ence between the amount of Notes in circulation, or held by the Public, and the sum of the Credit Issues added to the Bullion in the Issue Department.

By this means it was proposed, by the Act of 1844, to secure the convertibility of the Bank of England Note, an object manifestly accomplished.

The Credit Issue of Bank of England Notes to the amount of £14,650,000, is a simple contrivance to save the Government from paying an old debt to the Bank of England. It would have been more simple and much wiser if the Government had paid its debt, and left the Bank in possession of its capital.

The other arrangements between the Government and the Bank of England are matters merely of convenience, for insuring the punctual payment, half-yearly, of the dividends to the Creditors of the Public Debt. As everybody is perfectly well satisfied with that part of the arrangement, nothing further need be said about

it.

The result of all this is, that the Bank of England has no actual capital whatever in possession, but only a claim upon the Government for it; and the effect of all this is that, if the Bank should have occasion to call in its capital for the payment of its notes, issued on the credit.

of this capital, the Government would be bound to meet the call, and to pay it in Bank of England Notes, or in gold coin; or the Bank would have to sell the Government Securities and buy gold to answer the call.

But, for these credit issues there is no danger to the Bank of England or to the Government. Nor can there be any difficulty in the Government paying this debt to the Bank of England.

Since the year 1844, to the present time, the total amount of Bank-notes in circulation has never been so low as £30,000,000, and the present average may be taken at about £40,000,000.

During the same time, the amount of Bank of England notes in circulation has never been so low as £16,000,000, and the present average may be taken at £21,000,000.

During the same time, the amount of Banknotes in circulation in Ireland has never been so low as £3,000,000, and the present average may be taken at about £5,000,000.

During the same time, the amount of Banknotes in circulation in Scotland has never been so low as £2,000,000, and the present average may be taken at about £4,000,000.

Thus, it is evident that, if the Bank of England had issued £16,000,000, instead of £14,000,000, of its Notes on Government Securities, the whole

of the £16,000,000 would have remained in constant circulation as safely as the £14,000,000 has remained in constant circulation.

It is also evident that, as the issue of the Country Banks diminished, the credit issues might be safely increased in the same propor

tion.

The lowest amount of Bank of England notes in circulation for the last 20 years and upwards was £16,736,000, on the 16th December, 1848, and the total amount of bank-notes in circulation in the United Kingdom on that day was £30,872,782.

The total amount of gold coin and bullion. in the Bank of England on that day was £14,790,000, and the total amount of coin and bullion held by the Bank of England, and the Scotch and Irish Banks on the same day was £17,444,857, and the minimum bank-rate of discount was 3 per cent.

The highest amount of Bank of England notes in circulation, for the last 20 years and upwards was £25,075,000, on the 6th August, 1853; and the total amount of Bank-notes in circulation in the United Kingdom on the same day was £40,684,940.

The total amount of gold coin and bullion in the Bank of England on the same day was

£17,757,000; and the minimum Bank-rate of discount was 3 per cent.

The ordinary amount of coin and bullion in the Bank of England may be taken at about £15,000,000, the average amount of bullion in the Bank of England from the year, 1849, to the year, 1863, both years inclusive, being £15,171,902.

The ordinary amount of Bank of England Notes in circulation may be taken at £21,000,000, the average amount of Bank of England notes in circulation from the year, 1849, to the year, 1863, both years inclusive, being £20,970,054.

The ordinary amount of the whole Bank-note circulation of the United Kingdom may be taken at about £40,000,000.

The lowest amount of gold and silver coin and bullion in the Bank of England, since the year 1844, was £6,745,354, on the 25th October, 1847, the period of the great money-panic.

The minimum Bank-rate of interest then was 8 per cent.

The following Table will show the fluctuations. in the Bank of England minimum rate of discount from the year 1857 to the year 1864, both years inclusive.