before the committee.

The improvements proposed by several witnesses with respect to the banking system are next drawn out from the mass of questions and answers, and I have presumed to conclude the first part of this work with such observations as occurred to me upon a careful and impartial consideration of the whole subject.*

References having been made, in many passages of the evidence, to the present state of the law upon several points connected with banking, I deemed it convenient to add, in a second part, a summary of all the more important statutes which relate either to the Bank of England, to private banks of issue, or Joint-stock Banking Companies.

In the appendix will be found an account of the principal foreign banks, and of those of Ireland and Scotland; and also a series of useful tables compiled, at my request, by Mr. HEPPEL, one of the most accurate accountants in the city of London. I wish I were at liberty to mention the names of two other gentlemen, of great commercial experience and high character, who have done me the favour to revise this volume in its progress through the press. If upon the subject of which it treats it have any pretension to authority, I owe it entirely to their suggestions, and to the kind vigilance with which they have preserved me from falling into material M. J. Q. 10, Gray's Inn Place, Jan. 28, 1833.

errors.

Attwood, Thomas, Esq. banker at Birmingham.
Beckett, William, Esq. banker at Leeds.
Burgess, Henry, Esq. secretary to the committee of
country bankers.

Burt, James, Esq. one of the directors of the Joint-
stock Bank at Manchester.
Dyer, Joseph Chesborough, Esq. one of the directors
of the same establishment.

don.

Easthope, John, Esq. stock-broker in the city of Lon-
Forster, Charles Smith, Esq. banker at Walsall.
Glyn, George Carr, Esq. banker in London.
Grote, George, Esq. banker in London.
Gurney, Samuel, Esq. bill-broker in London.
Harman, Jeremiah, Esq. director of the Bank of Eng-
Loyd, Samuel Jones, Esq. banker in London and in
land for many years previous to 1827.

Manchester.

CHAPTER II.-Supreme management of the bank by the court of directors-Connection betweenthe bank and government-Practical management-The proprietors-Opinions of the London bankers and others as to the general management of the bank. CHAPTER III.-Origin of branch banks-Their supposed advantages-Places where established-General principles of management-Facilities afforded by them to country bankers, to trade, and to the crown for transmission of revenue-Expenses of the branches, and their losses by bad debts. CHAPTER IV.-Capital of the Bank of England-Dividends-Its liabilities and assets-Annual expenses and net profits.

CHAPTER V. The par of Exchange-Par between England and France-Signs of unfavourable and favourable exchanges-Effects upon the exchanges of foreign loans of the general state of trade, and of the operations of individuals, single or combined. CHAPTER VI.-Nature and amount of English currency-Its advantages-Fluctuations to which every species of currency is liable-Effect upon it of foreign exchanges-Peculiar fluctuations to which the currency of England is exposed. CHAPTER VII.-Issues of the bank during the restriction of cash payments-Consequences of those issues --Interference of the bank with the currency previously to the restriction-Influence of enlarged and

Contracted circulation of bank paper upon the gene-
ral interests of the country.
CHAPTER VIII.-Supposed prosperity of the country at
the commencement of the year 1825-Remote causes
of the panic-Failure of the house of Pole & Co.-
Conduct of the bank-Proposed restriction of cash
payments-Serious difficulties of the period--Dis.
credit of the country bankers-Fortunate effect of
an issue by the bank of one-pound notes-Salutary
consequences of the panic.

CHAPTER IX.-Principles upon which the circulation
of the bank is ordinarily administered-Cases of
exception-Criterion of a sound currency--Cause
of its derangement-Measures for equalising it-
System of the bank with reference to securities and
bullion.

CHAPTER X.--Objections to the regulation of the bank
issues by the foreign exchanges-Necessity of pro-
viding for their capability of paying gold-Private
sale of exchequer bills--Objections to the manage-
ment of the bank in 1825--Statement of the go-
vernor as to the general conduct of the bank.
CHAPTER XI.-London bankers--Nature of their busi-
ness--Facilities afforded by them to trade--Number
of country bankers--Mr. Beckett's bank at Leeds--
Mode in which its business is conducted--Effect
upon it of the suppression of the one-pound notes--
Management of its circulation.
CHAPTER XII.--Mr. Smith Forster's bank at Walsall
--His mode of conducting business--His statement
of the effect of the political alarm in May 1832,
upon Bank of England paper at Walsall--His
opinion of the influence of the branch banks, with
reference to the private banks and the general trade
of that district--His argument in favour of country
bankers continuing to issue their own notes..
CHAPTER XIII.--Mr. Parry Wilkins's banks in South
Wales--His method of conducting business--Circu-
lation of his banks--Mode in which country banks
in general regulate their circulation--Consequences
thereof Influence of the branch bank of England in
South Wales.

