BAN 



deemed in 1738, being part of the principal for exctiequev 

 bills cancelled in 1717. 



In 1742, the company advanced a fartlier fum of 

 I,6oo,oool. towards the I'upply for that year, without re- 

 ceiving- any additional allowance for intercll or manage- 

 ment ; but they were empowered to enlarge their capital 

 ttoclc to the fame amount ; and by the aft 15 Geo. II. c. 13. 

 clfablilliing this contraft, by which the privileges of the 

 bank, were continued till one year's notice after the ill of 

 Augull 1764, it was declared, that tiie afts of 7 and 12 

 Anne, and all other atts for determining the corporaticn, 

 fhould be void; and that the: governor and company of the 

 bank (hould remain a body corporate and politic for ever, 

 fiibjcil to fuch reltrictioiis and regulations as were contained 

 in the acls and charters then in force. The whole fum, ad- 

 vanced on the original fund of locoool. per annum, thus 

 became 3,20o,ccol. and the intcrell upon it from ift of 

 Augud 1743, 3 per c(;nt. per annum. 



By this ad, pei fons forging, counterfeiting, or altering 

 any bank note, bill of exchanve, dividend warrant, or any 

 bond or obligation under that company's feal, or any in- 

 dorfemcnt upon it, cr knowingly uttering the fame, fliall fufFcr 

 denth without benefit of clergy. Moreover, tlie company's 

 fcrvants breaking their trull to the company, {hall fufler 

 death as a felon without benefit of clergy. It was alfo 

 enacted, that when, at a court of diredors of the bank, nei- 

 ther the governor nor deputy governor fhall attend in two 

 hours after the time appoii/ted for bufincfs, tlicn any 13 (n- 

 more 01 the direcljrs may chufe a chairman for the time, for 

 the dilpa.tch of bulinefs; and that fuch court fliall be as 

 valid as if either the governor or deputy governor had duly 

 attended. 



In confequence of the ftat. 19 Geo. II. c. Ci. in 1746, the 

 bank agreed to deliver up to the treafury 986,800!. in ex- 

 chequer bills; in lieu of which it wa^ to have an annuity of 

 4 per cent for that fum, out of the fund for licenfing 

 fpirituous liquors; and the bank was empowered to add the 

 faid 9^6,800 1. to its capital (lock, by taking in fubfcrip- 

 tions for that purpofe. Accordingly, iit Michaelmas 

 1746, the whole debt due to the bank from the public 

 was ll,686,8ool. and its divided capital had been raifed 

 by different calls and fublcriptions to 10,780,0001. 

 The Hate of thcfc fums has continued to be the fame ever 

 fmce. 



In 1 764, the company of the- bank agreed to advance 

 I, ooo,oool. towards the fiipplics, in exchequer bills, to be 

 repaid in 1766; and to pay into the exchequer lio.oool. 

 without any repayment of the principal or allowance of 

 interell for the fame ; in confideration ot which, the term of 

 their charter was extended to ill of Augiiil 17S6; and the 

 dividend on the company's Itoc-k was railed at Michaelmas 

 from 4j to 5 per cent. At Michaelmas i 767 it was raifed to 

 5! per cent. 



From a very early period after the ellablidiment of the 

 bank, it had been tnc practice of the company to afiill 

 government with money in anticipation of the land and 

 malt taxes, and by making temporary advances on exchequer 

 bills and other fccurities. In the year 17^1, the lums thus 

 lent to government amounted to upwards of eight millions, 

 in addition to the permanent debt of li,686,yool. An 

 agreement was now entered into for the renewal of their 

 charter, tlie term of which was extended to Augull 1812, 

 on the company's engaging to advance 2,ooo,ocol. on ex- 

 chequer bills, at 3 per cent, interell, to be paid off within 

 three years out of the fiiiking fund. In order to enable them 

 to make this advance, a call of 8 per cent, on their capital 

 was thought iieceiTiry, by which their former capital ilock 



B AN 



of 10,7^0.000!. was increafed to 11,642,4001. tfce fum ea 

 vhicli they now divide. The dividci.d wa» alfo incrcaftd 

 one half per cent, fo that it now became 6 per cent. In 

 conftqucnce of this agreement, the total of their advances to 

 government on the land and malt taxes, exchequer bills, and 

 treafury hills, was increafed, on the 25th of February 1782, 

 to 9,991,67X1. The amount of the bank-notes in circula- 

 tion mull of courfe be augmented by the incrcafe of advances 

 to government. 



