The Sun.
London, England, 1833-08-22 00:00:00

OPINION.

We are of opinion that, under the existing laws, a
partnership or company exceeding six persons cannot carry
on a joint-stock deposit bank in London, or within 65
miles thereof. The original provision was, that the Bank
of England, and no other bank, or any corporation, &c.,
in the nature of a bank, should be allowed by Act of
Parliament within the kingdom. This was the only
provision. It was treated as clear that no bank, properly
so called, could be established without the authority of
Parliament. As this exclusive privilege was broken in
upon by the corporations, and great numbers of persons
presuming to borrow great sums, and therewith contrary
to the intent of the Act, dealing as a bank, the prohi-
bition was enacted against any other corporation that
the Bank, or any other persons exceeding six in numl.er,
borrowing, owing, or taking up any sum of money on
Their bills or note., payable at any less time than six
months from the borrowing thereof. This was a fence
thrown around the former provision, but in no manner
weakened its original force. The prohibition is not con-
fined to bankers, but extends to all corporations and
companies. These two provisions were repeat.d in later
times. No other hank was to be erected, established, or
allowed by Parliament, and the Bank of England was to
be and remain a corporation, " with the privilege of
exclusive banking." This exclusive privilege was so far
limited by the 7th of George IV. as to allow any corpo•
ration erected for the purposes of banking, or any number
of persons in partnership, although exceeding six in
number, to carry on the business of bankers in Enz.
land, and to make and issue their bills at any place in
England exceeding sixty-fire miles from London payable
on demand, &c. ; but they were not to have any esta-
blishment as bankers in London, or at any place
not exceeding sixty-five miles from London. This ex-
ception still left the former prohibitions untouched as re-
garded bankers within 65 miles from London, and the
Act creating the exception carefully reserved to the Bank
all their other rights. The Government, now professing
only to clear up doubts which exist as to the construction
of the Bank Acts, propose to enact that any corporation
or partnership, although consisting of more than six per-
sons, may carry on the business of banking in London, or
within 65 miles thereof, with a repetition of the prohibi-
tion against their borrowing any money on their bills
payable at any less time than six months. We are clearly
of opinion that this would be a direct violation of the
rights of the Bank of England. If we contrast the pre-
sent law with the law as it is proposed (in order to clear
up the don'ts) to be declared it would stand thus:—

THE PRESENT LAW.
The Bank of England to be
the only bank authorised by
Parliament to have the exclu-
sive privilege of banking.
No other corporation, nor
any company exceeding six
persons, to borrow, &c., any
money on hills payable in less
than six months, unless their
establishment is more than 65
miles from London, and that
their bills are issued at a greater
distance from London than 65
miles.

THE LAW NOW PROPOSED.
The Bank of England not to
be the only bank allowed by
Parliament; but Parliament
now to declare that any corpo.
ration or partnership, although
exceeding six persons, may
!carry on the trade of banking
anywhere in England, with a
simple prohibition against their
borrowing any money upon
their bills payable in less than
six months, if they carry on
their trade in London or within
fi3 miles of it.

