The Express.
London, England, 1861-02-07 00:00:00

RANK OF ALYCLAND.-(THIS DAY.)

,veers! court of proprietors was held at noon
•t: Bank. 111. BOOMS! Dingus, governor. in the
tiv cussileratiee 'puha affairs" The uttentLan,e
Jule.
in,. mulatto of the policies' tweeting hav in.; been con.
the said be had to acquaint the court thit it
, .11.4 to receive sad cun.i.ler a letter from the 'hon.
•4 the Etettegner Ware...ea to the governor viol
e.4,..vernur 4 the Bank of England, contaluiog p....
• •4. foe the revision of the allowance made to the bank
r the Act 44 two. 3, esp. 4, for the management of the
.• .k.,1110/1.

tAry (Mr. Srrwunithen read the letter ref‘rr.4
• . who ► ay.u. a. follows :

..Dewnhog-street, Jan. .11, 1.11.
- Her Midesty's government having bad
.isler their consideration the following report id sir Ales.
spennums, Itr. -labialised, end Hs. Anderson. dated
N,n.laher. M®o, en the =pears incurred by the
Englind in c..oducting certain duties on behalf
f the paddle in eouneteet with the issue of *Am,
t rate id the public biaLuices, tied the mimigensest of
eetiosil debt, government considers that this report
•:•041.161 .übtuittol to turliatuent, rad it is to be desired
I .at. to prielamtog it, they should be prepared et nom to
and to rt opens the view which they take of its
i•ouots.

" I anvmlimey proceed to lay that view Wan yoa, ful•
I ~in. heron 'vex...lent furnished by the conduct of my
peetiree•na, in °lke at former periods awl the course most
vveable to the intimate relation' which have ever i•revailvil
between the government and the hank, and to the character
at the ',eighty italics performed by the tusk on behalf .4
the elate.

" I cousin-ere he &tweeting to the two former of the
three import-Ant eubject• opened is tile ►epart -namely.
the exposer. awl profit. county-tea wit► lite items of notes,
.tel with tip ..u.t•••ly wk.. 4 the public balances.
•• urttlier d th...e subject• .10 hot Ittjesty's govore•
• knit Ilecna it tlictr duty to .Üblali rmy pßopAlid to patio-
:lrma.

"lite profits connected with issue they do not regard es
upset the whole r.t hie .0 b j.•rt for legislation, otherwi•
then comeoction with keit. iteelf. They were su treetel
v. RH, end they were left upoa a footiog with respect to
...air renewal id the quaitioo, which her Majesty's govern-
eee so reaaoa to disturb.

" Its like wanner with repnl to the advantages ron•
c. I with the trie of the Lahore& mil point wee fully
.:•hheel in the cor►espondence of Is4l, hetweeu thu
.overnwient and the hunk.

" Mr. Goullsuna stated the views of the advisers of the
ersiwa, sad reserved the discretion of the state as to a par-
ticipation is the profits of the public deposits, should
they, from any circumstances, undergo material lacrosse
or roach an extraordinary amount ; while the beak
TINWTVWI its freedom to coosider what its own rights
might be in the event of their reduction. The subject
was, we think, judicioualy !walled on both sides ; the care
contetripLited by Mr. tioulburn has not arisen, and we pro-
pene to leave it in this point also, so it was left by the cor-
temondeoce presented to parliament in 1641.
" I have, however, to subjoin to what I have now stated,
a qualification of limited extent. The committee of the
House of Commons on public monies, which reported in
mod iiiii ended the abolition of deficiency bills, soil the
.institution, in noses°, deficiency, of adv.,tices in a different
sail simpler form, together with a change in the taxis on
which such iletieieney was to be calculataL
It I* the intentioo of her Majesty's government to pro-
mise, in the coining session, legislation in general conformity
sill, the tenor of them recolunientLitioua ; but I have men-
tione.l the sulijtst in this Igace rather with a view to strict
aecuriey, than humane it ts of any great moment in the
.elptstment of the pecuniary relations between the govern-
west oral the bank.

•• With respect to the thinl and remaining subject, the
management of the national debt, the government conceive
that the time has come when they may Justly call upon par.
lumeut to recousider the rates of charge fixed by the acted
1*4)4. and mill anhatantially in force, although as matter of
reduced by the payments which the bunk mks"
th the thae ao the extent of 1fitt,07,4/. per annum in respect
of conIIXPILLI.4I for stamp duties and of profit on the MOO of
note..

