The Sun.
London, England, 1827-11-10 00:00:00

it deals.

2. lt is well known that, at the period of the
panic in 1825, whilst some of the great capitalists
had every possible assistance afforded them by the

Bank of England, not merely for their own wants,
but such as enabled them to take advantage of the

wants of others, the very best bills and most unques-
tionable securities were rejected, coming from in-
ferior parties (many of whom were thus involved in
ruin), in consequence of the Bank having by
.its

loans to Government,, and its injudicious advances

on mortgage, so far exceeded its ordinary issues, as
to endanger its own existence. Facts to prove this

might be multiplied without number.
3. Since this period, not less than two or three
millions sterling, heretofore lodged in the hands of
the priv,ate bankers, have been transferred to the

coffers of the Bank of England, who alone have pro-
fited by the unjust and unfounded clam'ours raised
against their opponents.
4. The loss of this floating capital to the bankers
and to the public, who profited by it whilst in their
hands, the establishment, by the Bank of England, of
branch banks in the principal towns, and their
avowed intention of paying the public dividends at
these branches, leave no doubt of their ultimate in-
tentions. The eyes of the banking interest are, at
length, opened to the danger of their situation.
5. For the purpose, therefore, of protecting to
mutual interests of the London and country bankers
from further encroachments, as well as to give a
sound currency to the country, founded on the pre-
sent metallic standard, it is proposed to establish a
National Bank, with a capital of five millions ster-

ling, 10,000 shares of 5001. each, to be termed Na.

tional Bank Stock ; to be under the management of
24 Directors ; viz., nine London and nine country
bankers, and six managing directors (to be nomi-

nated by the 18), whose whole time shall be devoted
to the establishment.

The entire annual expence will not exceed 30,0001.
6. The proposed Bank, if generally supported by
the banking interest, will abstain from doing any des-
cription of business injurious to the interests of the
existing town and country bankers ; not purposing
to receive deposits or dividends, but intending strictly
to confine itself to the objects for which it is to be
established.

7. As the whole of the issues will emanate from
the National Bank, which will be responsible for
them to the public, the failure of any individual
bank will not attach the slightest discredit to the cir-
culation in general. The security required of the
country banker will be of a description convenient to
him to part with, without unnecessarily cramping his
concern, or lessening the protection due to the bank
or the public.
8. In order to deprive the opponents of this
measure of all pretext for misrepresenting the
views of its supporters, it is explicitly declared,
that the object is neither to cramp nor to in-
crease the circulating medium, but simply to place it
on a basis of such solidity and steadiness, as shall
tend to check those 'violent fluctuations of prices
and property, produced by alternate issues and con-
tractions of the circulation, the most pernicious mode
possible of tampering- with the currency of the
country. It is further proposed, that the amount of
outstanding notes shall be published monthly,
9. The country banker must be aware that, in the
attack now made upon him by the Bank of England,
the public will naturally side with the strongest, and
consequently prefer a note which they have been
accustomed to consider national, to that -of any pri-
vate bank, however respectable. Is it not, there-
fore,. imperative on
,him to place his notes on an
equal, if not superior, footing ? To effect this, even
at the expense of a temporary sacrifice, would be
preferable, if by so doing he preserved his business;
but, by the proposed measure, no sacrifice at all need
be made. It is filir to presume that a national bank
of unlimited credit and power, to avail itself of all
fair advantages arising from political and financial
circumstances, will make some profit by its business;
witness the example of the. Scotch and Irish Banks.
The present state of the Bank of Ireland at once sets
the question at rest. The Bank was established in
the year 1783, with a capital of only 600,0001.; it
is now increased to three millions, after, paying the
original subscribers 12/ per cent. for their money,
whilst it gives them at the present moment 1,250/.
for every 437/.los. money actually subscribed. The
annexed official document proves this fact.
10. Now, presuming that 500 country Banks
would each take only 10 shares, or 5,000/. stock; it
would at once produce half the capital required ; but
it is so evidently their interest to keep the whole in
their own hands, that it is not unlikely,the whole will
be taken. If, nevertheless, the whole should not
be subscribed for within a stated' period; the public
(who have already made numerous, applications for
►he stock) will be entitled to that benefit which is
wished to be confined exclusively to the bankers :
and'in that case it might materially alter the whole
nature of the establishment.
11. No one can reflect on the various means now
afloat for the extension of the circulating medium,
without being convinced of the necessity of some
limit being assigned to it; who can be astonished
at the enormous amount of unemployed floating
capital, when he considers that four steam-engines
(for such they may be termed), are at work for its
still further extension,
The Bank of England ;
2. The Joint Stock Banks ;
3. The' Country Bankers, and
4. The Branch Banks of the Bank of England.
Who can contemplate the probable effect of all
this without Shuddering ? Is there not an absolute
necessity for the immediate adoption of measures to
check this dreadful evil ? Is not the country yet
aware of the important truth, that every attempt to
convert Property into a circulating medium, on an
extended scale, as was endeavoured to be done dur-
ing the panic, must produce a violent convulsion ?-
11//ust,in fact, drive the Bank of England notes to a
par with the French assignats.
12. So deeply are the proposers of the present
measure impressed with a sense of the great danger
to be apprehended in the prosecution of any plan by
which the currency of the country may be affected,
and so fully are they convinced of the great prudence
to be exercised in its execution, that they conceive
no notes of the intended National Bank ought to be
issued, but in lieu of others actually withdrawn front
circulation,
13. However disposed they may feel to do every
justice to the private and personal characters of the
twenty-four gentlemen composing the Bank of Eng-
land Direction, who can forbear being struck with
the strange anomaly that, out of their whole number,
not one has been educated to the. banking business ?
One-third are junior partners in commercial houses,
another portion are almost superannuated, and the
remainder not distinguished for a knowledge of the
common principles of political economy ; and yet
these are the men taking upon themselves to regu-
late the financial system of the British Empire

