Star.
London, England, 1830-05-24 00:00:00

IMPROVEMENT in the BANKING SYSTF4' ~1
TO THE EDITU OF STAR.
SIR,—In explanation of my communication on the
system of the Country Etanks, addressed to the
dent of the Board of Trade on the 24th of April last, an
inserted in the Si it of the 28th of the same month. 1
trouble you with several supplementary observations au,.
remarks, contained in a circular, dated the 1:lth instant
printed for the information and convenience of the Mem-
. hers of both houses of Parliament.
The advantages, resulting to Government, and to th.:
Country Banker, from the Banking business, and a small
paper medium, upon the secure and permanent basis I
have recommended, are founded upon a principle entirely
new, and consistent in every respect, I hope, with tit..
interests and sentiments of the community at large;
they are totally distinct from the Prohibitory Act of 1819,
relating to the money transactions between the (loyorn.
ment and the Bank of England, and from the enact-
ments and provisions of the Bill of 1828, comutoniv
called the Savings' Bank Act; though, on the nature ani
properties of the latter I beg leave to introduce ;.• very fe'm
words.

The substance of this extraordinary Bill is : That t,
meet any demands which may be made on the Ca►ena,.
sioners by the Trustees of the Savings' Banks, frog► tla; is
deposits being appropriated to the service of the State,
and secured by an equivalent in the public Stocks 01
Funds, the Lords of the Treasury may issue Exclieque:
Bills, upon which the Banks of England and Ireland
may make advances in money. The ('oanu►issioners n►at
sell stock, and apply all monies in the purchase of suci.
Treasury Paper held by those Banks, or the public,
which may be cancelled, and stock to a correspouding
amount may be created, and place.' to the credit of the
Commis.sioners, who may sell the same, and re•purchasc
such paper.
Government, however, although they have the pones
of borrowing the whole of the Savings' Banks Fund,
have not the ►neans of rendering themselves independent
of the Bank of England, the ulterior point, perhaps.
they had in view ; for, from the want of an extended
market iu regard to Exchequer Bills and other Trea-
sury Paper, and a financial arrangement adequate
to the purpose (which the Bill could not pos-
sibly supply, and which my proposal, I believe.
will decidedly effect) Ministers must necessarily
have recourse to the bank, as often as any exigencies
arise, to advance the loans, and to put their deficiency
bills (which on the sth of January, 1825, amounted .)
£1,550,276, and on the sth of July, 1829,
£7,274,827,) into circulation.
Availing myself of your obliging disposition to open
your columns for the advancement of any measure of
public utility, I take the opportunity of alluding to the
crime of forger•, with which the banking interests arc.
more or less, affected, especially as the Secretary for 11,e
Home Department contemplates some amendment
in the state of the Law ; and to observe, that, from
the superior form and workmanship of the country
bank note stamp, and from the circumstance of
retiring all notes under five pounds, at the end 01
three years, and all notes for five pounds or any
larger sum, at the end of five years, from their local cir-
culation, as suggested in my communication on the 2-111.
of April last, and printed circular, the forgery of country
bank paper would, in a great degree, if not entirely,
effaced from the page of our criminal code.
I am, Sir, your obedient servant,
May 22d, 1830. W.