pressure without looking for help to the Bank of England. In some respects this would be a great advantage, as it would diffuse a sense of responsibility among bankers who are now, perhaps, too apt to think that they may safely keep but a small balance at the Bank of England themselves, relying on the Bank itself for assistance in a time of difficulty. But would the bankers themselves be prepared to meet the result? How would the Bank of England be likely to treat a deputation from Lombard Street, which, after having turned their backs on the Bank for perhaps several years, might come on any day like the Black Friday of 1866, with a message like this, "Our reserve is nearly exhausted, what can you do to help us?"

The

In 1847, 1857, and 1866, the power of suspending, or the actual suspension of the Bank Act, alone prevented great catastrophes. Imagine the Bank with a supply sufficient for its own needs, but not sufficient for those of its neighbours at such a time. Would the Bank have any object in desiring to press the suspension of the Act on a reluctant Government, with a Chancellor of the Exchequer, perhaps, absolutely ignorant of any kind of commercial business? The Bank might well hesitate at such a juncture. It might answer, "No, we have provided for ourselves, you have undertaken to provide for yourselves, carry out your own principles." Ultimately, the Government might yield to a strong remonstrance from Lombard Street alone, but Governments of all descriptions are greatly ruled by precedents, and the answer, "We have always been accustomed to hear from the Bank on these occasions," might cause delay, if not an absolute refusal. promoters of the new plan, must, if they desire to ensure greater stability, do more than they propose to do at present. They desire to combine security for the public with a certain amount of profit to bankers. If they endeavour to carry this out, they must do two things. They must set their faces against lending more than a definite and comparatively small part of the banking reserve, and further, they must provide a larger reserve than that which they propose at present. They must, in fact, and therein lies the difficulty, provide a sufficient reserve to meet not only any ordinary demands, but those which a crisis may cause. The troubles of 1847, 1857, and 1866, were surmounted by the suspension, or by the permission to suspend the Bank Act, that is, by pledging the resources of the nation on those occasions. If "Lombard Street" is prepared to face any storm that may arise without requiring this aid, then, and then only, it is strong enough to carry the proposed plan successfully through.

ANNUAL AVERAGES of the Deposits of the Bank of England, and of the Bills

Discounted by the Bank of England, during the Thirty Years 1844-73.

BARGAINS in stocks and shares that are transferable simply by
delivery from the seller to the purchaser, and which are called

"Securities to bearer," when done for money, are settled by the passing of the securities themselves, which are paid for on delivery. Bargains done for the settling-day are, however, to a great extent settled in a different way, and the mode adopted corresponds in a great measure to that used in settling bargains in registered stocks, so far as the bargains that intervene between the actual deliverers and takers of stock are concerned. That is to say, instead of the stock itself being passed between the several intermediate buyers and sellers until it reaches the ultimate buyer, a ticket is passed on the ticketday, the day before the settling-day, by the purchaser, and this is passed from hand to hand until it reaches the first seller, or deliverer of stock, and he delivers the stock on the settling-day, with the ticket, to the broker whose name is thereon, that is, to the issuer of the ticket. The tickets passed for the purpose of settling bargains in securities to bearer contain the amount and name of the stock, the name of the issuer and the date, but no price. Each member passing the ticket writes on the back of it the name of the member to whom he passes it, and tickets must be issued before two o'clock on the ticket-day. The tickets must be for amounts of stock of £1,000 each, or multiples of £1,000 up to £5,000; in American Stocks for $5,000, or multiples thereof up to $25,000; and in the case of all shares "to bearer" for ten shares, or multiples thereof up to 100 shares. Tickets may, however, also be passed for £500 stock, representing bargains or balances for that amount. And the tickets in no case are allowed to be divided in the manner used for tickets of registered stocks. The passing of tickets for securities to bearer by the buyers is not, however, compulsory, and although the system is adopted to a large extent, some members prefer to receive stock purchased from the members with whom they did the bargains. Members who have bought stock, and who do not issue tickets, are required to give notice to that effect before twelve o'clock on the ticket-day, and they must pay for stock up to two o'clock on the settling-day. If they fail to give this notice, they must pay for stock up to halfpast two o'clock. But members who issue tickets on the ticket-day, are required to pay for stock accompanied by a ticket up to half-past one o'clock only, on the settling-day. Sellers of stock are required always to accept tickets, but if they prefer to deliver the stock to the member with whom their bargain was done, rather than to the issuer of the ticket, they must deliver the stock before half-past twelve o'clock on the settling-day, or one hour earlier than if they delivered to the issuer of the ticket. On any other day than settling-days, stock must be delivered before half-past two o'clock, except on Saturdays, when the time is one o'clock.

