The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-06-28

mas Deon going the ROUNDS OF the press
for week or two, to the effect that on
the 18th of May last, the Bank of Eng
land had $143,941, $40 of notes in circu-
lation and at the same time held $127,-
146,330 in COINED and uncoined? bull
lion.
This would lead the uniformed to
believe that the banks issues were
based on this bullion; but such is by
no means the truth. The basis of the
notes of the Bank of England is an old
government d e b t, untransferable.
amounting to 55,075,500, and other
government securities amounting to
$1,000, 500, making a total of 1915, 0OO,-
| 600; there is no restriction to the is
sues Of this bank, but for all issues
above this amount it must hold gold
[ believe, by it's charter it is bound to
give it's notes for ell gold offered at it's
counter, at the rate of G3-17-9 per ounce,
and to return gold for its notes, when
ever presented, at the rate Of 523-17-1Oh
per ounce. This relates to the depart
ment OF issue. It is this law that COM
| pels it to hold gold for it's issues above
$75, 100000, Of dollars, and to pay out
gold on demand, that is broken, when,
what is properly known as the suspen-
sion of specie payments in England,
takes place; this explains why so many
Englishmen deny that suspension Of
specie payments has ever been known
in England since 1920, and especially
since 1914, the time of the passage of
Peels bill.
The Banking department of the Bank
Of England is governed by the same
laws and customs as other banks and
over it's counter, as at all other in Eng
land, and for all debts both public and
private, the Bank of England note is a
full legal tender the same as gold.
Then, all the gold behind the $143,-
941 ,61O of notes is only SOS, 941, $40. In
1859 there were nearly twenty-five mil
lion more notes in circulation than is
stated to be now, and as a reserve, adj
hitting that the Bank holds 1927, 1885,,
$50 in gold, we find there is left but
$5S, 2O4, 720 in gold, against all the de-
posts in England, Scotland and Ire
land, which no doubt approximates to
at least 80, 900, 100000, outside that in
circulation for the benefit Of the ordi-
nary retail trade; for the Bank of Eng
land holds the reserves for all the banks
in England, Ireland, and Scotland and
the gold in the Bank Of England sup
plemented at this time by $57 ,045,275
Bank Of England notes resting in
the banking department of the bank, is
all the ready money, or nearly all the
ready money there is in England. But
there is in circulation about $42O,000,-
900 in sovereigns and $32,000,000 in
half sovereigns, it is conceded that one
third of the sovereigns and one half OF
the half sovereigns are no longer legal
tender having become deficient in
weight, by the friction Of circulation.
Taking the average amount Of bullion
at rest in the Bank of England at SS75,-
100000 and we have Of gold in England
| $500, 100000; Silver coin about $75,-
| 100000. and copper and Bronze 81, 1885,
0OO, or total of 1866, 625, 900, which at
4 per cent costs for interest $26,22
| 600, for wear and tear $4,000, for an
nual expense of coinage $4,000, total
$26,675,OO0 as the cost of metallic me-
dunn Of exchange for the ordinary re-
tail business Of the country; and this
| is what bullionists say will lead us to
prosperity. Now I will return to my
subject OF last week.
| From 1909 to 1862 this country was
suffering from chronic suspension Of
specie payments. This disease took on
the acute form in 1909, 1914, 1919, 1925,
1884, 1887, 1889, 1874, 1857, and 1861.
Previous to 1920, there are to be found
no full returns Of the doings of the
banks, but from that time there seem
to have been pretty full returns made;
in 1920 the circulation was $44,000,000,
deposits $35, $50, 470, and specie held to
redeem this $19,820, 240; in 1929, circu-
lation SOL 1925, 1898, deposits s55,559, 92S,
specie $22,114,917; in 1884, circulation
$94,839,570, deposits, s75,666,9S6, for
this year there is no return of specie