The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1844-09-24 00:00:00

BANK OF ENGLAND RETURNS.

The London Gazette of Friday week contained the
return under the New Bank Act of the last session, sh°l;
ing the position of the Bank of England for the week
ending on Saturday the 7th of September. This return,.
is divided into two distinct branches of Issue Department
and Banking Department, in conformity with the provi-
sions of the act. The public are at length furnished with
all the information they can require for a complete under-
standing of the position of the Bank and the circulation'
In 1833, whe the first returns were published, it may be
with truth asserted, that the principle only of publicitY.
was conceded ; for the returns themselves, being involve
ia
in the intricacies of three-monthly averages, were nearti
useless for practical purposes. The act of 1811 certaintf
corrected this deficiency as far as regards the circulatiol
and bullion, but omitted to make any altetation in sever!„
other important items. The present returns, from their
minute subdivisions, may perhaps appear to some to err
on the other side, more especially at the commencement,
when there are no antecedent averages of equal detail to
compare with them. The sum total of the two returns
being much larger than those hitherto published, 01,81,
also lead many persons into the error of supposing Ma'
the recent alterations in the Bank Charter have been the
means of greatly increasing the circulation of the country
For this reason, and from there being no previous returns
of sufficient accuracy to compare with the new one, it is
proposed, on the present occasion, to give a description
of the various items, and to suggest such combination
first
and comparisons as are considered essential, either when
referring the present to the preyious returns, or the sub"
sequent new returns with each other. For the purpose 0'
reference, we insert the last return of the Bank of Eng-
land, published on the 10th of August, 1844, merely Pre;
mi.,ing that this is not an actual return, but an average °I
the preceding thirteen weeks :
Circulation £21,324,000 Securities .... £22,909,,
_„„
Deposits 14,090,000 Bullion

Total liabilities £35,414,000 I Total assets .. £38,487,00°
Taking the items in the order in which they are now
published, the fir.,t appears in the Issue Department E!.5
" Notes Issued," £28,351,295. Now, if a comparison is
to be made with former returns, those notes only must
be taken from the new accounts which are really with the
public; and to arrive at this sum we must deduct from
the above amount the £8,175,025, which is the amount of
notes in the possession of the Banking Department, as
shown in the second of the new returns. This leaves,-
.£20,176,270 for the amount of notes in circulation, show-
ing a decrease as compared with the last average. The
great apparent increase in the amount of notes issued is,
therefore,. no real addition to the circulation; for the-
issuing department merely returns to the banking depart-
ment in the shape of notes the amount which is an equiva-
lent for the excess of capital giving up to the issuing
branch. Under the old system, if the holders of deposits
wished to draw out their funds, the Bank had the power
of making notes to pay them, which became added to the
notes in circulation ; and their issue of the notes in reserve
will, under the new arrangement, only effect the same
thing. In either case the result is, that more notes are
in the hands of the public, without alteration in the amount
of securities. In both cases also, if the• Bank preferred
to sell securities to the amount of the demand for depootsr
the total notes actually in circulation would remain the
same. On the other side of the account in the issue de-
partment,, we have the item of £11,015,100, being the
debt due from the Government to the Bank. This now
forms a portion of the basis of the circulation. The patnk
having given up this and other securities and bullion to
the amount altogether of £28,351,295, will clearly eXPIaII3
the amount of notes issued, which being greater 11
£8,175,025 than the sum in the hands of the public, tYAIR
difference is returned to the banking branch to Pr°"""
for deposits and other purposes. The sum called " other,
securities' amounting to £2,984,900 will be found,
added to the £11,015,100. to form the exact £14,000,e",
allowed to be issued by the new act of Parliament. I.'",
compare the present statement of securities with former
returns, we must form the following table :--
From the issue department .
From the banking department (Go-
vernment securities)
Ditto, other securities

14,554,834
7,835,616

£25,375,30 be
The last published return states the securities to
only £22,908,000, showing a large increase, which is ni)
easily comprehended. This is connected with the call
obscure points in the returns. From the last returns tn
liabilities were stated to be £35,414,000, and the as,s,,et,
£38,437,000, showing a surplus, or rest, of £3,o73tuu
Now this rest, added to the original debt due from til/
Government, that is, £11,015,100, amounts to1:14,088,1 i
b 0
and this would appear to be all the capital possessed by
the Bank after realizing all their securities and Paying
their debts, and which could be divided among the 511°4
holders; but in the new returns we find not only the re._
"
put down at £3,564.729, but the proprietors' capita..,a
stated to be £14,553,000, or more than it was estiroa",
when the rest was included. This part of the subject rt..%
quires some explanation. With regard to the bullion tilt
best method for the present will be to add the aranu,iie
held by the banking department to that held by
issue department, before comparing it with preee
ing periods. But whenever the new returns sl",
be compared with each other, this will not be T,
1„g
cessary, as the amount of bullion in the bankhia
branch _ will always be maintained at a moderate sere
b y sending in notes to the issuing department if Wee.
is a demand for gold, and vice versa in the opposite 10,
By the present return the amount of bullion i5£15,209,u.
showing a slight decrease as compared with the preceNa
period. The public and private deposits must be 8 the
together for a comparison with former returns uncle!. 0-
old system, At a future period the two species 01,0
counts may be compared separately. it must be nof
observed, that we do not possess any correct accourifoot
the former amounts of the deposits, this item having Lof
left out of the returns under the act of 1831, and °ye.'
published in the old useless form of three-monthlY
f error
rages. This is, however, only a temporary cause 0- e„sito
and inconvenience. The present return of the del'orn.
gives a total of £12,275,157, showing a decrease as fob
pared with the former average of about £1,809,000.
the exception, therefore, of the remarkable aPParen eon'
crease in the securities, there appears to be no verl,.o,
siderable variation in the currency from the last rett''