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received no interest. It attracted the attention of the committee on public expenditure in 1807. That commit tee, in its report, commented with equal good sense and ability on the advantages which the Bank must derive from such a large deposit of money. The bank notes in circulation had then increased to £16,621,390; and the deposits, which in 1797 had been only £5,130,140 inclusive of private accounts, were, on the Government account alone, betwixt eleven and twelve millions. Bank stock, which had sold in 1800 from 156 to 172 per cent., then sold at 230

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strong circumstances," as the committee observes, "in confirmation of the large increase of profits." It appears, from the evidence of Mr Samuel Thornton before the committee, that in 1800, when he, as Governor, transacted with Mr Pitt a renewal of the Bank's charter for twenty-one years, it had not escaped his eagle eye, to urge, on the part of the public, a right to participate in the profits of the Bank, arising, among other things, from money lodged there to pay the growing dividends, and the quarterly issues for redemption of the national debt, which" Mr Pitt estimated, might, during the progress of the charter, accumulate to £4,000,000 a quarter."+ The final bargain made for the public was for the renewal, and on account of the advantages from public money enjoyed by the Bank- -a loan of three millions, without interest, for six years, producing," as Mr Thornton says, a profit of £900,000; but, at the then price of annuities, it was worth only £750,000, reckoning £5 per cent. interest of money." The same gentleman states the average balance from money lodged for payment of growing dividends, as two millions and an half," and " on the public accounts at that time, of trifling amount. Mr Grenfell, however, has found out, "from statements now made by the Bank," and avers it in his speech, that the money for growing dividends exceeded £3,600,000, and that the trifling deposits were £1,947,000. If Mr Pitt had possessed, in 1800, the knowledge which

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*See Report, &c. ordered by the House of Commons to be printed, 10th August 1807, pp. 75, 76, 77, 78, and 79.

+ Vide Report as above, p. 103.

Mr Grenfell now possesses, we should have had a bargain more advantageous to the public. The plain truth, with respect to what was really done, is, that the Bank lent, with an air of sacrifice and self-denial, as the equivalent in a bargain most advantageous to them, three millions of money to that public, of whose treasure they were then in permanent possession of sums amounting to more than six millions! In 1806 this loan became payable. The administration at that time did not find it convenient to make the payment, but succeeded in ❝ prolonging the period of this loan for the then existing war," at 3 per cent. i.e. paying "£90,000 per annum for the use of it."* Why, sir," says Mr Grenfell, addressing the Speaker with most excusable animation," at the very moment, in 1806, when the Bank required, and the public most improvidently agreed to pay, £90,000 for the use of three millions of money, the Bank held, and were in possession of, a treasure belonging to the public, amounting to a sum little short of twelve millions, wholly unproductive to the public, but productive of advantage to the Bank." In the year

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1814, it is most proper to add here, this loan was repaid, and the interest on it, amounting, for eight years and eight months, to £780,000!

As soon as the report of the committee on public expenditure made its appearance, Mr Perceval, who was by that time Chancellor of the Exchequer, came forward to claim for the public a participation in the profits derivable from the deposits, and a reduction in the charge for managing the national debt. The Bank agreed to give another loan of three millions without interest; to allow the withdrawing of half a million of the unclaimed dividends then lying in their hands; and

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present profits of the Bank, arising out of its contracts or transactions with the public.

Interest at 5 per cent. on £11,500,000 of public balances held by the Bank since 1806, £575,000. From which deduct for a loan of three millions to the public without interest, saving 5 per cent., which is £150,000; another of six millions, at 4 per cent., saving 1 per cent. £60,000; another of three millions, at 3 per cent. saving 2 per cent. £60,000; and half a million taken from the unclaimed dividends, saving 5 per cent. £25,000; in all £295,000;-leaving to the Bank of England, merely for the safe custody of the public money, a clear profit of £280,000 a-year. The rest of their allowances stand thus: Commission for making transfers and paying dividends on the national debt, £275,000. Commission on loans and lotteries, £30,000 (both these stated as in 1815.) Annual allowance, since the erection of the Bank, for house expenses, £4000. Annual allowance on four millions of the public debt bought by the Bank in 1722 from the South Sea Company, £1898. If to this we add, for sixteen millions of increase in the circulation of Bank of England paper, since 26th February 1797, an annual profit of 5 per cent. which is £800,000, the gross returns to our national Bank, from its transactions with the state, will be £1,390,898 yearly!*.

