require such gold bullion to be melted and assayed by persons approved by the said governor and company at the expence of the parties tendering such gid bullion.-4.

I ower to increase Securities in the Issue Department, and issue additional Notes.-If any banker who on the 6th day of May, 1844, was issuing his own buk notes shall cease to issue his own bank notes, it shall be lawful for H. M. in council at any time after the cessation of such issue, upon the application of the said governor and company, to authorise and empower the said governor and company to increase the amount of securities in the said issue department beyond the total sum or value of 14,000,000, and thereupon to issue additional Bank of England notes to an amount not exceeding such increased amount of securities specified in such order in council, and so from time to time: provided always, that such increased amount of securities specified in such order in council shall in no case exceed the proportion of 2-3rds the amount of bank notes which the banker so ceasing to issue may have been authorised to issue under the provisions of this act; and every such order in council shall be published in the next succeeding London Gazette.-$5.

Account to be rendered by the Bank of England. - An account of the amount of Bank of England notes issued by the issue department of the Bank of England, and of gold coin and of gold and silver bullion respectively, and of securities in the said issue dep irtment, and also an account of the capital stock, and the deposits, and of the money and securities belonging to the said governor and company in the banking department of the Bank of England, on some day in every week to be fixed by the commissioners of stamps and taxes, shall be transmitted by the said governor and company weekly to the said commissioners in the form prescribed in the schedule hereto annexed marked (A), and shall be published by the said commissioners in the next succeeding London Gazette in which the same may be conveniently inserted. § 6.

Bank of England exempted from Stamp Duty upon their Notes.-From and after the said 31st day of August, 1844, the said governor and company of the Bank of England shall be released and discharged from the payment of any stamp duty, or composition in respect of stamp duty, upon or in respect of their promissory notes payable to bearer on demand; and all such notes shal thenceforth be and continue free and wholly exempt from all liability to any stamp duty whatsoever.-7.

Bank to allow 189,000l. per Annum. From and after the said 31st day of August, 1844, the payment or deduction of the annual sum of 120,000, made by the said governor and company under the provisions of the said act passed in the 4th year of the reign of his late Majesty King William IV., out of the sums payable to them for the charges of management of the public unredeemed debt, shall cease, and in lieu thereof the said governor and company, in consideration of the privileges of exclusive banking, and the exemption from stamp duties, given to them by this act, shall, during the continuance of such privileges and such exemption respectively, but no longer, deduct and allow to the public, from the sums now payable by law to the said governor and company for the charges of management of the public unredeemed debt, the annual sum of 180,000, any thing in any act or acts of parliament, or in any agreement, to the contrary notwithstanding: provided always, that such deduction shall in no respect prejudice or affect the rights of the said governor and company to be paid for the management of the public debt at the rate and according to the terms provided in the act 48 G. 3. c. 4., intituled " An Act to authorise the advancing for the Public Service, upon certain Conditions, a proportion of the Balance remaining in the Bank of England, for the payment of Unclaimed Dividends, Annuities, and Lottery Prizes, and for regulating the Allowances to be made for the Management of the National Debt."-$8.

Bank to allow the Public the Profits of increased Circulation.—In case, under the provisions hereinbefore contained, the securities held in the said issue department of the Bank of England shall at any time be increased beyond the total amount of 14,000,000Z., then and in each and every year in which the same shall happen, and so long as such increase shall continue, the said governor and company shall, in addition to the said annual sum of 180,0007., make a further payment or allowance to the public, equal in amount to the net profit derived in the said issue department during the current year from such additional securities, after deducting the amount of the expences occasioned by the additional issue during the same period, which expences shall include the amount of any and every composition or payment to be made by the said governor and company to any banker in consideration of the discontinuance at any time hereafter of the issue of bank notes by such banker; and such further payment or allowance to the public by the said governor and company shall, in every year while the public shall be entitled to receive the same, be deducted from the amount by law payable to the said governor and company for the charges of management of the unredeemed public debt, in the same manner as the said annual sum of 180,0007. is hereby directed to be deducted therefrom.-§ 9.

