GENERAL HISTORY. 



[67 



Bank, June 13, 1/81, couccraing 

 the renewal of their charter, 

 which liad been referred to a 

 committee of ways and means ; 

 and the other was a coaummica- 

 tion, dated Fell. 19, 1800, res- 

 pecting- the advance of a sum for 

 the ))ublic service, connected with 

 a similar proposition fur the ex- 

 tension of the charter for a fur- 

 ther tei'm of years, which had 

 been disposed of in a similar way. 

 The first resolution whirh ho 

 shoidd have to move was, that 

 the connnittee should approve and 

 accept tlic proposition of the biink 

 of England, for graiiling an ad- 

 vance of 3,000,CK)0l. at three per 

 cent, interest, accompanied with 

 a condition, that (he corporation 

 should be perniitU'd to extend 

 their capital by an addition of 

 one-fourth, or 25 per cent., with 

 a further proposition that their 

 promissory notes should continue 

 to be received in all payments 

 made on account of the [)ubUc 

 revenue. Tlic permission which 

 it was in contemplation to gritnt 

 them, allowing them to augment 

 their capital, which was at [)re- 

 Sent fixed at about eleven millions 

 and a half, to between 14 and 

 15,000,0001., was, in truth, only 

 blowing them to divide somc- 

 l*ing less than 3,000,0001. of 

 their omi money among their 

 proprietors, on condition that 

 they should advance the sum of 

 .'>,rXK),000l. for the public service, 

 -it an interest of three per cent. 

 This was an advantage of consi- 

 derable importance to the public. 

 When it was necessary that money 

 should be borrowed for the na- 

 tion, it was not to be dotibtcd 

 that if was no inconsiderable be- 

 nefit to be enabled to obtain so 



large a sum as 3,000,0001. pay- 

 ing oaly three per cent, interest. 

 It was only necess.ury to consider 

 whether this proposition was ac- 

 compaaie<l with any condition 

 that couhl be \iewed as objec- 

 tionable. The [tiincipal subject 

 for consideration was the pFO- 

 posed augmentation of the ca- 

 ])itnl. To him, this appeared not 

 only free from objection, but that 

 which was in itself very desirable. 

 Since the capital of the Bank was 

 fixed at ckvcn millions and a 

 half, a great increase of bank 

 paper had taken place; it was 

 therefure proper lliat their ca- 

 pital should be increased, to give 

 the holders of their notes addi- 

 tional -iecurity. .'^uch an aug- 

 uientaAion of their capital as they 

 now of themselves proposed, he 

 was of ojiinion, if not necessary, 

 was at least its desirable for the 

 public as for the Bank. If this 

 was, as he considered it to be, 

 advantageous for the public, he 

 did not see that any objection 

 couhl be made to the mode in 

 which the Bank proposed to ein- 

 }doy that .«um. If the corjxjra- 

 tion had (as it had been said they 

 had) a large sum of undivided 

 prolils in their hands, he did not 

 know that they could do better 

 than divide it among their pro- 

 prietors on e(iuitable terms, and 

 add it to their capital. 



The second condition which ac- 

 companied their proposition, was, 

 that the Bank promissory notes 

 should contimie to be received in 

 payment at the Exchequer. It 

 was well known that for many 

 years their notes had been re- 

 reived in payment, and he doubted 

 not they would have continued 

 to be so taken, if this airangc- 



[F 2] ment 



