The Express.
London, England, 1847-10-08 00:00:00

A PLAN FOR A DOMESTIC CURRENCY.

Our object to-day is to give an analysis et this
pamphlet, written by a gentleman well known in the
banking world. Comment we shall reserve to a future
opportunity.
The purpose is to explain—let. How a requisite amount
of domestic currency may be supplied. 2nd. How it may
be maintained unaffected by the Foreign Exchanges, and
3rd. How the necessary sum in ged is to be provided.
Ist. The first object can be effected by the establishment of
a bank issuing notes having twelve months to run and thea
payable in ounces of gold ; the pound sterling being I oz. of
Twelve months after date I promise to pay to bearer one
thousand pounds (i. e., 250 ounces of standard gold) value
received. A. 8., Cashier.
£lOOO 0 0 sterling.
Notes upon the quarterly sum:due Isy the public in taxes,
say 13,000,000 might be issued quarterly in payment of the
public dividends and current expenses of the government,
and • further sum of 10,000,000, more or leas, in notes,
might be issued to the London bankers for the discount of
bills not having more than three months to run, which notes
would be returned within three menthe in due payment of
those bills. Hereby would be established • circulation of
about 23,000,000, I mean such an amount of circulating
medium as experience would dictate to be necessary for the
requirements of the country. This operation would have to
be repeated every three months.
2ndly. This currency would be independent of the foreign
ex-hoarntreLocatemplated bank would not have the functions
of bullion-dealers sa is now the case with the Bank of Ens.
land. Hence gold, which in the usual course of trade bee a
tendency to flow into England, would be bought by the hel-
lion-dealers, and be in turn sold by them to the merchants
whenever it should be required for export in the balance of
trade. The demand for gold from the bullion-dealers would
accordingly enhance its price, and render it dearer to the
foreign merchant, when he might require it, than our mann.'
factured goods. He would thus be induced to accept mann,.
factures in place of gold, with which he could trade, if so dis-
posed, and realise • profit unattainable if he had taken gold;
and the export of manufactureswould greatly benefit the
British producers. Also, in the proposed system, the bank-
note cannot be depreciated. For, suppose that, owing to large
purchases of corn or any other import, gold is in demand,
the bullion-dealers will endeavour to increase its price, but

in this case, if they succeed in augmenting the prat. beiond
41. per es., I propose that the bank should charge more the
4 per cent. for discount of bills (which I would hare to be
their minimum rate) say to 4i or s:per cent.
The writer then proceeds to show that not.ri
the rise in the price of gold, the bank notes, though
would not be depreciated, owing to the rise in the rase
discount.

The CUTlAlation, according to the author, would be un-
diminished by any difference in the foreign exchanges.
For, though notes due and over-due should be presented
for gold,whea gold is needed, as above supposed, in payment
of the balance of trade, and those falling due should be
hoarded to obtain gold, and those with some months to run
should: be exported instead of gold and be due on their re-
turn; still, to replace the consequent diminution in number
of the notes, at present irremediable, I
.propose that the
bankers should be able to go to the issuing bank and dis-
count their bills, but, by reason of the rise in price of gold,
4S or 6 per coot. discount should be charged them, 6 per
cent. being the maximum rate contemplated,
3rd. Lastly, to provide a necessary amount of gold for the
bank. . . . .

It bag been estimated that there are in circulation more
than 60,000,000 of ooined fold occupying the place of 11.
notes. Many millions of this gold can be procured for the
proposed bank by an issue of notes for 31. and 41. each, in
addition to the other now in circulation, the execution of
which might be rendered superior to the possibility of for-
gery. The required amount of gold would thus be raised,
and these notes would remain in circulation for the purposes
of trade.

I propose that the London bankers, in addition to the
facility of obtaining bank-notes at all times at a moderate
rate at discount, shall have the privilege of paying into the
Bank of Issue all their due bills and cheques upon bankers,
to the credit of their several accounts.

I co LW; that the prorinctal banks should be allowed to
issue 31. and 41. notes in order to economise gold and moist
the small traders and ethers.

Propose ToslMLionVirestrietions upon banking, with
the exception of prohibiting issues within sixty-five miles of
London.

Bach are the mopeds made by the " Banker," who shows
some little of the spirit of his profession in the following
concluding paragraph :
At the cominaneernent of the Bank Charter, 1844, the

Bank of Englend reduced their rate of discount 'from 4 per
cent. per annum to 2; per cent. per annum, and were yet
unable to employ their private deposits amounting to sight
millions; thereby not only losing their profit as private
bankers, but causing all other bankers to rectifies their fair
profits of banking. The Bank of England will be the
greatest gainer by the new system.

INDUSTRY AND COMMERCE OF THE PRIN-