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

MEMORANDUM.

With reference to the action of the Bank prior
to the year 1819, and subsequent to that period,
the Governor begs to submit the following memo-
randum for the consideration of the Committee :

The reports of the Committees of Parliament of
1797, 1810, and 1819, are before the public.
Whatever faults were committed prior to those re-
spective periods, they were more the acts of the
Government than the Bank, by forcing upon the
latter Exchequer bills, in opposition to the repeated
remonstrances of the Directors of the Bank.

By the resolution of the House of Commons of
1819, the Bank were required, within four years,
to pay off in gold the amount of their one.pound
notes then in circulation (about 7,500,000); fur-
ther, to provide the coin for paying off the country
small notes in 1825 (about 7 or 8,000,000 more);
in addition to which the necessity was imposed of
providing the requisite surplus bullion for insuring
the convertibility of all their liabilities; which addi-
tion of bullion to their then stock could not he esti-
mated at less than 5,000,000, making, in the aggre-
gate, 20,000,000 of gold as necessary to be procured
from foreign countries within the space of four years
from 1819.

That supply of gold could only be purchased by
reduced prices of commodities, thesßank withdraw-
ing a given amount of securities in the first instance,
the notes for which might be re-issued in paymentof
the gold as imported. The low prices and general
state of trade from 1819 to 1821, and the with-
drawal of the Bank's securities, enabled the Bask
to cancel their small notes in the latter year; and
in the following (1822), three years prior to the
time fixed by Parliament, they were in a situation
to furnish the gold for paying off the country small
notes, when, without any communication with the
Bank, the Government thought proper to authorize
a continuance of the circulation of the country small
notes until 1833. The consequence of that mea-
sure was to leave in the possession of the Bank an
inordinate quantity of bullion (14,200,0001. in Ja-
nuary, 1824), and further to afford the power of ex-
tension to the country bankers' issues, which, it is
believed, were greatly extended from 1823 to 1825.
Notwithstanding that vacillation on the part of
Government in 1822, and the events which fol-
lcmed, the Bank took no measures from January,
1822, to April, 1824, to increase their circulation;
the increase at the latter period was forced from the
Bank by the increased amount of bullion held in
1824 over that of 1822.

CIRCULATION.
April, 159.1 £13,800,000( April, 1894 19,300,000
January, 18'22 11,700,000 January, 1322 19,700,000

BULLION.

Increase... ..... X 2,100,0001 Increase. ..... ...X1,600,000
being less by 500,000 than the increase of bullion.
Between January 1822 and October 1824. the
Bunk only invested in securities the amount of de-
posits which had accumulated in their possession
during that period, viz. six millions and a half; they
had in February preceding, in order to facilitate the
reduction of the Four per Cents, engaged to pay off
in October 1824 the dissentients, under a stipula-
tion that such advances should be repaid by quarterly-
payments from the Sinking Fund of 500,000/. each.
This latter engagement was made when the Bank
held an inordinate stock of bullion, and while the ex-
changes were in favour of the country; and it was
not until 18th November 1824 that any direct evi-
dence was afforded to the contrary. In consequence
of the advances made to pay the dissentients in
October 1824. the issues of the B ink were increased
in January 1825 to the extent of 1,300,0004,
which advance was the only amount of increase of
circulation with which the Bank can be charged,
but which was ithtified by the Bank then holding
an amount in bullion very near equal to out-third of
its total liabilities.

