Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-06-29

ton oi them required by the Bank yet
they think II necessary To observe, that I'm
determining the actual amount ofthe debt
due TO the Bank on account OF these adj
vances. AN allowance ought io be made
in favor of the public, to the extent Of tue
balances of public money deposited al the
Bank.
The attention Of Parliament appears 10
have been first called To The extent and
operation OF those balances, in the Report
OF the Committee on Pablo Expendl.
ture, presented IN the wear 1907 from
winch u appears that the aggregate a
mount OF the Public Money deposited
at the Bank, was then calculated 10 be
,l04.0l9 f; aud sum equal IN 8 per
cent. interest, on the average balances IN
question. was considered, by That Com
mittee, moi far from the amount of the
rrofits derived by the Bank from this
source.
The average amount of public balances
held by The Bank appears to have been
abou, eleven millions, from the year 1907
10 The year 1916; and i'm consideration Of
the advantage resulting to the Bauk from
The possession OF them, the sum of three
millions was advanced by the Bank to
Government, without interest i'm 1903.
which advance was continued, under the
authority OF Acts passed by the Legisla.
ture, to April, lSl9.-Since the wear 1916,
the public balances held by the Bank
have been diminished, and their average
| amount IN the year 1913, did not exceed
the sum OF seven millions. Their amount
has been still further reduced by the ope
| ration OF an Act which has passed i'm the
| pr sent Session, which makes the growing
produce of the Consolidated Fund avail
able TO limited extent, for the public
service; and IN certain degree within
those limits lessons the benefit previously
derived by the Bank from lis accumua-
ton from the first to the last day of each
quarter.
1t appears, however, TO the Committee,
That whatever may be, either now or here
hello by the Bank, that amount ought al.
ways 10 he kept in view, and allowance
made for II when the advances from the
Bank to the Government are under cons.-
dera,ion Tor IL is clear, that If a final
settlement of this account were to take
piace, the pubic money deposit, q with
The Bank must be set off against the ad.
VanceS made by them To the Government
upom EXchequer Bills, and other securi-
ueS bearing interest.
In confirmation uIthis view Of the sub
Ject, the Con:miitee beg leave tn refer 10
the evidence oi MIR HaldInand, now one
OF the Bank Directors. He states, ,ha,
III is his opinion, that a sum OF from 8
to 10 millions should be repaid 10 the
Bank by Government. surprising the
pubic balances to r"main without any
considerable decrease in amount" And
being asked, "Does the aggregate
amount of such balances operate a. a di
mnutlon OF the total advances made by
The Bank TO the Public 2" he answers.
Yes, IT does"
For the reasons alleged, il appears to
y"ur Committee, thai slthough The amount
OF lie advances of the Bank upon Go
Vernmrnt Securities is accurately stated
III The Appendix, yet in determining the ef
feet which these ad, ances have of dimi-
nlshing the controui of The Bank over their
issues, deduction must be made cores
pondlng IN amount TO the average sum
held Tor any gwen period BY the Bank
as deposit of public money, since that
deposit, by l'sscning the amount of notes
III circulation, restores 10 the Bank in
proportion To Its extent, the power of DC
c~ding to the applications made TO them
Tor Tie discount of the mercantile bills.
Your Committee trust they shall not
considered to have entered into unne-
cessary details i'll having thus given a full
exposition Of the relations between the
Government and the Bank. Ii will be
seen by reference To the evidence thar.
the amoun; of their advances TO the pub
lie Is urged by the Bank as one of the main
lmpedlmenis TO The early resumption of
Cash Payments and that IN order 10
make preparations Tor their resumption.
The Bank require repay ment TO the ex-
tent OF ten millions. The Committee
was ANXIOUS therefore that the amount
and operation OF these advances, and the
degree to which their effect is counter
acted by the balances of public money
held by the Bank, should be clearlv I'm
derstood; and this appeared to them the
more necessary, as the Committee feel il
their duty TO close this branch of iheirin
curry, with an earnest recommendation 10
the House, 10 make immediate provision
for the gradual repayment to the Bank of
HAT portion Of the debt, which the Bank
require TO be repaid, and to establish
some permanent provisions, limiting and
defining the authority of the Bank TO make
advances tn the Government, anI To pur-
chase Government securities; and bring
ing under the constant Inspection Of Par
hament the extent 10 which that auiIori-
~ may he III future exercised.
III. Your Committee procee ed 10 The next
head of their inqury-The expectancy OF
revertlng TO cash payments, at ihe period
fixed by law for their resumption.
II VIII be seen, by Il reference 10 the
Papers IN the Appendix, that the Bank,
without departing from tie principles np
on which their issues on the discount of
mercantile bills have long been regulated,
have made very considerable reduction
III the amount OF notes outstanding, com
pared with Their amount at the COM
mencement of the year 1878.
From July TO December, 1917,