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314 THE ¦ ¦X& ADEB. [Na, 467, March ^ 18...
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JOINT-STOCK BA^KS.—INTEREST ON DEPOSITS....
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TEADE OF JANUARY. The trade of tlie firs...
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RAILWAY INTELLIGENCE.
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At a meeting of the East Kent Railway Co...
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1'no.TKOTEn Railway,—Tho pms'i>erlu-s »'...
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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
Additionally, when viewing full transcripts, extracted text may not be in the same order as the original document.
314 The ¦ ¦X& Adeb. [Na, 467, March ^ 18...
314 THE ¦ X & ADEB . [ Na , 467 , March ^ 1859
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Joint-Stock Ba^Ks.—Interest On Deposits....
JOINT-STOCK BA ^ KS . —INTEREST ON DEPOSITS . It is of great importance to avoid mistakesas to the source of the success of the London joint stock baiiks , and therefore we must endeavour to show the incorrectness of a statement made last week by our respected contemporary , the Economist " The great feature , " it said , " which distin"Tiished the business of these banks from the private banks and the Bank of England was the practice which they introduced for the first time
into London of allowing interest on the deposits , and at tbe same time without ( as is the case with country banks generally , which allow interest ) charoing : a-commission for . business done . They , however , made a distinction between the balance of accounts currently operated upon from day to day , and deposits placed with them for specified periods of time . That these banks , in thus modelh ' ng tlieir business , supplied a great want in the "business of London is best shown by the wonderful success which has attended then- operations . "
Now , in opposition to one part of the statement , we must mention that as early as 1645 " the goldsmiths or bankers of London began to receive the rents of gentlemen ' s estates , and to allow them , and others who put money into their hands , some interest for it if'it remained but a single month in their ' hands , or even a lesser time . This was _ a great allurement for people to put money into their hands , which would bear interest till the day they wanted & . "—( '' Annals of Commerce , " 1645 . ) " In 1665 ^ the money , " it is recorded , " came so fast into the Lands of bankers in London from people to whom they paid a moderate interest for the same ,
sums , allowing interest on running accounts when the deposits were large , and transacting banking business for a regular charge—they extended , ma manner totally unprecedented for its rapidity , the business of banking . Not hundreds , but thousands of people in the metropolis have since then been induced to keep a banking account who never before thought of it . The partial freedom , of which their establishment was the consequence— .-for our banking business is yet but partially free--called into iife an immense mass of new transactions . They took nothing from private banks , but probably in ^ creased their business . Their competition
cerof trade , and fostered amongst traders excessive greediness and impolicy , like those of the Bank .
tainly made the private banker more cautious ; and , with the exception of the dishonest proceedings of Sir J . B . Paul and Co ., since they were established , there have been no failures amongst the London banks like those of the Rowland Stephensons and Poles of former periods . Banking accommodation was urgently wanted in the metropolis , where it was far less than in Scotland . They supplied the want , but not by first introducing the practice of allowing interest on deposits , though they Continued and extended this old practice ; and the small extension of freedom by ¦ which they were allowed to exist has been as advantageous to the public as to the banks
themselves . ; . Differing from our contemporary on the historical point : mentioned , we must express our cordial acquiescence in his opinion that the practice of allowing interest on deposits lias not fostered un-¦ wise speculation ;; The joint-stock banks arc under no obligation to take money which they _ do not want , or to allow interest oil money when they cannot use it . The managers of them are persons intimately acquainted with all the means of employing capital to advantage , and they , can , as we have' already stated ^ procure a consider able profit on an aggregate of small sums , which the individual owners eoiild not possibly get . By at all times affording a ready means of obtaining interest for , money , though occasionally the rate be
low , individuals are prevented froin engaging in unwise speculations , or investing their ' s pare cash in bubble eomrjanies . The success of these banks —continued now for several years , and to the latest period , through some times of severe ' trial , like those of 1847 and 1857—is as complete a proof as can be required , that they have conducted their own business ably , and have not lent themselves to encourage unwise speculations . The bank which did that to the greatest extent was the Western Bank of Glasgow , which had a large paid-up capital , a great multitude of rich proprietors to fall back on , and consequently had reckless managers . Between it and the London jointr-stockbanks the chief difference is found in the management . All equally allowed interest on deposits , but the latter " had pnly a small capital paid up , find relied for success exclusively on their integrity and careful conduct .
