BANK OF ENGLAND CHARTER RENEWED.
On the 31st of May Lord Althorp brought the subject of the renewal of the Bank of England charter before the commons. In doing so he stated at great length the terms on which government had determined to consent to a renewal of that charter; after which he laid the following-resolutions on the table of the house, that they might be considered:—“That it is the opinion of the committee, that it is expedient to continue to the Bank of England, for a limited period, the enjoyment of certain privileges now vested in law in that corporation, subject to provisions to be hereafter made: That provided the Bank of England continued liable, as at present, to defray, in the current coin of the realm, all its existing engagements, it was expedient that its promissory note should be constituted a legal tender for sums of £5 and upward: That one-fourth part of the debt at present due by the public to the Bank be repaid during the present session of parliament: That the allowances to the Bank on the management of the national debt, and other public business be continued, subject to an annual deduction of £120,000 from the remuneration at present assigned for that purpose: That the laws restricting the interest of money to five per cent, be repealed, so far as concerned bills not having more than three months to run before they become due: That it is expedient that royal charters be granted for the establishment of joint-stock banks, within a certain distance from London: That all banks should enter into a composition, in lieu of stamp-duties, at present chargeable at the rate of seven shillings for every one hundred pounds issued in notes: That it is expedient that a bill should be introduced into parliament to regulate country banks, the provisions of which should be such as to encourage joint-stock banking companies in the country to issue the notes of the Bank of England.” These resolutions were moved on the 1st of June, and the first of them was met by an amendment to the effect of delaying the consideration of the measure till the ensuing session. The opposition proceeded principally from members hostile to the renewal of the privileges of the Bank; and to that hostility they now added objections to particular parts of the proposed plan. They demanded delay in order that there might be more full inquiry, and they contended that such inquiry would make it manifest, that the exclusive privileges of the Bank ought not to be renewed. The amendment, however, was lost by three hundred and sixteen to eighty-three, and the first resolution, affirming the propriety of continuing the privileges of the Bank was agreed to without a division. The second resolution, making the notes of the Bank of England a legal tender for sums of £5 and upwards was opposed still more energetically, as being both unnecessary and mischievous; but it was carried by a majority of fifty-eight. Lord Althorp, however, agreed so far to modify the proposal as to make it incumbent to pay all £5 notes in gold, if demanded. To the resolution which provided for the continuance of remuneration, a counter resolution was moved, to the effect that it was, in the opinion of the committee, expedient that the remuneration now insured by law to the Bank of England for the management of the public debt and other public business should cease; but this was also lost by a large majority. The sixth and eighth resolutions, which went to regulate the establishment of joint-stock banking companies were abandoned for the present, Lord Althorp conceiving that the opposition was so strong that he should not be able to carry them, at least during this session. A bill founded on these resolutions was brought in and read the first and second time without a division. On the motion for going into the committee, Mr. Gisborne moved as an amendment that the committee should be taken that day six months; but this was lost by a majority of one hundred and nineteen against forty. In the committee multifarious amendments were proposed, but without success. One alteration, however, was made by ministers themselves. They had believed that the existing law prohibited deposit-banks, no less than banks of issue, consisting of more than six partners, from being established in the metropolis, or within a short distance of it; but the solicitor-general had now satisfied himself that, as the law stood, no such restriction existed, and a clause was introduced declaring such to be, and to have been the law, although there were legal opinions the other way, and although the Bank, and all mercantile men, had acted on the belief that the restriction did exist. As the bill passed the commons, its chief provisions were, a monthly publication of the Bank accounts; the repayment of a portion of its capital; a partial repeal of the usury laws which impeded its action; an annual payment of £120,000 in return for privileges conceded; its notes made a legal tender except at the Bank itself, or its branches; a quarterly return of the amount of circulation of all other banks; and certain regulations for the improvement of joint-stock banks. The bill passed the upper house without alterations: an amendment moved by Lord Whynford to leave out the declaratory clause regarding deposit-banks, as being contrary to law, mercantile understanding, and good faith, having been rejected. Government, also, refused to allow the opinion of the judges to be taken regarding the legality of such companies under the existing law.