Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-09-17
THE BANK OF ENGLAND.

Some days ago the London Times an
nounced that the directors Of the Bank
Of England had agreed TO "do something
for silver" by keeping one-fifth Of the
banks reserve in that metal, as autho-
rized by the act OF 1874. Now we have
the statement from Governor George
Sandman, of the Bank Of England. that
"all we have done is TO agree, under GER
tain circumstances, to carry out what Is
permissible under the act" referred TO.
When the London Tmess announcement
was made some of our contemporaries
jumped TO the conclusion that this silver
reserve meant the white metal In the
form of coin. But this was a mistake.
The act OF 1874 is the Peel banking act,
and the provision bearing on the silver
reserve reads:
Whereas. il is necessary to limit the
amount of silver bullion on which it shall
be lawful for the issue department of the
Bank of England to issue Bank of Eng
land notes: be IL therefore enacted that 1t
shall not be lawful for the Bank of Eng
land TO retain i'm the issue department of
the said bank at any one time an amount
of silver bullion exceeding one-fourth
part of the gold coin and bullion at such
time held by the Bank of England in the
issue department"
As we understand it, should the Bank
of England act upon this authority. the
only effect if any. would be TO put up the
price OF silver bullion. 1t would. we
Imagine. materially advantage no class
except the silver mine-owners. But
granting, as is claimed in certain quar-
sers, that the banks holding the silver
reserve authorized would be concession
TO bimetalism by international agree
ment. we are still in the position of
counting chickens before they are hatch
ed. What the Bank OF England has
agreed TO do has a string TO it. What
are the certain circumstances" under
which IL has agreed to do what is per-
missble under the act of 1874? In 1881 II
agreed by virtue Of the act TO make
under certain circumstances" or cond
lions concessions to bimetallism. but the
agreement never came TO anything. AT
the Paris conference OF that year Mr..
Freemantle representing Great Britain.
presented communication from the
Bank Of England embracing an agree
ment on its part 10 receive silver and
issue its notes therefor to the extent OF
one-fourth of the gold held in its issue
department. 50 that the total metallic re-
serve should be four-ffths gold and one
fifth silver, provided the minis of other
countries would return 10 such rules as
would insure the certainty Of the con-
version of gold into silver and of silver
into gold" All of the banks notes were
payable i'm gold on demand, and it was
required by law TO receive all the gold
offered TO 1t in exchange for its notes.
Mr.. Thurman, however on behalf Of the
delegates OF the United States, took the
position that while the United States
would not reject any and every propo-
stion which came short of perfect BIZ
metalllsm, he was bound 40 say that
proposition which would expose this
country TO alternate drains of gold ana
silver according as the one or the other
should command "a premium in the mar
ket would not be acceptable.
The Paris conference come TO an end
"iNhVut iSdNhihb any COnciuSlOnS, except
that 1t would reassemble in April of the
following year, which 1t failed to do.
and thus the matter was practically
dropped. In view OF this bit of experience
and the explanation IL affords OF
British ideas Of bimetallism. it is more
than reasonable to suppose that the
Bank of Engl9nd's present string is the
same as. or similar TO. that it attached
10 its proposition OF 1881.
We would rejoice TO see bimetallism
by international agreement Such a
contamination is deyoutly to be wished
Tor IL involves. We believe. the true solu-
ton OF the worlds monetary problem.
Consequently we would hail with delight
hhe opening, even In the slightest.