The British Press; or, Morning Literary Advertiser.
London, England, 1826-03-16 00:00:00

ELECTION INTELLIGENCE.

Lewis William Huck, Esq. High Sheriff of Devoe
offers himself as a candidate for the reirresentation of the city of Exeter.
The lion. E. G. Stanley, we understand, intends to
offer himself to the notice of the electors at Preston, II
the next general election.—Preston Puprr.
A fourth candidate, in the person of Charles Ogilvy
Esq. has tendered his services to the electors of East
ltrt-
ford ; the other three candidates are, Sir It. Dundao,
W. E. iVrightson, Esq., and Sir H. W. Wilson.
On Monday last, Colonel Torrena arrived at Ipswich
from London, to offer himself as a candidate for the next
general election. The freemen, and an immense number
of other persons, were assembled at the Shire-hall. The
Colonel stated his pretensions in a very able address, which
was well received. The liberal policy of Ministers he
praised ; and declared that the conduct of Mr. Peel and
Mr. Canning deserved the approbation of every man, and
that Mr. Canning had unchained this country from the
chariot wheels of the Holy Alliance.—Bury and Noruirh
Past, March 13.

ON BANKING ESTABLISHMENTS.
TO TILE EDITOR OF TUE BRITISH PRESS.

St it,—National banks, having their capital in specie, and
carrying discounts only to the extent of their capital, can
never be profitable in such a country as this, where the inte-
rest of money is moderate ; because, after the regular ex-
penses and the occasional losses are met, a less return dna
the current interest of the country will be obtainable on
the capital employed. Individuals engaged in banking ts
a trade look for a larger return than common interest, and
partici investing in joint-stock banking concerns expect
common interest at least.

2. Specie banks, retaining the precious metals in their
coffers, and issuing notes as their representatives, will be
alike unprofitable, because the only advantage gained ii
general convenience, and some reduction of expense.
3. Specie banks, having agency or such like business, or
being banks of deposit, will be profitable, provided the
gain on the agencies, &c., or the interest on the dis.
posable portion of the deposits, cover the expenses and
losses. Then the current interest will be obtained on the
capitals of the banks.

4. Banks without real capital, and established upon the
responsibility only of the proprietors, must necessarily issue
notes, and will, if the issue be to the extent of the respon-
sible capital, obtain a small interest ; but which interest, as
it is not for money advanced, may be a sufficient equiva-
lent for the responsibility. To obtain the current interest,
an issue of bank engagements beyond the nominal capital
is necessary, to such an extent that the profits of the surplus
issue may cover the expenses and losses.
.5. If such banks have deposits or agencies, the profits
will be in proportion increased.
6. Banks combining the issue of notes upon credit with
the employment of specie capitals, must put forth the
former to an extent to meet all losses and expenses, and if
they enjoy deposit and other advantageous banking busi-
nese, either common interest or more will be obtained.
Thus, of these three species of banks, the specie, the
deposit, and he cash and credit combined, the first class
are never likely to be established in this country, not
even as deposit or agency establishments. They would
certainly be the most secure of all banks; but as it is
ire vain to expect that the currency of Great Britain
can be wholly metallic, or formed of a paper representative
of specie actually held by the banks issuing the paper,
we •, ust be content to have part of our currency in paper
not thus substantial, and not immediately convertible into
specie. If the country require therefore a currency larger
than the national coin and the traders' engagements to-
gether will supply, and the Government think it wise not
to fill the vacuum with Government notes, we must have
our banking establishments framed upon such principles
that a secure arid sufficient circulating medium shall be
furnished upon their responsibility.
The second class would be insecure both to the public
and the proprietary, unless protected and restrained by
sufficient guards, -such as the publicity of their affairs,
restrictions in respect to the extent of their issues, the pro-
hibition of small notes, so as to keep a certain portion of
specie in the country, Ike. 'file nation itself might also be
endangered by unrestrainedissues of paper money in dines
of public commotion, and might be seriously hampered is
its foreign proceedings when events made it necessary that
a supply of bUllion should he obtained.
The third class appears to me to he decidedly the most
valuable and desirable, as they affbrd an active, vivifying,
and secure circulation, provided they be under such re-
strictiona as are wholesome—restrictions which will keep
their real or metallic capital entire and employed.
But whilst, on the one hand, the public good ri quires that
all descriptions of banks issuing paper money be subject to
certain restrictions, so, on the other hand, their operations
ought to be facilitated by certain protections. The public
may, indeed, afford real protection by reposing confidence,
nevertheless it is questionable whether legislative protec-
tion would not be more beneficial to all parties.
Banks operating entirely upon credit cannot pay at all in
specie if they be prohibited to issue small notes, and if not
prohibited, they can only refund to the extent of the specie
displaced by their notes. Neither can the banks of the mixed
kind (the purely specie banks being out of the question) rash
the whole of their notes upon dein:slid, or even refund the
whole of their deposits at a moment's notice, seeing that
the larger portion of the latter has been exchanged far
mercantile hills, not at the instant available.
When the circumstances of banks are publicly known,
as are those of the Bank of France, there is little danger
ef extraordinary calls upon any one for cash payment,
so long as its solvency is apparent; but whilst the cir-
cumstances of hanks are kept secret, there is a necessity
that they keep larger amounts of specie than is desirable
for their own advantage or the public convenience. Let.
there be always kept in circulation such an amount of
specie as is thought desirable for the public utility, which
can always be effected by the prohibition of notes under
certain value, and then the holders of the notes Might
safely, I apprehend, he expected and required to glee a
short notice of demand for specie; and this would be just,
as merchants' and traders' obligations, and not specie, are
taken by the banks in exchange for their notes. Over-
issue, by sach a mode, would be effectually prevented, so
far as the metallic currency would be concerned, or per-
haps in every respect ; as in the event of an extra demand,
for specie for exportation, a reduction in discounts would
be necessary to prevent a continuance of the run, and
reinstate hank paper at its full value. I. V.
March 11, 1626.

Veaterday the ees latches for Bengal and China, by rho
ship Lady Melville, Capt. Richard Cliffiwd, were closed at
the East India House, and delivered to the purser of that
ship.