No new Bank of Issue.- From and after the passing of this act no person other than a banker who on the 6th day of May, 1844, was lawfully issuing his own bank notes shall make or issue bank notes in any part of the U. K.-§ 10.

Restriction against Issue of Bank Notes.-From and after the passing of this act it shall not be lawful for any banker to draw, accept, make, or issue, in England or Wales, any bill of exchange or promissory note or engagement for the payment of money payable to bearer on demand, or to borrow, owe, or take up, in England or Wales, any sums or sum of money on the bills or notes of such banker payable to bearer on demand, save and except that it shall be lawful for any banker who was on the 6th day of May, 1844, carrying on the business of a banker in England or Wales, and was then lawfully issuing, in England or Wales, his own bank notes, under the authority of a licence to that effect, to continue to issue such notes to the extent and under the conditions herein-after mentioned, but not further or otherwise, and the right of any company or partnership to continue to issue such notes shall not be in any manner prejudiced or affected by any change which may hereafter take place in the personal composition of such company or partnership, either by the transfer of any shares or share therein, or by the admission of any new partner or member thereto, or by the retirement of any present partner or member therefrom; provided always, that it shall not be lawful for any company or partnership now consisting of only 6 or less than 6 persons to issue bank notes at any time after the number of partners therein shall exceed 6 in the whole. 11.

Bankers ceasing to issue Notes may not resume.—If any banker in any part of the U. K. who after the passing of this act shall be entitled to issue bank notes shall become bankrupt, or shall cease to carry on the business of a banker, or shall discontinue the issue of bank notes, either by agreement with the governor and company of the Bank of England or otherwise, it shall not be lawful for such banker at any time thereafter to issue any such notes. -§ 12.

Existing Banks of Issue to continue under certain Limitations.—Every banker claiming under this act to continue to issue bank notes in England or Wales shall, within 1 month next after the passing of this act, give notice in writing to the commissioners of stamps and taxes at their head office in London of such claim, and of the place and name and firm at and under which such banker has issued such notes during the 12 weeks next preceding the 27th day of April last; and thereupon the said commissioners shall ascertain if such banker was, on the 6th day of May, 1844, carrying on the business of a banker, and lawfully issuing his own bank notes in England or Wales, and if it shall so appear, then the said commissioners shall proceed to ascertain the average amount of the bank notes of such banker which were in circulation during the said period of 12 weeks preceding the 27th day of April last, according to the returns made by such banker in pursuance of the act 4 & 5 Vict. c. 50., intituled "An Act to make further Provision relative to the Returns to be made by Banks of the Amount of their Notes in Circulation;" and the said commissioners or any 2 of them shall certify under their hands to such banker the said average amount, when so ascertained as aforesaid; and it shall be lawful for every such

banker to continue to issue his own bank notes after the passing of this act; provided nevertheless, that such banker shall not at any time after the 10th day of October, 1844, have in circulation upon the average of a period of 4 weeks, to be ascertained as herein-alter mentioned, a greater amount of notes than the amount so certified.-§ 13.

Provision for united Banks.-If it shall be made to appear to the commissioners of stamps and taxes that any 2 or more banks have, by written contract or agreement (which contract or agreement shall be produced to the said commissioners), become united within the 12 weeks next preceding such 27th day of April as aforesaid, it shall be lawful for the said commissioners to ascertain the average amount of the notes of each such bank in the manner herein-betore directed, and to certify the average amount of the notes of the 2 or more banks so united as the amount which the united bank shall thereafter be authorised to issue subject to the regulations of this act.-§ 14.

Duplicate Certificate to be published in the Gazette.-The commissioners of stamps and taxes shall, at the time of certifying to any banker such particulars as they are herein-betore required to certify, also publish a duplicate of their certificate thereof in the next succeeding London Gazette in which the same may be conveniently inserted; and the Gazette in which such publication shall be made shall be conclusive evidence in all courts whatsoever of the amount of bank notes which the banker named in such certificate or duplicate is by law authorised to issue and to have in circulation as aforesaid. § 15.

