The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1885-05-02
The Bank of England.

ssThe Old Lady in Threadneedle street" is
the familiar title by which English people des-
ignate the largest and most important money
dealing institution in the world. Mr.. May,
a clerk for forty years, gives in last month
"Fortnightly," Just reprinted here, good
account of it. Established in 1894, mainly
by Mr.. W. Patterson, who died a poor man,
it began with capital of six millions of
dollars, all of which was lent to the Govern
ment at 8 per cent, the Bank receiving in ad-
dition twenty thousand dollars a year for
managing the Government accounts. Be-
ginning with fifty-four clerks, at cost of a
little over twenty thousand dollars a year, it
now has eleven hundred, who receive a mil
lion and half in salaries and pensions, and
have library and reading room, a widows
fund and guarantee society, a life insurance
company, volunteer company, and club
or dining room. Although established to
help the Government, twas obliged with every
renewal of its charter, ten in all, to purchase
the continuance of its privileges on very oner-
GUS terms. At one time the Government
owed it more than its whole capital OF sixty
millions of dollars, but in 1888 one-fourth of
this was paid off, leaving the debt at present
about fifty millions of dollars, and, as late as
1870, an act of Parliament provided that the
Bank of England should continue to be cor
poration until the public debt is paid off, thus
practically granting it a perpetual charter.
Its main business is series of loans and
advances to the Government, in anticipation
of revenue or of payment of drafts drawn by
Government agents abroad. The Bank of
England has number of branches in differ
ent parts of England, nine in the country and
one in London; but it has long since lost the
monopoly which it once claimed as matter of
right, of a joint stock bank in London, which
now is full of good sound banks on this basis.
The business of the Bank of England is
strictly regulated by law. 1t is divided into
the three branches, of LIST, managing the pub
lie debt, which consists only of the entries on
its books to the credit of the innumerable
holders; I'd, issuing notes, and, Sd, govern
ment and general bankers 1t has charge of
the debts of the Indian Government and of
that of most of the other Colonies, and of
many large municipal and other corporations.
For keeping the books of the public debt of
over three thousand million dollars, it re-
ceives nearly million of dollars year, but
out of this it has to pay four hundred and fifty
clerks, with nearly two thousand books to
keep. While the country banks have notes
out to the amount of thirty millions of dol
lars, the Bank of England has circulation
of more than seventy five million of dollars,
based on securities, Government debts, &C.,
and gold and silver, the latter to one fourth
of the amount actually in its vaults and set
apart specially to secure its notes.
The bank is obliged to publish weekly
statement of the amount of its notes outstand-
ing and of the securities it holds, and this
serves as a barometer to show the condition
of the money market of the world, for the
amount of gold received or delivered by the
Bank of England is published every day, and
ON this is based all dealing in exchanges, the
balance wheel of mercantile transactions
everywhere. The banking department, too,
publishes its weekly statement of assets and
liabilities, which shows exactly what ''re-
serves" it has to meet all possible fluctuations.
The bank is managed by a governor, depu
ty governor and twenty-four directors, the
two former receiving each five thousand dol.
lars year, and the latter each twenty-five
hundred dollars year, but as they are all
wealthy merchants and bankers, they give
away more than this in different charities for
the clerks. The governor holds Office for two
years, as does his deputy, and the objection
is often made that this causes too frequent
change in management. Whatever its faults,
it is still the first bank in the world of finance.