Ought the public, then, to feel astonished at the
panic created in 1825 ? Or, that, during that event-

ful period, when it was on the eve (as acknowledged
by one of the Ministers,) of being reduced to a
mere state of barter, 'the inexperience of such men
should have led them to refuse the best paper and ,
discount the worst ?—to encourage and support the
overgrown speculator, and refuse aid to the prudent
and industrious, who were ruined for no crime
of their own, but purely because the rules, regula-
tions, and incapacity. of the Bank Directors forbade
their interference ! Surely it is high time some coun-
teracting power should be raised to save us from the
consequences of a similar catastrophe.
14. To prevent its recurrence is the object of the
proposed establishment. The public are driven to
its adoption by a regard for their own security, and
to protect themselves against the fatal consequences
of the increasing mass of Bank of England issues,
which rendersno distinction perceptible between the
man of property, and the man without property; the
capital of the former being rendered, by such mea-
sures, nearly unavailable for purposes of income.
15. One of the most important and striking fea-
tures in the proposed 'undertaking is, the opportu-
nity now afforded of effecting "An entire union of the
London and Country Bankers in one common inte-
rest," to counteract the unjust and tyrannical mono-
poly of the Bank of England; whilst it will furnish
to the country banker using the national notes, a
currency much cheaper than his own (probably cost-
ing him not more than 1 per cent., including stamps,
paper, and printing), with these decided advanta-
ges, " that he will be under the necessity of keeping
a supply of ready cash to meet hisnotes either in town
or country." That he will be exempt from the possibi-
lity ofall runs to affect his lodgments, ( the certain conse-
quence of a run upon his notes), and finally, be se-
cure from all the forgeries incident to his present
circulation. His business may thus become to him
a source of pleasure as well as profit.
16. Should this plan, however, not meet the ap-
probation of the country bankers, anothe,. is prepa-
red on the principle of retaining the circulation as it
now stands, and merely substituting the national for
the Bank of England notes in the drawers of the
country bankers. As the principal merit of this
plan consists in the gratification it may afford the
country banker of still continuing the power of
making his own notes, without remedying the sup-
posed defect in the circulation, by controuling his
issues, or affording the public that security they
have a right to expect, would it be wise to oppose
the prejudices of the people, the Government, and
the press, when, by the adoption of the measure
now proposed, all the points so ardently desired by
the nation, can be accomplished ? Would it not be
liable to the interpretation, that the bankers were
looking solely to their own interest ?

1. One million sterling will be lodged at the place
of establishment (out of the five millions subscribed),
to be• increased as the Court of Directors may deem
necessary.
2. The amount of circulation apportioned to each
country banker will be determined by the Court of
Directors, who will endeavour to regulate it as much
as possible by his present issues, contracting or ex-
panding it according the legitimate wants and soli-
dity of the party.
3. The national notes will be made payable only
at the place of issue, but they may and will be paid
by any banker in London favouring the establish-
ment, amongst whom they will, probably, pass cur-
rent like the notes of the Bank of England.
4. " Method of Exchanging the Circulation."—
Upon a credit being lodged in London by a country
banker on account of the national bank, the out-
standing notes of such, country banker will be paid
(to the amount of such credit) either at the esta-
blishment or London, or exchanged for Rational notes,
as may be desired. _ _ ,

5. During this operation of the exchange, credit
will be given to each country bank, to the full
amount of national bank stock it may hold ; beyond
this, remittances must be made to the establishment,
or the London agents, to insure a further supply.