1192. Only to discount brokers? Yes.
1193. Not to strangers who are in the habit of bringing you in bills; commercial houses?—I should say generally not. We have one or two houses for whom we discount who have not accounts with us as bankers, but generally we do not discount except for our customers or for bill-brokers.
1194. Do you consider that any advantage can arise to the public by the Bank of England advancing to a greater extent than can be considered strictly prudent on the soundest principle of banking, under the idea of their affording aid to the commercial world?—As I said before, as long as there are good bills in circulation, that is, bills about which there would be no doubt of their being paid at maturity, there should be some means by which those bills could be discounted.
1195. And do you think that it is part of the functions of the Bank of England to discount a bill for anybody, merely because the party holding the bill wishes to convert it into cash?—As I said before, the Bank of England will have great difficulty in getting rid of that inconvenient idea which there is in the mind of the public, that the Bank of England is something more than an ordinary joint stock bank. I think it must depend very much upon circumstances whether you can or cannot refuse the discount of good bills which are offered to you.
Note C.
Statement of Circulation and Deposits of the Bank of Dundee at
Intervals of Ten Years between 1764 and 1864.
Year Circulation Deposits L L 1764 30,395 — 1774 27,670 — 1784 56,342 — 1794 50,354 — 1804 54,096 157,821 1814 46,627 445,066 1824 29,675 343,948 1834 26,467 563,202 1844 27,504 535,253 1854 40,774 705,222 1864 41,118 684,898
The Bank did not begin to receive deposits until 1792, in which year they amounted to 35,944 L.
Note D.
Meeting of the Proprietors of the Bank of England.