The Sun.
London, England, 1857-01-27 00:00:00

Tin BANK CHARTER

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TO ROBERT GEIMSHA.W, ESQ., J.P., D.L , PRESIDENT OF
THE 'BELFAST CHAMBER OF COMMERCE ; AND THOMAS
M'CLURE, ESQ., J.P.
Gentlemen,—As the Chamber of Commerce have done
themselves the honour of appointing you to represent their
interests at the Conference of the " Society for I's:moting
the Amendment of the Law," to be held, in London, on
the 28th and 29th instant, and as one of the questions to
be considered is the " Law of Banking," I take tlyp liberty
of calling your attention to a few facts connected with the
Bank Charter of 1814.
Under the present law the rate of discounts depends on
the state of the atmosphere, and upon many events equally
unstable. This is a startling assertion : it is, nevertheless,
too true; and I have only to refer you to a very recent cir-
clunstance in confirmation :—What was the position of the
money market immediately before a late arrival of the
James Baines from Australia, and what was it after her
appearance, along with one or two other vessels, bringing
in a supply of about a couple of millions or so of gold ?
_ Why, a change from alarm, with discounts approaching 8
per cent., to a return of comparative confidence, with dis-
counts at 6 per cent., and all, forsooth, because the wind
changed, and brought in a timely supply of gold ! I would
ask—Does, or can commerce get fair play under such a
ridiculous banking system as this?
Evon to some of our establishments in Belfast the
difference in discounts here indicated would amount to
a very serious item • but When extended over a nation
whose circulation of bills of exchange has been reckoned,
by experienced statists, at upwards of 6, 0,030,000/. ster-
ling, how great an incubus has the commerce of the country
to bear ! The advocates. of the present law may try to
deceive, by insisting that the rapid advanceof commerce,
of late years, is the best proof of its souudness. But this
is mere sophistry. The trade of the country has expanded
in spite of it, thanks to free trade, the discovery of gold in
Australia and California, and the indomitable industry
and superiorbusiness qualifications of the British merchant
The Bank Charter curtails the circulation when the

supply of gold diminishes, and expands it when gold in:
creases; thus acting in an inverse ratio to the requirements
of trade.

The Bank Charter deprives the Bank of England note
of legal tender in Ireland, and the Bank of Ireland note
of legal tender in Great Britain; thus crippling commerce
to a most serious extent.

The Bank Charter restricts the issue of notes in Eng-
land below 5/. ; thus offering a premium to the people to
hoard up gold ,to an enormous extent; to the great lessen.
ing of the supply in the coffers of the parent Bank.
The Bank Charter obliges an immense quantity of gold
to lie idle and unproductive, to the great loss of the na-
tion, and detriment to every branch of industry.
The Bank Charter besides giving the power to the Bank
of England, -or arbitrarily regulating the state of the
money market, gives it many other exclusive privileies
which are dangerous to the true prosperity of trade. t
The Bank Charter prohibits the establishment of addi-
tional Banks of Issue, under any circumstances, even if
40s. in the I/., in hard specie, were deposited in lieu of
every paper note issued.
The Bank Charter was framed to suit the trade of 1844,
when the value of the imports and exports of the country
alone were 80 per cent. less than they are now.
The Bank Charter thus assumes that a circulation of
38,000,00 J/. to 40,000,0001. sterling will suit a trade,
valued by imports and exports alone at 250,030,0031. ster-
ling, as well as did one of only 140,000,0001. sterling.
The Bank Charter was framed ou q. Protectionist, or
anti-Free-Trade principle, whereas the British Government
and nation have, almost to a man, embraced the principles
of "Free Trade." Since its establishment, discounts have
been constantly fluctuating from 2 to 8 per cent., whereas,
for 150 years previously, the Bank rate of discount never
advanced above 5 per cent., except for a few months in
1839.

These, gentlemen, are only a few of the leading objec-
tions to the present Charter : were I to enter more into
detail, I would only weary and harass you in your delibe-
rations.

In seeking any alterations, however, I would be sorry to
advocate any other doctrine than that of the convertibi-
lity of the bank-note, which should be retained, as it is
now, a fundamental principle.
The following amendments appear, in my humble
judgment, to be primarily necessary, in order to bring the
Charter into unison as much as possible with Free-Trade
principles :-
Ist —That all existing privileges enjoyed by the Banks of
England and. Ireland be abolished.

241—That the convertibility of the note be retained,
founded upon a basis of one-half to three-fourths of the
amount being lodged, either in specie or other approved
neg..tiable security.
3d—That all other restrictions upon the quantity of
notes issued, and the value of the.note, be rescinded, leav-
ing them to be regulated by the,tottural law of supply and
demand. In order to check any over supply and, conse-
quently, too low a rate of discount, some parties advocate
restricting banks to a minimum rate of discount of 4 per
cent.; but this would be a gross violation of the principle
of Free Trade. I would be sorry, however, to see discounts
range below 4 per cent., as that rate is quite low enough
for all legitimate commercial transactions, and any lower
terms offer a premium to speculation and encourage over-
trading.
4th—That Bank of England and Bank of Ireland notes
be made legal tender throughout the United Kingdom. ,
sth—That the possibility of a deficiency of the legal ten-
der, arising from the Bank of England or Ireland note
ceasing to be a legal tender, when these banks cease to pay
in gold, be provided for by Government.
6th—That the banking and issue departments of the
bank be amalgamated as before.
With alterations similar to these, it might bo well, also,
to combine that of making directors and officials liable to
criminal prosecution, in cases of irregularity similar to
those for which the past year has been so famous.
I would not have presumed to address you, on this
occasion, had it not been for the feeling evinced at the
annual meeting of the Chamber of Commerce, on Thurs-
day last, by the President, and also by Mr. William Dun-
Tulle, when I brought this matter before the Chamber.
As the question is to be discussed at the approaching
conference in London, it was considered by those gentle.
men more advisable for me to address you on the subject
than to bring any specific motion before the Chamber at
that time.

