Nebraska advertiser., 1877-12-06
MISLEADING THE PUBLIC.
The Truth About the Bank of England,
and a Comparison Ofits Workings
With our Treasury System.
CHICAGO, Nov. q, 1877.

To the Editor of the Inter Ocean.
The opponents of the repeal of the
resumption act are constantly making
statements which mislead public opin
ion, and, il understood, would defeat
the ends aimed at. find the follow
ing in the New York Times. publish
ed in the self-styled, "Oid Reliable"
1t says:
"Considering that the coin re-
serve of the Bank of England is at |
present only $50 900 900, and that on
this slender foundation of bullion |
(gold and silver rests some S3 600. 000.- |
600 of banking liabilities in Great
Britain"
The above is very nearly a true
statement of the finances of England.
1t then continues: 1T seems tolera-
bly obvious that il congress would on
ly keep its hands off the finances. there
is nothing TO prevent the Treasury
make ample preparations to resume
in 1879" Suppose the author had CIV
en- the following facts:
l. The Bank of England is q pri-
vate corporation, backed up by gov
ernment, while the United States
Treasury Is not. Consequently, no
parallel can be drawn between the
two.
2. That the premium on gold In
England is as high as it is in this
country. for the interest rate of the
bank is per cent above that of other
chartered or private banks in that
country. The reason for such excess
is stated to be, by the directors of the
Bank of England, as we'll as by the
London Times and other papers, to
prevent the gold being drawn out of
England. So long as the Bank of
England can float its promises to pay,
printed on watered paper, at Il or 2
per cent. it is entirely satisfactory
| but the moment the holders of these
promises to pay present them and de-
mand gold, particularly so If the gold
| is for A America. money becomes scarce,
and the rate of interest goes up to 5
/ or 10 per cent. This Is a power per-
| fectly despotic over the business inter-
ests England, and sustained by the
English Government; power that
would not be granted in our country
to the most honest administration we
ever had or ever will have.
8. The United States Treasury,
with SlOO, ,OOO,O in gold in hand,
could not make a successful stand
against the manipulation of gold op-
orators, unless the coin power of our
present legal tenders was made fact,
so that duties, taxes. or other dues to
government, could be paid in them
the same as coin. BY "gold opera
tors" | do not refer to the Gold Board
of New York, whose members were
but parasites on such mammoths as
Drexel, Morgan & Co.. Rothchilds,
and other money kings. Either OF
those firms could at one fell swoOp.
aud no doubt often would, take all
the gold and put it out of sight. that
our Treasury might hold for redeem
ing It's legal tenders.
| IfJohn Sherman had the power to-
day to put the rate of interest up or
down, as his private interests might
dictate, do you think the people
would remain passive, as does John
Bull" and yell, "Great is the Bank
of England ?" Still that power is the
power of the bank, nothing more or
less.
The issues of the Bank of England
are to all intents and purposes the le-
gal tender of Great Britain Gold Is
no more currency there than silver Is
here. The business Of the country is
done on credits, by checks, drafts, and
bills of issue, and so long as no cog
wheel in the machinery stops, it is
lovely but let one wheel work lit
tie stiff from want of grease, and the
life blood. gold, becomes clothed, and
a tonic Of ) per cent. has to be taken
In order to work off the clogged
or, ase. The issues of the Bank OF
England are based on the debentures
of England, which are seldom above
95 per cent bearing q per cent. in
terest.
The issues Of our banks are based
on this count-y's debentures, always
worth 100 per cent. bearing per cent.
interest. In the former, none but
English invest; in the latter the whole
world invests. The ultimate of one
they doubt. of the other no doubt ex-
lists. "Old Reliable" writes labored
editorial on the extract from the
Times, and brings forth, "There's the
rub" The editor has not found out
yet, where the majority stands, and
course is leetle afraid to say, II tod
you So" But he has seen a man
whom be thinks has recently seen q
"dOuble eagle" and the editor re-
marks this is straw of very great
| Importance"
Germany demonetized silver, is
bankrupt with gold. To keep what she
has she destroys all commercial inter-
ests by exorbitant Interests. While
France, with gold, silver, and green
backs as money, is becoming rich
yearly. Germany and England are
becoming poorer every day. Whose
example should we follow-the one
successful to the many, or the impov-
erisher of the many to the enriching
of the few-Franee or England.
| A. A. A.