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stop, their creditors may ulti The Bank of England may permately be paid the whole of their haps propose, as they did upon a demands, but the delay and shock former occasion, the extension of to credit máy, in the mean time, the term of their exclusive privi. involve them in the same diffic lege, as to the metropolis and its culty, and is always attended with neighbourhood, beyond the year the greatest injury and suffering 1833, as the price of this concesin the districts where such stop- sion. pages occur.
If this be the case It would be very much to be where the solidity of the bank is regretted that they should require unquestionable, what must it be any such condition. when (as too often happens) they It is clear that in point of serest on no solid foundation. curity they would gain by the con
In Scotland there are not more cession proposed to them, inasmuch than thirty banks; and these banks as their own safety is now neceshave stood firm amidst all the con- sarily endangered by all such convulsions in the money-market in vulsions in the country circulaEngland, and amidst all the dis- tion as we have lately and formerly tresses to which the manufactur- witnessed. ing and agricultural interests in In point of profit, would they Scotland, as well as in England, lose any thing by it, for which have occasionally been subject. they are entitled to demand com
Banks of this description must pensation ? necessarily be conducted upon the It is notorious, that at the pregeneral understood and approved sent time their notes circulate in principles of banking.
no part of England beyond the Individuals are, from the nature metropolis and its neighbourhood, of the institutions, precluded from except in Lancashire; and perhaps speculating in the manner in which for that district some special propersons engaged in country, and vision might be made. even in London banks, speculate But as it is the interest, so it in England.
has been, and ever will be, the enIf the concerns of the country deavour, of the country bankers to could be carried on without any keep the Bank of England notes other bank than the Bank of Eng- out of circulation in those parts of Tand, there might be some reason the kingdom where their own cirfor not interfering with their ex- culation prevails. In this they clusive privilege; but the effect of must always be successful, whilst the law at present is, to permit public credit continues in its ordievery description of banking, ex nary state, and the exchanges not cept that which is solid and se unfavourable to this country. The
consequencesare, that in such times Let the Bank of England reflect the Bank of England becomes in on the dangers to which it has a manner the sole depository for been recently subject, and let its gold; and in times of an opposite directors and proprietors then say, tendency, the sole resort for obwhether, for their own interests, taining it; that at one period their such an improvement as is sug- legitimate profit is curtailed by an gested in the banking system is accumulation of treasure beyond not desirable and even necessary. what would be required by a due
attention to their own private
Should the Bank be disposed to safety as a banking establishment; consent to a measure of this nature and at another period they are ex
in time to enable the government posed to demands which endanger to announce such a concession at that safety, and baffle all the ordi- the opening of parliament, it nary calculations of foresight and would afford great facilities to the prudence.
arrangement which they may have If, then, the Bank of England to propose for ensuring the stability has no country circulation, except of private credit, in which the
supin the county above named, the port of public credit and the mainonly question for them to consider tenance of public prosperity are is, whether, on the ground of pro so materially and closely involved. fit, as well as security to them No. II.-At a Court of Direcselves, the existing country circu- tors at the Bank, January 20: lation shall or shall not be improved. This Court having taken into
With respect to the extension of consideration the important paper the term of their exclusive privi- received from the first lord of the leges in the metropolis and its Treasury and the chancellor of the neighbourhood, it is obvious, from Exchequer, have resolved, what passed before, that parliament That, however: essentially they will never agree to it.
may differ on certain views and Such privileges are out of fa- sentiments therein laid down and shion ; and what expectations can expressed, it is not for the court at the Bank, under present circum- the present moment to offer any stances entertain, that theirs will opinions of their own,
paper be renewed ? But there is no rea- appearing to be intended as declason why the Bank of England ratory of the grounds on which should look at this consequence his majesty's ministers have come with dismay. They will remain to the determination to require the a chartered corporation for carry Bank to give up its exclusive priing on the business of banking. vilege as to the number of partners In that character they will, we engaged in banking, except withtrust, always continue to be the in a certain distance from the mesole bankers of the state, and with tropolis. these advantages, so long as they It cannot, however, be consiconduct their affairs wisely and dered inconsistent with this forprudently, they always must be bearance, to state the apprehenthe great centre of banking and sions of the court of circulation.
that. confidence is not so fully reTheirs is the only establishment stored as lord Liverpool and the at which the dividend due to the chancellor of the Exchequer seem public creditor can by law be to imagine. paid.
