The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1873-11-23

be either sent to the mint, there to be coin
ed into money, or lodged in the bank. The
mint returns f3, LIS 10ad for each ounce of
gold handed to it but the delay that oc-
ours before the coinage is completed makes
it cheaper to dispose of the bullion at once
to the bank, which Immediately pays at the
rate of E3 1886 for each ounce deposited.
The bullion so received is slowed away in
bars, each weighing about 16 lbs, and worth
about $500, until occasion arrives for turn
ing it into current money. The relative
amount of gold and bullion, as we'll as the
quantity of both sorts of gold in the bank,
is of course forever fuctuating; but the
average of both is between EGO, 900 900 and
f22 100000.
MECHANICAL WEIGHING AND COUNTING.
Counting rapidly through ten hours
every day, q man would be occupied for
nearly three years in counting that number
of sovereigns. In the bank, however, the
counting Is done by machine. The weight
ofany given number of sovereigus is known
and to count q thousand or a million is as
easy as to count five. It's only necessary for
accuracy in the calculation that the coin
shall be of proper weight, and, as this is
also, on other grounds, very necessary,
weighing-machine, which is marvel of
ingenuity and accuracy. This machine
was invented by Mr.. Cotton a bank direc-
tor, in 1874. 1t is square brass box, at
the top of which is a long trough filled
with sovereigns, which drop one after an
other upon a balance, carefully, guarded
from currents of air and everything that
can vitiate the process. If the coin is cor
rect weight, it falls into one box if it is
faulty, it is kerked into another. Since
1874 not single error has been found in
the working of this machine. Twelve of
them are in constant operation at the bank,
and they weigh about $4,000 gold pieces
every day.
THE PAPER ISSUE.
That is the only mechanical process to
which gold money is subjected at the bank,
its manufacture being carried on at the
mint but paper money is all made in
Threadneedle street. About 900, 600 quires
of paper, carefully prepared in Hampshire,
are consumed each year in the priAting of
bank-notes, of which an exact equivalent
for the gold bullion slowed away is kept
in circulation, with the addition of El5,-
100000 for which there is no actual gold
security. That sum represents an accumu-
lation of debts due to the bank by the
Government, amounting to about Ell ,OOO,-
600, and a sum of ga ,000, 900 for which the
bank holds Government securities. The
ELS, ZOO, 900 represent all the paper cur
rency of the country in lieu of which the
bank does not issue actual coin or bullion;
and the interest upon this floating money
pays all the expenses of the bank, and re-
duces the taxation necessary to meet the
national expenditure.
1t was, as we have seen, mainly to re-
lieve the State of the embarrassmerts caus-
ed by it's debt that the Bank of England was
established. The national debt, amounting
to some f6, 00O,O 600 when the bank was
started, has grown nightly since then.
Every great war has added to it. The ten
years strife with France and Spain, ending
with 1850, caused an addition of s3I, 500 900,
&In cott1od
by the fighting of the next seven years
amounted to nearly f60OOO,OOO. The
American war prior to 1889 cost about
600, OOO, 900. and the long and ill. managed
war with France under George III. and
Pitt, fruitful in domestic misery of every
poverty to the rich, increased the debt by
f6OO, 600, 900. When peace was declared in
1915, it amounted to GS6l ZOO, 900, and the
retrenchments of more than half century
have only reduced 1t by quarter. The
bulk of this debt is known as consolidated
go, 900 holders, for each of whom a separ-
ate account has to be kept, and interest
reckoned up and paid every half year. All
this business, complicated by frequent
transfers, has TO he conducted by the Bank
of England, which receives in pay ment for
the trouble e3o0 for every s1,O00,o of
debt. The payment covers all losses
through accidents and fraud. The defal- |
cation of Astlett cost the bank G34O,O00,
and its losses by the frauds of Fauutleroy
were still greater.
THE NATIONAL DEPOSITS.
The operations of the bank in collecting |
and distributing the national revenue are |
quite as complicated. All the receipts of
ax-gatherers, and all t.4e proceeds of Gus
tom and excise duties, aud other sources
of revenue, find their way into the bank ;
and, in return, it has to meet the demands
of all the public departments for their sew
eral expenses, these demands being fire.
quently made long before the funds to |
meet them have been received. 1910 the |
nations account with the bank was over |
drawn some 100000; and in 1914 the |
balance on the wrong side amounted to
e3O, 100000.
Being thus the banker of the nation, the |
Bank of England is also the banker of all |
other bankers, each of whom keeps an &C
count with it, and draws from it each day |
SO much money as is required for the days
transactions. The mighty establishment
moreover acts for private individuals as
other bankers do. 1t keeps some 5000 pri-
vate accounts for millionaires, merchants