The Sun.
London, England, 1844-07-08 00:00:00

RUN UPON THE BANK OF ENG-

LAND.
TO THE EDITOR OF THE SUN.
"Sir Robert Peel admits that the Bank of England
may issue notes to the amount •of thirty millions—six-
teen millions on bullion, fourteen millions on Govern-
ment debts, 8;c. The deposits exceed thirteen millions.
I repeat a question I have put itit a former •letter. If a
panic should arise, and the depositors withdraw thirteen
millions of gold, how are the thirty millions of notes to
be cashed 7"— Letter signed " Common Sense," in The
Sun of June 27, 1844.
Siu,—`What a very curious fancy of your corres-
pondent, "Common Sense," to imagine a panic with
29,000,0001. of bullion in the coffers of the Bank of
England. If the proposed Bank Charter Bill should be
'carried into effect, that law must be infringed, if
there be not 16,000,000/. of bullion in the issue de-
partment at all times. when there is a circulation of
30,000,0001. of notes ; so that, supposing the de-
positors to have had thirteen millions of bullion paid
to them from the banking department, there mast
still remain 16,000,000/. of bullion in the coffers of
the issue department, if 30,000,0001. of notes be
then left in circulation, showing that, if the position
of " Common Sense " should hereafter occur, the
Bank must—previous to the payment of thirteen
millions of bullion to the depositors, and yet
having 30,000,0001. of notes in circulation--
be in possession of 29,000,0001. of bullion immedi-
ately previous to the payment of the depositors,
9,000,000/. in the banking department, and
16,000,0001.- in the issue department, as the
Bank, by law, would be bound to have
bullion in its coffers for every note issued above
14,000,0001.; so, there being an Issue of 30,000,0001.,
there ought, and, of course, would be, 16,000,0001. of
bullion, being the amount of issue over and._above
14,000,0001. Your correspondent says that Sir Ro-
bert Peel admits that the Bank of Englandinay issue
30,000,0001. of notes—to be sure the Bank may,
who can doubt it ?—there is no limit to the amount
of issue of the Bank of England; the only limit is,
that the Bank must at all times have a value in bul-
lion in the coffers of the issue department, equal to
the whole issue over 14,000,000/. ; so the Bank of
England might have an issue of 100,000,000/. of
notes, provided it held bullion to the value of
86,000,000/.
Now, we find that although the depositors shall
have paid thirteen millions from the banking depart-
ment, there will be sixteen millions of bullion to
meet the thirty millions of notes—a very handsome
balance-sheet for a banker to show his distomers. Yet
" Common Sense" asks, " how are the thirty mil-
lions of notes to be cashed ?"
Let " Common Sense" put himself in the position
of a merchant who is indebted to his creditors
30,0001.; he has 14,0001. at his banker's, and in his
warehouses goods valued at 16,000/. He calls his
creditors together, shows them the state of his affairs,
and deploringly asks " How am I to pay you
30,000/. ?" The reply would be, " Sell your goods, and
turn them into cash." So will the Bank of England
be enabled to sell its " securities," and obtain cash
to meet the 14,000,0001. of notes, should such a
necessity arise; this is how the thirty millions of
notes can be cashed. " Common Sense ' ought to
know that a banker who holds securities equal to all
demands upon him, although he has not at any one
instant gold to pay every debtor, is no more insolvent
than a merchant who has not cash to pay every debt,
yet has merchandise in his possession which will
realise more money than will satisfy every demand
upon him.
" Common Sense" does not know the working
of the New Bank Charter Bill ; he fancies if the
depositors were to make a demand of 13 millions on
the banking department, and the gold was not there,
that it could be obtained from the issue departme
without 13 millions of notes being presented. Tat
clerk from the banking department would not get
five sovereigns from the issue department, if he did not.
present a .5/. note for them, the same as one of the
public. Whatever amount of bullion may be drawn
by the depositors from the banking department, will
have no effect whatever on the amount of bullion
held by the issue department, without the banking
department presenting notes to the issue department
for the value of every sovereign that may be required.
I am, Sir, yours, Ike,
R. W. D.
Ilfracombe, June 29th, 1844.

DETERMINED SUICIDE BY SUFFOCATION.--On Fri-
day Mr. Wakley, M.P., held an inquest at the George and
Dragon, Buckingham-place, Fitzroy-square, on the body of
Mr. King, aged 2,1, pianoforte-maker. Mr. Thomas Dedwick,
deceased's brother-in-law, deposed that be was a pianoforte-
maker, and that the deceased lived and worked with him.
During the last twelve months, deceased suffered greatly
from ill health and depression of spirits. About two
months ago deceased was greatly affected at seeing a
female, to whom he was attached, walking with "anothex
man, and from that period he was in a very melancholy state
of mind. Last Tuesday he was very silent, and supped
with witness at ten o'clo& at night, scarcely•,speaking a
word. They retired at twelve o'clock. On the following
morning, witness finding the door of the water-closet faa-
tencil, had it forcod'open, when he found deceased crouched
up in the water-closet quite dead, with a panier of charcoal
burning on the floor. So resolved was he upon self-destruc-
tion, that be pasted paper over every cranny and crevice of
the closet, to prevent the escape of the poisonous gas of the
charcoal. His left arm and side were burned by the flame's
of the charcoal tire. Mr. Proctor corroborated this witness's
evidence. From other statements it appeared that the de-
ceased had cut the paper in strips with which he.coirered the
crannies, and made the paste for fixing them on in the work-
shop. While so engaged, be joined in several songs, with the
workmen, one of whom having said that he would go to
Gravesend on Sunday next, he said, " I, too, will be at
Gravesend pn that day." Verdict," Deceased destroyed hi*
self, but there is no evidence whether he was insane or not it
the time."