The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1844-05-14 00:00:00

BANKING AFFAIRS.

(From the Times of ThursdaYi
h city trader
Sufficient time has now elapsed to allow
o'ect
and capitalists to form a judgment upon the new Priost
relative to banking affairs, which i, viewed as the most:
important measure of the kind since Sir Robert Peel
celebrated bill of 1819. Taken as a whole, it is pro-
nounced to be deserving of the greatest praise; and it is
freely admitted that all the previous recommendations
and plans of the select and other banking committees
sink into comparative insignificance, when compared with
the change that is likely to take place when these views
are fully carried out. The subject naturally divides itself
into two main branches—the country bankers, and the
Bank of England.

With regard to the first, the irresponsible issue of paper
by individuals or companies is from the present moment
effectually checked,—unless by some evasion of the pro-
posed new law, amounting almost to fraud,—and becomes
limited to about the present very restricted amount which
they have in circulation ; and there is every probability
that within a few years the power of issuing notes will ber
restricted to one source. Most people agree that the loss
sustained by the public from country banks is not to be
estimated solely by the amount of failures, but that a very
large though indefinite item is to be added for the over-
trading occasioned by the injudicious over-issues of those
who continued solvent. This was pointed out by Sir R•
reel from the examination of some of their own witnesses
before the late committee. Hence the arrangements re-
specting them are regarded as wholesome and necessary
checks to the issue of a doubtful and insecure currency;
while those which relate to the Bank of England are
viewed in the light of restrictions to the injudicious con-
traction and expansion of a currency, which, however
safe as regards the holders of the notes, have frequently
operated injuriously on trade and commerce from sudden
and unexpected variations in the amount.
One main alteration is the division of the Bank of
England into two branches ; the first being simply a bank
of issue, and the second merely an establishment formed
for the ordinary purposes of banking, but without any
power of creating notes, and which will therefore act as
any private bank trading on its own capital. The issuing.
department will have two very distinct functions to per-
form, being authorized to create an amount of paper
money to the extent of £11,000,000, based entirely oh
the debt due from the Government to the Bank, and
£3,000,000 on Exchequer-bills and other public securi-
ties, to which extent it will be a Government paper money►
and incapable, except in particular and limited instances►
of being increased. The other means by which it may
issue notes, in exchange for bullion, will supply what has
long been wanted in this great commercial country—a
bank of deposit, similar to that of Hamburgh, in so far
as it offers the facilities of paper in large payments, joined
with the absolute security of a metallic currency, but
superior to it in detal, because it offers the same facility
and security to smaller transactions that is afforded by
the Hamburgh bank, where, instead of notes issued, there
are transfers made from one account to another, which
limits its usefulness to the larger class of operations. It
is clearly seen that the amount of notes which will thus
circulate will necessarily be fixed by the wants and con-
venience of tEe public, and form a protection against any
demand for gold on notes based on the other securities,
as before they can be presented the notes issued against
gold must have been paid in, and the paper circulation
reduced to £14,000,000.

The new measure appears to city observers not only
judicious in itself, but remarkably well-timed. The
amount of gold is now about £16,500,000, and notes to
this extent are therefore already based upon tb!, preciouS
metals, so that the transfer of the stock of bullion to the
issuing department will form a basis on which this amount
will issue and be circulated ; to which amount also the
currency will be really metallic, although possessing the
facilities, so far as easy transport and freedom from wear
are concerned, of a paper currency. The remainder of
the notes in circulation is about £4,500,000, and to this
must be added the deposits, amounting to about
£13,000,000, and forming a total of about £17,500.000
liabilities which are based on securities of different kinds
now in the hands of the Bank. Of this amount .E 11,000,000
is now provided for by the new plan, against the Govern-
ment debt, and the Bank will have the power to issuer
£3,000,000 more against Exchequer-bills or other public
securities they may now hold. This forms the total issue
allowed of £14,000,000, which deducted from the total
liabilities not covered by the bullion, lea% es £3.500,000:
which is about the amount of the " rest," or real surplus
capital. Hence nothing can be imagined more easy tha4l
the transition will be into the new state of things.
follows, that whatever alteration may eventually talc.'
place in the total circulation must proceed from the de;
wands of the public. The state of trade, therefore, sa
the importation or exportation of the precious meta'::
will in future govern the amount of money, and not,
has too frequently happened of late years, the artifictali
abundance or scarcity of money influence trade all'
prices.

into THE
work.COLLIERS'
m stillen meet
continues, aalrthroowug, although number of fhtahvee mbeenenh:nvaethth-:
STRIKE.—The turn-out at Clay - r,nis
Fors some time past, the men in the C°s
employ'necessity of being protected by the constables, from
crowds of women and lads by whom they have beeni as-
crowds
sailed ; and the disturbance has at length riPened .
uproar. On Thursday night, as the men were returning
home, a mob of about 200 women and boys assailed the::
with hooting and annoying language. Mr. Alsop Scnit .
the constable, immediately attempted to take the for:7:
most into custoly ; and the mob immediately closed uP 7
him, and beat him severely about the head with a stone
The constable is confined to bed from the effect of the
injuries he has received. We understand that the Swrotin_
wick, Pentrich, and Ripley collieries have got to vi
.21
their full complement of h,nds. In Staffordshire
_!_lr
w°
turn-out may be regarded as generally at an end. " „A'
are happy to learn that the colliers and other workrnteos, "
to
R. E. Heatheoate, Esq., at Apedale and Woodshu
their
the number of about 800, have at length resumed __
labours, after having discontinued them more thal, I"
weeks.—Derby Mercury.

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