Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1897-08-12
usuRY GOLD ExAcTs.

How PEEPS Charter Act OF 1S4T
worked In England.
|. To those engaged in trade, manu-
featuring. farming, or in any honest
and useful industry, no greater caIam-
ity can happen than tight money mar
ket, sudden, and caused by artificial
contrivance, Edward Pierrepont re-
Gently wrote in the. columns of the Min
neapolis Press. Illustrations of this
abound in the parliamentary debates
and in the writings of Lord George
Bentinck.
OF all the subtitle devices by which the
wit of man has contrived to despoil a
community of their property. nothing
equals the continuance OF the laws
which limit the currency to gold. and.
require all debts TO be paid in legal ten
der money.
When the currency is small, IT is al
ways easy for few large corporations
and rich money-lenders to combine and
lock it up, and thus throw down the
price of stocks, wheat, cotton, and other
commodities, work corner on the cur
rency, and force those who have bills
falling due to sacrifice their property
to sustain their credit. Thus the mar
ket is made tight and extortion easy.
Money is not a ommodity---Aeati ss
but wheat is not legal tender and win
not pay debts. Mr.. Thomas Barring
mentions the fact that in 1864 mer-
chant in Calcutta possessing 6 10000 in
gold, became bankrupt because he could
not change it for silver rupees, the only
legal tender in Calcutta.
Coorrro RaV1 N thu
effect of this money power in the Bank
of England to contract the currency,
presents examples of its baneful influ-
ence. In his published letter to Croker,
dated November 3, 1s47, he says:
But 1 will give you two or three prac-
teal examples of the working of Peels
charter act. The act was condition
ally suspended last Monday week. The
week previous q manufacturer, hold
ing 100000 pounds-S50o, 000-North-
western Railway debentures (guaran-
teed five per cent. for five years. re-
quired bank notes to meet his liabilities
He went to Samuel Jones Lloyd and de
sired to have his debentures discounted.
Samuel Jones Lloyd refused. The man
ufaeturer replied: L must have money
The banker rejoined: Il can't DO it-but
stay; strike off 25 per cent. and l WILL
but give you but five minutes to con-
sider.' The wretched manufacturer had
no choice but to submit to the extortion
or to suspend payments. Samuel Jones
Lloyd gave him G75,0OO Bank of
England notes, and became possessed
of 6 100000 ($50o,0OO) North Western
Railway debentures. On Monday follow
4 -. L ~
ter being suspended, the Bank of Eng
land was set Mt liberty to discount such
security at eight per cent. for three
months. Jones Lloyd, consequently, on
Monday, could have gone to the bank
and have rediscounted for & 200
what he himself four days before took
$685. for discounting. Is not usury
like this enough to make ones blood
boil ?''
Many cases as bad as this, only OF
lesser amounts, can be cited in England.
but Samuel Jones Lloyd, taking advan-
tage of the tightness of the money mar
ket (which he had aided to bring on),
extorted $125,0O0 from the distressed
and died a few days ago,
under the title of Lord Overstone, one
of the richest men in England. That all
may clearly understand the full mean
ing of Lord George Bentfnck's state
ment above quoted, it may be well to re-
mark, that in England, since PEEPS
bank charter act of 1874, there is re-
striction imposed by the act that no
note shall issue upon any commercial
paper, however good, but only upon the
actual deposit of gold; but the primo
minister and chancellor of the ex-
chequer together are sometimes in
duced to lift this restriction in emer-
gencies, and allow the bank 10 discount
paper, and issue Bank Of
notes without any geld behind
them.