the "encouragement" of coining monies; while this Act prohibited the people from exercising one of their most ancient and most undoubted privileges. England is the only nation where the people have not free access to the Mint, at all reasonable times, for the purpose of converting bullion into the legal coin of the realm. However politic it may have been to alter the standard weight of the silver coinage (an alteration which had been advocated by the highest authorities of former times) the closing of the Mint against the Public, and thereby restricting the quantity of the silver coinage, was an abuse of Parliamentary power that no eminent authority has ever sanctioned, and no argument has ever justified. For this great wrong and injury to the country there is only one remedy, and that is in the repeal of the Silver Coinage Act of 1816. The following is a brief Epitome of the Act 56 Geo. III. c. 68. June, 1816: Sect. 1. 18 Car. II. c. 5, as to coining silver brought to the Mint without charge, repealed. Sect. 2. 7 & 8 Will. III. c. 1, as to weight and fineness of silver coin, under Mint Indenture, and so much of 14 Geo. III. c. 42, as requires 628. to the pound troy of silver, repealed. Sect. 3. 38 Geo. III. c. 59, prohibiting silver coinage, repealed. Sect. 4. The pound troy of standard silver, eleven ounces two pennyweights fine, etc., may be coined into 668. Sect. 5. Old silver coin of the realm brought to the Mint, may be exchanged for its full nominal value in new silver coin. Sect. 6. Treasury may appoint persons to receive old silver coin, and exchange the same for new, at any places throughout the kingdom. Sect. 7. After the end of the period appointed for receiving old coin of the realm at the Mint, all old coin deficient in value may be cut by the person to whom it is tendered. Sect. 8. Provision for the loss arising from the deficiency, and recoinage of the silver coin. Sect. 9. After a day to be appointed by Proclamation, any person may bring silver coin and bullion to the Mint, to be coined at the rate of 668. per pound troy of standard silver, eleven ounces two pennyweights fine, etc., of which 428. per pound shall be delivered to the party bringing in the bullion, and 4s. retained for assaying, loss, and coinage. Sect. 10. Such sum of 48. per pound shall be applied to the expense of coinage, and the surplus (if any) carried to the Consolidated fund. Sect. 11. Gold coin declared the only legal tender, being of the weight and fineness of the Mint Indenture. Sect. 12. 14 Geo. III. c. 42, making silver a tender to £25, and afterwards by weight, repealed after a day to be named in the King's Proclamation for that purpose. No tender of silver coin legal beyond 408. Sect. 13. Current gold coin shall not be received or paid for more or less than its value, according to its denomination, under the penalty of imprisonment for six months. Sect. 14. When persons who have been convicted shall be again guilty, the Clerk of the Peace shall certify former conviction. Sect. 15. Indictments not to be traversed. Sect. 16. On prosecution it shall not be necessary to prove money lawful. Sect. 17. All other Acts relating to silver coin extended to this Act. Sect. 18. Act not to affect payments in Bank of England Notes. Sect. 19. This Act not to affect payments of revenue in Ireland, in Irish Bank tokens. It is a fact worth notice that, from 1803 to 1809, the price of gold under the Restriction Act was maintained at £4 per ounce. CHAPTER IX. THE BANK OF ENGLAND: AND THE DIS- It is a remarkable fact that the law, regulating the money of the greatest commercial country in the world, is to be found only in the Charter of a Banking Company. But this is an anomaly which time seems to have reconciled us to, nor is it very material, if it do not confound things which ought to be kept distinct. But is the distinction so clear as it ought to be? Many persons, perhaps, are not aware that, the Bank of England, as a Banking Company, in no respect differs from any other Bank. The fact, that certain special privileges have been attached by the State to the Bank of England, and to no other Bank, in no respect makes the Bank of England different from any other Bank, as regards Banking. Those special and exclusive privileges were conferred professedly for public convenience. By the Bank Charter Act of 1844, the Bank of England has the privilege of issuing its notes to the amount of £14,000,000 on Government Securities. This sum was made up of £11,015,100, the Government Debt to the Bank, and £2,984,900, for other claims, making together £14,000,000, which amount, by the lapsed issues of private. banks in December, 1855, was increased to £14,475,000, and subsequently by a further addition to £14,650,000, which is the present amount. Thus, the whole capital of the Bank of England is lent to the Government, and to that extent the Bank is authorised to issue notes, theoretically founded on gold, but really on the security of the State. Any notes to be issued in excess of this sum of £14,650,000, must be represented by gold and silver coin and bullion, the proportion of silver to be only one-fourth of the whole amount of the metallic security. The Notes held in reserve, in the Banking Department, must always be equal to the differ * In consequence of the National Provincial Bank of England having commenced London business, and thereby relinquished the right to issue notes, an Order in Council has been issued [February, 1866] authorising the Bank of England to increase its issues by £350,000, making the total issue authorised £15,000,000. K |