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37O The Leader and Saturday Analyst. [Ap...
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• :- . ' . 1859, . .••I860.'.
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Jan. 5. Jan. 4. March 27. April 11. ¦ ¦ ...
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Note* issued . ' . ¦ 33,043,250 30,290,8...
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THE PRESIDENT'S MOTEST. T HE most seriou...
Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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The Bank And The Discount Brokers. Th E ...
Iu January last ,-therefore , as compared to January , 1 S 59 , there was a deficiency of legal tender issued ; there was at the same time a small reserve , an increased circulation , and an increased amount of securities , on which the Bank had made advances . Subsequently , the quantity of legal tender created diminished . In January , 1300 , it av « vs . £ 2 , 752 , 505 less than in -January , 1 S 5 !)' , and in April the deficiency b £ ul increased to £ 4 , 653 , 910 . In the fifteen months there Avas a diminution of Wai ' tender to the amount of 14 per cent . Could such a diminution have taken place in metallic coin , while all the interests of the country were prosperous , without causing- a great ¦ derangement ? . ' " Was there ever an example of the metallic currency " of a country under , such circumstances diminishing so inuch . and so fast ? ^ "VVe doubt it . Yet those who made the law of 1 S 44 . professed to effect variations , in the state paper currency such as would take place -were metallic currency only in use . These facts indicate a comparatively intense demand for legal tender . If we add to the deficiency in . January las t ¦ as compared to the previous January , JE 2 , 752 , * , the diminution in the reserve of the- Bank , £ 3 . 695 , 410 ; the increase of circulation , £ 91 S , 645 ; and . the increase of private ; securities , £ 2 ; , S 83 , 107 ; Aye shall have a sum of upwards- , of £ 10 , 000 , 000 , Ayhicit is not a measure , but an indication of the comparatively increased demand for the supply of legal tender in January 1860 . As the notes issued declined , as the Bank reserve declined , as the circulation increased , as the private securities were enlarged , all .-which had occurred according to the April 4 Returns , —before the dividends were paid , the latter reached the sum of £ 24 , 964 , 7 . 04—so Avas this demand intensified . ' ¦
The public had to suffer something- more than usual in the quarter from the deficiency of legal tender by its oavh enterprise arid prosperity . Consumption Avas increased , the yield of the taxes AA'as increased , and the public deposits—at the end-of March , £ IO , 3 S 4 , 11 O , —exceeded by more than £ 1 , 500 , 000 the average of the three preceding years at the same period of the quarter . Since the dividends were paid the private securities have been very little diminished , and arc by the last return almost uncxampledly largo . The circulation , too , has increased very much , and the Bank reserve has . fallen very low ; all . of which are indications that the demand , continues intense , and that the quantity of legal tender supplied in accordance with the regulations of the State is insufficient for the Avants of the public .
Tf the State will undertake to regulate the supply , it is bound to adapt it to all the exigencies of society . Between 1 SJ .. 4 and 1859 the value of the ; exports increased from £ 58 , 534 , 705 to . € 130 , 440 , 427 . If , ' in 1 S 44 , the State thought it necessary to supply £ 14 , 000 , 000 of legal tender , issued on its debt , at least twice ' as much should have been applied in 1860 ; for the State , indirectly and directly , by the Act of 1844 suppressed much private paper . If ' . the State will increase the taxes , and withch'aw from the public use the instrument it has mado indispensable—iu order to carry on business , it is bound to remedy , if it can , tho evil it creates . If it will abolish restrictions , and
allow trade to expand , it must meet the eonscquenco by increasing legal tender money , or see its measures brought into disrepute . If it desire that commerce should pursue a steady onward course , it must not at one time pamper it with abundance , and tlion create n dearth of tho food on which it lives . It tried the system with corn , and lost character by a disreputable failure . The cunning sliding ' -scnle of a selfish banker will no more Avovk successfully than tho sliding-scale of the selfish landlords . It is " perfectly clear , from the facts placed before tho reader , that , the supply of legal tender is now insufficient , and therefore
it is high-priced . Thoreiorp , too , do the J 5 ank and the discount brokers sormnblo for tho largest share , that they may make as much as possible of the prcoious commodity . Their quarrel obviously now is , and has been since 1 S 5 . , who shall gain most by tho scarcity of the indispensable article in which they deal . Tho inovenso of securities at tho Bank shows that there is a groat domain ! for capital , though , with a favouriibl . o exchange- to bring it hither , the demand is obviously not as intense as the demand for legal tender . Tho incroaso of circulation to d ? 2 < i , l 73 , 08 * 1 shoAva an almost unprecedented demand , 3 xcept in n soason of convulsion for tho instrument ; for liquidating
can . The latest event , announced is , that a discount , broker has restored to the Bank £ 1 , 530 , 000 of the legal tender -belonging to himself , ' which he had Avitlidrawn .. He has a full right to do with , the money as he pleases . Tor hiin the question is one of business , and neither for his conduct nor against it do Avesay a single Avord . But if , as alleged by the Times , the contest ' between the discount brokers and the Bank brought that establishment into difficulties in 1 S 57 , —if , as is insinuated by Mr .