The effects of this profitable arrangement, which has operated so visibly on that thriving establishment, will be seen to the full conviction of our readers, when we add a statement of the profits realized by Bank proprietors during the last twenty years, reckoning from 1797; from which period, by the increased amount in the public expenditure producing such deposits of money, and the increase of the national debt, and the increased issue of notes, unchecked, until within the last three years, by any motive of prudence-over and above the old ordinary dividend of 7 per cent., there has accrued to that description of persons-In bonuses, and increase of di

It is only fair to state here a saving of £233,720 per annum, from £11,686,000 advanced to the public from the bank since 1746, at 3 per cent. interest, being the consideration paid on every renewal of their charter for their exclusive privileges.

vidends, 64 per cent. £7,451,136.* New bank stock, £2,910,600, divided amongst the proprietors in May 1816, worth 250 per cent. equivalent in money to £7,276,500. Increased value of the capital of £11,642,000, upon an average of 1797 only 125 per cent. but which is now taken at 250, being an increase in the market value of this property of 125 per cent. equivalent to £14,553,000. Thus the total profit, in addition to the annual dividends of 7 per cent. which had never been exceeded during the first hundred years of the Bank's existence, has been, in twenty years, on a capital of £11,642,400, the incredible sum of £29,280,636 !

We have now put our readers in possession of some striking facts in the history of this celebrated estab lishment, for almost all of which, at least for those which are most important, we are indebted to the unwearied research and perseverance of the author of the Speech before us. That speech, and the propositions to Parliament on which it is founded, resolve themselves into three questions. Can the allowances made to the Bank be reduced in their amount, with justice to the Bank and safety to the public? Can the nation derive farther advantage from the large deposits of money lodged at the Bank? These objects once found practicable and expedient, What would be the most effectual and dignified course to be adopted for securing them?

On each of these we shall offer such obvious and simple hints as the stinted limits of our publication will admit. 1st, As to what farther deduction may be made on the allowance for managing the debt, we quote, with deference and satisfaction, from a letter addressed to the Treasury, 18th January 1786, by the commissioners for auditing public accounts. "We take the liberty to suggest (what is indeed very obvious) that the commencement of every undertaking is usually the most expensive; and consequently, when the Bank had once provided additional

* Bonuses distributed among the proprietors betwixt June 1799 and October 1806, 321 per cent. Permanent increase of dividend, at 3 per cent. per annum, commencing in April 1807, is to April 1817, 10 years' dividends, or 314 per cent. Together, 64 per cent.

+ See No 390, Parl. Pro. Sess. 1815.

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clerks, and incurred such other new expenses as might be necessary, the same persons and accommodations (or nearly the same) would be sufficient to transact the payment of the dividends on several additional millions, without much increase of charges of management. We believe that most other contractors have found, that a moderate sum gained on a large quantity of any commodity generally produces a greater profit than a higher price on a less quantity: therefore, if £360 was a sufficient allowance when annuities on a capital of one million only were created, it should seem that the Bank could well undertake the like service at a much lower rate, not only when the public necessities have unfortunately increased the capital of the national debt to the enormous load of two hundred millions,* but also when the consolidation of a variety of annuities must have lessened both the trouble and expense attending the management thereof." The Bank has incurred, within the last twenty years, a very great expense for additional hands, and more accommodation to the public business; and no one can deny that it is executed unexceptionably well. But these views of the committee are still applicable as principles. The allowance of £4000 for house expenses was strongly adverted to for discontinuance, in the end of 1807, by Mr Perceval, in his correspondence with the Bank at that time. The same reasons exist now; and indeed, the authority of that very acute and able man is sufficient to those who know, that if his leisure from the multifarious calls of state had permitted him to turn a full attention to the affairs of the Bank, he would have insisted on a thorough sifting and revision of their bargains. The allow ance for the debt purchased of the South Sea Company, is one which ought to cease instantly, on the plain ground that all management on it has ceased since 1722. 2dly, the deposits of public money lying at the Bank are just so many millions of capital taken from the productive labour and productive capital of the country, where they might at least be useful, and lodged with a great corporation whose trade is money, and to whom they

That truly enormous load" is now nearly 860 millions!

