362 



JOINT STOCK BANKING. 



ing, that he urged the Bank of England, as a preliminary measure, 

 to establish branches in various parts of the country ; and the prin- 

 ciple was afterwards still further acted upon by allowing the forma- 

 tion of Joint Stock Banks, with an unlimited number of partners, 

 within sixty-five miles of London, thus drawing a protective circle 

 round the aforesaid Old Lady, and continuing to her the full enjoy- 

 ment of her ancient monopoly in the most important part of the 

 empire. In the meantime, various Joint Stock Banks were formed 

 throughout the country, and although still clogged by many ridicu- 

 lous and very absurd restrictions, these establishments have yielded 

 handsome dividends, and are gradually adding to their own stability, 

 and to the perfect safety of their shareholders and security of the 

 public by a rapid accumulation of " reserved funds," over and above 

 their paid-up capital; ready on any occasion to meet every possible 

 contingency, without rendering it at all necessary to make further 

 calls upon their numerous and wealthy partners. 



It is still, however, supposed to be unlawful for more than six 

 partners to carry on the business of Bankers in London within the 

 proscribed circle of sixty-five miles round it, and it was only discovered 

 towards the latter end of the last Session of Parliament, that the re- 

 strictions did not extend to the formation of Joint Stock Banks of 

 deposit in London and its vicinity ; and finally, the Bank Charter Bill 

 declared the formation of such establishments, with an unlimited 

 number of partners to be perfectly legal.* 



In this new situation of affairs a number of spirited individuals, 

 perfectly independent in point of fortune, and well acquainted with 

 the safety and advantages of the Scotch Joint Stock System, lost no 

 time in associating themselves for the formation of a Bank of Deposit 

 upon similar principles to those pursued so successfully in Scotland, 

 Liverpool, Manchester, and elsewhere. They affirm, that they will 

 be able, especially in times of pressure or difficulty, to give fair and 

 equable assistance, secure and steady accommodation, to the shop- 

 keepers, tradesmen, and other industrious classes in, and about the 



* The following Clause in the Bank Charter Bill, authorises the establish- 

 ment of such Banks : " And whereas the intention of this Act is, that the 

 Governor and Company of the Bank of England should, during the period 

 stated in this Act, (subject, nevertheless, to such redemption as is described in 

 this Act,) continue to hold and enjoy all the exclusive privileges of Banking 

 given by the said recited Act of the 39th and 40th years of the reign of His 

 Majesty King George III. aforesaid, as regulated by the said recited Act of the 

 7th year of His late Majesty King George IV. or any prior or subsequent Act 

 or Acts of Parliament, but no other or further exclusive privilege of Banking. 

 And whereas doubts have arisen as to the construction of the said Acts, and as 

 to the extent of such exclusive privilege, and it is expedient that all such 

 doubts should be removed. Be it therefore declared and enacted, that any body 

 politic or corporate, or society, or company, or partnership, although consisting of more 

 than six persons, may carry on the trade or business of Banking in London, or within 

 sixty-five miles thereofSprovided that such body politic or corporate, or society, or 

 company, or partnership, do not borrow, owe, or take up, in England, any sum 

 or sums of money on their bills or notes payable on demand, or at any less time 

 than six months 'from the borrowing thereof, during the continuance of the pri- 

 vileges granted by this Act to the said Governor and Company of the Bank of 

 England." 



