This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1877 Excerpt: ...as the summer of 1825 approached. In cotton the first reaction showed itself, the failures in the United States making their effects felt in Liverpool, where difficulties commenced before any suspicion had arisen of the coming troubles in London. The inevitable pause which followed the cessation of demand showed very ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1877 Excerpt: ...as the summer of 1825 approached. In cotton the first reaction showed itself, the failures in the United States making their effects felt in Liverpool, where difficulties commenced before any suspicion had arisen of the coming troubles in London. The inevitable pause which followed the cessation of demand showed very soon the real character of some of the projects, which had no solid foundation to rest on: unlimited credit was replaced by general discredit ai: d distrust. In the month of December, 1825, about seventy banks in London and the country suspended payment--almost the only medinm that was accepted at that period were Bank of England notes and gold. Doubts were entertained if the Bank could continue cash payments owing to the great contraction of the circulating medinm through the destruction of nearly all the country paper, and the extinction, for the time, of dealings on credit. In the week ending the 24th December, 1825, a box containing about 600,000 of one-pound notes was discovered, and these were immediately issned, affording some relief, bnt not to the extent generally supposed, as by this time the pressure for gold had subsided. Referring to this critical period, Mr. Huskisson is reported to have said "that we were within a few hours of a state of barter." The distress among merchants at that time was considered to have been greatly aggravated by the operation of the usury law, which prevented those who might have been disposed to lend at higher rates from taking more than 5 per cent. Following several attempts to prevail upon the government of the day to afford some relief by, among other suggestions, an issue of Exchequer Bills, under a commission, the Bank was at length induced to advance to the extent of three millions s...
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