must be of the highest value. It is to them so much added to their ordinary capital, without much of the risk or responsibility to which their floating obligations subject them. For every thousand of this money in their hands, they are enabled to discount so many more bills, or issue so many more notes. The public service ought instantly to be benefitted by them, if the usury laws are repealed to an amount according to what may be the average rate of interest for money throughout the country. 3dly, Mr Grenfell recommends that Parliament should interfere to make a new arrangement for the public; assigning as a reason, that the influence" which, though allpowerful, irresistible in Downing Street, would be impotent and unavailing within the walls of the house." not," says he, with the same animation which we spoke of before,"Is not your whole financial history, during the last twenty years, filled with proofs of this influence? It is then in this House, and through the medium of this House only, that the interests and rights of the public can be secured in all negotiations of this nature with the Bank; and I repeat it, if the house of Commons will interfere, my conviction is, that the Bank will not resist.. If, however, I should be disappointed in this expectation-and if the Bank, unmindful of what it owes to the public,

"Is

forgetting that it has duties to perform towards the public, as well as within the limited circle of its own proprietors,-I will go farther, and as a proprietor of bank stock myself, add, that if the Bank, taking a narrow, contracted, selfish, and therefore mistaken, view of its own real permanent interests, should resist regulations founded in fairness, equity, and justice,-in such a state of things, sir, I say it must be a consolation to us to know, and I assert it confidently, that we have a remedy within our own reach." p. 60. As to the profits accruing from the paper circulation of the Bank, of which we hope the country will continue to enjoy the advantages, under due modifications,* Mr Ricardo is of

We hope to be able to announce very soon, from the pen of one of the ablest economists of our time, an Essay, shewing that a large coinage of gold would be an unproductive fixation of capital, and therefore hurtful to the state. For the happiest idea that ever was conceived, of a currency liable to

opinion, that paper money affords a seignorage equal to its exchangeable value; and he also believes, that the nation might gain two millions yearly, if it were the sole issuer of paper money. He wisely adds, that this would only be safe under the guidance of commissioners responsible to Parliament only." Mr Grenfell's recommendation of parliamentary interference is good. That is, indeed, the truly constitutional mode. Every exertion of the kind is so much gained towards ensuring a considerate use of the public treasure, and a strict control over it in future, as matter of duty and honest emulation, on the part of those who have been recognised, since the Revolution, as its guardians.

We have now gone over the principal matters of these questions. For the rest we refer to Mr Grenfell, who has invested the subject with attractions of manner to which we cannot aspire. To his interference in the business this country is indebted for a saving of £180,000 yearly,- -a thing of greater importance than those who are occupied with the taking but doubtful schemes of a more extended patriotism could be easily led to acknowledge. Nice calculations of political arithmetic, however, and even the most refined inquiries of political economy, come now, with direct force, to the ordinary business and interests of all those who have, in common parlance, a stake in the country; and we might even add, to those also who have nothing but life and liberty to care for, and whose interest in the cause of good government is the ultimate and the extreme.

We know, from the very best authority, that Lord Glenville, much to the credit of his sense and candour, has recently taken blame to himself for not looking narrowly enough into the affairs of the Bank in 1806-7, when he was at the head of the Treasury, and Mr Vansittart secretary under him. The truth is, we believe, that ministers only overlooked this subject

no variations except such as affect the standard itself, we refer to the novel, solid, and ingenious reasons urged in Mr Ricardo's Proposals. There also the reader will find the practical developement of this fortunate conception made out with uncommon closeness, clearness, and simplicity.

during the occupation of mind so naturally produced by the vast concerns of the war. The author of these discussions, to whom all the merit is due, and who might be excused for any partiality to his own inquiries, or ardour in the pursuit of their objects, shews exemplary moderation. He has taken them up without violence or faction, but with the urbanity and decision of an English gentleman. He has not over-estimated their importance; and his statements are remarkable for perspicuity and plainness, without the least shade of laboured comment or ostentatious deduction. He deals not in splendid generalizations, nor in well-turned invectives ad captandum vulgus. We entreat the early attention of our readers to the Speech itself, and to the Appendix, in which they will find a variety of essential statement and explanation, for which we could not possibly make

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Mr Grenfell was a member of the bullion committee, and enjoyed the friendship of Mr Horner. In a letter written lately to a correspondent in this place, he says, "the sanction of his great authority, and his unvaried countenance and approbation of my humble exertions in this cause, inspired me with a confidence as to the correctness of my own views, which has been most essential to me." knew, ourselves, enough of that most excellent person, to perceive that this is a great deal for any man to say. The privileges and advantages which it implies can only be equalled by intercourse with one of the most original and inventive writers on political economy since the time of Adam Smith ;* whose speculations on the great subjects of human interest with which that science is especially connected, have much of the strictness and severity of mathematical demonstration; and who bids fair to give to its most practical deductions more shape and certainty than they have received from any writer of his day.

