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.