CHAPTER XIV.-System of paper circulation in Lan-
cashire--Consequences of that system with refer.
ence to trade-Method of private banking at Man-
chester--Influence of the branch bank in that

district.

CHAPTER XV.--Effect of the Bank of England circu-
lation at Birmingham upon the banking trade there
--General state of trade in that district--Mr. Att
wood's opinion as to the cause of its depression--
His views with reference to the currency of the
country.

CHAPTER XVI.-Circulation of the country banks--
Mr. Burgess's opinion as to their utility-His answer
to the charge of their having issued to excess in
1825-Ordinary amount of their "rest"-Their
views with reference to one-pound notes.
CHAPTER XVII.-Joint-stock_Banks established in the
country-Mr. Stuckey's Joint-stock bank and its
branches in the counties of Gloucester and Somerset
-Management of their circulation-Importance to
country banks of the power to issue their own notes
-Influence of the branches of the Bank of Eng.
land in that district-Joint-stock Bank at Man-
chester.

CHAPTER XVIII.-Improvements suggested-Opinions
of Mr. Horsley Palmer with reference to the pro-
jects of making the Bank of England paper a legal
tender in the interior of the country-Of confining
the paper currency of the kingdom to notes of the
Bank of England-Of having only one issuing
company, and that directed exclusively by commer-

cial individuals-Of obtaining security for the con-
duct of the bank-Of publicity of accounts-And
of giving a legal control over the bank to his ma-
jesty's ministers.

CHAPTER XIX.-Opinions of Mr. Stuckey with refer-
ence to the preceding proposed alterations-Im-
provements as to country banks suggested by Mr.
Stuckey, Mr. Forster, and Mr. Wilkins.

CHAPTER XX.-Opinions of Mr. Norman as to the pro-
priety of making the notes of the bank a legal ten-
der in the country-As to the limitation of issues to
one bank in London-The publicity of the affairs of
the bank, and the expediency of security being given
for country bank issues.

CHAPTER XXI.--Opinions of Mr. Carr Glyn with rc-
ference to the expediency of making the Bank of
England paper a legal tender in the country-Of
having only one bank of issue in London--Of pub-
licity of the bank accounts--Of exacting security for
their issues from country bankers--And of altering
the time for the payment of dividends on a cer.
tain portion of the public stocks.

CHAPTER XXII.--Opinions of Mr. Loyd with reference
to the proposed limitations of the paper currency of
the kingdom to notes of the Bank of England--The
expediency of having only one bank of issue in Lon-
don-Of obtaining security for the conduct of the
bank-Of publicity of accounts--And of repealing
the usury laws.

CHAPTER XXIII.-Opinions of Mr. Gurney with re-
ference to the projects of making the Bank of Eng-
land paper a legal tender in the country-Of having
only one bank of issue in the metropolis-Of ob-
taining security for the conduct of the bank, and of
publicity of its accounts-His objections to the es-
tablishment of Joint-stock Banks, and branches of
the Bank of England.

CHAPTER XXIV.-Opinions of Mr. Tooke with refer-
ence to the projects of making the Bank of England
paper a legal tender in the country-Of having only
one bank of issue in the metropolis-Of obtaining
security for the conduct of the bank, and of pub.
licity of accounts-His views with respect to Joint-
stock Banks, Branch Banks, One-pound Notes,
the payment of the dividends, and a state paper cur-
rency.

CHAPTER XXV.-Opinions of Mr. Grote with reference
to the projects of making the Bank of England paper
a legal tender in the country, of having only one
bank of issue in London, and of publicity of ac-
counts-His views with respect to one-pound notes,
and a state paper currency.

CHAPTER XXVI.-Opinions of Messrs. Dyer, Burt, and
Smith, with reference to the exclusive privileges of
the Bank of England, and the project of making its
paper a legal tender in the country-Their views
with respect to improvements in the system of Joint-
stock Banking Companies.

CHAPTER XXVII.-Opinions of Mr. Burgess with re-
ference to the projects of making the Bank of Eng.
land a legal tender-Of confining the paper currency
of the kingdom to notes of that establishment-And
of publicity of accounts-His views with respect to
a demand of security from country bankers-His
objections to Branch Banks and to Joint-stock Bank-
ing Companies.

CHAPTER XXVIII.-Opinions of Mr. Easthope with
reference to the existence of one bank of issue in
London, and to publicity of accounts.

CHAPTER XXIX.-Observations on the improvements
suggested with reference to the trade of banking in
England.