The Express.
London, England, 1852-07-09 00:00:00

the greatest borrower
Thus it

____ __
Bo¢aaw•s end r .
From the public ~
To the or
by notes ar.d IL 'ate .
bills in circu-
lation L 12,610,653 Tr' urdistd."-:1;,,27,8 1,,,....
By &To:Wu 7,506,979 I o annuities .. 10,75,5,395
Front indort

duals as psi.
•.ite deposrs.. 12,831,028

T0t,41., LE3,041,0360 I Total L 38,629,021
On the total VIM that it borrows it pays no in-
terest whatever ; on the total sum that it lends it
receives an interest determined in part by act of par-
liament and in part by the market rate of interest.
On 11,000,0001. of its loans the Bank receives from
the government a fixed interest of 3 per cent., equal
to a sum of 330,0001. a year. What rate of interest
it receives on the remainder of its loans we know
not, but, assuming it to be 21 per cent., the sum will
be about 421,81121. Besides that, it receives for the
management of the National Debt 248,0001. a year.
Thus for interest on money which it lends, and
from payment on account of managing the debt, it
receives 1,199,8621. a year from the state and from
its private debtors.
As a set-off to its gains, it has to pay the state
120,0001. a year for its peculiar pnvilegcs. Of
course those privileges are restraints on other men,
and it pays the government that sum for permission
to impose those restraints on the public. The go-
vernment, which is naturally bound to prevent all
such restraints, accepts the 120,0001. as a kind of
bribe for infringing its duty towards the public. Tho
Bank has also to pay 00,0001. a year as compensation
fur stamps. Under the present regulations, Bank
notes are really an authorised government paper
money, and though the Bank has all the advantages
of the issue—for which it pays the sum just men.
tioned—it must also receive credit for the expense
caused by the issue, estimated by Sir lt. PEY.J. at
113,0001. per annum. On the whole it is at an ex-
pense of 293,000/. for the privilege of issuing this
paper money. With the expenses of its establish-
ment for managing the national debt, and for carry-
ing on its business, we are not acquainted; but as we
read the terms of its contract, and the use it can
make of its privileges,

The Bank receives from the public £1,199,862
And it pays the public 293,000

Leaving a balance in its favour of 906,662

From which is to be

Y. b?ith

amount—the expense of the establishment, including
the payment of the dividends.
The Bank hes another function to perform. It is
bound to give in exchange for all the gold bullion
brought to it Bank notes at the rate of 31. 17s. 9d.
per ounce of gold, and as the gold when coined will
redeem Bank notes at the rate of 31. 17s. 100. per
ounce, which more than covers the expense of coinage,
there is for the Bank a small profit on the transac-
tion, and the more it buys on these terms the
greater is the profit. It is supposed by many persons
that the Bank loses by having such an immense stock
of bullion in her vaults; but the statement above shows
that the larger part of this sum really belongs to the
Bank creditors, the Government, and the private de-
positors. The stock of the Bank which really lies
idle is what is called the Reserve, which amounts to
14,700,128!., but of this 14.244,626/. consists of its
own notes, which nobody has any demand, or use for,
on the Bank terms. The Bank would gain more
undoubtedly by being able to employ more of the
money of its customers, but, the whole capital of the
Bank being only 17,630,9441., and the Bank lending
a much larger sum, none of its capital lies idle. The
condition of the Bank, therefore, at present is ono of
combined privileges and restrictions ; and while
there is little doubt that the latter are injurious to
the community, latterly • question has been raised
whether the former—combined as they are with cer-
tain duties—be beneficial to the Bank.

With a capital of 17,630,9441., making only five
per cent., the Bank would clear 881,5431. in the
year ; but it might possibly make eight or ten per
cent. were it perfectly free to act, and no restrictions
were placed on it as a bank, and no pri-
vileges granted to it. The probabilities are
that it would make more than at present, while
it would not he the means of imposing restrictions
on the general trade of the country. On account of
its vast command of capital, and old custom, it ought,
and would still be, the bank of the government, and
would obtain all the advantages it now possesses
from having a customer of such large resources and
such ill-regulated expenditure.
From the Bank having so large a reserve from
such a quantity of the capital of its customers
lying unemployed, and from the low rate of
interest prevailing, it is plain that at pre-
sent capital is redundant in relation to the
demand for it. The redundancy is more the
consequence of production and distribution being
facilitated than of any lack of enterprise. Every
branch of industry is well occupied, and new branches
are continually opening. Though capital is con-
tinually accumulating, the demand for it is continu-
ally extending. But accumulation is going on all
over the world, while enterprise is not so extensive.
We were informed a few days ago, for example, that
the Germans are investing capital in the United
States Stocks. There iscomparatively little demand
for capital in Germany and France—there is compa-
ratively. little enterprise in them; and instead of
borrowing extensively from us—as the Germans and
French would do were enterprise rife on the conti-
nent—they lend their own capital to other countries.
One cause, therefore, of the redundancy of capital in
England is the deficiency of enterprise on the con-
tinent.

