Bank Of England.
The Times, 1824-09-17T00:00:00

Yesterday the half-yearly Court of Proprietors of Bank of England Stock was held at the Bank, for the purpose of considering a dividend. At twelve o'clock the Governor and Directors entered the Court, and the minutes of the last Court wvere read in the usual form. The GovEtxoi then arnounced, that the Court of Di- rectors, after considering the state, con(lition, andl profits of the Bank affairs, had agreed to recommend for the adlop- tion of the Proprietors, a resolution, that there be a divi- dlend of 4. per cent. for interest and profit upon Bank Stock, for the half year ending on the 10th of October next. He then pat the question upon this resolution. Mr. YOUNG said, that before the Court could properly determnine upou this resolution, they ought to have some data to guide their judgment. He svas not generally an advocate for the publication of the Hanlk accounts, but really they oug,ht to have some specific information to en- able them to agree to a dividend. For the purpose of ob- taining an insight into their affairs, he begged leave to put tvwo questions to the Court of D)irectors: the first was, what was the amount wlich they had already advanced, or in- ten(ded to a(lvance, upon mortgages? The GovRnNolt repiicd, that a considerable sumn had already been advanced upon mortgages. The accounts were in progress, and could easily be made out; the wlhole sum intendedl to be advanced upon such security hadl, he thought, been stated at a former Court of Proprietors. Mfr. Yous; thought there couldbe no difficultv in say- ing what sum had becn actually advanced. The Propride tors were entitled to know that, as well as the atnoun-- tended to be appropriated. The GOVERNOR.-That amount has been alrea(ly statedl to be about two millions. Mr. YouN&.-Then, Sir, my next question is, wvhat amount have you advanced upon the new species of secu- rity lately thought of for the appropriation of yotur funds- I mean stock ? T'he Govfa.'eoa.-Nothing of any consequence. It was thought that stock affo;alede one mneans of taking advantaze of our fuids ; but little has been done in it. Mr. YoUm'G.-I don't wlant to know the precise sum: it is probably 500,0001. The GovERNiOa.-Not so much. MIr. YouNG said that the timne had; arrived, wlain it be- came the Bankl most seriously to consider the expediency andI policy of making advances of this nature, and he thought the subject camne naturallv und(er their conisidlera- tion at the present moment. This Corporation had, from their resources, the means of making capital too cheap. But it was a question of the *ery first moment, and, indeed, of vital eonsideration for the monied interest, to pause and look at the effect of sanctioning a forced circulation. Whenever any political change took place in the affairs of' tie countrv, then woul(d the effect of their measures he felt, and it was unwise for them to act without taking a long view of the probable res'lt of their decisions. In the saune proportion that they affected the money market in a time of peace, would be exactly the re-action in an opposite direction if a war arose, and the rc- vulsion might be ruinous : they ought always to con- sider the calamitous re-action of precipitate ineasures affecting the whole property of the country; anti in that view it was incumbent upon them to pause before they created a new species of security for advances ot their ca- pital to fix upon. In his view ef these matters, he was glad that they had not succeeded1 in their last new principle of advancing moncy upon stock, and in future he should strongly recommrrend the Directors to consult the Proprie- tors before they (letermined upon any IIew application of their capital, and always to consider the opposite effents of a time of peace and of war. He felt it his duty to throw out these few hints for their cobsideration, and he trustedI thatif thev were nct attended to upon this day, they would on some future occasion; for it was incunbtint upon the Bank to consider the effect of the measures which they adopted upon the general monied capital of the country. He did not mean to complain ot' the conduct of the Dirkc- tors, but he was most anxious they shlould on all great oc- casions not decide before they had obtained the concur- rence of the Proprietors. The GOvERNoR repeated, that the advance upon stock had been comparatively small ; but he thought that whetn the Directors recommended a dividendcl of 4 per cent., they could not he supposed actuated by any desire to reduce the rate of interest throughout the country. Mr. YouNo said, that he. dld not clharge them witlh any such desire, but witlh having created a new feature of ad:. vances in the appropriation of their capital. In thie case of stock th:y had been only called upon for a small ad- vance: it might have been otherwisc, and exactly in the same proportion as the a-vance Nvas made, wouldl the re- action take place, if a change of political circumstances ensued. 'I'he GovFsmsoa remarked, that the mncasure allutle(d to, as wvell as every other, was open to the consideration of the Court of Proprietors at their usual meetings. Alr. You NG.-Yes, but not before you have adopted and acted upon tihe newr measure. 