The Sun.
London, England, 1832-10-03 00:00:00

LAND CHARTER.

(Examination of GEORGE CARR GLYN, ESQ. Concluded.)
Does it occur to you that the interests of the
public require any important change in the laws
which regulate banking at present ?—I speak of
London more particularly, wl.ere I do not think they
require any great alteration; my conviction is, I
mention it reluctantly, because this is a point upon
which I may be thought to have an interest, but it
seems to me that the business of London with the
Bank of England, as the bank of issue, and with
private bankers, as the channels through which the
necessary accommodations are given to the different
commercial interests, is as good a system as can be
devised; instances occur every day, in which it
would be impossible for the first mercantile houses
in London to deal with the Bank of England, or
with a joint stock company; they come often to
ask for loans, for the purpose of executing orders re-
ceived from abroad for the export of bullion and
other commodities, they communicate confidentially
with their private banker, but they could not follow
this course or make these communications to the di-
rectors of a joint stock bank, some of whom might
probably be their rivals in trade and in these opera-
tions; and again, among the second class of traders,
we are obliged to proceed often upon the knowledge
we have acquired of their business and character, a
system upon which a joint stock company could not
act ; I consider also, that if these modes of accom-
modation were withdrawn the distress among many
of the traders in London would he extreme, and:the
impediments to business insuperable.
Do not you thick there is a great evil in the
change itself, in a matter so sensitive as the public
credit, unless there be a strong reason for the change?
—I consider it is a very great evil, and have no
docbt that at the present moment the expectation of
some change likely to take place in the system of bank-
ing is inducing many of the large dealers in London
to withhold from extensive transactions.
Do you conceive it to be important to have the
question set at rest as early as possible ?—I think
it very important, and believe I am expressing the
opinion of a very large portion of the traders of the
city.

Do you apprehend that there is any difference of
opinion upon that subject P—l have met with none.
Would you recommend any alteration in the law
re,pecting the issue of notes by country bankers;
would you advise that they should be allowed to
issue notes below 51., or would you alter the present
state. of the law with respect to their liability to pay
the notes they issue in gold ?—That is so important
a question that I scarcely feel myself competent to
give an answer to it; we have gone through the
period of difficulty from the alteration, and another
change might perhaps be again attended with serious
consequences.
With a view of preventing a pressure upon the
Bank of England for gold at a time of what has been
called political discredit, it has been suggested that
country bankers should be enabled to pay their
notes in Bank of England notes, and that for that
definite object Bank of England notes should be a
legal tender; have you ever considered that ques.
lion ?—I have; it is a question which has been dis-
cussed by several county bankers with me, and I
think there seems to be a feeling in the minds of
some that it might be a very beneficial measure.
Is that your own opinion upon it ?—I concur in
th• opinion that it might be perhaps beneficial.
What do you think would be the advantage of it,
er why is not there as much advantage in a coun-
try banker now being enabled to tender to his cus-
tomers the Bank of England notes in exchange for
his own notes, and leave it to them to decide whe-
ther they will take them or not ?—ln a time of po-
litical excitement this tender would be of no avail,
the demand would be for gold.
Would it nor, then, tend to add to the excite-
ment; if the public found they could not get gold,
would it not tend to discredit the Bank of England
note itself ?—I think there would be some advan-
tage in having the whole of the bullion concentrated
in one particular place, to meet any demand that
might arise against it, instead of having it dispersed
through the different branches and the different
country banks.
Your answer assumes that the public would
prefer gold to Bank of England notes ?—Yes, the
assumption having been raised in the previous
question.

- Then why would the pressure npon the Bank of
England be relieved, because the party holding bank
notes would press upon the Bank of England to
have those notes exchanged ?—That would throw a
difficulty in the way, inasmuch as they must either
bring or• send the notes to London.
In the mean time would not the public confidence
be shaken by that very difficulty ?—ln the year
1825 we tried the experiment in one town, during
the period when the Bank was supposed to be
pressed for gold, and it succeeded.
Was not there an issue of 11. and 2/. notes, which
supplied the deficient circulation of gold ?—There
was, but the principle was similar.
The present question refers to notes of Si. and
upwards ; if these was a want of confidence in the
Bank of England notes would the difficulty of the
two days' loss of time, that would be occupied in
sending the notes to London for payment, prevent
those notes from being tendered ?—lt would depend
so much upon the degree of excitement that might
be going on at the time that it would de difficult
to say.
Do not you think that in many remote parts of
the country there is a greater confidence in the
country bank paper than there is in the Bank of
England paper, on account of there being a greater
security from risk of forgery ?—That has been said
to prevail, but 1 am not certain that it is at all ge-
nerally felt.
Could it make any difference to the country
banker, except as saving him the expense of the
conveyance of gold instead of paper, when he was
to provide himself with Bank paper or gold to an-
swer a demand in case of a panic ?—I do not think
that the country [ioniser could Lind any individual ad•
vantage in the arrangement, except as it might be
generally a beneficial plan; it would only be to him
the saving of the expense and the risk of the trans-
mission of gold.
Has not one of the conveniences derived to the
country bankers, from the establishment of branch
banks, been the facility with which in many instances
they have been able to obtain gold when they
wanted it ? Yes; but in times of pressure I should
think it would be imprudent in a country banker to
rely upon that channel.
Are you aware that in several instances your cor-
respondents in the country have been obliged to
make deposits with the Batik of England, previous
to their being able to receive gold from the branches ?
—Yes.

Are you aware that in the course of May last,
the Batik of England refused to make those ad-
vances to the country bankers upon their making
those deposits in London ?—I believe that during a
short period there was that refusal on the part of the
Bank of England.
Do you think it would be possible to make the
Bank of England notes a legal tender on the part
of the country bankers, without making them a
legal tender in other transactions ?—.There cer-
tainly would be a difficulty.
Might it not place a person who ought to have
money at his command in a situation of impossibility
of paying his debts ?—lt might.
At present the notes issued by the Bank of Eng-,