WORLD'S LARGEST BANKING ACCOUNT.

New Zealand Herald, Volume XLIX, Issue 15056, 27 July 1912, Page 5 (Supplement)

WORLD'S LARGEST BANKING ACCOUNT.

WHERE BRITAIN'S WEALTH IS

STORED.

The nation's banking account is kept at the Bank of England and stands.in the names of the Lords of the Treasury, two of whom sign cheques drawn on it.

It is by far the largest banking account in the world, for the whole revenue of this country, which exceeds the revenue of any other nation, is passed through it.

The moneys collected by the different revenue-collecting departments, such as the customs and inland revenue, are lodged in huge bulk sums to the credit of the Treasury account every quarter, whilst' the profits arising from the postal business all over the country are paid into the Treasury account through the General Post Office in London every month.

Millions are always being paid into the nation's banking account, but on the other hand millions are always being paid out. At regular periods millions must be paid out of the nation's banking account to the credit of the great spending departments, such as the War Office, tho Admiralty, the Civil Service Commissioners, and then, of course, the money to meet the interest on the consolidated and other government funds has to be found the day the interest is due. There cannot be a day's delay in finding the money to meet these great national liabilities, whilst on the other hand there often is a good deal of delay about extracting money from the pockets of taxpayers, most of whom defer meeting the tax collector's demands for as long a time as possible. The result is that the Lords of the Treasury find themselves from time to time in the position of an individual whose banking - account is exhausted of funds, and whose bankers will not advance him money without security. When tho Lords of the" Treasury find themselves in this plight they have to borrow money, just as the ordinary individual might have t-> do in like' circumstances- •

Tho Lords of the Treasury, however, find it easier to borrow money than would most - ordinary individuals; they find as a rule that the wealthiest men in the world are only eager and anxious to lend them as many millions as they require at/ of couite, a price.'

Bills are issued by the Lords of the Treasury which are 'known as Treasury bills for as many millions as are required to meet the nation's immediate pressing liabilites.

Che bills are taken up by'the great financial houses and are discounted' at about three per cent. They are either issued for one, three, or five months. If the Lords of the. Treasury cannot pay them when they become due they are renewed by the holders. *

The nation pays about half a million a year in discount on bills, the greater part of which would be saved if every-tax-payer paid up promptly what he owed.

The money raised on the bills is placed to the credit of the nation's banking account, and the Lords of the Treasury are then in a position to draw cheques on it without fearing that they will not be honoured.

It takes six clerks to look after the nation's banking account, at tho Bank of England, which is balanced every week.