Charlotte M. Yonge - "The Prince and the Page"

John Lothrop Motley - "History of the United Netherlands, 1586"

John Lothrop Motley - "The Life of John of Barneveld, 1618 19"

Gilbert Parker - "The Judgment House"

New Philadelphia Book Publisher Highlights Local Talent
Book and Publishing News from Publishers Newswire(tm)

Looking for Child to be on Cover of a New Book, 'The Model Child'
PHILADELPHIA, Pa. -- The Philadelphia literary world will celebrate the launch of two new players today, April 10th: Kay Square Press, a new publishing company focused on Philadelphia-area artists, their stories, and their art; and Kay Square's first release, 'With the Rich and Mighty: Emlen Etting of Philadelphia' (ISBN: 978-0-9815129-0-7), a critical biography by Kenneth C. Kaleta.

FlatSigned Press Alleges Don Imus Remarks Damage Legacy of President Gerald R. Ford
NEW YORK, N.Y. -- Nathan Yungerberg, an accomplished model scout and professional child photographer is launching a nation-wide casting call to find the cover model for his highly anticipated book release, 'The Model Child: A Parents Guide to the Child Modeling Industry' (ISBN: 978-0-9817018-0-6).

Books: Lombard Street: A Description of the Money Market

W >> Walter Bagehot >> Lombard Street: A Description of the Money Market




Mr. Hyam said that before the question was put he wished to offer a
few observations to the court. He believed that the statement of
accounts which had just been laid before them was perfectly
satisfactory. He also thought that the directors had done their best
to assist the commercial classes throughout the late monetary
crisis; but it appeared to him at the same time that they were in
fault in not having applied at an earlier period to the Chancellor
of the Exchequer for a suspension of the Bank Act. It was well known
that the demand on the Bank was materially lessened in the earlier
part of the day, in consequence of a rumour which had been
extensively circulated that permission to overstep the limits laid
down in the Act had been granted. That concession, however, had only
been made after the most urgent representations had been addressed
to the Chancellor of the Exchequer at a late hour in the night, and
if it had then been refused he felt persuaded that the state of
affairs would have been much worse on the Saturday than it had been
on the Friday. The fact was that the Act of 1844 was totally
unsuited to the present requirements of the country, which since
that period had tripled or quadrupled its commerce; and he was sorry
to know that the measure seemed to meet with the approval of many of
their directors. Any one who read the speeches made in the course of
the discussion on Mr. Watkins' motion must see that the subject
called for further inquiry; and he trusted that the demand for that
inquiry would yet be conceded.

Mr. Jones said he entirely dissented from the views with respect to
the Bank Act entertained by the hon. proprietor who had just
addressed the court. In his opinion the main cause of the recent
monetary crisis was that, while we had bought 275,000,000 L. worth
of foreign produce in the year 1865, the value of our exports had
only been 165,000,000 L., so that we had a balance against us to the
amount of 110,000,000 L. He believed that the Bank acted wisely in
resisting every attempt to increase the paper currency, and he felt
convinced that the working classes would be the people least likely
to benefit by the rise in prices which would take place under such a
change.

Mr. Moxon said he should be glad to know what was the amount of bad
debts made by the Bank during the past half-year. It was stated very
confidently out of doors that during that period the directors had
between 3,000,000 L. and 4,000,000 L. of bills returned to them.

The Governor of the Bank.--May I ask what is your authority for that
statement? We are rather amused at hearing it, and we have never
been able to trace any rumour of the kind to an authentic source.

Mr. Moxon continued--Whether the bad debts were large or small, he
thought it was desirable that they should all know what was their
actual amount. They had been told at their last meeting that the
Bank held a great many railway debentures; and he should like to
know whether any of those debentures came from railway companies
that had since been unable to meet their obligations. He understood
that a portion of their property was locked up in advances made on
account of the Thames Embankment, and in other ways which did not
leave the money available for general banking and commercial
purposes; and if that were so, he should express his disapproval of
such a policy. There was another important point to which he wished
to advert. He was anxious to know what was the aggregate balance of
the joint stock banks in the Bank of England. He feared that some
time or other the joint stock banks would be in a position to
command perhaps the stoppage of the Bank of England. If that were
not so, the sooner the public were full & informed upon the point the
better. But if ten or twelve joint stock banks had large balances in
the Bank of England, and if the Bank balances were to run very low,
people would naturally begin to suspect that the joint stock banks
had more power over the Bank of England than they ought to have. He
wished further to ask whether the directors had of late taken into
consideration the expediency of paying interest on deposits. He
believed that under their present mode of carrying on their business
they were foregoing large profits which they might receive with
advantage to themselves and to the public; and he would recommend
that they should undertake the custody of securities after the
system adopted by the Bank of France. In conclusion, he proposed to
move three resolutions, for the purpose of providing, first, that a
list of all the proprietors of Bank stock should be printed, with a
separate entry of the names of all those persons not entitled to
vote from the smallness of their stock, or from the shortness of
time during which they held it; secondly, that a copy of the charter
of the Bank, with the rules, orders, and bye-laws passed for the
good government of their corporation, should be printed for the use
of the shareholders; and thirdly, that auditors should be appointed
to make detailed audits of their accounts.

