The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1895-11-07


Some interesting facts about the Bank
OF England and it's history have been
gathered by the Social Economist.
1t will be remembered that on January
1, 1895, this institution celebrated its sec
ond centennial anniversary. It was or
ganized to relieve William III from the
difficulties he experienced in raising funds
10 prosecute the war against France.
William Patterson, a Scotch merchant,
was the original protector of the enter
prise.
''The terms Of the charter were that
the sum Of el 200, 900 90, 900, OO0) should
be raised, and that the subscribers should
form themselves into corporation
styled, The Governor and Company Of
the Bank Of England The bank was
also to have the privilege of keeping the
accounts of the public debt, paying divi-
dends, issuing notes, etc., for which an
allowance Of 1900 year was granted.
The whole OF the capital was to be loaned
to the government at s per cent. This
interest, together with the $4,000 allow
ance, gave the bank revenue of el00,'
600 per annum..
cat its very outset the bank was q ser
want of the government. and it has re-
tanned that character, but in somewhat
diminished degree, through all the ages
OF it's subsequent history. 1t is curious
fact that, although founded by Scotch.
man, Scotchmen are eschewed by the
bank. What the first Of the race did to
entail the ban upon his fellow country
men is not recorded; but is commonly
said in London that three descriptions OF
persons are excluded in practice from
employment at the bsnk-namely, Jews,
Scotchmen and Quakers."
In the basement OF the bank building
are barracks in which are quartered thir-
ty soldiers daily. 1t has been the Gus
tom to station soldiers at the bank ever
since the riots of June, 1880, when an at
tempt was made to sack the bank.
''The Bank OF England first issued
notes in 1895, which were for eco. The
4l0 notes were issued in 1853, and the e5
notes in 1898. At one time during the
early years Of the present century, notes
Of f1 and e2 were used, but in 1874 they
were all withdrawn from circulation, and
no notes are issued for less than Go and
none higher than el 900.
"These notes may be said to be the
safest pieces of paper in TIE world, a:
under any circumstances the bank coulc
pay with gold any one in circulation
without one pound of the capital of thu
institution being touched. They are 1
legal tender everywhere in the United
Kingdom except at the bank itself, wher'
they must be paid in gold.
THE bank started with capital, al
stated, of el, 100000. In two years this
was increased to 2,20l 900. In ITO i
was again increased to G5,560,000. Oh
June 20, 1916, it was increased to it
present sum OF eI4,553, 900, equal Il
100000. No reports OF the bank ar
made beyond the regular weekly state
ment.
''The Bank of England has sometime
been in difficulties. 1t failed in 1896
and in its earlier years it was subjected
to many runs, some organized by til.
jealous private bankers, some the result
OF political causes.
''The present governor OF the bank ant
the deputy governor each receive salar,
of 81 900 year. The bank has "a direc
tors, each OF which must hold $4,000 O
stock. and who receive $500 year com
pensation. There are in all | $50 person
employed in the various departments Q
the institution, and their united salarie
amount to about ell ,4O0, 600 year.
up to 1926 it was the only joint stoc
bank in England, and until 1885 1t =,
NAMED the only joint stock bank in Lor
don. At that date the London an
Westminster Bank was founded, and q
the same time forty other joint stock bank
were established in Great Briton. -
"The Bank of England is not only til
banker of the government, but it is also th
bankers bank. All other banks kee
their bullion reserves at the Bank
England, and this is one fact that give
the establishment its special importanc
rs the center of England's monetary syl
tenn. This reserve is seldom allowed I
fall below fl0. O00, 900, fair average b,
ing from e10 900, 600 to Ga, 0o0. 900. Th
daily transactions Of this institutio
sometimes run as high as E6,5O0, 900.
"The number OF persons receiving divi
dends is nearly 1000. Nearly G25, OU
900 tsl24, 0O0. 000) are annually paid GU
by the bank as dividends on stock ar
nuities reaching the enormous sum {
s775, 100000 or say IS, 1873, OOO, 900.
S"During the year 1892 the stock OF til
bank sold as high as f344 per share an
NJ low as e325 The highest dividen
ever paid was in 1907, 27ls per cent, an
the lowest during the years l753-63, A.
per cent. For twenty years the dividen
has averaged about 10 per cent"
Co