Bank of England

“ The Bank of England, which has been called the bank of the world,—the railways, which bear comfort and civilization to the remotest hamlets,—the canals, which convey our commerce and irrigate our lands,—our docks, which contain the wealth of the East and of the West,—our life-assurance companies, which comfort many a desolate hearth and home,—are the result of joint-stock companies. The evil is passing ”

“ In most banks there would be a wholesome dread restraining the desire of the shareholders to reduce the reserve; they would fear to impair the credit of the bank. But fortunately or unfortunately, no one has any fear about the Bank of England. The English world at least believes that it will not, almost that it cannot, fail. ”

“ To add to the delusion, the Bank of England was advertised as their bankers; and when they opened handsome premises in London, Dublin, Edinburgh, and Glasgow, the minds of the many were thoroughly deluded. Some notion may be formed of their intention from the fact, that they not only insured lives on smaller premiums than other offices, but gave larger annuities for smaller sums. According to their tables, a man of thirty, by paying £100, could obtain £8 yearly, and could insure his life at £1 15s. per cent.; thus making a clear interest of £6 5s. per annum. ”

“ And it is by that opinion that we wish the Bank of England to be guided. Under a natural system of banking we should have relied on self-interest, but the State prevented that; we now rely on opinion instead; the public approval is a reward, its disapproval a severe penalty, on the Bank directors ”

“ William had already tried his power in the creation of a national debt: jobbing in the English funds and East India Stock succeeded; and the Royal Exchange became—what the Stock Exchange has been since 1700—the rendezvous of those who, having money, hoped to increase it, and of that yet more numerous and pretending class, who, having none themselves, try to gain it from those who have.
The charter granted by William to the Corporation of the Bank of England is the first instance of a debt bequeathed to posterity. Annuities had hitherto been the mode of raising supplies ”

“ As the Bank of England is the channel through which, directly or indirectly, payments are made and moneys received, by other banks, it is more convenient for them to have their reserve lying as a deposit in it than lying as gold within their own vaults. ”

“ By compelling the Bank of England, and all other banks, to hold constantly in their coffers a vast amount of treasure, which must be issued at a fixed price, it leaves them no resource for defraying its charges but pushing business, and getting out their notes to the uttermost. ”

“ Craig, “as the Bank may choose. It can proportion its issues to country bankers as it likes. But, in case of the adoption of this plan, it will be necessary that branch banks should be established by the Bank of England in all populous districts, so that the people may have every facility for converting their notes. ”

“ For if the Bank of England, which has advanced eleven millions of its capital to the nation, for fiscal purposes, is liable to have the right of issue withdrawn upon the single condition of repayment of the debt, with all arrears of interest, how much more is it incumbent upon those banks which have rendered no such service to the State, to hold themselves prepared for a similar surrender. ”

“ Should the Bank be thus made answerable for the issues of the country banks?”
“Nay; the hardship is under the present system; for, according to it, the Bank of England is made answerable, without having any of that power of control which it would have under the other system. We know that country bankers do not keep much coin in their coffers. ”

“ If it is known that the Bank of England is freely advancing on what in ordinary times is reckoned a good security—on what is then commonly pledged and easily convertible—the alarm of the solvent merchants and bankers will be stayed. ”

“ In countries where trade is established, industry flourishing, credit extensive, circulation copious and rapid, as in England, banks upon mortgage, however useful they may prove for other purposes, would not answer the demands of the trade of London, and the service of government, so well as the bank of England. ”