A.D. 1776 —1850. md to the develop- ment of provincial anks. ind of hanks with power of issusng notes in London. 324 LAISSEZ FAIRE said to have prevented any general development of banking acilities throughout the country, such as had occurred in Scotland through the competition of powerful banks. The Bank of England took some steps to follow the example of the Scotch banks, by starting branches in Leeds, Liverpool, Birmingham, and other towns! At the same time, a measure vas passed which broke down the monopoly of the Bank of England in the provinces, as it allowed the formation of joint-stock companies, to carry on banking business at any place which was distant more than sixty-five miles from London?; but comparatively little progress was made®. Joint- stock enterprise laboured under many disadvantages’, and it was only after 1838, when these banking companies obtained power to sue and be sued? that they began to increase not only in numbers, but in reputation as substantial under- takings; additional facilities for forming such banks were given in 1844° Even before the commencement of provincial joint-stock banking, the question had been raised as to whether the charter of the Bank of England really prevented the starting of new banking companies’, or whether it merely prevented a new banking company, when started, from engaging in sertain kinds of business. When the Bank charter was re- newed in 1833 the Directors endeavoured to secure a definition of their claim which would strengthen their position, but the Government refused to impose any new restriction, and set she matter at rest by a declaratory clause’. Advantage was at once taken of the permission, thus accorded, to organise the London and Westminster Bank. It had no power to issue notes; but it was in a position to receive deposits, and make advances to traders. The success, which attended its opera- sheesemonger, however destitute of property, might set up a bank in any place, whilst a joint-stock company, however large their capital, or a number of in- lividuals exceeding six, however respectable and wealthy they micht be. were precluded from so doing.” Hansard, N.8. x1v. 462. t McCulloch, Dictionary (1840), 76. 1 7 Geo. IV. c. 46. 8 McLeod, op. cit. IL. 383. 4 See above, p. 816. 5 1 and 2 Vict. c. 96. 8 7 and 8 Vict. ¢. 118. ! Mr Joplin argued in 1823 that the existing charter of the Bank did not exclude joint-stock companies. McLeod, op. cit. m. 384. t 8g and 4 Will. IV. e. 98, § 3.