The Sun.
London, England, 1832-10-19 00:00:00

[on of banks of issue," for instance, he says,

" This question (3866.) having been put to Mr. Tooke
(who is well known by his thoughts on high and low
prices, and his tracts on the currency, as well as his previous
examinations before the Bullion and Agricultuaal Cotsi•
mittees,) ' Is it your opinion that it would he advisable to
establish other banks of issue in the metropolis, besides the
Bank of England ?' he gave this answer : Ido not see
any more reason for the establishment of two or more
banks for the coining of paper for the metropolis, than I
should for the establishment of two or more mints for the
coining of the metals : I conceive that there is no possible
advantage to set against the probable inconvenience.
" The value of the answer may be estimated by an-
other question; namely, If all the payments made in the
city of London were to be in gold coin, would one Mint
be sufficient? and if all such payments were to be so
made, would all the gold in the world be sufficient for
them?

" Mr. Tooke's answer takes a false position, and over-
looks the progress of things. Coin is a convenience ; bills
of exchange are a convenience ; cash notes are a conve •
nience, and have no more resemblance to coin than bills
of exchange have to commodities. The one represents
the exchangeable value of coin, the other represents the
exchangeable value of commodities ; and if this exchange-
able value be truly represented, it is a matter of no im-
portance by whom bills of exchange are drawn, or by
what number of bsnks cash notes are issued ; but it is of
paramount importance that the convenience and benefit of
banking should be allowed to extend themselves to the
remotest corners of the kingdom, which they would do
if the exclusive privilege of the Bank of England did not
restrain them.

" Mr. Tooke's answer also overlooks the nature of a
hanker's note, which, as already said, is in the nature
of a receipt for so much gold, to be always forthcoming
upon the demand of the depositor : not that gold is always
deposited with a banker ; but no banker will issue a note
unless he receives value for it estimated in gold ; nor is
gold expected to be required for it, nor will it be required
for it, unless the exchangeable value of the notes of such
banker shall become less than the exchangeable value of
gold, which it is his business to avoid."
In the conclusion at which Mr. Mundell
arrives, that the Bank has abused its monopoly,
we cordially concur, and trust that the time is
arrived when its extent will be greatly reduced,
if it be not entirely done away with. There are
many practical men who appear to think that
conveniences would attend its being the only
bank of issue in London. We have already
expressed our opinion that no inconvenience
would attend the existence of more than one,
any more than there does in the country (we are
aware that the circumstances are not quite pa-
rallel), but provided that the limitation in the
number of partners in other banks were entirely
removed, and the banking trade otherwise placed
upon the footing it is in Scotland, we should be
content for the present to make, what we cannot
help thinking, a sacrifice of principle. Indeed,
were the first great step taken, the competition
which would arise would probably effect most of
the other changes absolutely necessary to the
security of depositors.