A. D. 1609. 255 



fome will have to amount to thirty-fix, others to but thirty millions Ster- 

 ling. But as they fhut their books twice in a year, for a few days, to 

 flrike a general balance, their true capital is then certainly known, 

 though probably kept fecret by order of the magiftrates, for prudential 

 confiderations. Ricard, before quoted, (in his fecond edition,/*. 171) 

 is very exprefs in this particular point; and, as a proof of ir, fays, ' that 



* in the very height of the war in 1672, when the French king had al~ 



* ready taken the city of Utrecht, (within twenty-one miles of Amfier- 

 ' dam) there was a very great demand (or run, as we term it in London) 

 ' by the creditors on that bank, to draw out their money; juflly fear- 



* ing, that if the French king Hiould become mafter of Amflerdam, 

 ' they fliould lofe all ; yet the bank paid all who came for their mo- 

 ' "ey.' 



The proper definition of this bank, is not a bank of current money, 

 to be received and iflued dayly, like thofe of London, Venice, &c. but 

 is purel}' a depofit of money, the credit whereof palfes from hand to 

 hand dayly, by figned tickets, carried to the cafliiers of the bank, di- 

 recfling them to write off any fum intended to be paid from the ac- 

 count of the ower to that of the receiver. But although it be, doubt- 

 lefs, an excellent inftitution for fafety, eafe, difpatch, and record, yet 

 it cannot be fald to increafe the general quantity or circulation of mo- 

 ney, as fome other banks certainly do ; if it be prefumed, as above, that 

 aquantity of treafure equal to the total of their credit ever remains in it ; 

 any farther than the value of the uncoined bullion, and of the jewels faid 

 to be pawned there (by feveral princes, nobles, &c.) amounts to. With 

 the above-mentioned dues the expenfe of the management of this bank is 

 defrayed ; and what furplus there may be in any one year, goes to the 

 Tupport of the poor of that city. Bank-money, i. e. credit in the bank's * 

 books, is dayly bought and fold, by means of brokers, who have their 

 offices near the bank ; the money whereof is commonly of late about 

 five per cent better than the real current coin of Holland ; which pre- 

 mium is called the (Jgio, a term borrowed from the bank of Venice. 

 The rate of agio varies according to the demand tor bank-money, and 

 alfo according to the quality or goodnefs of the coins to be paid for it. 

 And this advance or agio in bank-credit will always prevent any from 

 demanding current cath of the bank for it. 



By means of this bank, the magiftrates of Amfterdam are pofleffed 

 of the bulk of the property of their inhabitants, and thereby have the 

 ilrongeft fecurity for their fidelity *. 



* The beil and mod copious acco'.int of the Hope ot" Amfterdam to Dr. Smith, wlio has in- 



ibank of Amllerdam, cvtr publifhed in the Enghlh fencd it in his Inquiry into the nature and causes of 



liiiiguage, is that which wasicmimniicatcd by Mr. the iveahh of nations, V. u, f--. 219, rj. 1793. /»/. 



