JOURNAL OF BANKING, CURRENCY, AND FINANCE.

1

OPERATIONS OF THE BANK OF ENGLAND IN 1852.

The London Circular to Bankers presents several elaborate tables, being an analysis of the weekly returns of the Bank of England for the year ending December, 1852. The tables show by annotation the highest and lowest amount of each item of the series. The Circular furnishes also a carefully drawn summary of the whole, which we append:

1. MOVEMENTS IN THE ISSUE DEPARTMENT.

The highest amount of notes issued during the year 1852, was on the 10th day of July, being 35,878,7657. against 30,818,2507. on the 20th of December in the previous year; and the lowest amount in 1852 was 30,992,4507. on the 3d day of January, against 26,642,270l. on May 3, 1851.

The notes in actual circulation reached their highest figure on the 10th day of July, being 23,747,7557., showing an increase over that of the previous year of 3,049,500l.; the lowest amount in circulation in 1852 was 19,284,590., on the 3d day of January, being 608,3957. above the lowest amount in 1851. It will be seen in the tabular statement under this head, that the actual circulation on the 10th day of July was below the amount of gold held in the coffers of the bank.

It will be found that the increase of the metallic assets of the bank began in the week ending August 2d, 1851, and continued every week with only two exceptions, namely, September 6th, and December the 27th, for thirty-five weeks, down to March the 27th, 1852. During this period the total increase of gold-after deducting the decrease for the two weeks referred to-was 6,064,9687.; but this remarkable increase did not rest at this point; for, after a trifling decrease in the two succeeding weeks of only 556,670, the increase progressed for thirteen weeks more, namely, from April the 17th to July 10th, inclusive, adding a further sum of 3,701,6507. to the gold in the issue department of the bank, and at the latter date the total value had reached the enormous sum of 21,845,3907. sterling, the largest amount which had been possessed by the proprietor since the foundation of the company. In comparing the highest and lowest points in the amount of gold bullion held during this year and the two preceding ones, the result will stand as below:

So that while the highest amounts of gold bullion in 1850 and 1851 differed very little from each other, the highest amount in 1852 shows an increase of upwards of 5,000,000l. sterling over that of the previous year.

In silver bullion the changes were so slight as scarcely to demand any particular notice. In the previous statement we pointed out the great diminution in the quantity of silver bullion held by the bank in the month of October, 1846, which then amounted to 2,727,0012, but which had decreased to 33,3751. on the 1st of March in 1852. Since that date no alteration took place in the amount until August 14th, when it decreased to 18,9677., and in three weeks afterwards it was 19,154, at which it stands at the present time.

2. THE BANKING DEPARTMENT.

It can scarcely be supposed that the remarkable increase which has taken place in the gold possessed by the bank can have occurred without producing some considerable changes in the banking department of the establishment, connected as it is with the great trading and commercial operations of the empire. Taking each head in the order in which it falls in the table we have given, it appears that the "Rest" in the banking department reached its maximum 3,624,4187. on the 3d day of April, and its minimum on the 5th day of June.

Under the head of Public Deposits the highest amount is below that of 1851, being only 9,447,5167. against 10,796,5557.; the lowest amount in favor of the exchequer was 3,065,9927. against 3,957,0067. in 1851. The Public Deposits seem to have stood at a lower figure in each of the three years ending 1852, by the following

Under the head of Other Deposits, which include all private accounts, and accounts of bankers and railway and other joint-stock companies, there is a very remarkable increase, the maximum amount exceeding that of the previous year by nearly 44 millions. The following shows the highest and lowest for three years:

Seven-day and other bills stood at their highest point on the 13th day of November, being 1,507,1617.; and at the lowest on the 20th day of March, being 1,061,5207.; when compared with the previous year the maximum shows an increase of 179,9357, and the minimum an increase of 45,4351.

The total liabilities of the bank in the Banking Department in 1852 stood at 40,622,3257. on the 24th of December; and the lowest amount was 35,344,376/. on the 17th of January, which was an increase on the maximum amount in 1851 of 1,414,850, and an increase on the minimum amount of 2,848,2777.

