A. D. 1717. 55 



N. B. By a claufe in the faid a£l [c. 7] the duty of 6d on every 

 piece of forty ells of Britifh-made linen exported, which had been laid 

 on by the tonnage and poundage adl, was taken oflf ; ' the faid manufac- 

 ture' (fays this adl) ' employing many thoufands of the poor of this 

 kingdom.' 



Thus out of the three funds, called the aggregate, the general, and 

 the South fea fund, was formed the finking fund ; being purely the 

 favings out of thofe funds by the feveral redud;ions now and afterwards 

 made in the rates of intereft and allowances ; and as thefe have at dif- 

 ferent times been lefTened, and annual or other payments have been 

 made to the creditors of the public out of the finking fund, it has pro- 

 portionably increafed *. 



We fhall only farther remark on this firfi: famous reduction of the 

 intereft on the national funds, and the eftablifliment of a fund for far- 

 ther lelTening the public debts, that inftead of lowering the prices of the 

 feveral ftocks at market, it was feen, that, by michaelmas in the year 

 1717, they had confiderably rifen in price ; and particularly that South- 

 fea flock, which, at lady-day T717, was but at looi per cent, got up to 

 Illy per cent by michaelmas. 



The regent of France having, in the year 1716, ereded the firft 

 public circulating bank that had ever been in France, by the perfuafion 

 of Mr, John Law, a native of Edinburgh ; whereby he propofed mighty 

 matters for the advancement of the commerce and manufactures of 

 France: ' which kingdom,' fays the preamble to the patent for that bank, 

 very juftly, ' by its fituation and fertility, wanted nothing but a Iblid 

 ' credit to eftablifh therein the moft flourifhing commerce. Where- 



* for the Sieur Law has now authority granted to him and his company, 



* for 20 years, to ilTue notes, as a public bank, with abiolute protection 

 ' for the cafli of foreigners, even though their country fhould be at 



* war with France. The crowns or money of this bank to be always 

 ' of the fame weight and finenefs, and their notes to be always payable 

 ' on demand. This bank might keep cafli for merchants, and difcount 

 ' bills of exchange, &c.' This bank, of which the regent called himfelf 

 the protedlor, was principally projeded by Mr. Law for the grand pur- 

 pofe of paying off the public debts of France, being above 1500 mil- 

 lions of livres, or about 70 millions fterling, by drawing its creditors 

 into the newly-projeded Miflilippi or India company ; for wliich end, 

 the Sieur Crozat was brought to refign his patent of the country of Mif- 

 fifippi, granted to him by the name of Louifiana, in the year 171 2. 

 The regent therefor now ereded a company of commerce by the name 

 of the company of the Weft, commonly called the Millilippi company, 



* It was bi'C.mfc the hint for this finking fund was probably Inkcn from thofc of Holland in the viar 

 1655, and tlic piipi: in tlic year 16S5, tliat tlic fucccfs of thufc fouign fchcmcs of linancc liasLccn no- 

 ticed in onr work. j^. 