Another cause is mechanical and other improve-
ments which make the capital of other nations avail-
able for our purposes. It is notorious that the
facility of communication between all parts of our
coustry makes all the small and country dealers
keep very small stocks. They can have whatever
they require at a few hours' notice, and therefore do
not tiny largely in advance. Suppose they require
sugar—it is lying in the docks, the property of a
Porto Rico or Havana planter, consigned here, but
not sold, till some country grocer, or some interme-
diate agent, actually requires it for nee. All such
improvements as railroads and telegraphs make less
capital requisite for the operations of all country
dealers, end throw back the necessity of having
capital more and more on the actual producers of
commodities. Thus it comes to paw that the capitals
of foreign producers enable many home distributors
to dispense with capital, or to carry on their business
with a diminished quantity, and hence capital be-
comes redundant in relation to enterprise.
But this is an evil which is feat leading to a cure.
Abundance of capital lacking profit lowers its terms
and stimulates enterprise. Enterprise is thus made
to feel political restrictions, and demand their abate-
ment or abolition. Rulers do not turn a deaf ear to
a voice which tells them of increased revenues and
increased power. Thus the redundancy of capital,
now complained of, must force on further freedom for
industry here and abroad. A part of that progress
will probably be to take from the Bank of England
its troublesome privileges, and release other men from
the restrictions they impose. From the present re-
dundiumy of monied capital, it may'be inferred that
some of the most obnoxious restrictions now in exist-
ence are these on its fees employment in banking,
and the abolition of such restrictions may be looked
forward to as one of the next improvements in our
commercial policy.

ATTE/04001f DESPATCH or Lanais TO EDOC-
ellitalli •PID OLAIKAM.—A Clement Post-ones notice,
dated July, 1862. states that on and after the 12th instant.
beers of letters for Edinburgh and Olusow will be made up
at this °lke, to be despeted by the 'sprees train, which
haves the Easton square Station at 6 p.a. (Sundays es-
eepted.) Letters for this despeteb suet be pealed at the
receiving offline in London before 2 p.m. • at the branch
offices in Lombard. street, Borough, Charag-erose, sad Old
Casendish•street before 3 p.m., and at the Oeeeiel Peet-
office. St. Martin's-le-Orand, before 3.30 run. Newspapers
will not be forwarded be ibis attenuant nail.

NEW LETTER REcrlveYL.—The practier of
erecting cast.ircm pillars in the Musts, and forming letter
receiving beam in them, u is the rue in some parts on the
eontieeot, is about to be introduced into Jersey es an expe-
riment, previous, • n doubt, to Rs introduction into Eng-
I land. The rastofilce anaemia** in St. Muliteals.Orand
hays adored four east-iron pillar., with letter•receivina
in them, to be erected in the town of St. Helier's, in
JerseßOY y.
AL CoLLaos or timotnas.—The martial
eleetie• of fellow, into the council took place yesterday,
whim Mews. Cooper and Cuckoo were re-elected, and
Meows. Gulliver, of St. Mark's crescent, Respriserp irk,
oand Richard rartriclge, of New street, Spring-gardens,
went elected the new members no the vacancies occasioned
by toe .esignation .1 Mr. Stafford nod the death of Me.
Dalrymple.

