§ Lord Wharncliffewished to draw the attention of the noble Viscount opposite to a subject of considerable interest—he alluded to the establishment of Joint-stock Banks throughout the country. At the time when the measure authorizing the formation of such banks was under discussion, he understood that a deputation of bankers had waited on die Chancellor of the Exchequer, to inquire of him whether it was the intention of Government to regulate those new banks in such a manner as to require, that before they proceeded to do business a sufficient capital should have been paid up. The mode of proceeding was this:—A bank was advertised, with, say 700,000l. capital, whereas, in point of fact, not the one-tenth of that sum was subscribed. This was a delusion on the public. But, not satisfied with this, these joint-stock banks were establishing branch 1255 banks throughout the country, the effect of which was extremely detrimental to private banks which had been previously in existence; and he might add, to the business of the country generally. He understood, that at the interview to which he had alluded it was asked, whether Government meant to adopt any regulation to insure the sufficiency of the parent bank. Now, what he wished to know was, whether any regulation of that kind had been made, or was intended to be made, by Government,—a regulation that should make the branch banks stand upon the same footing of liability for their respective issues as the parent bank?
§ Viscount Melbournesaid, he believed the system to which allusion had been made was not only injurious to other banks, but to the community at large. He was aware, that within the last month or six weeks symptoms of inconvenience had been manifested. But Government had not received any information that the circulating medium in the country had been increased by the issues of branch banks to any dangerous extent. Some regulation on the subject was, he conceived, necessary; but he was not prepared to say what that regulation should be. The subject was, certainly, one of importance, and the serious attention of Government should be directed to it during the recess.