Bank of England. It is not merely the Bank of England, but nearly the whole bankingsystem of the country that is indebted for its origin and prosperity to the war. Before the Bank-stoppage, in 1797, there were only two hundred and thirty country bankers. At the time the Bullion-Committee made their Report, in 1810, the country banks had increased more than three-fold, and amounted to SEVEN HUNDRED AND In the year TWENTY-ONE. 1816, the number of banks in different parts of the empire, was as follows: Bank of England. From this statement we see that in London there are no fewer than 72 private banking houses. In each banking-house there are at least three partners, forming an aggregate of 216 individuals, who, for obvious reasons, would not decline signing any thing emanating from Threadneedle Street. But to the private bankers, may be added, the stock-brokers, loan-contractors, and speculators: a numerous race, who likewise owe their origin in great part to the war; intimately connected with the Bank, and ready to obey at all times the Directors. In short, we should suppose that there are at least 2000 individuals in the metropolis; who, from dependence on the Bank, as well as their own supposed interests, would be ready at any time to sign any Declaration to which JOHN WHITMORE might affix his signature. The whole of these classes owe their origin to the Pitt System, or, to ascend a generation higher, to the Borough System: The Borough System begat the Pitt System; the Pitt System begat the war; the war hegat the Restriction Act; the Restriction Act begat the Paper System; the Paper System begat the whole race of bankers, loan-contractors, and speculators; these again begat Pauperism; and lastly, Pauperism must eventually 'beget either Radical Reform or Military Despotism. The country bankers have an interest and an influence of the same nature as the Bank of England. We always find them at Liverpool, Bristol, Glasgow, Leeds, and every part of the empire, ready to support the measures of Government. The wealth they have acquired, and the wealth they hope to acquire, depend on the continuance of the policy of the last twenty-five years. This is a point, however, which it may be proper to illustrate more particularly. Next to an impartial administration of justice, the most important object to the people, is a safe and secure currency. It is a matter of so much moment, that it ought never to be abandoned to the caprice, ignorance, and avarice, of individuals; accordingly we find, that in all countries where knowledge had made any progress, the power of providing a suitable representátive of value was vested in the government. This, for many centuries, was the case in England ; but since every object for which governments were instituted has been abandoned, and justice, religion, and morality, become mere pretexts, for pillage and oppression, this important duty has likewise. been neglected. The time when this change took place, may be dated from the passing of the Restriction Act, in 1797; that measure forced out of circulation what remained of the precious metals, and left the people wholly dependent on paper, issued at the discretion of private individuais. Bank of England. Hence arose a great part of the trade of banking. The bankers owe their origin to the policy which produced the Restriction Act: they will invariably support that policy: they will always oppose Reform, or any change likely to restore a genuine currency: a metallic currency would destroy their occupation: their profits arise from supplying the community with paper; and the extent of these profits will appear from the following considerations. The gains of a banker do not arise from trading with his own capital, but from trading with the credit of individuals. His profits arise from the employment of a fictitious capital, which he can create at pleasure, and which only costs him the salaries of a few clerks, and a trifling expense in paper and engraving. With this he trades as real money; 'discounts bills; makes advances to speculators, merchants, traders, and others; and charges them four, five, or more per eent. for the use of his paper promises. His profits are in proportion to the quantity of paper he can force into circulation. The absence of a metallic currency; the increase in trade, commerce, and agriculture; the funding system, and the spirit of enterprise and speculation, have caused an immense demand for paper money. The total amount of paper in circulation at any period cannot be exactly estimated. The paper issued by the Bank of England is known, but the paper issued by the country banks cannot be ascertained. Mr. Lloyd, a banker in London, a partner in a banking-house at Manchester, and agent for several other country banks, in his evidence before the Bank Committee, supposes the amount of country bank notes in circulation to be from 40 to 50 millions. The Committee, in their Report, consider the estimate too great; and state, as their opinion, that the country paper does not exceed from 20 to 25 millions. The