The Sun.
London, England, 1832-09-10 00:00:00

foreign exchanges acted upon them ?---My opinion is, that
they have not anticioated the action of the foreign ex-
changes so much as they ought to have done, and that in
hot doing so they have not acted correetly.
As to the rat inagetnentof theit other concerns, other than
the issue, what do .yo? •i.-cnceive is the principle they have
acted upon lac tn their discounts ?—My understanding is,
thit to practice they are not applied to for discounts to any
considerable extent ; and I should imagine that tbey
count all the good bills that have been sent to them gene-
rally, with few exceptions ; but they have so tegnlated their
rate of discount, and generally such has been the state of
the interest of money, that they have not been applied to
for large discounts.
t)o you conceive that they have shown any great parti-
ality in the management of this branch of their trade?—
I should think for many years there has been no oppor-
tunity for such partiality or the reverse, because 1 believe
the discounting part of their business has been very in-
coneiderable, arising from the market rate of intelient
having been generally below the eat:. al which they •
discount.
In what manner la it your opinion that they have ge-
neralLy none:acted the currency when the exchanges have
halen against us, in diminishing their discounts or by a sale
of their securities ?—We have been led to conjecture that
they have been obliged by all sorts of private contrivances to
send Exchequer-bills into the Market ; and this constitutes
one of the ohjettions I have to the Bank of Englansl
nagement. Here are 24, gentlemen, all connected with
mercantile interests, that find it necessary, from their
knowing, as Bank Directors, more about mercantile
interests they any other persons in London, to con-
tract the Bank issues ; and they then invent va-
rious private modes of doing so. This we have been
led to imagine, but whether true or not I do not
know; it is a report that has prevailed, that Exchequer-
bills have been !fold with such great privacy, that it has
not been krinivn, even in the market, that they were the
Exchequer-hills of the Bank of England. I consider it
objectionable that any twenty-four gentlemen connected
with commerce should have in their sole possession the
government and knowledge of cireumstancss which must
pervade elk interests and regulate the value of all property.
I consider that every man, with common diligence and
with the common means of information, should have the
same power of obtaining infortnation about that which is
connected with and regulates the value of his property as
those seven or eight out of the twenty-four gentlemen cons
nected with the Bank direction, who form the committee
of treasury of the Bank 01 England.
Then the opinions you have expressed you believe to he
the opinions generally entertained by persons in commerce
upon their management the means of information I
have would lead me to conclude that, in reference to that
particular point, my opinion is a general opinion.
You have objected to the present system under which
the Bank sell Exchequer-bdis ; what other system have
you to suggest to the Committee which they ought to ob-
serve in the sale of Exchequer-hills which would be pro-
ductive of more advantage to the public ?—I will state to
the Committee what my impression is of the plan upon
which they have sold them ; I apprehend it has been done
with the greatest possible privacy; so much so, that I be-
lieve the people in the money market have not known
whether they were the Exchequer-bills of the Bank of
England or not; and up to this moment I am not sure
that urge amounts of Exchequer-bills that were sold were
really Exchequer-bills of the Bank of England or not.
Are they ever soil but by their own regular broker
I am not sure of that, I suspect they are; I have heard,
but then it is all whisper, that the Bank have fixed upon
upon different private channels to sell Exchequer hills,
from the knowledge that it will operate inconveniently
upon the money market to sell them in the open and
straight-forward way which they would be enabled to do

if every thing was open.
Are you aware that the Bank of England have to sell
Exchequer hills belonging to other parties than their
own proprietory ?—Clearly they are the bankers of other
parties, and probably may have to sell Exchequer bills of
theirs.

