502 National Banks—English and American. [December,

Company of the Bank of England, but prohibited from engaging in any other dealings than bills of exchange and gold and silver. In 1708 (7 Anne c. 7), owing to the attempted rivalry of a private company, entitled “the Mine Adventure Company,” an act was passed forbidding any issues of notes throughout Eng land from firms with more than six partners—upon which act is founded the bank’s monopoly of the circulation. The operation of this, however, by the act of 1826, was limited to London, and a circuit of sixty-five miles. The charter, when granted, was to continue for eleven years certain, and has since had seven succes sive renewals for the respective terms of five, twenty-two, ten, twenty-two, twenty-two, twenty-six and twenty-one years, which brings it down to the first of August last, when a new charter was granted for ten years, with, for the first time, some very import ant modifications. The bank was thus in its origin a mere finan cial bank, its convenience to the public being limited to being a place of safe deposit for unused balances—a want under which the merchants of London had long laboured—and reloaning, of course, to that extent. At each renewal of the charter, its capital has been increased, and a bonus demanded by the government, or a new loan on favourable terms; until at the present time the whole amount of its capital £14,686,000 is in the hands of the government, beside all its surplus, amounting to as much more—on which debt different rates of interest are paid : That on the original debt beginning at eight per cent, having been successively re duced by the paying off dissentients, until it fell about the middle of the last century to three per cent, which, on being funded, received the appellation by which it has since been known of the three per cent consols. It is here worthy of remark, as bearing upon a question often discussed among us—that the discount operations of the Bank of England have from the first been conducted upon a vested capi tal, and consequently without the control of any other funds than what those very operations commanded. The result of a case, however, thus isolated and guarded, though settling conclusively the scientific question, is not to be hastily concluded in regard of banks like ours, open to competition, and pressed on all hands by jealous rivals. In the course of its existence, the Bank of England has several times, and from various causes, been brought to the verge of bank ruptcy. Within two years after its establishment (1696), during the great re-coinage of silver, it was compelled for a short time to sus pend payment of its notes. In 1745 the advance of the Highlanders on London caused a run which they were fain to delay by paying out shillings and sixpences. In 1793, the failure of about one-third of the private banks led to a demand for gold, which was with diffi