The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1844-04-02 00:00:00

TO THE EDITOR OF THE TIMES.

Sir,—Experience seems to have decided that the exist-
ing law which regulates the currency, restricting the paper
circulation to notes of the value of £5 and upwards,
making those of the Bank of England convertible into
cash at the will of the holders, and those of all other bank-
ing establishments so convertible either into cash or the
notes of the Bank of England, is the most safe and conve-
nient system that has as yet been acted upon ; yet, not.
withstanding, the charge of conducting the pecuniary in-
terests of the kingdom through the medium of the Bank
of England has, at periods of excitement, produced by po-
litical events, as well as from overtrading, proved to be
attended with considerable difficulty in the transactions of
commercial men, threatening convulsion and the destruc-
tion of mercantile confidence.

These results may in a great measure be imputed to the
nature and objects of the conflicting interests which are
intrusted to the care and management of the Bank Direc-
tors—viz., the public interests on the one hand, and.those
of the Bank on the other. To preserve public confidence,
and to regulate the currency of the country, as well as our
foreign commercial intercourse, it is necessary that a con-
siderable stock of bullion should at all times be held by
the Bank, sufficient to meet any exigency that might arise
either from panic at home, or excessive speculative im-
portations from abroad, the last exceeding our ordinary
means for payment, and requiring provision to be made
for the deficitticy in the precious metals. These impor-
tations have at times been rendered necessary by the par-
tial failure of our home corn crops, increasing the neces-
sity for the exportation of bullion, which, carried to ex-
cess, has caused general derangement in the trade of this
country and serious injury to the parties embarked in
such undertakings.
To check or to regulate such proceedings no effectual
provision for the protection of the public at present exists.
For that important object it is requisite that the Bank
should at all times possess a stock of bullion bearing a re-
lative proportion to their paper circulation ; whilst it is
evidently for their interest that their stock of bullion should
be kept low, and their issues in proportion large, to enable
them to support their dividends. Thus, when periods of
panic have arisen, they have been nearly drained of their
bullion, and left with only limited or other unconvertible
resources to meet or provide for the large balance of their
paper circulation that remained in the hands of the public,
exposed to the risk of depreciation in value, attended with
great public inconvenience and derangement, to which it
might be found impossible to place bounds, and thus in-
volve the country in consequences to be deprecated, and,
if possible, provided against—of whi,th, no doubt, the
Bank Directors are well aware,—whilst they must feel
themselves so circumstanced in the charge of such con-
flicting interests as to disable them from effectually pro-
viding against. Remedies for such difficulties have been
suggested, such as the issuing of small notes, and the pay-
ment for large amounts being made only in bullion, at the
market price, in place of corn ; but such would only act
as palliatives, producing both delay and inconvenience,
without striking at the root of the evil.