It is usual for the members, through whose hands securities to bearer pass, to take note of the distinctive numbers attached to every bond and share, and of the size and other particulars; to these particulars are added the names of the members or other persons from whom the securities were received and to whom passed, so that in the

event of a bond being lost or proving to be irregular in any way, the source from whence it came may be readily traced. In the bustle and hurry of the settling-day it is not always found possible to take the particulars of securities, but it is done as far as possible, although there is no rule compelling the adoption of the process. It is done, in fact, principally for the protection and use of the members themselves, through whose hands the securities pass. The only rule that refers to the practice is applicable to cases where stock has been bought in" from not being delivered at the proper time, is as follows:-"A member neglecting to take the numbers of securities delivered after time, shall be required to trace out the member responsible for the loss." The "loss" here referred to is, that arising from "buying-in."

Purchasers of stock who have not received it by half-past two o'clock on the day for which it was bought, may force delivery by buying it in. Stock bought for any day except the settling-day may be bought in the same or any subsequent day, if it is not delivered by half-past two o'clock, and any loss arising therefrom must be paid by the seller. But stock bought for the settling-day may be bought in on the following or any subsequent day. And notice must be given of the intended purchase by being posted in the Stock Exchange one hour previously. The buying-in must not take place before two o'clock, and on Saturdays not before half-past twelve o'clock. The loss arising from buying in in this case must be paid by the member who had not delivered the stock by half-past two o'clock on the previous day, that is on the settling-day.

As regards the genuineness of securities to bearer, the Stock Exchange rule says:-"The deliverer is responsible for the genuineness of securities delivered, and in case of his death, failure or retirement from the Stock Exchange, such responsibility shall attach to each member in succession through whose hands the ticket for such securities shall have passed." This, of course, applies also to cases where no ticket has been passed, and then the responsibility attaches to each member through whose hands the stock has passed.

Securities to bearer must be examined, to see that they are perfect and regular in every respect; and this examination must be completed so that the securities may be returned to the seller, if they are found irregular, within the eight days following the day of delivery, as "the committee will not take cognizance of any complaint" in respect of such cases, unless this is done. The rule on the subject adds, however, "unless it can be proved that the member passing them was aware of their being imperfect."

There are several points upon which securities to bearer require to be examined, and these vary to some extent according to the class of the securities that is, whether they be foreign government loans, colonial government bonds, foreign railway shares, or some other class.

On some points, all classes of securities to bearer must be examined alike. They are as follows:

First, it must be seen that the bond or share is perfect-that is, that no part has been torn off or seriously damaged. On this point a Stock Exchange rule says: "Every bond or scrip share is to be considered perfect unless it be much torn or damaged, or a material part of the wording be obliterated." The term "scrip" here added to "share" is in contradistinction to "registered," and is frequently used instead of, and signifying the same thing, as "to bearer." In the event of there being any doubt or dispute regarding any particular bond or share being "perfect," according to the terms of the above rule, the matter is submitted to the decision of the committee; and if they decide that the bond or share is "perfect," the fact is sometimes noted on the security itself, together with the date of the committee's decision.

Secondly, when there have been several issues of one kind of security, or when there is more than one class of security, the bonds or shares should be examined, to see that the class or issue purchased has been delivered.

Thirdly, it should be noted whether the last-entered coupon attached bears the date when the next dividend is due, and also whether the remaining coupons are perfect.

And fourthly, the bonds should be examined to see if they bear the proper government stamp. This applies more particularly to foreign government bonds dated later than the 3rd June, 1862.

Colonial government bonds require to be specially examined to see that they are repayable within the years stipulated at the time of the bargain.

The scrip of loans and shares to bearer should be examined to see that the proper amount has been paid on them; and when shares are filled up with a name, it should be seen that they are endorsed by the person whose name is therein. Shares in American companies are negotiable in the London Stock Exchange in certificates for not more than ten shares of 100 dollars each, and for not more than twenty shares of 50 dollars each. It should be seen, therefore, that the certificates for such shares do not exceed these numbers. In the same way United States' government bonds must not be for a larger amount than 1,000 dollars each.

A certain number of securities to bearer are settled by means of the Stock Exchange Clearing-house. This institution has now been in existence nearly twelve months, and it appears to have greatly facilitated the settlement of bargains in those stocks which it takes in hand. Its operation is confined within certain limits that is to say, it only undertakes the settlement of the bargains in certain stocks made between those members of the Stock Exchange who are also members of the clearing-house. Any member of the Stock Exchange may be a member of the clearing-house, and the stocks at present dealt in by the clearing-house include a number of the foreign stocks most largely dealt in, and two or three of the principal kinds of shares to bearer. The range of its operations is gradu