The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-03

This shows IN increase In the circulation Of the Bank
Oh England since the return for March s0h Of Go9s 900
IA 'has OF the private Banks Of England and Wales Gs
sss that Of the Joint Stock Banks Of England and
oo4j that Of all the Banks in Scotland CLOS 9i5
that OF the Bank Of Ireland f52 that of all the other
Banks in Ireland being adscrease Of f66o26. The total
increase in the calculations for the month amounts to
4i63i 2ii while the decrease in the bullion reaches
S47s oOo
The only that be given for this increase in
the circulation H. the payment of the dividends and an
increased activity of trade in the Provinces The most
important feature in the last return is the decrease that
hos taken place in the amount OF bullion in the Bank OF
England The bullion in the Bank has been gradually
increasing since October 1885, at which time the amount
was reduced to OO0 From this sum, the amount
has reached 900 The turn in the current with
the bullion Of the Bank caused undoubtedly, more by
The result OF stock speculaons than by any balance OF
trade against the country Exchange has within short
period been in favor of Holland Hamburg and Parisand
specie has probably been required to regulate the dey
sDce.
The English papers are filed with remarks in relation
to the changes proposed by the Ministry in the banking
system OF the kingdom of Great Britain. The plan pro-
posed e wishes of the government OF the Bank Of
England but the organs of the private and joint stock
banks loud in their denuncations of the contem.
plated system. The Bank Of England is to retain ts pre-
sent privileges but there is to be complete separation
between its two departments. Of issue and banking
which arc to be managed by different officers The two
departments to be distinct possible The issue
department to be under certain restrictions and the issues
to be based public securtes while the banking de-
partment is to be unresransd The issues OF the bank
to be limited to ETA 600 Of which f 900 is to be
occurred by the debt owing TO by the government and
the remaining fs 900 600 by Exchequer bills and other
Government securities. BY the consent Of three men,
bors Of ibegovernmon the bank extend its issues be-
yond GA 900 o0o but all profits the increased issue
goes to the State The charter is to run for twenty
one years, with Liberty at the end of ten for Pariia
ment to interfere giving notice At the close Of
speech proposing this system Sir Robert Peel introduced
the annexed resolutions -
81" That is expedient to continue to the Bank of Eng
land FIR time to he limited certain of the privileges
by law vested in that corporation, subject to sch
dons may be provided by act to be passed for that
purpose.
- That is e1pedient provide by law that the Bank
o England should henceforh he vded into two separate
Department. exclusively confined to the issue and
circulation OF noes-the other to the conduct Of banking
business
80, That ii is expedient limit the amount of secur
ties upon which shall henceoth be lawful for the Bank
OF England to issue promssory notes able to bearer
on demand and that such amount shall only be increased
under certain conditions to be prescribed by law.
"a. That it is expedent provide by law that week.
ly publication should be made by the Bank OF England Of
the state both OF the circulation and Of the banking
parmen's.
IS. That it is expedent repeal the law which sub
cts the notes Of the Bank OF England the payment Of
the composition for stamp duty.
20 That in consideration Of the privileges be con-
tinued to the B,nk Of England the rate Of fixed annual
payment 70 be made by the Bank to the public shall be
ESQ 900 per and shall he betrayed by deducting
the said sum from the sum by law payable TO the
Bank for the management of Doc pubic debt
az That in the event of any increase OF the securities
upon which shall be Lawful for the Bank OF England to
issue such promissory note aforesaid further annual
payment shall be made by the Bank of England to the
public and above the said fixed of 100 0Oo
equal in amount to the nett profit derived from the pro-
mssory notes issued on such additional securtes
IS That it is expedent to prohibit by law the Of
pronsissory notes payable to bearer demand by
bank not now issuing such notes, or by any bank hero
90 That it 10 expedent TO provide by law that
banks in England and Wales as issue promissory
such notes. subject to such conditions and to such
limitations as to the amount of issue may be provided
for by any act to be passed for that purpose
60 That 1t is expedient to provide by law for the
weekly publication of the amount Of promissory notes
payable to bearer demand circulated by any bank
th0rised TO issue such notes.
al That il il expedient TO make further provision by
law with regard to joint stock banking companies"
The separation proposed between the department of
Issues and that general banking strikes being Of
the greatest importance. It will undoubtedly create a
greater regularity in the amount issued than could exist
where the same party and power governed the issues by
the demand caused by general banking operations Those
who hold the privilege of leaning money, should
be Invested with tho to create it. The extent Of the
first would be invariably governed by the amount put out
of the other and repeated abuse Of this power would
duso thegreatest and contracons
The system introduced in relation TO banking Great
Britain, will also have another very great advantage and
that is the increased security guaranteed to the bill ho
der The issues being based public Stocks cannot be
otherwise than SAFE The public will be that the
issues are governed by known laws instead OF being sub
jsc to the fluctuations Of trade and commerce. to the
caprice OF few bank directors who wish to advance
depress prices may best suit their interests The
important feature in the system Of banking that
relating to the issue ofpaper money wholesome rerc
tons placed upon that department influence all others and
the greatest regularity The Of
the joint stock and private banks cannot under the
system exceed the average othe last two years. thc
fines them to safe limit and prevents any great variation
from the present amount issued The banks of
not 10 be increased consequently to the exist
ing banks nearly the present amount of issues the
next ten years The Bank of Englands present crcua
ton is about seven millions pounds sterling more than
that allowed under the proposed plan but the difference
IN the total circulation of the kingdom will not
be reduced this amount, as the average amount Of
other banks of issue will amount to little more
than their present expansion. The circulation of
all the banks will be reduced about e. 900 900
from the present amount, which, by the last returns
reached ES9 04 this will bring the toa down about
f3s 900 900 This amount cannot be increased on the
part Of the Bank of Engend without obtaining the
sent OF three members of the above stated
or on the part OF the joint stock and private banks with
out selling government stocks and gsting Bankof Eng.
land notes. BY the adoption Of these wise and
the publication of weekly returns the public are kept
constantly informed of the position Of the banks and the
extent Of the circulation knowing that whatever amount
that reaches is secure, and also knowing that cannot
go beyond certain limit Notwithstanding the many
advantages guaranteed to the joint stock and private banks
b. the proposed system, these institutions have passed
resolutions condemnng the measures proposed in the
strongest terms The principle of regulating the cur.
reacy by The stock of bullion in the Bank of Eng.
gland is one to which the joint stock and private
banks have always been opposed They have here.
totore felt Called by the connection that has existed
between them aud the Bank OF England and made great
efforts during the agitation OF the bank question dis.