outside that circle. In order that our readers may see on what the legal controversy turns, we quote here the various Acts bearing upon it. By 8th and 9th Will. III., cap. 20 (1697), it was enacted— "That during the continuance of the Corporation of the Governor and Company of the Bank of England, no other bank, or any other corporation, society, fellowship, company, or constitution, in the nature of a bank, shall be erected or established, permitted, suffered, countenanced, or allowed by Act of Parliament within this kingdom." The 7th of Anne, cap. 7, sec. 61 (1708), enacted "That during the continuance of the said corporation of the Governor and Company of the Bank of England, it shall not be lawful for any body politic or corporate whatsoever, erected or to be erected (other than the said Governor and Company of the Bank of England), or for any other persons whatsoever united or to be united in covenants or partnership, exceeding the number of six persons, in that part of Great Britain called England, to borrow, owe, or take up any sum or sums of money on their bills or notes payable at demand, or at any less time than six months from the borrowing thereof." From 1708 til 1826 it was understood and believed that no bank or copartnership with more than six partners could be formed in any part of England, and none formed. In 1826, the Act of Geo. IV., cap. 46, was passed, which, after reciting that was "The Governor and Company of the Bank of England have consented to relinquish so much of their exclusive privilege as prohibits any body politic or corporate, or any number of persons exceeding six, in England, acting in copartnership, from borrowing, owing, or taking up any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof; provided, that such body politic or corporate, or persons united in covenants or partnerships, exceeding the number of six persons in each copartnership, shall have the whole of their banking establishments and carry on their business as bankers at any place or places in England exceeding the distance of 65 miles from London; and that all the individuals composing such cor. porations or copartnerships carrying on such business shall be liable to and responsible for the due payment of all bills and notes issued by such corporations or copartnerships respectively," enacts; 66 (I.) That from and after the passing of this Act it shall and may be lawful for any bodies politic or corporate erected for the purposes of banking, or for any number of persons united in covenants or copartnership, although such persons so united or carrying on business together shall consist of more than six in number, to carry on the trade or business of bankers in England, in like manner as copartnerships of bankers consisting of not more than six persons in number may lawfully do; and for such bodies politic or corporate, or such persons so united as aforesaid, to make and issue their bills or notes at any place or places in England exceeding the distance of 65 miles from London, payable on demand, or otherwise at some place or places specified upon such bills or notes, exceeding the distance of 65 miles from London, and not elsewhere, and to borrow, owe, or take up any sum or sums of money on their bills or notes so made' and issued at provided always that such corporaany such place or places as aforesaid : tions or persons carrying on such trade or business of bankers in copartnership shall not have any house of business or establishment as bankers in London, or at any place or places not exceeding the distance of 65 miles from London." About 1833 new light dawned on the country and the Government. It was discovered that the exclusive privileges of the Bank of England were restricted to the issue of bank-notes, and did not exclude banks of deposit. Such was the opinion of the law officers of the Crown; and to place the matter beyond all doubt, the Act of 1833 (3d and 4th Will. IV., cap. 98) was passed, which confirmed (sec. 2) the right conferred by the Act of 1826 to establish Joint-Stock Banks of Issue outside the 65-mile circle, and by sec. 3 opened London, as has been hitherto understood, to the whole world. The third section is in these terms: "III. And whereas the intention of this Act is, that the Governor and Company of the Bank of England should, during the period stated in this Act (subject nevertheless to such redemption as is described in this Act), continue to hold and enjoy all the exclusive privileges of banking, given by the said recited Act of the thirty-ninth and fortieth years of the reign of his Majesty King George the Third aforesaid, as regulated by the said recited Act of the seventh year of His late Majesty King George the Fourth, or any prior or subsequent Act or Acts of Parliament, but no other or further exclusive privilege of banking: And whereas doubts have arisen as to the construction of the said Acts, and as to the extent of such exclusive privilege, and it is expedient that all such doubts should be removed: Be it therefore declared and enacted that any body politic or corporate, or society, or company, or partnership, although consisting of more than six persons, may carry on the trade or business of banking in London, or within 65 miles thereof, provided that such body politic or corporate, or society, or company, or partnership, do not borrow, owe, or take up in England any sum or sums of money on their bills or notes payable on demand, or at any less time than six months from the borrowing thereof, during the continuance of the privil eges granted by this Act to the said Governor and Company of the Bank of England." We see no reason to change the opinion already expressed as to the legal right of all banks, if not forbidden by their own constitution, to carry on business as banks of deposit in London, or in any part of the United Kingdom. But whatever opinion may be formed on the legal question, probably there will be but one view taken of the public