The British Press; or, Morning Literary Advertiser.
London, England, 1807-09-11 00:00:00


at capital, together with the ravingr wbieb haws ,
beert added to it.
Secondly. The sum received from persons keep-
" ing cash at the Bank. This sum consists of the
balances on the deposit accounts both of Govern-
ment and of individuals. In 17)7, this fund, in-
cluding all the balances of iiidividuals, was only
5,130,1401. The present Government balances
alone have been already stated at between eleven
and twelve millions. including beak notes deposited
i s the Exchequer.
Thirdly. The sum received in return for notes
ptst into circulation. A corresponding value for
every note must originally have been giien, and the
value t'• us given for notes constitutes one part of
the general fund to he lent at interest. A note
holder, indeed, does not ditFer essentially from
person to whom a balance is due. Both are credi-
tors of the Rank, the one holding a note, which is
the evidence cf the debt due es him, the other hay.
ing the evidence of an entry sr, the ledger of the
Bank. The sum at all times running at interest
will be in exad propnrion to the amount of these
three find, combined. dedudion being made for use
value of cash and bullion.
Under the three heads above mentioned, first. of
capital and savings ; steamily, balances of deposit
accounts ; and thirdly, notes in circulation ; all the
sums are stated which the Bank wool,' have to dis-
charge in the event of the winding up of their at-
faits ; and they must of course have assets sulificient
and available for this purpose, which assets- can
only censist of cash and bullion, and securities for
money lent. ftT
In whatever degree therefore any one of the three
first-mentioned items, namely, capital, deposits,
or notes, increase, the ether two remaining fisted,
in the same degree must the sum running at interest
inctease, provided the cash and Indliim do so
vary ; and this adaptation of the sum at interest to
the amount of the balences, may be presumed to
take place without any pesticide: cognizance of
the sulljen by the Diredors, who make a profitable
use of the balances, by consenting so far to satisfy
the current demands for riNcounr, or by making
• such loans to Government, or buying such number
of Exch.ceter Bills, or other securities, as may
toffee to maintain in circulation the accustomed
quantity of times*.
Jr is impossible 'beret; tee to edvsit, that the Bank
have nn means of placing not at interest the whole
of the Itrge sums which con3titnte the Government
balances. Th - e balances are lent at interest. et-
. Cause a demand for loans to this relent cannot fail
to arise out of the natural demand for the amiss
Corned quantity of notes Tne Bank have no. pro-
perry of any moment lying dead, cash and bullion
excepted; they possess indeed property in buildings,
but these are stated in the evidence to have sees
paid for as they were erefted, t3i,t of their current
profits,, and constitute no attic; • is. their accounts.
Unless, therefote, they have a sum at interest appli.
table, together with the cash ansi billion, to the
porpese of at:steering the demands of those who have
deposits in tit it hands, they have not assets neees•
set! to satisfy the three classes of claimants which
bare been mentioned.
Your Committee cannot allow the validity of an
argument which is to be found in the evidence.
against the profit derived from the bale:lc-a. that
tile Bank do not wish to enlarge the se I • af
Isusir.ess, and that is is their custom to suppress,
reales than encourage, the demand for their note;
unr can it be admitted as a gems al proposition, that
their noes form the criterion or their p:A:s tikes
these :ialance. are placed in their hands without
interest, an I are then lent out ..t int•• rest, they must
uncw-stimahly be considered as enlarging the scale,
not merely of their business, but of their misfits.
That the amount of notes is one criterion, and is a
inset important +OW ce of their p•ofits, is undoubted-
" ly true. hut it is evally tit..that the amount of
balances is another ; and although the careful limit.
*lion of the circulating paper is en ad of prudence,
the balances cannot be considered as affeded by
stseh limitation 1 Ant can it be inferred, from the
propriety of limiting the paper. that there exists any
similar oceaston.lor mirk:ling the mber branches ot
the bo.initas cf the. atik.
The pi reluctAve (panty of the floating baleneea Y amilirmed
by a statement ptebent.l by the Soft Herb ea the newel
Comanh,ee,f the Hou-o of 1.0,4. Hi In/. (Pete 132). Erna
Is,. se appear*, tkat the Seek Paters trete, on the 13th
Pee. 1W L. b. 440,2.50
Ani the " INi g Accounts" (or De?oeit Ac-
e .uoh) 5,14 •• A6sltt Roll" (or Ustelameed
soLses, as )
A-14 ,4 5u•p4,..." (or Pr..it of the
Ito 5,) slush leased Use n.sture of a'lou.o,al
Cepaal

Making t,getlier

5.141.150

• 8.914,90

1. 17,:),7,260

This debit side of the account exhibited the total
warn due both to the Bark Proprietors and others on
the 35th February, 1797, with the exception 01
I !.656,8001. capital lent. to Government, which was
adverted to only at the foot of the statement. The
credit side of the acc,:unt erurnrrated the affe3s
(amounting to the san:e sum oi 17,:Q7,2401.) ap•
plicable to the pa)ment of that debt.
These assets were stated to consist of " advances
on Government securitie,," viz. on " Lind and
malt," nn •• Exchequer Bills, kr." "'bills dis-
counted, kc." and •• cash and bullion." Suppos-
ing tit, rehiie the arsii,uut of surplns capital and bank
it. tes on the debit side, and the cash And bullion on
th, et..,;it side, to cominue stationary, the amount
of ther articles on the credit side (all of them
article producing intere,t), must necebsatily fluc-
tuate in etaa correspondence with evvry fluftaation
of the ; and in eatt another statement,
forried in the ‘37,1C canter as din presented in
17.)7, were ti-As to be made our, the sum of
8.640.:.!,01. of notes having beets augmented to
16,6-21,3!) ,l. and the sum M 5,130,0001. of deposits
havitg risen probably to about 13 or 14 millions,
there wt•uld unquestionably be as increase of about
16 or I 7 miiiions running at interest to be stated on
the other side, dedvaing whatever may have been
added to the cash and bullion since February 1797.
The annual and temporary bonus of live per cent.
which the Bark have for some snecessive years added
to their accustomed dividends of seven per cent. and
the recent augmentation of 'their regular dividends
ve of Property lax ; the rise
of tbcir stock, which hay-
to 1721. per cent now
rr circumstarces in ccntirma-
/se of thin. ptotits. 'I cats
muted tot by any material aug-

~f~~.T

a. .a OUglib•gltAt.‘,ll
to ten per tent exclmin
atm of the market price
iugg sold in t 800 from
setts 2101. are stron
ties of the lair Mere
Chita cannot be ectoeo