Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1847-01-21
BANK OF ENGLAND.
From tho American Traveller.

and enclosing nine open courts, from which
light is obtained for the numerous depart
ments of The cstablis~sT~,, there being no
windows in the exterior of the building
The principal entrance is through spacious
archway, that leads into large apartment,
which has more the appearance of a court
yard than of room where the ordinary bus
mess of the bank is transacted. Access to
this establishment is much more easy than
might be supposed. You can pass into ma
ny of the apartments without any obstruction.
In order, however, to see the vaults and
more private rooms, it is necessary to get a
pass from the President of the Bank, and
this we believe is not ordinarily obtained
except by means of some introductions to
the President.
Once within the lofty and jail-lke walls
of the Bank, and you are within a banking
world. The extent and variety of the rooms
astonish and bewilder you. You go through
long passage-ways into successive suits of
rooms; you cross court-yards into other
buildings, as it would seem, though really
the same, until wearied and exhausted, you
are glad to get out of the labyrinth in the
most expeditions way possible. Some 800
we know not how many workmen and serv-
ants of different kinds. Every thing that is
necessary to carry on the operations of the
Bank finds accommodation within its spa
cious walls. There is printing establish
ment and bindery, as well as apartments
for smelling and coming gold and silver
The machine for printing and at the same
time registering the bank notes, is curious.
AS fast as a note is printed, its number is
registered by the machine, the figures drop
ping, and new ones taking their place, as
the process of printing proceeds. In the
vaults may be seen bars of gold, almost lit
orally by the cord; much of it placed on
small carriages, ready to be rolled off to the
mint when needed. Nearly all the gold that
finds its way into the bank is melted and re-
coined; it generally being found slightly
short in weight, in consequence of the nee
essary wear in passing from hand to hand.
The quantity of gold and silver that is bro't
to these vaults and that is kept continually
in them is enormous. You may sometimes
see III tie courtyard adjoining the mint one
or more drays, drawn by two or three horses,
loaded with gold and silver; and in the ap.
propriate room, which is quite long one,
the ready coined gold and silver is piled up
by millions. This room is finished with pig
con holes, extending its whole length ON ell
Their side, closed by light DOORS These pig
con holes on one side are filled with small
bags of specie; and on the other side, with
bank notes. An order comes for thousand
pounds, small bag is drawn from its rest
ing place, and the order is executed An
other comes for G300, 900 in notes; six
small slips of paper are handed out to meet
the draft
This same Bank of England is a most
wonderful and all-powerful monied estab-
lishment. The lowest amount of bullion
that it has had in its vaults for many years
was 2 ~ millions pounds sterling, or over
time, it probably has nearly seven times tina,
amount.
There is no bank in the world that will
compare with the Bank of England as &
bank of deposit and circulation. Its great
ness may be attributed mainly to the pecul
lar favor of the English Government. The
Bank was founded in 1894 and from {
short time after its establishment (l6OS) til
1926, no company with more than six part
ners was allowed to issue notes payable or
demand in England or Wales; and ever
now, the same restriction and prohibition
continues in force within 65 miles of Lon
don. The Bank of England is the Govern
ment bank, receiving for Government the
produce of all the taxes, loans, &c. ant
paying the interest ON the public debt, the
partments of Government. For this service
Al. L q
and the use of all balances of pnblic none.
in her hands. The Government is also
borrower from the Bank to the amount o
above eli 100000. This furnishes secu
rity to the public for the payment of thu
notes of the bank for all of this enormou
sum must be sacrificed before the private
stockholders or depOsitors of the bank cal
lose any thing.
Notwithstanding the enormous amount o
bullion in her vaults, and the unequalled ad
vantages which this bank enjoys from gov
eminent patronage, and its unrivaled occu
pancy of London, the centre of the moniet
interests of the world, yet the Bank of Eng
land has once at least been compelled t
suspend specie payments. This was IL
l796-l797 but its credit was not much at
iCOtCuj loi tlc JAIN was dDlc, even HiSh, u
show surplus stock, after all her debts
were paid, of no less than Sl5,573,0O0
and its notes were consequently regarded al
practically legal tender, and kept in circu
lation.
There is something noticeable in the pres
ent position of the Bank of England. TIL,
amount of bullion in her vaults for the pas
two years has been at least double the aver
age amount for 6S years previous; while thu
circulation of her notes has not increased il
any such proportion. For example, in May
1916, she had SI4 ,052, 926 in bullion, Will,
her circulation was only S2O, 256, TIT; an,
for two years last past, the bank has neve
had less than Sl3, 205, 796 in bullion, an,
has never had circulation over S22 1877 81:
and never but once so high as that. In pre-
vious years, as in 1889, 40, Al and AZ, sh,
circulated from 10 l-2 to lS Ia millions o
/ notes, with bullion in her vaults varyin,
I from 8 IA to 2 l-2 millions; and for l,
years in succession, between 1902 and 1871
inclusive, with bullion varying from &c, $50,
$40 to sf2, 036, $40, the bank had a circula
ton of from els, ls6, $50 to 627 1907 900
1t would seem, therefore, that the bank j
j antlcipating some criS;s in business affair
~