The Sun.
London, England, 1832-07-02 00:00:00

SPIRIT OF THE PUBLIC JOURNALS

We arc far from wishing to set bounds te
the joy of the inhabitants of Westminster a'
the passing of the Reform Bills. We cannot,
towever, help thinking that an illumination o
three days is rather too much of a good thing.
They must have a strange relish for the smell of
oil, and a capability of bearing heat almost equal
to that of a salamander, who will be satisfied
with nothing less than a three days' illumination
in the burning month of .July. The inhabitants
of Westminster will, we trust, reconsider their
determination, and those of them who have such
a stomach for oil and roasting, ought in mercy
to abate something of the three days for the saki
of others. Really this projected illumination of
three days will be a very great nuisance. NN e
trust, at all events, if we are to be subjected to
~nieh a nuisance, that it will be the last illumina
tion we shall have to encounter. A good
Catholic would take a year extra in purgatory to
be rid of it. Besides, those who are so fond of
illumination ought to consider, that as the
patience of many others will be infallibly ex.
hau,ted (to say nothing of the cost), the conse-
(p of it will, before all is over, he breaking
of windows and outrages. The householoers in
g,eneral are, wehelieve, verygenerally dissatisfied
with this attempt to extend the illumination to
three days. The thing must not be attempted.—
Morning chronicle.
We must again impress upon the Members of
the Bank Committee the scandal and impolic)
of prematurely closing their labours by any pre-
tended final -Report on the wide and all-im-
portant subject of their legislative inquiry.
Whoever contemplates such an indefensible ob-
7ect must be swayed by some sinister interest, or
the desire of evading his own responsibility in
past legislation. But while we thus promote a
thorough probing into the whole situation, and a
complete review of the monopoly and working of
the Bank of England, we would not be misin-
terpreted, or suspected of any desire to promote
an alteration of the standard. The return to
cash payments, after the long existence of an
inconvertible paper money, has been, doubtless,
grievous in the extreme to the debtor interest of
the whole kingdom ; but he would be a most
rash and wild speculator who sought again to
disturb all present contracts, and to rob another
class of society by an arbitrary reduction of the
standard. There are various and important pur-
poses to he answered by a full investigation be-
sides those connected with the question of
standard. They are sensibly expressed in the
following extract from the " Penny Appendix to
the Reform Acts, being Facts for the Use of
Electors "
RENEWAL OF THE BANK CHARTER.
" It is reasonable to expect that the Bank Charter will
not be again renewed without an entirely new arrange-
ment far more favourable to the public interests than that
note subsisting. The Bank annually receives about
257,000/ f.r its trouble in paying the dividends. It holds
balances of public money, free of interest, averaging three
or f.ur rnil!iona. These balances are employed in dis•
counting bills at the rate of four per cent., yielding a re-
venue of 100,0001., which, being added to the 257,0001,
makes an annual sum of 417,000/. derived from its deal-
ings with the Treasury. The Bank also enjoys various
exclusive privileges in carrying on the trade of banking.
By the Act of Anne, no coporate body or partnership,
consisting of more than six persons, other than the Bank
of England, is allowed to cirry on the business of bank-
inz. After the panic of 1823, this privilege was so far
relaxed as to allow the establishment of banking firms of
more than six partners, at places exceeding the distance of
sixty miles from London; provided such firms had no
establishment as bankers in the metropolis. These re-
srrictions form a chief obstacle to improvements in bank-
ing, both in London and the country, and no reasons exit
why they should be longer maintained in favour of this
rich and ova rgrown corporation.

't When the charter expires, the Bank proprietary be-
come nothing more than a common partnership trading
upon a joint-stock. Government, by granting a charter 01
incorporation to a new association, and transferring to it
the exclusive privileges of issuing notes, of retaining the
public balances, and of paying the public dividends, might
av_ one ',low destroy two.thirds at least of the business and
revenue of the Threadneedle-street establishment. This
we advert to, lest it might be thought, on the renewal of
the Bank Charter, the Directors had power to pre-cribe
their own terms to Government : the power is all on the
ocher side—in the hands of Ministers, and if they do not
exercise it fur the public benefit, they will not have faith-
fully discharged their duty to the community. The rela-

ton in which the Bank stands to the public is nothing
wore than that of a number of pnvare individuals entitled
to no special f,vour ; whatever privilege they enjoy, they
ought to pay for ; for whatever work they perform, they
onght not to receive more than a reasonable compensation.
Upon this principle, let us inquire what ought to be the
main conditions of the future contract between the Bank
and Government.

" First, the Bank ought to account to the public for the
profits arising from the exclusive privilege of issuing notes,
after deducting a reasonable sum fur trouble and incidental

t!spen•e..

64 Secondly, The Bank ought to pay a per-centage for
the av•-r,ze amount of public balances it holds and employs
in banking.
•• If the composition paid by the Bank in
lieu of stamp duties be inadequate, it ought to b.-
augmented.

'• Fourthly, the Bank ought not to charge a greater
sum per million for the payment of the dividends than is
an equitable consideration for trouble and loss of time.
" Fifthly, The Bank being invested with important
public trusts, and having the control of the na'ional cur-

rency, and as any error of judgment committed by the
Directors might be productive of disastrous consequences,
it is highly expedient their affairs and proceedings should
be at all times known, co as to be constantly open to public
and Parliamentsry observance and discussion.
" Sixthly, If the suegestion which has been made, and
appears judicious, be adopted, of making a Bank of Eng
land note a legal tender when offered by the country banks,
the concession of so great and advantageous a privilege
would justly claim a bonus from the Bank to the public;
especially as it would tend to augment the circulation al
their notes, and accelerate the spread and establishment of
their branch institutions.

" Lastly, the Bank Charter ought only to be renewed
for a short term of years. Fur this, three reasons may be
assigned. Fri bt, it would tend to keep the Bank dependent
upon and tinder the control of the Legislature. Secondly,
the peculiar and changing state of the country at the pre-
sent moment is a strong objection both against granting
and accepting lung leases by public Bodies. Thirdly,
there is no public reason for renewing the Charter for a

long term. In this respect the 13,111 k and East India Com-
pany materially differ; the affairs of the former are all at

home, and may be wound up at any time in six months ;
the affairs of the latter extend to the other side of the

globe, and requir. years."

But, independent of these intelligent remarks
on the monopoly of the Bank of England, the
general question of the laws regulating the Cur-
rency or " Banks of Issue" ought to he com-
pletely reviewed. There cannot be a doubt that
the circulating medium of the country may be
greatly improved—that credit may be extended
on safe and enlightened principles of banking--
that the monetary legislation of other countries,
particularly that of tile United States of North
America, will furnish much invaluable data for

British legislation—that the Usury Lads may be
most advisably modified—that the Bonding
System may be excellently extended into the

country—and that some modification of con-

vertibility may be wisely devised, to guard
against the recurrence of. ~ panics"—all which
important subjects are immediately and ne-
tessarilyttaddanected with the inquiry of the
Bank ► Ccnnetittee. The pressure on the
productive and' industrious classes must be .
re-
lieved by the grefeept practicable adoption of the
principles of firt‘t de in commerce and money,
tl
consistent, with. —." t r existing financial system.
Taxstiph-ilitstMie reduced to its lowest possible
it.lo,}-1. 'tilo4l-1