The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1873-11-23
The Bank Of Banks.
ENORMOUS BUSINESS OF THE BANK OF ENG
LAND.

ENORMOUS BUSINESS OF THE BANK OF ENG
LAND.
boston Commercial Bulletin
The limit of the issue of the Bank of
England in notes is ETA 100000. 1t dis
counts good bills to an enormous amount,
and makes immense advances accordingly.
1t also advances on consols, India securi-
ties and railway debentures. 1t keeps the
Government account and pays the interest
on the national debt. But the dividend it
pays it's shareholders has never exceed
ed nine per cent per annum, while many
Of the joint stock banks pay twenty; It is
occasions this, that being more than a
counterbalance to the gains both of note
issue and Government deposits.
Many persons in London still hold to
the exploded notion that the Bank of Eng
land fixes the value of money. Hence the
anxiety to learn the result of every weekly
sitting. You may know the day by the
crowd of respectable merchants who then
assemble around the doors of the bank
parlor. The session begins at twelve, and
lasts usually about one hour. If prolonged
beyond half-past one, the Stock Exchange
under the idea that some change of impor-
lance is being discussed. 1t has been said,
and not without q basis of truth, that, if
the Bank of England directors were to
sit four hours, there would be panic in
London.
THE BANK DIRECTORS.
The position of the directors of the
Bank of England is singular. On one side
public opinion demands large reserve.
1t is not only a resource when o panic
arises, but a safeguard against its arising.
On the other side the shareholders, who
want good dividend, press the directors
exactly the reverse way. The more money
lying, the less the dividend why not put
it to use7 In 1876 the banks dividend
2l2 the last dividend was per cent, and
the stock is 232. Over against that, the
London and Westminster joint stock bank
pays 20 per cent, and its shares have risen
from 81 to 66.
And yet, despite the greatness of the
80 enormous, and SO constantly is the diff
ference between the two increasing, that q
very serious question is pressing upon the
minds of the merchant magnates of Lon
don. In 1874 the liabilities of the four
joint stock banks were only fIO637, 900
the private deposits IN the bank were but
f3,000,000; to-day they are eel 900, 900.
Money will not manage itself, and London
has great deal of money to manage. Can
the Bank of England and the English banks
of to- day do it
THE ULTIMATE RESERVE OF ENGLAND.
The real financial condition of England
stands upon the reserve which the Bank of
England keeps. From the private banks
their reserve is deposited in the Bank of
England. From the joint-stock banks it
is the same. The Bank of England, there
fore, holds the ultimate cash reserve of the
whole Countrywide last reliance in case of
need. 1t is now above f10,O00,000. It
onght to be at least els, 100000" say the
olor orc &har ,UhH
wrong, the next great London panic, which
sooner or later is sure to come, will show.
For two and thirty years the Bank of
England had temporary lodging in the old
Grocers' Hall, in the Poultry. There the
business was conducted, in one long room,
''In one of my late rambles," wrote Addi-
son, I'LL, 81 looked into the great hall
where the bank is kept, and was not a
little pleased to see the directors, secre-
taries, and clerks, with all the other mem
bers of that wealthy corporation, ranged
parts that act in that just and regular eco
Monty" The 'Just and regular economy"
has grown with the rapid growth of the
bank in subsequent years. In l736 it had
house of its own in modest structure
set up in Threadneedle street, and the
building has been added to from time to
time till its present proportions have been
attained. 1t now gives employment to
more than thousand clerks; distributed
over some two hundred Offices and apart
ments. 1t has ten country branches, Civ
ing occupation to about hundred and fifty
other clerks. The governor, deputy gov
ernor, and twenty -four directors, who man
age this great machinery, SO manage it as
by it to regulate, to very great extent, all
the commercial affairs of England, and
even of every other country. The Thurs
day meetings in the famous b Ink Parlor
test and register the financial barometer
of the whole world aud their DECISIONS
have vastly more influence upon the hap
piness and activity of men than any re-
solutions of the cabinet councils, or any
proclamations of kings or emperors.
TIE DUTIES OF THE BANK.
Four great duties are performed by the
Bank of England. 1t has the custody of
about Ego ,O0O, 900 in gold coin and bullion
it manufactures and keeps in circulation
about 23s ,OOO, 900 in bank notes; it has