ABSTRACT
Evidence of THOMAS MATTHIAS WEGUELIN, formerly Governor of the Bank of England, and SHEFFIELD NEAVE, Governor of the Bank of England, before the Select Committee on Bank Acts, 19th May
475. (Chairman) You are doubtless aware that an impression prevails at present on the part of many persons that the Bank of England have the power of arbitrarily determining the rate of discount; and that whatever they fix as the rate of discount is followed by the private discounters. Is that a doctrine to which you accede ?—Certainly not; the Bank of England has a limited power over the money market during certain periods of the quarter, when public balances are accumulating, and when there is no money to be had except at the Bank of England. Then it has a certain power of raising the rate of interest, but that again finds its level the moment the public monies come out in the shape of dividends.
