THE HOLDEN PLAN 89 RECONSTRUCTED BALANCE-SHEET OF THE BANK, JANUARY 16, 1918. Capital.....£i4,553,ooo Gold . . .£58,768,000 Rest......3,363,000 Currency Notes . 11,015,000 Notes Issued (circulation) 45,3as,ooo - --------------£69,783,000 Deposits.....163,005,000 Government Secu- Other Liabilities , . . 18,000 rities . . . 56,768,000 Other Securities 7>435»ooo ------------ 64,203,000 Other Securities .... 92,278,000- £226,264,000 £226,264,00 Ratio of Gold to Notes . . =1297 per cent. „ ,, Cash Balance to Liabilities •* 33*5 ,, It need not be said that these proposals have aroused the liveliest interest. At the Bank Meetings held since then several chairmen have been asked by their shareholders to express their views on Sir Edward's proposed revolution. Sir Felix Schuster pronounced cautiously in favour of the revision of the Bank Act, and said that he had advocated it seventeen years ago. Lord Inchcape, at the National Provincial Meeting, thought that the matter required careful consideration. Most of us will agree with this view. There is certainly much to be said for a reform of the Weekly Statement of the Bank of England, giving, it may be added, a good deal more detail than Sir Edward's revised balance-sheet affords. But concerning his proposal to reconstruct our system of note issue on a foreign model, there is certain to be much difference of opinion. In the first place, owing to the development of our system of banking by deposit and cheque rather than by issue and circulation of notes, the note issue is not nearly so important a business in normal times in this country as it is in Germany and France.