The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1884-06-08
THE BANK OF ENGLAND.
The Great Panic OF 1875 and its Effects on
the Old Lady Of Threadneedle Street-Bank-
Note Forgeries.

Commercial Adyertlser.I
The excitement in financial circles in
| this city during the past few days gives in
creasing interest to the panics OF the past
not only i'm this metropolis. but in coun.
| tries abroad. There was a great panic in
the Bank OF England in December, 1926
caused by the redemption OF interest on
.E2l5, 100000 OF stock held by the pub
| lie. The Bank OF England was acting as
| banker for the nation, and offered tC
| advance money to the holders Of stock to
pay off their principal investment. This
was an era OF speculation, and no less than
E3z2, 900, 900, or over S1,S00,000,0 1000, was
invested in all kinds OF "bogus" stock
projects. In some OF these schemes shares
OF GlO0, on which only E5 had been paid,
rose to premium Of C40, yielding a profit
OF eight times the amount OF money paid.
Everything went merry as a marriage bell
for lime. and large sums had been with
drawn from the Bank OF England, reducing
the gold in its vaults from GS. $780, 900 IN
October, 1924, to c3,624,3 in February,
1885,
The panic began on the 9Th Of Deem
Der, 1925, when London bank failed. ut
which the agency OF over forty country
DRINKS WIS lIduSutleup sum % iNdSbiot
was the necessary result OF the previous
madness OF speculation. Lombard street
and the vicinity OF the bank were filed
with excited men and women-some fright
ened out OF their wits, others raying like
maniacs. The scenes witnessed in New
York's financial centre the past week were
of a similar nature. The thousands OF ex-
cited people were waiting eagerly to with
draw their investments. Next day several
other banks failed. The rush on the Bank
of England was terrific, but the clerks
kept paying away the gold in bags contain
ing % sovereigns each.
From 8 O'Clock A. NJ. until Z. NJ. each
day twenty-five clerks were engaged
counting out gold, and as 1t would take
that number OF clerks TO count out ESQ.,
600 i'm sovereigns, il counted by hand,
plan was adopted by which the tellers
counted TWENTY-FIVE sovereigns into one
scale and twenty-five into another, and IL
the scales balanced they continued until
there were 200 sOvereigns in each scale.
In this way Gl,000 were paid out in few
minutes. the weight OF 1000 soyereigns
being twenty-one pounds, while 512 bank
notes only weigh one pound. In this way
e3I7. 900 in gold was paid out in nine
hours TO clamorous depositors.
Instead OF contracting their issues the
directors Of the bank boldly extended
them. In one day they discounted 1900
bills. On December Sth the discounts at
the bank amounted to E7,5OO,OOO; on the
10Th they were E11,5OO, 900; and on the
10Th a15.OOO, 900. December Sd the circu-
latlon OF the bank was Ell, 100000, and on
the day before Christmas, December 24th,
It was SCI, 500, 900, or the enormous sum OF
e127, SOC, 900. Any kind OF paper that was
not absolutely worthless was discounted:
advances ON deposits OF
bills Of exchange were made by the bank,
stock was entered as security, ana ex-
,hequer bills were purchased. The gallant
Did institution weathered the storm, and
IN the 28th OF December gold began 70
.ome IN slowly. During the latter part OF
he panic week forgotten box OF 81 notes,
c7O0, 900, was discovered, ana
hese were immediately issued, and the
iirectors acknowledged that the iorgotten
box saved the commercial credit Of the
Bank Of England. There was only