The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-02-28
COIN AND PAPER CURRENCY.
An Interesting Feature of the English and Scotch
Banking System Compared.

banking system compared.
The money kings who have heretofore
controlled national legislation, to the
hardship Of the masses, but whose reign
of ruin'is fast drawing to close, quote the
financial history of England in support
of their theories. Let us see how this is,
as we find it in Stephen Colwell's admi-
rable work, entitled 1.-THE Ways and
Means of Payment" contrasting the
English and Scotch system of banking.
He says:
"The Bank Of England suspended in
1898, after having, since .1777, issued
nothing less than five pound notes. They
had reached the conclusion in England
that the currency under five pounds
should be gold, and from that conclusion
Scottish experience could not drive them.
In Scotland the views of the people are
fully set on the subject ofcurrency. Their
system, which, by the admission of all,
has worked wonders for the progress of
Scotland, is one of which they only ask
the undisturbed enjoyment. In Eng.
land, on the topics of money, currency
and banking, nothing is settled. In Scot
land the topic is seldom the subject of
agitation, unless as connected with some
of the movements of projects of reform.
In England there is a prevailing preju-
dice against a paper currency, although
it is largely employed. In Scotland the
preference for paper currency is as
strongly marked, in all the channels of
business. Neither the REBELLION of 1715, |
nor l745, nor the disturbance following
upon the French Revolution of 1893 and |
1897, which stopped the Bank .of Eng
land, northe grand crash among the Eng |
lish banks in 1925, could alarm the Scotch |
people or produce run upon their banks. |
No currency of modern times has been |
more effective and less fuctuating in
value and quantity than that of Scotland. |
There is prevalent idea among Eng |
lish statesmen and writers upon money, |
that there should be a broad basis Of |
money or gold coin, under or as a sup
port to the paper circulation. To the |
mind of Scotch banker, greater alb
surdity could not be presented in as many
words. He would say: What when a
demand springs up for gold, in Conse-
quenCe of some foreign war. must we 80
regulate the issues of our banks as to re-
duce the currency of notes in the same
proportion that the currency of gold is
carried Off Rather should we increase
our issues, and supply the place of the
currency that is exported
1.-THE Bank of England was established
to facilitate the fnanciering of
the British Government. The Scotch
Bank had q prominent pre- hibition of
loans to the government. The Bank of
England predicated its performances
upon its powers to effect exchanges on a
specie basis. The Scotch Bank relied
upon the productions of the nation for
commercial liquidations. The Bank of
England regarded the existence of pro-
ductiVe industry as subordinate to the
retention of gold. The Scottish bankers
laughed at such retention, and, first of
all, endeavored to secure society comfort
and wealth. The Bank of England is
sued no bills of small denominations.
The Scottish banks aimed to supply most
of the retail circulation by their own is
sues. The Bank of England, by grading
its rate OF interest according to the
amount of specie in its possession, sue
ceeded in palming off the most spasmodic
and fuctuating currency ever known.
The Scottish bankers, by basing their
currency upon their own resources, have
blest their constituency during nearly two
centuries with the steadiest currency on
record. The Bank of Eegland was forced
to suspend fulflment of its promises for
a quarter of century from 1895. The
Scottish banks did not ask for or accept
such privilege. In England bank fail
ures, scattering ruin, are frequent. In
Scotland only five or six failures occur in
a century and then the losses fall almest
entirely on the stockholders.
Scotland, cold, bleak, unendowed by
nature, has, by the conscientious wisdom
of her statesmen, become the home of
people whose thrift and comfort are most
while the hsppy-go-luckY expo
dients of the English gambling polih.
clans have converted that originally fer
tile island into land of seething discon-
tent, aggravated on every hand by the
contrast Of most abundant wealth and