The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-06-21

will refrain from demanding the bank
ers promise to be made good, out OF
which must come the means to keep
their our promises. It may be only
lust to say here, that suspension of re-
Idemption of the Bank Of England note
has not the same meaning the suspen-
sion of redemption has in the United
Estates; the Bank Of England note is to
be redeemed in specie only over the
counter Of the Bank Of England, an
: order of the Government relieves the
: Bank from being obliged to do this,
: and the Bank is permitted to issue as
: much irredeemable paper currency as
' may be~necessary to bridge over the
pending crisis.
L In 1897 the Government not only said
: the bank need not redeem its notes, butt
: that it mast not. This suspension con-
: tinued till 1920. From this time QS20)
} to 1914 the financial affairs of England
, the United States previous to 1868, OF
which more anon. Specie resumption
; ; however was not fully established I'M
til 1928. In two years. 1925, the Bank
T was again obliged to suspend and was
ONLY saved from bankruptcy by the in
| reference Of the Government at the
| !. st moment. In 1887 the bank had to
no, row $1O,O0O00O in gold from France
10 &C. We itself, and with this it could
not Ire ep it's promise and meet the de-
! r,orde required by its charter. Out of
+bis nan &c came what is known as
poo1,s hin, n 1914. This was to be pam
acoa for ali the ills Of currency and
banking, vet in 1847 the Government
was under the necessity Of permitting
/ # to break tbo new law. In 1857 a
letter of license fr, om the Government
permitting it to bre. ak the law saved
it again, after hundre, -'S OIL olo eSCaD-
Hshed houses had been puShed TO the
wall by it's inability to ke 'ep It's prom
ises. After this, using til ScTea0'
changing the rate Of discount 30 olVeh
as to make business calculatl ohS eA-
tromely uncertain, it managed to Keep
q larger reserve than before, but MS
awaited nothing, for in 1866 it had FOL
break the law again, but the Goyern-I
ment coming to its assistance more
readily, it issued $4,000, 900 of new pa
per money in a few days and stopped
the panic before it had done any very [
material harm. To these failures can
be traced many ills Of our own country,
so poWer1ess have we been to hold spe-
Gle when the necessities Of England
demanded it. But what of our system ?
the child Of SO unfortunate parent.
There does not seem to be any very
correct account Of the doings of our
banks previous to 1911. I learn 'FRONT.'
the last report Of the Treasurer of thel
| Z. S. CS7G) that in Sept 1914 all thei
State banks south of New England sus-
pended specie payments. Nearly one
| hundred of them in different sections
of the country had been made Govern
ment repositories.
The check ofredemption having been
removed, an expansion Of their issues
| followed: it's amount, which was in
1911 SIS, 100000, was in 1918 increased
from 60 millions to 70 millions, in 1851
from 90 millions to 10 millions, and {
having been contracted to As millions
in q year expanded to So millions Du- 0
ring the year 1916 the banks continued
to issue largely, and in addition to this,
foods Of unchartered currency were
poured out, in notes Of all denomina-I
tions from six cents upward.
This resulted in the reduction of
values in lands and agricultural pro-
duce to one half the prices that were
readily obtainable in 18O8-10, and one
third the value when the Indebtedness
was incurred - during the initiation
| years of the State Banks.
In 1880 the banks had got into work.
| ing order again, with circulation of
81. 3 million, which in seven years had
increased to $40. millions, and then,
in May 1887, all in the banks in opera
ton went into suspension with" said
Col. Tom. III. Benton, "a concert and
Ipunctuality of action, which announce
ed arrangements and determination such
las attend reyolts in other Countries"
Almost the same thing was repeated