The Sun.
London, England, 1840-01-02 00:00:00

STATEMENT, No. 2.
LIABILITIES.
'Pai'l Capital £500.000
Deposit
Account, current 1,500,000
Circulation
Total Libilities
ASSETS.

Loan to Government-
-1-3d Circulation...... £lOO,OOO
1-sth Deposits and
Account current ~. 700,000

800,000
Bills of Exchange
Other Loans
Specie and Bank-notes ..... • lOO,OOO
Total Assets ------ £4.300,0011

PROFIT AND LOSS ACCOUNT, No. 1.
By 3 per cent. interest on Government DR. CIL
loan £40.000 X 1 ,200
By 5 per cent. interest on
other loans
By 3 per cent. interest on cir-
culation

X 250,000
To I per cent. interest on de.
posits - ..045,000 £2.2.50
To 2 per cent. interest on ac-
counts current 75,000 1,500
To 6 per cent. interest on ca-
pital stock 50,000 3,000

£200,000
To expenses (4 per cent. on capital) 2,000
To allowance for bad debts, at the rate
of 10 per cent. on the amount of the
credit side
To reserved fund for difference

Xll,lOO £ll,lOO

PROFIT AND LOSS ACCOUNT, No. 2.

By 3 per cent. interest on Government DR. CR.'
loan £Boo,ooo £24,000
By 5 per cent. interest on
other loans ... 3,490,000 170,000
By 3 per cent. interest on cir•
culation 300,000 9,000

£4,500,000
To 3 per cent. interest on de-
posits £2,000,000 £60,000
To 2 per cent. interest on ac-
counts current 1,500,000 30,000
To 6 per cent. interest on ca-
pital itock 500,000 30,000

£4,000,000
To expenses (3 per cent. on capital)... 15,000
To allowance for bad debts, at the rate
of 10 per cent. on the amount of the
credit side
To reserved fund for balance

£203,000f 203,000

In making these statements my chief intention
is to show not only the practicability of the scheme
which I suggest, but also, in some degree, to exhibit
the general principles of banking on which ;,ite
proposed measure is founded.
In the present state of things the 13ank of Eng-
land may, with apparent justice, argue that they
are placed in the anomalous situation of being re-
sponsible for the consequences of overtrading On the
part of other banks of issue, being compelled to'find
gold in payment of their own notes, which, as re-
gards others, are declared to be a legal tender.
Unless, therefore, some alteration takes place in this
respect, one of two consequences must: necessarily
follow—either that the gold should be found to •
form an adequate circulating medium, which, is in
fact impossible,—or that a substitute should be
found for the deficiency, beeauke so longs the in-
terest of the public debt remains to Ile priiritled for,-
just so long will it be necessary that die... commerce,
manufactures, and agriculture of the country should
be maintained to such an extent,.es -svilleiiolo the
Government to realize a sufficient Antonia in tate&
and imposts to meet :he necessary public disburse-
ments. Should no remedy he provided to meet the
present or any further emergency, the Bank of Eng-
land will certainly have a strong'Claim. to an exclu-
sive monopoly of the issue of paper, end the, fatal
consequences-of such an alternative ratty be easily
foreseen.
I have been asked, why do you propoSe to make the
Bank of England the medium for making advances
of Government paper, instead of the Government
itself ? To this it may be answered, that as the
greater portion of the Bills and other securities,
which might be offered by the different country
banks of issue would most probably pass through
the hands of the respectable bill•brokers, they would
be more likely than any other class of individuals
to form a correct opinion of the value and charac-
ter of such securities ; and that the combined ex-
perience of these gentlemen and of the Directors
and other officers of the Bank of England, might
be more safely relied upon than those of any
limited number of Commissioners appointed by
Government. Besides, there is nothing to prevent
Government from appointing a Committee to exa-
mine and control the advances so made ; and the
profit arising from the issue of Exchequer bills
would at all times be more than adequate to the
payment of any charge for commission to which the
Bank could be reasonably entitled, and to indem-
nify any Board of Commissioners so appointed for
their trouble. It would also have the effect of
placing the actual state of the country more im-
mediately under the eye of the Bank Directors, and
would neutralize any pretext on their part for de-
viating from a sound administration of the impor-
tant trust confided to them.

But then another question may arise—po you
suppose the Bank of England would sanction. any
system which might lessen the amount of tbe•Bsuk
circulation ? My reply would be,. that ~no :wok
effect would be produced by the operation of the
proposed scheme, because in the .existing state of
things, the Bank cannot supply an amOunt in notes
equal to that required by the absolute neeesiiiies of
the country, excepting at the risk: of bankruptcy ;
and, besides, so soon as they held an amount. in gold
equal in value to one-third of the proposed
Ex-
chequer and of their own notes actually in
circulation bills,
in other words, so soon as the
; or,
Foreign exchanges with this country shall hate
regained a healthy state,. these Excheqiier bills, or
the greater portion of them would -be returned to
the Government in payment of the loans by the
banks of issue, and would leave the field Open for
the circulation of Bank of England notes.
On the whole, I am humbly of opinion that the
unrestricted issue of paper, either by Government
or classes of individuals, is liable to abuse ; but
that a limited circulation of Goveintneut paper,
under the guarantees, and to the extent proposed, is,
under the circumstances in which this country is
• placed, not only safe, but absolutely necessary.
I remain, Sir, your very obedient servant,
THOMAS NIMMO.
Southern District Bank, Southampton, Dec.. 26.

SEIZURE OF SPIRITS...•-Wednesday last, iu
formation having been lodged with the Excise, that a
spirit dealer in town, to the injury of his creditors, was
sending off a quantity of spirits to various other spirit
dealers, Messrs. Pearson, Headley, and Miller, of the
Excise, immediately instituted a search, and recovered
in one place 30 gallons, in another 26, in another 50,
and in another 20, in all 126, which they seized and
conveyed to the Excise store. The spirits were con-
cealed in back courts, in bed-rooms, dungeteads, &c.
The penalty for receiving spirits without a permit is, by
the Act, 2001., with forfeiture of spirits..—Paisky Ad-
vertiser.

Christmas never set in here in a milder form than
at present. With the exception of yesterday, when
there was a heavy rain, the weather lately has bean
like the 'finest days in October or in Spring. An ex-
tensive sheep farmer writes us—" We have not bad
such a season for sheep stock for twenty years."—/ttoer-
ness Gazette.

Last week Mr. Benjamin Hartley, stbnemason,
Middleton, got a mushroom 19 inches in circumference,
in a field belonging to Thomas Ashton, Esq., of Park
House.—Manchester Courier.