This, in our opinion, is entirely to change the law,
under the colour of clearing up doubts upon it. The ex
elusive privileges of the Bank of England are not confined
to its powers as a bank of issue, but extend as well to its
rights as a b ,nk of deposit; and the policy of our Govern-
ment has hitherto forbidden the establishment of joint-
stock banks even of deposit. If the law were as it is pro-
posed to be declared, the provisions in the various Bank
Acts could not have assumed their present shape. At
the very outset the right of Parliament to allow the esta-
blishment of banks of deposit must have been declared,
and more especially the 7th of George IV. could not have
been framed as it stands. It enables the establishment of
banks, in England, consisting of more than six partners,
and authorises them to issue bills at any place exceeding 65
miles from London, provided that they have no house of
business as bankers in London, or at any place not exceed.
ing 65 miles from London. The first provision, therefore,
as to establishing banks in general, without restraint, and
the power to issue bills at any place exceeding 65 miles from
London, is also general ; but the prohibition limits the last-
mentioned power to firms all of whose establishments are
more than 65 miles from London. Now, if the new view
than six months would have been confined, in the first
instance, to those bankers who carried on their business
wholly at a distance exceeding 65 miles from London,
and there would have been no prohibiting proviso. It is
quite clear that neither the framers of the various Bank
Acts, nor the Legislature in passing those Acts, took the
view of the law which the Government now considers
the correct one, and the general opinion of the community
has always been against the right now claimed. This is
proved in the strongest manner by the acts of the monied
men of England contrary to their wishes and interest.
Great weight surely is due to a universal practice during
a century and a quarter, and contemporaneous usage has
always been considered to be entitled to great attention.
If the Bank Acts could have borne the construction now
put upon them, is it net probable that some of the vast
capital thrown away in late years in the bubble companies
would have been applied to the object of joint-stock de-
posit banks in London? It may be right to observe that
the private trade of bankers who succeeded to the gold-
smiths is not prohibited by the Bank Acts. Their es•
tablishments, as they are conducted, do not constitute
a bank within the provision of the Acts. But they
have in practice been confined to six persons. This
does not arise from any express prohibition, but may
have been occasioned by the prohibition against more
than six persons owing money on any bill payable in less
than six months, which practically may interfere with the
common course of a priive banker's business; or it may,
by an easy analogy, have been considered that the establish-
ment of a company of more than six, for any banking
purpose, would he a hank struck at by the Acts of Par-
liament. It is manifest that even a bank of deposit could
not he managed without some Parliamentary or Royal
sanction ; of course no Royal sanction could be given to
any such bank whilst the present Bank Acts remain
unrepeaterl ; but the proposed declaration would give a
Parliamentary sanction to such establishments, and that
would obviously lead to other provisions in their favour.
The 7tli of George IV. is a Parliamentary recognition
that a bank of more than six could not have been esta-
blished without the aid of the Legislature ; for it starts
with an enactment authorizing the establishment and car-
rying on of such banks " in like manner as copartnerships
of bankers consisting of not more aan si.z• persons in
number may lawfully do ;" and the Government in the
first draft of their Bill so treated the law. Upon the whole,
in our opinion, the proposed cause is not a declaration,
as it professes to be, of the existing law, but a repeal of
that law, and a substitution of a new one, and is in plain
opposition to the terms of the contract, as originally pro-
posed by the Government to the Bank.
(Signed) EDW. B. SUGDEN.
August 16, 1833. GRIFFITH RICHARDS.

There have been some cases of cholera ra-
pidly fatal at Faversham, Maidstone, and some other parts
of Kent.

THE Moons.—The great advent of the
sporting season was this year ushered in by highly
favourable weather. Monday the 12th was clear and
dry, ond sot too close or sultry. The sport in
this neighbourhood has been pretty good. Sir Francis
Mackenzie, Bart., killed upwards of sixty brace; Sir
George Mackenzie, But. had nearly equal success; and
the sport at Aberarder, as stated by one of the partivs,
was above an average, The party at Balmacaan had also
good sport. Lord Castlereagh went on Saturday to his
quarters at Guisachau, but, having tried only the low
grounds, his Lordship is said to have had but indifferent
luck. The Marquis of Carmarthen had joined Lovat at
his grounds at Killin, Stratherrick. Lord Cawdor and
son had good sport on the grounds at Cawdor. The
billowing shooting parties are arranged :—Lord Donegal,
at Freeborn; Messrs. Bell, Sprott, and Thornhill, Dal-
migavie (Captain Cunyngharne is also expected to join
this,x party);
Colonel Porter ..
-•Colonel Standen, Major Fostor, Captains
Dixon,
_ln, Ilareiiird, and Catnpbell, at Aberarder ; Sir John
Esq., 'Mr. Grove
H. Tyral. NI T)
Urquhart. The' aSin,tila tNI.II
- •a,ndanAdir JD.
ißb. Stone,A Esq.,l.,
ff at Knß7kiiv ;
gy, at ~ertar ,J. ,e,
~,,,11,e. V. Br
gra.rvSempitahr,tyatoßiarslrnsia:aalnytHrrmoua-led,
Park, E•q. At Nuvnariwned bY
and Mite) have
have taken the field.--
Tihtere is
-,C,oakpet: Captain ,
(ID. i landkie andparty, J
Courier
SINGULAR FAACT.rness
that waats bon p
! the
Lowr-ksensor,huStut
en. Sunderland, aunpd,,,nai
t.e ili
face, Which is subject to
Int:fo:it, the
t•esweittlft,
the following remarkable changes
season, the resemblance of the head i: In the summer
mings, legs, &c., highly coloured, the whPorl:
consi-
derably greater degree of heat than any other part :flO
child's body ; in ainter, the wings, legs, &c., are seared
perceptible, the head diminishes to a mere speck, and the
whole i 9 of a death like coldoeas