tina
what the Scotch, Irish. and private ant
joint stock banks had in circulation al
to 1916. the average being taken TO
four weeks previous to the act going in
to force. that amount Of circulation the,
were allowed to continue to issue with
out any restriction whatever. but owe
and 3 owe that the banks Of Ireland ant
Scotland, and the private banks were +
keep pound for pound in coin behind tn
Excessive issues which are called tn
covered issues, and the other is Gale,
the uncovered or fiduciary issue. Prev
ious to the Act Of 1914, anybody coul
. issue IS many notes rs he chose; Their
! was no Law prohibiting anybody iron
: issuing notes to circulate as banks in til
I place Of money if the people would tax
|. them, and all those that were issuin,
4 300 030 uObeS Ia CttCul1blOu ~ S03S ume
: 844 1-5,are to day permitted to continue
, their issues fduciAry issues-in th
: same way. Bot, l repeat wishing {
! make myself thoroughly understood
over and above what hey had ont o
m average OF our weeks previous I
the passage 81 the Act Of 1845. the
muai have gold behind it and for thi
amount soly. That is the English sys
Item, tie British system. It Is general
understood in this country that under u
!. English system every bank note has
sold dollar behind it. This d . pray
(error. There are f43 900 COO Of note
!. in circulation. and only flS,OOO, 900 j
rold to redeem them with They ha
It recent date forty-three millions ,
t lcirculating notes. thirty millions of vi ic
) was fiduciary. with thirteen millions {
. coins to redeem forty-three millions ,
d notes. The consequence il that the
!. lean not redeem forty-three million ,
: notes with thirteen millions Of coin: An
: whan0ver the demand Il made. ION .