being an increase of 124,970. over that of the preceding year, and 122,540. over the following year. We find that between the last day of February, 1785 and 1786, the circulation of notes had increased from 5,923,0907. to 7,581,9607.: this no doubt was the main cause of the profits; for the deposits, the public securities, and the private securities had all decreased; and what was also unfavourable, a considerable increase had taken place in the stock of bullion. It seems likely that this increase of bullion did not occur till the latter end of the year, and the diminution of profits in the following years arose from keeping up this large amount of bullion. 1796. This year the profits had increased from 887,6687. to 1,114,0287. A great reduction had taken place in the circulation in the course of this year, but this decrease had probably been gradual, so that there was a profit for a good part of the year on the large amount; and on the other hand, there was an increase of above 500,0007. in the private securities or discounts, and a much larger decrease in the stock of bullion. The diminution in the amount of bullion was about the same amount as the diminution of the circulation, and was no doubt occasioned by a demand for gold upon the bank, in consequence of the unfavourable state of the foreign exchanges. This issue of gold, while confined to the amount the bank had previously on hand, would not diminish their profits. The gold might as well be in circulation as be confined in the coffers of the bank. 1800. This year the profits increased from 942,5687. to 2,129,0487. By reference to Table II. we find there was a great increase in the circulation -the public securities and the private securities, and a diminution in the amount of bullion. All these are favourable to an increase of profits. 1805. In this year the profits were much larger than those of the preceding year, having increased from 1,109,9387. to 1,371,0387. This arose from a great increase in the deposits, and also in the public securities. 1806. The profits again increased from 1,371,0387. to 1,674,0387. The cause of this is not very evident. The circulation, and the private securities, and the amount of bullion, were about the same as the preceding year. A reduction of 2,000,000l. had also taken place in the public securities. We should imagine there would be a reduction of profit, rather than an increase. Possibly, however, the public securities which were parted with were sold at a much higher price than they cost, and hence might arise a considerable profit. 1814. The profits advanced from 1,494,6207. to 1,765,7007., arising from an increase in the circulation, an increase in the deposits, and a considerable increase in the private securities. 1815. An increase of profits, arising from an increase in the circulation and in the public securities. 1816. An increase of profit, from 1,857,950. to 2,172,4107. This profit seems to have risen chiefly from an increase in the private securities. Possibly some profit was also realized from the large reduction of the public securities. The profit on the increase in the deposits was not equivalent to the loss upon the increase of bullion. 1822. Here the profits rose from 1,092,7807. to 1,971,8801., while every source of profit appears diminished. The circulation, the deposits, the public and the private securities, were all considerably less than in the preceding year, and the average stock of bullion much increased. The only way of accounting for this extraordinary profit, is to suppose that it was realized by the sale of public securities. They were reduced from 16,010,990l. to 12,478,1337. I shall now notice those years in which there was a diminution of profits. 1790. In this year the profits were only 671,4387.; and this, with an increase in the circulation, the deposits, and the public securities. But, on the other hand, there was a great falling off in the private securities, and an increase in the amount of bullion. 1798. The profits were only 841,068, while the preceding year they amounted to 924,9887., and the following year to 942,5687., while there was a great increase in the circulation and the deposits. But there was also a great increase of bullion; from 1,086,1707. it was raised to 5,828,9407. This year, it will be recollected, was the period of the Bank Restriction Act being passed, and no doubt the bank went to great expense in order to obtain gold. 1804. The profits fell from 1,359,8287. to 1,109,9387., notwithstanding an increase in the circulation, the deposits, and the public securities. There was, however, a diminution in the private securities. 1809. A fall in the profits from 1,481,6707. to 1,156,6007., in consequence, it would appear, of a fall in the deposits. 1817. A fall of profit from 2,172,4107. to 1,316,780., in consequence of a fall in the deposits, and an immense fall in the private securities. There was also an increase in the amount of bullion. This was the first year after the termination of the war. 1818. In this year the profits fell still lower, being only 911,4801. There was a further fall in the deposits, and a still greater fall in the private securities; and also an increase in the average stock of bullion. 1819. The profits this year appear to be only 362,5807., notwithstanding a considerable increase in the private securities, and a great reduction in the stock of bullion. The bank returns are not sufficiently minute to enable us to account for this falling off. It may have been occasioned by losses, expenditure on bank buildings, &c., but we have no data upon which to form any conjecture on the subject. :0. The profits, though still below the average, were a considerable advance on the preceding year, notwithstanding a reduction in the deposits and in the private securities. It appears, however, that there was a considerable reduction in the average stock of bullion. 1828. The profits were reduced from 1,186,280l. to 917,6707., in consequence of a reduction in the private securities, and an increase of bullion. 