Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-06-29
+ i.ic subjected the Bank to considerable
= tn3 4 treat drain Of treasure

'lc amount OF tielE treasure, WOUlu nave
ihr eject of posiponing the period at
WHICH The termination OF the Restriction
Eau take piace, without producing, on
tie other hand, any advantage whatever
Ia the country, while the exchanges and
the price OF gold are in their present state,
Sour CGmmittse were induced to recon-
ntSud 10 the House, III their FIRST Report,
the Immediate enactment OF a law la SuS-
pend all payments IN gold COIN by iic
Bcmk. uulIt your Commiliee might be
enabled 10 present To the House their view
at the whole subject which has been re-
fcrfed 10 their consideration.
The next important peut 10 which the
Cnmmutee wilt cali ihe attention OF the
House, * The amount OF the issues o! The
Bank of EnSinnt, which, are outstanding
ippu Snvernmeut securities: or, IN other
words the amount oi the debt due by
the public Ia the Bank of England.
The necessity oi the repay nent of
iarGe portion of that debt has been so
earnestly insisted on by the Bank, aud
tae nature aud extent OF the Conrex,on
between The Government and the Bank,
iHvnlves so many important cousidera-
tons, that your Committee deem II IN
cumhen, upon them To enter into some
detail with respect 10 the origin and gra-
dual increase OF the advances made by
me Bank OH behalf of tue public, aud the
elf,cI which they have, when carried 10
the amount at which they at present
stand, of deprving The Bank of tina!
control over Their issues of notes, the
Possession of which is deemed by them an
essential rr'h uinary 10 Tie resumption of
ca 'hpaN mems.
In The Appendix 10 the Report will he
foun! an account Of the amount of adj
vanceS made BY tie Bank of England to
= ~!
other securities from ihe year 1872 To the
laics, period Ia which it can be made up
The first item of this Account, euiilied.
An AdYaHce ont ui sums issued Tor the
payment of dividends now amounting 10
TIE su,a OF ( ,09S $50 ought not, In The
opinion of your Committee, 10 be con
Siirreti as Any portion o! The debt due by
tie Government to The Bank. !, arises
from money originally lodged by Coy
srmmeut at The Bank for payment OF d.
vId"nds 10 public creditors, which not
having been claimed, has been withdrawn
om lie Bank, anei applied Ia The public
service, under the provisions OF Acts of
the Legislature passed in the wears 1871,
l3hS, aud 1916. II is not therefore an
N iVauce from HE funds Of the Bank, bu,
II l. Tie property of the public creditors,
Which las been made available for public
purposes, until demanded by them.
IL viii be seen from the Account, that "a
great proportion of The advances of the
Bank are a, present made under the two
heads Of " Eychequcr Bills issued, and
EXchrqurr Bills, purchased ;" aud be-
tore tie Committee point ont the d>tinc-
f:on between those heads OF the Account,
they viii shorl, advert 10 the laws which
t.av" been passed sine the institution of
the Bank for The regulation OF their adj
vance To Government
On the original establishment of the
BanA, by the 9th and 9th William aud
MARY, penalty is imposed upon til
Directors, II they purchase, ON account
OF the Corporation, any Crown lands, or
If they advance 10 his Majesty any sum
oil money by way of loan or anticipation
on any branch OF the public revenue,
other than on such funds only on uhich
credit of loan Is or shall be granted by
PariiAnesf. Such credits have ever since
been granted from time 10 time, and adj
rances made upon Ihem. The amount
annually, from The year l777 10 the year
1892, extracted from the documents pub
l!Shed IN the Report of the Committee of
Secrecy OF 1897, will be found i'm the Ap-
pendx.
IN the year 1895 an Act was passed,
protecting he Governor and Company of
TIE Bank OF Eagiaud from any penalty.
on account CT lAe!r having advanced, or
advancing IA iu;are, any sums of money
i. payment of bills OF exchange accepted
by Tie Lords O! the Treasury, and made
PAYABLE al the Bank, but not charged OH
any branch VI the revrnue The motives
for passing this Act are fully detailed in
the ev deAce gwen by Mr.. Bosanquet,
then director OF the Bank, tn the Com.
mlitee OF SecreSy III the year 1907 He
states, " that II hal been the Custom of
the 'ank. time Out OF mIii, 10 advance,
tor The aiuDant ct such Treasury bills OF
exchange az were directed Tor payment 10
the Sank, until the amount was about %
or J. $4,000, when the Treasury usually
sent critters f0r The amount OF such adj
vance, 10 be set off from f4P respective
accounts ~ Which the bills properly be
jUngej. la ihe American war, they had
been pcr.n:lt,d 10 runtDa larger amount,
but he believed tiiey never exceeded
& 10000. Doubts occurred io him, when
Governor, whether tue penalties Of the
Act OF William Aiii Mary did not extend
10 tins Transaction; dni Tor HE purpose
Of removing them, the Act of i5D3 was
introduced aud passed" Ii appears 20
have been originally proposed, ihal he
BaHk Should he cmpowerrd ~ advance,
o. a limItedamOuut 0f est, 900 or T. 100 .UUG;
bat the Act pass Il without any IImna-
lion It's ~ ration being OF course con
fined 10 advances upon Treasury bills 81
exchange, Oh which species Of security,
M advances APPEAR 10 have been made
since the Resin ton.
BY AN Aci winch passed very shortly
stier the ii ST Restriction Act, the Bank
were prohibited ifoiR making any loan
or ddyduc Du account Of lie public SER
Ylce, during The continuance oi the Re
"a. o.. i.