The Sun.
London, England, 1837-11-20 00:00:00

made :

On this return the further remarks following arc to be

1. That the average circulation of the three months
ending the 14th inst., being 18,341,0001., while the ave-
rage circulation of the whole year is 18,350,7501., the dif-
ference between the average of the last three months and
the average of the year is only 6,750/.
2. That the average of the deposits for the three months
ending the 14th inst., being 10,242,0001., while the average
of the whole year is 11,232,2501., the difference between
the two averages is 990,2501.
3. That there being a decrease of 1,893,0001., in the
liabilities in the month, ending the 14th inst., as compared
with the month ending the 22d of August, while upon the
same compare there is an increase of 1,728,0001. in the
stock of bullion, it is manifest that the intervening period
the Bank of England must have cancelled paper money to
the amount of 3,611,0001., and this by means of a diminu-
tion of its securities to the same extent.
4. That there being a decrease of 2,604,0001. in the lia-
bilities in the month ending the 14th inst., as compared
with the month ending the 13th December, 1836, while
upon the same compare there is an increase of 4,050,0001.
in the stock of bullion, it is visible that in the intervening
period the Bank of England must have cancelled paper
money to the amount of 7,154,0001., and this by means of
a diminution of its securities to the same extent. And,
therefore, the difference between the two periods is this—
that instead of 7,154,000/. of paper money which in De-
cember,lB36, rested upon securities, there is now 4,050,0001.,
of money founded upon bullion.
And here it is to be noted, that at no period since the
31st of December, 1833, have the securities of the Bank
been at so low a point as at present. By the return of that
date the securities amounted to 23,576,0001., and the stock
of bullion to 9,948,000/., whereas the amount of securities
by the last return is 23,985,000/., but the stock of bullion
is only 7,432,0001. At the period of the renewal of the
charter in August, 1833, the amount of securities held by
the Bank was 23,592,0001., and the stock of bullion was
11,005,000/.
With respect to the entire paper currency of England
and Wales, this is what may be said on the subject :
By the last return in the Gazette of the 3d inst.,
it appears that the average of the country cir-
culation for the three months ending the 30th
of September, 1837, was
And the average amount of the circulation and
deposits of the Bank of England for the three
months ending the 19th of September, was

29,907,000

£40,049,049

And, therefore, the total amount of paper money in Eng-
land and Wales for the three months ending in September of
the present year was 40,049,049/.
On the other hand, the average of the country
circulation for the three months ending the
24th September, 1836, was
And the average amount of the circulation and
deposits of the Bank of England for the three
months ending the 20th September, 1836, was 32,265,000