If Banks become united, Commissioners to certify the Amount of Bank Notes which each Bank was authorised to issue. In case it shall be made to appear to the commissioners of stamps and taxes, at any time hereafter, that any 2 or more banks, each such bank consisting of not more than 6 persons, have, by written contract or agreement (which contract or agreement shall be produced to the sad commissioners), become united subsequently to the passing of this act, it shall be lawful to the said commissioners upon the application of such united bank, to certify, in manner herein-before mentioned, the aggregate of the amounts of bank notes which such separate banks were previously authorised to issue, and so from time to time; and every such certificate shall be published in manner herein-before directed; and from and after such publication the amount therein stated shall be and be deemed to be the limit of the amount of bank notes which such united bank may have in circulation: provided always, that it shall not be lawful for any such united bank to issue bank notes at any time after the number of partners therein shall exceed 6 in the whole.-§ 16.

Penalty on Banks issuing in excess.-if the monthly average circulation of bank notes of any banker, taken in the manner herein-after directed, shall at any time exceed the amount which such banker is authorised to issue and to have in circulation under the provisions of this act, such banker shall in every such case forfeit a sum equal to the amount by which the average monthly circulation, taken as aforesaid, shall have exceeded the amount which such banker was authorised to issue and to have in circulation as aforesaid. - § 17.

Issuing Banks to render Accounts.-Every banker in England and Wales who, after the 10th day of October, 1844, shall issue bank notes, shall on some I day in every week after the 19th day of October, 1844 (such day to be fixed by the commissioners of stamps and taxes), transmit to the said commissioners an account of the amount of the bank notes of such banker in circulation on every day during the week ending on the next preceding Saturday, and also an account of the average amount of the bank notes of such banker in circulation during the same week; and on completing the first period of 4 weeks, and so on, completing each successive period of 4 weeks, every such banker shall annex to such account the average amount of bank notes of such banker in circulation during the said 4 weeks, and also the amount of bank notes which such banker is authorised to issue under the provisions of this act; and every such account shall be verified by the signature of such banker or his chief cashier, or, in the case of a company or partnership, by the signature of a managing director or partner or chief cashier of such company or partnership, and shall be made in the form to this act annexed marked (B); and so much of the said return as states the weekly average amount of the notes of such bank shall be published by the said commissioners in the next succeeding London Gazette in which the same may be conveniently inserted; and if any such banker shall neglect or refuse to render any such account in the form and at the time required by this act, or shall at any time render a false account, such banker shall forfeit the sum of 1007. for every such offence. - § 18.

Mode of ascertaining the average Amount of Bank Notes of each Banker. For the purpose of ascer taining the monthly average amount of bank notes of each banker in circulation, the aggregate of the amount of bank notes of each such banker in circulation on every day of business during the first complete period of 4 weeks next after the 10th day of October, 1844, such period ending on a Saturday, shall be divided by the number of days of business in such 4 weeks, and the average so ascertained shall be deemed to be the average of bank notes of each such banker in circulation during such period of 4 weeks, and so in each successive period of 4 weeks, and such average is not to exceed the amount certified by the commissioners of stamps and taxes as aforesaid. § 19.

