The times. [volume] (Richmond, Va.) 1890-1903, 1897-09-19
SUNDAY. SEPTEMBER, 10, 1897.
THE ACTION OF THE BANK or Eng
land

AANlgs
The proceedings that have recently
taken place in the Bank Of England in
relation 10 silver az a part OF its reserve
are so unimportant from a practical
standpoint that we have heretofore paid
hut little attention 10 them. They are
so much discussed, however. that We ieel
I've owe Il 10 our readers 70 treat the mat
ter more fully than we have so far done.
IT Is true that the Bank bf England has
been In existence two hundred years. but
its actual charter IS only hfty-three years
old. In 1914 under tho administration OF
Sir Robert Peel, the Bank was wholly re-
organized and constituted upon an en-
tlrely new basis. in that year an act
of Parliament was passed which IS the
present charter OF the Bank. England
had adopted the gold standard by act OF
Parliament passed in 1916, but the rela-
ton OF silver to gold in 1874 was not ma
terially different from what it had been
for a long time so that It was not deemed
at that time a matter Of any special
Importance that the Bank was allowed
70 hold one-hfth OF ats metallic reserve
In silver. The charter OF 1874 accordingly
provided that this might be done.
This provision Of the charter has lain
rs a dead letter until tho present excite
ment was gotten up.
But, on July 29th last, the Governor of
the Bank OF England addressed the fol-
lowing letter to Sir Michael Hicks-Beach,
the Chancellor OF the EXchequer:
Referring TO cur conversation, We beg
20 cay tho Bank is prepared TO carry out
what IS laid down as permissible in the
Bank charter, VIZ: 10 hold one-hfth OF
the bullion held against fits note issue In
silver, provided always that the French
Mint is again open TO the free coinage or
silver and hat the prices at which silver
IS procurable and saleabia are satisiac-
tory"
This IS an that has occurred, and
the whole discussion that has arisen has
grown out Of the letter addressed by the
Governor Of the Bank Of England TO tho
Chancellor Of the ExcheQuer. in bring
ing It to the attention OF the semi-annual
meeting Of the stockholders Of the Bank
on Thursday last, the Governor Of the
Bank said, I'm answer 20 questions, that
the Bank had had no negotiations with
the United states Monetary Commits
sioners. adding 1--WE have bought no sil-
yer. All we have done is TO agree under
certain circumstances. to carry out what
is permissible under the act Of lSiL'
This should encctually dispose Of the idea
that the Bank Of England has yielded TO
the bimetalists and has agreed TO take
mart i'm the rehabilitation Of silver as o.
money metal 10 IS seen that all st
proposes to do is 20 hold one-htth of It's
coin reserves I'm silver provided France
will reopen its mints to the free coinage
OF silver and that the prices at which Sill
yer may be bought and sold are salts
factory TO the Bank: which is the same
thing as TO say that they will hold this
ffth in silver when they see II as 10 their
interest 10 do SO but that they see no
prospect that It viii ever become their
Interest TO DO it, Nor IS there the slight
est probability that France will ever again
omen her mints TO the free coinage Of sil-
NCls ANNA tNaN N'Nll NtN-NNA W
more than q quarter OF century; like
this country. France has as much silver
money as she can keep at par with her
gold money. and there is no more proba-
bilty that France will reopen her minis
TO the free coinage OF silver than there IS
that England WILL
There IS nothing new IN this PROPOSE
ton Of the Bank OF England In 1851. It
submitted precisely The same PROPOSE
ton 10 the monetary conventions then
being held in Paris. but It fen perfectly
dead. il was casually referred TO by one
or two OF the speakers but no one gave
II any serious attention.
Nevertheless. an conservative men IN
England are astonished that the Bank Of
England should have moved In this mat
Ter al all and they look for nothing but
eyii from It IN the way Of encouragement
10 the bimetallists IN their destructive
work
The general and accepted explanation
sf the act In London Is this:
Although q single gold standard country