The Sun.
London, England, 1832-09-21 00:00:00

that the Bald: did not discount hills to any large amount,
but the Directors issued their notes upon mortgage, and
to Government through the dead weight ; but the proba-
bility is, that their actual discount of bills at that time was
rather less than usual, as it follows that the more plentiful
money is made the more will bills get into private hands.
Do you find that an advance to Government always has
the effect of increasing the amount of hank-notes in circu-
lation to the extent of that advance ?—Not always to the
same extent.

Is it not so, unless in some other mode a contraction
takes place ? chat system of contraction has been touch
more acted upon in the last three years than it was pre-
viously, by endeavouring to provide the means of con-
traction against the advance and issues which the Bank
!nay find it necessary to make to the Government. I
particularly allude to the advance which is made at the
time of the payment of the dividends ; the Bank have
lately always endeavoured to get its notes out as far they
prudently could towards the close of the qaarter, by ad-
vance on loans repayable at the period when the money for
the dividends is paid to the public.
Has not some inconvenience been generally felt from the
large sum required fur the payment of the dividends at
four periods in the year ?—I am not aware of any incon-
venience; it has rendered money cheap at the time.
Do you think that any practical convenience would
arise from an arrangement by which a portion of the public
stocks should have the dividends upon them payable at
other periods intermediate between the sth of January
and the sth of April ?—Such an arrangement would do
that in a more direct way which is now done by the Bank
by the plan before named, and therefore I should think it
would be a convenient system.
In your experience as a banker, alluding to the period
before the Bank made this regulation, had not your house
sometimes before the quarter-day been obliged to make
sacrifices in order to raise money?—Very frequently.
Now that necessity is entirely done away ?—Entirely.
And the bankers are enabled to be as liberal a fortnight
before quarter-day as at any other time ?—Just in the
same degree.
It is therefore a regulation highly beneficial to the
public ?—lt is most beneficial.
Does not the Bank by those means relieve those persons
who otherwise would call upon the private bankers for as-
sistance ?—Yes, in part. They likewise, by relieving the
circulation, generally enable the private bankers to do that
with ease which they would otherwise have to do for their
customers, at the cost probably of raising money at a high
rate of interest.

You have Said that the system of the Bank, and of
banking generally, does not require any vi ry materi.l al.
teration ; do you conceive that we are at any time safe
from a recurrence of the events of 1525, when it is noto-
rious ►hat the Bank was very nearly drained of cash ?—I
am not aware of the possibility of framing any check
upon theyianagement of the Bank, so as to prevent alto•
getter 'tbe chance of its recurrence; much must always
depend.upoh ilremanagement of the Bank, as must be the
case with oily other public bodies in whose hands the go-
vernment of the circulation remains.

That is a danger you think necessai ily incident to the
system of banking?—Yes.

TO BE CONTINUED.