not. But the additional confidence which was then possessed by the branch banks may, notwithstanding, have induced some depositors to give them a preference to the country bankers.

On December 7, the country bankers held a meeting at the London Tavern, Bishopsgate Street, where they passed several resolutions, and appointed a deputation to wait upon Lord Goderich, the first Lord of the Treasury, and Mr. Herries, the Chancellor of the Exchequer. Among other resolutions were the following:

"That the late measures of the Bank of England in the establishment of branch banks have the evident tendency to subvert the general banking system that has long existed throughout the country, and which has grown up with, and been adapted to the wants and conveniences of the public.

"That it can be distinctly proved that the prosperity of trade, the support of agriculture, the increase of general improvement, and the productiveness of the national revenue, are intimately connected with the existing system of banking.

"That the country bankers would not complain of rival establishments, founded upon equal terms; but they do complain of being required to compete with a great company, possessing a monopoly and exclusive privileges.

"That should this great corporation, conducted by directors who are not personally responsible, succeed, by means of these exclusive advantages, in their apparent object of supplanting the existing banking establishments, they will thereby be rendered masters of the circulation of the country, which they will be enabled to contract or expand according to their own will, and thus be armed with a tremendous power and influence, dangerous to the stability of property and the independence of the country."

At a meeting held at the same place, on the 16th of December, Sir John Wrottesley, Bart., M.P., the chairman, reported to the meeting the result of the interview of the deputation with Lord Goderich and the Chancellor of the Exchequer on that day, and read their answer as follows: "Lord Goderich and the Chancellor of the Exchequer stated to the deputation, that they were fully sensible of the great importance of the subjects which were brought before them by the deputation; and that, although it was obviously impossible that they could undertake, on the part of the government, to express upon that occasion any opinion upon the matters under consideration, they could assure the deputation that all that had been communicated should receive the most deliberate and serious attention."

The country bankers complained, too, that the branch banks, instead of meeting them on the footing of equality, had refused to take their notes, unless the bankers had previously opened accounts with the branch banks, and provided funds for the purpose.

1828. Another subject of complaint on the part of the country bankers.-The Bank of England had always issued their notes and post-bills unstamped, in consideration of paying, as a composition for the stamp duties, 3500l. per annum on every 1,000,0007. in circulation. When the branches were established they issued bills, drawn upon the parent establishment in London, at twenty-one days after date, without being stamped, alleging that these were included in their composition. At the same time the country bankers could not draw bills upon London without paying the stamp duty. In a memorial, presented to the government by the bankers in the town and neighbourhood of Birmingham, it was shown that the stamp duty on a bill drawn at twenty-one days on London, is three shillings and sixpence, while under the composition the Bank of England would pay but fivepence; and that a circulation throughout the year of 10,000l., in bills of exchange of 207. each, would subject the Bank of England to a payment, in lieu of stamp duty, of only 357., while other banks would have to pay 6507. An Act of Parliament (9. Geo. IV. c. 23) was accordingly passed, to enable country bankers to compound for their stamp duties on the same terms as the Bank of England, and to include bills drawn upon London at twenty-one days' date in the composition. By this law the country bankers have the advantage of paying duty only on the amount of notes in circulation.

1828. May 9. "The humble memorial of the country bankers in England and Wales," was presented to "the Lords Commissioners of his Majesty's Treasury " against the branch banks. It concludes thus:

"Your memorialists therefore deeply regret that your lordships do not feel justified in adopting measures for the withdrawal of the branch banks, and they hope that your lordships will be pleased, as far as lies in your lordships' power, to prevent any interference with the business of your memorialists; and that your lordships will be pleased to institute an inquiry into the system of country banking, and take into your lordships' consideration the claims of the country bankers to be regarded as parties in the intended application for the renewal of the bank charter, and that no special privilege or monopoly be granted or continued to the governor

and company of the Bank of England; but that they may be placed on a perfect equality with country bankers' in the competition which, by means of their branches, they are now carrying on with your memorialists."

The government replied, "that the interests of the country bankers should not be neglected in any negotiation between the government and the Bank of England for the renewal of the bank charter."

1830. The government reduced the interest on the new four per cent. stock to three and a half per cent. This stock was formed in the year 1822, by the reduction of the navy five per cents. to four per cent. The holders had the option of receiving for every 1007. new four per cents. either 1007. stock at three and a half per cent., not redeemable until the year 1840, or 707. at five per cent., not redeemable until the year 1873. Most of the holders chose the former. This stock is called " new three and a half per cent.," and amounts to above 139,000,000. The other stock, formed by those who chose the 707., is called the new five per cents., and amounts to little more than 466,0007. 1831. "An account of the amount of silver coin melted; also the loss sustained by the Bank of England thereby, in 1831."

1832. May 22. A committee of secrecy was appointed by the House of Commons, to inquire into the expediency of renewing the charter of the Bank of England, and into the system on which banks of issue in England and Wales are conducted. The committee was composed of the following members:

Lord Viscount Althorp

Sir R. Peel, Bart.
Lord John Russell

Mr. Goulburn

Sir J. Graham, Bart.

