162 A COLONIAL AUTOCRACY. 



which had long been advocated by Macquarie but opposed by 

 the Colonial Office. 1 Now, however, without further consulta- 

 tion with Downing Street, Macquarie went straight ahead. The 

 project was mooted in November, and the foundation of the Bank 

 of New South Wales was decided upon at a meeting held on 

 22nd of that month, 1816. Macquarie granted a Charter of In- 

 corporation, and in 1817 the bank opened for ordinary business 

 and for the issue of notes. 2 In 1 820 it had a capital of 20,000 

 in shares of .100 each, of which 120 were paid up and the 

 shares stood at par. The expectations of the founders had been 

 fulfilled and the circulating medium of the Colony for the first 

 time placed on a satisfactory basis. 



Macquarie granted the charter for seven years with "the 

 usual rights and privileges of a corporation . . . provided the 

 same shall meet . . . the approbation of His Royal Highness 

 the Prince Regent ". 3 This was the only support lent by the 

 Government, except that after 1819 the colonial revenues were 

 deposited with it. 



The Governor considered that his Commission empowered 

 him to grant the charter and Wylde agreed with him. The 

 latter based his opinion on the fact that the Commission " al- 

 lowed the Governor to raise boroughs, create turn-pikes and 

 tolls, impose port duties and imposts, and determine from 

 time to time the legal tender, regulate the value of the sterling 

 medium and of the public money and interest thereon, establish 

 and direct public markets, and to dispose at discretion of the 

 Crown lands of the territory". 4 But Wylde would gladly 

 have made a reference home upon the question before taking 

 any steps had he not thought the delay likely to hasten the 

 " almost inevitable final consequences of such a fictitious capital 

 and circulating medium ". Only by the establishment of a 

 bank could the colonial currency be checked. An attempt 

 had indeed been made to check it, but had met with signal 



1 D. 2, 2Qth March, 1817. R.O., MS. See also Ds. of 1810 and 1811. H.R., 

 VII., especially 3oth April, 1810. 



"The notes were of value of 2s. 6d., 53., IDS., i and 5. See D. above. 

 In 1821 notes in circulation amounted to 5,902. See Bigge's Report, III. 



S D. 2. 2gth March, 1817. R.O., MS. 



4 Wylde to Goulburn. Enclosure to D. 26, ist September, 1820. R.O., 

 MS. Macquarie had done these things, but many of them were not justified by 

 his Commission. 



