The sun., 1890-01-22
ONE-POUND SILVER NOTES.
IT rs SAID THEY WILL BE ISSUED BIZ
THE BANR OF ENGLAND.
An Important Financial step which is Ex-
peotod 10 he of Great Advantage to
Trade-TaIks with British FinaAciers.

peoted 20 Be of Great Advantage to
Trade-Talks with British FiARAciors.
CsptrtOhL 1890 bv THE suN Printing ana Pubhthtnp
AISocianon
LONDON, Jan. 21.-There is little doubt
that the Bank OF England is about to issue one
pound notes payable in silver, though It is i'm
possible to obtain official confirmation OF the
project for obvious reasons The scheme is
said to have originated with Mr.. Goschen. the
Chancellor Of the Exchequer. and the notes are
said to 10 already printed, and are only await
Ing the meeting Of Parliament, when an act
will be passed to authorize their Issue and to
make them legal tender. The London agent
OF great banking house having branches all
over the Continent and the United States, In
formed me that he had received information to
the effect that these notes wouldibe Issued.
from an official source which he was not ablo
to divulge. He said:
my informant had seen the notes which are
now being printed In order that thoy may be
issued at once as soon as Parliament passes
the necessary law. The issue Of silver notes
will have beneficial effect upon trade. The
authorized Issue OF the Bank of England notes
is E16,200, 900. in addition to an unlimited Issue
against bullion and specie. and It possesses
the sole right OF issue within slxty-flve miles
around London. In 1888 the amount OF silver
coined was given as f75657s The figures for
last year have not yet been made public but
an approximation. based uron the purchases
OF bullion. make the amount over f2OOOOOO
The bank is allowed to hold one-ouarter OF Its
reserve in silver. and as 1t is compelled to re-
deem its notes In gold. the amount OF silver
coin In its vaults is immense.
The rate OF money is higher in London to-
day than at any other time except during
panic The minimum rate OF the Bank OF Eng
land to-day is per cent. for discount. but as
matter OF fact 1t has made no loans for some
time at less than per cent. Tho result is
great inflow OF gold from the provinces, the
only place except Russia where the bank can
obtain gold, and this Is hurting the trade OF the
country. If the bank is allowed to issue FL
notes redeemable in silver, trade will be i'm
mensely benefited. since 1t will increase the
circulating medium immensely and put silver
into active circulation again. bill author
izinR the issue Of silver notes and making them
legal tender to any amount will be introduced
at the beginning of the session. and will OF
course be carried through without delay"
Are you entirely satisfied in your own mind
that your information is correct2" asked.
So much so that We are doing business on
that basis" the banker replied.
With this intelligence repaired to the stone
dungeon. whore behind bars and locks sat the
austere gentleman whose signature consti-
tutes value in the Bank OF England notes,
Frank May. the chief cashier.
II am sorry that can give you no informa-
tion in the matter" he said when 1 told him
Of my errand.
"will you not either affirm or deny the
story 2" asked.
II am not at liberty to do oither." he ro-
sponded
Inquiries at other London bankers revealed
the fact that the prospective issue Of silver
notes was not known generally in the city.
though many had heard rumors. Naturally
the only persons who could give official infor-
nation in the matter are the ones who are
compelled to keep 1t quiet.
The issuance OF silver notes would be advan-
taReous for other reasons aside from its effect
upon trade There have Just been issued for
the first time in large quantities four and five
shilling silver pieces. the former as large and
the latter larger than the American silver dol
lar that was found SO inconveniently bulky In
the United States. The only coin Of less bulk
between the fve-shilling piece and the sover-
eiRn is the gold ten-shlling piece. though all
the banks of Ireland and Scotland issue 81
notes. But in England the Go note is the
standard paper currency. Any amount under
f5, therefore. must be carried in coin. and. as
silver is legal tender to the amount of f2. an
Englishman often finds his wealth burden.
The issuance Of e-pound notes in Quanti-
ties has often been discussed in England. and
the novelty Of the present prospective issue
consists in making 1t redeOmable in silver. Tho
great objection that has been made heretofore
to the multiplication Of notes has been the fear
OF conveying disease through them but when
EnGlishmen become a trihe more civilized they
will disabuse their minds Of this impression.
ID ITO TyK
An Austrian PhysIcian Discovers this In-