n
December, to 4 per cent. in January, and to 3-1/2 in June following. The
distress and revulsion of 1847 were consequent upon the over-trading
and railway mania of 1844, 1845, and 1846, and the failure of crops in
Ireland and England in 1847.

The distress of England in 1847 was scarcely over when France was more
severely affected than at any period since the Continental War. Louis
Philippe abdicated in February, 1848, when consols closed at 88-7/8. By
the close of the week they fell to 83, upon the formation of a
provisional government. The political dissensions and commercial
revulsion led to a large withdrawal of gold from the Bank of France, and
finally the Government authorized, in March, the suspension of the bank,
which was followed by the suspension of the Bank of Belgium and by the
_Societe Generale_.

Again, in 1857, the Bank of England was on the verge of suspension. Lord
Palmerston and the then cabinet issued an order, November 12,
authorizing the bank, if they thought it advisable, again to violate the
charter; but it was found at the last moment unnecessary.

November was the critical period of the year 1857. The _Times_ of
November 12, 1857, contained these announcements:

1. Bank charter suspended.

2. Interest in London, 10 per cent.

3. " in Hamburg, 10 per cent.

4. " in Paris, 8-1/2 per cent.

5. " in New York, 25 per cent.

6. Suspension of cash payments generally
by all banks in the United States.

7. Two banks stopped in Glasgow,
and one in Liverpool, and a great bill
panic in London.

8. Commercial credit and transactions
almost suspended in the country.

9. Bullion in the bank, L7,170,000.

10. Reserve notes in the bank, L975,000.

11. Bank liabilities, L40,875,000.

'One gentleman, during the heat of the excitement at Glasgow, went
into the Union Bank and presented a check for L500. The teller
asked him if he wished gold. 'Gold!' replied he, 'no; give me
notes, and let the fools who are frightened get the gold,' Another
gentleman rushed into the same bank in a great state of excitement,
with a check for L1,400. On being asked if he wished gold he
replied, 'Yes.' 'Well,' said the teller, 'there is L1,000 in that
bag and L400 in this one.' The gentleman was so flurried by the
readiness with which the demand was granted that he lifted up the
bag with the L400 only, and walked off, leaving the L1,000 on th