Freeland tribune. (Freeland, Pa.) 1888-1921, 1892-01-07
DEALERS IN MILLIONS.
MOST FAMOUS FINANCIAL INSTJ-
TUTIONS IN THE WORLD.
England and Frances Two Great
Banks-Treasure in Their Vaults
That Might Purchase Kingdom
History of Each.

On the first day of January 1895, the
Bank of England will celebrate the second
centennial anniversary of its establish
ment. Of the many great banking insti-
tutions in the world none is more widely
or better known than this bank. This
famous institution was founded in 1884
by William Patterson, Scotchman, and
the origin of banking in England, in any
thing like the modern sense of the term,
may be said to date from that time. On
January l, 1885, the doors of the bank
were opened for business. Its capital
was then e1,200,000. Two years later it
was increased to e2,2O1 900. A dozen
years later 171O it was again increased
to e5, 5,560,O In 1916 the capital was
raised to its present amount, e14 ,553, 600,
upon which dividends are paid at the rate
OF GlO per share. There is besides a re-
serve fund of e3,200,000. The price of
the stock is quoted at about 1888 per
share.
The charter given (July 27, 1894 to
the Bank of England was very liberal
one. 1t included the exclusive privilege
OF issuing notes payable on demand and
also, in consideration of advances made
to the government was to be the sole
keeper OF the government balances. The
disastrous panic of 1925 enabled the
Ministry to compel the Bank of Eng
land to relinquish some of the privileges
of its charter. Up to the year 1926 it
was the only joint-stock bank in Eng
land, and until 1884 it remained the only
joint-stock bank in London.
The first Offices occupied by the bank
ot fha f,rooo,si Al. d.,
In 1874 the bank moved to Threadneedle
street. The present building occupies
the unique position of being situated in
four parishes. 1t is reared on the site
OF John Houblon's house and many other
buildings, including the Church of St.
NEUTRALITY-SUSPICIOUS., the burial ground
OF which is now the garden" of the
bank. In this place was buried in the
last century clerk of the bank named
Jenkins, who was six feet six inches in
length and was inferred there to save the
corpse from the resurrectonists.
The interior of the bank has little of
special interest. The various halls are
spacious and modern in appearance, and
transactions during business hours sell
dom involve any crowding. The base
ment is entered through carefully
guarded iron door. In it are the vaults
where the bullion, specie and other vau-
ables and curiosities are to be found.
There are also the barracks where thirty
SIX soldiers are quartered from I o'clock
every evening until Z o'clock the next
morning for the protection of the bank.
This custom of quartering soldiers in the
bank originated ut the time of the Lord
tTDnrlrn ,;nt
was made to sack the bank.
The Bank of England first issued notes
in 1695, which were of the denomination
OF Ego. The e10 notes were issued in
1903 and the 60 notes in 1893. Three or
four years later notes for g. and e2 were
issued. These latter were withdrawn
from circulation in 1874, and no notes are
now issued for less than e5, and notes of
higher denomination than e1 900.
Gas good as gold faithfully repre-
sents the character of q Bank of England
note. They are legal tender every
where in Great Britain except at the
bank itself, where they are required to
be paid in gold, and every note issued
by the bank could so be paid without one
pound of the capital of the institution
being touched. Notes issued by and
once paid back into the Bank of England
are never again circulated (even though
they may not have been taken five feet
from the teller's Window, but are de.
stroyed after going through a most min
ute process of cancellation. OF course,
under such circumstances. every note
paid out by the bank is "brand-new." :"
The present note circulation of the bank
is somewhat over e25 100000. For the
management OF the public debt the bank
receives e247 900 per year. The remain
ing profits of the bank are derived from
its use of its deposits, on which it allows
no interest, and of it's own capital.
The management of this bank is un-
der the care of twenty-four directors,
each of whom receives the sum of $500
per year for his services. William Lid
derdale, the governor, receives 81 900 q
year, and the deputy governor, David
Powell, like amount. The honor at
tached to the holding of these offices is
Tar beyond any pecuniary compensation
Many of London's ablest financiers
would gladly accept the governorship of
the Bank of England solely for the honor
that attaches to it. The Bank of Eng
land is the great depository of the bullion
OF that country and in ordinary times
holds in its vaults about e25, 900 600
This is a much smaller amount than is
held by the Bank Of France. That is
accounted for by the fact that the
smallest notes issued are for Go, thus ne
cessitating an enormous quantity of gold
being kept by the people. Then, too,
the lending powers and the commerce of
Great Britain are 80 enormous that there
is almost perpetual drain of gold such
as is not found in other European coun-
tries or in the United States. The total
amount of bullion in the Bank of Eng
land November IL, 1891, was e22, ,946,-
692
In London the Bank of England is
known as the "Old Lady of fThreadneedle
street" In Paris the Bank of France is
known as the "Old Lady of the Rue de
Ia Valliere." The Bank of France was
instituted in 1903 by laws which were
approved in 1908, and as Napoleon said,
was established with the object of pro-
viding money at all times at per cent.
interest Since its opening it has had
the exclusive privilege in Paris and since
1857 in France of issuing notes payable
on demand Its charter extends only to
the year 1897. The capital of the bank
is 182,500,000 francs This bank in not
the fiscal agent of the Government as is
that of England 1t does not collect or
disburse the revenues of the exchequer,
but it lends to it largely in its exigencies,
and has borne the Government safely
through extraordinary needs, most
notable case being the advance of funds