Commissioners empowered to cause the Books of Bankers to be inspected. Whereas, in order to insure the rendering of true and faithful accounts of the amount of bank notes in circulation, as directed by this act, it is necessary that the commissioners of stamps and taxes should be empowered to cause the books of bankers issuing such notes to be inspected, as herein-after mentioned; be it therefore enacted, that all and every the book and books of any banker who shall issue bank notes under the provisions of this act, in which shall be kept, contained, or entered any account, minute, or memorandum of or re. lating to the bank notes issued or to be issued by such banker, or of or relating to the amount of such notes in circulation from time to time, or any account, minute, or memorandum the sight or inspection whereof may tend to secure the rendering of true accounts of the average amount of such notes in circulation, as directed by this act, or to test the truth of any such account, shall be open for the inspection and examination, at all seasonable times, of any officer of stamp duties authorised in that behalf by writing, signed by the commissioners of stamps and taxes or any two of them; and every such officer shall be at liberty to take copies of or extracts from any such book or account as aforesaid: and if any banker or other person keeping any such book, or having the custody or possession thereof, or power to produce the same, shall, upon demand made by any such officer, showing (if required) his authority in that behalf, refuse to produce any such book to such officer for his inspection and examination, or to permit him to inspect and examine the same, or to take copies thereof or extracts therefrom, or of or from any such account, minute or memorandum as aforesaid, kept, contained, or entered therein, every such banker or other person so offending shall for every such offence forfeit the sum of 100%.: provided always, that the said commissioners shall not exercise the powers aforesaid without the consent of the Lords of the Treasury. - § 20.

All Bankers to return Names once a Year to the Stamp Office. Every banker in England and Wales who is now carrying on or shall hereafter carry on business as such shall, on the 1st day of January in each year, or within 15 days thereafter, make a return to the commissioners of stamps and taxes at their head office in London of his name, residence, and occupation, or, in the case of a company or partnership, of the name, residence, and occupation of every person composing or being a member of such company or partnership, and also the name of the firm under which such banker, company, or partnership carry on the business of banking, and of every place where such business is carried on; and if any such banker, company, or partnership shall omit or refuse to make such return within 15 days after the said 1st day of January, or shall wilfully make other than a true return of the persons as herein required, every banker, company, or partnership so offending shall forfeit and pay the sum of 501.; and the said commissioners of stamps and taxes, shall, on or before the 1st day of March in every year, publish in some newspaper circulating within each town or county respectively, a copy of the return so made by every

banker, company, or partnership carrying on the business of bankers within such town or county respectively, as the case may be. -$21.

Bankers to take out a separate Licence for every Plice at which they issue Notes or Bills.—Every banker who shall be liable by law to take out a licence from the commissioners of stamps and taxes to authorise the issuing of notes or bills, shall take out a separate and distinct licence for every town or place at which he shall, by himself or his agent, issue any notes or bills requiring such licence to authorise the issuing thereof, any thing in any former act contained to the contrary thereof notwithstanding provided always, that no baker who on or before the 6th day of May, 1844, had taken out four such licences, which on the said last-mentioned day were respectively in force, for the issuing of any such notes or bills at more than 4 separate towns or places, shall at any time hereafter be required to take out or to have in force at one and the same time more than 4 such licences to authorise the issuing of such notes or bills at all or any of the same towns or places specified in such licences in force on the said 6th day of May, 1844, in which towns or places respectively, such bankers had on or before the said last-mentioned day, issued such notes or bills in pursuance of such licences or any of them respect. ively. - §22.

