670 A. D. 1695. 



this bank, In his treatife of money and trade confidered, aflerts, ' that 

 ' its notes went for four or five times the value of the cafli in bank ; 

 ' and, that fo much as the amount of thofe notes exceeded the cafh in 

 ' bank, was a clear addition to the money of that nation.' He adds, 



* that this bank was fafer than that of England, becaufe the lands of 

 ' Scotland, on the fecurity of which mod of the cafh of that bank was 

 ' lent, are under a regifter ; that, moreover, it was more national or ge- 

 ' neral than either the bank of England, or that of Amfterdam, becaufe 

 ' its notes * pafs in mofl payments throughout the whole coimtry ; 



* whereas the bank of Amfterdam ferves only for that one city, and 

 ' that of England is of little ufe but in London f.' The Scottifli bank 

 foon rofe to very great credit : yet it was once obliged to flop payment, 

 partly occafioned, foys Law, by a greater coniumption of foreign wares 

 than the value of the goods exported, partly from the expenfe of the 

 Scottifh nobility and gentry in England, and partly, alfo, from a fup- 

 pofed intention in the ScottiOi privy council to raife the denomination 

 of the coin, all which, together, occafioned fo great a run on that bank, 

 that its cafh was in a few days exhaufted ; but it foon regained its ori- 

 ginal credit, and might pofhbly have remained the fole bank there to 

 this day, had not the directors been thought to have teftified too great 

 a bias towards difaffedion to the flate. This occafioned a confideration 

 by fome noble patriots in the reign of King George I, whether another 

 bank might not be ereded at Edinburgh, for the conveniency of the 

 government, as w^ell as of trade in general, into which bank the public 

 revenues of Scotland might be paid. It was accordingly incorporated 

 by that king's charter, in the year 1727, by the name of the royal 

 bank, and has fully anfwered the ends propofed by it, its capital being 

 Li 51,000 fterling. And though it may have pretty much eclipfed the 

 elder bank, they, however, both fubfift very well, and are extremely 

 ufeful to the country. 



The million bank was one of the many projeds Itarted about this 

 time ; and it has preferved its credit to our own times. It took its rife 

 from a fet of London bankers, who lent out money on pledges. They 

 afterwards agreed to purchafe tickets in partnerfliip in King William's 

 million lottery in the year 1695, and from thence they were called 

 the company of the million bank. Next, they purchafed many rever- 

 fions of the 14 per cent annuities, and admitted many proprietors of 

 annuities to purchafe their joint flock, which amounted, and ftiU 

 amounts, to L50o,ooo. They are no company by charter, but only a 

 partnerfhip by deed, enrolled in chancery prior to the ad of parliament 



* Many of tlie notes are fo low as twenty (liill- -f In the beginning of Queen Anne's reign, 



ings llerling. y^. when Mr. Law wrote, this aflertion miglit be true-; 



Mr. A. did not expe'ft that the bank of England but now the bank of England is of great ufe all- 

 was cvtr to defcend tg twenty (hilling notes. 71/. over the country. ^. 



