The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-01-30

b. TX Bank discussions now form one OI-lne
leading topics Of the. English papers, as well
as the chief theme of essayists in the news
papers Of several Of the Western States. The !
charter of the Bank of England, which was
in 1871 under the ministry OF Sir
Ropert Peel, was modified to suit his views
To it was given the exclusive right to issue
bills for circulation as currency, in London
and within forty miles of the capital; with this
privilege and by its branches in the provincial
towns, it supplies the chief part of the cur;
rency for the Kingdom. tfEL
The issue department Of the bank was sepa-
rated from the discount and business depart
ment. They operate in some measure as two
distinct institutions. One experimenting the
supply of currency, the accumulation of Bull
ion, and the redemption of its notes. The
other keeps the accounts with depostors and
the commercial community. 1t borrows the
notes from the issue department, and transl
fers to it the Bullion it receives in. its dealings
Thesissues Of the Bank arelimited to two and
a half for one of specie in its vaults. The
currency must therefore auctuate with the
increase and diminution Of specie in the Golfers
Of the Bank; the money market grows tight
and easy in London, as the bullion rises or
falls in the hank. 1t was for Ibis reason that
the quantity of bnlliQa exhibited the bank
in its weekly reports, was an object Of 50
much interest during the recent money crisis
in Europe. The loss of 81. 600 in specie com
PEELED the bank to reduce its circulation twice
the amount; and thus one of the great bene-
fits of a paper circulation, which is its ex-
FEASIBILITY, and its power to supply the vary
ing wantsro of commerce, in ali its emergencies
was destroyed by this arbitrary restriction
It is founded upon the idea chat i, bank note is
Exclusively a representative of coin; and is
fonly to be redeemed I'M coin. This is not cor
rect in practice. The bank, note is no more
representative Of the coin in thevadlt than il
lis Of the bill Of exchange for which the note
was given cut. The note is representative
of all the property in the bank, and in Dgac-
tiee the bank note is redeemed by giving ur
HE bill Of exchange, in discounting which tbs
Bank note was issued. NEUTRALITY-SUSPICIOUS.
Of all bank notes are redeemed in this way
But theorists deal with the matter as if bank
Fnotes were to be redeemed in no other way
than in coin. Between bank and the public
SO far as bank bills are used as currency, it is
cut an exchange Of credits, and in a genera
settlement. the holder of the bills is a debtor
to the bank. and j t is. an offset of indebted
ness. It is only when bank has loaned -hel
funds to inso.yent men, or for improper periods
that she can be called on to redeem any larg,
portion Of her notes in specie.
The restriction has beenfeundan inconve
nient one i'm practice, depriying the Bank oft:
power to aid commerce in its greatest need
and aggrayating every pressure by reducing
its issues two pounds for every guinea taker
from its. vaults, As when the French. Bank
drew $1,000 from its vaults in specie the Eng
ish Bank had to call in $1,000 of its note:
from the English merchant, at the moment
when he most needed it's use, and when the
bank BY its own necessities did not require ii
but was. Obliged to- obey the arbi trary rcquisi-
tiono its charter. 2 80 - r r o., 20 F" %
AT the hext session Of Parliament, the sub
Ijeet Of the re charter OF the National Bank
will come up for discussion. The matter is
already engaging public attention, and there
are three parties one for the renewal opthc
charter as ii now s;a second Tor still greater
restrictions on the issues Of notes; and third
for the removal Of ALL legal restraint, leaving
the subject to the naturaldaws of commerce
and currency. p The. London Times guided by
the doctrines oflorlner days is for restriction,
and q. renewal. Of the charter in its present
form, The renewal is advocated by all par
ties, and seems to be expected as a matter Of
course. 81 ,.g.I4a.. ....s ..s5s.i ,s.,., o,
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OF Changes Of State Constitutions BY
Legislative enactments, do not seem to work
very well. Massachusetts has got her funda-
mental law 50 mutilated and derangdc,
that it is diflicult to tell what it is. The
State of Mississippi is in the same predica-
,mcnt. Gov. McRae, in his late message,
points out the following serious difficulties,
caused by various incongruous amendments
by legislative action, which had been adopted,
without knowledge or consideration by the
people:
The questions of doubt under these amend
/ lr.nntS