Year: 1869




A portion of the English press, commenting
upon the operations of the Bank of England
and the late advance of the rate of discount,
makes very appropriate remarks on the power
of that bank and the artificial monetary system
of England in connection with it. The amount
of gold in the issue department of the bank is
not only the controlling influence in the none
tary affairs of England, but, in measure, of
the whole world. The amount Of gold stored
there is the measure of the currency, and to a
considerable extent, the measure of business
and property. One writer says correctly that
''the miserable matter of an export of three
hundred thousand pounds sterling or 80 Of
gold to New York, coming coincidently with
q greater demand for money for temporary
purposes, has made a general disturbance Of
values and shaken the confidence of the COM
mercial community" Even the expectation Of
such small amount of gold as that named
was sufficient to make the bank put on the
screws and raise the rate of discount or inte-
rest one per cent. For the purpose of prevent
ing the outward flow of few millions tho
bank raises the rate of interest much higher.
II will be remembered that in 1866 the rate
was as high as ten per cent. Thus, at the very
time when the business community need ac-
commodation or assistance most, the difficulty
of obtaining money is greatest, through the
action of the bank. The consequence is that
bankruptcy and ruin follow, trade and manu-
factures are suspended and millions Of the
working classes are thrown out of employment
to starve or to seek relief in the poorhouses,
while the value Of property is changed to the
amount Of hundreds of millions, and all this
because few millions of gold more or less has
been exported or is likely to be exported.
Such is the monetary system Of England
system which tends continually to make the
few very rich richer still and the poor poorer.


Though sanctioned by practice and main-
tanned by the moneyed oligarchy for their own
profit and because better monetary system
has not been accepted in England, the present
one is purely artificial and has no foundation
in the laws of nature or economy. In fact it
is an incongruity. IL is said to rest on u
specie basis or metallic currency. But this is
fiction; for more than nine tenths Of the





business of England is done with paper,
either in the form of bank notes or in some
other form, and in time of war or extraordi-
nary pressure the metallic basis gives way
and the government authorizes suspension Of
specie payments. YET IL is this monetary
system, or, rather worse one, without the
advantages of controlling monetary institu-
ton like the Bank of England, that our 6nan-
cial quacks would fasten upon this country.
BY contracted currency and forcing specis
they would place the business and
value Of the country at the mercy OF
the Bank of England few foreign capitalists,
or our own gold gamblers. The drain of
few millions of gold to Europe then would
create general disturbance in trade, paralyze
commerce and industry, and change the value
of property to an amount of hundreds of mil
lions With sufficient and steady legal
tender circulation this could not take place.
Gold would continue TO be On article Of COM