The Sun.
London, England, 1829-12-04 00:00:00

MEETING OF BANK DIRECTORS.

At the meeting of Bank Directors, which took place
yesterday, some measures have been adopted calculated to
exercise an important influence on the transactions in
noney. The play of lending on Exchequer-bills (luring
the shutting of the books in Consols has been considerably
!xtetnled, and Money may now be obtained for a limited
period, not only on Exchequer-bills, but India bonds,
India bills, and bills of exchange. Such transactions are,
however, confined to a space of time between the sth of
December and the 15th of January next. The loans may
be for the whole period, but not fur less than ten days, nor
for a smaller sum than 2,000/. The interest charged will
tle at the rate of 3 per cent. per annum. This accom-
•nodation is not, as in the discount of commercial bills, to
)0 confined to individuals who have accounts open with
he Bank, but will be accessible to the public generally,
the Directors regulating the proportion of the advances to
the amount of securities tendered, or refusing them alto-
4-ether, according to their judgment of their validity.
The other measure resolved on is that of making ad-
vances at the rate of two per cent. only, on deposits of
bullion, also for periods not shorter than ten days, but
without any limit as to the duration of the loan. This
refers, however, to gold bullion only, and not to silver,
aid is understood to have been resorted to by the
Bank Directors in consequence of the state of busi-
ness at the Mint, where matters have been suffered
to fall back into the old and inconvenient regulations so
often complained of. It will be recollected, that some
time back Mr. Herries was induced, at the urgent solici-
tation of Mr. Rothschild, to allow nearly the whole of the
amount of gold bullion sent for coinage to be paid ;imme-
diately, and the arrangement was at that time considered
by the Ministry to be so /Oneficial, that a sum of 150,000/.
was furnished from the Treasury to the Mint, in order to
cover the loss likely to be sustained by it, being of opinion
that this loss was more than counterbalanced by the
facilities given for the increase of the gold circulation
of the country, and the inconvenience of the public
generally. Means were afterwards found, to be sure, to
neutralize a part of its effect, by introducing a rule that
no less a cam than 10,0001. should be received, so that
the great capitalist who promoted the measure was almost
the only person who derived any advantage from it. St'll
the circulation of the gold currency was materially aided.
Now it appears, however, that the sum set apart to cover
the loss by the arrangement is exhausted, and Ministers
refuse to give any more, so that the old regulation is re-
turned to, by which any person offering gold at the Mint
to be coined, cannot receive the proceeds for 90 days, and
consequently incurs the loss of the interest on his capital
during that period. The Bank measure now brought for-
ward seems to have the effect only of giving accommoda-
tion to the holders of liullion, but will not necessarily lead
to the coinage of a single additional sovereign. Though
the rate of interest charged s extremely low, there will be a
considerable advantage, in all probability, derived to the
Bank from the measure, because interest will be obtained
on a commodity which the Directors are bound to keep by
them for their own security to a certain extent, and which
usually lies in a wholly unproductive state in their coffers.
This at present is all that,c,an be collected in the city on
this subject, but new facts, and probably new views of the
question, may transpire hereafter.—Morning Paper.