These conflicting difficulties become every day more
important and formidable from the progressive extension
of the trade of the country, caused by the growing wealth,
incited enterprise, and increasing intelligence, stimulated
by the extended beneficial markets for the consumption
and sale of our manufactures, found in our immense India
possessions, and growing facilities of our intercourse with
China ; whilst our exports to the markets of Europe, and
means for the payment of heavy supplies required for them,
are yearly becoming more narrowed by the extension of
home manufacture in these countries, rendered necessary
for the employment of their people and protection of their
general interests, leaving us at times with consideraVe
balances to pay to them and to the United States, either
in bullion or through the medium of our transactions with
India and China, or both. Thus existing causes collec-
tively, as the scale extends, appear. pregnant with hazard
at periods of panic, and therefore to call for efficient and
effectual means for either protection or remedy.
To renew the character of the Bank of England, and
consent to leave the practical charge of regulating the pe-
cuniary interests of the country in their hands, do appear
to me both unsafe and unsatisfactory, that it has now be-
come necessary that the whole system should be recast.
For the accomplishment of so important a national object,
the charge of their interest requires to be placed in other
hands. To withdraw them from the Bank might be
complained of as an injury inflicted on that body. I
would therefore humbly venture to propose in justice to
them, that their capital, now lent to the public at a low
rate of interest, should be repaid, for which the present
period is certainly fortunately favourable ; and their
charter for all their banking purposes renewed, as conduct-
ed by other similar bodies, possessing, as they do, pro-
portionally large paid-up capitals, such as the Royal Bank
and Bank of Scotland, acting as banks of deposit, issuing
their notes and employing them in temporary loans, dis-
counts, and other banking transactions; their capitals
affording ample protection to the public for the safety of
their paper circulation.
To meet the exigences of the times, to strengthen con-
fidence, to regulate our monetary system, and to afford
given means of control over our transactions and pay-
ments to foreign countries, as ascertaked by the state of
the exchanges, and afford a check to unwholesome specu-
lation and overtrading, I propose the creation of a national
bank, to be established with the authority and under the
guarantee of Parliament, authorised to issue their promis-
sory notes of the value of £5 and upwards ; these notes
to be payable in cash at the will of the holders, and em-
ployed in the purchase of bullion to the extent of perhaps
one-half, and the remaining haif invested in Exchequer-
bills and other public securities ; the profits arising there-
from to be applied to defray the expenses of conducting
the establishment. I propose that the amount of the
issues should always be strictly applied and preserved in
that proportion—that is, one-half to the purchase of bul-
lion and one-half to the purchase of Exchequer-bills and
other public securities ; and when it happened thatan
excessive call for bullion arose to supply outward objects,
that in promotion to the extent of the call, for which pay-
ment would be received in their notes, the directors, in
the exercise of their discretion, should be authorised to
withdraw a similar sum from circulation by the sale of
securities to that extent. Thus, if 1,000,000 or more in
bullion was withdrawn from them for foreign purposes in
excess beyond the ordinary demand, they should, if they
deemed it expedient, to dispose of securities to a similar
amount, thus withdrawing 2,000,000 or more, as the case
might be, of their notes from circulation, by which the
proportions between the stock of bullion and their notes
in circulation would thus be preserved. The extent of
their purchases of bullion would be governed by that of
the supply being paid for in notes, whilst the circulation
would be provided fur in the most safe and satisfactory
manner, the stock of bullion would be held without ex-
pense to the public, whilst the object of the national es-
tablishment would not be profit, but protection to the in-
terests of the country, and those of the trading community
in particular.
The effect of such a process would be to narrow the
circulation, creating a scarcity of money, and making
more difficult all operations connected with overtrading,
checking excessive supply by enhancing the value of mo-
ney, restoring the exchanges to the natural relative value
of money here and elsewhere in the ordinary transactions
of business, thus arresting the excessive exportation of
the precious metals, and replacing the trade of the coun-
try in a sound and beneficial state.
I would propose that the directors of the bank should
be few in number, appointed by the crown, and not re-
omfo
ivoaobal ep
aboui
tty byotrh eoat
huot
rh o rsiattyi
sofaf
optaorrlyi a mo
aeonste,
sup; o nt
hgartoiti
hn
odys
should be men known to possess an intimate practical
knowledge of the trading, manufacturing, and commercial
interests of the country, and in all respects unconnected
with trade, manufacture, or commerce, with ample remu-
neration for their services, which would require to be en-
tirely devoted to the duties attached to trusts of such high
responsibility.
With such an effective national establishment banking-
houses or companies would be left in possession of all
their ordinary and existing channels for the beneficial
statedem ol;mgeinvitogo,f
incatphietael
x,
eirnoisteheof mannerther
.ju judgment
olheanyteaaoldredaidy
sy.
interests
of general accommodation to the trading
of the country. This system has been found to be pro-
ductive of great and general advantage, affording accom-
modation to the trading interests of all classes in every
part of the country, which, from long-established usage,
is more or less dependent on the support afforded by
banking establishments, proving highly beneficial to the
productive interests of the country; therefore, any mea-
sure calculated to derange the existing system must be
expected to be followed by dangerous results.
In the exercise of these measures of accommodation,
the practice of issuing promissory notes has been carried to
a considerable, lindin various instances to a dangerous ex-
tent, againstwhich it has been necessary to provide a guard,
soas that theevils causedby excessive issues on theone hand,
and undue or unbounded confidenceon theother might bele-
strained and kept within prudent bounds. To effect so
important an object, it seems to be desirable that all
banking concerns issuing promissory notes payable on de-
mand should be required to register, with an authorised
party, the amount of capital employed in that business, a
certain proportion of which, suppose a fifth or sixth,
should he at all times kept invested by them in the pub-
lic funds, and perhaps it might also he desirable, for their
own credit and safety, well as the public's, that they
should likewise be required to keep, in proportion to the

