“206 | on stagnation in businefs. _ Oct. Q. 
fore, has been the chief cause of the present distrefs | 
on the trading part of the nation: their credit being 
by so many failures rendered doubtful, has withdrawn 
at once the imaginary stock furnifhed by them for 
“the carrying on of trade. 
It is a difficult matter to restrain an improper use 
of credit without hurting credit itself, which is so ne- 
cefsary for the carrying on of an extensive businefs ; 
but perhaps the following proposals might fasten 
the private banking within proper bounds. 
Let there be a charter bank establifhed in every 
considerable trading town in Britain, whete a capital 
‘of 100,000 1. could be employed to advantage in the 
banking businefs, upon the following conditions. 
1. That before they ifsue any notes for circu- 
lation, they fhall lodge four fifths of the capital stock 
contained in their charter in government’s hands, at 
3 per cent. for the security of the holders of their 
notes, andat thesame time this deposit be admitted as a 
compensation for the stamp tax ; sothat their notes or 
bills be free from that tax, in the same manner asthe 
_ motes of the bank of England are: that the 4 per cents. 
fhall be taken at par for the whole or any part of the 
deposit money ; for which reason each of these banks 
fhall be allowed to take in of that stock to the amount | 
of four fifths of their charter capital, either by pur- 
chase at the market price, or by giving stock for 
them at such rates as they can agree with the stock- 
holders. 
2. That the remaining fifth to lie in the bank, be 
employed in no other trade but the purchase of either 
bullion or bills of exchange. 
