The Sun.
London, England, 1827-09-20 00:00:00

BANK QUARTERLY MEETING.

(THIS DAY.)

A meeting of the Proprietors of the Bank was
held this day.
As soon as Mr. RICHARDS, the Deptlty-Go-
velmor, had taken the Chair, the proceedings of the
last Meeting were read over. It was then moved,
that a dividend of 4 per cent. of interests and pro-
fits should be declared . for the half year ending
10th of October next. 'On the motion being put
from the Chair,
Mr. YOUNG, a proprietor, enquired what the
amount of the Bank issues was.
Mr. RICHARDS replied that the amount varied in
a slight degree only from what had been in circula-,
tion when the last meeting was held: There might
be a difference of from 400,000/. to 500,000/.; but
taking into consideration the circumstances of the
country, and the nature of the transactions in which
the Bank was engaged, such a sum must be looked
on as a trifle.
Mr. YOUNG wished to know the amount of the
issues made by the Branch Banks, and whether
they were included in the general amount of issues.
Mr. RICHARDS said, that as an individual, he
would have no objection whatever to state the exact
amount put into circulation •by the Branch Banks,
but he felt that motives of propriety might to re-
strain him from makinea public declaration; he would
therefore put it to the Hon. Members, whether he
ought to press that part of the question. With re-
spect to the other part, he was enabled to inform
him that the issues made by the Branch Banks were
included in the general amount.
Mr. YOUNG left it entirely to the discretion of
the Depnty-Governor, whether he should give a
distinct answer as to the amount of Branch Bank
issues; he, however, was desirous of ascertaining
whether the issues made by the Bank on deposits
were also included in the general amount.
Mr. RICHARDS-replied in the negative.
Mr. YOUNG thought -they should be regarded
exactly in the same light as the other issues. The
Bank was at all times liable for them, and might be
called on to meet them in the same manner as if
they had been made in any other form. •
Mr.,lticitsitbs differed from the honourable Pro-
prietor. The Bank held such ample security for
these issues, as not to be placed in the slightest
jeopardy with respect to them- Under these cir-
cumstances, it was not deemed necessary to include
them in the statement-of . the issues which had been
laid before the Court of Proprietors.
Mr. YOUNG was of opinion that these issues
ought to have been taken into account. The
amount of issues made in the ordinary way, appeared
to be about 22,000,000. If then, the issues on de-
posits be taken at 5,000,000 more, the total amount
issued by the Bank would be 27,000,000. This
was an important fact, and one to which he bespoke
the attention of the Court.
Mr. RICHARDS assured the Hon. Proprietor, that
he took a very exaggerated view of the subject, and
seemed to entertain apprehensions for which there
was not even a probable foundation.
Mr. YOUNG said, that at all events it was clear,
that the Bank had now in circulation froM 21 to
22 millions, exclusive of the issues on deposits.
Every one must feel that the amount of issues
ought to form a criterion for judging what
should be - the amount .of the dividend. Mr.
Young then argued at considerable length on
the redundancy of paper money. He considered
that the amount far exceeded . the legitimate wants
of the country, and that this glutting of the country
with the Bank issue tended to produce the most
alarming circumstances. It increased the manufac-
ture of the country beyond the consumption • it
brought into industry a large population, which
a stagnation' of business afterwards threw out
of employment : in short, it placed, the nation
in a perfeetly artificial condition. Money was
not now bringing. more than half its; usual return;
formerly, capital could be employed at 5 per cent.,-,
but it was impossible to employ it now for more
than two and a-half. This showed a-great re-
dundancy of the Bank issue, and might have the
most dangerous effect. It was enough to alarm
every considerate man, and to induce the Court of
Directors to lessen their circulation. He contended
that this Company ought not to go into competition
with other Companies. The Court of Directors
were placed in a very important station. They. could
issue money. at will, and for them to
igo into com-
petition with other companies would produce most
injurious effects. The Court of Directors had made a
very large alteration in the management of their
business by the establishment of Branch Banks.—
The Directors had not consulted the Pro-
prietors upon this important step, though they
had deemed it necessary to ask for an Act
of Parliament. If the system was to he carried
on, on the principle on which it seemed to be
established, it would ultimately turn out to be
a system productive of some enormous evils. The
Bank itself would be injured by a rise in the
price of the Public Funds, and the Directors would
at length, if they proceeded agreeably to the spirit
of a letter that had appeared in public, and which
had never been properly contradicted, become the
only issuers of paper. This would indeed be a very
large alteration in their management, and one which
at least ought to have been submitted to the Pro-
prietors before the Court had undertaken it. Upon
looking at the Act of Parliament, it appeared to the
Hon. Proprietor to have been the meaning of the
Legislature that the Branch Bank should not have
been established without the approbation both of
Parliament and the Proprietors at large. On this ac-
count he could not but entertain very great doubts
upon the legality of the steps the Directors had
taken, and he should feel greatly obliged to know
whether the legal advisers of the Bank would stand
forward and pledge their reputation that the Act
authorized the establishment of these Branch Banks,
without the sanction of the Proprietors.
The GOVERNOR could not boast of any legal
knowledge, but hoped he might lay claim to a little
common understanding, otherwise he would not have
been placed in the honourable situation he held. Ile
believed the establishment of the Branch Banks would
never have been thought of had it not heen'considered
perfectly consistent with the legal power and duty of
the Court of Directors to the Proprietors ; but to
"make assurance doubly sure" they had got an Act of
Parliament vesting in them ample power to do all they
had done. With respect to the history of the
Branch Banks, it would take up too much time for
him now to go over all the circumstances. It
was sufficient to state, that he had at large
stated his views upon the subject twelve months
ago, to which the Court was pleased to lis-
ten, as. well as to accede to many of his senti-
ments. With respect to the state of the circu-
lation it would be the happiest circumstance that
could transpire, could the Court arrive at the power
of pleasing all parties :. one set of gentlemen, highly
respectable, said th 6 circulation was too great—
another, equally' respectable, contended it was too
little; now, among those feelings, the Court could
into
s e .
only feel the pulse of the public' the best Nay
they could, and act upon the best of their un er-
standing. As for the Court forcing any issue of dv
the
Bank upon the public, or taking any measures
for that purpose, he did, on behalf of himself and
die Court, flatly deny all such intention. The Hon.
Proprietor had glanced at 'a subject which he (the
Governor) had thought, from the honest contradic-
tion given in another place, would have been re-
ceived with perfect confidence, and that subject
to state e ie received
i v
thee(
every
l
most
been set at rest. A paper had got into circulation,
orrather,
,he would say, a limited circulation, and from
which
abuse. ,CourtNo7:
it and
was th
his
e Bank had
duty
unequivocal terms, that that paper was put
circulation,
this
without the knowledge or concur-
rencew of the Court of Directors.
tyboetipg7sdenidt
not accuse
him
although he
having. ie(
G r. YOUNG acknowledged that the Honourable
Governor had acted with his usual liberality on
the letter alluded to,lmh
• offelt -say
that he go
s.
,e d yet e bound. to
_y
nla re there was disposition on the
writteniNi r.