Movements of the Bank Rate and Price of Consols.

Rates of Discount

	Highest	Lowest.	Average for 12 months.	Changes in the Year.
1840	5	5	5	None
1841	5	5	5	None
1842	5 Jan., Feb., and March	4 8 last months	4¼	Three
1843	4	4	4	None
1844	4 Eight first months	2½ 4 last months	3½	One
1845	3½ Nov. and Dec.	2½ first 9 months	2¾	Two
1846	3½ 1st 8 months	3 last 4 months	3¼	One
1847	7¾ November	3½ January	5¼	Seven
1848	5 January	3 Nov. and Dec.	3¾	Four
1849	3 1st 10 months	2½ December	3	Two
1850	2½	2½	2½	None
1851	3	3	3	None
1852	2½ Jan., Feb., and Mar.	2 last 8 months	2 1/12	Two
1853	5 3 last months	2¾ January	3½	Four
1854	5½ May, June, and July	5 1st 4 & last 5 mos.	5	Two
1855	6 Nov. and Dec.	3½ July and August	4¾	Six
1856	6¾ November	4½ July, Aug., Sept., &	5¾	Four
1857	9¾ November	5½ Aug. & Sept. June	6¾	Seven
1858	5 January	2½ December	3¼	Three
1859	4 May	3½ 1st 4 & last 5 mos.	2¾	Four
1860	5 Nov. and Dec.	2¾ Tanuary	4¼	Five
1861	7½ Feb. and March	3 Nov. and Dec.	5¼	Eight
1862	3 June, Nov., and Dec.	2 Aug., Sept., & Oct.	2½	Five
1863	7½ December	3½ May	4½	Six
1864	9 Sept. and Oct.	6 March	7½	Nine
1865	7 October	3¼ Tune and July	4¾	Eight
1866	10 June and July	3¾ December	7	Ten
1867	3½ January	2 last 5 months	2½	Three
1868	3 December	21st 10 months	2¼	Two
1869	4½ May	2½ Sept. and Oct.	3¼	Seven
1870	5 August	2½ last 3 months	31/8	Four
1871	4½ November	2 August	27/8	Ten
1872	6[unclear: ?] November	3 first 3 months	4[unclear: ?]	Nine
1873	8[unclear: ?] November	3¼ Aug. and Sept.	4¾	Nine
1874	6 December	2¾ June	3¾	Nine
1875	4½ January	2 September	3¼	Eight
1876	4[unclear: ?] January	2 May to Dec. inclus.	2[unclear: ?]	Four
1877	4[unclear: ?] November	2 January to Apl.,	2[unclear: ?]	Eight
1878	5[unclear: ?] November	2 February	3¾	Ten
1879	4½ January	2 May to October	2[unclear: ?]	Six
1880	3 Jan. to May inclusive	2½ July to Nov.	2¾	Three
1881	5 Nov. and Dec.	2½ may, June & July.,	3½	Seven
1882	5 13/16 February	3 Apl., May, Jne., & Jly	4[unclear: ?]	Seven
1883	4¾ January	3 Ma., Ap., & last 3 ms.	3 9/15	Eight
1884	5 December	2 July, Aug., & Sept.	2 19/20	Eight
1885	5 Jan. and Feb.	2 June to Oct. (in.)	3	Six

Prices of 3 per cent. Consols.