Avril 2, 1844.

ecNoitielnitnotrheai'r"couriletr°st totbebir
might occur, that the registrar of capital might beau
t
rised occasionally to check and ascertain by such inquiry
as might be considered necessary for him to make, and
with c nnpetent assistants provided for that purpose:
Such a system might be expected to product beneficial..
consequences ; it would prevent or repress the creation o
e notes
ready
for
or eiracnuylation, emergency a stock
t,h_ of
speculative establishments with inadequate capital; ;.•
would confine the banking business to those of real capi i!
ta'
and respectability, and thus give an assurance to the pub-
lic that their issues would be restricted to safe and pru-
dent limits, such as would be found to be consistent with
the accommodation of the public and the safety of the
bankers, without causing any material disturbance in the
existing ordinary channels of business.
By such a national establishment as I have suggested,
the Bank of England would he immediately relieved from
the weight of their stock of bullion, and left in the pos-
session and control of their capital and note circulation,
though necessarily on a more limited scale, to be ow'
ployed in beneficial banking business, for which London,
with her country connection, affords so ample a field. ,
The conducting of the pecuniary public business and
the payment of the dividends it would be desirable to con-
tinue in the bands of the Bank of England, under a stipu-
lation that a given proportion of the notes of the National
Bank should be used in these payments, such as would •
be previously arranged. If changes in this department
should on experience be found desirable, the Government
would possess the power of making such as the public in-
terest might be considered to require.
I think it would be found necessary and desirable to
continue the exclusion of all promissory notes except those
of the National Bank and the Bank of England from the
circulation of London and the immediate neighbourhood;
but of this the London bankers would be the most com-
petent judges. The reasons for such a measure seem to
be many and obvious ; National Bank notes with those
of the Bank of England would be everywhere, in and out
of London, a legal tender ; those of country banks would
be payable in these or in cash, as at present ; whilst the
notes of the National Bank and of the Bank of England
awmnoeldun
dl would be
tshuamtnot
dsmipayablebdeeayn in
mean
that
beyond
tdi
hs ca,aout in ale
egthi
promissory
onommn
amounteias ass ttheuo
rreymeasures
n ont will of the t
heSoldsa vp e.
payable
anebn ventured
ingotsor holders,
end detto
sthueggikelsitn ts
hp
or iucled.
be applied to private banking establish
ments that did not is-ue promissory notes payable on de-
mand ; the banking confidence they were entitled to would
remain subject to the judgment and discretion of their
customer.

From what I have stated it follows that no capital would
be required for the National Bank ; the national guaran-
tee of parliament, and the regulated restrictions for the
management of the business, the objects of which would
be few in number, and clearly defined, though in them-
selves of vital importance, would afford the most clear and
satisfactory security to the public, and demand their en-
tire satisfaction.

I am, Sir, your most obedient servant,
JOHN GLADSTONE.

Carlton-gardens, Feb. 22.

THE COURT.

Her Majesty the Queen-Dowager visited the Queett
on Wednesday afternoon, at Buckingham Palace. Her
Royal Highness the Duche.,s of Kent arrived soon after-
wards at Buckingham Palace, and joined the illustrious
circle.

