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

BANK OF ENGLAND RETURNS.

The London Gazelle of Friday week contained they rst
return under the New Bank Act of the last session, v°l:
ing the position of the Bank of England for the wee*
ending on Saturday the 7th of September. Th's 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 wit°
all the information they can require for a complete une.le"
standing of the position of the Bank and the circulation.
In 1833, whe i the first returns were published, it maY.be
with truth asserted, that the principle only of publicitf,
was conceded ; for the returns themselves, being involve°
in the intricacies of three-monthly averages, were ricari,l
useless for practical purposes. The act of 1811 certair4
corrected this deficiency as far as regards the circulator!
and bullion, but omitted to make any alteration in sever,
other important items. The present returns, from the'
minute subdivisions, may perjiaps appear to some to errr
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, we/
also lead many persons into the error of supposing tni*
the recent alterations in the Bank Charter have been the
means of greatly increasing the circulation of the countef•
For this reason, and from there being no previous retailof sufficient accuracy to compare with the new one, it 15
proposed, on the present occasion, to give a descriptioe
of the various items, and to suggest such combination
anti comparisons as are considered essential, either when
referring the present to the previous returns, or the snui
sequent new returns with each other. For the purpose
reference, we insert the last return of the Bank of Eng"
land, published on the 10th of August, 1844, merely Pre'l
miring that this is not an actual return, but an average °'
the preceding thirteen weeks:—
Circulation £21,324,000 Securities .... £22,908,002
Deposits 14,090,000 Bullion
Total liabilities £35,414,000 Total assets
Taking the items in the order in which they are new
published, the fint appears in the Issue Department as
" Notes Issued," £28,351,295. Now, if a comparison I°,
to be made with former returns, those notes only most
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, short-
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 deposits,
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 not
forms a portion of the basis of the circulation. The pall_
having given up this and other securities and bullion!"
the amount altogether of £28,351,295, will clearly exPlelll
the amount of notes issued, which being greater rif
£8,175,025 than the sum in the hands of the public, th,
difference is returned to the banking branch to provider
for deposits and other purposes. The sum called
securities" amounting to £2,984,900 will be found,
added to the £11,015,100. to form the exact £14,000,000
11
allowed to be issued by the new act of Parliament. 1,.
compare the present statement of securities with forrue•
returns, we must form the following table :
From the issue department £2,984,900
From the banking department (Go-
vernment securities)
Ditto, other securities

14,554,834
7,835,616

£25,375,350.
The last published return states the securities to ut
only £22,908,000, showing a large increase, which is n°l„
easily comprehended. This is connected with the my e
obscure points in the returns. From the last returns th
liabilities were stated to be £35,414,000, and the asselo:
£38,487,000, showing a surplus, or rest, of £3,o73rke
Now this rest, added to the original debt due from lP
Government,that is, £ll,ols,loo,amounts to£14,088,1v;
and this would appear to be all the capital possessed in,
the Bank after realizing all their securities and paYi"
their debts, and which could be divided among the share:t
holders; but in the new returns we find not only the re-.5
put down at £3,564.729, but the proprietors' capital 1,1
stated to be £14,553,000, or more than it was estimate„,
when the rest was included. This part of the subject re
quires acme explanation. With regard to the bullion t't
best method for the present will be to add the amour
held by the banking department to that held by lbje
issue department,
ing periods. But whenever the new returns Of',
be compared with each other, this will not be P
cessary, as the"
department, before
of comparingheliien itte withth precede
ing
hpartieuiont:
branch will always be maintained at a moderate 4t'
by sending in notes to the issuing department if the':
is a demand for gold, and vie versa in the opposite I,
By the present return the amount of bullion i5£15,209,0„
showing a slight decrease as compared with the precea4
period. The public and private deposits must be adville
together for a comparison with former returns under '„,
old system. At a future period the two species of sir',
counts may be compared separately. It must be heof
observed, that we do not possess any correct accouotsco
the former amounts of the deposits, this item havingbe
left out of the returns under the art of 1831, and 09
published in the old useless form of three-monthly a`
of
rages. This is, however, only a temporary cause of errito
and inconvenience. The present return of the deeos,
p.
cwienipt lttrihotenh e,
securities,tfhoer
rn ertorrae: etorhfaegtrehe
eon fpr aepbueo,aaurrstk
tl:aobllb,eBeoangpo, Op
vaoeer.
yriNt:
oi•
gives a total of X 12,275,157, showing a decrease as drabpc thera
crease
siderable variation in the currency from the last return'