B A N K. 



266 



Bank, by several calls and subscriptions, to no more than 

 v ' 10,780,000. 



In pursuance of the 4th George III. c. 25. the 

 bank paid to government 110,000 for the renewal 

 of its charter, without stipulating for repayment of 

 principal or allowance of interest. At the same time, 

 (1764,) it advanced 1,000,000 towards the sup- 

 plies on exchequer bill?, to be repaid in the year 

 1766. The charter was accordingly extended to the 

 1st August 1786, and the dividend on the com- 

 pany's stock was raised from 4| to 5 per cent. ; and 

 at Michaelmas 1767, it was farther raised to o\ per 

 cent. 



Soon after the establishment of the bank, it assisted 

 government with money in anticipation of the land 

 and malt taxes ; and also by advances on exchequer 

 bills, and other securities. In 1781 the advances in 

 this way amounted to 8,000,000, in addition to the 

 permanent debt of 11,686,800. On the condition 

 of advancing 2,000,000 on exchequer bills, at 8 

 per cent, interest, to be paid off from the sinking fund 

 within three years, the bank again obtained an exten- 

 sion of its charter to August 1812. To enable it to 

 make good this advance, it was thought necessary to 

 make a call of 8 per cent, on the capital stock, which 

 was now increased to 1 1 ,6 42,4-00, and the dividend 

 was raised to 6 per cent. In February 1782, the to- 

 tal advances to government on the land and malt 

 taxes, and exchequer and treasury bills, amounted to 

 9,991,0*78; but in 1786 this sum was reduced to 

 6,634,872 ; and from that period to the commence- 

 ment of the late war in 1793, the amount of advances 

 on these funds has fluctuated from seven to nine mil- 

 lions sterling. In February 1788, the dividend was 

 raised to 7 per cent., which continued to be the rate 

 of division until April 1807. 



In the year 1800 the charter was renewed by the 

 40th George III. c. 28, and continued to 1st August 

 1835, on condition of 3,000,000 being advanced 

 for the public service, without interest, for six years, 

 ending on the 5th April 1806. In that year, how- 

 ever, it was stipulated, and accordingly enacted by 

 the 46th George III. e. 4, that these three millions 

 should remain with the public till six months after 

 the ratification of a definitive treaty of peace, at 3 per 

 cent, interest per annum, which is a present to the na- 

 tion of 60,000 a year, during the continuance of 

 the war ; and which shews the resources and profit- 

 able trade of the Bank of England. 



The circulation of the notes of the bank has not 

 been so extensive as was generally supposed ; and 

 lias seldom exceeded the amount of the capital until 

 of late yean. In February 1787, no more than 

 8,688,570 were in circulation ;in 1790, .10,217,360; 

 in 1795, 13,539,160; and in 1796, 11,030,110. 

 But by issuing small notes, the circulation was greatly 

 increased ; and in 1603 amounted to 18,397,880 ; in 

 1806, to 1 7,093,570; in 1807, to 16,621,390; and 

 at present (1810) to about 21,000,000 sterling. 



In the year 1797, the amount of the public debt to 

 the bank, and the vast drainage of coin and bullion 

 for the payment of loans, exchequer bills, &c. con- 

 joined to the appreliension of invasion, produced a 



n upon the bank, and it was found necessary to 

 nop payments in cash. The privy council issued an 



vot. III. part I. 



order for that purpose on the 26th of February ; and 

 an act was passed by parliament, suspending payments 

 for bank notes for a limited period, which suspension 

 was renewed annually ; but by subsequent acts it was 

 continued until six months after the ratification of a 

 definitive treaty of peace. 



From the reports of the committee of secrecy ap- 

 pointed in 1797, to inquire into the state of the bank, 

 it appeared, that on the 5th February of that year, 

 the total credits of the bank were 17,597,293 ; and 

 the debt owing by government was 13,770,390. 

 thus leaving a balance in favour of the bank of 

 3,826,903. Since that time, the profits of the 

 bank have been considerably augmented, and the pro- 

 prietors have occasionally received bonus's in addi- 

 tion to the usual dividend of 7 per cent. ; but in April 

 1807, the permanent dividend was fixed at 10 ptv 

 cent, per annum. 



According to Mr Allardice's statement, the annual 

 income, or profits of the bank, arise from the interest 

 of the permanent debt received from government ; 

 the allowance for managing the public debt ; the al- 

 lowance for receiving the contributions to loans, and 

 paying the dividends on the public funds ; the allow, 

 ance for temporary advances on exchequer bills, Sec. ; 

 the interest of stock held by the company ; the dis- 

 counting of mercantile bills of exchange, and other 

 less important sources ; making altogether about 

 1,437,752 sterling, from which fall to be deducted 

 the interest of the capital stock of 11,64-2,400, and 

 all losses, charges, and expenses of management. 



By the original act which constituted this bank, as 

 well as by the various subsequent statutes, numerous 

 privileges are conferred on the governor and com- 

 pany of the Bank of England ; and salutary restric- 

 tions interposed for the protection and welfare of the 

 institution. They are authorised to purchase and 

 retain lands, &c. with all the powers incident to other 

 corporations ; they are restricted from trading with 

 any of their effects in goods or merchandise of any 

 kind ; but are permitted to deal in bills of exchange, 

 and in buying or selling bullion, gold, or silver, or, 

 in selling goods mortgaged to them, if not redeemed 

 within three months after the time stipulated for such 

 redemption ; or such goods as shall be the produce 

 of the lands belonging to the corporation. 



The stock of the bank h accounted a personal, and 

 not a real estate ; but goes to executors, and not to 

 heirs. A devise of stock, therefore, is valid, if at- 

 tested by three credible witnesses. All contracts or 

 agreements for buying or selling stock, must be re- 

 gistered in the books of the bank within seven days, 

 and the stock transferred within fourteen after such 

 contracts have been entered into, or otherwise they 

 will not be effectual. They are allowed to call for 

 such sums of money, from the proprietors, in pro- 

 portion to their respective interests, as a general court 

 shall deem necessary ; and if such calls shall be re- 

 fused, it is lawful for the bank to stop the payment 

 of the dividends of the defaulters until the same shall 

 be made up. They are also empowered to borrow 

 money under their common seal, or upon the credit 

 of their capital stock, at such interest as they shall 

 think fit, although the same may exceed the legal 

 interest of the country. No body politic or corpo- 

 2g 



Bank. 



