Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1893 edition. Excerpt: ... section xxi. the administration of A bans during seasons op pressure on the money market may be defined a x difficulty of getting money in the London market, either by way of discounting bills, or of loans upon Government securities. This difficulty is usually accompanied by an unfavourable course of exchange, a contraction of the circulation of the Bank of England, and a high rate of interest. These three circumstances have the relation to each other of cause and effect. The unfavourable course of exchange induces the Bank of England to contract her circulation; and the contraction of the circulation, by rendering money more scarce, increases its value, and leads to an advanced rate of interest. The removal of the pressure is in the same order: --the foreign exchanges become favourable--the Bank of England then extends her circulation--money becomes more abundant, and the rate of interest falls. The degree to which the exchanges are unfavourable is indicated by the stock of gold in the Bank of England; and when this is at its lowest amount the pressure may be considered to have attained its extreme point; for as the amount of gold increases, the Bank will extend its circulation, and the pressure will subside. If we take a review of all the recent pressures on the money market, we shall find they have always been preceded by the following circumstances: --First, by abundance of money; secondly, by a low rate of interest; thirdly, by pressure. some species of speculative investments. The principal pressures that have occurred of late years, have been those of 1825, 1836,1839,1847, 1857, 1866, 1875, and 1878. The following is Mr. Horsley Palmer's opinion of the causes of the pressure of
