When Lord Althorp brought forward his measures for renewing the Bank of England Charter in 1832, he also proposed to introduce others for a better regulation of country and joint-stock Banks. They were,

"1. That Government should have the power of granting charters to joint-stock Banks issuing notes beyond sixty-five miles from London, and to that every one who hears it cannot but wish it true. An old customer, it is said, once applied to him for assistance under very adverse circumstances; the partners were against, but the Baronet for granting it, and he carried his point, advanced liberally, and pulled his customer through all his difficulties. The firm thus opportunely preserved afterwards realized great wealth, and the head of it, when he died, bequeathed, it is said, 50001. a-year as a proof of his gratitude to Sir R. C. Glyn. joint-stock Banks within the sixty-five miles, provided they issued only the notes of the Bank of England.

"2. That the joint-stock Banks which issued notes should be required to pay up one-half of their capital, and all the shareholders be answerable individually to the full extent of their property.

"3. That the joint-stock Banks which did not issue their own notes, should be required to pay up only one-fourth of their capital, and the shareholders be responsible only to the amounts of their shares.

"4. That the Government, when granting the charter should have the power to decide whether the amount of capital subscribed was a sufficient amount for the place in which the Bank was situated.

"5. That each private Bank should be required to send a statement of its accounts to the Government in London, as a strictly confidential paper; which was not to be published in a separate form, but the accounts being added together, the total result should be given to the public periodically.

"6. That to enable the Government to know the total amounts of notes in circulation, each private Bank, as well as each joint-stock Bank, should be compelled to compound for the stamp-duties."

The Bank of England proprietors agreed, at a subsequent meeting, to the measures which had a reference to them; but the country Bankers felt and expressed great dissatisfaction, and memorialized Earl Grey, the first lord of the treasury, and Lord Althorp, the chancellor of the exchequer, upon the subject. Their opposition caused a postponement of the proposed measures, at which no one felt much regret, and no interest, I apprehend, sustained any loss. The plan was neither statesmanlike nor enlarged, and but few salutary effects, such as the circumstances of the case demanded, could have resulted from it.

The degree in which the Government of that period was disposed to adopt the advice of joint-stock Bankers themselves in this matter, will be seen by comparing the following "Improvements, suggested, after much consideration, by the directors of joint-stock Banks at Manchester and Liverpool, to the Chancellor of the Exchequer, comprehending their views of the alterations that ought to be effected in the present law relating to such establishments, before they would deem it advisable to issue paper-money of their own:" "1. That joint-stock Banking companies shall consist of at least 100 proprietors; of whom not fewer than twenty shall have paid up at least 1,000l. each.

"2. That such companies shall have a paid-up capital of at least 100,000l., and a subscribed capital of not less than 500,000l.; and that all proprietors of such companies shall be individually answerable for all the obligations of the company.

"3. That such companies shall make and execute a deed of settlement, stating the number of proprietors, the amount of subscribed and paid-up capital, of each respectively, the names and designation of the directors and public officers, and all the conditions of the partnership; which deed shall be sent to a public registry before it shall be lawful to commence business as a joint-stock Banking company.

"4. That such companies shall not establish branches at a greater distance than twenty miles from the parent Bank; nor shall such be empowered to issue notes or bills other than those of the parent Bank, such branches being intended to act only as discount and deposit offices.

"5. That such companies shall be under the government and control of boards of directors, to be annually chosen by the proprietors, consisting of not fewer than seven.

"6. That reports be made annually by the directors of such companies, exhibiting a corrected list of the proprietors, with the amount of stock held by each, the amount of capital at the time, and a full and fair account of the affairs of the company; which report shall be sent to a public registry, and be accessible to the public on the payment of one shilling.

"7. That such companies shall have the power of making their notes and drafts, of whatever amount, payable either at their respective localities or in London, or in both places, but not elsewhere; and when payable in London, either at a London Banker's or at an office of the company.

"8. That such company shall have the power to draw Bank post-bills, made payable to a party other than the party from whom the value is received, as the Bank of England.

"9. That such company shall have the privilege of using the same description of engraving and water-marks, for the prevention of forgery, as the Bank of England has or may have secured to it.

"10. That such company shall have the power to compound for stamps on the same terms, pro rata, for the business done, as the Bank of England has.

"11. That assignees and trustees who may be shareholders in such companies, shall have the power to deposit the trust-moneys in a joint-stock Bank, notwithstanding their having a proprietary interest in the company.

"12. That transfers of shares in the stock of such company be allowed to be made on one-shilling stamps.

"13. That all Banking-houses not conforming to the proposed law, be held by law to be private Banking-houses, of whatever number of partners they may consist.

"14. That while compliance with the preceding conditions be enforced by Parliament on every joint-stock Bank that shall be established, a specific license or charter shall be requisite in each particular case, in order that Government may exercise its discretion on every application, in determining the number of proprietors and amount of paid-up and subscribed capital which may be requisite beyond the minimum prescribed by law, to give full security to the public, and a reasonable protection to joint-stock Banks previously established."