No. 1 needs no explanation, as that is simply the bank circulation. No. 2 is the debt due the bank from the government, and against which the bank is allowed to issue circulation.

1 Pratt declares that "The Bank of England discount rate sounds the key-note of the international monetary situation."

No. 3. Through the retirement of the banks issuing notes at the time of the Bank Act of 1844, the Bank of England has been able, under the provisions of the Act, to issue new notes against securities to the amount of £4,450,000, which brings its total issue up to £18,450,000.

No. 4. In the statement above there is shown an issue of £48,612,645 in notes. If we deduct from this issue the £18,450,000, notes authorized to be issued against the government debt and other securities, we find the amount of notes uncovered - unsecured - to be £30,162,645, which is exactly the amount of gold coin and bullion on hand in the Issue Department.

No. 5 represents the proprietors' advances in cash to the Government. This is the bank's capital the same as that of any other institution.

No. 6. Reserve fund and undivided profits. This is not allowed to fall below £3,000,000, the excess being considered available for dividends.

No. 7. Deposits made by the Government.

No. 8. Deposits of banks, corporations, firms, and individuals.

No. 9. Bills of exchange, etc.

No. 10. Government Securities needs no explanation.

No. 11. Same may be said of this.

No. 12. Bank notes.

No. 13. Needs no explanation, other than to say that these, together with the notes, constitute the real reserve of the bank held against deposits, and any changes are watched for with keen interest.