The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-08-02


Institutions, banks as well Is others,
sometimes attain, such, huge proportions
that they become unmAnSgeabls and falli
BY their oyn weight. Fears are even ex;
pressed for the Bank Of England. Among
others the London Sails, the new fuah-
cial paper, has created autter 10 Eng
lish financial circles by pointing outths
utter insufEiciency Of the Bank Of Eng
lands reserve, seeing that it has to do
tluty, not for the ThreGdneedle street Is.
tabiishmenls. alone, but ior. all The joint
stock banks "a well, WHO expect the
Bank Of Englandto 6ome tolibeir help at
n pinch. The London World re-eehoes
the alarm sounded by the SldtfSt, and
says the Bank 81 England has OF late
years changed its character, and has be-
come practically The bankef9 bank, ID
stead Of the bank Of the nation. It's re-
serve Is very much larger relatively 10
it, liabilities than those Of other banks,
and il would need to be, for the joint
stock banks have NO, cash reserves to
speak OF, relying as they do upon the
central Institution, 10 which, therefore,
we must apply very different standard
from what is applied to them. The cash
balances Of the world, rs we'll as those oil
the United Kingdom, centre In London.
Should there be, from any Cause, q sud-
den demand for money for the Continent
or the Provinces, there is an instant
drain upon the bill. brokers and bankers
Of the metropolis, who, in turn, fall upon
the Bank Of England; and in ap emergen-
ey, such as NIGH, be caused byGa war
with Russia, the Bank act would have to
be suspended, and there would be
heavy risk Of the isWhole deli
icately interviewer net work OF credit
collapsing like a,house Of eards. Things
are not as they were in 1797, continues
The World, "when the bank was more isos
lated than It is now, or even as they were
10 ls47, 1857 and 1856; at each Of which
dates the Bank Act had TO be suspended.
At these several periods what are called
transfer credits by telegraph wire and
transatlantic cable were unknown. 1t
Ia obvious thAtthe suddenness with which
demands for cash eau now be made does
not leave the time there was formerly 10
organize means Of meeting sudden strains
upon our system OF credit. No doubt the
telegraph facilitates ready action on.the
part OF the bankers in self defense swell;
but in case in which time ia absolutely
necessary to staye OF danger, 1t vastly
adds to The difficulties Of pulling through.
The Bank Of England has virtually
ceased to be the peoples bank; and while
there is seeming safety in It's rediscount-
ing paper Of the bill brokers, credit com.
pauies and joint stock banks, there Is
actual danger. At one time the bank re-
fused to allow the London and Westmin.
ster Bank drawing, account. There
ought 10 be entire dissertation Of the old
lady from the other banks, else all may
20 down together. Unless there ", the
Bank Of England cannot become better
than it is at present, or show itself more
worthy Of its quasi national position and
privileges. Il has lost its controloyer the
money market, and yet 1t has TO bear all
Tue burdens that are involved in its POSI-
lion as the centre Of our banking sys.
lem. The consequence that week BY
week the reserve is dwindlins away, and
yet The Bank Directors are afraid 10 put
up the rate TO project IL because the out.
side market would not follow them, and
they might lose even the small discount
business they have. THIS regulation Of
the rate by reference 10 the banks busl'
ness position Il another weak point.
Why should 1t not insist. upon the joint
stock banks helping 70 protest them-
selves by keeping large amolnt at their
credit, and BY thus wiihdraxingthe a9att.
Ing capital from the market, make money
dearer? The joint stock banks would
lose the power Of discounting so largely
as they do now, and, therefore, would
lose some portion Of their Heated profits,
but they would be all the safer for the
precaution, aud the pressure on the Bank
Of England would be lessened. The old
lady OF Threadneedle street has now. fall
en- into the ways OF routine, and acts too
much like mere huge machine. None
Of the shareholders, with the single ex'
ception Of Mr.. Jones, the Waterman OF
the Strand, who, with the zeal Of his pro.
Iession, tries to wind up the bank, &C
that it may go in the right direction,
take any part in the proceedings at the
periodical meetiugsi or. even seem 10 in
ierest themselves in the banks affairs!