1833.] National Banks—English and American. 503

culty met; and in 1797, under the influence of panic, the bank unwisely solicited from government, and we may add, unfortu nately obtained, an order for the suspension of specie payments. This led to the “Restriction Bill,” under which for twenty years, their notes being a legal tender, their issues were unlimited, but by the arbitrary will of the directors. A return to specie took place under Mr. Peel's bill in 1819, since which time the bank has not ceased to redeem its paper, though, on one occasion, at the sacrifice of consistency, a bundle of one pound notes, accidentally found and promptly issued, alone saving them from a stoppage in the great run of 1825. The progressive fall in the denomination of their issue, marks the corresponding advance of paper as a substitute for coin; their early notes were all for £20 and upwards. In 1759, they first began to issue five pound notes, and in 1797, two and one pound notes. The issue of these latter ceased in 1821 on their return to specie payments. The amount of their circulation in 1718 (first report) was £ 1,829,930

Its maximum 1817 30,099,908 The average of 1832 18,542,000 State of the Bank 7th of August, 1832. Circulation - - - - £18,819,000 Deposits, public and private - 11,431,000 Rest (balance) - - - - - 2,880,000 £33,130,000 Securities. Public - - - - - £20,828,000 Private - - - - - 5,148,000 Bullion - - - - - 7,154,000 £33,130,000

Let us now compare the Bank of England with that of the United States in its privileges, conneation with government, con venience to merchants, and securities against eaccess in the cur rency. -

1. Eacclusive privileges.—In the Bank of England, thes amount to a virtual monopoly of the circulation, limited, indeed, in the country, but actual and complete within the prescribed limits of sixty-five miles around the metropolis.

The public deposits are also a monopoly by charter: they cannot be removed; the bank allows no interest upon them, and performs no service for them, and yet loans them back to the government, to whom they belong, at a rate of interest often above the market. The amount so held is of course very variable, and much less now than formerly. Its average in 1807 was rising £12,000,000. In 1832, a little under £4,000,000.

VOI. XIV.-No. 2S. 64