The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1897-08-13
usURY GOLD ExAcTs.
How PEEPS Charter Act Of 1917
Worked in England.

To those engaged in trade, manu-
featuring, farming, OF in any honest
and useful industry, no greater ealam-
ity can happen than g tight money mar
ket, sudden, and caused by artificial
continuance, 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 contFivanee 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 toeembine and
lock it up, and thus thr6wtdown the
price of stocks, wheat, cotton. andot
commodities, work a corner on the cur
reney, 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 commodity-wheat is;
but wheat is not legal tender and will
not pay debts. Mr.. Thomas Barring
mentions the fact that in 1864 a mer-
chant in Calcutta possessing E 10000 il
gold, became bankrupt because hecould
not change it for silver rupees, the only
legal tender in Calcutta.
Lord George Bentinck, discussing the
effect of this money power in the Bank
of England to contract the currency,
presents examples of its baneful inhu.
ence. In his published letter to Croker,
dated November 3;1s47, he says;r
"But viii give yo1 two or three prac-
teal examples of the working of Peel's
charter act. The act was condition
ally suspended last Monday week. The
week previous a manufacturer, hold
ing 100000 pounds-S5 OO,OOO-North-
western Railway debentures (guaTan-
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
ufacturer replied: Unjust have money.
The banker reioined: Ican't 90 it-but
stay; strike of 25 per cent. and [ will,
but give you but five minutes to con-
slider The wTetched manufacturer had
no choice but to submit to the extOrtion
or to suspend payments. Samuel Jones
Lloyd gave him e75,OOO Bank Of
England notes, and became possessed
Of 100000 ($5OO,OOO) North Western
Railway debentures. OnMonday follow
ing, the restrictures of the bank char
ter being suspended, the Bank of Eng
land was set at 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 Tediscounted for e2OO
what he himself four days before took
S125,OOO 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 adyan-
tage of the tightness of the money mar
ket (which he had aided to bring on),
extorted s125,OOO from the distressed
manufacturer, and died a few days ago,
under the title of Lord OYerstone, one
of the richest men in England, That all
may clearly understand the full mean
ing Of Lord George Bentinck's state
ment above quoted, it may be well to re-
mark, that in England, since PeePs
bank charter act of 1874, there is a 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 prime
minister and chancellor Of the ex-
ehequer together are sometimes in
duced to lift this restriction in emer-
gencies, and allow the bank to discount /
commercial paper, and issue Bank of
England notes without any geld behind
fhar,1