Highest.	Lowest.	Average of 12 months.
92[unclear: ?] May	87 October	90¼	1840
90 April	88[unclear: ?] October	89[unclear: ?]	1841
94[unclear: ?] December	89[unclear: ?] February & Jan.	92	1842
96¾ April	93[unclear: ?] June	95¼	1843
100[unclear: ?] December	97¼ January	99[unclear: ?]	1844
100¼ January	94[unclear: ?] December	98[unclear: ?]	1845
96¾ June	94¾ December	95¾	1846
92 January	82 October	87¼	1847
87[unclear: ?] January	82 March and April	85½	1848
96½ December	91½ March	92½	1849
97¾ December	95[unclear: ?] February	96½	1850
98¾ November	96½ March	97[unclear: ?]	1851
101¼ December	96½ January	99[unclear: ?]	1852
100[unclear: ?] May	92 October	97¾	1853
95¼ September	87½ April	91[unclear: ?]	1854
93 March	87[unclear: ?] October	90½	1855
95[unclear: ?] July	91 February	31[unclear: ?]	1856
93[unclear: ?] June	89 October	99[unclear: ?]	1857
98[unclear: ?] October	94¾ January	96[unclear: ?]	1858
96¼ November	91½ May	95[unclear: ?]	1859
95 June and January	93 October	94	1860
93[unclear: ?] November	89[unclear: ?] June	91½	1861
93¾ Oct. and Nov.	91[unclear: ?] June	93	1862
93½ May and September	91 December	92[unclear: ?]	1863
91½ April	88 September	90[unclear: ?]	1864
91 April	87½ December	89½	1865
89¾ November	86¼ May and June	88	1866
94[unclear: ?] September	90¾ April	93	1867
94[unclear: ?] June	92[unclear: ?] December	93[unclear: ?]	1868
93 November	92[unclear: ?] December	92[unclear: ?]	1869
94[unclear: ?] May	90¾ August	92[unclear: ?]	1870
93½ May and August	91½ February	92¾	1871
93[unclear: ?] May	91[unclear: ?] December	92½	1872
93½ May	92 December	92½	1873
93¼ May	92 March	92½	1874
94¾ August	92[unclear: ?] January	93¾	1875
96 7/12 August	93[unclear: ?] January	95	1876
96 11/16 November	94¼ May and June	95[unclear: ?]	1877
96 3/16 May	94¼ October	95 3/16	1878
98¾ May	96¼ February	97½	1879
99 15/18 November	97½ August	98[unclear: ?]	1880
100 13/16 April	98[unclear: ?] January	100	1881
102 1/16 November	99¾ August	100½	1882
102[unclear: ?] April	99 13/16 July	101 3/16	1883
102[unclear: ?] April	99[unclear: ?] December	101	1884
100½ November	96¼ April	99[unclear: ?]	1885

5. Under government supervision the Bank was divided into two departments; one of issue, the other of banking; and a certified statement of the transactions in both such departments was to be published weekly by the government.

6. That all notes of the Bank should be legal tender except at the Bank's own counter.

7. For the facilities and monopoly thus conceded, the Bank should pay to the government annually £180,000 and the profits upon all issues above £14,000,000. How these profits are estimated does not appear. While in consideration of the Bank undertaking the entire management of the Public Debt, government agreed to pay the bank annually a percentage amounting then to £248,000, but now only to £201,594.

8. In case of private banks ceasing to issue notes, the Queen in Council may authorize the Bank to increase its issues by two thirds of the amount so withdrawn. In 1855 this power was exercised, and further note-issues of £475,000 against stock were sanctioned—such being two thirds of the amount of then discontinued private issues.

Let us review the operation of the first four of these stipulations, premising that a somewhat similar arrangement followed with regard to the Bank of Ireland, and special provisions were permitted for Scotland; but in both countries the amount of circulation was closely restricted. No new banks of issue were permitted, and in consequence no new bank has been established in either country since, as far as we know.