Compensation to certain Bankers named in the Schedule. Whereas the several bankers named in the schedule hereto annexed marked (C) have ceased to issue their own bank notes under certain agree. ments with the governor and company of the Bank of England; and it is expedient that such agreements should cease and determine on the 31st day of December next, and that such bankers should receive by way of compensation such composition as hereafter mentioned; and a list of such bankers, and a statement of the maximum sums in respect of which each such banker is to receive compensation, hath been delivered to the commissioners of stamps and taxes, signed by the chief cashier of the Bank of England; be it therefore enacted, that the several agreements subsisting between the said governor and company and the several bankers mentioned in the schedule hereto relating to the issue of bank of England notes shall cease and determine on the 31st day of December next; and from and after that day the said governor and company shall pay and allow to the several bankers named in the schedule hereto marked (C), so long as such banker shall be willing to receive the same, a composition at and after the rate of 17. per cent. per annum on the average amount of the bank of England notes issued by such bankers respectively and actually remaining in circulation, to be ascertained as follows; (that is to say,) on some day in the month of April, 1845, to be determined by the said governor and company, an account shall be taken of the bank of England notes delivered to such bankers respectively by the said governor and company within 3 months next preceding, and of such of the said bink of England notes as shall have been returned to the bank of England, and the balance shall be deemed to be the amount of the bank of England notes issued by such bankers respectively and kept in circulation; and a similar account shall be taken at intervals of 3 calendar months, and the average of the balances ascertained on taking 4 such accounts shall be deemed to be the average amount of bank of England notes issued by such bankers respectively and kept in circulation during the year 1845, and on which amount such bankers are respectively to receive the aforesaid composition of 1 per cent. for the year 1845; and similar accounts shall be taken in each succeeding year; but in each year such accounts shall be taken in different months from those in which the accounts of the last preceding year were taken, and on different days of the month, such months and days to be determined by the said governor and company; and the amount of the composition payable as aforesaid shall be paid by the said governor and company out of their own funds; and in case any difference shall arise between any of such bankers and the governor and company of the bank of England in respect of the composition payable as aforesaid, the same shall be determined by the Chancellor of the Exchequer for the time being, or by some person to be named by him, and the decision of the Chancellor of the Exchequer, or his nominee, shall be final and conclusive; provided always, that it shall be lawful for any banker named in the schedule hereto annexed marked (Ć) to discontinue the receipt of such composition as aforesaid, but no such banker shall by such discontinuance as aforesaid thereby acquire any right or title to issue bank notes.-§ 23.

Bank of England to be allowed to compound with Issuing Banks.-It shall be lawful for the said governor and company to agree with every banker who under the provisions of this act shall be entitled to issue bank notes, to allow to such banker a composition at the rate of 1 per cent. per annum on the amount of bank of England notes which shall be issued and kept in circulation by such banker, as a consideration for his relinquishment of the privilege of issuing his own bank notes; and all the provisions herein contained for ascertaining and determining the amount of composition payable to the several bankers named in the schedule hereto marked (Č) shall apply to all such other bankers with whom the said governor and company are hereby authorised to agree as aforesaid; provided that the amount of composition payable to such bankers as last aforesaid shall in every case in which an increase of securities in the issue department shall have been authorised by any order in council be deducted out of the amount payable by the said governor and company to the public under the provisions herein contained: provided always, that the total sum payable to any banker under the provisions herein contained by way of composition as aforesaid, in any 1 year, shall not exceed, in case of the bankers mentioned in the schedule hereto marked (C), 1 per cent. on the several sums set against the names of such bankers respectively in the list and statement delivered to the commissioners of stamps as aforesaid, and in the case of other bankers shall not exceed 1 per cent. on the amount of bank notes which such bankers respectively would otherwise be entitled to issue under the provisions herein contained.—§ 24. Compositions to cease on 1st August, 1856-All the compositions payable to the several bankers mentioned in the schedule hereto marked (C), and such other bankers as shall agree with the said governor and company to discontinue the issue of their own bank notes as aforesaid, shall, if not previously determined by the act of such banker as herein-before provided, cease and determine on the 1st day of August, 1856, or on any earlier day on which parliament may prohibit the issue of bank notes.-§ 25.

Banks within Sixty five miles of London may accept, &c. Bills. From and after the passing of this act it shall be lawful for any society or company or any persons in partnership, though exceeding 6 in number, carrying on the business of banking in London, or within 65 miles thereof, to draw, accept, or endorse bills of exchange, not being payable to bearer on demand, anything in the herein-before recited act passed in the 4th year of the reign of his said majesty King William IV., or in any other act, to the contrary notwithstanding. - § 26.

