The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1844-01-30 00:00:00

THE BANK OF ENGLA.::%rD.

The probability of the continuance of the Bank
of England's charter becoming an important object
of consideration in the monetary circles now the
time for the session is drawing near, a short view of
the different renewals of that charter may not be
uninteresting to the general reader, who has not the
means of information on this subject constantly
within his reach.

The act by which the Bank of England was esta-
blished is entitled "An Act for granting to their
Majesties several duties upon tonnage of ships and
vessels, and upon beer, ale, and other liquors, for
securing certain recompenses and advantages in the
said act mentioned to such persons as shall volun-
tarily advance the sum of £1,500,000 towards carry-
ing on the war with France." After authorising
the raising of £1,200,000 by subscription, this act
states that the subscribers shall be formed into a
corporation, to be called " The Governor and Com-
pany of the Bank of England." The Charter was
issued on the 27th of July, 1694. The first renewal
was in the year 1697, extending the charter until
the expiration of 12 months' notice, to be given after
the Ist of August, 1710, and until payment by the
public to the Bank of the demand specified. In
1708 the charter was extended until the expiration
of 12 months' notice, to be given after the Ist of
August, 1732; and by the same act (7 Anne, c. 7)
it was provided—

That during the continuance of the said corporation of the
Governor and Company of the Bank of England, it shall not be
lawful for any body politic or corporate whatsoever, created or
to be created (other than the said Governor and Company of
the Bank of- England), or for any other persons whatsoever,
united or to be united in covenants or partnership, exceeding
the number of six persons, in that part of Great Britain called
England, to borrow, owe, or take up, anysurn or sums of money
on their bills or notes, payable at demand, or at a less time than
six months from the borrowing thereof.

This is the famous act by which the monopoly of
issuing paper payable on demand was secured to
the Bank o England. In 1713, the charter was
renewed until the expiration of 12 months' notice,
to be given after the Ist of August, 1742, in which
year it was again renewed to 1764, and in that year
to 1786. In 1781 there was a further renewal to
1812. The celebrated suspension of cash paymentg
took place on the 37th of February, 1797. In 1800
the charter was extended to 1833. In 1819 "Peel's
Bill" was passed, rewiring the Bank to return to
cash payments. In 1826 the act was passed allow-
ing banks having more than six partners to carry
on business in England at a greater distance than
65 miles from London, thus partially abolishing the
monopoly established by the act of 1703. The act
under which the Bank of England at present holds
its privileges is dated the 29th of August, 1833, and
by it it was likewise enacted—

That any body politic or corporate, or society, or company, or
partnership, although consisting of more than six persons, may
carry on the trade or business of banking in London, or within
63 miles thereof, provided th•it such body politic or corporate,
or society, or company, or partnership, do not borrow, owe, or
take up in England, any sum or sums of money on their bills or
notes payable on demand, or at any less time than six months
from the borrowing thereof, during the continuance of the pri-
vileges granted by this act to the said Governor and Company of
the Bank of England.
The clause in the charter under which notice
would be given of its expiration is as follows :

•
And be it further enacted, that upon one year's notice, given
within six months after the expiration of ten years from the first
day of August, 1834, and upon repayment by Parliament to the
said Governor and Company, or their successors, of all principal
money, interest. or annuities which may be due from the üblic
to the said Governor and Company at the time of the expiration
of such notice. iii like manner as is hereinafter stipulated and
provided, in the event of such notice being deterred until after
the Ist day of August. 1855. the said exclu-ive privileges of
banking granted by this act ball cease and determine at the
expir ition of such year's notice ; and any vote or resolution of
the House of Commons, signified by the Speaker of the said
house in writing. and delivered at the public office of the said
governor and company, or their successors, shall be deemed and
adjudged to be a sufficient notice.