1. Since 1844 the extension of joint stock enterprise, and the growth of confidence in the limited liability banks having become great facts, we find, forty years later, the following anomaly, viz.: that while the Bank of England has a subscribed paid-up capital of £14,553,000, with a reserve fund of £3,022,492, some 73 banks founded since 1844 have a subscribed capital of £75,100,000 (£33,030,000 of it being paid up), and a combined reserve fund of page 120 over £10,000,000, but these banks dare not issue a single £5 note, though all f them should unite to guarantee its payment. A a sample of the wisdom and of the motives of thoe who framed the Peel Act, we might here quoe the words of Lord Overstone in the House of Lords on 3rd. December, 1857. Speaking then upon he subject of Joint Stock Bank facilities this prominnt upholder of Monopoly in Credit said,—"There lad grown up in this country, and had been raplly developed within the last ten or fifteen years, a also system of credit and of holding deposits at call arrying interest, a system which had grown up to an enormous extent, and which was still growing, and if that evil was not corrected, it would certainy overturn our monetary system altogether. That ws not an isolated opinion of his own; but there was scarcely a man, of enlarged views and experience, in the city of London, who did not entertain the same views. It was indispensable that the attention of Parliament should be directed to that subject."

2. That the number of English banks enjoying the petty right of a fixed issue in 1844 has become small by degrees and beautifully less, until in 1885 their combined note issue was 2¾ millions, while 42 years ago it was 9¾ millions. On the other hand the Bank of England, whose note issue was 15¾ millions in 1840 (i.e., 6 millions above theirs), was 24½ millions in 1885 (i.e., 21¾ millions above theirs). The following table traces the progress of these changes, and shows the facts concerning Scotland and Ireland.

Bank Notes in Circulation (month of December each year).

	England and Wales.	Scotland.	Ireland.
Month ended. Dec.	Bank of England.	Private and Joint-Stock Banks.	Chartered and Joint-Stock Banks.	Bank of Ireland.	Joint Stock Banks.	Totals. for United Kingdom.	Months ended. Dec.
	£	£	£	£	£	£
1840	15,714,200	9,49,102	3,510,534	3,198,175	2,382,124	34,560,135	1840
1845	22,015,000	7,791,161	3,804,031	4,404,975	3,311,855	41,327,022	1845
1850	19,757,000	6,B0,354	3,345,019	2,647,600	2,209,359	34,095,	1850
1855	19,554,000	6,90,914	4,400,763	3,424,025	3,619,254	37,898,956	1855
1860	20,812,000	6,32,987	4,688,839	3,212,225	3,835,375	38,861,426	1860
1865	21,294,000	5,786,918	4,903,980	2,744,950	3,910,290	38,656,138	1865
1870	24,458,000	5,638,131	5,650,073	3,219,050	4,350,566	42,721,820	1870
1875	27,003,000	4,24,963	6,277,058	3,205,250	4,762,023	46,572,894	1875
1880	26,285,000	3,66,502	6,018,594	3,115,000	3,931,728	42,816,824	1880
1881	25,689,000	3,92,190	6,073,083	3,285,350	4,191,116	42,630,739	1881
1882	25,757,000	3,67,150	6,366,444	3,482,350	4,851,294	43,924,238	1882
1883	25,170,000	3,190,692	6,542,066	3,001,100	4,173,415	42,237,873	1883
1884	24,812,000	3,31,271	6,399,310	2,827,675	3,920,352	41,090,608	1884
1885	24,458,000	2,51,473	6,372,985	2,575,150	3,908,062	40,166,270	1885

3. On three occasions, viz., 1847 (when the issues were not exceeded), 1857 (when they had to be exceeded by two millions), and 1866, the operation of the Act of 1844 has been illegally suspended by government—not to relieve commercial distress, but—to save the Bank from stopping payment. Immediate relief and cessation of panic has followed in every case, showing that the crises were artificial and unnecessary: created, in fact, by a bad law badly administered.

