The Principles of Banking, Its Utility and Economy: With Remarks on the Working and Management of the Bank of England

The Principles Of Banking, Its Utility And Economy: With Remarks On The Working And Management Of The Bank Of England by Thomson Hankey offers Hankey’s observations on banking, currency, and the Bank of England. The text explains the constitutional separation created by the 1844 Act between the issue of bank-notes and ordinary banking, and the obligation to convert notes into gold. Hankey analyzes how gold and Bank of England notes circulate, the reserve requirements, and the way the Bank uses securities to back its note issue. He surveys the Bank’s duties in managing the National Debt and the organization of its three main departments: National Debt, Issue of Bank Notes, and Banking, including the London clearing-house system, dividend operations, and branch banks. He argues that the Bank cannot supply unlimited ready money and cautions against expectations that the Bank can rescue every monetary crisis. He emphasizes prudent private and public conduct and the moral character of bankers as essential to financial stability. The author, formerly Governor of the Bank of England, presents a principled view of monetary economics.