The Sun.
London, England, 1856-05-08 00:00:00

LONDON, THURSDAY, MAY 8, 1856.

A statement has recently been published, under
the hand of Lord PANMURE, showing the amounts
of the original estimate and of the reduced esti-
mate, the sums already voted, and the sums re-
maining to b© voted, on account of the Army
Estimates for the year ending the 31st March,
1857. Without entering into the particular items,
it is sufficient for our present purpose to state that
the original estimate amounted in the whole to
34,998,5041., and the reduced estimate to
20,747,5741., showing a saving in 'this single de-
partment of 14,250,9301. sterling. Fourteen
millions and a quarter ! Much may be effected
with this enormous amount. And it, is desirable
to consider in what mode it may be applied most
conducive to the welfare and prosperity of the

entire community at large.
Fourteen millions and a quarter ! The sum
is suggestive. It recalls to our memories a very
important item in the weekly accounts of the
Bank of England. It indicates the value of the
notes which " the Old Lady" is permitted to issue
against Government Securities, and the payment
whereof is a condition precedent to the abrogation
of the Bank Charter. If these fourteen millions
were satisfied there would be comparatively but
little difficulty in the final arrangement of the all-
important question. The providing means for
paying off the debt has been the chief obstacle to
a settlement. It has been a millstone about the
neck of successive Financial Ministers, and
the present Chancellor of the Exchequer has
scarcely the energy to grapple with the diffi-
culty. But here are the means at once pro-
vided. The saving on a single item of ex-
penditure gives a quarter of a million more than
is'required to effect this great desideratum, and
to free the British Government from the shame
of being perpetually begging from a private cor-
poration for assistance but too frequently reluc-
tantly doled forth.
Of this sum 11,150,0001. is in the nature of a
permanent advance, bearing interest after the
rate of 3 per cent, per annum, but of which in-
terest more than half (180,0001.) is relinquished
in consideration of the exclusive privileges en-
joyed by the Bank, that is to say of issuing notes
payable on demand in London, or within 65 miles
thereof, and that its notes are made legal tenders,
except at the Bank itself and its branches, and
exemption from stamp duties upon its notes.
These are the avowed equivalents for the virtual
monopoly, but there are others of even greater
consequence, amongst which may be included
the prohibition of all notes for less than 51., and
of the extension of the issues of any old Banks,
or of any new Banks whatsoever, no matter how
unquestionable their solvency or ample the secu-
rity offered to the public for the redemption of
the notes on demand.
It is needless to expatiate ou the vast import-
ance to the nation of obtaining a perfect " free
trade irk money," and removing' every restriction
on banking operations either in town or country.
It would be well worth not only the 180,0001.
paid, but even ten times the amount ; and we
believe that there is no person who has studied,
and thoroughly understands, the question, who
would not consider its relinquishment a cheap
priee for the independence of the country, and
even of the Bank itself—and believe that they
would be mutually beuefitted by the change. We
find other great Joint-Stock Banks realising
larger profits and offering better dividends
to their shareholders than the Leviathan,
and we have little doubt that with unrestricted
competition and better management, which would
speedily follow the alteration, the proprietors of
Bank Stock themselves would reap considerable
benefit from the separation of Bank and State.
But it is' the interest of the community at
large that we are chiefly bound to look to, and
there can be but little doubt how greatly that
would be promoted by attracting new capital into
banking operations. The establishment of a

really National Bank, issuing notes of 1/.,
2(., and 3/., secured on all the property
and industry of the country, and receivable
in payment of taxes, would be of inestimable
advantage to the trade and commerce of the coun-
tY. It would liberate at least 30,000,000/. of