According to Mr Allardice's statement, the annual income, or profits of the bank, arise from the interest of the permanent debt received from government ; the allowance for managing the public debt ; the al lowance for receiving the contributions to loans, and paying. the dividends on the public funds ; the allow ance for temporary advances on exchequer bills, &c.: the interest of stock held by the company ; the dis counting of mercantile bills of exchange, and other less important sources ; making altogether about 4'1,4.37,752 sterling, from which fall to be deducted the interest of the capital stock of x11,642,100, and all losses, charges, and expenses of management.
By the original act which constituted this bank, as -well as by the various subsequent statutes, numerous privileges are conferred on the governor and com pany of the Bank of England ; and salutary restric tions interposed for the protection and welfare of the institution. They are authorised to purchase and retain lands, &c. with all the powers incident to other corporations ; they are restricted from trading with any of their effects in goods or merchandise of any kind ; but are permitted to deal in bills of exchange, and in buying or selling bullion, gold, or silver, or, in selling goods mortgaged to them, if not redeemed within three months after the time stipulated for such redemption ; or such goods as shall be the produce of the lands belonging to the corporation.
The stock of the bank is accounted a personal, and not a real estate ; but goes to executors, and not to heirs. A devise of stock, therefore, is valid, if at tested by three credible witnesses. All contracts or agreements for buying or selling stock, must be re gistered in the books of the bank within seven days, and the stock transferred within fourteen after such contracts have been entered into, or otherwise they will not be effectual. They are allowed to call for such sums of money, from the proprietors, in pro portion to their respective interests, as a general court shall deem necessary ; and if such calls shall be re fused, it is lawful for the bank to stop the payment of the dividends of the defaulters until the same shall be made up. They are also empowered to borrow money under their common seal, or upon the credit of their capital stock, at such interest as they shall think fit, although the same may exceed the legal interest of the country. No body politic or corpo.
rate, or other persons united in partnership, above ' the 'lumber of six, can borrow money on their note payable sooner than six months, during the continu ance of the charter of this company, who are de clared to be a corporation, and to have the exclusive privilege of banking.
The character and security of the Bank of Eng land are permanently established by the many provi sions for its stability. But to ascertain the solidity of its bank-paper, or the reliance that the public may place in its engagements, it is only necessary to state, that value is received in security, or bills payable at a fixed time, for every note that is issued, so that there is always value in the bank equal to all the notes in circulation. This value consists of bullion or coin ; government securities payable for receipts, or at de terminate periods ; and bills of exchange with three solvent names, at dates not exceeding two months.
Since the first establishment of the bank, it has not sustained any serious loss. So certain is the payment of bills drawn and indorsed, that, in ordinary times, the arithmetical calculation of the chance of loss is only as one to three hundred thousand : a proportion so insignificant, that no injury is to be apprehended from such a cause. Were a run to be made on the bank, and the owners of notes to insist on payment in specie, the discounting of bills would be discon tinued, and consequently the whole notes in circula tion would return to the bank in two months, in pay ment of the advances to government and the bills of individuals. The bank, therefore, has it always in its power to call in its notes, merely by refusing to accommodate government, or to discount bills of change.
But the mercantile people of England have well grounded reason to place confidence in the paper of the bank ; and it must be highly gratifying to our national pride, to think, that bills of exchange can be obtained in any part of Europe for our bank notes, on the same terms as for specie.
The profits of the-bank are supposed to be greatly accumulating ; but as the directors are sworn to se crecy, it is only from circumstances, and the commu nications made by them to general courts, that we can conjecture as to that subject.