‘HISTORY OF EUROPE. 
hey of the abstractest kind, which 
was merely conventional. A ron 
was made on the bank of England 
which threatened its ruin. Goyera- 
ment interfered for its preservation, 
and the minds of men began to be 
turned back from metaphysics to 
matter: from the sign to the thing 
‘signified. ‘Lhe spirit of adventure, 
in many instances, out-ran its capi- 
tal,* and an increased capital stock 
required an increase in the circula- 
ting medium: but the immediate 
and principal cause of the shake that 
was given to the bank of England, 
in 1797, is unquestionably the pre- 
sent war, which, among other ex- 
pences, to an unheard of amount, 
included large pecuniary remittan- 
ces to fereign powers, but especial- 
ly the emperor of Germany. 
In the month of January, 1795, 
the court of directors informed the 
chancellor of the exchequer, that it 
was their wish, *‘ that he would ar- 
range his finances for the year, in- 
such a manner as not to depend on 
any farther assistance from them.” 
These remonstrances were renewed 
in the months of April and July, in 
the same year; andon the Sth of 
p17 
October following, they sent a writ- 
ten paper to the minister, which, 
concluded by stating, ‘* the absolute 
necessity, which they conceived to 
exist, for diminishing the sum of 
their present advances to govern=- 
ment ; the last having been granted 
with great reluctance on their part, 
onhis pressing solicitations.” Inan 
interview with thechancellor of the 
exchequer, which took place on the. 
23d of the same month, on the 
loans to the emperor being men- 
tioned, the governor assured Mr. 
Pitt, ** That another loan of that 
sort would go nigh to ruin the 
country.” And on the 9th of Fe- 
bruary, 1797, the directors ordered 
the governor to inform the minister, 
‘that, under the present state of 
the bank’s advances to government 
here, to agree with his request 
of making a farther advance of 
1,500,000/. as a loan to Ireland, 
would threaten ruin to the bank, 
and most probably bring the direc 
tors to shut up their doors.” 
With this cause, another springs 
ing also out of the war, power- 
fully co-operated. This was the 
dread of an invasion, which had 
* That the run on the bank was, in part, owing to this cause, is rendered probable, 
he many and great embarrassments of’principal traders, noticed in a former vo~ 
lume. When from this and whatever other Cause, there was a great scarcity, or more 
properly, a great demand for money, many merchants and tradesmen stopped, and 
others were on the brink of stopping payment, though their debts were found, on the 
Strictest inquiry, to be greatly exceeded by their property. On this emergency, minis- 
try, willing to nourish trade, the source of revenue, the source of theit own power and 
influence, abroad and at home, very wisely advanced large sums of money to mercan- 
tile houses, on receiving deposits of goods into public warehouses; nor is it in very 
many instances, that they have appeared in so respectablea light, as when they assuined 
_ the character of paternal and patriotic pawn-brokers. The emperors of Germany, in 
pledging their copper-mines, as collateral securities forthe payment of the bank notes 
of Vienna, have also appeared, on many occasions, in the respectable light of pawn- 
brokers. Though pawn-broking has been-disgraced by the baseness of little pawn-bro- 
kers, in the same manner as the law, the guardian of our properties.and lives, has been 
degraded by vile attornies, and other legal practitioners, yet there is nothing in the sys- 
tem of pawn-broking, disgraceful, or incompatible with the highest virtue and.honour. 
‘To adyance money, or any thing else, on deposits or pledges, is nothing more than the 
simple quid pro quo, the principle of barter, the first stage of commerce. At the same 
time that government afforded succour to trade, in this manner, it ordered a new coin- 
age of gold and silver; in both ways, returning from refinement and abuse, to the 
@riginal, and most natural medium _of commerce. 
[N2] 
juduced 