During 1825 the bullion exported from January
to November extended to seven millions, and which
of itself effected every degree of contraction through
the Bank-notes and deposits which could be reason-
ably required or endured by the public. The incon•
venienee filially sustained towards the close of that
year arose entirely from the discredit of the private
bankers' circulation, vr hich caused a demand upon
!he Bank for coin to the extent of two millions arid
a half.
Whatever charges may be made against the Bank
for investments in mortgage and dead weight dut-
ing► the period referred to, it is to be remarked that
the advance of the first did not extend to more than
half the surplus profit of the Bank, which in no way
interested the public ; and further, that neither the
amount advanced on mortgage, dead weight, or any
other securities, exceeded the deposits which had
accumulated from January 1822 to October 1824.
It is further contended that there can be no mote
eligible mode of investing a portion of the assestst,
held by the Bank than in an annuity, which is can-
stantly upon the return ; the shorter the period of
the annuity the more eligible for the Bank's object.
Since 1826 no objection has been made against
the management, except such as may have arisen
from the establishment of branch banks. .
Let the objects of those establishments be consi-
dered, as regards solidity and regulation of the paper
money, upholding upon the spot the credit of the
country banking and internal commercial in.erests,
the opening of the London market rate of interest
to the ountry capitalists, and, lastly, the increased

An ACCOUNT of the Total Amount of Salaries, Morning Money,
Gratuities, &c., paid to the Servants of the Bank in London,
and at the Bank of England Branches, and of the Number of
Persons to whom the said Amount was paid, for the Year end-
ing 29th February, 1832.
820 Clerks and Porters
39 Printers and Engravers i.£211,903 10 10
82 Clerks and Porters at the Branches

940 AYerage 2251. each.
Amount of Pensions paid in the same period:-
193 Pensioners—Average 1611. each £31,243 18 1

SECON EDITION.

SUN OFFICE, Seven o' Clock.

TUE LONDON GAZETTE

THIS EVENING.

WAR OFFICE, SEPT. 22.
ad Scots Fusilier Regiment of Foot Guards—Lieut. and Captain
the Hon. H. Montagu to be Captain and Lieutenant-Colonel, by
purchase, vice Fane, who retires ; Ensign and Lieut. the Hon.
R. T. Rowley to be Lieutenant and Captain, by purchase, vice
Montagu; Second !Lieut. R. Moorsom, from the Rifle Brigade,
to be Ensign and Lieutenant, by purchase, vice Rowley, Sept. 21.
Id Regiment oi Foot—Lieut. J. B. Kingsbury to he Captain,
without purchrse, vice Hughes, deceased; Ensign G. Bridge to
be Lieutenaut, vice Kingsbury; Gent. Cadet J. C. Handfield,
from the Royal Military College, to be Ensign, vice Bridge,
Sept. 21.
Bth Foot, J. Hilton, Gent. to be Ensign, by purchase, vice
Orme, who retires, Sept. 21.

170 i Font, Lieut. It.. Graham to be Captain, by purchase, vice
Jull, who retires; Ensign E. B. Owen to be Lieutenant, by pur-
chase, vice Graham; C. Edwards, Gent, to be Ensign, by pur-
chase, vice Owen, Sept. 21.

21st Foot—Assistant-Surgon H. N. Holden, from the Staff, to
be Assistant-Surgeon, vice Bulteel, whose appointment has not
taken place, Sept. 21._
_ .

37th.Fool—Lleut. F. Skelly to be Captain, by purchase, vice
Burrell, who retires. Ensign W. Clay to be Lieutenant, by pur-
chase, vice Skelly. P. F. Durham, Gent, to be Ensign, by pur.
chase, viac Clay, Sept. 21.
39th Foot.—Gentleman Cadet H. A. Strachan, from the Royal
Military College, to be Ensign, wsthout purchase, vice Bowles,
appointed to the Sat Foot, Dec. 21.
65thhoot.—Captain J. l'atience, from half-pay Unattached, to
be Captain, vice Edwards, who retires, Sept. 21,
70th Foot—Ensign I'. Moody to be Lieutenant, by purchase
vice Cork, who retires ; J. P. Costobadie, Gent, to be Ensign, by
purchase, vice Mooey, Sem. 21.
83d Foot, Ensign the Hon. It. Clifford to be Lieutenant, with-
out purchase, vice Bowles, deceased; Ensign F. W. Bowles,
from the 39th Foot, to be Ensign, vice Clifford, Sept. 21.
Rifle Brigade—A. Percy, Gent?. to be second Lieutenant, by
purchase, vice Moorson, appointed to the 3d Regiment of Foot
Guards, Sept. 21.