Under the head of Government Securities, the variation has presented nothing of importance, the highest amount being 14,301,0957. on the 10th day of April, and the lowest 13,233,7637. January 10th. The favorable state of the exchequer, and the easy state of the money market arising from the great increase in the capital of the bank, would operate favorably in this respect.

Other securities, which comprise commercial bills discounted, advances on bills, bonds, and other descriptions of securities, the highest point reached was below that of 1851; and in no part of the latter year did the private securities of the bank fall so low as in 1852-the maximum in the previous year was 15,181,6987., and in 1852 it was 14,135,8527.; and in 1851 the minimum was 11,366,1487., and in 1852 it was 10,646,723. Taking the commercial paper discounted at about half the sum stated under this head, there is a decrease shown in the Discount Department of the bank when compared with the previous year; and it was only towards the close of the year that the securities under this head began to increase, and the demand for money became more active previously to the rate of discount being advanced from 2 to 24 per cent in January of the following year.

The notes in reserve show the natural result of an increase of gold in the Issue Department, as all notes issued beyond the extent of 14,000,000l. upon the security of the debt due to the bank and Government Securities, must be represented by gold and silver bullion. This resource of the bank, it will be seen, has been well supported during the year 1852, and has been the great basis of public and private credit up to the present time, and without which it is impossible that we could have sustained the imimense increase which has taken place in our commercial and manufacturing enterpr se during the past two years. We will give to the legislators all the credit that is due to their sagacity, prudence, and foresight; but it is to the increase of gold alone that we can attribute our security and the stability of our speculations-for without that, nothing would have dislodged the millions from their ancient homes, and distributed the produce and industry of the globe over every land.

3. MOVEMENTS IN THE BULLION DEPARTMENT.

The following statement shows the quantities of gold and silver received and delivered, in continuation of those published in February of last year. As the Bank of England introduced the practice of weighing gold and silver by the ounce Troy, and decimal parts of an ounce in November last, we have reduced the receipts and deliveries in previous years to ounces and decimal parts of an ounce, that the comparisons may be the more readily understood.

These statements show that the receipts of gold, which began to increase in the last quarter of 1851, maintained their steadiness throughout the whole of 1852making the total amount 4,815,657 ounces; being an increase of 1,373,940 ounces over the previous year-or, at 77s. 9d. per ounce, about 5,341,1917. sterling, and nearly equal to the total receipts in 1850. By reducing the receipts and the deliv eries for the three years ending 1852, to their equivalent money value, we obtain the following results:

Gold Delivered.

£

3,735,203

3,486,500

4,722,173

£11,943,876

The difference in favor of the bank for the three years ending 1851, was 15,629,0837; but for the three years ending 1852, it was no less than 26,096,6207.

The total receipts and deliveries also of silver show a large increase in 1852 over the previous year; but they nearly balance each other in amount. The amounts for the three years ending 1852 were as follows:

These amounts will be found to differ with those we gave in the previous statement; on the former occasion we calculated the value of silver at 668. the pound troy, or 66d. the ounce; but we think the approximation is nearer the value by taking it at 62d. the ounce.

Such were the astonishing results produced in the several departments of the Bank of England in 1852, arising, as we may affirm, almost entirely from the discoveries of gold in Australia and California. What may arise in future, we must leave it to time to unfold.

THE PUBLIC REVENUES OF WURTEMBERG.

A correspondent of the Evening Post, writing from the South of Germany, gives, on the authority of one of the financial officers, the following account of the public revenues of Wurtemberg, one of the German States:

The state at large maintains its king, its court, its army, its judiciary system, and its legislative expenses:

1. Out of revenues derived by indirect taxes, which spring from duties levied on imports. Wurtemberg is one of the states forming the Zoll-Verein, or Customs Union, for details about which I must refer you to the books. These indirect taxes produce not quite half that is requisite for the support of the government. They are levied principally on sugar, ($7 per 100 lbs.,) coffee, ($84 per 100 lbs..) silk, cotton goods, etc. These duties produce, in a population of two and a half millions of inhabitants, about $2,000,000.

