The Sun.
London, England, 1840-09-18 00:00:00

LONDON:
FRIDAY, SEPTEMBER 18, 1840.

Our report of the proceedings of the Bank Pro-
prietors is of some interest. While other esta-
blishments, and capital embarked in other under-
takings, must be content with four or even three
per cent., when little or no risk is incurred, the
Bank of England, without incurring the smallest
danger, shares seven per cent. We would not say
a word on the subject, if it were wholly a private
establishment, and the profit were the result of fair
and open trade ; but the large profit is made by
the connection of the Bank with the State, and all
that it gains more than other banks is the result of
a monopoly given to it by the law against the public.
But, large as is the rate of interest, it does not
satisfy the Bank Proprietors. They remember the
halcyon days of one-pound notes and scores of
executions, and they demand back their eight, nine,
or ten per cent. Because the poor Directors
can no longer command the high profits
of a depreciated currency —in other words,
of a scheme for levying an additional tax on
the public—the Proprietors talk of reducing
their salaries. The poor Directors, however, ought
to be well paid—not on account of their labour, for
that is, we believe, nil, or next to it—but on ac-
count of the public odium they are obliged to bear.
A Bank Director, though he act according to law,
is engaged in administering a vexatious monopoly,
and he is looked on as opposed to the interest and
the welfare of his fellows. Though the profits may
be reduced, the odium will remain as long as the
exclusive privileges of the Corporation are con-
tinued, and the Governor, Deputy-Governor, and
Directors, ought to be paid for bearing it. Finally,
however, a vote of thanks was carried to the Direc-
tors, who deserve that from the Bank Proprietors,
whatever they may deserve from the country.

We have on more than one occasion expressed
our dissent from the opinions of our Correspondent,
" A Commercial Traveller," who writes on banking
and money matters ; but, believing him to be a
person of considerable acquaintance with these sub-
jects, we readily give insertion to his communica-
tions, and place great reliance on the facts he men-
tions. In his communication, which appears in our
journal this day, there is one very important fact,
which, as it makes, we think, against his
own deductions, and is in strict conformity
with the general progress of money matters,
deserves especial notice. He first states,
that " the use of bank-notes is superseded to a
great degree in all our large cities and towns by
bills of exchange and the use of checks." He re-
fers to the well-known fact of millions in amount
being daily settled at the clearing-house in Lon-
don, without the exchange of a single bank-note ;
and he affirms that this cleating system is extending
itself to other places. Even the farmer transacts
his business by a check-book and a banker's ac-
count, instead of cramming his pockets with bank
notes. He then says—

Another most, important feature in transacting the
business of the present day is to be found in the prac-
tice which very generally prevails of drawing bills for
the amount of an order on the first of the month after
its execution, this bill is then sent for acceptance
through some bank, and, when accepted, is discounted
by this bank, so that instead of our manufacturers and
dealers having, as formerly, large capitals absorbed in
book debts., this items) is now an nonentity, and the tra-
vellers of many such, when they go their journeys, have
not one shilling to receive, and thus the uses of which
money is capable is taxed as far as the ingenuity of man
can carry it.
This often produces a great pres'ure for money on
paricular days, and a greasy laxity on others, giving a
very uncertain and irregular character to the money mar-
ket, and our manufacturers would do well to obviate the
inconvenience which this is continually producing by
varying their days of drawing.

He deduces from this ‘; that there is no connec-
tion between the state of trade and the amount
of bank paper, or bank•notes, in ciiculation," and,
of course proves, if he proves anything, that
bills of exchange," " checks," and " bills for
the amount of orders," are now of almost infinite
limportance compared to the amount of bank notes
in circulation ; and that nearlythe
trade whole oftheY
fofa thseingcoleuntr
bank note, and be indefinitely en-
utrsaedoe
larged or contracted without the slightest altera-
tion in the issues of any bank. If I •
tus be a
correct statement, as We believe it is, how ineffably
ridiculous appears the inquiry of the Committee
of the House of Commons into the issue of bank
notes, which, except as it may ploce a few hurl.
dred thousand pounds, more or less, in the