The Sun.
London, England, 1835-06-17 00:00:00

BANK OF EGLAND.

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(FROM A MORNING PAPER.)
The annexed communication is from a corresponder
who is perfectly conversant with the subject treated o
Which is of great interest to monied men, but particularly
to the proprietors of Bank stock. If his deductions are
correct, the much-vaunted " rest" of the Bank Directors is
a mere imagination, with no real existence :
" In your City article of the 9th instant there are some re-
marks on the mode in which the Bank Directors bring the
dead weight to account in their periodical balance-sheets, and
after turning to the Bank accounts, I see great reason for
thinking that these remarks are correct.
" By the appendix to the Bank Report, No. 13, p. 30, it
appears that the capital value of the dead weight annuity is set
down under date of the 29th of February 1832, at 10,897,8801.,
and in appendix No. 15, p. 32, and under the same date, the
sum of 451,4151. is carried to the profit account for disposable
interest on this annuity, and therefore the Bank Directors ap-
pear to have brought this article to account in the terms of
the original contract in 1823. But this is to have no regard
to the change in the rate of interest which has since taken
place, and is therefore to treat the matter very erroneously. as
will appear when the facts of the case are briefly and plainly
stated.
" The annuity is for 585,740/., and in 1832, when the above-
R►entioned accounts were made out, it had 35 years to run.
hr that year the Bank Directors, as we have seen, carry to the
account of profit on this annuity, and distribute as dividends,
451,415/., retaining the sum of 134,3251., to accumulate at
compound interest, in order to ensure the return of the capital
of 10,897,880/. at the end of the 35 years. But if we even
reckon interest at 4 per cent., the sum of 134,3251. per annum
will, in 35 .years, produce only 9,893,3441., leaving a defi-
ciency at the end of the term of 1,004,546/. If we reckon
interest at ai per cent., the 134,325/. per annum will, in 35
Years, produce 8,955,986/., leaving a deficiency at the end of
the term of 1,841,8941. ; and if we reckon interest at 3 per
cent., then 134,3251. per annum will, in 35 years, produce
8,121,568/., leaving a deficiency at the end of the term of
2,776,312/.
" Now it is most certain, that for a very great number of years
past the Bank Directors have not been able to employ money
at more than 3} per cent., and probably not at more than 3
per cent. Taking it at 34- per cent. the deficiency, as we
have already seen, will be 1,841,8941., and taking it at 3 per
cent. it will be 2,776,312/. And therefore it appears that the
Bank Directors have not retained a sufficient portion of this
annuity to accumulate at compound interest, in order to in-
sure the return of the original capital., and that consequently
they have been paying dividends out of capital.
" With respect to annuities for terms of years, it should
Seem filet there is only one true way by which they may be
valued awl brought to account, and that is annually at a (et.-

tain fixed period to estimate their value according to the then
rate of interest at which money may be invested, and then
divide according to that rate of interest upon the capital value,
and lay out the surplus to accumulate at compound interest
for the redemption of the capital. Thus at 3- per cent. in-
terest the capital value of an annuity of 1001. for 35 years is
2,0001., and the interest on 2,0001. at 3i- per cent. is 701. ;
and, therefore, if an annuity of this kind and in these circum-
stances belonged to a public company, they would have 70/.
to distribute that year as dividend, and 301. to lay out at com-
pound interest ; and in like manner, and upon the same prin-
ciple, they might proceed every succeeding year till the end of
the term."

LORD RAVNOR'S BILL RESPECTIN G

THE THIRTY NINE ARTICLES.

Whereas the subscription of particular articles of faith in
the case of persons of tender years, and before they can have
so accurately and minutely examined the same, and the grounds
on which they rest, as to give an entire and implicit assent to
the doctrines therein laid down, is unreasonable, and may tend
to evil consequences ; be it enacted by the King's Most Ex-
cellent Majesty, by and with the advice and consent of the
Lords spiritual and temporal, and Commons, in this present
Parliament assembled, and by the authority of the same,
That from and after the passing of this act no person shall be
required by any person or persons in authority in the Univer-
sities of Oxford or Cambridge, or elsewhere, within the King's
dominions, to subscribe or declare his assent to the 39 articles
of religion agreed upon by the Archbishops and Bishops of
both provinces and the whole clergy in the convocation holden
at London in 1652, or the 3 articles contained in the 36th
canon, at the time of matriculation at either of the said Uni-
versities, or of entrance at any college or hall within the same,
and until he shall have attained the age of 23 years, or, in
case he shall take the degree of Master of Arts before he
has attained the age of 23 years, until he shall have taken the
said degree.
Provided always, and be it further enacted, that nothing in
this act contained shall extend, or be construed to extend, to
exempt any person from the obligation to subscribe such ar-
ticles, or to make such declarations as by the custom and sta-
tutes of the said Universities are now required, before any
person can sit and vote in the convocation or senate of the said
Universities respectively, or as may now by law be required in
order to qualify such person to take any ecclesiastical orders,
or to preside or sit as judge in any court spiritual or ecclesias-
tical, or to hold any ecclesiastical office or benefice whatsoever,
or as under the special requisition of the founder of any en-
dowment are now required to be subscribed or made to enable
the members thereof to enjoy the benefits of the same.