Star.
London, England, 1825-12-19 00:00:00

a.

' .

•" the solvency of the Bank of England, which stand*
on as firm a basis as the. British Constitution."
We entirely agree in ;,11ii. the Ifs; sentence
which *nests, the iolitePorprOil)anki,nco'li)dy hiding,
ever questioned it. irforeeverowe agree is the otaaH
chiding- member elthis sentence, that the Bane; what='
ever may be its- issoes, stands on as firm .2 britif!es the,
British Constitution. But this supposes that2if
be protected, by law_ from paying its engagpmentir
,gold; in which case, both the Bank and the Calastittninno
no-doubt, tandMr the same basis--7theLaw of the Lead.'
oilut no law, nor any possible contrivance of Mitt, can
drake Bank Notes of the same value*: geld, unless they ,
are issued in such a limited quantity as !half not exceed
the gold in possession or at . the command of the
Bank to replace them on demand. At the present mAr7
ket price of gold, 100,000 coined sovereigns will ex-
change for their weight of 100,484 sovereigns uncoined.
But 100,0001. in bank notes will of cotorse only exchange
for that same number of sovereigns ; how, tl en, tan the

Bank notes be said to be more valuable to the country
bankers than so many soiereigns, although they may
be more valuable than the same weight in ingoti ?
Country bankers, well supplied with sovereigns, can
never require small notes ; and it is foolish to pretend
it : neither is there the same danger, as this writer at-
setts, (ram coining, that there is from the forgery of
one and two pound notes. The authenticity of a note
is only told by the eye, and when of small value, it
passes easily undetected. A genuine sovereign is not only
told by the eye, but by the much more unerring criterion
of weight. Aid when the New Times compares 3191
convictions for coining, with only 1581 condemnations
,for forgery in the same length of time, he forgets that
this statement is calculated to mislead; seeing that
the great mass of coining consists in silver fabrications
which has nothing to do with the policy of issuing small
notes, as compared with sovereigns.
The issue of small notes, therefore, can have no
possible object but to diminish the demand for gold.
We do not mean to infer that this anxiety for dimi-
nishing the demand for gold originates in any ap-
prehension of a run on the Bank. The low price
of Bullion negatives any such supposition. Bit that
low price is for ever dependent on r moderate issue
Of Bank notes, nothing being more certain than
the fact, that any rise in the price of gold above the
Mint vice, will inevitably produce the melting of the
current coin, until the equilibrium be restored ;and, for
the same reason, a great demand for coin to be dis-
persed in the operations of commerce, as certainly tends
to raise the price of bullion, by diminishing the quan-
tity in the Market, :1 -
It was, therefore, with the utmost anxiety we recom-
mended the increase of interest on Exchequer Bills, in or-
der to promote the difirsion of that species of tin-dating
medium, instead of Bank notes, throughoutthrcommer-
cial world. There is no motive for hoarding Bank-
notes in preference to gold, seeing that they
produce no interest; but there is the strongest
motive for those who have' withdrawn their balanies
'from Bankers and 'others, to hoard Exihequer Bills
at good *interest, in prefes ence either to gold or Untei;
fmwhich simple reason tl.e innumerable small hoards
would be broken up, and the large sums now retained
by Baskets as safeguards, would likewise her dimi-
nished; if bothilasses possessed in lieu thereof a security
instantlfeonvirtible into money at a premium. It.
the:44l4J permanent interest of the Bank to ,

down theirlissues, and to ditcount moderately; but
this is inipracticable without another kind of nein,'
ciable security.

Notwithstanding these strong arguments in favour.
of Exchequer Bills bearing higher interest, which
we are almost ashamed to be so often obliged to
repeat, we are concerned to see no step as yet taken for
the purpos-. The Cabinet met again on Saturday
night, without any result of a public nature that has as '1
yet transpired. Rumours:on mere surmise are shun.,
dant, which we abstain from repeating. But we should
ill discharge our duty to that large portion of the public
who honour our columns with notice, if we did not,
solemnly raise a warning voice against any extension
of the issues of Bank Notes, especially.small notes, un-
accompanied by measures for replacing the whole of the
Exchequer Bills now outstanding, by an equal or greater
amount of others at considerably higher interests and
without -requiting the B ink to negotiate these and sir
milir Government Securities as soon as possible, so as
to recall much of• the notes now in circulation. If
this be not done, the Bank restriction is inevitable.
We would ask. any rational being, whether them, is a
`the vitile.tenson, tenfold urgency,- for raising
the intriest. et the whole of our
.Exchequer -Bills, that
existed a fortnitltt4e; for raising the rate of interest ob
a small pastor theorl, Mosinoney been less urgently
in -Tape* - €1
• ~13
Since westing- the Amer .we learn from the City
report that the measure we Uinta, often urged, the issue o! Et-
ches:per Bills at a higher rue of interest. bas laben place; • narnely,
at twopinte'fir instead of three-halfpence; the milled*
.111
one ifkidlitakd' foi bids* present state of the money' itiatket; and
massoftsirot being productive of the greatett,ad•rantge; '•• •
• • • ) ••
• ' Weitilitet *such to see the alicrity'llith - the
Gestleiiiiii and Tredeemen in the poirftiiial. trains ere'
. -
Cli*g fiCifW.A4f COVPtemft, tbs 1)104,44 rugivsti
t• . 2..
the monied interest, and, to, assist their ,igepectioe
_Ranking ..skibitsblidoet2 b y 40clavationes ot ycnittedencit

. -
4,rlielVoitteNcl gatorirariovos
%1444,. At Colciaasseapa4foating- of the principal
i>nlsabitini`s wig" 1it4.41**06311y, in which a faallo:
.tial% "pa pukoursimeir rand. declaring,
" That 4t it ithe irarsimovidtia. sittido Maim thathis- aka&
tiocht.which aa tamp Ovate Seekers are braised, hive beta
optalimapd Ivy lallitt • arlikh prevails is the filo:paled
Waldo awl wit frail tIMINIMISIOney at' property." - Anotherl
raseistianAniaratioall Tlawaril Pupate to the Carlotta Rank of