Though the panic has subsided, It is to be hoped, therefore, that credit, both public and private, rethe Bank will make no difficulty mains in a very uncertain and anxin giving up their exclusive privi- ious state, leges, in respect to the number of That the country circulation is partners engaged in banking, as to in many parts extremely defective,
miles from the cannot be controverted;, and the metropolis,
Bank would very reluctantly op
pose itself to any measures tend- exclusive privilege as to the numing to ameliorate it, but would be ber of partners engaged in banking glad to promote that object, either at a certain distance from the meby fresh exertions on their part, tropolis ? should such be found practicable, Î'he first lord of the Treasury or by any reasonable sacrifice. and the chancellor of the Exche.
Under the uncertainty in which quer are satisfied that the profits the court of Directors find theme of the Bank would in no degree selves with respect to the details be affected by their consenting to of the plans of government, and such a proposal. the effect which they may have on Convinced of this, and that its the interests of the Bank, this adoption by the Bank is as imcourt cannot feel themselves justi- portant to their own security as to fied in recommending to their pro- that of the public, it does not apprietors to give up the privilege pear that the Bank can be equitably which they now enjoy, sanctioned entitled to claim any compensation and confirmed as it is by the so- for the surrender of this privilege lemn acts of the legislature. of their charter.
No. III. The first lord of the Against any proposition for such Treasury and the chancellor of the compensation the first lord of the Exchequer have duly considered Treasury and chancellor of the the answer of the Bank of the 20th Exchequer formally protest ; but instant.
if the Bank should be of opinion They cannot but regret that the that this concession should be accourt of Directors should have de companied with other conditions, clined to recommend to the court and that it ought not to be made of Proprietors the consideration without them, it is for the Bank to of the paper delivered by the first bring forward such conditions. lord of the Treasury and the chan Fife-house, Jan. 23. cellor of the Exchequer to the go
No. IV.-At a Court of Direcvernor and deputy governor of the
tors at the Bank, January 26; Bank on the 13th instant. The statement contained in that court the following minute of the
The governor laid before the paper appears to the first lord of
committee of Treasury, viz.the Treasury and chancellor of the Exchequer so full and explicit on Committee of Treasury, Jan. 25. all the points to which it relates, The Committee of Treasury that they have nothing further to having taken into consideration add, although they would have the paper received from the first been, as they still are, ready to lord of the Treasury and the chananswer, as far as possible, any spe- cellor of the Exchequer, dated cific questions which might be put, January 23, 1826, and finding that for the purpose of "removing the his majesty's ministers persevere uncertainty in which the court of in their desire to propose to reDirectors state themselves to be strict immediately the exclusive with respect to the details of the privilege of the Bank, as to the plan suggested in that paper." number of partners engaged in
After all, the simple question banking, to a certain distance from for the Bank to consider is, whether the metropolis, and also continue they are willing to relinquish their to be of opinion, that parliament
would not consent to renew the row, owe, or take up, in England, privilege at the expiration of the or in Dublin, or within fifty miles period of their present charter; thereof, any sum or sums of money, finding, also, that the proposal by or any promissory note, or bill of any the Bank, of establishing branch such society or copartnership, paybanks, is deemed by his majesty's able on demand, or at any less time ministers inadequate to the wants than six months from the borrowof the country, are of opinion, that ing thereof, or to make or issue it would be desirable for this cor- any bill or bills of exchange, or poration to propose, as a basis, the promissory note or notes of such act of the 6th Geo. 4th c. 42, society or copartnership, contrary which states the conditions on
provisions of the said recited which the Bank of Ireland relin- acts of the 21st and 22nd years of quished its exclusive privilege; this king George the 3rd, or of the 1st corporation waving the question and 2nd of his present majesty, of a prolongation of time, although save as provided by this act in that the committee cannot agree in the behalf. opinion of the first lord of the “And be it further enacted, that Treasury and the chancellor of execution upon any judgment in the Exchequer, that they are not any action obtained against any making a considerable sacrifice, ad- public officer, for the time being, verting especially to the Bank of of any such society or copartnerIreland remaining in possession of ship, whether as plaintiff or dethat privilege five years longer fendant, may be issued against any than the Bank of England. member or members, for the time
The act above alluded to con- being, of such society or co-parttains the following clauses, sections nership, and that in case any such 4 and 18. [See the annexed execution against any member or paper, marked A.]