Mr. J. Smith

Mr. Robarts

Sir M. Ridley, Bart.
Mr. Attwood

Sir J. Newport, Bart.

Mr. Haywood

Lord Visct. Ebrington
Mr. Lawley
Sir. J. Wrottesley, Bart.
Lord Cavendish

Mr. Herries

Mr. Poulett Thomson
Mr. Courtenay
Colonel Maberly

Sir H. Parnell, Bart.
Mr. Vernon Smith

Mr. Baring
Mr. Irving

Mr. Warburton
Mr. G. Phillips

Mr. J. Morrison

Lord Viscount Morpeth

Mr. Alderman Wood
Mr. Strutt

Mr. Bonham Carter

Mr. E. J. Stanley

Mr. Ald. Thompson

On the 11th day of August the committee delivered the following report :—

"The secret committee appointed to inquire into the expediency of renewing the charter of the Bank of England, and into the system on which banks of issue in England and Wales are conducted, and to whom the petition of certain directors of joint-stock banking companies in England was referred, and who were empowered to report the minutes of evidence taken before them, have agreed upon the following report:

"Your committee have applied themselves to the inquiry which the House has committed to them, by calling for all the accounts which appeared to them necessary for the purpose of elucidating the affairs of the Bank of England, and have examined evidence for the purpose of ascertaining the principles on which it regulates the issues of its notes, and conducts its general transactions. They feel bound to state that the directors of the Bank of England have afforded to them every facility in their power, and have most readily and candidly answered every question which has been put to them, and produced every account which has been called for. The committee have also examined such witnesses as appeared to them, from their practical knowledge and experience, most likely to afford information on the important subjects under their consideration, who have all been ready to give the committee the most ample information.

"The principal points to which they have directed their attention are-"First.-Whether the paper circulation of the metropolis should be confined, as at present, to the issues of one bank, and that a commercial company; or whether a competition of different banks of issue, each consisting of an unlimited number of partners, should be permitted.

"Secondly.-If it should be deemed expedient that the paper circulation of the metropolis should be confined, as at present, to the issues of one bank, how far the whole of the exclusive privileges possessed by the Bank of England are necessary to effect this object.

"Thirdly.-What checks can be provided to secure for the public a proper management of banks of issue, and especially whether it would be expedient and safe to compel them periodically to publish their

accounts.

"With respect to the circulation of paper in this country, the committee have examined,-First, into the effect produced by the establishment of the branch banks of the Bank of England; and secondly, into the expediency of encouraging the establishment of joint-stock banks of issue in the country.

"On all these, and on some collateral points, more or less information

will be found in the minutes of evidence; but on no one of them is it so complete as to justify the committee in giving a decided opinion.

"The period of the session at which the committee commenced their labours, the importance and extent of the subjects, and the approaching close of the session, will sufficiently account to the House for the limited progress of the inquiry, and for the incompleteness of the materials which have been collected for the purpose of forming an opinion;-they have thought it better, therefore, to submit the whole of the evidence which they have taken, with a very few exceptions, to the consideration of the House.

"In their opinion, no public inconvenience will arise from this publication. The only parts of the evidence which they have thought it necessary to suppress, are those which relate merely to the private interests of individuals.

"The House will perceive that the committee have presented, as part of the evidence which they have taken, the actual amount of bullion at different times in the hands of the Bank of England. This information has never before been given to the public; it is, however, very essential to a complete knowledge of the subject, and if it had been suppressed by the committee, many parts of the evidence would have been unintelligible, and a false impression would have been produced in the minds of the public, that the bank were not so well provided with bullion as is desirable, which might have a very injurious effect. The House will, however, observe that the bank is amply provided with bullion at the present time; and it does not, therefore, appear to the committee that this information being now given to the public can be productive of any injurious consequences.

"The committee, however, by no means wish it to be understood, from their having felt themselves called upon to include this evidence in their report, that they have formed any opinion as to the propriety of periodically publishing the affairs of this or of any other bank of issue. There appears to be a difference between a publication of the affairs of the bank when an inquiry is instituted for the purpose of deciding whether the bank charter shall be renewed or not, and a periodical publication during the course of its ordinary transactions.

"Of the ample means of the Bank of England to meet all its engagements, and of the high credit which it has always possessed and which it continues to deserve, no man who reads the evidence taken before this committee can for a moment doubt; for it appears that, in addition to the surplus rest in the hands of the bank itself, amounting to 2,880,0007., the capital on which interest is paid to the proprietors, and for which the state is debtor to the bank, amounts to 14,553,0007., making no less a sum than 17,433,000l. over and above all its liabilities."

The following years were remarkable for a great increase in the profits of the bank-1786, 1796, 1800, 1805, 1806, 1814, 1815, 1816, 1822.

1786. In the year ending February, 1786, the profits were 976,1947.;