Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1899-05-10
JOHN BULL BANKRUPT.
fhe British Government Was Once Unable to
Pay Its Debts.

ray It's DsDIS'
"Iohh Bull bankrupt" sounds strange
to-day; and the chatcellor can dfford to
smile at the idea DIS he reckons up the
nations bBl.nce sheet for 1890; but 1t
was not always sd. Once; indeed-1O2
years ago-the Bank Of England vir!
tually declared the Bristlsh govern:
ment bankrupt!
1t came about in this way: Five
years before the eighteenth century
closed France declared war against
Great Britain and Holland; and there
was d great drain ON the gold OF the
country. The most anxious man IN
Britain was Pitt, the minister OF tin-
nnce, Nhose resources were strained to
the utmost: ,, /,
EoF moHths Pitt had only 5btained
accumulation frohi the Batk 5f Eng;
land BIZ bringing great and Constant
pressure to bear upon that Institution
but nobody was iii5rt ast0ilhded tnan
Pitt when the "Old Lady Of Thread
needle street. took it to her head to
threaten England with bankruptcy. ;,
A year 6r two before the bank had
fefused tile papef Of d private bank
ing ffm, ind Compelled it thereby to
stop piaiyilieft the next day for d Mil;
lion sterling and in tile Universal sen:
satioH and confusloh which over
whelmed the financial world hun
dred country banks suspended pay;
meut. Then the government stepped
In aid Saved tHG sltuation:
But how tic govefhment itself was
Iii peril, The treasury had sent bills
to the bank for payment amounting
10 over f2n0,OO0, and there not being
sufficient gold in the country the bank
resolved on q coup d'ctat to save the
situation.
The court of chartered money chang
ers met in Threadneedle street. and re-
solved that the bills should not be dis
charged unless money was sent down
for the purpose. The meaning of such
a resolution, as those versed an the
ways Of financiers will not need to be
told, was nothing more nor less than
that the government could not meet
Its liabilities: -
Pitt treflbled whei the news Vas
brought to him, and everybody, from
the king Oh the throne to the man In
tie Street, talked. OF this and nothing
else: HOW, people asked Of one m:
o:hef; could the, government get alors
"1sh1 The bank. Of course; bad promised 10
pay gold for its notes when demiaiided;
and by refusing to do so it had broken
it's promise. But for the government
to have pressed the bank would have
intensified the trouble hundredfold,
as the government owed the bank an
enormous debt.
The king and the ministers were
summoned to town on Sunday morn
ing; a privy council was held at White
hall and meeting Of ministers in
Downing street, both of which the
king attended. There was only one
course by which the country could be
saved, and, daring as it was, 1t had to
be taken.
The government threw itself be-
tween the bank ind it's creditors. and
commanded the bank to withhold all
cash from the public uiitil rarllhn1ent
had ifiet and COME to some decision.
The prohibition wds ordered to remhin
id forte for six months dfter parllh-
hient riet, and during that period
small bank notes were isstied, and
were generally accepted as cash ey-
ei;S#hefe: =
Matters in this way righted theti
gff7es, and the wheels 5f governments
%ent round aGain.