Year: 1873

I remember once, in London, to have
seen young man with locks parted in
the middle and abundant watch chain.
and to have been greatly surprised when
told that he was Director of the Bank
of England. I had supposed that a
dictatorship of the bank was a dignity
attained only by men of age, of great
experience, and of grave and somber ex-
terror. But the reverse is the case.
Directors of the bank are always very
young when elected. The reason is
that, in time, the Director will be the
Deputy Governor and then the Gov
ernor. It is important that such man
shall be in the full vigor of life, andyet
that he shall have had ample expert
ence. So it is that the Directors from
whom the Governor is chosen must be
elected young. A certain portion of the
Directors go out annually, and remain
out for a year. But they are nearly
always reelected. When a vacancy
occurs by death or resignation, the
Board looks about among the old-es-
tablished firms of the city and fix
upon that young man whom they think
will make the best Director. There is
very little favor shown the best man,
or who seems the best man, is nearly
always selected, and the position is
greatly coveted.


It takes about twenty years for a
Director, after his election, to reach the
Governors chair. The Oldest of them
who has not been in Office is made Dep
uty- Governor, and on the retirement of
the Governor he takes his place. The
Governor serves two years. The MEM
bers who retire annually are always
the Young ones, or those who have not
reached the "chair." Those who have
held the Office of Governor always remain
and, besides retaining their Director
ship, are constituted into what is
termed the Committee of the Treas
ury." The functions of the committee
are not very well defined, but it wields
a sort of advisory power.


There is one very curious provision of
the Bank of England. No banker or
Director in any joint stock bank can be
Director of the Bank of England. One
of the Rothschilds is on the Board, but
the Rothschilds are not bankers in the
English sense. The English limit the
term to those individuals or companies
with whom you can deposit small sum
payable on demand, and from whom
you can draw it out in checks of any
amount you choose. The Rothschilds
do not do this /; SO they are not "bank-
ers" in the English sense. The original
reason of the restriction, which is now
generally regarded as foolish and out of
date, was that it was supposed that all
banks would be in opposition to each
other; they would compete just as
houses in the same business compete,
Therefore it was thought that no man
should be on the Board of the Bank o1
England who was interested in any other
bank. The reason, if it was ever good,
has certainly now ceased to be of any
value. The entire banking reserve OF
London and all England indeed is held
by tho banks. The other banks in Lon
don must, of course, keep a reserve,
and they prefer that the Bank of En-
gland should have the custody of it.
Their interests are therefore identical
with those of the bank, for if the bank
goes under they must go under too.


There are twenty-four Directors be
sides the Governor and Deputy-G Gov


ernor. This Board is thought to be toe
large. It meets but once week, an6
can then sit but for a short time. Peo
pie get uneasy as soon as its session Ii
prolonged beyond an hour so. A foul
hours session, it has been said, woplc


bring on panic. Anxious persons
gather about the door outside, and avail
the close of the conference. 1t woul(


seem that some better arrangemen


might be made. The knowledge of tn


effect of the lengthy deliberations o
the Board upon the public must pro
duce haste and excitement within.