The Sun.
London, England, 1828-03-20 00:00:00

BANK OF ENGLAND.

MEETING-(THIS DAY)

GENERAL COURT OF DIRECTORS OF THE
BANK OF ENGLAND.

To-day a General Half-yearly Court of the Direc-
tors and Stockholders of the Bank of England met
to consider of a Dividend.
The minutes of the last Court were read.
The GOVERNOR then stated, that the Court of
Directors having considered the state of the
Bank accounts, were of opinion, should it meet the
approbation of the Court, that a dividend might be
made of 4/, per cent. for the half yearly dividends on
sth April next.
Mr. YOUNG, before the question was put to the
Court for consideration, begged leave to claim some
information. Information was of the greatest import-
ance on an occasion of meeting to consider of a divi-
dend, therefore he would trouble the Chairman now
to do that which he had done in the most explicit,
gentlemanly, and honourable way on former occa-
sions. The first question was, as to the amount of
the Issue of Bank Notes at this time.
The GOVERNOR replied, about twenty millions,
and a half, in which was included, for the service of
the Branch Banks, a suns not exceeding six hundred
thousand pounds.
Mr. YOUNG inquired if this included the whole
issue for which the Bank had received value upon
deposits, as well us on all sums that had been re-
ceived.

The GOVERNOR said, it included all that was

employed in the service of the country. There was
a balance in this house, as there was in the tills of
every Bank in the kingdom, which occasionally
fluctuated a little : but in a well-regulated house—
such as he hoped he might take the liberty of
describing the Bank of England—those balances
very seldom went to any length—they floated easily
and regularly, which every commercial man must
know.
Mr. YOUNG was then to consider that the balance
remaining in the hands of the Directors was not in-
chided in the amount of issue that had been stated?
The GovERNoR said certainly not, because all
Bankers were under the necessity of having a
balance ultra their circulation.
Mr. YOUNG then begged to be informed whether
the notice, purporting to have been given at Leeds,
that the Bank of England would not advance a lar-
ger sum to the Branch Bank, than the deposits they
received, had been given to the different places at
which Branch Banks were established?
The GOVERNOR observed that a great deal of
discontent, he was sorry to say, had been expressed
on the part of country bankers, under a supposition
of affront, or an attempt to throw disrespect on them
by the Directors. He could say that nothing on
earth was so far from the feelings of the Directors
of the Bank of England, as any measure of that
sort. He would explain the history of this house.
Every member of the Court knew that the Bank
of England would not honour an account unless
there were effects: that they would not honour a
draft, provided the effects were not adequate to meet
the amount, notwithstanding at the same moment
the largest amount of cheques of the first houses in
London might he carried in. The magnitude of its
dealings required the adoption of that rule, and a
rigid adherence to it. It did not allow them to
tread in the steps of other Banks, (he meant no
disrespect) and when individuals came to consider
what the Bank had done for the country, he thought
instead of the Directors being found fault with, it
would be ascertained that they had done all that
could be desired.

Mr. YOUNG begged to know whether in point of
fact the notice given at Leeds had been given to all
the Branch Banks ?
The GOVERNOR knew no difference of dealing
with any of them.

Mr. 'i'euNG then said that the Chairman's answer
was taken with the explanations given, the next
question he wished to ask was, whether it was in
the contemplation of the Directors to make, or
whether they did make, the Branch-Banks the. mc-
duim of receiving an paying dividends, and at what
rate?

The GOVERNOR said, that the Members of the
Court must know the measure of Branch Banks
was no creature of the Bank of England. Gentle-
men in the country would have to do the Bank of
England the justice of saying, that the measure was
called for, but not by the Bank of England—that it
was not urged by it—it only obeyed the call. Were

the Directors only as Directors to look to their per-
sonal reputation—were they to look to the security
of the public, it would be absolutely necessary in
establishing those Branch Banks, and opening shops
with a prospect of advantage, to have some se-
curity beyond what was usually given. In
giving the facilities the Bank had done, the Direc-
tors had been pressed, asked, and granted the re-
ceiving and paying of dividends, and he (the Go-
vernor) thought nothing could be more satisfactory.
Every one knew how invulnerable this establish-
ment must be against the machinations of evil per-
sons, and if they received a dividend from their
own agents and banks, did they not diminish
the risk of the house, and was not the situa-

tion of the stockholder of the country improved-?
These were simple facts, and he was sure there
xould have been no necessity for giving this expla-
nation if the subject had been considered in that
guarded way in which he should have supposed it
would have been done by every individual.
Mr. YOUNG felt additionally gratified in having
afforded this opportunity of explanation, the subject
being so important. Having now understood it was
the practice of the Directors to receive and pay
dividends in the country through their Braneh
Banks, he next desired to know if the Directors
made any charge for this.

The GOVERNOR said a quarter per cent.
Mr. YOUNG then enquired whether the Chairman
could inform the Court of the extent of the business
transacted by the Branch Banks, and at what profit.
The GOVERNOR said, that was a point which,
required consideration, and some time, before a
direct answer could be given; but he thought two
words would satisfy on this occasion. The Court
was perfectly aware that the institution of the first of
the Branch Banks was of very recent date, andhe would
put it to the experience of any Hon. Member present,
whether in the outset of such an establishment any de-
finite amount of profit was to be expected. He
might use an argument of the Hon. Member him-
self, and say that the profit must be very doubtful.
He would repeat, however, the words he had used
in Sept. 1826, the first time he had the honour of
standing before the Court in his present character,
that it must be the result of time; the thing was
thriving—it promised fair—it promised well, but be
did not undertake to say how soon it would improve
so as to yield an extent of profit, but .it was working
to that point, and this was what he could say.—
(Hear, hear.)
Mr. YOUNG said that, having been honoured
with the explanations the Court had received, he
should beg to object to the deposits not being consi-
dered as forming part of the amount of the Bank
circulation; and he thought, in point of fairness,
and propriety to the Members of the Court, the Di-
rectors ought to give a statement of the amount of
notes they had actually received value upon, for that
was the amount which they were to be considered as
under an obligation for. If 21 millions was only to
be supposed the sum in circulation, and-if the Dj:
rectors had four or five millions more in thetr-draweror
the latter added to the former, would make 25
26 millions, and this was a very lai
im-
portant consideration. He was spewing
that with tneir
pre-
sence of gentlemen who well knew
interest.
money capital they could get no competentif so large a
The subject spoke for itself, because
the issue was
sum remained in the till it was clear
d and the Honourable
too large for the demand, and
had fallen into
Proprietor apprehended the Directors
the whole of
a great error in not considering
what they had received value upo.n. as forming. a part
of their issue. This was his position, which he had
thought of again and again, and found no one deny
and. vtehrey