The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-27


really be true that the thing that hath
been shall be and that there Is nothing
new under the sun. the American people
would do well TO take the instances We
shall cite TO heart. In 1895 Great Britain
was in the death grapple OF her struggle
with France. Spain had declared war
against her, Ireland was in almost de-
clared rebellion, the fleet In the More was
in open mutiny. internal disorders had
made the condition of England herself
exceedingly dangerous. and the French
were making open threats Of invading the
Kingdom. In these desperately trying
circumstances the Bank of England wrote
Mr.. Pitt, the Prime Minister, the following
letter:
'It is the wish Of the court OF directors
that the Chancellor OF the Exchequer
would settle his arrangements Of finances
for the present year in such manner as not
10 depend upon any further assistance
from them beyond what is already agreed
for
What was a Prime Minister. situated
as Mr.. Pitt was to do under such con-
ditions? The financial system that had
been growing up for a century necess--
tated the Government relying upon the
Eank Of England TO aid IT in straits like
those IL was in, so that Mr. Pitt was at
the banks mercy. lie had to consent to
whatever the bank demanded as the
price of its aid. and what was that? That
the Government should authorize IT to
suspend payment of its notes in specie,
ana that IT would receive the banks
notes in payment of all its revenues,
making them thereby the only currency
OF the country. The terms were granted.
the Bank OF England became mistress Of
the finances of Great Britain, specie pay
ments were suspended, and England was
the victim of an irredeemable and in
fated paper currency from that time un-
III 1921, when specie payments were again
forced upon the bank by act Of Parlia-
meat.
What happened to her? II was an era
in which lords and beggars grew as if by
magic. Merchant princes laid the founda-
lions Of fortunes which are still the talk
of the world, while hundreds Of thousands
Of working people were starving. But the
system not only pilfered and robbed the
people of that day, but it fixed upon the
necks Of future generations a grinding
yoke that Expresses yet, and will proba-
bly, continue to Cypress as long as Eng
land is a state. The necessities of the
war which England kept up from that
time until 1915 to curb the arbitrary and
despotic power Of Napoleon Bonaparte re-
quired her to borrow immense sums of
money. The English have never bor-
rowed. as we do, 10y selling our bonds
bearing a fixed rate of interest They
sell annuities as they call it. which is. in
substance this: The Government pro-
claims that it will pay $50 a year for all
time or until it returns fl 900, and it asks
how much will be paid down for the prlvi-
lege of securing this contract. 1T IS plain
that if Fl 900 are paid it for the privilege
it will have borrowed money al per
cent. But if the Governments credit has
suffered, and less than f1,OoO are paid it,
the percentage at which it has borrowed
has been increased accordingly As the
war went on and the Government debt
increased her credit, Of course suffered,
so that the great bulk of the debt was
borrowed at the rate of 500 and 1900 for
an annuity Of f30, with an obligation on
the Government to return 1900 If it de-
sired TO pay off the obligation. But this
was not all. The 500 or 1900 was paid to
the Government in the deprecated bills
of the bank. with which the Government
had to pay for whatever it bought. IT
had. consequently, 10 pay greatly en-
HANGED prices for all il bought. The can
die therefore, burned at both ends. When
peace came, in 49, Great Britain owed
a debt exceeding four thousand millions
of dollars, One-half of which, perhaps,
was fixed upon her by her vicious system
OF irredeemable paper money, without
any compensation to her at all.
Here is one notable instance OF the
caamities that befall a people who de-
part from the plain and simple financial
plan which the Constitution of the United
States provided for the American PEOPLE.
We will give another tomorrow.