Los Angeles herald., 1905-05-07
Bank of England
and It's Work


Considering the worldwide rebuts-
ton of the Bank OF England, IL fs re-
markable how little is generally known
as to its internal workings. Standing
In the very heart of the largest city
in the world-a central landmark Of
the great nnetropoIis--even the busy
Jondoners around It have. as rule.
only the vaguest possible knowledge Of
what goes on within its walls. In
truth, it's functions are so many. It's
staff so enormous and their duties so
varied that many even Of those who
have spent their lives in its service will
tell you that, beyond their own i'm
mediate departments, they know but
little of its inner life.
The Bank Of England originated in
the brain OF William Paterson,
Scotchman-better known, perhaps, as
the originator and leader of the Ill
fated Darien expedition. 1t commenced
business in 1894, its charter-which was
In the first instance granted for eleven
years only-bearlng the date July q Of
that year. This charter has been from
time to time renewed, the last renewal
having taken place in 1914. The original
capital of the bank was but e1,20O,O0O,
and It carried on its business In sin
gle room in Mercer's hall, with staff
of fifty-four clerks. From 30 small a
beginning has grown the present gi-
gantc establishment, which covers
nearly three acres.
In the banking department is trans
acted the ordinary business of bankers.
Here other banks keep their reserve"
and hence draw their supplies as they
require them. The issue department is
intrusted with the circulation of notes
Of the bank, which is regulated as fol-
lows: The bank in 1874 was a creditor
of the government to the extent of
rather over e11,0Oo,000 and to this
amount and e4,OO0,0o0 beyond, for
which there is in other ways sufficient
security, the bank is allowed to issue
notes without having any gold reserve
to meet them. Beyond these e15,0OO,OO0
every note issued represents gold act
ually In the Golfers of the bank.
All Bank of England notes are
printed in the bank itself. Six print
ing presses are in constant operation,
the same machine printing first the
particulars of value, signature, etc, and
then the number of the note in consec-
utive order. The paper used is of very
peculiar texture, being at once thin,
of these qualities, together with the
peculiarities Of the watermark, which
is distributed over the whole surface of
the paper, forms one of the principal
guarantees against imitation. The pa
per, which is manufactured exclusively
at one particular mill, is made in OBJ
long slips, allowing just enough space
for the printing Of two notes side by
side.
No note is ever issued a second time.
When once it finds its way back to the
bank to be exchanged for coin, IL is
immediatel Cancelled; and the reader
will probably be surprised to hear that
the average life of a banknote, or the
| time during which it is in actual cir
culation, is not more than five of six
days.
The notes are sorted according to
number and date, and after being de-
faced by punching out the letters in
dicating value and tearing off the cor
ner bearing the signature, are passed to
the banknote library, where they are
packed in boxes and preserved for
possible future reference during a pe-
riod Of five years.