A. D. 1694. 659^ 



parliament, they fliall forfeit triple the value of money fo lent *. Pro- 

 vided, that no letters of fignet, privy feal, or great feal, of the crowni 

 fhall pardon or remit any fine or amerciament charged on this corpora- 

 tion on account of any fuit brought againft them ; but fuch fine (hall 

 be deducted out of their annual fund. The reft of this long ad relates 

 to annuities for one, two, or three, lives, for L^oo.ooo principal money ; 

 the refidue of the Li, 500,000 raifed by this ad to be granted by the 

 king. ( ' 



In confequence of this ad of parliament, the fubfcriptions for the 

 L 1,200, 000 were completed in ten days time, and L25 per cent paid 

 down. And the king's charter of incorporation was executed on the 

 27th of July 1 694 ; though it muft be here obferved, that the charter 

 was in fad little more than a piece of form, all the elTential powers, 

 privileges, &c. granted to the bank, being included in the ad of par- 

 liament, which has virtually been a leading one for the eredion of all 

 future great trading corporations ; whereby, agreeable to the ad of the 

 year 1689, for declaring the rights and liberties of the fubjeds, 8cc. the 

 crown is limited and rellrained from granting, by its fole authority, 

 new exclufive powers, privileges, &c. to any perfon or body-politic 

 whatever ; upon which ground it is, that all corporations, ereded folely 

 by the crown, without the fandion of parliament, (whether before or 

 fince the date of that famous ad) which claim any exclufive rights by 

 their charters, have, upon proper and pubHc inquiry, been determined 

 to be fo far illegal. 



We may here alio farther remark, that this is the firfi; infi:ance of 

 any national fund being managed by any other than the crown officers 

 at the exchequer. This new method of allowing a round fum for " 

 charges of management has been ever fince followed, not only with re- • 

 fped to the bank, but alfo to the Eafii-India and South-fea companies: 

 The allowances for the expenfe of management (i. e. for ialaries of go- 

 x'ernors, diredors, clerks, office-rent, &c.) were at firfi; ufually comput- 

 ed from what fuch funds had formerly coft the crown when managed 

 at the exchequer ; though in later times, I conceive, moftly with Ibme 

 faving to the public in this new method. 



The eredion of this famous bank (fays its projedor Mr. Paterfon^ 

 who was chofen one of its firfi diredors) not only relieved the minifier- 

 ial managers from their frequent procefilons, as he terms them, into 

 the city, for borrowing money on the befl: and neareft public fecurities, 

 at an intereft of 10 or 12 per cent per annum, but likewife gave life 

 and currency to double or triple the v:due of its capital in other branches 

 of public credit ; and fo, under God, became the principal means of the 

 fuccefs of the campaign in the following year 1695,, as particularly in 



* Thisclaufe feems intended to guard againft fuch a difafter as Chailes H brought upon the com»- 

 inercial interefts of the country by (hutting up the exchequer in the year 1672. uf. 



aO 2 



