The Sun.
London, England, 1832-09-06 00:00:00

consequence has been that contraction of batik paper 11
;n the London market which has raised the rate of
it from three per cent., which I believe ex-
isted before the demand, to four per cent.
Then the sudden demand will ticcoUnt for the
derangement of your proportion of the quantity of
the precious metals which you hold, as compared
to the securities which you hold, which you stated
it to be your endeavour generally to regulate by
keeping it at one-third 2—The Bank would now
have, I think, upwartls of 6,000,000 in their pos-
session, had it not been for this demand.
You stated 'hat you considered the Bank ought
to have two-thirds of securities; ad one-third of
bullion; is that proportion altered by the circum-
stances to which you have alluded ?—I wish the
Committee to understand, that when I use the
terms two-thirds and one-third, I meant to allude to
the period of a full currency, prior to the commence=
ment of a demand; the progress of a demand re-
duces the proportions ; but when the demand ceases,
and the exchanges reassume a favourable character,
then we are in a progressive state to reassume our
proportions.
What was the amount of hellion of which the
Bank was possessed en the Ist of May ?—I cannot
state without reference; Bth May, 6,090,0001.;
29th May, 5,320,0001.; purchase between those
periods about (say 700,0001.).
In consequence of the market rate of interest
having, risen to 4 per cent., has there been an in-
creased demand upon the Bank for discount within
the last fortnight 2—No, not to any extent.
Contemporaneously with the internal demand for
gold within the last ten days or fortnight, of which j
you spoke, was there any external demand or the
reverse ?—A very large import of gold, and the
importa•ion now is upon a very extensive scale.
Is that a natural influx, or et all forced 2—No, it
is a natural influx at a very high exchange.
Do you suppose the influx you have mentioned
'o have nearly counterbalanced the outgoing P—Not
yet; but I think the bullion held by the Bank subse-
quent to the drain, was about 5,000,0001., arid since
the drain has ceased it has accumulated to
5,500,0001.
What was it before the drain began ?—About
6,500,0001.
D,) you suppose that any portion of that internal
drain is returning, or has returned ?—I believe none
has returned yet.
Does it now continue 2—No.
How long has it ceased P—l think about a week.
During the last ten days or fortnight have you
not refused to exchange your notes for gold 2—We
refused, for a few days, to give notes for gold, from
an apprehension of the time that it would take the
clerks to exchange them ; all the gold that comes
into the Bank from individuals is forced to be
weighed and counted, and therefore it takes as much
time to receive it as to pay it.
Do you weigh it in a lump?—We weight it out
,o the public in that form, if they desire it; but we
never receive it from the public in that form.
How much can you pay in a day over the counter,
without weighing it ?—I should think about
200,000/. to individuals; but the cashier can anaaer
that better than I can.
Is that by counting every sovereign 2—Counting
the s)vereigns.
If it is demanded in large quantities by bankers,
would it not be delivered in hags 2—Certainly.
In that case you can pay a much larger amount
than 200,0001. a day 2—Certainly ; almost any sum.
It has been asserted that the Bank do not afford
facilities to persons for the purpose of exchanging
their notes into gold ; is there any foundation for
that assertion P—l think not.
What is the largest amount that you ever remem-
ber at any period being paid by the Bank in gold
in exchange for its notes, in one day 2-1 cannot
answer that question without reference. During the
recent applications, 307,000/. if part be paid by
weight.

•ARGEST AMOUNT OP GOLD COIN THAT CAN BE PAID IN

ONE DAY BY ABOUT 25 CLERKS AT TIIF. BANK, IF
COUNTED BY nAND BY THE PUBLIC, ABOUT 50,000/.
When large sums are applied for• by bankers, or
others, the practice of the tellers is to count 25 sove-
reigns and put them into one scale, then 25 more into
the other state, and if they balance they repeat the
operation until there are 200 in each scale. In this
way 1,000 sovereigns can be counted in a few mi-
nutes ; and this method was generally adopted on the
12th, 14th, 15th, 16th, 17th, and 18th of May.
I❑ the above manner 307,000/. were paid to the
bankers and others on the 14th Slay, 1831, irre-
spective of sums received from tl,e bankers and the
public (amounting to 14,0001.) by about 25 clerks.
J. RIPPON, Chief Cashier.
Bank of England, June 4, 1832.
Does the amount that can be taken out in a day
by payments of what is called " over the counter,"
hear any proportion to what occasionally goes out
'a large masses to bankers or merchants ?—I should
think not; bankers and merchants receive the whole
by weight, for the purpose of saving time.
If any dealer in foreign exchanges, or any person
trading with foreign countries, wants a large sum,
one, two, or three hundred thousand pounds, to send
abroad, can he not take it out in a quarter of an
hour ?—ln a very short time.
In moments of what you term political discredit,
have you found your deposits operated upon by
large drafts ?—No.
Have you found that recently ?—No.
Have the deposits usually kept about the same
average amount ?—They appear so.
Has there been any diminution contemporaneous
with the late drain ?—I have not observed it.
In the year 1825 was there any diminution in the
amount of the deposits ?—I believe there was an
increase.

Were the deposits considerable before that pe-
riod ?—They have considerably increased since 1825.
Has that increase of deposits with the Bank
since 1825 arisen from the want of credit in private
bafikers, or has the Bank laid itself out more to oh-
tam!' private customers ?—I do not believe the Bank
has by its own acts taken any particular steps to in-
crease the deposit accounts; very few facilities have
been given by them for the purpose of increasing the
amount ; nor do I believe that such facilities have
had the effect of increasing the accounts materially.

Has not the practice of keeping private accounts
with the Bank been greatly enlarged in the last few
years ?—Yes.
Has not that been accompanied with some faci-
lities afforded to private depositors which did not
exist in the usual practice of the Bank before ?--
Some few faclties may have been given, but the
Bank give credit to no one ; they have never made
any advance, for any person whatever, out of theit
usual course.

What is the rature of the increased facilities to
which you alluded ?—Without reference I cannot
state. I believe they receive dividends upon stock
by power of attorney, for p, rsons who keep accounts
with them, which they did not before; but that arose,
I believe, out of the arrangement of the branch
banks, for the customers of the branch banks.
Before 1825, if a person kept a private account
with the Bank, would they exchange Exchequer Bills
for him ?—I cannot answer that without reference.
Is not the Bank in the habit of advancing money
upon the security of Bank Stock ?—No.
Is there not a difference between the Bank and
private bankers in this respect, that the private
banker permits a customer to pay a bill with the
money received the same day, whereas the Bank of
England does not permit that ; must not the money
remain 24 hours in the Bank ? I am not personally
acquainted with the working of the drawing-office.
Do you know whether any alteration was made
in the practice of the Bank in that respect at the
period when it appears that the drawing accounts
increased ?—I do not.

Do tle Bunk allow any party that has any ac•
count with them ever to overdraw his account ?

Never.

Do they allow any interest on deposits ?—No.
Do ti on now pay bills without being advised in
writing''—l do not know, but .1 will furni,ll he
Committee with a statement of all the changes of