Sir Robert Peel's measures, which are now
those in force, had in view the object to
put the entire circulation of the United
Kingdom under the control of the legislature,
in a great degree through the supremacy of
the Bank of England. The promoters of
those views hoped to establish the monetary
institutions of the country on a safe and firm
foundation, capable of counteracting all future
danger of mercantile panics. Now, there are
two main points which the Act of 'forty-four
regulates: First, the terms on which the Bank
of England shall be allowed to carry on
business, that is, what it shall contribute to
the expense of managing the National Debt;
in short, how much a-year the Bank shall
pay for its licence to trade in money and
notes. Secondly, the Act lays down the law
respecting the entire amount of notes to be
issued throughout the land, and by whom.
Its tendency is to confine the issue of notes
to the Bank of England ultimately, all the
while that it respects existing rights. To
that conclusion must come we at last. No
person other than a banker, who, on the
sixth day of May, one thousand eight
hundred and forty-four, was lawfully issuing his
own bank-notes, shall make or issue bank-
notes in any part of the United Kingdom.
Thus, no new bank of issue can start up and
open shop. But established banks must die
out and become extinct, if they happen to
fall into decrepitude. It is enacted, That if
any banker, in any part of the United Kingdom,
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. Where two or more
banks became united, the paper circulation
of one of them would be forfeited. Thus,
bankers once ceasing to issue notes, may not
resume their vocation should they change
their minds, and repent them of the step
taken. They cannot, like other retired
tradesmen, return to business should their
leisure weary them. A banker who dies
professionally, is considered to be professionally
childless; he leaves no heir behind him.
And yet he does not depart exactly intestate;
the Bank of England becomes the sole legatee
to his paper property, though not quite to
the whole of it. If any banker, who, on the
sixth day of May, one thousand eight hundred
and forty-four, was issuing his own
be lawful for her Majesty in Council, at any
time after the cessation of such issue, upon
the application of the said Governor and
Company, to authorise and empower that
body to increase the amount of securities in
the issue department beyond the total sum
of fourteen million pounds, and thereupon to
issue additional Bank of Kngland notes to an
amount not exceeding such increased amount
of securities specified in such order in Council:
provided always that such increased amount
of securities shall in no case exceed the
proportion of two-thirds of the amount of bank-
notes which the banker so ceasing to issue
may have been authorised to issue.

But private banks, even with an indefinite
term of existence, still are mortal, although we
may not yet be looking out for the apotheosis
of Messrs. Coutts and Co.; but the Bank of
England is immortal; and assimilates into
its own substance two-thirds of the blood
which flows no longer in the veins of departed
banks. Moreover, existing and continuing
banks may issue for the future no more than
they were issuing at the time when the Act
was passed; they must render to the
Commissioners of Stamps and Taxes a weekly
account of their paper circulation, giving the
amount for every day during the week. The
Commissioners may cause the bankers' books
to be inspected, if requisite, to verify the
return, with a penalty of a hundred pounds
in case of refusal. And, bankers entitled to
issue notes, but who consent to issue Bank of
England notes instead of their own, are
rewarded by a composition of one per cent,
on the amount of such notes kept in circulation
this arrangement ceases and determines
on the first of August next.

The existing and the approaching
opportunities for change, cause the putting of the
pertinent question— Upon what principle
shall we stereotype the banking institutions
of this country, when all around us denotes
constant progress? The Bank Charter Acts,
as has already been stated, have established a.
limit in the circulation of bank-notes, beyond
which it could never exceed, and their
irresistible bias is to limit it still more. But the
circulation of 'forty-four was only proportioned
to existing wants, whilst, since that
period, a considerable augmentation has taken
place in the resources and commerce of the
country. From tables of imports relative to
some few leading branches of trade, it may
be demonstrated that Liverpool, Glasgow,
Belfast, Manchester, Leeds, and many other
places, have trebled in commercial importance.
Nevertheless, no corresponding
increase is observable in their banking
companies an incongruity which cannot fail to
be productive of considerable injury to
traders. Consequently, there seems to be an
altuortt general concurrence as to the expediency of enlarging the amount beyond the
fourteen millions now issued by the Bank.