The Sun.
London, England, 1832-09-19 00:00:00

BANK OF ENGLAND.

The half-yearly meeting of the Proprietors of Bank
Stock will be held on Thursday next, and, it is believed,
the balance-sheet will he as follows

The Bank of England. Dr. By Assets. Cr.
To circulation, viz. : Pension Annuities £10,850,000
Bank-notes .........£17,100,000 Exchequer Rills
Governmen t Depo- bought 3,750,000
sits
Private ditt0......... 8,000,000 Three per Cents
------ bought

750,000

28,100,000
Surplus of assets ... 2,900,000 Government Se-
curities 17,900,000
£31,000,000 Bills discounted 2,650,000
Mortgages
City Bonds and
Loans
Gold and Silver 7,700,000

£31,000,000

On consideration of this account, and of the principles
of management stated by the Governor and Directors in
their evidence before the Committee of the House of
Commons, the securities in the hands of the Bank ought
to be 20 millions, and the bullion 10 or 11 millions, or
one-third of bullion and two-third securities ; the litter
being at the present time more than 23 millions, while the
bullion is less than eight, the Bank must be considered as
not altogether in a safe position.
The Directors seem to think, however, that as the har-
vest in the United Kingdom is abundant, and the ware-
houses already full of foreign corn, the present rates of ex-
change with foreign countries and the influx of bullion
will be maintained. It would, however, be unwise in the
Bank to abate its caution on that account. We want no
foreign corn, it is true, and the import of goods may pro-
bably not exceed the ordinary supplies ; but, considering
the armaments of the great Powers, the high state of their
public credit, and the excess of their expenditure over
their income, it seems most probable that every one of
them will be compelled to raise money by loan. In that
case the rate of interest will rise abroad, and our capi-
talists will be tempted, by the artificially low rate of in-
terest in this country, to embark their money on foreign
securities, the purchase of which will as effectually drain
this country of specie as any over imports of corn or goods.
Nor is this view of the case merely hypothetical. France
and Belgium have contracted loans already ; Holland de-
mands money, and, by the low prices of her public secu-
rities, obtains it here. In proportion to the export of
bullion from foreign countries to England, and to the loans
made in foreign countries, the rate of interest rises, the
exchanges tall, and bullion is demanded at the Bank.
The nation, as the history of the madness of 1824 and
the panic of 1825 plainly shows, smart for the incaution
and the errors of the Bank in the management of their
circulation, and it is to be expected that the Bank will, on
the present occasion, act with more than ordinary cautions
and that they will abstain from all attempts artificially to
depress the rate of interest.
The chief error committed by the Directors in the Inv
nagement of the Bank during the current quarter has been
the determination to make use of the private balances de•
posited at the Bank; in other words, to keep up the issue°
of their notes to the full amount, in defiance of the note,
rious fact that individuals have carried Bank notes to the,
Bank and deposited them on account, because they could
make no fair use of money in the market, either in die
counting bills, or in lending upon goods or securities.
The Bank has attempted to use the balances in two
ways: —the first was by advancing an increased amount
of their notes to Government, in order to make up the
deficiency of the revenue for the quarter ending sth Jr'
nuary, 1832.
The deficiencies of revenue for the four first quartet.°
have been as follow, viz.:—
On the 10th October, 1831, the deficiency was £5,385,1
sth January, 1832
bth April, 1832 5,770,w:A
sth July last 7,475,v7,
As the average or,the first three quarters, therfore, was abl,
£5,475,80u, the increased advance made by the Bank on de
ciency bills on the sth of July was £2,000,000.
When this first mode of obtaining an increased pr"
6t
failed (by the repayment of deficiency bills effected by tbe,
receipt of revenue in the quarter), the Bank began abou
the end of August to purchase Exchequer Bills in the rnerf
ket. It is supposed they have increased their stock °,
this species of security since the Ist of June from abott'
3,000 0001. to 3,750,0001.
The effect of the advance upon deficiency bills was td
render tempor'ry balances in the hands of bankers s°
others during the whole period from the sth of July to lb'
29th of August perfectly valueless, anil the Bank has bee!
endeavouring to keep the Money Market in so dangeron';
state, by resorting at the latter period to their second an
of keeping up their own profits—viz., by purchases °
Exchequer Bills.
In this way it is that the Bank interferes in the Wee,
Market, on principles destructive to private property 2°
of the public welfare. Property is interfered with, he.,
cause the Bank prevents bankers and moneyed men ftlre
making a fair and moderate use of their resources; and the
public welfare is endangered, becau.e the artificial surpl%
of money thus creited by the Bank is too often invested f
the most ruinous speculations. In short, the fortune'
bankers and private individuals, upon whose steadiue:
the industry of the country inu.t rest for support, are ner,
dermined, merely that the Bank Directors and the holde
of Bank Stock may make up their annual dividend of

