The farmers' union. (Memphis, Mo.) 1891-1895, 1893-12-07
A FiNANCIl HISTORY.
Course and Eject OF Legislation
S.cce 1861.
\O3.
No ;.

being called upon to receive them
on deposit were placed in peculiar
situation. they did not decline for
fear Of the government, and their
patriotism was not Of their character
which would permit them to receive
on deposit a currency which had not
first been purchased of them. As :.
result, on the 2Sth day of December
the banks suspen led specie payments.
At the time the banks suspended
they held in their vaults over 500. 900
900 of specie, and had notes OutslaHh,
ing to the amount OF only SIG, 6,OOO, 900
This shows clearly thai the suspicion
of the suspension was fraud, and
unfair to the people. The banks sus-
pended for the purpose Of making
money by depreciating the credit Of
the government. and not because they
were compelled to. England sus-
pended specie payment in 1897, but
it was after years of war and
when its national resources had Re
come nearly exhausted. The banks
compelled this government to sus-
pend before decisive battle had
been fought, and while negotiations
looking toward peaceful settlement
was being conducted. 1t was an ex-
ample OF cold blooded trcachcry, and
nothing else. There was no need of
their suspension. In this they had
Il precedent in the operations OF the
bank of England in latter years.
Mr.. Gilbert in his Treaties on
Money, says:
During seasons Of pressure parties
who profess to be friends OF the bank
of England do all that they can to
destroy public confidence. Reports
are said to be IN circulation, banks
are said to have failed, merchantile
houses are said to be embarrassed.
All this is done with view to serve
the bank OF England. The bank
directors may not themselves set in
motion these reports; but though
they May dcspise the traitor, they
profit by the treason.
Mr.. j. S. Lloyd, one of the greatest
of the Euglish authorities on money
says:
Against the actual exaustaticn OF
her treasury ty drain through the
foreign exchanges, the bank of Eng
land, under almost anv circumstance:
has the power to protect herself; bu
to do this she must produce upon tht
market pressure ruinous from it.
suddencss and severity, she must save
herself by the destruction Of al
around her.
Sir John Lubbock, an cminen
London banker, and author Of ,
treaties on money, says:
The difficulty of maintaining thei
convertibility Uhe Bank of England
notes. is enhanced in this country b,
the choise Of different standar.
(gold) from that Of other nations. |
$ our metallic standard was silver, tn
, demands of this country, and thos
of all other countries. would mutual,
regulate each other, and in case an
country suddenly required, for tempo
rary motives, any great quantity, tn
demand notes would be spread owe
the whole civilized world.
! The associated bonks at the tim
of suspension, held over $4,000. 90
more coin Us reserve, than in Januar
. 1860. Of course, when the bank
suspended specie payments, the 60,
ernment was forced to TO the sam,
and from January lst 1862. to Jal
airy Isl, 1879, treasury notes wer
not redeemed in coin. Just previou
. to suspension. and while it was bein
considered. the banks proposed t
take the amount OF their coin rcserv,
# and aid to it about $3.50, ,0OO. 900 {
the government bands then authori;
|. ed to be issued. and make the agyr,
= gate the basis for currency Wit
which to carry on the war. and pr,
hibit the further uss of demand note
!. this being rejected. suspension {
specie payments was declared as
retaliatory measure. At the time {
e suspension. there had been issue
u $33, Ago. 900 Of these demand note
Secretary Chase Continued their issu
until the whO.e $50, 900. 900 were