In addition

rearytoey Sun May 08, 2011 9:29 pm

In additionIn addition to the interest on its loans and discounts, the bank receives an annual allowance from the government, for its management of the public debt. Its dividends for the last hundred years have varied from h to per cent. Its profits were greatly increased during the suspension; and, what is remarkable, the chief source of those extra profits arose from its advances of its own irredeemable paper, in exchange for the exchequer bills issued by the government. The paper of the bank, which had been justly preferred to that of the government, because it was readily converted into coin, continued to receive the same preference, when it no longer had any other superiority than what was derived from the illusory influence of habit on opinion.The average condition of the bank for three yearsfrom to inclusive may afford a fair specimen of its ordinary operations Tory Burch Flats and ofLet us now compare the condition of the bank of England, as exhibited by the preceding statement, with that of the banks in the United States, in January, But, in making this comparison, it will be proper to add the surplus, or rest, to the capital of the former, because it makes a corresponding addition to the means of the bank, in proportion to its amount. With this addition, the efficient capital, for those three years, must be estimated at the capital, yet both its issues and its loans are also proportionally greater; so that it is, at once, less exposed to the risk of stopping payment, and it is more efficient in the two great functions of supplying a cheap currency, and of accommodating the public with loans. It owes its superiority in these respects partly to its exclusive privileges and its connection with the government, and partly to its having originally possessed a real capital of gold and silver; whereas, much of the bank capital „ in the United States is, as we have seen, merely nominal, and has no other foundation than credit. Joint-stock banks. In consequence of the frequent failures of the private banks, and the general distress and embarrassment such failures produced, the restriction of banking copartnerships to six persons was repealed by the legislature in ; whereupon, various large associations for banking were formed; and their number has been, since that time, gradually increasing. They have not, however, answered the expectations of the public; and Tory Burch Shoes they were thought, by their excessive issues, to have greatly strengthened, if they did not produce, the wild spirit of speculation which prevailed in England in , and which had no little influence in cherishing the same Tory Burch Outlet spirit in the United States.