136 
REPORT—1854. 
On the Laws of the Currency, as exemplified in the Circulation of Country 
Bank Notes in Enqland since the passinq of the Act of 1844. By J. W. 
Gilbart, F.B.S.' 
The author commences by observing, that it is a gratifying circumstance that 
questions relating to the currency are no longer connected with party politics, but 
are now regarded as presenting topics for scientific investigation, and he believed, 
that by no science can they he more clearly and successfully investigated than by the 
science of statistics. 
The inquiries in this paper are limited to that portion of our currency which 
consists of notes issued by country bankers, and are considered chiefly in reference 
to those fluctuations in the amount of their circulation, which have occurred since 
the passing of the Act of 1644. 
The Charter of the Rank of England was subject to renewal iu the year 1841 , and 
in that year was passed an Act of Parliament “ to regulate the issue of bank notes, 
and for giving to the Governor and Company of the Rank of England certain privi¬ 
leges for a limited period.” 
The charges against the country circulation had been, that it was unsac, 
excessive, and ill-regulated. The Act of 1844 dealt chiefly with the second of these 
accusations. 
According to the provisions of this Act, no new hank .of issue was permitted to >e 
established in the United Kingdom, and the maximum amount of notes which cac 
existing bank of issue might issue upon an average of four weeks, should, after t ie 
10th October, 1844, be the average amount of the notes in circulation during c 
twelve weeks ending the 27th April, 1844 ; that returns should be made to govern¬ 
ment of the average amount of notes in circulation during each week, and if, upon 
an average of four weeks, the amount in circulation exceeded the authorized amount, 
the bank should be subject to a penalty equal to the amount, of that excess; U>« 
if uny existing bank not lmvir.g more than six partners should increase the numb- 
of partners to more than six. it should lose the privilege of issue j that, if any t*o 
anks should unite, so ns to increase their number beyond six, they shall lose 
right of issue ; and if any banker shall become bankrupt, or cense to carl T on , 
business of a banker, or cease to issue notes, it shall not be lawful for such banker 
ut any time thereafter tu issue any such notes. , .. ;i| . 
. c charge of being unsafe the Act did not meddle with, except so far as him 1 P 
ie issues of each bank, »ml it;..,, _i.„.,i. ,.r mnv be regarded as 
■i tl uKiiu hi c-ngianu. in mu iuuuiu w, 
/'i o i?n^ C . ca A nt ! ato operation, the amount of gold in the Bank o. ~~p- 
£} a ti!? 9 i™ 7 * °" l , be 23rd of October. I84“, the amount of gold was 
rircnli.Hnn W ”° corr, '»ponding reduction in the amount of c° 
1852, the gold had advanced to W'.Wffi 
not thrmfo P erm, ttcd the country circulation no corresponding expansion. 
rr f0 c , ap r r 10 1,ave bt> ™ the object of the Act, that the country bankers 
Tbl Zl thc ’ r , T cs b v the amount of gold in the Bank of England. 
the Act in some respects from those of 1845, passed 
reference to the banks of .Scotland ami Ireland. npni | ly 
eoual d hank exceed its authorized issue, it would «n«rapcn£j 
it antiorl i U ° f ,he CXCCM bl *t in Scotland and Ireland a bank may 
There k on SUe ' £° v, ?. cd * * ** coffers an amount of gold equal to this ,exc& 
FirnKn,! „n 1 T Xh , Vr (iil,cri ’ ,lco in the laws of 1844 and 1845, with rfren* 
mav uni^ »n?in C0,lani1 , and Ireland and Scotland two banks of. 
bink. on^ 1 i" n or c i,&h ,w,c ci,cu ' Mi0 \ jd 
lation of nne i °\, , lC ® ^ more than six partners, should unite, 
Ireland or Se„?Lf h ° f these would he lost. Unions of bwj- '» ^ 
Ireland or Scotland are not very likclv, nor oerhans desirable. The banks are Ws* 
SSS. a aS K 5T ta1 ' “" d C1 ^y the^publm*confidence. In 
beneficial Y. t • T s ‘" ul1 Union among them wouW J 
1845 rdv!*' • ‘ C waywardness of legislation, that the Acts of 
184o give facilities to unions in Ireland and Scotland, and restrict them m k»S 
