The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-06-27
An Institution Which Has Been in
Existence for Nearly
200 Years
Some Interesting Points In the
History OF the Great
Concern.
b Vast Amount NJ business Transacted
Daily In the Precincts OF Thread
needle Street.

$3.50 " . - - v
financial institution in the world. On Jan.
], 1895. II will celebrate tho second osntsn.
NAL anniversary Of Its establishment.
What > history this almost 200 years Of
ia existence would prove In volume and
extent. il infinitely executed, maj be judged
from the fact hat the sim Pile titles Of the
acts Of parliament, pasted upon the subject
Of Its affairs. sinoe the bank was founded,
occupy more thun PSI pages OF the indexes
10 the statutes n large.
This famous Institution was established
in 1853, having boon projected In 1862 by q
Scotch merchant, William Patterson, to re-
lieve King william Ill. from the difficult
siss experienced in raising supplies. TO
prosecute the wal against France. The
terms Of tho charter granted July n, 1854,
were. that the sum Of 100000 pounds
($6,O O0. 00O). should be raised. and that tho
subscribers should form themselves into a
90 CORPORATION. styled 'Ths Governor and
Company Of the Bank Of England" The
bank vas also to have the privilege OF keep
ing the accounts Of the public debt. pay
ing dividends, issuing notes. ETC.. for which
an allowance OF 1000 pounds a year
was granted. The whole OF the
capital was to be loaned to the
government, at eight per sent.
This interest, together with the
4OOO pounds allowance. gave the bank .
revenue Of 100. 600 pounds per annum Al
ito very outset tho bank was : servant Of
The government, and il has retained that
character, but in somewhat diminished de-
gree, through all the ages OF its subsequent
history. It 10 y curious fact that although
founded by q Scotchman. Scotchmsn are
ssohswed by the bank. What the first Of
low countrymen ia not recorded, but II 10
commonly said in London that three de-
scriptiOns of PERSONS are excluded in prao-
tice, from employment nc the bank, namely,
Ecoschmen. Jews and Quakers.
The first Offices occupied BY the bank
the Poultry. About 160 years ago the bank
moved TO Threadneedle street. Probably
nc building in the world ia batter known
than the irregular and massive stone struc-
ture of one story which stands In the nan
sial center OF the city of London. now oceu-
pied BY this great institution; It 10 tho
principal Stopping place for the Omnibus.
coaches aud cabs Of tho worlds metropolis.
and the stranger in London who for tho
first time hears the shouts of the drivers
and conductors Of those public conveyanoes
might we'll be led to believe that the
Bank Of England was the ultimate deati-
nation Of every man in the city. The
building itself oocupies the unique posi-
tion Of being situated in four pal ishsa II
covers between three and Q half aud four
yRcres of ground. and occupies the space
between Lothbury on the north. Thread
needle street on tho south. bartholomew
lane on the east and Princess street on the
west. II is in the Iorio style, after the
Temple OF sibyl at Tivoli, Its character
{istic being security rather than elegance.
The cast and west wings were not COM
plotted until 1856, and subsequently,. I'M
der the di ,ection of Sir John Sloane. q
portion of the original structure was taken
down and alterations made, bringing the
bank to its present condition. The pEinci-
pal entrance ID on T~hreadneedle street.
The general banking room, which IL open
to the public. 10 q spacious apartment of
somewhat modern appearance. The visitor
Is usually struck with the air of resi- Gotta
bility and business that psrvadss the entire
place. The messengers and attendants
draw attention by their dress. which
consists of a swallow-tailed coat Of
a delicate salmon color. flaming
scar let waistooat. black trousers and q high
silk hat. Permission IL granted TO view
the directors room and certain other parts
of the building. including the Weighing and
note printing rooms, il the visitor 10 pro-
vided with a cnrd or letter Of introduction
from any reputable merchant OF banker In
the CITY. A directors order, very difficult,
however. to secure. will permit an inspsc-
ton of the basement and the vaults below
where the bullion, specie n other valus-
bles IRE stored. Here also may be seen q
large collection of gold ornaments, such a.
rinRs. necklacss and coronets, u~nbuEnished
and rude In execution, but many admirable
in design. which are the residue of The
quantity has been melted Town and coined.
The total mount Of goll bullion stored in
the vaults May 13. 1893, wa "a, DOG, 200
pounds ($12O, 600, OOO).
In another part Of the basement are the
bar. acks whore thirty soldiers 40 quar-
the ~ otection Of the bnnk. II has been
ths custom to station soldiers At the bank
ever since the riots in June. 1870, whom an
ATTEMPT was made to sack the bank. Tho
Bank of England first issued notes In 1896,
which were OF the denomination OF trsnty
in 1863. and the fvs-pound notes in 1893.
At one time during the early yeats Of the
present century, notes of one pound and
two pounds were issued. but in 1874 they
wcro nil withdrawn from circulation and
no notes are now issued for less
than 1000 pounds. These notes may be
said to be the safest pieces of paper in tho
world. AZ under any circumstance the
bank could ray with gold every ono In cir
culation without one pound of she capital
o. the institution being touched. They are
n legal tender everywhere in the United
Kingdom, except at the bank itself. where
they must be paid in gold. These notes
are all mado in the bank building, and
when once paid back into tho bank arc
never again issued. but after going through
. process of cancellation, are kept for ten
years and then totally destroyed. Large
quantities of gold coin and bullion are CON
stantly being handled and pass in and out
of the bank. On an average Is, 600 sovef-
eiQns pass over the counters cvety day.
By the bank charter act of 1874, the bank
was divided into two departments. tho issue
md the banking. BY the same act tho debt
then quo to the ban from the government
was stated to be due the issue department.
and against this they were allowed TO issue
notes without holding gold. The govern
ment debt. originally ! zoo. 600 pounds, was
subsequently increased by various nmounts
until in 1916 il reached 14,6S6, 600 pounds.
but one. fourth of this was IA subsequently, 70.
rnid. Since 1850. the amount has stood at
II. O15. 600 pounds on which the bank now
receives pa per cent. The bank stsrtsd
with \ capital AS stated. Of !. 200, 600 pounds.
In two years this was increased to 2, POI, 600
pounds. In ITO. II was again increased to
$3.50. 900 pounds. On Juns 20. 1916. il was
raised to tss pres mt sun of II. 663, 900
pounds. equal TO about 472. zoo. 900. No re-
ports OF tho bank nre made beyond the
regular weekly statement.
The privets danosits amount 10 q sum
equal to about $40. 600. COO. and the public
deposits 10 about $26. 220, 600. making 4
total OF S175, 90. 00O.. Al \ matter OF oom-