Capital, Currency, and Banking Being a Collection of a Series of Articles Published in the Economist in 1845, on the Principles of the Bank Act of 1844, and in 1847, on the Recent Monetarial and Commercial Crisis (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1859 Excerpt: ...equal to the notes which it circulates over and above that sum, and which shall not be applicable to any other liability of the Bank. To effect this object, 14,000,000/ of securities are placed in the issue department, and all the bullion of the Biink, over and above a sufficient supply ot coin for the banking department, for the lull amount, notes are given to the banking department; from which the circulation of the country is supplied, and a reserve kept to provide for the deposits as they may be required. This reserve ot notes is the only command which the banking department has over the bullion, which, were they entirely converted into gold, it is plain that a sum would still be left in the issue deparlmunt, equal to the whole ol the notes in circulation, over and above the 14,000,000/ of securities. The old and new plans are substantially the same, as regards the entire liabilities of the Bank; but by the new bill the reserve of bullion is practically separated and apportioned to the circulation and the deposits. The following statement, made from the last returns, will show exactly what the difference is, and by which it will be seen to be mefely a matter of form. Under the old law the accounts of the bank would have stood thus: -- Circulation of notes 20,242,785 Deposits 13,0i5,731 Total liabilities to the public 33.258.SI6 Against which would have been held a reserve of 9,329,84I/, in bullion. Under the new forms, the two departments stand thus: --ISSUE DEPARTMENT. Notes to the banking department, for public circulation, and for the reserve, againbt the deposits 22,801,100 Against which notes, bullion is held to the amount of 8,801,100/, being the excess above 14,000,000? of securities. In the banking department the liability is--For dep...