'I'he CoveRawoR assured the Court, that the Directors always exercised a mature consideration upen such matter s. 'Mr. SA!iUEi, DixoN highly commncndd(i the recent mea- stires of the Court of Directors, for surely there could not be a better security foir the advances they lhad mnaie than the lanided property of the country. (Hlear, lhear.) Mfr. N. G(jUNaliy calle(d the attention of the Court to this remarkable fact :-About two years ago they had their divi- dend of 5, not -. per cen:. A reasonahle expectation hatd been then held out to them, that the 5 per cnt. wvou]d probably he continued. He called the attention of tile Court to this remarkable fact-that the reduction from 5 to 4 per cent. took place (according to hiis belief) in conSe- quence of the negotiation between the Bank and the Go- vernment respecting the 44 years' annuities. I'Vas not that so ? T'he GOvERNOR.-I can venture to assure the worthy Proprietor that it was not so. IN-r. GuxnDty.-Then what induced you to re(luce the rate of itterest? The GovahNoa.-The same consideration of the affairs of the Bank which now dictates our recoirmmendatioln of the present rate of interest. Mr. GuNi)nY.-Did ynu not agree to advance to Govern- ment a miliou and a half for five years? I say, that upon every principle of law, honour, aidcl justice, you were bound to have dividled that sum among us for dividlend and profits. The GOvERNolt.-But, that sum came out of fhe gene- ral capital. Mr. Gux'imY.-No; it must have been from your pro- fits of tradle. The GovEMNOR.-lbegagain to explain,that it was done in the beneficial cmployrment of thes capital-a discretion al- ways intrusted to the Coutt of Directors. Mr. GuNDRY.-In doing so, I repeat you violated yeur charter and your bv-laws. Your interest and profits within the year should be divi4t,ed armoilg the Proprietors. The GoveaNo:n.-We were borne out in the propriety Df the course we took by several subsequent Courts of Pro- prietors. (Cries of " Question.") Mr. GuNDiY.-Then I imove, as an amendment, that the dividend be 5 per cent. Mr. SELWYN said, that in rising- to second this amend- ment, he begrged to disclaim all nersonal allusion to the pre- sent Court of Directors. To smim they were all perfect strangers, but one gentleman, whom lie did not then see in fhe court, and to whom he was boundl by ties of gratitude and respect, 'The Directors generally wvere, he repeated, strangers to him, and he was alike strange to their bodyy. 1 Ile came for xard onl thle present occasion, not to gratify any private feeling, but to arraign the public condulct of the Court of Directors. They had the highest authority for knowing that " men loved darkness rather than light, because their deeds were dark;" but he did not mean to apply that observation to the Cotnrt of Directors- he sd such an application of it. He verily believed that the Directors; in the course whi.h they had taken, believe(d they were treading the.right path, be- cause their predecessors had travelled in it for the last half century. But giving them full credit for that belief, still the Proprietorshad abundant reason to complain, that year after year they had in vain called upon them net to persevere in servilely treading inl the fotsteps of their predecessors, but to pause and consult their owtn good sense about the course which it was incumbent upen them to pursue. The Directors bad not taken this advice, they had tlisregarded the by-laws, which ouglht to have been binding upon them. He arraigned them,therefore,for a violation of the chartered rights of the Con,pany, sanctioned by repeated acts of Par- liament, and hallowed by the by-laws of their ancient Corporation. The proper notice, which, according to the by-law, ought to summon them to these periodical Courts, was not the imperfect one of late years insertedl in the newspaper, lut a call upon them (the Proprietors) to at- tend and consider the state and condition of the Bank affairs, and also to consider a dividend. He was thnen strictly within the limits of the operation of that express by- law, whenbe pledged himself to show theabsurdity,as wellas anromaly,of the coarse which they hadbeen of latepursuing. First, as to the absurdity. What could be mnore absurd than to call.together that oreat and importantbody of Proprietors -to do what? To zeclaye solely ant simply an assent to a proposition, without being allowed to have bef&rc them any of the materials w1hich were essential to make their eonp!4 deration rational or intelligible. Whv, any ingenious ar- chitect might have so devised the consiruction ef the room in which they assembled, as to make it echo the proposition of the Court of Directors, without putting the vast body of Pro rietors in motioin, to give the formality of their at- ten ance at the Bank on sueh occasions, to the great incon- venience often of their private affairs: for really they came merely to echo the determination which the Court of Directors announced to them they bad already attained.. So mutch for the absurdity of their system. Then as to its anomaly. Was it not an integralpart of tbe generalsystem .of the Governinent of the country, that there sbould always exist a check and control over the national