£43,998,945
And, therefore, in the period between September, 1836,
and the same month in 1837, the total diminution in the
quantity of paper money in England and Wales is
3,949,8961., and of which diminution an amount of
2,350,0001. is in the paper money of the Bank of Eng-
-land, and the remaining 1,591,8961. in the paper money of
the private banks and joint-stock banks.
And note here, that at no period during the last four
years has the country circulation been so low as at present.
(From the Morning Herald.)
It will appear by the subjoined analysis of the bank re-
turns, that that mismanaged corporation has emerged from
the greatest difficulties they ever experienced, or with
which they ever were surrounded since the panic of 1825-6.
To us, as the sincere and ardent supporters of the vast and
various industrial interests, which have tended so materially
to the aggrandisement of the British empire, this is a sub-
ject of true gratulation. But with respect to the panic of
the last year, and that of the year 1825-6, there is, as
regards the position of the Bank of England, a most es-
sential difference. In 1825-6, the difficulties of the Bank
of England were brought on by the influence of our new
Currency 1361, for which the country was not then prepared,
rather than by any system of overtrading. In 1836-7,
the difficulties of the bank originated in the attempt to
force a circulation, which the Corporation had not the
power to sustain, for the sake of profit, and from which
they have only been able to back out with loss to them-
selves, and by hazarding the welfare of our vast commer-
cial community. It is well for the bank that the true
commercial enterprise of this country has been based upon
capital and conducted by men of principle.
The monthly return of the quarterly average of the lia-
bilities and assets of the Bank of England has created ra-
ther more than the usual interest which that important,
though :very imperfect, statement always excites amongst
our
,monied and commercial men. By comparing this with
the like return for the quarter ending the 17th October,
we obtain the following results :—lt appears that the cor-
poration have reduced their circulation in the sum of
372,000!., and that the deposits have been reduced in the
sum of 259,000/. ; these are two most important features
in the state of the affairs of the Corporation, and certainly
indicate that they have exercised more than the usual dis-
cretion of late—than could formerly be concaed to the
bank directors. The most important portion of the return
is the fact that the securities in the hands of the Bank have
been reduced in the sum of 1,331,0001., which is satisfactory,
inasmuch as from this circumstance it may be inferred that
a large portion of the paper held by the Bank, directly
or indirectly, from the suspended American firms, and
other parties, have been run off ; to which may be added,
that the amount of bullion in their coffers has increased
in the sum of 576,000/., the present aggregate amount
returned being 7,432,000/. against 6,856,000/. in October,
an increase of 2,499,000/. on the year, and, as compared
with the return for February, the lowest ever made, the
increase amounts to 3,400,000/. The mean amount of bul-
lion held by the Bank of England during the three past
months appears to be 6,593,000/., and as the circulation
has been reduced within the month, on the aggregate of the
three months in the sum of 372,000/., it may he assumed
(for nothing more than assumption can be advanced), that
the Bank at present have in their coffers about 7,000,000/.
of bullion against 18,344,000/. of circulation—a situation
in which that Corporation have not been placed since they
commenced the last attempt at an abuse of their power in
the middle of 1836. The amount of the "rest," or sur-
plus capital of the Bank, has diminished in the sum of
24,000/., which is loss than on the last return by 122,000/.,
and on the October return by 170,0001. ; in fact, through-
out the year the " rest" has gradually decreased, but the
Bank Corporation have had their " whistle," and most de-
servedly have paid for it.
Having explained the result of the Bank returns, it may
be well to show the actual position of the Bank Corpora-
tion, as a would-be monetary body and commercial regu-
lator, in reference also to its bounden duty the Govern-
ment. The Bank, by its constitution, is bound to consider
the interests of the Treasury, with which, in fact, it is iden-
tified, as superior to that of the commercial interests ;
because they receive a certain annual consideration for
transacting the public business ; therefore, however well
they may perform their duty to the state, they look and act
upon commercial matters in a secondary point of view. This
accounts for the reckless manner in which they hare for
years managed their busine-ss ; at the one time, forcing a
circulation not required ; at another, contracting it when
most needed, an evidence also, that they conduct their bu-
siness rather with a view to save themselves, without the
slightest consideration for any given portion, or even the
whole of the commercial community who may have been
misled by their apparent operations.
In making these remarks we may safely say, that it is the
opinion of the best practical monetary men that it is to the
interest of the country at large, that the Bank of England
should conduct the Government business ; but that, as
none can well serve two masters, they have no power to
aid the mercantile interests perfectly or permanently, be-
yond being a mere bank of issue. We believe that the
Government is sensibly alive to the merits and defects of
the Bank of England as a Corporation, and that measures
arc in contemplation to repeal that portion of the Bank
Charter which compels the Bank to receive Deposits, and
which, doubtless, have often given such unpractised bankers,
of which the bank direction are usually formed, very false
notions of their power to regulate the currency : in fact,
monopoly has been the idol of the Bank parlour, and
Heaven must have helped the country which has sur-
mounted its grinding influence.
(From the Morning Pest.)
The English securities have been less favourably quoted
to-day. Consols, for the Account, were done at 93i or
per cent. below the closing price of yesterday. This change
seems to have been produced in a great measure by the re-
port that the French Government have it in contemplation
to raise a loan for 200,000,000 francs (8,000,000/. ster-
ling.) We are aware that the expenditure of the French
Government more than keeps pace with its revenue, but
for what particular service this sum of money is required,
if it be so at all, has not been satisfactorily explained. One
of the objects named is the prosecution of the war in Africa,
which, however, we thought had been brought to a success-
ful termination ; another the internal improvements now in
progress in various parts of France, or under the considera-
tion of the Executive. It seems, moreover, that rather
extensive sales of Stock have been made within the last
two days at Paris, under the impression that the Govern-
ment will once more attempt the reduction of the Five to a
Four per Cent. domestic Stock, though it is well known
that great difficulties stand in the way of such a conversion.
There was some improvement towards the close of the Mar-
ket. Consols left off at 93i to for Money and for Ac-
count, Exchequer Bills 445. to 465. prem., India Bonds at
31s. to 335. prem., Bank Stock 212 to ia and India Stock
at 2684 to 269.