1830. An apparent fall of profits from 1,209,4907. to 930,7901. This, however, is only apparent; as a portion of the losses by Fauntleroy's forgeries, amounting to 250,000l., were passed to the debit of the profit and loss account this year. The profits of the bank are derived from the following sources:-First, The interest on their capital, which is lent to the public at three per cent. Secondly, the use of the rest, or surplus capital. Thirdly, the use of the capital raised by the circulation and the deposits. Fourthly, the allowance they receive as agents for transacting the business of the government. There is another source of profit, arising from the accidental destruction of notes that are in circulation. The amount cannot be ascertained, but it may be presumed, from the following account, that the sum is not inconsiderable : An account of the amount of bank notes in circulation, of dates beyond five, ten, fifteen, and twenty years respectively: £ Bank notes of 51. and upwards, and post bills outstanding, Bank notes of 51. and upwards, and post bills The bank are unable to state what amount of 17. and 21. notes) is outstanding of the dates above specified, but the present amount is. 280,380 95,600 149,860 511,490 1,037,330 297,000 An account of all distributions made by the Bank of England amongst the proprietors of bank stock, whether by money. payments, transfer of five per cent. annuities, or otherwise, under the heads of bonus, increase of dividend, and increase of capital, betwixt the 25th February, 1797, and 31st March, 1832, in addition to the ordinary dividend of seven pounds per cent. on the capital stock of that corporation existing in 1797; including therein the whole dividend paid since June, 1816, on their increased capital, stating the period when such distributions were made and the aggregate amount of the whole : 11,642,4007. is £ In June, 1799, 101. per cent. bonus in Five per Cents. 1797, on 1,164, 240 May, 1801, 51. ditto Navy Five per Cents. ditto 582,120 Nov., 1802, 211. ditto Oct., 1804, 51. ditto Cash ditto 582, 120 Oct., 1805, 51. ditto ditto ditto 582,120 Oct., 1806, 51. 582,120 From April, 1807, to Oct.,) 1822, both inclusive From April, 1823, to Oct.,) 1831, both inclusive In June, 1816, increase of capital at 251. per cent. is. From Oct., 1816, to Oct.,) 1822, both inclusive From April, 1823, to Oct.,) 1831, both inclusive (Dividend at the rate of 107. per) (Increase of dividend at the rate of 5,588,352 1,047,816 2,910,600 1,891,890 Dividend at the rate of 81. per cent. 2,095,632 Annual dividend payable on Bank Stock in 1797, on a capit of 11,642,4007., at the rate of 77. per cent. per annum Annual dividend payable since June, 1816, on a capital of 14,553,000l. to October, 1822, inclusive, at the rate of 101. per cent. per annum 1,455,300 Annual dividend payable from April, 1823, to 31st March,) 1832, both inclusive, on a capital of 14,553,000l., at the rate 1,164.240 of 81. per cent. per annum 1833. May 31. A meeting of the proprietors of bank stock was held at the Bank of England, to receive a communication from the court of directors, of the result of the negotiation with his Majesty's government, respecting the renewal of the bank charter. The following letter from Lord Althorp, the Chancellor of the Exchequer, was read by the secretary:— "GENTLEMEN, "Downing Street, May 2, 1833. "After duly considering the conversation I have had with you, the substance of which I have reported to my colleagues, his Majesty's government have directed me to make the following proposals to you for the purpose of renewing the bank charter. "1. We propose to renew the charter for twenty-one years, subject, however, to this condition:-that if at the end of ten years the then existing government should so think fit, they may give a twelvemonth's notice to the bank that the charter shall expire at the end of eleven years. "2. That no banking company consisting of more than six partners shall issue notes payable on demand within the metropolis, or within sixty-five miles from the metropolis. Banking companies, however, consisting of any number of partners established at a greater distance from the metropolis than sixty-five miles, shall have the right to draw bills on London without restriction as to their amounts, and to issue notes payable in London. "3. Bank of England notes shall be a legal tender, except at the Bank of England, or at any of its branches. "4. Bills not having more than three months to run before they become due, shall not be subject to the usury laws. "5. An account, similar to that laid before the bank committee, of the amount of bullion and securities in the hands of the bank, and of the amount of notes in circulation, and of the deposits in the hands of the bank, shall be transmitted, as a confidential paper, weekly, to the Chancellor of the Exchequer: these accounts shall be consolidated at the end of each quarter, and the average state of the bank accounts for the preceding quarter published quarterly in the Gazette. "A bill will also be introduced into Parliament, with the view of regulating country banks. The provisions of this measure will be such as to hold out an inducement to the establishment of joint-stock banks who will not issue their own notes. "His Majesty's government desire me to call your attention to the advantages which these different propositions are likely to confer upon the bank. Their tendency must be to extend the circulation of its notes, and by relieving bills at short dates from the usury laws to facilitate its operations. While, on the other hand, the only relaxation in its exclusive privileges, as they at present exist, which is required-is the permission given to joint-stock banks, established at a greater distance than sixty-five miles from the metropolis, to draw bills and to issue notes payable in London. His Majesty's government, therefore, think that they have a right to expect some considerable pecuniary advantages from the bank in the management of the government business. They consequently propose that government should repay to the bank twenty-five per cent. of the debts of 14,500,000l. now due, and that the bank should deduct from the |