debts and discounting bills . That the discount brokers should take all they can of it from the Bank , which' clutches it closely against them , is natural . We cannot , therefore , join Avitii those who-blame ' them for AvithdraAving their deposits from the Bank ; and avc may be quite sure that they will not lock up the precious commodity ' iirtheir own safes . They require it to make moiiey by lending it , and they avill lend as much , as they prudentl y
Alderman Salamons , the great diminution of legal tender in the hands of the Bank is the result of a " concerted action oii the Bank ' s reserve to produce a disturbance in the currency ( legal tender ) of the country ; " if , as both imply , it is at any time ' the poAver of one or Wo rival traders of the favoured Bank to annoy and ¦ embarrass the whole . trade- of the country by oi ) crating on the ' very limited quantity of legal tender ordained by the law , the public * Avillsooil come to the conclusion that this condition of monetary affairs , aggravated by every increase of business . , should be promptly remedied .
37o The Leader And Saturday Analyst. [Ap...
37 O The Leader and Saturday Analyst . [ April 21 ; I 860
• :- . ' . 1859, . .••I860.'.
• :- . ' . 1859 , . . I 860 . ' .
Jan. 5. Jan. 4. March 27. April 11. ¦ ¦ ...
Jan . 5 . Jan . 4 . March 27 . April 11 . ¦ ¦ ¦¦
Note* Issued . ' . ¦ 33,043,250 30,290,8...
Note * issued . ' . ¦ 33 , 043 , 250 30 , 290 , 885 29 , 062435 28 . 389 , 340 Reserve in Bank . , 12 , 10 X 000 8 , 465 , 590 8 , 719 , 705 ^ 22 085 Circulation . . 21 , 704 , 045 22 , 620 , 690 21 * , 7 . 71 . 24 , 1 * 3 , 084 Public Deposits .. 9 . 632 , 309 9 , 159 , 556 10 , 362 , 543 5 , 878 , 135 Private Securities 18 , 209 , 742 21 , 092 , 909 22 , 575 , 833 23 , 534 , 388
The President's Motest. T He Most Seriou...
THE PRESIDENT'S MOTEST . T HE most serious drawback of the political system of the . iJnited States is just that one of its peculiarities - which-is probably deemed by most persons its greatest excellence . The sovereign people is ' too often called upon to exercise its -sovereignty " . 'What Avith the quadrennial election for -President , the biennial ones for Congressional representatives , those for governors and ' . members of local legislatures ,, for mayors , judges , aldermen , common councilmen , treasurers , supervisors , and a host of other officers—elections held at different times in different states ,
and nil , because determined by exclusively political considerations , important , , as affecting party strength and chances , to the whole Union—American politicians arc in a continual election-fever . The result of this system " ,-which avouIc ! have gladdened the heart of lioussKAU-- —Avho held that Englishmen , with all their boasts , were , really only free Avhile they Avere electing the -members of their Parliament—and Avhich is of course not Avithout its peat advantages , is to give an-utterly . false tone to American politics , and to subordinate truth and justice to mere electioneering considerations . An'American politician cannot a fiord to judge a
question upon its merits , and trust to time to conunend his honest . opinion to his countrymen . . lie must frame his decision to win the votes of the moment , and he has besides to spnik with that recklessness and licence which are perhaps excusable enough , iti the excitement of an election , but are misinterpreted by Englishmen , who cannot understand that the rant- and rage vomited by eminent American statesmen is not the expressing of their convict ions ,, or an indication of the policy they desire to pursue , but mere claptrap to influence the polls . be
Without this key to American politics , it would impossible to explain tho singular and protracted fight for the Speakcrsbip of the House of Representatives at the commencement of . the present session of Congress , and the extraordinary corruption ' charged ngninst Mr . Buchanan , as well as that gentleman's most . extraordinary repl y . Without entering upon the vexed question whether American electrons arc determined by bribery , in our senso of that term , in favour of which conclusion there is the testimony of Mr . Buchanan hhuself , as well as the general lulinioeinn r \ i' » lin mnivi iv > cnpf >(/ il > 1 p llfivfcnl' t . lin lll'CSS . 1 Ill ' s ) JUHCll admission of the more respectable part ol' the pressl . his ) m . uen
. , is certain , that largo sums of mpnoy are expended on each election , nncl the persons who find those sums expect to be reimbursed by Government officers or lucrative public coutraets . This is especially the ease Avitii the Presidential election . Tlio American civil service onjoys no permnnont tenure of oll ' iee . A man is appointed duranlv lieua pk / ci / o- ^ lio must make tho most he can out of tho place during the Presidency of his patron ; lor a host of hungry applicants , the satisfaction of whoso claims is tho new President ' s greatest difficulty , will then bo clamouring for his berth . Somo of those offices are too lucrative to be given
without conditions . How great soever u man ' s service * may have been in the . past , something is wanted from him towards tho necessities of the future , nnd an animal sum , or soi . no brother plncohuntor , is charged upon him , Now , Mr . . Tamks Buchanan is very nuioh bolied if such arrangements have not been eari'iou out on a larger scale , and in a more scandalous manner , sinoo his assumption of power than over heretofore . l $ o that as it may , this is the year of tho Presidential election , and it is t hpro-
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Citation
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Leader (1850-1860), April 21, 1860, page 6, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/cld_21041860/page/6/
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