interest; and if the law is in doubt, the sooner it is cleared up the better. What do we then propose as the remedy for the evils complained of in the controversy which has arisen ? We answer, in the first place, that apart from issue, there must in the public interest be the most perfect freedom of banking. No exclusive privileges of the Bank of England can be allowed to stand in the way, and the exclusion of the English bankers from London must come to an end. Then, in the second place, as regards issue, we must adhere to the principle and the policy of the Acts of 1844 and 1845, prohibiting the multiplication of issuers; but we see no expediency in prohibiting the amalgamation of issuing banks in England on the contrary, the public interest points at the provincial issues of England being managed by large and important banks with adequate capital and high credit, rather than by hundreds of small private concerns of whose resources nothing is known. This. would be a great step towards the realisation of that sounder and more solid system of banking in England which Lord Liverpool and Lord Althorp and Sir Robert Peel so strongly desiderated, and of which they held up the Scotch banks as the model. When it is established English bankers will cease to fear competition from any quarter. If the inquiry of the Select Committee should so end, one good result will have been attained. In any case, we shall have a Blue Book of some interest to all who take delight in the literature of currency. INDEX TO VOL. CXVII. ABODE OF SNOW, THE: Hangrang, Spiti, Acton, Lieutenant, at Inkerman, 478. Akun mountains, the, 359. ALBERT, PRINCE, the Life of, reviewed, ALICE LORRAINE: Part X., 44-Part XI., ANDROMACHE PRIAM, 305. THE DAUGHTERS Andromache of Homer, the, 305 Andromaque of Racine, the, 306. OF of Apelles, prices received for his paintings 264, 273. Arnim trial, the disclosures on, Avalanches in the Himalaya, 336. Baflin, the Arctic expedition of, 782. Beach, Sir H. M., his speech on Ireland, Bearing-Reins, uselessness and cruelty of, 742 et seq. Bedouin bearing-rein, the, 743. Belgium, supposed designs of France on, Benedix, his criticism of Shakespeare, 723. Bijbehara, town of, in Kashmir, 607. BITS AND BEARING-REINS, 742. Boughton, Mr., paintings by, 757. Bright, Mr., his speech at Birmingham, British Columbia, formation of colony of, 592. BRITISH WORKMEN, PAST AND PRESENT, Brown, Sir George, at Inkerman, 465. Buller, General, at Inkerman, 466, 467. Burnaby, Captain, at Inkerman, 472. Cæsar, prices paid for paintings by, 494. Canrobert, Marshal, at Inkerman, 461, Capital and Labour, the Struggle between, Casaubon, Isaac, review of his life, 616. Cathcart, Sir George, at Inkerman, 465, 472. Ceylon, polyandry in, 82, 83. Char, village of, in Zanskar, 351. CHINA WAR OF 1860-SIR HOPE GRANT, Christianity, the modern attacks on, 132. Cicero's De Senectute, 736. Clifford, Lieutenant, at Inkerman, 466. Colonial Policy, Lord Lytton's views on, Colossus, cost of the, 499. Conservatism, Lord Lytton's Essay on, Cook, Captain, his Arctic expedition, 778. Crimean war, Lord Lytton's speeches on Cross, Mr., his Bill for Improvement of Dal-o City lake, its scenery, &c., 600. Daubeney, Colonel, at Inkerman, 467. Dickens, the effect of his writings on the Dickson, Colonel Collingwood, at Inker- DILEMMA, THE: Part I., 541-Part II., 688. Disestablishment, the threatened move- Disraeli, Mr., on the Judicature Act, 529. Education, Lord Lytton's views on, 286 Egerton, Colonel, at Inkerman, 467. Euripides, the Andromache of, 306 et seq. Europe, disturbed political state of, 261 Fitzmayer, Colonel, at Inkerman, 461. FLOWER, E. F., BITS AND BEARING- Foreign Policy, Lord Lytton's views on, Forster, Mr., his conduct as regards the FRANCE AND GERMANY, 765. conduct during the war in China, 644. 404. Frith, Mr., his paintings in the Exhibi- Frobisher, the Arctic expedition of, 778. Gardiner, Colonel, a soldier of fortune in German criticisms and translations of Germany, present political state of, 261- GIANNETTO: Part I., 1-Part II., 145. Gleig, G. R., the Great Problem by, 132. Goldie, General, at Inkerman, 475. Greece, fashion in, 489-prices paid for Hamley, Colonel, at Inkerman, 470. Harcourt, Sir W., on the present aspect of Hartington, Lord, as leader of the Libe- Hayward, Mr., murder of, 519. Head, Sir F., on Bearing-Reins, 742. Henry IV., patronage of Casaubon by, Herbert, Colonel, at Inkerman, 461. Historical Paintings, modern English, Horses of Kashmir, the, 610-Bearing- INKERMAN, MR. KINGLAKE'S BATTLE OF, Iphigenia of Euripides, the, 319. Ireland, Lord Russell on, 531-policy of Islamabad, town of, in Kashmir, 609. James I., patronage of Casaubon by, 620. 69. Jonson, Ben, and Shakespeare, 717. Judicature Act, the, its withdrawal, 529. KASHMIR, 508-the vale of, its scenery, Kenealy, Dr., the election of, 525-his re- Kharjak, village of, 348. KINGLAKE, MR., HIS BATTLE OF INKER- Labour and Capital, the struggle be- Lahaul in the Himalaya, 336. Legislation, necessity of, against strikes, Leighton, Works of, in the present ex- of 1858, 295-that of 1860, 297-and Macdonald, George, Malcolm' by, 634. Macready's Reminiscences,' review of, 'Malcolm,' review of, 634. Mani or stone tumuli in the Himalaya, Marks, Mr., paintings by, 760. Marlowe, his influence on Shakespeare, Mártand, ruins of the teinple of, in Kash- MARTIN, THEODORE, HIS LIFE OF THE Michael Angelo, the price paid him for Michel, General, during the war in China, Millais, 'the works of, in the exhibition, Miracles, the objections to, 135. 494. Montauban, General de, during the war Moravian mission at Kaelang, the, 336. Napoleon III., Lord Lytton's estimate National Assembly, meeting, &c., of, in NATIONAL DEBT, THE, AND THE BUDGET, National defences, Lord Lytton's speech Nero, the Emperor, prices paid for works NEW BOOKS: Pattison's 'Life of Isaac Nicias, prices paid him for his paintings, Nishat Bagh, or Garden of Pleasure, in Northcote, Sir Stafford, his Bill regarding |