Mr. Gerstenberg recommended that the directors should take some step
for the purpose of preventing the spread of such erroneous notions
as that which lately prevailed on the Continent, that the Bank was
about to suspend specie payments.

Mr. W. Botly said he wished to see the directors taking into their
consideration the expediency of allowing interest on deposits.

Mr. Alderman Salomons said he wished to take that opportunity of
stating that he believed nothing could be more satisfactory to the
managers and shareholders of joint stock banks than the testimony
which the Governor of the Bank of England had that day borne to the
sound and honourable manner in which their business was conducted.
It was mainfestly desirable that the joint stock banks and the
banking interest generally should work in harmony with the Bank of
England; and he sincerely thanked the Governor of the Bank for the
kindly manner in which he had alluded to the mode in which the joint
stock banks had met the late monetary crisis.

The Governor of the Bank said--Before putting the question for the
declaration of a dividend, I wish to refer to one or two points that
have been raised by the gentlemen who have addressed the court on
this occasion. The most prominent topic brought under our notice is
the expediency of allowing interest on deposits; and upon that point
I must say that I believe a more dangerous innovation could not be
made in the practice of the Bank of England. The downfall of Overend
and Gurney, and of many other houses, must be traced to the policy
which they adopted of paying interest on deposits at call, while
they were themselves tempted to invest the money so received in
speculations in Ireland or in America, or at the bottom of the sea,
where it was not available when a moment of pressure arrived.

Mr. Botly said he did not mean deposits on call.

The Governor of the Bank of England continued--That is only a matter
of detail; the main question is whether we ought to pay interest on
deposits, and of such policy I must express my entire disapproval.
Mr. Moxon has referred to the amount of our debts, but, as I stated
when I took the liberty of interrupting him, we could never trace
the origin of any rumour which prevailed upon that subject. As far
as it can be said to have ever existed it had its origin most
probably in the vast amount advanced by the Bank. It must, however,
be remembered that we did not make our advances without ample
security, and the best proof of that is the marvelously small amount
of bad debts which we contracted. It has never been a feature of the
Bank to state what was the precise amount of those debts; but I
believe that if I were to mention it upon the present occasion, it
would be found to be so inconsiderable that I should hardly obtain
credence for the announcement I should have to make. I am convmced
that our present dividend has been as honestly and as hardly earned
as any that we have ever realised; but it has been obtained by means
of great vigilance and great anxiety on the part of each and all of
your directors; and I will add that I believe you would only
diminish their sense of responsibility, and introduce confusion into
the management of your business, if you were to transfer to auditors
the making up of your ac counts. If your directors deserve your
confidence they are surely capable of performing that duty, and if
they do not deserve it you ought not to continue them in their
present office. With regard to the supposed lock-up of our capital,
I must observe that, with 14,000,000 L. on our hands, we must
necessarily invest it in a variety of securities; but there is no
ground for imagining that our money is locked up and is not
available for the purpose of making commercial advances. We advanced
in the space of three months the sum of 45,000,000 L.; and what more
than that do you want? It has been recommended that we should take
charge of securities; but we have found it necessary to refuse all
securities except those of our customers; and I believe the custody
of securities is becoming a growing evil. With regard to railway
debentures, I do not believe we have one of a doubtful character. We
have no debentures except those of first-class railway companies and
companies which we know are acting within their Parliamentary
limits. Having alluded to those subjects, I will now put the motion
for the declaration of the dividend.

The motion was accordingly put and unanimously adopted.

The chairman then announced that that resolution should be confirmed
by ballot on Tuesday next, inasmuch as the Bank could not, under the
provisions of its Act of Parliament, declare otherwise than in that
form a dividend higher than that which it had distributed during the
preceding half-year.

The three resolutions proposed by Mr. Moxon were then read; but they
were not put to the meeting, inasmuch as they found no seconders.

Mr. Alderman Salomons said that their Governor had observed that he
thought the payment of interests on deposits was objectionable; and
everyone must see that such a practice ought not to be adopted by
the Bank of England. But he took it for granted that the Governor
did not mean that his statement should apply to joint stock banks
which he had himself told them had conducted their business so
creditably and so successfully.

The Governor of the Bank said that what he stated was that such a
system would be dangerous for the Bank of England, and dangerous if
carried into effect in the way contemplated by Mr. Moxon.

Mr. P. N. Laurie said he understood the Governor of the Bank to say
that it would be dangerous to take deposits on call, and in that
opinion he concurred.

Mr. Alderman Salomons said that he, too, was of the same opinion.

On the motion of Mr. Alderman Salomons, seconded by Mr. Botly, a
vote of thanks was passed to the Governor and the directors for
their able and successful management of the Bank during the past
half-year, and the proceedings then terminated.