380 Tradesman and Merchant — Commercial Population 



losses, to use goldsmiths' notes. In 1653 Hartlib pointed out as 

 defects of the system of banking by the assignation of deposits, as 

 then in use, (a) that it was used by merchants only, (b) that it did 

 not increase the circulation for the volume of currency equalled the 

 volume of silver deposited, and (c) that the accummulation of so much 

 money in one place was a temptation to seizure by the crown. ^ But 

 within the next few decades the first two of these objections were 

 corrected, for all classes began to deposit with the goldsmiths and the 

 circulation was increased by the banknotes backed by small reserves. 

 The latter objection proved too true in 1672. Thereafter, pubUc 

 opinion increasingly favored the projects for a municipal or national 

 bank. 



In 1676 there was formulated a plan for a "Bank of Credit" and 

 proposed to the Mayor, Aldermen, and Common Council of London. 

 After several examinations it was undertaken as a project "highly 

 conducing to the general good."^ It pro\dded for a subscription to 

 a fund under the care and management of trustees chosen by the 

 subscribers; and "many Considerable and Wealthy Inhabitants" 

 subscribed a "Fund more Substantial than any Bank abroad."^ 

 Subscriptions were paid in kind, e.g., tin, lead, copper, iron, raw silk, 

 wool, cotton, etc. These wares were put in warehouses provided for 

 the purpose, for one year, and substitutions of other goods were 

 allowed during the year. Credit was allowed on such deposits up 

 to two-thirds or three-fourths of their market value, depending on 

 the durability of the goods and the stability of price. This credit 

 was transferable on the books of the "Bank" and redeemable. The 

 depositor paid 6 per cent per annum for the credit, warehousing, 

 salvage and bookkeeping."* Thirty-five advantages were particularized 

 which it was .expected would be realized from this bank;^ the funda- 

 mental consideration was that "by the help of this Bank" produc- 

 tion and trade could be made less subject to stops and starts. The 

 makers and dealers might "deposit their Goods, . . . and b\' 



privilege of keeping their cash. North, Lives, II, 103. Banking was opposed by 

 some prominent merchants on various grounds, not commercial particularly. See 

 North, Lives, III, 148; Anderson, II, 507, 519-20; Child. Discourse, Preface. 



1 Hartlib, Essay, 29. 



-Houghton, Collection, IV, 145; "P^ngland's Interest," 3; Murray, Corp. Cr., 

 3-4. 



■■'"England's Interest," 3; "Bank Credit," 4, names several subscribers "con- 

 siderable for Reputaion and Estates." 



* Murray, Corp. Cr., 5-6; "England's Interest,"' 3-4. 



* "England's Interest," 6-S. 



