A. D. 1 694. 65 7 



in order to bring down the high rates of interefl and premiums at this 

 time paid by the government, (which was big with mifchief to com- 

 merce, by inducing men to draw their money out of trade), it would 

 be requifite to eftabhfh a pubhc transferable fund of interefl ; and that 

 the bank fhould alio be for the conveniency of dayly receipts and pay- 

 ments ; and fliould be conflituted a body-poUtic, with proper powers, 

 &c. 



Mr. "William Paterfon, merchant, who had been much in fundry fo- 

 reign countries of Europe, had laboured this point ever fmce the year 

 1 69 1 with Michael Godfrey Efq. and others of the fame mind : and 

 as the government at this time was put to very confiderable difficulties 

 for railing the annual fupplies, in order to fupport an expenfive war 

 againft fo potent a foreign enemy, while the public meafures were at 

 the fame time clogged and diftreffed by a violently-dilTafFeded fadion 

 at home, who alleged, that banks could thrive nowhere but in a re- 

 public, and yet would at other times argue, that fuch a bank as was 

 propofed would make the king abfolute ; he hoped that the government 

 would therefor readily incorporate, with certain powers and privileges, 

 a number of well-affected gentlemen, who would advance a large fum^ 

 by way of loan, for the public exigencies : yet, as he himfelf relates in 

 his ' Account of his tranfadions in relation to the bank of England and 

 * the orphans fund,' (1695, folio) he found it much more difficult to 

 get it confented to by the privy council, (the king being in Flanders) 

 in order to be brought into parliament, than he had at firft apprehend- 

 ed. The monied men alio oppoled it, left it fhould diminifh (as it cer- 

 tainly foon after did) their exorbitant gains from the public diftreiTes ; 

 for even 8 per cent on the land-tax, befides additional premiums, though 

 payable within the year, did not fatisfy them. Other anticipations of 

 the public revenues were much higher, the intereft, premiums, and dif- 

 counts thereon running up to 20, 30, and 40, per cent. And fad it was 

 to confider, that contracts for things fold to the government were made 

 on the foot of 40, 50, to 100 per cent above their current value, ac- 

 cording to the lame author, who was known to be well acquainted with 

 the ftate of things in thofe times. 



At this time, Mr. Paterfon obferves, (in his ingenious book called the 

 Conferences on the pubUc debts, by the Wednefday's club in Friday 

 flreet) that fo great was the difficulty of railing the annual fupplies, 

 that the miniftry v.ere obliged to ftoop to folicitations to the London 

 common council for borrowing only one or two hundred thouland 

 pounds at a time, on the firft payments of the land-tax, as particular 

 common-councilmen did to the private inhabitants in their refpedive 

 wards, going from houfe to houfe for the loan of money. 



The debates held long in the privy council, (Queen Mary prefent) 

 many being of opinion that a bank would not anfwer, as they were. 



Vol. U. 4 O 



