e bank. This was in the re-issue of
exchequer bills that had been previously redeemed, but which were not
cancelled. This fraud amounted to about 2-1/2 per cent. of the capital,
and although it did not prevent a dividend, it prevented the
distribution of a bonus which would otherwise have been paid to the
shareholders.

In the year 1822 another fraud on the bank came to light. This was
perpetrated by a bookkeeper, and amounted to L10,000. In 1824 the fraud
of Mr. Fauntleroy on the bank was discovered, amounting to L360,000.
This was done by forged powers of attorney for the transfer of
Government consols.

The bank was brought near suspension again in 1825 by the imprudent
expansion of its notes. After the resumption of specie payments in
1820-'21, the true policy of the bank would have been to maintain an
even tenor of its way; instead of which it increased its circulation
twenty-five per cent. in the year 1825 (or from L18,292,000 to
L25,709,000), while the issues of the country banks were equally
enlarged, giving encouragement to violent speculation among the people.
The specie reserve of the Bank of England fell from L14,200,000 in
January 1824 to L1,024,000 in December, 1825. This difficulty of the
bank was relieved by the issue of a few thousand bills of L1 and L2.

Speculation had been rife in 1824; no less than 624 companies were
started with a nominal capital of L372,000,000, including mining, gas,
insurance, railroad, steam, building, trading, provision, and other
companies. At the same time foreign loans were contracted in England to
the extent of L32,000,000, of which over three fourths were advanced in
cash.

The country banks of England had increased their circulation from
L9,920,000 in 1823 to L14,980,000 in 1825, or over fifty per cent., thus
stimulating prices, and promoting speculation widely throughout the
country.

Immediately following the revulsion at the close of the year 1825, Mr.
Huskisson's free trade policy was advocated in the House of Commons by a
vote of 223 to 40. In the same year lotteries were suppressed in
England. In 1828 branches of the Bank of England were established--a
measure, of course, unpopular among the provincial joint stock banks.

In the year 1832-'3 were brought forward three important measures in
Parliament. One was the abolishment of the death penalty for forgery;
another was the modification of the usury laws; the third was the
re-charter of the bank.

The las