The New York herald., 1867-02-19
the BANK or ENGLAND.

The Birmtugham Chamber Of Cemmeroe %
the Bank Charter and Its EGecss.
(Birmingnam January 81 correspondence Of London
sometime whiiA the monctsrv n.n,c - -..s,. -,
year committee Il this Chamber OF Commerce -
appointed 70 take i9a consideration the Bank Charter
act deputation from u had also an interview with
the Chancellor Of the EAbequer about tho period above
referred % fos the Pupcsof urging tho wish6wsi q
the pressure 70 subsis,s another lstss
the Gevsrnor Of the Baak 4 KnsIsnd q NO - ~
disaonsi % ..us e. q notes ~,sno imposing ressOn
me following report from As esnuissss. which Aas
aasembled many times VIII . presented q sAs M
REVOLUTIONS on sn connnTu.
l. That the Bank sos should repealed and me gov.
q That illegal tender" should b. gold and silver. or
OF the value Of f1 aud uprds issued by the gov
ernmcnt payable on demand
other notes Of 81 and upwards tie extent Of hall the
annual revenue, not payable rgolo and silver but re-
secureS bv stock rSs Bsni css1sr %
ls44 besides restricting the isue OF PROVINCIAL banks
divided the Bank Of England no two departments-vx,
the issue department and the anking department and
authorized an issue OF notes the extent fourteen
millions lsince increased TO nften milIons payable on
s Do q I
land BY the government besg the bass which thcy
are issued enacted thS for all other notes issued
proportion OF at least hrSfourths Of the former 10
onefourh Of the latter yalso enacted that the bank
.ncGS ss Ss Scn % noss q: gold
further thai weekly stfcment should be published n
the London CassAe II ~ amount OF notes issued bv
the issue department the con bullion sna securities
IN the sams deparnep and also Of capital dcpu.sss
monsv ara secursiesin the banking department. ID
IelS sn act as ysso extending tho restrictions Of the
act Of 1874 20 &otlshd and Ireland Your committee
have carefully Sonstercd the objects sought DO at
ta,nsd By The s md also the way in which they have
onersted durAQ te past twenty two years The prin.
cinal objects 6f III act Of lsa4 appear TO be-
i To prcsideA paper currency regulated by law, par
Of tbe ss,ycs tkng based upon loan 10 government
To 10 ssc,rs the oonvertabnisy OF such paper cur
10 prwent panies and undue fluctuations in tho
value Of poney.
Your committee OF opinion that, however desirable
tho the first two objects may be- the last
4 Inc ons whth OF paramount Importance 10 tho COM
ncrce OF hecountry and that securing the first two
tho list anemost important has been sacrificed To ebov
ths Is ody necessary to refer 10 the fact that while
the ten variations IN the rate Of discount for the
years previous TO the passing OF the ACT OF
ia have been hundred and changes
shc and mat while the extremes OF the were four
p cent ard six per cent during the former period they
we two per cent and ten per cent during tho latter
YDur coumttee are Of opinion that these uctu
aons are caused mainly by the feelings OF dsrust which
10 working OF the act Is calculated TO produce In circles
hsy anected by the slightest indications Of impending
dmcuy They think that operation tends 70 contract
the currency at time when there should be special
means OF expanding H. The trade Of the country having
increased threcfold since 1s44 there should be the
means ~ command OF increased facilities for carrying IL
on since the act has been operation panics have
pecn as frequent and moro serious than before The
repeated suspension OF the Bank act and the elect such
such Suspensions have bad In arssng panics are fur
snel PROOF wa. tno acs e unsound IN principle The
committee find that has failed a. corrective measure
ana mat hgh rates OF interest," instead OF attracting god
- was anticipated have tended impair English credit
NJ na"~As eus ~ London which ferm Arysly a tptAn