securities to the amount of L14,000,000, at three
per cent., which would yield L420,000. From this there are deductions to
be made. The total cost of the Bank on an issue of L20,000,000, has been
estimated at L117,000; but take it at about L113,000, which, taken from
L420,000, leaves L307,000. There is then to be deducted about L60,000
composition with the Stamp-Office for the privilege of issuing notes.
Then there is about L24,000 paid by the Bank to those bankers who
undertake to issue Bank of England notes: taking-one per cent, on a
payment of three per cent. The result, after subtracting these items, is
L220,000 derived from the issuing of notes. Hitherto the Bank has paid
L120,000 to government for its privileges: its privileges are now to be
affected; but on the other hand increased stability is to be given to
its banking business; and I propose that in future the Bank should
still pay that sum, besides the L60,000 for the composition with the
Stamp-Office, making in all about L180,000. Government pay to the Bank
L240,000 for the management of the public debt; and the difference
between the two last sums would be the balance that government would
have to pay over to the Bank." After stating that the present measure
would not be extended to Ireland and Scotland, Sir Robert Peel
concluded with moving a string of resolutions which embodied the above
propositions. His scheme met with general approbation; and on the 20th
of May, the house having gone into committee on the resolutions, Sir
Robert Peel made some further explanations upon points in the detail
of the measure. He would suppose, he said, that the circulation in
the country was L8,000,000; that the country banks would desire, by
agreement with the Bank of England, to reduce this by one-half; and that
it might become necessary for that establishment to make fresh issues in
order to supply the vacuum. The cases then in which he would allow the
Bank to do so, would be those of a country bank failing, or closing,
or commuting its own circulation for that of the Bank of England.
With respect to the question, whether the bullion on which the Bank of
England was to issue its notes should include silver, he proposed that
it should; but without departing from the great principle that there
must be but one standard, and that standard a gold one; all he meant
was, that if a party brought silver to the Bank, the Bank might, within
a certain limit, give its notes in exchan