Bank to enjoy Privileges, subject to Redemption. -The said governor and company of the bank of England shall have and enjoy such exclusive privilege of banking as is given by this act, upon such terms and conditions, and subject to the termination thereof at such time and in such manner as is by this act provided and specified; and all and every the powers and authorities, franchises, privileges, and advantages, given or recognised by the said recited act, 3 & 4 Will. 4. c. 98, as belonging to or enjoyed by the said governor and company of the bank of England, or by any subsequent act or acts of parliament, shall be and the same are hereby declared to be in full force, and continued by this act, except so far as the same are altered by this act; subject, nevertheless, to redemption upon the terms and condi. tions following; viz., at any time upon 12 months' notice to be given after the 1st day of August, 1855, and upon repayment by parliament to the said governor and company or their successors of the sum of 11,015,100, being the debt now due from the public to the said governor and company, without any deduction, discount, or abatement whatsoever, and upon payment to the said governor and company and their successors of all arrears of the sum of 100 0007. per annum, in the last-mentioned act mentioned, together with the interest or annuities payable upon the said debt or in respect thereof, and also upon repayment of all the principal and interest which shall be owing unto the said governor and company and their successors upon all such tallies, exchequer orders, exchequer bills, or parliamentary funds which

the said governor and company or their successors shall have remaining in their hands or be entitled to at the time of such notice to be given as last aforesaid, then and in such case, and not till then, the said exclusive privileges of banking granted by this act shall cease and determine at the expiration of such notice of 12 months; and any vote or resolution of the house of commons, signified under the hand of the speaker of the said house in writing, and delivered at the public office of the said governor and company, shall be deemed and adjudged to be a sufficient notice. § 27.

Interpretation Clause.-The term "bank notes" used in this act shall extend and apply to all bills or notes for the payment of money to the bearer on demand other than bills or notes of the governer and company of the bank of England; and the term "bank of England notes" shall extend and apply to the promissory notes of the governor and company of the bank of England payable to bearer on demand; and the term "banker" shall extend and apply to all corporations, societies, partnerships, and persons, and every individual person carrying on the business of banking, whether by the issue of bank notes or otherwise, except only the governor and company of the bank of England; and the word "person" used in this act shall include corporations; and the singular number in this act shall include the plural number, and the plural number the singular, except where there is any thing in the context repugnant to such construction; and the masculine gender in this act shall include the feminine, except where there is any thing in the context repugnant to such construction.— § 28.

SCHEDULE A.
BANK OF ENGLAND.

An Account pursuant to the Act 7 & 8 Vict. cap. 32, for the Week ending on Wednesday the 15th of December, 1838.

SCHEDULE C. includes the names of the various Banks that have ceased to issue Notes; but they are not of interest enough to be reprinted.

SECT. V. MANAGEMENT OF THE BANK OF ENGLAND.

Since 1826 the Bank has established branches in some of the great commercial towns. The mode and terms of conducting business at which have been described as follows:

"The branch bank at Swansea (and the same is true of those established in other places) is to be a secure place of deposit for persons having occasion to make use of a bank for that purpose; such persons are said to have drawing accounts: to facilitate to the mercantile and trading classes the obtaining discounts of good and unexceptionable bills, founded upon real transactions, two approved names being required upon every bill or note discounted; these are called discount accounts. The applications of parties who desire to open discount accounts at the branch are forwarded to the parent establishment for approval, and an answer is generally received in about ten days. When approved, good bills may be discounted at the branch without reference to London. Bills payable at Swansea, London, or any other place where a branch is established, discounted under this regulation. The dividends on any of the public funds, which are payable at the Bank of England, may be received at the branch by persons who have opened drawing accounts,' after signing powers of attorney for that purpose, which the branch will procure from London. No charge is made in this case, except the expense of the power of attorney and the postages incurred in transmitting it.

are

Purchases and

sales of every description of government securities are effected by the branch at a charge corresponding to that made by the local bankers where the branch is situated. A com. mission, including brokerage in London, and all expenses of postage, is charged on paying at the Bank of England bills accepted by persons having drawing accounts at Swansea, such bills to be advised by the branch; also for granting letters of credit on