* Mr Ricardo, who is the friend of Mr Grenfell, seconded his resolutions proposed to the Court of Proprietors at the Bank, 23d May 1816, and speaks with respect of his exertions for the public. See Proposals for an Economical and Secure Currency, p. 42.

sper!

The Life of William Hutton, F.A.S.S.
including a particular Account of the
Riots at Birmingham in 1791; to
which is subjoined the History of
his Family, written by himself, and
published by his Daughter, Cathe-
rine Hutton. 8vo. pp. 400. Lon-
don, Baldwin & Co.

THE Life of William Hutton ought
to obtain a place next to the Memoirs
of Dr Franklin, in the libraries of all
aspiring young men who are entering
upon business, or active life. If they
find nothing very elegant in the com-
position of these volumes, very skilful
in the arrangement of the incidents,
or very great and striking in the inci-
dents themselves-they will be pleas
ed and edified by the simple picture of
human life which is there delineated,
the characters of truth and nature
which are impressed on every line-
and, above all, by the animating con-
firmation which it affords of a truth
very generally acknowledged, and al-
most as generally neglected, that there.
is scarcely an obstacle placed in the
path to independence and respectabi-
lity, which may not be surmounted by
honesty, economy, and perseverance.

The narrative is simple, perhaps to a
fault, but always assumes an earnest
or playful tone, with the most judici-
ous conformity to the importance or
frivolity of the incidents related. The
author attempts to interest his readers
by no complicated manoeuvres, no po-
litical intrigues, no marvellous adven-
tures; he gives them the unadorned
history of his own struggles up a
mountain of difficulties-yet the cir-
cumstances in which he is placed are
sometimes so uncommon, as to appear
almost incredible. The mode in which
he ushered himself into life, is perhaps
unparalleled in the annals of biogra-
phy. We were particularly delighted
with the sly humour which charac-
terizes his remarks on the transac-

tions of his juvenile years, and which
presents the interesting picture of an
old man, looking back with pleasure
on the years of childhood, yet regard-
ing the foibles and frivolities of that
light-hearted age with a mixture of
complacency and derision. While he
describes the years of youth and vani-
ty, his sarcastic humour and self-gra-
tulation still blend in happy unison
with his theme. In old age, again,
we find him represented with all the
VOL. I.

gravity, and many of the absurdities, which accompany the decline of life. He is serious, egotistical, and vainnever absolutely tedious; for his sentences are short, and his reasoning obvious, pointed, and, at least in his own opinion, quite conclusive.

We cannot make room for long extracts, but the character of Phebe accords so well with some other chaBrown, as recorded by Mr Hutton, racters already described in our miscellany, that we cannot resist the temptation of transcribing it at full length.

"But the greatest wonder I saw was Phebe Brown. She was five feet six inches in height, is about thirty, well proportioned, round faced and ruddy, has a dark penetrating eye, which, the moment it fixes upon your face, sees your character, and that with precision. Her step (pardon the Irishism) is more manly than a man's, and dress is a man's hat, coat, with a spencer can cover forty miles a-day. Her common over it, and men's shoes. As she is unmarried, I believe she is a stranger to breeches.

"She can lift one hundred weight in each hand, and carry fourteen score; can sew, knit, cook, and spin; but hates them all, and every accompaniment to the female character, that of modesty excepted. A gentleman at the New Bath had recently treated her rudely, 'She had a good mind to have knocked him down.' She assured me, ⚫ she never knew what fear was.' She gives no affront, but offers to fight any man who gives her one. If she never has fought, perhaps it is owing to the insulter having been a coward, for the man of courage would disdain to offer an insult to a female.

"Phebe has strong sense, an excellent judgment, says smart things, and supports an easy freedom in all companies. Her voice is more than masculine, it is deep toned. With the wind in her favour, she can send it a mile; she has neither beard nor prominence of breast; she undertakes any kind of manual labour, as holding the plough, driving a team, thatching the barn, using the flail, &c.; but her chief avocation is breaking horses, for which she charges a guinea a-week each. She always rides without a saddle-is thought to be the best judge of a horse or cow in the country, and is frequently employed to purchase for others at the neighbouring fairs.

"She is fond of Milton, Pope, and Shakspeare, also of music; is self-taught, and performs on several instruments, as the flute, violin, and harpsichord, and supports

the bass-viol in Mallock church. She is a marks-woman, and carries a gun on her shoulder. She cats no beef or pork, and but little mutton. Her chief food is milk, which is also her drink, discarding wine, ale, and spirits.

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