4. To ascertain the practical working of this portion of the Act the following table will be useful. Note especially the column headed "Bullion,"

	Liabilities of the Bank.			Assets of the Bank.			Rates of Discount.
Quarters ended	Notes in Circulation.	Deposits.	Total.	Securities	Bullion.	Total.	Average for the month.	Average for the year.	Quarters ended
Dec. 1840	£16,440,000	£6,337,000	£22,733,000	£22,078,000	£3,511,000	£26,589,000	5 per cent.	5 per cent.	Dec. 1840
Dec. 1841	16,972,000	7,369,000	24,341,000	22,768,000	4,486,000	27,254,000	5 per cent.	5 per cent.	Dec. 1841
Dec. 1842	19,230,000	9,063,000	28,293,000	20,560,000	10,330,000	30,890,000	4 per cent.	4¼ per cent.	Dec. 1842
Dec. 1843	19,098,000	11,751,000	30,849,000	21,067,000	12,855,000	33,922,000	4 per cent.	4 per cent.	Dec. 1843
Dec. 1844	21,166,000	13,661,000	34,817,000	23,500,000	14,466,000	37,966,000	2[unclear: ?] per cent.	3½ per cent.	Dec. 1844
Dec. 1845	22,151,000	16,112,000	38,263,000	27,770,000	13,742,000	41,512,000	3½ per cent.	2¾ per cent.	Dec. 1845
Dec. 1840	21,380,000	15,993,000	37,379,000	25,771,000	15,090,000	40,861,000	3 per cent.	3¼ per cent.	Dec. 1846
Dec. 1847	20,058,000	15,574,000	35,632,000	29,492,000	9,798,000	39,299,000	6 per cent.	5 per cent.	Dec. 1847
Dec. 1848	18,744,000	15,310,000	34,054,000	23,630,000	13,886,000	37,516,000	3 per cent.	3¾ per cent.	Dec. 1848
Dec. 1849	19,391,000	17,548,000	36,939,000	24,059,000	16,045.000	40,104,000	2½ per cent.	3 per cent.	Dec. 1849
Dec. 1850	20,386,000	18,391,000	38,777,000	25,968,000	15,951,000	41,919.000	2½ per cent.	2½ per cent.	Dec. 1860
Dec. 1851	20,752,000	17,085,000	37,837,000	25,103,000	15,915,000	41,018,000	3 per cent.	3 per cent.	Dec. 1851
Dec. 1852	24,295,000	19,461,000	43,756,000	25,562,000	21,367,000	46,929,000	2 per cent.	2 per cent.	Dec. 1852
Dec. 1853	23,369,000	18,232,000	41,601,000	29,402.000	15,462,000	44,864,000	5 per cent.	3½ per cent.	Dec. 1853
Dec. 1854	21,003,000	14,758,000	35,761,000	25,328,000	13,619,000	38,947,000	5 per cent.	5 per cent.	Dec. 1854
Dec. 1855	20,430,000	16,257,000	36,687,000	28,620,000	11,301,000	39,921,000	6 per cent.	4¾ per cent.	Dec. 1855
Dec. 1856	20,728,000	15,601,000	36,329,000	29,484,000	10,105,000	39,589,000	6¼ per cent.	5¾ per cent.	Dec. 1856
Dec. 1857	21,070,000	19,296,000	40,366,000	35,025,000	8,788,000	43,813,000	8½ per cent.	6¾ per cent.	Dec. 1857
Dec. 1858	21,435,000	20,490,000	41,925,000	20,098,000	18,985,000	45,083,000	2½ per cent.	3¼ per cent.	Dec. 1858
Dec. 1859	22,413,000	21,516,000	43,929,000	30,117,000	17,002,000	47,119,000	2½ per cent.	2¾ per cent.	Dec. 1859
Dec. 1860	21,482,000	18.750,000	40.232,000	29,433,000	14,009,000	43,442,000	5 per cent.	4¼ per cent.	Dec. 1860
Dec. 1861	21,180,000	13,124,000	39,304,000	27,993,000	14,653,000	42,646,000	3 per cent.	5¼ per cent.	Dec. 1861
