48 JOURNAL AND PROCEEDINGS 
gue was closely allied Michael Godfrey, the brother of that Sir 
Edmondsbury Godfrey whose sad and mysterious death, had, fif- 
teen years before, produced a terrible outbreak of popular feel- 
ing. Michael was one of the ablest, most upright, and most opu- 
lent of the merchant princes of London. He was, as might have 
been expected from his near connection with the martyr of the 
Protestant faith, a zealous Whig. Some of his writings are still 
extant, and proved him to have had a strong and clear mind. 
By these two distinguished men Paterson’s scheme was 
fathered. Montague undertook to manage the House of Commons, 
Godfrey to manage the city. An approving vote was obtained 
from the Committee of Ways and Means; and a bill, the title of 
which gave occasion to many sarcasms, was laid on the table. 
_It, was indeed not easy to guess that a bill, which purported only 
to impose a new duty on tonnage for the benefit of such persons 
as should advance money towards carrying on the war, was really 
a bill creating the greatest commercial institution that the world 
has ever seen. 
The plan was that twelve hundred thousand pounds should 
be borrowed by the government on what was then considered as 
the moderate interest of eight per cent. In order to induce 
capitalists to advance the money promptly on terms so favorable 
to the public, the subscribers were to be incorporated by the 
name of the Governor and Company of the Bank of England. The 
corporation was to have an exclusive privilege, and was to be 
restricted from trading in anything but bills of exchange, bullion 
and forfeited pledges. 
As soon as the plan became generally known, a paper war 
broke out as furious as that between the swearers and the non- 
swearers, or as that between the Old East India Company and the 
New East India Company. The projectors who had failed to 
gain the ear of the government fell like madmen on their more 
fortunate brother. All the goldsmiths and pawnbrokers set up a 
howl of rage. Some discontented Tories predicted ruin to the 
monarchy. It was remarkable, they said, that Banks and Kings 
had never existed together. Banks were republican institutions. 
There were flourishing banks at Venice, at Genoa, at Amsterdam 