All the subject; to be brought before you are of a most
important character, and I have no doubt will be considered
by you in a comprehensive and enlightened spirit, worthy
of the important commercial town you represent, which
indeed has already recently immortalised itself by its phi-
lanthropioadvocacy of the unselfish and equitable principle
of direct, in preference to indirect, taxation.
My own impressions are at present in favour of restrict-
ing the issue of notes to one bank, which we may call a
" National Bank," subject to the control of Parliament.
Any joint-stock company or other parties wishing to esta-
blish a bank could supply themselves with this national
paper, on payment of satisfactory security, in specie
or other convertible property in lieu thereof, receiving
from the Bank of Issue a certain premium for circulating
the notes.

This National Bank should be confined to ono of issue
and deposit alone, with the liberty of lending, which their
immense receipts, in lieu of notes, would enable them to
do, most profitably.
The profits of the Bank, which would be large, and in-
creasing every year, could be devoted either to paying off
the National Debt, or lightening the public expenditure.
The public mind is not yet, however, in favour of such
an important monetary revolution as this, and it is useless
to advocate its adoption at present.—l am, Gentlemen,
your most obedient servant,
Belfast, Jan. 20, 1857.

JOHN SEED.

LLOYD'S SHIPPING.--(This Day.)

LONDON. Jan. 27.—Wind this day at noos, N.E.—
Moderate breeze and fine weather.
PLYMOUTH, Jan. 26.—Wind N.E.—Arrived—H.M.Str.
Simoom, from Portsmouth, for Queenstown; H.M.S. De-
vastation, Portsmouth; Portia, London. for the Cape of
Good Hope. Sailed—Marina, for Sierra Leone; Eliza-
beth Ellen, New York.
DARTMOUTH, Jan. 26.--Wind N.E.—Arrived—Maria"
and Elizabeth, from Lisbon, for Vlaardingon, leaky.
Sailed—Avalanche, for China.
DOVER, Jan. 26.—Wind N. to N.E —Sailed.—St. An-
tonino, for Naples, after rep drine,a.
RAMSGATE, Jan. 26.—Wind N.E.—Sailed—Bon Je-
sus, for Havana.
JERSEY, Jan. 25.—Wind E.—Arrived—Ocean, from
La Poila.

GUERNSEY, Jan. 25.—Wind N.W.—Sailed—Teazer, for
Corunna. _

LIVERPOOL, Jan. 26.—The Atnea Stebson, which ar-
rived here yesterday shipped a heavy sea on the 7th inst•,
and lost one man overboard, stove boats, &c.
MILFORD, Jan. 26.—The sloop Speculator, of Exeter,
from Saunderfoot to Pembroke dock, missed stays yester-
day when off the Crow Rock, drove on the Crow Toe and
sunk ; master drowned.
MALDON, Jan. 26.—The Broadwood, of Blyth, came
in contact with the Mystery Park, of Mystiey, at the
mouth of the basin, and received considerable damage.

RLECTEIO TELEGII&Ph.)
LIVERPOOL, Tuesday Morning.
. _

Wind N.N.E.

Sailed—William Fairbairn, for Calcutta 2 • St. Helena
and Eagle, Bombay ; Olive Branch, Trinidad• ' Black Cat,
Lisbon ; Neptune, Curacoa ; Mechens, Ibrail ; Die Drei
Onkel, Bayonne ; Hannah, Lisbon ; Brevet, Valparaiso.

(BY SUBMARINE AND BILITy.,II TELEGRAPH.)
DEAL, Tuesday, 9.42 a.m.

Wind N.N.E., strong.
Anchored—Julindur, from London, for Sierra Leone.
Passed, the 26th—Maria Minalla, from London, for
Oporto ; Sophia, London, St. Thomas ; Isis, London,
Constantinople.

MARKET NEW '.---(This ay )

HAY MARKETS

SMITHFIELD.—Meadow hay, 2/ 103 to 4/ 4s ; clover do.,
:3/ lOs to 5/ Os; and straw, 1/ 4s to 1/ 9s per load.
Trade rather dull.
CUMBERLAND. —Meadow hay, 2/ 153 to 4/ 4s ; clover
do., 3/ 10s to 5/ Os ; and straw, 1/ 4s to 1/. 9s per load,
Supply moderate and trilde steady.
WHITECHAPEL.—Meadow hay, 2/ 12s tc 4/ 4s ; clover
do., 3/ lOs to Si 5s ; and straw, 1/ 4s to 11 9s per load.
Trade dull.