Committee of the House of Lords likewise gave an estimate from the statements of Mr. Sedgwick. Their estimate of the amount of Bank of England and Country Bank paper in circulation, from the year 1810 to the year 1818, is as follows: This statement does not include the unstamped small notes issued by the three Chartered Banks of Scotland, nor the paper circulation of Ireland. Allowing for these omissions, and supposing from the evidence of Mr. Lloyd, that the estimate is considerably below the truth, we may infer, that, for the last ten years, the circulation of paper has amounted on an average to sixty millions. On this sum the banking interest has been deriving a profit of 4, 5, or more, per cent.; or about three millions annually; which is the sum paid by the public, for the convenience of paper money in lieu of a genuine currency, of which they have been deprived by the policy of the Boroughmongers. A Reformed Parliament would destroy in a great measure the system of private banking. A national currency would be issued under the control of the legislature. Private individuals, who offer no security to the public, would no longer be permitted to issue bits of paper as representatives of real property. Fluctuation in the currency would be guarded against, and the value of money rendered secure and uniform, But this is not all: an immense saving would accrue to the community. We have seen the bankers gain three millions annually by the issue of their notes. This sum clearly belongs to the state rather than individuals. If a paper currency be unavoidable, let the public have the benefit of it. There would be no greater difficulty in establishing a national bank than a national mint; and it would be as easy for the legislature to exact 4 or 5 per cent. for the use of its paper, as levy a seignorage on the coin. This would form an important addition to the revenue: three millions is half the amount of the Assessed Taxes, and equal to the produce of the leather and salt tax. This then is one of the advantages which would result from Reform-the insecurities and fluctuations from private banking would be avoided, and the public save about three millions annually. It is some such change as this that Mr. Whitmore and other Declarers, we imagine, apprehend. They are well aware that their calling had its origin, and depends for support, in a Bank of England. corrupt representation. They care nothing about the progress of seditious, blasphemous, and immoral publications. These are mere pretexts, to increase the strength of their party, and alarm the timid and credulous part of the community. They dread a reform in parliament, because they dread a reform in our monetary system. Their importance in society, and the wealth they have amassed, and the wealth they hope to amass, are from a fictitious currency. Their fears, like the fears of other classes, originate in their selfishness. We see nothing more despicable in the conduct of the Bankers than in the conduct of the Whigs, the Bar, the Bench, the Clergy, or any other class arrayed against the people. The opposition of all these classes originates in the same principle--SELFISM. Let our hermaphrodite philosophers and patriots disguise it as they will; let Mackintosh, Brougham, and Jeffray, urge their schemes of human improvement, the whole of their philosophy and virtue amounts to this: they are either in the possession or the expectancy of a monopoly of the advantages of society, and they neither love liberty, humanity, nor justice sufficiently to wish to share them with the great mass of their fellow-creatures. We shall only make one more remark on the general connexion of the Banking system with the government, and then begin our exposition of the Bank of England. The Bankers, both in London and the Country, derive their influence not so much from their numbers as their connexion with the commercial classes. And this again arises not only from the power they possess of refusing pecuniary accommodation to particular individuals, as from a reputation of superior respectability and intelligence. Hence it is that the Bankers in the principal towns, as well as Mr. Whitmore in London, have always sufficient influence to procure signatures to a Declaration-ostensibly in favour of the throne, the altar, social order, and so forth, but in reality nothing more than for the privilege of manufacturing old rags into money. In treating of the Bank of England, there appear to be three objects particularly deserving of our attention. First, a brief outline of the origin and connexion of the Bank with Government. Secondly, the enormous profits it has derived, and the immense wealth it has accumulated from that connexion. Thirdly, its present state and influence. We will treat on each subject as briefly as possible, so as to put the reader in possession of the most important facts necessary to a knowledge of them. The Bank had its origin in war and taxation; and was originally projected by one Paterson, a Scotchman. William III., who introduced standing |