This brief history supplies another illustration , which has hitherto escaped notice , and which , in fact , is only brought clearly to light by the success of the johit-stock banks , of tho vast injury which the legislature vuitliinkhif ? ly inflicted on the nation by the monopoly it . gnvo to tho Bank of England . When the IJiuik wan thoroughly assured against competition by Iho la \ V j money naturally becamo redundant in itr ) coffers , ana being , as its whole history hIiowm , oh greedy of gain as any trader , while it um > nu <> u . sly believed that it would increase its wonhli by
iv-Aising its customers any uharo of its * iiroffta , it rofu « ed to allow interest on deposits . It de | uirtuddriven to this qoui'so by its monopoly— -from the ulil nn < l really natural and juufc practice of UuuUuivt . Wo now avo thoi'ouglily convinced by tho iuistructlvo examplo of the joint-Btbek bankn , that ha monopoly and ita policy wuro an injurioiiH to its own mtorostsns to ' tho' interests of ( ho nation , Tlio growth of wealth was impodod ; and aa on it , depends , tho inoroaso of population , the monopoly Htilled to some extent tho continual growth <» i Honioty . Wo now see olenrly , w minor cohhufjuieuces , that tho monopoly impedod the , lability
that all the public , demands fell short of employing their whole cash . This made" them run into the business of lending money on private pawns / ' Scc . ^—( Ibid . ) So in 16 . 70 * . " we read of men , as soon as they can make up 50 / . or 1 O 0 Z ., sending it to the goldsmith ' or banker , ' allowed'interest for a time to people who brought their money to them . "—( Ibid . ) The Bank of England adopted the same practice ; and in . 1698 , soon after it was established ^ it was recommended that the Bank should be restrained by law from allowing interest Dn running cash , for the case of having 3 or 4 per cent . " was supposed to be a continual bar
• " -m . * •¦ - to . — —i t , . 1 . T" * "II _ . _ 1 to industry . Again , in 1703 , " the Bank borrowed a large stira , 'bearing interest , in order to keep up its credit . "—( Ibid ) Although the Bank of England—after all other companies composed of more than six persons were prohibited from borrowing money on i . ntei'est for less than six months ^—ceased to pay interest on deposits , no person can suppose that this practice ceased altogether . arbongst private banks iii London . In faet , from that period till our Own tuiic , bankers in London have token in money on sale , and have used it to discount bills ; so that
the practice , described by ' our contemporary as "introduced into the metropolis for the first time" by the joint-stock banks , has existed more or less for upwards of two centuries . Never since that time has it censed to be avowed b y Scotch banks arid the provincial banks of England , and never has it ceased to bo the practioo of discounting bankers and others in London . What the jointstock banks really did in this respect was to avow their intention to allow interest on deposits and to allow it on small sums , such as the private banker would not think of receiving on Biieh a condition .
That tho practice till they woro established was only currierl on almost seoretly , nncl on a small eoale , - \ vixh one of tho most injurious consequences of the JLlunk monopoly ; ana the great success of tho joint- ( Stock banks was undoubtedly partly due to tho rivalry they introduced of that cnornjoxis establishment . At the Hiinio time that tho joint-stock batiks allowed intoroft on small sums deposited with them , they also unnouncod tho intention of allowing intorost on currant account ^ , and of trnnsnoling bunking bubinoNs on commission for those persona who xmght iloturo to have tho advantngo'of banking without ahvnya poistiossing a eullieiont sum on hand to make koupmg their accountH reimmerathig to . a banker . By thoso means—allowing deposits on small
Teade Of January. The Trade Of Tlie Firs...
TEADE OF JANUARY . The trade of tlie first montli of 1859 answers all expectations . The value of the exports exceeded those of 1858 by 2 , 371 , 8 23 Z ., and those of 1857 by 535 , 318 ^ ., the increase being spread - . over the bulk of the articles exported , but especially great in the cotton and woollen manufactures . Most of the articles imported , too , have increased . But the only index we have to the total is the sliipping entered with cargoes , which was 546 , 761 tons in January , 1859 , against . 463 , 975 tons' hi January , . 1 8 . 58 ^ and 472 , 535 tons in January , 1857 . Our trade appears , accordingl y ^ to have fully , recovered from the late convulsion , and to promise a great extension in 1859 . Other countries must be in a similar condition , and all , therefore , ' may ¦ ¦ naturally be peculiai-ly sensitive to any political event wliich interrupts this pleasant prospect . Sovereigns and politicians ofall kinds -should be careful what they do , for they cannot disturb , the prosperity of society without endangering their own existence .