THE EXPRESS, FRIDAY

jiat
Dr. Vero es to
Rte o"
France ig

NU

short of public expectation. It is acriyelr of a pee-
eati ad palinodia, in which the editor the Cksiti-
litionnel seeks, by crooking tha t hinges of
the knee, and fawning apt the heed which be once
described as " a fist of iron sheathed in vel-
vet," to expiate a procisiltary gesture of
independence, which has east his journal
two warnings. Still, here aid there a certain Hora-
tian Acme and point, tot wkieh Veron's style is
noted, are not wanting in this trot essay on New
France, and the texts furnished by Louis Napoleon's
political writings are cleverly timed spinet his po-
litical performances. "Never ramps, says the
doctor, " lay there before the test of any government
• field swept so clean, so eemplefe a tabula rasa.
Preceding governments have had to contend with
violent irritated parties that were still on their legs.
But the present situation is such that those who show-
ered acclamations and eulogies upon Louis Napolean
when he could do nothing, are constrained, by self-
respect, to use more reserve in their language now
that he is all-powerful. Some presumptuous and im-
provident men may cry : 'Let crowns be brought ;
let us put on festive garments, and mount the
capitol. Everybody has need of the government of
Louis Napoleon, and the government of Louis Napo-
leon has need of nobody.' Thoughts so rash, thoughts
so blind, harbour neither in the heart nor stir upon
the lips of the Prince-President." The doctor
then quote' passages from the works of the
philosophic prisoner of Ham, which may be
pondered over with advantage by the po-
tentate of France, about the duty of govern-
ments to put themselves boldly at the heed of the
great interests of civilisation, and to march at the
head of the ideas of their age ; otherwise these inte-
rmits will be leagued against him—those ideas will
leave him behind or upset him. So long as a govern-
ment has before it enemies and obstacles it ma lies
without ideas ; but, when it is neither by
perils nor impediments it must march at the had et'
the ideas of its age; and it Immune the duty
of all publicists to study those ideas. Hence
we aro to have in the papers on new Francs
discussions upon finances, industry, trade,
and all other questions that can concern the progress
of society. True, the tribune is fallen; true, the
proms is bridled; but Veron's tongue shall still wag.
Some proud fellows (Persigny and Co., no doubt)
may say, after the victory, "Pass on your way, you
am not wanted any more." But he will answer,
"Pardon still some hours of enthusiasm." The knee
of submission can sink no lower, so tho doctor winds
up with singing the praises of De Moray and him-
self (the joint proprietors of the Constitu-
Naxos!) for their generous abnegation in abstaining
from opposition after their disgrace, and contenting
themselves, after having piloted, as minister and
journalist, Prince Louis Napoleon through all his
diffiteltiss and struggles into smooth water, with
muting down in their fall as humble supporters of the
=11:t in the Corps Legislatif. I had almost
o say that this preface of " La France
Newell° " opens with the name of M. Thiers, who is
represented as having said lately to a friend (per-
haps M. Duvergicr d'Hairranne) whom he met in the
Illireeb of France, alluding to the present state of
things In France, " Cat gee ca pent darer lony-
6118t7erof the most important di lomatic events is the
return of that female politician, the Princess of
Lieven, from the baths of Germany, where she has
been pleading the cause of the President with the
Empress of Russia. Nothing has yet transpired as
to the success of the princess's mission.
With regard to the question of M. Thiers, I am
assured that the government had given instructions
to its diplomatic agents in Italy and elsewhere, that
they should in nowise be instrumental in molesting
that statesman. But as soon as the voyage of the
Duchess of Orleans to Switzerland was known, the
government's jealousy was awakened at M. Thiers's
residence in the same country; and it is said that on
this account instructions were given to the French
envoy at Berne to procure his internement. It is
declared in other quarters that no application has
brat made by the French government on this sub-
ject, and that the whole business is a gratuitous
piece of poltroonery on the part of one of the Swiss
ministers.

Madame Thies leR Paris yesterday by the Lyons
Railway to join her husband on the confines of
Switzerland.

This evening a supplement will be published to
the Moniteur, to convoke tho Electoral Colleges for
the 31st July, for the election of the councils-general
and municipal councils.
Oalignani says :
The mayor of the town of Vernon, and an inspector of
domains, assisted by the jugs de pair, the commissary of
police, and the lieutenant of gendarmerie of Emu:, with
the brigade. of Vernon and Peg, presented themselves on
Monday at ewe of the entrances to the Chateau of filly, the
property of the Orleans family, end previously occupied by
the Duchess Dowager. A mammon* was made to open the
gates, bat the esperior employee of the chateau replied that
they would not. The mayor than repeated three times the
summons to open. The refusal being persisted in, orders
were given to a locksmith to force the lock. The mayor of
Vernon and the inspector of domains found no other ob.
stale, and, havingraetrated to the interior of the chateau,
took formal possession of it.
The harvest has commenced in the environs of
Valence. The crops are abundant, and the grain of
good quality. Potatoes are also very fine in ap-
pearance.
A considerable fall in the price of wheat has taken
place in the Paris market. The quotation, which
about a week since was 35fr. the 100 kilogrammes,
is now only 30fr. 31c. The supply in hand amounts
to 8,135,400 kilogrammes.
The government is now engaged in preparing a
bill for the internal administration of Algeria.