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

when the restriction Act passed. the "a
mount of advances made by the Bank to
Government, and of the Notes ou,siand-
ing on the 25th February in each year,
was
BANK NOTES. ADVANCES.
l7e0....... i0.2I7 800. a. 0S, sos
l79l.......ll $50, li0.. ...... 9603 ,97S
1872. ......ii ,3i0,Sio. S39.33S
l7y3...... II isl $50 ........ 9.OG6.G9S
lI4...... ,963 $50. S1s6 5Il
l195.. 500, 100 ......iIIll23O
l1J6..... IL .U3s, ll0........Il.ItS73
Tie amount, therefore, OF advances 10
the Government does not appear to have
borne, for some time previously to the
Restriction Act, much less proportion
To the total amount OF Noes outstanding.
ihan The advances s!nce 1914 have borne
tn the Notes issued III corresponding ne
ripds.
Ii twill be seen, that material re,Iuc-
iion OF the debt to the Bank took place
between the meath of August, 1915, and
The month of February, 1916; il having
been reduced in the latter period 10 the
sum OF 10 9SS, 300, deducting the adj
vancrs from unclaimed Dividends.
This debt was again increased be-
tween February, 1916, and August fol-
lowing.
In that interval, War Taxes 70 very
large addition, authorised by several Acts
Parliament, was made 10 the Untunded
Debt, and to the advances of which the
Government were indebted to the Bank.
The amount of those advances WAS again
reduced from 1877 900 600 To col 900, 900
tween the ID of August, 1918, and the
| lii Feb. 1910.
IL was proposed, in May, 1918, to repay
to the Bank sum from eiuht 70 nine
millions, by gradual instalments of one
million month. from the month of Nav :
the Bank having then considered that
repayment sufficient (according TO the
evidence OF the Governo) 60 enable
them TO make the experiment of the re-
sumption of Cash Payments.
10 meet these charges and the services
OF HE year, and also 10 effect further
reduction ofthe Unfunded Debt, provi-
SION was made, by loan of three mill.
0ns III money, and gradual funding of
txchequer Bills 10 the amount of about
y millions, with power 10 the subscribers
OF making money payments, instead of
bringing III Exchequer Bills and it was
understood that the Bank should retain
one halt OF the monies paid in, TO The
extent OF the monthly payments above
EeniiOned.
II appears, however, that TIE sum paid
III money on account oil this loan fell short
OF tie amount which was expected, and
The repayment 10 The Bank did not much
exceed tive millions al The end o. January,
1919 one million of which the Bank do
moi consider az an effective re- payment.
interest TO That amount being due TO the
Bank upon the whole of their advances.
The amount Of the advances of the
bank TO Government was, on the Doth
April last, < IS, 43S, 900 the sun, of
,o06,S2O being deducted from the ac-
count furnished By the Bank, as The A.
mount ofadyancrs on sums issued for lie
payment OF dividends
II will be seen by reference 10 a COM
Enumeration made by the Court of Direc-
tors nt the Bank io the Committee. as
well as from tie whole tenor Of the evil
deuce OF the Directors who were examin-
9 personally before hem, that they CON
sider Tie rrpaNmcDt of large proportion
OF those advances essentially necessary
preparatory {" tie resumption OF cash
pay mems. As the notes which are iS<n
ell by The Bank upUn The discount of mer-
cant!l" bills revert to them al the eXpira-
ton OF The period which, those bills have
10 riIr, and which never exceeds sixty five
days, II Is clear that that portion of their
Il
ilIcT discretion whilst over the notes
which are issued III consequence of adj
NanCes 10 Government, they have moi
practically the same control. To what
ever extent these advances may be redu
eed, the Bank vii gain corresponding
control over The amount Of their circula-
ting paper, and will be enabled 10 supply
Tie dirnlnuiIOn OF notes thus created by
an increase oil their issues, either upnID
Tie discount of mercantile bills, or by the
purchase al bullion, OF IL necessary 10
makea reduction III the total amount of
notes outstanding equal TO the whole or
any part Of lie repayment.
The only mode, during the suspension
OF cash payments, by which the Bank can
effect reduction of their Issues, surprising
no part of the advances made by them 10
the Gov ernmenl to be repaid, is by limit
Ing that accommodation To trade, which
HEY have long been IN the habit Of grant
ing, by the discount OF mercantile bills
OF undoubled solidity, arising out of real
commercial Transactions, and falling due
within short and fixed periods.
Although the amount of HE advances
made by the Bauk Oh public securities
Is accurately stated IN the account in tie
Appendix, and although the Committee