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Dunstan Times, Issue 223, 3 August 1866, Page 3

EXTRAORDINARY A.PPEAI BY A PARLlAmentray Candidate :-—M r Faulkner, the "Muscular Christanity" candidate for Nottingham, addressed a meeting in the market place, and made the following appeal in the course of his speech :—"Ye poets, ye butchers, ye sons of butchers, and if, like Kirke White, you possess hearts pregnant with celestial fire : ye mute inglorious Mil tons: ye Cromwells, guiltless of your country's blood, give me a welcome to Nottingham." Taking a sovereign out of his pocket, he said, "this is the God you adore, your faithful unchangeable friend." which was followed by cheering, and the remark " this is Nottingham to the life." Some idea of the value of property in Melbourne may be gathered from the fact that two Government allotments, with frontage of 132 feet each to Collins-street east and Flinders-lane, were sold and rea Used £40,000. The Bank of Englakd, its Origin and Agency in Commercial Panics.—Just at the present moment a few facts relative to the history of the Bank of England, its origin and agency in commercial panics may prove acceptable. The Bank of England, in Threadneedle-street, is the great monetary institution of the country, and although it is engaged in the performance of public functions, it is not under Government control. Mr William Paterson, a Scotch gentleman, was its projector, and in 1694, William 111 granted a charter. From that time it has been in operation as the Government Bank, its original promoters in the same year obtaining an act enabling them to take subscriptions to the amount of £1,200,000 towards aiding the Government in carrying on the war with France. The interest to be paid was 8 per cent., and £4,000 per annum was allowed for management. The subscription was raised in ten days, and the subscribers incorporated under the style and title of " The Governor and Company of the Bank of England." The Bank has been more than once in difficulties, as in war time the Government draws the bullion from, it and in times of bad harvest bullion goes abroad for many necessary pur-

poses. In 1696 it suspended payment of its notes, which .were quoted at 14 discount. In 1707 tie Uovtiummt, by the Bank Restriction Act, forbade its paving its notes in gold ; and this re- trictirai w continued until 1819 (P.el's Til); i: 1826 the Government aiiJiiriised it t< issue temporary £1 notes, to meet th-. panio, and in 1847 to'exceed its issues, but this authority was not acted upon by the Governors. Originally the notes of the Bank were for large, and sometimes irregular amounts, paid by instalments, but in 1759 the limit, which had been £2O, was brought down to £10; and in 1793 to £5. From the issue of notes, allowances for paying the interest on the national debt, profits on bullion, and ordinary lanking sources, the Bank derives its income. In 1695 the dividend was 9 per cent., Lut this in the last century was seldom more than 5 per cent., but from the time of the French war it has risen, and is now kept at 7 per cent., with bonuses occasionally. tPb uphold this dividend the Bank has Always a reserve called "The "Rest." The stockholder* choose the court, which consists of a governor, deputy governor, and 24 'directors, who assemble in the "bank parlour," have undisturbed management of the affairs of the corporation, as it is a rule with the proprietors in their quarterly courts not to discuss any details of the business. In cases of commercial alarm, similar to the present one, negotiations for the relief of the money market, and for mitigating the effect of sudden panics, are carried on between the First Lord of the Treasury or the Chancellor of the Exchequre (or both conjointly) and the Governor and Deputy-Governor of the Bank, who explain the nature of the crisis to the Ministers, and state the course they have pursued, and the position in which they are placed, as by. the regulations of the last charter act (sir Bobert Peel's 7 and 8 Victoria, cap. 32) provision is made that the note issuing and banking functions of the Bank shou'd be divided. The Bank is, by this act, allowed to issue notes, first upon the security of the Government debt, and, further, upon any amount of bullion in its vaults, and lience when a crisis arises in consequence of which the "reserve fui d " materially suffers, or is likely to be reduced to the lowest ebb, and thus sti 1 further to paralyse the money market, disturb the public mind, and eventually to operate most -calamitously to every description oftrade and industry, theßanH directors may extend their discounts and advances upon approved securities by issuing notes up to a certain limit fixed by the statute, but not without imposing a high rate of inteixsi, the Government possessing the power, should they see fit, of recommending an increase in the amount subsequently,