The Sun.
London, England, 1857-01-30 00:00:00

THE BANK OF :FRANCE.

The Moniteur of yesterday, alluding to remarks
made by some of the Paris journals as to contem-
plated changes in the organisation of the Bank of
France, and particularly on the increase of its capi-
tal, publishes. a note, containing the views of the
Emperor Napoleon I. which was sent to the Bank
of France in 18W by order of his Majesty. The
following is a summary of its contents. After
stating that the original capital of the bank, which,
was fixed by the law of An 8 at 30 millions, had
been successively increased to 43 and to 90 millions)
it goes on to say :
"The capital was not intendbd to be used la
discount transactions, which - should be entirolf
carried on by means of its notes. Its capital ought
to remain entirely unconnected with discount opera.
tinny. The formation of the capital of a bank is a pre-
liminary act as distinct from its activity as a privilege',
discounting establishment as the dspoit of a sum 01
caution-money by a person employed is from his manage-
meat, properly so called. The condition of furnishing s
capital is only imposed on those who found a bank as
security for those who take its notes against any error
or imprudent conduct on the part of its managers. t
bank which only issues notes in exchange for good s
at two or three months' date at the utmost ought t°,
have constantly in hand a sum in such securities at leas;
equal to the notes it has issued, and thus be
is
situation to withdraw all its notes from circulsu
in three months, by the receipt of tho am
" ot
iB
of the bills it has in hand, without isterfering
the slightest way with its capital. 'Die capital farnishea
by the shareholders of a bank being, strictly spealdagt
only a kind of caution money given to the public, it
might be almost said that a bank which had acquired ib
reputation for infallibility would not even require to
touch its capital for purposes of discount, its notes being
quite sufficient for that purpose."
The note then alludes to the formation of die
Bank of England in 1692 with a capital of 24
millions, and states that although its first act
was to lead almost the whole of thaC capital to
the Royal treasury of William 111., its founder,
yet it carried on with success its discount ope
rations from the very first moment of its being
established by means of its notes. It next
alludes to the care and attention necessary in
carrying on discount operations, and the strict
attention required in the investigation of the Sol-
vency of the different parties whose names are
affixed to the bills presented for discount. The
document concludes as follows :

"The capital of a bank should, by the form of its in'
vestment, remain, so to speak, always immoveable, ill
order that no su.piti,in should ever be felt of its having
been diminished ; it ought at the i-aine time to remain 30
a state to be irnwediately available, so as to be ready to
cover any I,:sses which might wise on bills. A part of
this capital should fern] a reserve in bullion, and that
part can produce no interest: The best use that
could be made of the remainder appearu to be its iv'
vestment in securities of the public debt of the country,
negotiable in tr,e market; strove such an ivestment unite;
to the advanta,::,e of securing a favourable and regularly
paid interest, that of being immediately available whey
required by tl e bank ; and although this latter even'
tuality could never happen in a bank that has only
issued its .cotes in exchange for good discountable se'
entities, yet prudence always requires the case to be
nrovided for. A bank ought to maintain itself in suell
a. state as to be able to wind up its affairs at any
moment ; in the first place, with respect to the holders
of its notes, by the realisation of the bills which It
has in hand ; and next, with respect to its shareholders
by the di,tribution to each of them of the amount 01
capital which he has furnished. In order never to
expire it ought to be able .to come to an end at and
Klement."

ELECTION OF COMMON SERGEANT.

The Court of Common Council, yesterday, proceeded
to the election of a Common Sergeant—the candidates
for the office being Mr. Locke, Mr. Bodkin, Mr. T;
Chambers, M.P., Sir W. W. Riudell, Bart., M.P., and '
Mr. Pulling. The salary has been fixed at 1,500/. Per
annum.
The following is the result of the first poll :
For Mr. Locke 4B
~ Mr. Bodkin
„ Mr. Chambers 9l
„ Sr W. Riddell 77
„ Mr. Pulling . l5
Mr. Chambers and Sir W. Riddell having the largest

number of votes,
The Lord Mayor called upon the Cuurt to elect on°
of these gehtletutn to the office.
After the poll had been kept open an hour the nun
berB were—
For Mr. Chambers lO2
Fur Sir W. Riddell B9

Majority for Mr. Chambers... 13
The announcement was received with loud cheers.