Dec. 1862	21,129,000	21,985,000	43,114,000	30.961.000	15,351,000	46,312,000	3 per cent.	2 per cent.	Dec. 1862
Dec. 1863	21,730,000	20.805,000	42,535,000	31.777,000	13,934,000	45,711,000	7½ per cent.	4½ per cent.	Dec. 1863
Dec. 1864	20,771,000	19,070,000	39,841,000	29,670,000	13,636,000	43,206,000	6½ per cent.	7½ per cent.	Dec. 1864
Dec. 1865	21,819,000	13,365,000	40,184,000	30,613,000	13,601,000	44,214,000	6½ per cent.	4¾ per cent.	Dec. 1865
Dec. 1866	23,728,000	22,740,000	46,468,000	33,110,000	17,478,000	50,588,000	3¾ per cent.	7 per cent.	Dec. 1866
Dec. 1807	24,706,000	23,850,000	48,556,000	29,960,000	22,561,000	52,521,000	2 per cent.	2½ per cent.	Dec. 1867
Dec. 1368	24,336,000	22,409,000	46,745,000	33,935,000	13,981,000	52,918,000	3 per cent.	2¼ per cent.	Dec. 1868
Dec. 1869	23,910,000	21,305,000	45,215,000	32,373,000	18,827,000	51,200,000	3 per cent.	3¼ per cent.	Dec. 1869
Dec. 1870	24,539,000	24,196,000	48,735,000	29,513,000	22,311,000	51,824,000	2½ per cent.	3 per cent.	Dec. 1870
Dec. 1871	25,625,000	28,010,000	53,635,000	33,827,000	22,952,000	56,779,000	3¼ per cent.	2[unclear: ?] per cent. per cent.	Dec. 1871
Dec. 1872	25,983,000	26,645,000	62,628,000	34,468,000	21,379,000	65,847,000	5[unclear: ?] per cent.	4[unclear: ?] per cent.	Dec. 1872
Dec. 1873	26,219,000	25,079,000	51,298,000	33,633,000	20,869,000	54,502,000	5¼ per cent.	4¾ per cent.	Dec. 1873
Dec. 1874	26,877,000	23,740,000	50,617,000	82,679,000	21,023,000	63,707,000	6 per cent.	3¾ per cent.	Dec. 1874
Dec. 1875	28,356,000	26,267,000	54,623,000	34,134,000	23,579,000	57,713,000	3 per cent.	3¼ per cent.	Dec. 1875
Dec. 1876	28,565,000	33,043,000	61,608,000	33,440,000	31,272,000	64,712,000	2 per cent.	2 per cent.	Dec. 1876
Dec. 1877	27,762,000	25,188,000	52,950,000	32,953,000	23,128,000	66,081,000	4 per cent.	2[unclear: ?] per cent.	Dec. 1877
Dec. 1878	80,282,000	30,324,000	60,606,000	38,326.000	25,501,000	63,827,000	5 per cent.	3¾ per cent.	Dec. 1878
Dec. 1879	28,296,000	35,650,000	63,946,000	37,016,000	30,041,000	67,057,000	3 per cent.	2[unclear: ?] per cent.	Dec. 1879
Dec. 1880	26,829,000	31,350,000	68,179,000	34,839,000	26,406,000	61,245,000	2[unclear: ?] per cent.	2¾ per cent.	Dec. 1880
Dec. 1881	26,237,000	28,633,000	64,870,000	37,096,000	20,876,000	57,972,000	5 per cent.	8 per cent.	Dec. 1881
Dec. 1882	26,351,000	27,410,000	53,761,000	36,147,000	20,751,000	56,898,000	6 per cent.	4 per cent.	Dec. 1882
Dec. 1883	25,683,000	29,205,000	64,888,000	35,669,000	22,355,000	68,024,000	3 per cent.	3 2/15 per cent.	Dec. 1883
Dec. 1884	25,222,999	29,346,720	64,569,719	36,336,691	20,360,721	56,697,412	5 per cent.	2 19/20 per cent.	Dec. 1884
Dec. 1885	24,621,423	29,344,372	53,965,795	34,643,349	20,826,856	55,470,205	3 15/31 per cent.	3 per cent.	Dec. 1885