members, for the time being, of (A)-"Provided always, and be such society or co-partnership, it further enacted, that nothing in shall be ineffectual for obtaining this act contained shall extend, or payment and satisfaction of the be construed to extend, to enable amount of such judgment, it shall or authorize any such society or be lawful for the party or para copartnership, either by any mem- ties so having obtained judgment ber or members thereof, or by their against such public officer for the agent, or any other person on be- time being, to issue execution half of such society or copartner- against any person or persons who ship, to pay, issue, or re-issue, at was or were a member or members Dublin, or within 50 miles there- of such society or co-partnership, at of, any bill or note of such society the time when the contract or conor copartnership, which shall be tracts, or engagement or engagepayable to bearer on demand, or ments, on which such judgment any Bank post-bill, nor to draw may have been obtained, was or upon any partner or agent who were entered into. Provided almay be resident in Dublin, or ways, that no such execution as within fifty miles thereof, any bill last mentioned shall be issued of exchange which shall be payable without leave first granted on moon demand, or which shall be for tion in open court, by the court in less amount than 501., nor to bor- which such judgment shall have
been obtained, and which motion The first lord of the Treasury shall be made on notice to the per- and the chancellor of the Excheson or persons sought to be charged; quer cannot conclude without adnor after the expiration of three verting to that part of the paper years next after any such person or of the Bank which respects branches persons shall have ceased to be a of the Bank of England. In member or members of such society their paper of the 13th of January, or co-partnership."
the first lord of the Treasury and Resolved, -- That the foregoing the chancellor of the Exchequer recommendation of the committee have stated the reasons why they of Treasury be agreed to; and that are of opinion that, under all the the
governor and deputy governor present circumstances, the estabbe requested to lay it before the lishment of branches of the Bank first lord of the Treasury and the of England would not of itself be chancellor of the Exchequer. sufficient to meet all the exigen
No. V.-The first lord of the cies of the country ; but they are Treasury and the chancellor of the so far from wishing to discourage Exchequer have taken into con- the establishment of such branches, sideration the paper delivered to that they are decidedly of opinion, them by the governor and deputy that the formation of them, under governor of the Bank, on the 27th proper regulations, would be highly instant.
advantageous both to the Bank They think it right to lose no and to the community, time in expressing their concur Fife-house, Jan. 28th. rence in the proposition which has been sanctioned by the court of
No. VI.-At a general Court of Directors , as to the exclusive pri- Bank of England, Friday, Fem
the Governor and Company of the vilege of the Bank of England, and are willing to agree that the bruary 3rd : two clauses inserted in the Irish Resolved --That this Court do act last year, and referred to in the consent to the terms proposed to paper communicated by the gover- the Bank, in the papers now read, nor and deputy governor on the and do request the court of Direc27th instant, shall be inserted in tors to carry the arrangement into the bill, which will be necessary to effect. give effect to the new arrangement.
REPORT from the Select COMMITTEE of the House of COMMONS,
on PROMISSORY Notes in SCOTLAND and IRELAND.
As it appears to your committee The first notice of banking in to be advisable to consider the state Scotland, which occurs in the Staof circulation in Scotland, sepa- tute-book, is an act of king Wilrately from that in Ireland, they liam the 3rd, passed in the year will, in the first instance, report 1695, under which the bank of the result of the inquiries which Scotland was established. By this they have made with reference to act an exclusive privilege of bankthe case of Scotland.
ing was conferred upon that bank;