Is it usual in the market for a seller of Exchequer bills
to make known to the buyer for whom he is acting ?
Certainly not for individuals ; but when the, Government
have bad to sell Exchequer bills, there is no mystery about
it, the broker of the Government sels the Exchequer bills
openly.
Do you think it of great public importance, that when
the Bank wish to reduce their circulation by means of a
sale of Exchequer bills, it should be generally stated to
the public as going on, that the Bank are about to reduce
their circulation in that manner ?—I think, inasmuch as
the credit of the public is based upon the issues of the
Bank paper, and controlled by the Bank's management,
it is imp.irtant that all their great operations should be as
public as possible.
Then you clearly distinguish between a sale of Exche-
quer bills by the Bank for that purpose, and a sale of
Exchequer bills by the Bask for any other purpose ?
Certainly.
You have stated, that you consider that the Bank di-
rectors, in the tnanagement of their affairs, are generally
actuated by a view to make as much profit as they can, so
as to make the largest dividends for their proprietors ; do
you think they acted upon those principles during the panic
of 1825 ?—1 think that the Bank direAors, if they pursue
their duty, will make as large a dividend for their pro-
prietors as they can do with safety.; but the very system
leads to a disregard of safety ; Ido not mean to say that
the Bank directors have been governed by any thing cor-
rupt, but their system leads to their employing the money
in their hands in a manner to make the largest dividend,
regardless of rules essential to be observed for the public

Interest.
Do you conceive that the Bank, during the panic of
1823, had reftrenee to upholding the public credit of the
country more than their own immediate profit or advan-
taoe ?-1. believe that nobody ever described the conduct of
the Bank in 1825 as well d 11-. Tierney.My own opinion is
this, that having set the house on fire by their mismanage-
ment, they then did all they could to extinguish the flames,
in order to prevent its destroying themselves.
Upon what grounds do you consider that the Bank were
greatly instrumental in causing that panic in 1825 ?—I

want more information, but as it is, i have pretty strong
grounds ; in the firs t place lam fortified by the fact of
every body who is held to be of authority unconnected
vi h the Bank entertaining the same opinion ; in the next
place, it was obvious to us all that the Bink, when the
world was mad, and all sorts of ridiculous speculations
were entered into, instead of discouraging them and pulling
up with a gentle curb, rode with a spur ; they issued their
notes upon mortgage, they advanced their notes upon
stock, they had previously advanced very largely to
the Government to enable them to reduce the rate of

interest, and also were making large payments upon the
dead weight scheme. Such was their course. At a time
when they ought to have anticipated the effect of so large
an issue in every shape and form, they kept on increasing
their issue obviously in the ways I have stated, till their
own credit was endangered, and then it is very true they
pulled up with a vengeance.
Are you aware that, notwithstanding the dislike you
have expressed to be entertained among the mercnants and
bankers of the city of London, this committee have had
several merchants and hankers examined before them, and
that they have never hesitated to speak out fearless), their
opinion with respect to the management of the Bank ?
—I do nut know how 1 am to be aware how they have

spoken out. I have heard that several gentlemen have
been examined, but I cannot tell how they have spoken.
As banks of issue gain very large profits by the privi-
lege of issue, is not this profit arising from the privilege of
issue a fair subject of taxation ?—I should think so, cer-
tainly.
In answering that question, what do you mean by the
privilege of issuing, is it not a -natty al right?—lt is a pri-
vilege; I should think it is allowed by Act of Parliament.
Is not the system of country banking now what may be
called free ?—Yes, free to a certain extent ; it is not en-
tirely free, because they cannot have more than six part-
ners within 63 miles of London.
The Bank of England has always paid for this privi-
lege on the renewal of its charter, why should not indivi-
duals pay for the privilege also?—lf it is intended to ask
me whether they ought to pay beyond the amount of tax-
ation they are subject to, I should have considerable doubt
about it, because my own impression is, that the profits of
safe banking, which are dependent in a great degree :mon
an issue of notes, are very moderate ; it managed safely,
must necessarily be moderate ; just in proportion as bankers
become speculators to make large profits, so in proportion
are they unsafe; a safe system of banking must necessarily
be ode of very moderate profit.
Are you of opinion that if the establishment of a single
Bank could be rendered by any legislation compatible with
the existing interest of country bankers, the profit to be
derived from taxing it for the privilege of issuing notes,
would be a sufficient reason for the establishment of such
a system of monopoly ?—I have not so considered that
question, as to be able to answer it in the affirmative.
Have you ever considered upon whom the tax would
fall in such a case, that is, in the case of a perfect mono-
puly, and that monopoly being very heavily taxed ?—lt
would fall upon the public ; but if it was increased too
much, one of the first evils that would be consequent upon
it is, that they would be induced to go into bad banking.
Are you not of opinion that if the. Bank charter is re•
'Jewett the Government ought to derive a very considerable
sum from that renewal I—Clearly so; but I hope the at-