Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1901-05-08
GREAT BANK OF ENGLAND.

GREAT BANK OF ENGLAND.
Famous Financial Institution Show
ing Evidence of Decay.
Baltimore Sun:
Is that mighty and famous financial
institution, the Bank Of England, de-
cadent? Probably the average Briton
would receive the suggestion with de-
rision. For two centuries the "Old
Lady of Threadneedle Street" has
stood guard over British finances, and
for many generations Britons have re-
garded her with awe and admiration.
In a recent number Of The Chicago
Banker, however, an Englishman, evil
IDENTIFY financier, points out what he
considers serious defects in the admin
istration Of the bank, and asserts that
the charter under which 1t Is conduc-
ted Is not adapted to modern finance.
In his opinion the banking system OF
Great Britain is antiquated, like the
military system of that country. Fifty
years ago, according to the Chicago
Bankers correspondent, the Bank of
England was able to control the money
market at its will and to attract gold
from abroad. Gradually, however a
change has come over the whole situa-
ton. London's predominance in fl
nancial way is no longer what 1t used
to be. The Bank Of England no longer
has the prestige it once possessed-in-
deed, in the past few years its influence
has been steadily diminishing. Time
was when it was stronger than all the
English joint stock banks combined;
now there are many financial institu-
tions in Great Britain as powerful as
the Bank of England.
The Bank of England, it is stated by
the Chicago Bankers correspondent,
has never attempted to be to Great
Britain what the Bank Of France Is to
the French people. In the days when
it dominated the whole market it failed
to take advantage Of its position, and
establish branches throughout Great
Britain. The Bank of France, by the
establishment of branches, is the bank
e1 of the people Of France, even to the
very smallest traders. The Bank of
England has not, even in London, avail
ed itself Of it's commanding position
and prestige to control enough Of the
business of lending and discount to en-
able it to influence the market to a
controlling degree. more and more"
it is stated, 1.-The bank has withdrawn
from the actual business Of banking
and has become the mere banker of the
British, Indian, Egyptian and Japanese
governments, Of some Of the colonial
governments, of some Of the municipal
tiles, and Of the bankers" In the
meantime the joint stock banks have
grown in every direction. Where for
merly they were mere adjuncts to the
Bank of England many Of them are
now as strong as the bank itself. The
Bank of England is dependent upon the
assistance of these institutions for the
maintainance Of it's reserve, and Is no
longer able to act independently and
effectively.
While the Bank of England has been
made by legislation practically the
keeper of the banking reserve of Great
Britain, parliament has never imposed
upon the bank the obligation Of pro-
tecting the reserve. Although it Is a
quasi-public institution, many Of Its
governors have maintained that it Is
purely private institution, that its
management concerns only it's proprie-
tors, customers and creditors, and
therefore it is free to keep just what
reserve it sees fit. AS q consequence,
it is asserted, the reserve kept has
been inadequate. Three times, accord
ing to the Chicago Bankers plain
spoken correspondent, the bank char
ter act has had to be suSpended-1n
other words, the governor and court
have had to break the law with the
permission of the government. Yet
successive governments have refused
to interfere and amend the bank char
ter act, and successive governors of the
Bank of England have continued to act
as if they had no responsibility to the
public. The bank does, in fact, keep
considerable reserve, while the govern
ment and the joint stock bankers,
which are equally implicated, keep no
reserve at ALL" The savings banks de-
posits which the government holds
amount to nearly $1,000, 900, 900, and the
government is consequently the great
est deposit banker in the empire. Yet
it holds not a penny of reserve against
this enormous liability. In time of
the new deposits exceed the
If England should be in |
volved in q great war, during which
her command of the sea was imperilled, |
trade thrown out Of gear and work be-
came scarce, it is probable, according !