of England has the command of the rate of interest, which it most undoubtedly has not; that institution, like any other, must follow the market; if the rate out of doors be 5 per cent. it would be simply childish of the directors to fix their rate at 6 per cent.; the only effect of such a course would be to diminish the dividend on Bank Stock, because, although notes would flow in as securities ran off, they would be drawn out again through the depositors. It may, perhaps, be said that the rate of interest outside the Bank of England corresponds to the terms exacted by that establishment; but the fact that it does so only proves that the opinion of the public coincides with that of the Bank directors.

Of course, in fixing the rate of interest, the amount of the reserve of notes and bullion is a most important element, not only as to the resources of the Bank, but as a monetary barometer showing the state of the atmosphere of the money market. Still it will not do to treat a foreign drain of gold in the same way as a domestic one, the latter being invariably of a special, and generally of a temporary nature.

In a most able article published in 'Blackwood's Magazine' for March 1866, well worthy of the

attentive perusal of all interested in this and kindred subjects, the writer strongly deprecates the obligation imposed on the Bank of keeping the security for the notes in the form of bullion. He argues most justly and forcibly that a drain of gold does not take place through the Issue Department, and that the only demands for gold through that department are for the supply of small change. He therefore proposes that the Issue Department should transfer the bullion to the Banking Department, receiving Government securities in exchange, and that in future notes should be issued entirely against such securities. The effect of this would be to increase the strength of the reserve in the Banking Department to an enormous extent, as the whole of the bullion would be available. There remains the question whether if that were so, the temptation to allow this unprofitable portion of their assets to fall to a low figure, and thereby increase the profits of the Bank, might not be too great for the virtue of the authorities.

It is here as well to remark a slight error into which the writer of the article in Blackwood' has fallen he speaks of the depositors at the Bank having an equal claim on the bullion in the

Issue Department as the holders of notes, which is clearly contrary to the spirit and letter of the Act of Parliament.

Respecting the issues of country notes, there being no security whatever provided for them, it seems that it would be but an act of justice to declare that in cases of bankruptcy, the holders of notes should have their claims settled before the depositors or other creditors.

With reference to the larger part of the question, the regulation of Bank of England issues, the space prescribed to this branch being exhausted, it must suffice to say that for fair weather the Act of 1844 works, or rather leaves other things to work, tolerably well; but in times of commercial panic it is more than questionable whether it does not aggravate and intensify existing evils.

CHAPTER X.

OF COINS.

THE earliest mention that is made in authentic history of the use of a metal currency occurs in the 23rd chapter of Genesis, where Abraham bought the field of Macpelah for 400 shekels of silver-one shekel was about 28. 34d. A talent was 3,000 shekels, or 3421. 3s. 9d.; a talent of gold, 5,4751.-both Jewish. With whom the talent originated, or when, is not recorded. The Jews were in the habit in those times of weighing their money in scales, which they carried about with them for the purpose. The earliest mention of coins is made in 1 Chron. xxix. 7, and Ezra, ii. 69, where the Persian coin, the daric, is spoken of, which was of gold, value 2s., having an impression on one side of an archer kneeling. Gold was used by the Egyptians before silver-the latter was called by them white gold; both metals were afterwards used for their currency, being made up

in the form of rings, without, however, any stamp or indication of their purity or weight; these rings were generally weighed in the gross against other weights in the shape of oxen and lambs, which tedious process continued as late as the time of the Ptolemies, and was only gradually superseded by Grecian coins. It is recorded that Aryandes, Governor of Egypt, struck silver coins in imitation of the golden ones of the Persian empire, for which invasion of prerogative the king struck off his head. On the Persians quitting the country these coins were discontinued. The earliest mention of a coin with any pretension to a value of its own stamped upon it was the Lydian stater,' a Greek coin, a mixture of gold and silver, as three to one. They were simply lumps of metal struck on one side only, leaving the impression of a lion's head or other emblem. Darius was the first to introduce coins of real gold, though it would seem that they were intended as medals, and afterwards used as coins. The ring money before spoken of was circulating in Britain previous to the invasion of the Romans. We learn from Cæsar that the Gauls also used iron and gold rings of certain weights for their money. The gold rings have been discovered at no distant date in