Railway Intelligence.
RAILWAY INTELLIGENCE .
At A Meeting Of The East Kent Railway Co...
At a meeting of the East Kent Railway Company on , Monday , a report was presented anil carried ,, setting forth' that the traffic receipts up to December , 1858 , were 9 , 320 / ., leaving , after tteihu-tijigexpenses , a balance of 1 , 4582 .. It was also stated that the entire line would be opened on the 1 st of October , 1800 , and it was proposed , to alter . the title oft lie line te-tlie . London , Chatham , and Dover . Railway . At the half-yearly ¦ meeting of the ^ lid-Kent Railway Company , a dividend of 2 s . Od . per share for the half-year was declared . The ordinary half-yearly meeting of tlie London , Tilbury , and Southend Jyxtension , . '¦ was held on Monday . The report was adopted , and aficr a . short discussion , the resolution empowering the directors to raise the 10 , 000 Z . upon debentures , for improvements on the line , was carried without opposition .
At the meetingof tlieMetropolitiui JJaihvay Co ., ^ m Pearson entered into a long- explanation of the great ; advantages which would accrue from the establishment of this line , not only to the general public , bat to those railway companies who had expressed their willingness to support the undertaking . Tho report was adopted , accompanied by a resolution to the effect that the directors bo authorised to proceud with the bill for . deviating the line , or for the bill to abandon the undertaking , as they might iind it expedient after the lGth March .
At the half-yearly meetings of the following companies , dividends were declared ns under : —I Jos ton and Sleaford , 2 s . Gd . ; North and South Western Junction , 3 s . 3 d . ; Hcrolbrd , Kosfl , and Ulomvstor , 4 s . ; South Yorkshire and Uiver Dun , jn-r i-i'iit . upon guavanteed shares and 2 i u ] k » v ordinary HUaiAi Whitehaven and Jfurness , 5 J per cent , on the prwurence shares , and 3 s . on the oriyiiml « huiv « ; >> hitehaven-Junction , 10 s . per shurc ; Wurrinftton mia Btockport , 3 J per qent . ; Norfolk , ' Mk < id . . pel- irnt . An ojctraordiqary general . mootinn < if the tef lon RuiUyny Company is called for the 17 th insinni , o giv ' c i > o \ vor 3 to tho directors with vetereiuv to mo receipt of rrtpnoy in anticipation oi' mils , ami ° other pointy .
1'No.Tkoten Railway,—Tho Pms'i>Erlu-S »'...
1 ' no . TKOTEn Railway , —Tho pms'i > erlu-s »' t i . uo r « lo of Wight Railway and Tckvnipli ( . ' omi ^ 'iy '" isaued . This railway is intended for i he iiw 1 "" 1111 ' * tiiyi of the towns and villages of ll \>^' , l > rti < in > h » ttandown , Shanklin , ond Vuntnoi ; . on il"' ^\ " sido of tho island . It ^ vill bo about in lull " . length , and is to bo economically cnn . sinirii' . i , « ' » aliiulu linq of rnile . Tho caj > ital I * Hxed m '• ' "" ; in allures of 10 / . oooh , v /\ th a donusit « i l / .. oi sM' »' one moiety in to bo roturnod in thucv .. nt nl i " L' A ' - u not being obtainod . FllKNC'll li . UU'AYS .- TllO W «) l'l < h I ' . M- Ih j' » " » - fitrmHinn of thotonninua of the- N'iiuviuii'H ' /!'"'•; havo boon commoneod near ( Uoi'lm'i' < U' I" 1 " 1 " 1 ' ' M'lio houses at tho ontrance of tlm Hu < ' di' \ . y > " » » l being taken dbwh to make iyi \ y U > r tin- n » i » mn"'i- ' " of tliu viaduct for tho'Vineeinii'H UiiIImh . v . ^ rails havo boon placocl along ihc i-mliv "" I" !"'' uuw railway'in process of conwiruction du » i <
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Citation
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Leader (1850-1860), March 5, 1859, page 26, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/cld_05031859/page/26/
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