The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-29

| but for each pound or stcrling not's '""t
Il issues IL must have a pound sterling OF
gold in its vaults. Neither department
has any right under the act, TO touch
any OF the funds OF the other depart
mont.
Now in the years lsi7. 1871 and 1856
they had financial panIcs In Great Britain
In each OF which e seemed certain that
/ the Bank OF England word be compelled
/ 10 suspend specie payments. What was
4 done? In each case Tho Executive Gov
eminent OF England authorized the Bank
/ ing Department TO invade the Issue De-
/ partment. and take It's gold that was
I there by law 10 back It's notes and lend
/ II out. or pay IT out in answer to checks
upon the deposits IT held having the note
| circulation. that the English people boast
| Is always backed pound for pound, by
/ gold. with no other backing whatever
/ bat tho assets and credit OF the bank.
I This was done IN each Of the crises
named. and ~ 1856. under this authority.
| the Banking Department actually Invaded
/ the Issue Department. and took part Of
I us gold from it. The bank was saved,
therefore IN each case by a violation Of
law only upon the part Of those who are
charged with The duty Of seeing that The
| law is not violated.
And what does the boosted orgaaiza-
ton Of the Bank OF England amount
! to- We submit that 10 IS tire most cum
brous machinery for dong nothing that
the world has ever fcen. According 10
! the most recent statement OF its condi-
| ton that we have SEEM It has out now
c15.Ooo0 600 Of notes backed By the bonds
Of Eng. and. and csQoDQoo Of it, notes
backed pound for pound hy gold. or what
value 90 tie people or Great Britain
are these ego.0o0o)? There is a pound
OF god I'm the vaults OF the bank FOR each
pound OF these notes. Why would not
| the people receive just tho same adj
vantage from the gold rs they receive
I from tho notes? There SIS the difference
/ I'm convenience in carrying notes rather
/ than coin. but that amounts 10 very
/ simple matter. When a man is going
| from one place to another expecting TO
/ use considerable money at the latter he
/ docs not carry IL In cash. Ile carries ex-
change ON tho latter place. There is no IN
| conroniouce Ga carrying In the pocket. In
gold coin. all the money that tho ordi-
! nary traveller needs in travelling. So far
thon. as domestic affairs are concerned.
wo see almost no benefit 10 the people in
the notes the bank issues against coin.
But. say the infatuated people who
/ think The Bank Of England, the model for
all banking. the Raul, Of Englands notes
are as good as gold all over tie world.
/ Granted that it may be 50. But Of what
advantage is that TO the people Of Eng
| land? The English people 90 not Go q
,nilnonth part Of their foreign business
with Bank of England notes. They do Il
with exchange. A traveller is occasional
ly forced TO ask foreign banker to give
him some money of the country be is i'm
for a Bank Of England note, ana that is
almost the only occasion when one Of
them turns up i'm foreign transactions.
| The provision Of tho banks charter
which allows 81 to issue 2l5.ocoCo0 OF
notes against Government bonds is the
only one chat has amy practical utility
ana that Is only useful by comparison as
tending to make banking profitable. IL
would be infinitely more useful IF it were
written in language that allowed the
| directors to issue such notes a. they
| In, ff.f f.t. lr
form they preferred TO have them. So
much FOR the way in which England has
cramped and hurt banking by undertaking
to NEEDLE with the subject with
statute law. But aforctime. and before
astnte wiseacres commenced interfering
with the matter. a system OF banks had
grown up all over England Scotland, Ire
/ land. and Wales. that had had no limita-
! lions put upon them, and these banks
flourish now all over the kingdom. issu-
! ing their notes for the convenience Of the
people who dwell near them. though they
arc AT a discount q short way from the
! banks that issue them. and giving 20 the
people Of Great Britain the most salts
!
that any people I'm the world has. Tn the
/ little kingdom of England there are 2.o'0
/ OF these banks. and ia Scotland there
are about 1000 of them. They have ont
now So 600. 900 Of their notes. and S32.90er
600 Of these have no backing wnatcver
/ but the general credit OF the banks That
issue them. The English have the perfect
system. we had in 1861. though ours was
comparatiycly new then and not fully de-
veloped all over the country, and nothing
( could make them give it mp. II Is the
plan Of our Constitution and il we "oDi'
return to 1t. our financial troubles would
come TO AN end.
THEY CHANGE ThEIE TUNE
There are some very funny Things aoo"-