In coiifequence of large advances to government, the great 

 exportation of coin and bullion to Germany and Ireland, 

 and fevera! concurring circumllaiices, which, at the com- 

 mencement of the year 1797, produced an unufua! demand 

 of fpecie from difftrent parts of the country on the mttio- 

 polis, an order of the privy council was ifl'iied on the iClh of 

 February, prohibiting the iiirtCtors of the bank from ifTu- 

 ing any calh in payment till the feiife of parliament on the 

 fubJLcl was obtained. This rellriction was lanitioned by 

 parliament; and a committee was appointed to ccamine the 

 Itate of tlie bank, from whofe report it appeared, that, on 

 the 25tli of February, after examining the outllanding 

 claims ?.gaiull it witii the coiTcfponding affcts, the amount f>f 

 demands on the bank was 13.770,390; and that of aflets, 

 not including the fnm of i i,6S6,8ool. of permanent debt due 

 by government, was 17,597,298!.; fo that there was a 

 furplus of 3,826,903!. 



Soon after the meeting of parliament, in November follow- 

 mg, the committee of lecrecy, appointed to inquire into the 

 expediency of continuing the rellriction on tlie bank, re- 

 p.>rted, that the total amount of outllanding demands on th: 

 bank, on llie 1 1 th ot November, was l", 578,910!. and uf the 

 funds for difcharging the fame, e xclufively of the permanent 

 debt, 21,418,640!. leaving a balance in favour of the bank 

 at tliat time of 3,839, 550I. The report ilated that the 

 advances to government had been reduced to 4,25.'^, 1 40I. and 

 that the calh and bullion in the bank had increafed to more 

 than five times the value at which they llood on the 25th 01 

 February 1797, when it wasabout 1,272,000!. 



By tills llatemcnt, the folvencv and folldity of the bank 

 were fatisfailorily evinced ; and, indeed, its liability mud be 

 coeval with that of the Britifh government. All that it has 

 advanced to the pubhc mull be loll before its creditors can 

 fullain any iofs. No other banking company in England 

 can be efi;ablifhed by acl of parliament, or can confiH of 

 more than fix members. It aCls, not only as an ordinary bank, 

 but as a great engine of Hate. It receives and pays the 

 greater part of the annuities whicli are due to the creditors 

 of the public (See Aa//o«rt/DtBT, and Fund) ; it circulates 

 exchequer bills ; and it advances to government the annual 

 amount of the land and malt taxes, which are frequently not 

 paid up for fome years. It likewife difcounts the bills of 

 merchants, and has, upon feveral diJerent occafions, fup- 

 ported the credit of tiie principal houfes, not only of 

 England, but of Hamburgh and Holland. The bufinefs 

 of the bank is under the diicclion of a governor, fub- 

 governor. and 24 direClors, who are defied annually by a 

 general court; and it is tranfacted by a great number of 

 lubordinate clerks in dilTerent offices. The qualification of 

 a direilor is 2000I. of a deputy-governor 3CO0I. and of a 

 governor 4C00I. ; 500!. banli Ilock intitles the proprietor to 

 vote at the general courts, provided he has been in poQicffion 

 of it fix months. 



The company may not improperly be denominated a 

 tradingcompany, and that which is peculiarly diftingtiilhedby 

 the appellation of bank ftock is a trading Ilock, tlie dividend 

 ofwliich, amounting to 11,642,400!. paid half-yearly, and 

 now 7 per Cent, accrues from tlie annual income of the com- 

 4B a pan?; 



