The Speech of Pascoe Grenfell in the House of Commons on Certain Transactions Subsisting Between the Public and the Bank of England (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. 1816 edition. Excerpt: ...that one of those remedies, --namely, that by which the Exchequer Deposits might be made available to the public service, is given in detail in the correspondence now on your table betwixt Mr. Perceval and the Bank, in 1808; and I will venture to add, that nothing would be found more practicable or easy than the application of economical regulations and arrangements, to other government deposits, now constantly unproductive to the public, in possession of the Bank; from which a very important saving in interest of money might and would be effected. For instance let us suppose a balance in the Bank to the credit of the Treasurer of the Navy of 500,000/. and that, at the same moment, the account of the Treasurer of the Ordnance should be exhausted and want replenishing, --what happens, according to the present practice? Why, this happens: Exchequer Bills are sent into the market--bought up, perhaps, in many instances, by the Bank itself--but, by whomsoever bought, instantly creating a charge of interest upon the public; and, in this manner, the wants of the Ordnance Department are satisfied. Now I want to know what possible objection could be urged against the Ordnance, (in the case I have supposed) taking from the Navy Fund, at the Bank, whatever cash the Navy could spare; always depositing, in exchange for such cash, a corresponding amount in Exchequer Bills on the Navy account? by which operation the Exchequer Bills would be kept out of the market, and interest thereon saved, for a time at least. But then I may be asked, what is to become of the Navy, when that department shall want the money? to which I answer, that possibly there may, by this time, be on the Ordnance cash account at the Bank the means of repaying to the Navy the sum originally.