Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1889-08-14
BANK OF ENGLAND.
Something About the Rich Old Lady Oi
ThreadneedIe Street.

Something About the Rich Old Lady of
ThreadneedIe Street.
A recent trial in London, Eng, in
which the conversion of a New York draft
into Bank of England notes formed a per-
tectlng link In the chain of evidence by
which the prisoners were convicted sug-
gested TO the New York Graphic brief de-
scription Of the banks methods with regard
to its issue.
The paper on which the notes are printed
is made by private factory in Yorkshire
under strictly guarded conditions as to the
water-mark, which is SO conspicuous feat
ure. 1t is Of silver white and so strong
that it will sustain fifty pounds in weight
when suspended at the corners. The print
ing is performed at the bank In Thread
needle street, including the signature of the
nominal maker of the draft. The drafts or
notes used formerly to be signed by assist
ant cashiers, but the issue eventually be-
came too large to admit of sign manual
0elng issued, so printing was substituted.
Each individual note as soon as issued
has its number, letter, date and denomina-
ton placed to its debit in ledger account,
the per contra being filed on the return of
the note, perhaps the next day. Some years
ago lot of FL notes issued in the middle of
last century were handed in for payment
A reference to the ledger of that date
showed the credit side of the note with cor
responding numbers to be open, so the
drafts were duly honored
The lowest denomination now issued is of
e5, the highest of 910,O0O A notable feat
ure OF the Bank of England note, when
compared with that of other issues and
countries, is its crispness and clearness.
The simplicity of design and .clearness of
lettering and figuring are very conspicu-
The xyh yhxyr NO 6vA
and foul Bank of England bills or bank
notes, as the Englishman prefers to call
them, arises from the custom of the bank
never to issue one of its notes a second
time. This rule is so scrupulously observed
that should thousand notes of a5 each
issued ii the morning in exchange for gold
at the issue department come into the hands
OF the banking departments as a customers
deposit in the afternoon, possibly without
having been united, they would be imme-
diately Cancelled. This cancellation is per-
formed by tearing off the signature corner
of each note, the number and date being
first recorded by the receiving clerk on his
counter cash book
The mutilated bills at tie banking de-
partments are collected at short intervals
by clerk from the accountants depart
ment, where they are assorted into their
respective denominations and placed to
their individual ledger credits. They are
then stored, and after ten years. interval
consigned TO the flames.
The detection of the forged bank note is
almost inevitable under this system. Sim
ply to initiate the paper is difficult, the best
imitation being readily perceptible to a
practiced touch. To counterfeit the print
ing IS almost impossible, owing to the alb
sence of complexity TO confuse the eve, and
"a third To- 4l.,,
rapidly scans the notes before shoveIing
out the gold in exchange is a peculiarly
known only to the initiated.
Should a forgery slip through these
guards the number and dates and denom-
ination must all correspond with the ledger
entry, and should all these agree the
chances are that the legitimate note will
have already filed up the blank.
1t is the rule in all London banking houses
and in most private establishments TO re-
cord the date and number of every bank
note passing through their hands, together
with the name OF the person presenting it.
The Bank of England, moreover, requires
the Endorsement of the holder of every note
or parcel of notes presented for exchange
for gold or for notes of other denomina-
tions. This system greatly facilitates the
detection of fraud, and in the case which
gave occasion to these remarks was the (i-
rect means of establishing the prosecuting
attorneys theory.
The actual cost of each Bank of England
note issued is about five cents. An ordi-
nary days issue of notes with correspond
ing number of cancelled, is from 10000 to
$4,000. but when forgery is known to be
afioat all Of that particular denomination are
poured in by their holders for exchange or
redemption, and as many as $1,000 notes un-
der such circumstances have been presented
and Cancelled in one day.
AS an Offset to this expense the yearly
gain to the bank in notes destroyed by IRE
and water amounts to q large sum, which.
however, is taken into account by the Gov
ernment when adjusting its National debt