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

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the power of checking the amountnisei-Zoo bat `..1
will be just at times when th fit n i ainey s %a,
rising, and the usurious laws gelf ("clohave their
mischievous effect. This alteratio advan-
tazeous not only to the banking- tel:e*
commercial interests of the countryl'benitiaq tea--
lieve no one can doubt that the consequence o bills
not being to be discounted except at a certain
iate of interest, does interfere very prejudicially
with the mercantile interests of the eountry.—(Loud
cheers.) Now, Sir, having stated these points, I
come to that part of the question which applies to the
actual situation of the Bank of England.—(Hear,
hear.) The debt due to the Bank at present amount. to
14,600,000/. ; and it must he evident to every one who
considers it, that it is not at all necessary that so large an
amount
of
ountof
givingc
capital should be lock'd up for the purpose of
securing the Bank from insolvency. The fact is that this
amount of capital was accumulated, not for the pur
pose
with itnheeodccafseieolnavl
earydeve,cnu littlecreitsy. toapl
tptrlineheevne:riaonnwkisibncuo,tn:f.mooprposhithith,:e
purpose of enabling it to accommodate the Government
as essential to the security of the B ink ; and certainly'
a considerable reduction. But we must take into cone
eideration that although it was not contemplated for the
purpose of giving security to the Bank establishment, yet
credit is so very nice a thing and so susceptible
—(Hear, hear, hear)—that it woold be most im-
prudent to do any thing which would, by possibility, be
supposed to affect the credit of the Bank. Ido not, there-
fore, propose to make any reduction to a verb large amount.
The effect of so vast an amount of capital being tied up is to
render the expense to the Sc.ite very much greater than
otherwise. The Bank Directors state that they lose at
least one per cent. on the whole of t' eir capital ;
and the consequence is, they claim that they
should put this as part of the charge against
the public, for which we are obliged to pay. An-
other point which I think ought to he taken into con.
sideration is this, that the deduction which will now be
made will not give the Company so great a ground of pre.
ference as otherwise when this arrangement shall have
terminated. I propose, therefore, that there should be
reduction of 25 per cent. on this capital, whieh wil!
leave the amount dire from the public to the Bank otidet
11,000,000/. Now, lam quite certain that no on.- will tieny
that such an amount of capital. in addition to the 3,000,000/.0
of the other Bank capital will be quite sufficient to give
security againet its issues. Now. it, this proposition I have
maile a provision which must he considerably advantageous
ro the proprietors of the Bank, and therefore I have
ale.liaht I had a right to call on them to pay a sun. in
consideration of the renewal of the Charter. I might
have asked them to pay a large sum, but I am now to state
that qa which the Directors have consented, and wt,id,
will lie of advantage to the public. They will pay
120,0001. annual y, and that is to he deducted from the
amount paid to the Bank by Government for the
management of the public business.—(Hear, hear.)
Now, in former periods, the Bank has paid for a renewal
of its charter by a loan to the Government at a lower rate
of interest than usually was charged. There are two pro-
positions or plane which I might have taken advantage
of. I might have made the public share the profits of the
banking business of the country, or I might have adopted
that plan which I have now laid before the house, consi-
dering it better that the public should receive a fixed pay-
ment, instead of a fluctuating one. The amount which
was spread over a large surface, as I calculate,
would amount to 2,500,000/.—( Hear, hear.) 1 have
endeavoured as shortly as possible to point out the course
which I think it better at the present moment to adopt, and
which I propose to the House in the resolutions which
are now before it.—(Cheers.) I now come to another
part of the question—that is the part which relates to the
other banking business of the country. Sir, I propose
the establishment of joint stock companies—l propose
that all banks, with more than six partners, should be
considered as joint-stock bank,. I also propose that all
joint-stock companies shall he established by charter.
By this I do not wish to interfere in the management of
those banks, but I think it desirable that there should he its
the Charter a power to regulate the manner in which
they should carry on their business, which. by these se-
solutions, is to be conferred upon them. 80-, certainly,
it is not my intention that there should, in the charters,
be any conditions which should have the effect of changing,
or in any way of crippling, those establishments.