"The act of latet assigned to the bank, ea a remuneration
for it. cla.r..es and its responsibilities in the manamment
.4 the lictional debt., an annual sum of 340/. per million
up to the Inuit of 600 millions, and an annual sum of 3001.
per million beyond that limit, with a proviso for •
rate of payment of 4301. per million, in cam the
debt .boald at aoy time stand at lees than 400 millions. It
is A.. provided that terminable annuities shall be reckoned
at 25 veer: purchase.
" Referring to the several emamenications which I hare
hal the honour of bolding with you, I shall waive all
argument op.'s this, subject and shall simply proceed to
state the particular. of the changes which the government
think mar riawrisably and advantageously be introduced
into the sulaisting arrangements.
" I. We pupae to ask parliament to enact that • new
plan shall take effect from the commencement of the
sett financial year, and shall remain iu force for twenty-
tee years certain.
"2. The method of setoff by which the bank gives
unlit on account of peyote of issue and of stamp
duty compusiuoo to the state, and deducts the
aniouat al credited hems its charge for the
debt, was in conformity villa the system under
which the public revenge was manapal and accounted for at
the date if the subsisting meriatementa. But in 1554 an act
was rafted which provided far tie payment into the sreehe-
(pier of the growl revenue of the state. Agreeably to the
spirit of that act, her illaresky's government are of_ *mks
that the sum of 1144,07 W. Mewed by the bank sbeaW no
loader stand as a deduction hem file charge against the public,
hut that the sum of sixty thonsandpeemdc beingthe comp°.
sites for stamp cluties,shostlel be paid to the Derailment of
Inland Revenue. and the sum of 121,078/., Wag the allow-
ance out of i.rutit.. of issue, amid be paid to the &che-
wier a, lad .4 the miscellaneous revenues of the country.
The charge for the management of the debt would then
stand se • separate and distinct charge, and would be de-
frayed under ea act fur the purpose out of the Consolidated
Fond

" I. It Deems evident that the valuation of terminable
annuities is, by much, too high. A public annuity. granted
for 00 yearn would be worth something more than 2.5 years'
purchase at its iaceptiou • _ but its value would descend in a
...sidling eyries to zero, and the mean ease of it would pro-
-I.l4=tweess twelve and them years. Annuities granted
for terms would rep resest subjects for oceunerrial
shaliag of proportionably narrower scope. And the compara-
tvely limited nature of the market for these annuities
yould stake it probable that the, would be managed at an
inferior cost in MALIAN) to than salsa. Ueda these dr-
rrnmstatices, it is the opinion of her Majesty's government
that all terminable amenities henceforward granted by per.
Lamest shouW, fur the purposes of bank management, be
valued as f0i1...,
•• • If originally granted for mom than 50 years. at 15
year. purchasie.
" • If. for assi lesser term, at 10 years purchase.'
"4. Mame 1 mess to We rate of allowance to be made
to the tout for the masagemest of the debt I have to pro-
Pse • somewhat different adjustment of the present
Pulaski«, plan, with a view to giving greater fixity to the
arrsegement. isow contemplated during the time for which
th-y are to hat.

The hank am receives the rester 'mart of it. remmiere•
boa, Namely, that oe ?lollies. of debt, at MO/. per
aolioa ; and only 1,16 millions at the lower rate of :col.
per Now the outlay of the beak is coemexion with
thui branch of its business deal Sot appear to vary gristly
with the mime variations is the amount of die debt,
whether opwanla or lit 11111,110111. Far the bulk of the
deht,it must keep its premises and the balk of the ettabliels•

•;it'e therefore pewee.. tad we rwtedwatly aaticipate
the re bIoe,ITTPIDCO of the beak is ag. that tbe peat
hulk .4 the remunerate:le also ibusid be elated at the drat
OP) emllion..4 the debt Luc. more !rectiadly, that the
Fora per mello,a, sot exemedarstg inetead of MA
helef but altghtly greater rhea the rate above it,
be .loohle that rate.

the of .4;;; chimps that might be adopted
lv I...rhament in the form of the public debt would her
•••uirsiratively of small imoortasice to the bank as a tradaz
es diliament.
With respect to the nit* of remuneration—we pro-
Ps- to iatoirluee a bill into Parliament whidi dial' fix
lr Nei tinily gm the rate of remuneratioe, the sum of .100/.
the first MO minim* of the debt, sad of no/. for the
-eau teysied 600 million. The payment of 4,00ne. per
termed House-money. sad the payment of 1,5, to.
" s..atal .4 South Sea Debt to eerie and determine.
• The effort of this prop ml will be to place the annual
reniiinerntsei to the bank as the peewit amount, in rowel
a .90.-t% at about 2100,0001. • yew. The dormant prortsion
of the present law nailer which tbe beak would be entitled
s lei...tit of OP. per million. if the deli' under their
man i ;eniest were reduced below 400 millings. is one which
her Yale.ti . government see so remote to dieturb.
" To 4 Peusesl of this nature, her !Nesty's government
are in h..pes that parliament would be induced to give the
soislioe of its authoetty ; and on the other haat, they trust
that the alsthorito.l of the bank will deem it one affording
to. them the lust and adequate remuneration for the im-
gents...* which they have performed, we believe to
,Idiro satisfaction of the Italic, under such regulation
as o
la e 0 iw in force reLrdinff them.
conclusion, es to add that it will be eminently
"of tgtory to her lialesty's government. and will also be
n.' ealde to the spirit which the Bank of England ad-
Jug.. ute,U to the demised' of commerce and of mom-
team. (ions, if you ahould be able to assure me
et the intention or the bank to afford increased
facilities to, hogitaga, each as would be 'applied by •
metenal contractioo of the periods of abutting. if they ean-
l'at lea depemed with altogether ; and also with respect to