DEPARTURE OF PRINCE ALBERT FOR GERMANY.
Prince Albert left town on Thursday morning, about tell
o'clock, by a special train, on the Dover railway, to em-
bark for the Continent, on his wav to Saxe Cobours, ta
pay a visit of condolence to his relatives.
ARRIVAL OF THE QUEEN OF THE BELGIANS.—Op
Tuesday afternoon her Majesty the Queen of the Belgians
arrived at Woolwich. On landing, she was warmly wel-
comed by the Duchess of hest. His Majesty the King
of the Belgians accompanied the Queen to Ostend, and
on board the packet, but his departure for England was
delayed for a few days, or probably until after Prince Al-
bert has landed at Ostend, where he was expected oa
Thursday last. The Queen of the Belgians and her Royal
Highness the Duchess of Kent were dressed in deep
mourning.

PRESENTATION OF GENERAL Tom TITUMB TO THE
QUEEN.—General Tom Thumb, whose appearance elz"
cited so much interest in Liverpool a few weeks back,
was presented to the Queen, at Buckingham Palace, on
Saturday last. Her Majesty, Prince Albert, the Duchess
of Kent, and all the royal circle, expressed themselves
highly pleased with his diminutive yet pleasing and inter-
esting appearance, his imitations of Napoleon, the statues,
songs, &c. The Queen asked him many questions, which
he answered without diffidence and with much shrewd-
ness. Her Majesty enjoyed her surprise with smiles•
She took him by the hand and gave him some beautiful
specimens of confectionery. Prince Albert was also de-
lighted with this wee specimen of humanity ; he took hull
on his knee, and caressed him a good deal.

FASHIONS FOR APRIL.

'From the " London and Paris Ladies' Magazine

Fashion."
The make of the new Spring redingotes and dresses is
with tight bodies, open in a lengthened ewer, something
resembling the straight waistcoat ; they are either pr,
without lacing or revers, or have a narrow revers forked
euuatt. chdle ; or are with small collar forming len g.kt other
V, with Anylaises, which should .et re.
style is not quite so high on the shoulders, but stilt pre
serving the opening in front to the waist ; this style
used for demi-toilettes, concerts, and social parties, and a
fiche adapted to it is made in the ouimpe style,
with Brus-
sels lace fulled round the top; the front formed of in-
lets of lace and work, wide at the top, and narrower to-
wards the bottom; different styles of ornament are used
on these dresses, but the newest is the embroidery
carne'leon, which is produced by working with the four
shades of silk, matching those of which the most beauti-
ful pros de Naples Cameleons are composed ; but this, 01
course, is confined to the shot silks. A new and hight
description of gimp is the passementerie byrinthie, anc!
also Venetian gimp. In walking dresses, corsages a
l'Atnazone are fashionable, with the little jackets falling
over the waist. In dinner and evening dresses many
of the skirts are made open at the sides, on revers of
satin, closing with ornaments of ribbon or guipure 01.,P,'
or trimmed with Atenron lace; the corsages a c&ur,
revers open to the waist. The loose sleeves al' Orientals,
a la bonne scour, &c., with the under ones more or less
ornamented, will, it is expected, be the prevailing style,
with puffings of muslin or pros de Naples, and fasten
them with brides, weds, or gimps. Ball dresses will stile
be with double and triple skirts ; a novel style or oroa'
menting them is with small scarfs of tulle illusion, sus;
pended from the waist to the bottom of the skirt, vihg
they are attached by bunches of flowers. The Spr!„l
bonnet are of pros de Naples, in pale lilac, lapis, Prat,
and blue ; some are made of white or light coloa,ust
crapes, ornamented by long boguets of flowers or wrea'
flowering shrubs, half lilac, field daises, with leaves 8„a
blades of grass. Capotes of paille de riz are ornanseSe
with ruches, and fancy straws with boltillonde's• The
bonnets continue small, and with deep bavotets- ,
heatn or
caps worn inside are of chiffonne, with sprigs of
small flowers.