London, or on the other branches. The branch grants bills on London, payable at seven days' date, without acceptance, for sums of 107, and upwards. Persons having drawing accounts at Swansea may order money to be paid at the bank in London to their credit at Swansea, and vice versa, at a charge of 6d. in lieu of postage. The branch may be called upon to change any notes issued and dated at Swansea; but they do not change the notes of the bank in London, nor receive them in payment, unless as a matter of courtesy where the parties are known. Bank post bills, which are accepted and due, are received at the branch from parties having drawing accounts, and taken to account without any charge for postage; but unaccepted bank post bills, which must be sent to London, are subject to the charge of postage, and taken to account when due. No interest is allowed on deposits. No advance is made by the branch upon any des cription of landed or other property, nor is any account allowed to be overdrawn. The notes are the same as those issued by the parent establishment, except being dated Swansea, and made payable there and in London. No note issued exceeds the sum of 5001., and none are for a less amount than 54"

But though it might have been advisable to establish offices in Manchester, Birmingham, and one or two more great towns, for the interchange of bank-notes and gold, we much doubt whether the establishment of the branch banks has been advantageous, Speaking generally, it may be laid down that local affairs are best conducted by local agencies; and this is believed to be especially the case in banking. It is a business which is most likely to flourish when those by whom banks are established in country districts belong to those districts, and are well acquainted with the character and pursuits of those with whom they deal.

Bank of England in connection with Government. The Bank of England transacts the whole business of government. "She acts not only," says Adam Smith, “as an ordinary bank, but as a great engine of state. She receives and pays the greater part of the annuities which are due to the creditors of the public; she circulates Exchequer bills; and she advances to the government the annual amount of the land and malt taxes, which are frequently not paid till some years thereafter."

Assistance rendered by Bunk to the Mercantile Interest. The greater part of the paper of the Bank has generally been issued in the way of advances or loans to government, upon security of certain branches of the revenue, and in the purchase of Exchequer bills and bullion; but her issue through the medium of discounts and advances to individuals has also been at all times considerable, while during war, and in periods of distress, it is occasionally very great. Generally, however, the directors do not appear to have thought it advisable to enter into any very keen competition with private bankers in the discounting of mercantile paper. And hence it is that the rate of interest charged by the Bank for loans being usually equal to, and sometimes rather above the market rate, comparatively few applications are made to her, in ordinary periods, for discounts. But, at the same time, every one who has any reasonable security to offer, knows where they may always be had; while the rate of interest charged by the Bank necessarily forms a maximum rate which no other establishment can exceed. When, however, any circumstances occur to occasion a pressure in the money market, or a difficulty of obtaining accommodation in the usual channels, the market rate of interest generally rises to the rate fixed by the Bank, how high soever that may be, and on such occasions the private bankers, and the public generally, resort to the Bank for aid. She then becomes, as it were, a bank of support; and has, as such, on various occasions, rendered good service to-public credit, and to the commercial interests of the country.

But, at the same time, it must be admitted that the interference of the Bank in assisting the commercial interest is a matter that requires the greatest consideration, and that it can only be safely undertaken in rare instances and under very peculiar circumstances. We repeat again, that however a drain for gold may originate, the fact of its existence shows conclusively that gold is more valuable abroad than here, and consequently that the currency is redundant and ought to be diminished. Under such circumstances, it is the imperative duty of the directors, if they would prevent the total exhaustion of their banking reserve, not to fill up the vacuum caused by the exchange of notes for bullion, by the issue of fresh notes. It is at such periods, no doubt, that the applications for assistance are the most urgent; but it is impossible to yield to them, and at the same time to enforce that systematical and continuous reduction of the issues which is indispensable for the safety of the banking department of the Bank. She can no longer assist herself, as on former occasions, by making fresh issues of paper. And in truth that resource was of no real advantage to her, but the reverse. It tempted her to disregard those great principles and warnings which never can be neglected with impunity. The great commercial crises that took place in 1793, in 1815-16, in 1825, and in 1836-39, were all increased in violence and destructiveness by the Bank declin