expenditure- and had not that been always deemed the most salutary control for tAe preservation of public liberty? Why, then, should that be deemed so beneficial in the Government at large, anl so unnecessary in their little Government-one. be it remembered, which involved -the expenditure of 12ooo,0001. of money, belonging, not to the Court of Directors, but to the great bulk of the proprietary at large? In every way he could view this subject, he thouglht .he Proprietors ought to have a check upon the expeinditure of their capital. Had they not all seen of late years the great alterations-he would niot say improvements, for these were matters dependent upon the caprice of taste-whichl Ilad been inade in the aichitecture of the Bank:? Might vot somne benefit have arisen from a control over even tlat branlch of their expeliditure? Ye2r after year, however, had they suffiered to elapsc, and ino steps were taken by the Court of i)irectors to call to their aid that vazt body of wisdom and intelligence which they could not fail to find among thc Proprietors at large. lie thoug-ht it was arsly necesslry to state such a case, to slow any iran capable of reflection its absurdity and its anomaly. It was unilike everv other great system, and by pursuing it thev vere blinidl committing thems:lves heedlesslv to the chance of circumstances, without reflicting on the manifest dangers which were caleulated to obstruc: their progress. He was bound.in aroving in this way,to discuss the propriety of tile alteration wvich hie recommenderl, and to slhow its Cear advantage over that which they had Leen pursuing. He knew that on all occasions when any altertti(in hal been propesed, the proposition v.as mnet by the cry of "'Vill you not repose a confidence in cur Directors? Are Q.'ly not mnen of honour andl intelligence ? He subscribed fully to tic opinion individaally entcrtained, of the honour and dis- cretion of ite Directors; but was that a ground for bouAi4_ less public confidence? Had the) not before them the ulet- choly cxpeyienre, that men of the highest honour.of the rnost liberal eiucation, of the first conrmexions, were sometsjnee found to abuse the confidence which hatl been reposed in them ? TI he nL"ture of m-an forbade unlirmited confidence- and referring, not to the present, but to former Directcors hia.I they not seen an abuse of trust, and fatallv felt its ca- lamitous ctlusequences? He alluded to the measures of the Bank prior to tskl year 1 797, wbhen it was on record, that so heedless and improvident hiad the Directors been in their adlvances to Governmnent, that unless cash payments had bees suspended, they inust have stopped paiment. 1r. YotNG here rose to order. He was sorrv to itss_ rupt the Itarned Prnprietor; but he really thought he was embarking in a very extraneous discussion. Tihe question at present be bre tlie Conrt was, which of twro propositions of dividend they ou.aht to prefer, and not the consideration of a former Court of Directors. MIr. GuNnRy contenuded that AIr. Selwvn was perfectly in or(er. (Cries of " Chair.") The GovERNor, was of opinion, that the honourable Pro- prietor was embarking in extraneous matter, and hopeil be would confine himself more ctosly to the qutstion of (liv idendl. Mr. SEaL\vyN saitd, that he lbowed vith deferencc to the Chair. He did not. think, however, to use the professionial phrase, that lie had been "travelling out of the r.cord." As the Governor wvas of a different opinion, he would of course obey his admnonition. He was sorry that it wvas thought fit to interrupt his line of argtumgnt, for he knew not how he could better show the necessity of altering a course so pre,- nant with mischlief, than by adverting to the ruinous con- sequences which had on previous occasions accrued fiom its adoption. As to the dividew-d1, h)uw cauld thev consider what ought to be its amount, without hbiring before them somne information as to the state of their affairs? W1'ere they not at present in the dark. and mnust they not continue so, as lonug as thev rcpr.sed th:is blnd confidlence, vhich he was about to show had been nearly so fatal to their whole c:pital ? TIhe Govrfs.R said, that lie had not interrupted the worthv Prosirietor vhen he was pursuing his line of argu- ment,'but being called upon as to the point of order by an- other honourable Proprietor, andI the call appesr;ntl to have tile support of The ereat majority of tlhe C ourt, it then be- came his duty to point out to the Proprietor who had been speaking, tthe necco.ity of confining himself snore closelvtoD tho qutistion specificaliv beiore uliT. .Mlr. SE LiwY s repeated, that le bowed vith deference to the authloritv of the Ciais, but the decision had so cut up l]is whole artrun'nent, that Ie ha(l only to abstain from fur- thier trespassing upon the Court. and to sit doown at the in- stant. Tihie question being again Ioudly cal'td for. Nr. GUNDity insisted that Ir. Selwvtn was 'n crdhr. Some genttlemnn, nearly of Mr. Gun:iry's agae (clase upon SO years old), became equally quertiloits in taking ati op- posite view of the noatter. anti theyv kLit up a slharp conver- sation arolngst themselvcs but Mr. Gundry's gtesture anil maIruer iildicate-d n : hope ofi h;s