The Sun.
London, England, 1833-06-01 00:00:00

NEW BANK CHARTER.

(Concluded from our Paper of yesterday.)
The CHAIRMAN said that the Directors felt themselves
justified in recommending the adoption of the propositions,
supposing that the measur.s of the Chancellor of the
Exchequer be carried into effect by the Parliament.
What the Chancellor of the Exchequer proposed rescfrct-
ing the country banks, in which an encouravement was
given to joint-stock banks, must increase the circulation
of the Bank of England, and, therefore, if the measurrs

be carried in Parliament the Directors would recommend
that the propositions be adopted.
Mr. LLOYD then rose and said, if he understood the
answer of the Chairman, the plan of the Government, as
then detailed, was recommended for the adoption of the
proprietors by the unanimous voice of the Directors.
(Loud crier of " Hear, hear.") After such an expres-
sion of opinion on the part of the Court of Directors, it
would naturally be expected that some expression of opinion
should emanate from that Court of Prupriet ins If the
question hail been for the first time before the minds of
the public, it would not have been expected that they
could have made up their minds ; but as such was not the
case—as the question of the Bank Charter had been fully
betore the public for the last twelve months, he did not
see any reason why they should not at once consider
the plan. (Hear, hear, hear.) It was eviden ly
founded upon the evidence which was given before the
Committee of the House of Commons by men of the
greatest experience ; and as he thought every one present
had well studied that evidence, they would now be well
acquainted with the plan before them, and of course ready
to come to a conclusion, which, in his opinion, would be
at once to give it their cordial approval.—( Hear, hear.)
It was nut a question merely of pecuniary interest
between tie Government and the Bank—it involved
the general interests of the whole community. The prin
cip ml question wag, would the plan place the monetary
system of the country upon a safe, sound, and satisfactory
basis.—(Hear.) When they had considered that, then
they might come to the consideration of a secondary ques-
tion—whether the plan was founded upon the true prin.
ciples of economy. The first part of the plan was the
renewal of the charter. Exclusive privileges of any
kind were not at the present day in good favour with
the public; but it was to be remembered that the only
ground on which monopolies were to be found fault with
was when they were found to be prejudicial to the inte-
rests of the country, and that there were some monopolies,
which, so far from being pernicious to the public, were
actually of great use, and surely they were to be looked upon
in a different light. No one would now like to see the
liberty of coining in the power o' every individual—every
one must acknowledge that for the country it was a roost
beneficial monopoly in the hands of Government. Then
mite), the same principle ought to be carried into effect in
the monetary system of the country, which was a subject
nut less delicate than that of the coin. Surely it was most
proper that the whole management of such a delicate
business should be plat. d in the hands of a Company which
was at all times responsible—upon whom the responsibility
might at once be fixed. If the currency was issued in excess,
they were well aware that the party assuring might make
a profit, but the effect would be the ruin of the country.
He was glad, therefore, that the main feature in the plan
proposed by Government was the exclusive privileges
that the Government did not give way to clamour, which
was not founded in reason. The proper control over
any body was unquestionably found in publicity of the
concerns of the body. It was, therefore, with infinite
satisfaction that he saw the Government had placed
the control of the parish in their dealing with such
a delicate subject under the control of publicity. I
would relieve the Directors of a great load of respon-
sibility and from a great deal of odium, which
the close system necessarily made them liable to.
By these means the greatest benefit must he secured to
tie public, who would also derive an advantage from
this tact, that they would have reason to keep a wa ch upon
the future fluctuation of the currency. His view
of the propositions and of the principles by which they
were characterised was, that they were wise, salutary, and
efficient. They were calculated to give greater power
to that body in the discharge of their duties. The
first was that which should make Bank of England notes
a legal tender by all parties except by the Bank of
England. That was an important, wise, and
judicious regulation, for if it be expedient that a
paper circulation ; for the purposes of economy and
convenience, be substituted for gold, every person, for
the public good, should he compelled to receive it.—
(Hear.) It was clear th mt the pa“ntnt in gold by
the Bank alone was fully sufficient, and that any farther
power to demand gold would only have the effect of mag-
