The Express.
London, England, 1861-09-16 00:00:00

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LONDON, MOND AY, SEPT. 16.

TO OUR READER&
SPORTING INTELLIGENCE.

A !ate edition of the Exprrsa it published every
avanivg (luring the racing season, containing the
results of the day's races.

THERE is a growing impression that before long
• change still be made in ono of the regulations of
the Bank of England of much interest to the tuer-1
cantile community. It is understood that a con-
siderable number of the Directors are in favour of
abolishing the old plan by which the rate of die-
count is fixed at the weekly Court on Thursday.
It is proposed that the rate shall vary from day to
day, asetho supply and demand vary•. The present
practice is evidently a remnant of an antiquated
system, and quite out of date. Time was, when
the Bank of England directed the monetary move-
ments of the country, or at least of the metropolis.
But what have we witnessed during the last few
years' A vast extension of banking business, of
the banking area, and of banking competition
the uprising, fur example, of the metropolitan
joint stuck banks, which now hold at their com-
mand a masa of money of which our forefathers
could have no conception. Measure the financial
power of these institutions in the aggregate with
that of the Eank of England. By the
returns last publiahed, the Bank of England bolds
12,357,680!. of private deposits and current
balances, or, if the Government balance be in-
cluded, a total of 17,225,6891. ; whereas, by the
returns last issued, the London joint stock banks
hold 47,315,358 h, being thrice that amount. Of
this huge sum, the London and Westminster Bank
alone has 14,821,6511., being 2,463,9711. snore
than the private deposits in the Bank of England.
The comparison is interesting, as denoting the
position to which these competitors have attained
as dispensers and distributors of money. It must
be remembered that the joint stock banks, like
the Bank of England, are always turning their money
over, as the phrase is ; they are always lending or
discounting, and the loans and bills are always run.
mug oil', opening the way to fresh business. Then,
again, as a natural consequence of the extension of
trade during the last few years, the discount esta-
blishments, properly so termed, have greatly in-
creased their business and resources, though of
the actual extent of the increase no state-
ment can be furnished, inasmuch as these houses,
consisting (with one or two exceptions) of private
partnerships, aro not obliged, like the joint stock
banks, to publish periodical returns of their capital,
deposits, securities, tkc. But every one may see at a
glance that, inconsequence of thegrowthof this vast
money power, the competition to which the Bank of
England is now exposed implies almost a financial
revolution. To keep its position and its discount
connexion, and to deal fairly with such of its own
customers as are not in the habit of carrying their
bills elsewhere, it behoves the Bank of England to
descend from its stilts, and adapt its regulations
to ordimuy financial practice and to the wants of
the day. Perhaps, to some minds, there has been
something grand and impressive in two dozen of
our first merchants meeting once a week in
solemn conclave in the Bank Parlour, conducting
their deliberations with closed doors, and then
notifying that the minimum rate of dis-
count is fixed at such and such •
figure until next week, when they will
assemble again to reconsider it. As every one
knows, this has been the sedate practice of the
Bank from times so remote that we care not to
grope back to them. But of late years events have
moved faster than the Bank's rules. In 1857, the
movements in finance were so violent, and the ex-
pectant attitude taken up by other bankers threw
such a vast and sudden pressure on the Bank, that
that establishment, fairly overtaken, was fain for
its own protection to take action in regard to its
rate of discount iriefloret waiting for the regular
weekly court of directors. The infringemeut of
the old system has been repeated on several ea-
elisions since, but only in the case of • rise
in the rate becoming necessary. There is no
instance on record of the minimum being lowered
on any day but Thursday. In other words, if the
Bank gets frightened, is pressed upon, or sees a
good chance of obtaining an increased profit, it
will act on • Monday, if need be, as has been the
case even during the present year ; but if it is
merely • question of letting its customera have the
benefit of a reduction in the value of money pro-
portionate to that in the general market, that
is quite another thing, and the Bank will take
time to think about it. We have no wish to be
irreverent, but that is what the present plan
comes to. We think the Bank directors will
best clnaillt their own dignity by surrendering
the prerogative involved in this practice.
The result of their weekly deliberations
has no longer the importance that once
attached to it. The general market, which
has grown in power, whilst the Bank has
remained &tweet stationary, is always above
the Bank's charge in tight times, and below
it in easy times ; that is to say, it is always com-
peting eagerly with the Bank, raising or lowering
its terms from day to day, and even from hour to
so that if the Bank raises or reduces its
charge it probably only moves to an equality with
the i.peti market. In face of inch keen competi-
tion the Bank will be distanced, if it continues to
tethers to the ancient rule of fixing its price only
once • week.

As regards the future supply of cotton, there is
no new light or encouragement. The pinch has
not arrived yet. The stock of cotton at Liver-
pool is computed at 867,390 bales, against
941,350 at the same date last year, so that the
difference is not great at first sight. The real and
serious difference is, that last year the new cotton
shipping season had just commenced, without let
or hindrance, whereas now we are to have no sup-