The Sun.
London, England, 1853-02-09 00:00:00

BANKING INSTITUTE.

The usual monthly meeting of the members of this
institute was held last evening, at 42, Threadneedle-street.
Mr. Luard, general manager of the London and County
Bank, in the chair.
In opening the proceedings the CHAIRMAN said he was
quite aware that, in occupying the distinguished position
he then did, for the first time, the tribute of respect was
not to himself, but to the establishment to which he bad
the honour to belong. Every member of it fully appre-
ciated the advantages that were certain to follow from
the establishing of a banking institute, and it was im-
possible for success not to attend these meetings, con-
ducted as they were by practical men, and for practical
purposes. (Hear, hear.) For himself he hailed them
all as friends, concerned in the same honourable pursuit ;
and with these remarks he would take the liberty of in.
troducing to the meeting Mr. William John Lawson.
Mr. LAWSON then rose and proceeded to read a paper
on bank charters. Having referred to several ancient
charters, amongst others to that by virtue of which the
corporation of London exists, the essayist proceeded to
state that the Bank of England was established conjointly
by royal charter and act of Parliament ; whereas the
Bank of Scotland was established solely by an act of ilia
Scottish Parliament, and the Bank of Ireland by an act
of the Irish Parliament. In 1707 a bank had been in-
corporated by royal charter, for lending money on de-
posits of actual property, in Si. shares. But such was
the state of confusion into which mismanagement had
thrown its affairs, that in 1730 an application was made
to the Legislature to lend its assistance; which was met
with a refusal, on the ground that, being incorporated 1-7
royal charter, the prerogative of the Legislature did not
extend to it. The Legislature, however, assented to a
lottery—a method not unfrequently resorted to at that
period ; and the result was, that not only were all diffi-
culties overcome at the time, but the company still con-
tinued to exist. Royal charters for banks were very
rarely granted ; and until very lately they had only five
banks existing by virtue of them—namely, one in Eng-
land, and four in Scotland ; whilst in Ireland there was
not one at all. The charter of the Bank of England
made no mention whatever of limiting the liability of
stockholders ; but the act of Parliament did refer to
such limitation. In 1727 the Equitable Society of Scot-
land, for disposing of an annuity of 10,0001., voted by
the E3glish Parliament as a sort of equivalent at the
passing of the Union of Scotland with England, sought
for and obtained a further charter of incorporation, for
carrying on banking in Scotland, with a capital of %
230,0001. In January, 1850, the accountant-general of
the Bank of England had a conversation with him (the
essayist), in the course of which he observed that 10,0001.
were annually forwarded from the Bank of England to
the Royal Bank of Scotland, and had been so forwarded
for more than 60 years, though for what, he (the ac-
countant-general) could not explain. He (the essayist)
was greatly surprised to find a gentleman filling such A
position ignorant of the cause of this annual forwarding
of 10,0001. to Scotland, and accordingly proceeded to
explain to him the origin of the stock of the Bank of
Scotland, which altogether amounted to 1,300,0001. On
the 15th March following, when the Chancellor of the
Exchequer (Sir Charles Wood) brought forward his bud-
get, he announced his intention of paying off the Scotch
equivalent fund out of the surplus for which purpose he
said he would take a vote. Such was the ignorance of
the house on the subject, that even Sir James Graham
rose and questioned the Chancellor of the Exchequer as
to who the parties were that received that annuity of
10,0001. (Laughter.) So that they might well pard)n
the ignorance of the accountant-general of the Bank of
England on the subject, seeing that Sir James Graham
knew as little about it. However, the debt was paid, the
annuity for ever extinguished, and so far he (the essayist)
"had done the state some service. Why it had been over-
looked so long, and by so many
by Mr. Pitt, it was difficult to conj
in 1746 to the
having referred to the charter granted
staeetteusrmer,
The
ertieceEualayrilsyt
British Linen Company, in Scotland, as also
and thtoe theobar
to state that of the National Bank of Scotland
Commer-
cial Bank of Scotland, proceeded atfor the
banks Scotland, was
the failure of joint-stock in
25 000/
esti-
mated at , • Scotland was deservedly proud of
last 150 years the gross amount of loss to the public, b y
her banking system ; and whilst the aristocracy of Eng-
'anti considered it beneath them to identify themselves
with
the management or conduct of banks, the Scotch
nobility, on the contrary, took a deep interest in and
were personally connected with the banking institutions
of their country. The essayist concluded his interesting
paper, with a brief reference to the new banks in Aus-
tralia, which he hoped would be conducted on the prin-
ciple of unlimited responsibility of the shareholders.
A brief conversation followed, in the course of which
Mr. GILBART called attention to the great mischit that
had been inflicted by the American banks, all of Wich,
until lately, were charter banks, conducted on the prin-
cidle of limited liability. In India, Scotland, and Ire-
land, charter banks had been conducted most success-
fully ; and, looking to the histoty of those banks, he
should say that, were he called on for an opinion as to
whether they should or should not have charter banks,
he would find it difficult to decide. However, if Govern-
ment would only treat joint-stock banking companies as
individuals were treated, he should say that then it would
be better that such companies were without a charter.
(Hear, hear.)
The CHAIRMAN had no hesitation in saying that, in
his experience, he always found joint-stock banks work
better without a charter than with one.
Mr. LOWELL and Mr. LIDDELL briefly followed ; and
the proceedings terminated with votes of thanks to the
essayist and chairman.

THE LONDON ORPHAN ASTLEM.—The anniversary
festival of the London Orphan Asylum was held last
evening at the London Tavern. The Earl of Harrowby
presided •, and amongst those present were Mr. Sheriff
Carter, Mr. Alderman Thompson, Mr. Hankey, Mr.
Alderman Salomons, &c. The report of the committes
for the past year stated that since the general meeting of
1852, 71 children, having completed their term, have
left the asylum ; 8 have died (one boy while under the
care of his friends) ; and 67 have been admitted. At
the present time the entire number under the protection
of the institution is 408, making the total number
benefited by the charity 2,039. The usual loyal toasts
having been given, the chairman gave the toast of the
evening, " Prosperity to the London Orphan Asylum." He
dwelt with great feeling upon the casualties to which all
engaged in commercial pursuits were exposed, and upon
the peculiar propriety, therefore, wietililawriltiyichoftthheeciwt
education London supported an institution like the present, whose
vfreotmhetinheanchedeeurclae
object was to snatch the children of those who had met
to the situation of life in which they were
hwo•iuthsern,
subscriptions and donations born. The
announced
aisnrtour;
in the course of
the evening amounted to about 1 8001
somewhat suitable
to
, amongst which
were donations from the Grocers'' *
Goldsmiths' Company, 100 Company of 1001. ; i
guineas ; the Clothrnakers! _ '
Company, 20/. ;and the Duke
of Wellington 301. VII ---
' • ' .1.
asylum has been enlarged,
so that it now afford* twonti '--4
modatiou to 400 children. 1 . ..