employment in agriculture, manufacture, and
commerce. Whenever any banker, therefore,
is excluded from the clearing-house, and is
consequently obliged to keep a larger amount
of cash in his coffers, his available capital is
so far reduced, and thus the agriculture,
manufactures, and commerce of the country
receive less encouragement.

Country private banks cannot have more
than six partners, differing in this respect
from joint-stock banks, which may have as
many as a thousand partners. Country
private banks are banks of deposit, of loan,
and of discount. As banks of deposit, they
usually allow interest on both deposits and
balances of current accounts, and charge a
commission on the amount of the transactions.
In commercial or manufacturing
districts their advances are usually made by
way of discount; in agricultural districts,
frequently by loans. They remit money by
issuing bills or letters of credit on London
or they direct their agents to make payments
to bankers or other parties resident in London.
As banks of circulation, they have at
various times occupied a large portion of
public attention, and have been the subject of
much legislation. Those bankers who issue
notes must take out a licence, which costs
thirty pounds, and must be renewed every
year. They may re-issue any notes not
above the value of one hundred pounds as
often as they think proper. And should any
of the firm die or remove from business, the
notes may be issued by the remaining
partners. But they cannot be re-issued by a
new firm which does not include any member
belonging to the firm by whom the
notes were first issued. If the half of a
note be lost or stolen, a banker cannot be
compelled to give a new note in exchange for
the remaining half; but if it can be proved
that one half of a note is burnt, or otherwise
destroyed, then the holder may perhaps
recover the note from the banker. In such
cases, the bankers always pay the value of the
note on receiving a respectable indemnity.
Bankers may be compelled to pay whole
notes that have been lost or stolen, provided
the holder has given actual value for them.

The Bank of England originated in a loan
of one million two hundred thousand pounds,
granted to the state by a company, chartered
in sixteen hundred and ninety-four, as the
Governor and Company of the Bank of
Engand. This charter has been repeatedly
renewed. From that transaction to the
present day, the government has ever been in
the undignified position of a borrower from a
private company. The legislature is put in
the anomalous position of making laws for,
and requiring obedience from, its own
creditor its master, in short, or at least the
body to whom it is under obligations. Of
course, under no circumstances whatever can
the Bank Charter be altogether withdrawn,
until the debt, now amounting to more than
eleven million pounds, is repaid. For these
eleven millions, besides other securities,
making altogether fourteen millions, the
Bank is authorised to issue notes without
any corresponding amount of gold. The very
fact that this debt is not paid, is a proof that
paper money is necessary .for the expansion
of our circulation, and that gold and silver
coin alone are insufficient as a circulating
medium. The last renewal of the Bank
Charter was in eighteen hundred and forty-
four, to continue until the expiration of
twelve months' notice, to be given after the
first day of August, 'fifty-five. The notice
has not been given yet.

The Bank of England is governed by a
court of directors, consisting of twenty-four
members. These are selected from the
mercantile classes of London, virtually by the
other directors, who form what is called a
House List. They recommend certain persons
to be chosen as directors; and the proprietors
always follow this recommendation. The
court hold their meetings every Thursday,
and they then receive a report of the
transactions of the preceding week. The executive
administration, in the meantime, is in the
hands of the governor and deputy-governor,
who may be advised or assisted by the
committee of treasury. This committee is
composed of those directors who have held the
office of governor, of the existing governor
and deputy-governor, and of the director who
is intended to be the next deputy-governor.
A director is at first an ordinary director,
and attends the weekly meetings of the
court. In turn he becomes, for one year, a
member of the committee of treasury. This
committee meet once a-week, and at such
other times as they may be called together
specially by the governor.

The Bank of England is a bank of issue, to
the extent of fourteen millions against that
amount of security set apart for that purpose.
She can issue to any further amount against
lodgments of gold and silver, as regulated by
the Act of 'forty-four. She is likewise a
bank of deposit, of loan, and of discount. She
allows no interest on any portion of her
deposits, nor permits any accounts to be
overdrawn. The Bank of England is also
the banker of the government. The original
loan of twelve hundred thousand pounds was
money wisely and cleverly laid out. She
has always a large amount of public deposits,
on which she allows no interest. She receives
the public revenue, and pays the dividends
on the national debt. The Bank of England
consented to establish branches in the year
eighteen hundred and twenty-six, at the
suggestion of Lord Liverpool, in order to
extend to the provinces the advantages of a
secure circulation. This was considered the
grand desideratum at that time, in
consequence of the numerous failures that had
recently taken place among the country
bankers.