La Junta tribune., 1908-11-14
FROM FOREIGN CLIMEs
ovs SPECIAL EUROPEAN CORRESPONDENT
bY R. W. PATTERSON

pons of bonds and interest on stocks.
and crediting or remittins these sums
to the owners This bank has cor
empire, but, as I understand. does
not have correspondents In foreign
countries or issue foreign exchange.
The Bank of England. however, reg
ulates the rate of interest and dis
count for England. and indirectly. In
a measure. the rate throughout the
world The board of discount meets
every day, at ten O'Clock, and fixes
or determines the rate OF discount.
which rate is instantly telegraphed
+, TO every bank in England and to
every commercial center on the
globe By this power the Bank of
England Is able to regulate the move
ment Of gold to or from England.
| When the course of trade Is against
England or when other nations de-
mand gold, the Bank of England.
| when England does not want to part
with her gold, simply raises the
rate Of discount. This makes the
money worth more in England than
in other countries, and thus the gold
cannot be profitabiy exported. Dur
ing the last panic, however. In the
United States, America was In such
straitened need of gold. that the
| American bankers took gold from
England, in spite OF the rate OF dis
count fixed by the Bank OF Eng.
land. The American bankers were
moderate, amply because they DID
not dare disturb the English mar
kets, 70 as to cause distress or .
arrangement Of ffnsncial conditions.
~ trouble in England meant increas-
e truubae In America. for. should
business conditions in England be
gseatiy affected, there would be q
rush TO sell all kinds Of American Sc
curitics, and this would only add to
1.-THE embarrassment and deepen the
troubles at home.
The capital OF the BANK Of England
Is but about SIS. 600. 0OO-not many
| millions greater than the capital.
surplus and undivided profits of one
of our great New York banks. the
National City Bank. was taken
to the printing department where the
tnotes Of the Bank of England are
printed, the only paper money issued
In England, this bank having mon
| opoly OF the issue Of paper money.
One press was printing five pound
notes at the rate of more than three
thousand pounds per hour. Forty
five thousand pounds of five pound
notes are issued daily. Notes Of
various denominations are issued. ten
twenty, fifty. one hundred and up
to ten thousand pounds. These
! notes are larger than the bills Of
/; American paper money, are printed
In one color only. black, on white
I paper. manufactured solely by The
/ Bank. as the Bank OF England
ia everywhere styled in England. No
note that Is received by the Bank
or any Of its branches is ever given
out to the public again. but Is mutt
lated aud filed away for fifteen years
when 1t is destroyed. Even II
the note does not pass outside OF
the walls of the Bank, say ID
Maid to a person in one part OF the
Bank. on his open account. and oy
him is taken to the gold counters
In another part and exchanged for
gold. 1t is never passed out again.
but is destroyed. This proctice
furnishes the circulation always with
new and clean. crisp money. A
similar rule in America would pre-
! vent the circulation Of mutilated and
filthy money. The notes, as they
lare printed. are numbered and count
ed automatically. The engraving u
simple, no fine work or visnettes. -
On American money. Simply plain
.cr,nt and few words. with mono-
gram near one end. The indta
runees are printed in two colors. with
more elaborate engraving and In four
languages. In the coin testing de-
n.rtnent. shout 100000 pounds are
tested daily BY means Of automatic
machines. the light weight coins drop
ming into one chest while the current
coins drop into another. The coins
/ nm. found below the limit Of eo'sf.
.rce are tested on a more accfaate
teeter and, II found to be lisnt' ase
.ert to the smelter and mint. ano
the bank or depositor from wnom
ths coins was received Is csarsed
-,.n the loss. In this bank are
, nr,nted government postal notes. pen