364 JOINT STOCK BANKING. 



their not being Banks of issue, neither are the London bankers : and 

 although a Joint Stock Bank cannot issue notes, yet, when we look 

 at the evidence given lately before the Bank Committee, and see that 

 the expense of maintaining the paper circulation of the country Banks 

 and the Bank of England, is equal to two or two, and'a half per cent., 

 whilst the acknowledged profit is only three per cent., it seems that 

 the actual profit by the circulation is very trifling ; and that by allow- 

 ing a moderate interest on permanent deposits to insure their per- 

 manency, a Joint Stock Bank of Deposit may have as fair a margin 

 for a moderate profit, as if it were burdened with the expense of 

 maintaining a fluctuating and uncertain capital through the instru- 

 mentality of a paper currency. With regard to capital and security, 

 let us inquire what is the actual capital of the Bank of" England, 

 available for the purpose of carrying on its business, and we will find 

 that its subscribed capital being in the hands of government, it has to 

 depend upon its " rest" of about two millions and a half, its Bank 

 notes, and the deposits of its customers. Now, a Joint Stock Bank 

 like the London and Westminster, for instance, with a nominal capital 

 often millions, if one-fourth were paid up, would have the same amount 

 of available capital ; and if it be unable, on one hand, to raise a fic- 

 titious capital by means of notes of hand, it will not, on the other, be 

 burdened with various expenses, especially that of keeping some mil- 

 lions of gold and bullion laying unemployed and unproductive, to meet 

 the payment of its paper. The capital of the Bank of England in the 

 hands of government, may be considered an undoubted security to 

 the public for the safety of the monies deposited in the Bank ; and, 

 in like manner, a Joint Stock Bank Avith perhaps a thousand partners, 

 most of them men of very great wealth, presents what may be fairly 

 considered an equally undoubted security to depositors. With regard 

 to suing and being sued, there can be little doubt that parliament will 

 not refuse to grant to any respectable body of men associated commune 

 bonum, that privilege which is not denied to similar establishments ; 

 but even if that were possible, it would be little impediment to the 

 carrying on the business of such Bank of Deposit; and, in fact, most 

 of the Scotch Banks prefer to sue and be sued (when such an extra- 

 ordinary proceeding becomes necessary) through the instrumentality 

 of trustees, rather than be at the expense of obtaining a charter 

 an instrument more for the benefit of the public than the convenience 

 or advantage of the copartners of the Bank. In short, in the language 

 of a writer in favour of Joint Stock Companies, " It seems quite pos- 

 sible that a Joint Stock Bank of Deposit may, by giving an additional 

 stimulus to the trade and industry of some portion of the community, 

 open new channels, and find sufficient business for the safe and profit- 

 able employment of its capital in transactions not worthy of the notice 

 of the Bank of England, nor courted by the present race of private 

 Bankers." And if such be the result *of these new establishments, 

 we, in common with all who wish well to the industrious classes of 

 the community, shall rejoice in their prosperity. We have only been 

 able to afford room for a very brief sketch of these new, but important 

 institutions ; but we may revert to the subject at more length here- 

 after. 