c ving for quar:r ; lie stili contende(d in behalf of Mr. Sel!yn, inl oen dlfial,e.u of' the detcisiqn of the Chair. Sir . BI tZARD. Who sat very close upon thle old gen- tleinan, complained of Mr. Guntdrvc conduct, nid appealed to the Clhair to have the order and rules of decency main- taineed in thedebate. Mr. GuNDaY retorte(i upon his opponent a word which wve could not hear, and an accompanying lootk that was uli expressive. Srr W. Bi.iz.AR insistedl that the sense of the Court hail been relpeatedly tak.n upon this subject, anI: as oiten girvt'n in support of the Court of l)irec crs. Every bolly wvas per- suaded of the propritYty of confi.ling in their honour and discretion, for any thinig thbev had since heard so pertina- ciously and declan atorilv e2ipressedt, with so m1uch loss of tiite for the Proprietors. The cry of " Question" was loudly reiterated, N\r. Gun- dry still on his legs. Mr. You NG lamented that the learned gentleman's (Arl. Selwvn's) interruptioni had stopped his argument, which nighft have beers verv goodT at another tine; bitt was not, he thought, applicable to this question of dividend. The onily motive they could have for voting the dividend of five per cent. would be, that if carried, it wrould comnpel the Di- rectors to produce further information. The GovsitvOa repeaterd, that the Court tf Proprietors had repeatedly approved of the course put suedl by the Court of Directors. Mr. GuNDRY made a last efiort; but the cry of " Ques- tion" became general, anti was at lengthh put- For Mr. Gundry's amendment, his own and lMr. Sc;- vyn's hand were only held up, and it was negativced: the ariginal motion waa then put, and carried unanimolsly, an(f the dlivirdend warrants tor four per cent. were ordered to be delivered and paid on Alonday, the IIth of October next. RATE OF DISCOUNT. On Sir G. FAr.RANTS m Ioving the question of adjourn- ment, ' 1 Mr. YoUNG rosc to put a question whetber i the intention of the Court of Directors to reduce the present rate of discount ? He hoped that wlhen the efi'ect of such a measure (if taken) was considured upon the general pro. perty of the country, the Directors would be struckl with the absolute necessity of first taking the sense of the Court of Proprietors, before thev came to any deternatton The GovEBsNOR submuitted to the worthy Proprietor's more mature reflection, wbether he was not introucing a tmost injudicious topic at such a moment. (Hear.) 19]r.YOU NG .-I only want to pledge you to consult us first. The GovER?toR.-I have no authority, nor can I pledge the Court of Directors. (Hear.) AMr. YOUNG.-YOU may consult them, and then do so. The GGVERsaoa.-This general assurgnce I am ready to give an the part of the Court of Directors, that they are perfectly alive to t.he responsibility of their situation, and will act in every respect in conformity with what all ap pear to them the best view of the subject. Mr. ROTHmSCHILD.-As we are ready to place so much confidence in the discretion of the Directors, we have no right to ask them a question of this nature. FO0KOD POWDRBS OF ATTOr NBY- A PaOP'aiTOR wished, before the adjouriment, to sub- mit a motion, for calling upon the Court of Directors to consider the necessity of adopting a more effectoli plain to prevent forged powers-of attornev. He did inteed to have submitted a plan which he had prepared privately to the Directors before this meeting, but or..going to their ehtimta ber, he found the doors locked, and the servant told hirm he could have no admission. The GovaRNoa replied, that it-was his intention, before the adjournment, to have informed the Court, that shea, sures were now in progress to effl ect the purpose which the worthy Proprietor had in view by his motion. The matter was in strict and close investigation, but it Would be pre- mature at present to state further particulars. T1ILe reasoxl the doora Were shut when the Propriotot. eame was this' there was a standing- order that whenever tlie Courtt of Directors met to consider a dividend, their doors should be locked, and all internal comnmunication prohibitel. Sir W. BILXZARD.-"C There is an expression of the deli- cacy of the Court." Mr. S. DixoN recomrnended that the suVject should be left to the Court of Directors, and The PROPRIETOR consented to withdraw his motioni, thc Governor pledging himself that attention should be paid to any plan or information transmitted to the Directors. Mr. GUNDRY reiterated his demand for a bTllot upon the decision on the amendment. The GovEaNoR..-Jthas been decided against yon. alr. GltNDI -YOU have no right to say so, until the ballot decidles. The question of adjournmIzent was then put, arid carried, nlot withstanding MIr. Gundry's opposition, antd the animad- version of *Mr. XVarren, Sir George Parrant, and other rorietors, who complained of the venerable gentleman's pertinaCity. He still demandeil the ballot, aiid was entlea- VounIng to procure the necessary signatures to support his application. WVhen the Court brokce up, we left Mr. Gu(n- dry upbraidi3g Sir- G;eorge Farraut, in a tete-ld-t6k con- troversy, of having written some book upon Bank affairs, and af^terwards departed from his principles. The Court was fully attended; . BANE OF ENt6LAND.