SPORTING INTELLIGENCE.

BETTING AT MANCHESTER.

FRlDAYwabac k
On Tuesday the Post-office Hotel subscription room
s
was strongly attended ; Pagan
Pharaoh at 12, and lastly at 11 to 1, it becoming almosi
a " point of law" which of the two had the call.
Cattonite at 15 to 1, and Red Deer at ten points more'
both in fashion. Sir Robert's friends again displaYe:
fight, and supported him from 25 to 20 to 1 to d. solo°
money." Bramble at 30 and 33 to 1, was invented 111),°11,,
to about £7O; What, likewise, at 40 and 50 to 1. ‘'"
Wednesday it required the gift of second sight to cbsi
cover the leader, 10 to 1 being taken on Pagan; 14, 9,11,
EVENING.
dvEaNt INIOG.to 1,
afterwards 12 to 1, laid in ponies agst Pharaoh, the Is,.
fluential layer accepting 250 to 200 between him and 31'6
Collet's horse, in strong force at 100's to 7. HootoD
aA_
backed for a pony at 20 to 1. Yesterday a few " returrwo`i
birds" gave character to the room, but there was Sit
much done. Pagan stood at 10 to 1 (offered) ; r
Robert at 100 to 6 (offered). Cattonite we did not be,
named; Tacita frequently, but 20 to 1 did rot exartai3b
" fit." Haitoe at 33 to 1, and Young Lochinvar at to
and 34 to one were in request. 24 to 1 agst Alice, 3u. ,
~"
to 1 agst General Pollock. and 50's to 1 " like winku!ffe,
av,st the Broken Down ; 16 to 1 agst Vin OrdinVo
Emma, and Best Bower, in a " lot," may be quoted
a fashionable offer al=o ; 6 to 1 agst Kent's lot.

DOINGS TO-DAY.
There was but a medium attendance, and few engage
ments made to insignificant figures.
------- - -

TWO THOUSAND GUINEAS STAKES.
6 to 4 was laid agst the Ugly Buck on WednesdaY•

THE CUP.

bo
.o 1 was offered freely on the field ; 12 to 1 was,
believe, offered once agst Pagan ; but out of the roo°?.e'o
was asked for in a leading Liverpool quarter. Cattotw A
opponents were shy, that we consider him all but 0 40
par with Pagan. Sir Robert again fell back; 1000 to
offered in the best of quarters.
11 to 1 agst Pharaoh (12 wanted)
114 1 Pagan (offered)
124 1 Cattonite (offered)
17 1 Jamie Forest (offered freely)
20 1 Alice Hawthorn (offered, 25 take
20 1 Red Deer (offered freely)
20 1 Hooton (offered, 25 wanted)
22 1
25 1 Merry Andrew
25 1 Prior (offered freely)
20 1 Sir Robert (offered)
25 1 Scalteen (nominal)
27 1 Tacita (offered, 30 taken)
27 1 Freedom (nominal)
27 1 Everton (30 taken)
27 1 Hooton (offered)
33 1 Young Lochinvar (taken)
35 1 General Pollock (offered)
40 1 Naworth (offered)
30 1 Newcourt (offered)
30 1 Glogsy (offered)
50 1 Xanthus (nominal)
66 1 Quebec (nominal) ~,
1000 1 What (wanted.)
1 OW haf'
Yesterday 300 to 10 agst Leander, and „est it
accepted on the Modern Antique. To-day 8_ 'Wel' log
for Rattan, and we think 54 would hare been iton_
was booked agst " Scott's lot" also 15 to 1 agst 33 33 to
Rein, and 500 to 10 twice laid agst Mallow '
Voltri (taken).

10 t

0
is,

OAKS.
A " dead letter.",

s and
cos-
itipu-
tional
rrould •
;went
'went
is