nifying the evils which might result from any mischievous
opet ation of thy monetary system. The next regulation was
rasher of a mule prospective character, v.a., that by which
the effect of the usury laws was suspvtided, so tar as re-
lated to bills having three months to run. It was unnecessary
to use any arguments in order to show that these laws
were founded entirely in ignorance. (Hear, hear,
hear.) Bu when they looked to the state in which the
affairs of t..e country were involved, he thought it
would not be prudent to select the present tio,e for a total
abolition's mt those laws. There was, however, agm eat incon-
venience experienced at the Bank at times when tl e demand
fir money Was so great as to inske its value exceed
five per cent., for at those times it was clear
that the Bank was either compelled to refuse or
limit its discounts or to extend its issues, both of
which were evils that ought to be avoide He
thought, upon the whole, that the pr, posed ma-
nagement of the monetary system of the country,.
was founded on sound and just principles, as
it would be placing that management under one body,
and that Ludy c. strolled by sound and sa unary r-gu•
lations. On the groun s which he had stated, he
had no hesitation in saying that the plan was
one most fitting for their acceptance. As a matter of
s condaty import .nce, he would now advert to what were
to be the pecuniary matters between tree Government and
the Bank. Time first proposition was, that 25 per cent.
on the present capital of the Bank should be repaid. I
was of es, n•ia importance to the public that the capital
of the Batik shout.' be of that amount which should secure
its responsibility, but it was not desirable that that capital
should be carried to an amount beyond what
was absolutely necessary. He tmelieved that the
caplal, as now proposed, would be found fully
aaequate to the public service. Time next regulation that
was proposed was, that Government should from hence-
forth pay to the Bank 120,0001. less for transacting the
public business than they had hitherto paid. That was
a large deduction, certainly, from the sum that was now
received by the Balk ; but all that that body could rea-
sonably expect was, such a remuneration for the perform-
ance of their duties as would compensate them for
the employment of their capital. Upon this point
ire would say the Proprietors might place a full—
he might say, a blind—confidence in the discre-
tion of the Court of Directors, feeling confident that
they would not wish them to recommend them to
adopt a proposition for a less sum than they
ought to receive. Under all the circumstances of the
case, it appeared to him that the plan was one
that that Court might satisfactorily adopt. It
placed the monetary arrangement on a safe footing, and
it was characterised by those principles of fairness and libe-
rality which were due to the Bank of England. He gave
the Court of Directors his most full and unqualified
approbation for their conduct; and be congratulated
that Court, that while in respect to ocher great ques-
tions now in agitation, parties interested in them
and the Government were in collision and hostility,
yet, as regarded the affairs of this Company, ti ere was a
happy prospect of coming to a satisfactory conclusion—
(Hear, hear)—and that whatever might have been the
conduct of Government upon other subjects, upon the pre-
sent one it had enlisted s..un.l and honest principles, and
had been unyielding to any popular clamour.—(Bear,
hear.) When the Government thus adopted such principles,
it should Meet with a cordial and hearty co-operation,
nor ought that Court to forget that great and important
as were the advantages to be derived from wise and salu-
tary changes, the present was a case in which property
to a large amount was daily changing hands. Surely on
a subject of such delicacy, and of such great importance
as the monetary interests of the country, suspense
and uncertainty must be a great evil. When, there-
fore, a prospect was held out of coming to a speedy
and satisfactory arrangement, it was incumbent on all
parties to make some sacrifice—to make some advances
towards so great and happy a conclusion.—(Hear,
hear.) He thought, therefore, they would ill consult their
own interests, and imperfectly discharge their duties to
the public, if they interposed any unnecessary delay
in carrying the proposed plan into execution. The
Hon. Proprietor concluded by proposing the following
resolution :

" That this Court fully approves of the course pursued
by the Court of Dir•ctors in their negotiations with the
Cbancelliir of the Exchrquer reipecting the renewal of
the privil-ges of the Bank of England, and authorises them
to come to a final arningetnent, founded on the letter this
day read by the Chairman."
A PROPRIETOR, who we understood was Mr. Jait es
Campbell, seconded the resolution.
Mr. F. Yousa sal i he would he as concise as possible
in his observations on a question of such vital importance,
which could only be decided on monetary principles.