2. From its public property, forests, salines, (salt costs here 2 kruger per lb.-it costs the government less than 1,) water powers, meadow lands, old feudal property, part wrested from nobles, end much of it from the Catholic Church at the time of the Reformation. This branch is a most complex part of the government; it requires most minute legislative and administrative details. I can but state its general outlines, and add, that after some reflection, I have no remedy to propose, since difficulties almost insurmountable, all the results of "vested rights," meet one at every step.

3. From direct taxes. These alone are periodically levied by the legislature. They are also levied according to a very complex system. They-that is, the amount found necessary by the legislature-are divided into twenty-four parts, 17-24ths of which must be borne by realty (the ground, the soil,) 3-24ths by trade and handicraft, and 4-24ths by buildings and superstructures. If, therefore, the legislature finds that the state requires, in addition to the preceding two sources, 2,400,000, then

Ground
Trade
Buildings

.....

.pays 1,700,000
300,000
400,000

Direct taxes,

and so again, in relative proportion, whatever may be the amount. therefore, vary with the demands of government, and are high or low, as the previous sources are great or little, and as the expenses of government are high or low.

The ground is valued somewhat after your manner in New York; its value, however, being more fixed, it is easier determined. The government here is also more inquisitorial, and therefore the real relative value is, in almost all instances, ascertained.

Trades pay their fixed share, according to fixed classes. Every mechanic has to pay something for his trade, the least being $2 per year, somewhat after our former lawyers' tax in Ohio.

Merchants are divided into six classes, according to their respective annual amount of business, (not capital employed,) the class being determined by the statement, upon honor, of the merchants.

The value of buildings is fixed equally for insurance and leasable purposes, the two going together. This part of the system deserves a separate notice, and as soon as I am furnished with greater details, I shall give it in subsequent numbers.

These direct taxes are levied from a kind of grand valuation, formed as stated, here called "Cataster."

Towns and cities are authorized, through their councils, to levy upon this grand valuation a certain limited amount of tax. These communities have also always more or less extensive public property in water powers, forests, and hospital property; and formerly the rents from this property sufficed to cover all expenses. Napoleon's

wars and forced levies, with the exactions of our time, many of which created debts of all kinds, have rendered taxation necessary. This taxation is levied by the local authorities as with us-only here the levies must pass the scrutiny and approval of a royal financial officer. Might not such a financial veto be good in our cities!

BANK CIRCULATION IN WISCONSIN.

The Milwaukie News of July 1st, 1853, says the law of the last legislature against the circulation of unauthorized bank notes in this State, goes into operation to-day. The following is the first and most important section of this law:"No person or per sons shall issue, pay out or pass, and no body corporate shall issue, pay out, pass, or receive in this State as money, or as an equivalent for money, any promissory note, draft, order, bill of exchange, certificate of deposit, or other paper of any form whatever in the similitude of bank paper, circulating, or intended to circulate as money or banking currency, that is not at the time of such issuing, paying out, passing, or receiving, expressly authorized by some positive law of the United States, or of Canada, and redeemable in currenr gold or silver coin at the place where it purports to have been issued; and the burden of proving the existence of such law, and the redemption of the promissory note, bill of exchange, draft, order, or certificate of deposit, as aforesaid, at the place of issue, shall rest upon the person or body paying out, passing, or issuing the same."

Sections 2 and 3 affix fines of not less than five, or more than one hundred dollars, for individual violation of the law, or imprisonment in the county jail not less than one or more than six months. Bodies corporate shall forfeit their rights and priviliges and pay $500 for every violation, to be appropriated to the School Fund of this State.

CANADIAN, STERLING, AND FEDERAL CURRENCY.

The Canadian pound currency is four dollars of United States money; the pound sterling is $4 87. The subjoined tables give the equivalent sums in sterling, currency, and dollars and cents: