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 till 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 was formed. In 1826, the Act of Geo. IV., cap. 46, was passed, which, after reciting that "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 (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 may lawfully do; and for such bodies not more than six persons in number politic or corporate, or such persons issue their bills or notes at any place so united as aforesaid, to make and distance of 65 miles from London, payor places in England exceeding the able on demand, or otherwise at some place or places specified upon such of 65 miles from London, and not elsebills or notes, exceeding the distance where, and to borrow, owe, or take up any sum or sums of money on their bills or notes so made and issued at any such place or places as aforesaid : provided always that such corporations 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, the distance of 65 miles from London." or at any place or places not exceeding 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 privileges 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 in England: on the contrary, the the amalgamation of issuing banks 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., - THE DAUGHTERS OF Andromaque of Racine, the, 306. Arnim trial, the disclosures on, 264, 273. Art, works of, prices paid among the Avalanches in the Himalaya, 336. Baffin, the Arctic expedition of, 782. Beach, Sir M. H., his speech on Ireland, Benedix, his criticism of Shakespeare, 723. Church, 262-position of Germany un- BITS AND BEARING-Reins, 742. Boughton, Mr, paintings by, 757. 404. British Columbia, formation of colony of, BRITISH WORKMEN, PAST AND PREsent, Brown, Sir George, at Inkerman, 465. Buller, General, at Inkerman, 466, 467. Burnaby, Captain, at Inkerman, 472. Capital and Labour, the Struggle between, Casaubon, Isaac, review of his life, 616. Cathcart, Sir George, a Inkerman, 465, 472. Ceylon, polyandry in, 82, 83. Char, village of, in Zanskar, 351. Christianity, the modern attacks on, 132. Cicero's De Senectute, 736. Colonial Policy, Lord Lytton's views on, Colossus, cost of the, 499. 291. 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., Disestablishment, the threatened move- Disraeli, Mr, on the Judicature Act, 529. Education, Lord Lytton's views on, 286 et seq.-present mania for, 437-Minis- -his Kashmiri vocabulary, 605. Euripides, the Andromache of, 306 et seq. Europe, disturbed political state of, 261 Fitzmayer, Colonel, at Inkernian, 461. FLOWER, E. F., BITS AND BEARING- Foreign Policy, Lord Lytton's views on, 591. Forster, Mr, his conduct as regards the FRANCE AND GERMANY, 765. Franco-German war, statement of Bis- French, the, at Inkerman, 473-their 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. -his critique on the Laocoon, 724—his Goldie, General, at Inkerman, 475. GOSCHEN, MR, HIS BANKING BILL, 791. GRANT, SIR HOPE, his Journal of the China War of 1860, 638-his Journal Grant, Major Thornton, at Inkerman, Granville, Lord, and the leadership, 397. Greece, fashion in, 489-prices 'paid for Hamley, Colonel, at Inkerman, 470. Harcourt, Sir W., on the present aspect Hartington, Lord, as leader of the Libe- Hayward, Mr, murder of, 519. 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. Jonson, Ben, and Shakespeare, 717. Kenealy, Dr, the election of, 526-his re- Kharjak, village of, 348. Kharjak Chu river, the, 351. KINGLAKE, MR, HIS BATTLE OF INKER- Labour and Capital, the struggle be- Lahaul in the Himálaya, 336. Laocoon, Goethe's critique on the, 724. 685. Leighton, Works of, in the present ex- Leslie, Mr, "School Revisited," by, 757. Liberals, the, their disorganised state, Liverpool, mortality in, 400. Local taxation, views of Government re- Loisar, village of, in the Himalaya, 222. Long, Mr, "Babylonian Marriage-mar- Lotus, the, as an article of diet in Kash- Lucan, Marlowe's translation of, 721. Macdonald, George, Malcolm' by, 634. 'Macready's Reminiscences,' review of, 625. 'Malcolm,' review of, 634. Mani or stone tumuli in the Himalaya, Marks, Mr, paintings by, 760. Mártand, ruins of the temple of, in Kash- MARTIN, THEODORE, HIS LIFE OF THE 66 Michael Angelo, the price paid him for Michel, General, during the war in China, 650. Millais, the works of, in the exhibition, 751-his "Huguenots," 753. 526-his rejection by the House, 528. 494. |