per cent. vaelf
It seems quite obvious to every one, except to the
Directors, that the following course ought to have been ro
sued by the Bank in the current quarter—namely, to
advanced to Governmenton the sth July, five millions °° e
instead of 7,475,0001. on the deficiency bills, and to ~
left the Government to supply the remainder, by borrovii
in the market. There is no doubt that the banker' 3,?(t:
private individuals would have eagerly tendered the eIP,I
balance—viz., 2,475+0001. at three per cent. interest, the
the more readily it overnment, calculating beforeba°d r
necessity of revenue during the quarter, had specified P°
ticular dates for repayment of these temporary advance'', of
If this course had been followed, money, insteto„
being rendered artificially abundant, would have e.os'oo
mantled an interest perhaps of three per cent. ; and 1,0
the other hand, no want of fair accommodation O,
have existed, as the Bank is always at hand, either V' or
count bills of exchange, or to make any advances to
vernment which individuals thought proper to decline' °t
The purchase of Exchequer Bills by the Bank. a'tbe.
the end of August, was an odious interference with
fair use of private capital. When merchants cease p,
offer to the Bank good bills for discount, and when oit
chequer Bills command a respectable premium i° Pdl
Money Market, the Bank of England has no right t° for
fit '
forth forced issues of notes iv order to obtain pr°--, oolt
their proprietors. Exchequer Bills pay an interest 0
21. ss. per cent. per annum; they already contras°,l`
el'
premium of 13s. or 14s. per cent., and the Bank, in
mencing and prosecuting their purchases in that I°,o/1
any other security, when the rate of interest is 3rfer(4
much lower here than in any other country, i"te,
with the property of individuals in a manner r • ""
private interests and destructive to the prblic good.
The Bank of England is of the tribe of Ishmael' pt
sword is against every capitalist ; it goes beyond s-II f pr
limits of control over any presumed combinations ° of'
vat' capitalists ; and, as its operations create s° 14(1,
derangement and so vicious an employment of cal"7,ooel
to force it out of home employment into the most rupit3'
foreign enterprises, it is the enemy, not more of ci";ese:'
lists and moneyed men, than of the industrious 4,0 e
The Directors of the Bank and the holders of 13 tuki,'l"f'l
may complain of opposition, hut they must not be ~
prised at the general hostility with which they
countered when the discussions upon the renewal cor,'
Charter are resumed in the eatly part of next Yes
Morning Paper. „ ,

IMPORTANT TO THE RUM TRADE' nofriii°;
important information contained in the following c-tifyi,
nication front Lord SANDON, wi 1 prove highly grj
to the various interests connected with the trade °f ,r
The Treasury order referred to has been received "SO
Custom-hou,e, bearing dare the Sth inst. ; thus a'nf
a permanent, if not perpetual, immunity, insteado;FtF,
precarious and annually terminable privilege of o°ooo
from payment of duty on the whole of the natural
and evaporation on rum whilst in boNnd. ,1 1E5%8
orton, Sept•
" MY DEAR have the pleasure of CO t,
you on the announcement I have this morning recei*ocie,lit
o
the Treasury, that their Lordships consent to put the
ntheivr,
security warehouses of Liverpool, in regard to nun, „
ing of retaining, "until farther orders," the privilef I
they have hitherto enjoyed only in virtue of an anntla'ntnesl
I have again to thank you for the information corn. vie
by you, which so largely contributed towards enabling

obtain this improvement from their Lordships.
_ailvvemrp:op,ol xgie.Aolnierivtieuomnn..e,,Emsqy dear Sir, yours, v,e,rsyAtrsuplYforLo
(011,0°
CIVILITY.—A young gentleman was i 47,
asleep in George-street, at an unseasonable hour's be!!/
brought before the Magistrate, he confessed 0
s~itY'o` i
--
been tipsy. " Young man, you should be very
"1 am sorry. ' " You must be fined."—"an
the money, " I am fined."—American Paper. f