Sir, with respect to Irish Stock Banks, there are two
classes, one which issues notes, and the other that has no
issue. I propose, Sir, that those joint-stock banks which
issue their own notes should net be established at a less
distance than 65 milts from the metropolis, and I pro-
pose that they shall not draw bills for sums of less than
501., in order that there may not be competition between
them and the Bank of England. Although I propose
that the Charter shall be for twenty-one years, yet I
reserve to Government the right of giving notice of
one year at the expiration of ten years, for its con-
clusion at the expiration of the eleven. I propose,
Sir, that those Joint Stock B inks which issue notes
shall invest half their subscribed capital in Govern-
ment securities; and those that do not Issue notes to invest
one-fourth of their subscribed capital. Sir, I propose also,
that those Banks which issue notes shall be liable to
unlimited responsibility, and that those who do not issue
shall have their liabilities confined to the amount of their
subscriptions, or shares which shall not be for lees than
100/. each ; and that in neither case shall these Joint
Stock Banks be holders of their own shares as proprietors
of stock. And I propose, Sir, that the issuing Joint Stuck
Bank shall publish their accounts periodically, that the
public may be satisfied of their good management. Sir,
with respect to the capital of these Banks, it is not nes
cessary that I should define their required amounts, as
these must of necessity be left to the discretion of Go •
vernment. It is not, Sir, my intention to interfere with
the private banks of the country, beyond a trifling altera-
tion in the stamp duties they now pay to Government.
Instead, therefore, of having the option, as they now have,
of payment of the duties, they shall be compelled to pay a
stamp duty of '7s. per cent., the same as the Bank o
England. This, Sir, will enable the public to know what
amount of paper they have in circulation ; and I think it
will be desirable that that should be known, that the
amount of country bank paper in circulation should be
ascertained; and it is also desirable to know the general
amount of assets to meet them. With this view, there-
fore, Sir, I propose—not that the affairs of any individual
bank should be made public, because I am satisfied that,

. .
however right it may be in public banks that their affairs
should be known, that principle will not hold good
with respect to private ones, because many persons
might be ruined by the adoption of such a course:—
( Hear.) What, therefore, I propose Sir, is, that a
statement of the accounts of each should be sent up in a
confidential paper, that those accounts shall net be pub-
lished separately, but all shall be added together and then
published, showing the sum total in circulation and the
available assets of the country bankers to meet
Having now stated my propositions, I will merely lay the
resolutions before the Chairman to be read, and will
afterwards move that they be printed, in order that they
may obtain a full consideration on a future day. I know
that the tendency of my propositions would almost be to
make but one bank of issue, but no man would propose that
such should be the actual case. If a banking system were
to be now established for the first time, that might perhaps
be desirable, but I have made it the interest of joint-
stock banks not to issue their own paper, and, there-
fore the Bank of England issues may be increased.
The Noble Lord then handed to the Chairman a series of
resolutions, embodying; the details of his speech. We
give their substance as well as we could collect it, Br they
were hastily read by the Chairman to the following effect:
" That it was the opinion of the Committee that it was ex-
pedient to continue to the Bank of England for a limited period
the enjoyment of certain privileges now vested by law in that
Corporation, subject to provisions to be hereafter made.
" That provided the Bank of England continued liable as at
present to defray the current coin of the realm all its existing
engagements, it was expedient that its promissory notes should
be constituted a legal tender for sums of 51. and upwards.
" That one-fourth part of the debt at present due by the
public to the Bank be repaid during the present session of
Parliament.
" That the allowances to the Bank on the management of
the national debt, and other public business, be continued, sub.
ject to an annual deduction of 120,0001. from the remuneration
at present assigned for that purpose.
" That the laws restricting the interest of money to 5 per
cent. be repealed, so far as concerned bills not having more than
three months to run before they become due.
" That it was expedient that Royal charters be granted for
the establishment of joint stock banks within a certain distance
from London.
" That all banks should enter into a composition in lieu of
stamp duties, at present chargeable at the rate of 7s. for every
1001. issued in notes.
" That it was expedient that a Bill should be introduced
into Parliament to regulate country banks, the provisions of
which should be such as to encourage Joint ►tock banking
companies in the country to issue the notes of the Bank of
England."
Tne resolutions having been read by the Chairman,
Mr. BARING then rose, but was for some time in-
audible in consequence of the noise occasioned by Mem-
hers leaving the House. We understood him to give
the Noble Lord (the Cbanc,elloe of` the Exchequer) every
the matter as clear as such a subject
could
bfeor resolutions
thought, of course, the
would. be printed, and time, gives for the consideration of
dosntaet.ingHe