BAN 



pany; ant! this arifcs from the intercft received for the 

 motKy advanced by the proprietors to the public, or the 

 permanent debt of 1 1,686, 800I. ; from iiiterell on the 

 annual temporary athances ; from the profits of their deal- 

 ings in bullion, and of their difcounts ; from the intereft of 

 itock held by the company ; from the fuins allowed by go- 

 vernment for the management of the annuities paid at the 

 offices" of the bank, fuch as, an allowance of 450I. per 

 niillion for management of the public funds, and the allow- 

 ance of 805 1. 15 s. lod. per million for receiving the con- 

 tribution to loans, and from fome other fmaller articles. 



The bank of England may be confidered as the main 

 fpring of that complicated meclianifm, by which the com- 

 mercial payments of this country are iranfaded; and by 

 which the comparatively fmaN fum of money with which 

 they are. performed is kept in perpetual and regular crcu- 

 lation. The fubordinate parts of this machine confill of 

 about 70/>;v'ra/^ banking-iioufes in London, ard about 386 

 banks difperfed over the country. By the joint operation 

 of theff-- various money-dealers, almofl all bank payments, 

 founded on commercial bargains, are ultimately fettled in 

 London, with the money whicli ilTues from the bank of 

 England. This money confifts, in ordinaiy times, partly of 

 coin, and partly of bank notes, i'rom its large capital and 

 cxtenfive ifTiie of paper, that bank indiredly fupphes the 

 ■whole kingdom with as much gold as is required for circu- 

 lation. Its notes are iffiied in loans, granted either for t!;e 

 accommodation of the public treafury, or for that of mer- 

 chants by difconnt of their fills ; anil in confequence of a 

 common agreement among the bankers, no notes of any 

 private houfe are current in London. All the large pay- 

 ments of that metropolis are in this manner effefted by the 

 paper of the bank of England ; and they are chiefly tranf- 

 afted by the private banlicrs, who, according to a conjec- 

 tural eltimate, make daily payments to the amount of four 

 or five millions, and have probably in their hands a very 

 large proportion of the whole of the notes circulating in the 

 metropolis. 



The following table will exhibit, at one view, the ftate of 

 the cafh aad bullion, the average of bank notes hi circulation, 

 ^t^d alfo the difcounts and advances to government during 

 the feveral periods which it comprehends. 



In the beginning of 1798, the hank advanced to govern- 

 ment 3,000,000 on exchequer bills, and ir» the progrels of 

 the year a farther advance of 5.00,000!. ; fo that the total 

 £um, advanced by the bank for khe public fcrvice, and out- 



BAN 



{landing on the 7th of December, was 6,777,739!. At « 

 general court, held 14th of March 1799, it was agreed to 

 advance to government 1,500,000!. on exchequer bills, and 

 It was propofed to divide among the proprietors the 5 per 

 Cent, lloek held by the company for the million fuh- 

 fcribed to the loyalty-loan; and with this view to pnrehafe 

 ^9,2401. of the fame ifock, to make up tlie fum held by 

 them 1,164,2401. in order to «nake a dividend of lol. 5 per 

 cent. Hock for every lool. bank capital. Accordingly the 

 transfer was mtde on the I'X of June. 



In November following, a negotiation was entered into 

 for renewiiig the term of the company's charter, although 

 about 13 years of it remained. Tiie propofition was agreed 

 to at a general court held January the gth, iSoo. Tiie con- 

 ditions were, that the bank (liould advance to government 

 3, 000, cool, for the fervice of tlie year 1800, on cxrhcquer 

 bills, payable, without intercil, out of the fiipplies to be 

 granted for the year 1 806, in conlideration ol which the 

 term of their charter was continued till the end of tvvelvc 

 months notice after the ift of Augull 1833. 



The amount of bank notes in circulation had gradually 

 increafed finee the beginning of 1797; and, during the year 

 1800, amounted to about 15,000,000!. The amount, on 

 an average of a month, to 251!! of January i8ci, was 

 16,365,200!.; confining of 13.845,800!. in notes of 5!. 

 and upwards, and 2,519,400!. in 1 1. and 2!. notes. 



At a general court, held 19th of M^rch 1801, aiiot'ier 

 occafional dividend of flock was propofed. Tliis dividend 

 was to be made of 582,120!. of 5 per cent, navy annuities, at 

 the rate of 5 percent, for every 100!. bank capital; and 

 the transfer was made on the I ft of May. 



The commerce of London itfelf is inimenfe; not only as 

 a feat of populous and luxurious confumption, but as a 

 ftation of manufactures, and an emporium of maritime trade. 

 The number of payments occafioiied by fr.ch various tranf- 

 ailions, is farther increafed by the dividends which the 

 national creditors receive on the great fum of our public 

 debt. But in addition to all thefe payments, originating 

 within the capital itielf, bills are drawn upon London, and 

 remittances are fentthltlier to provide fortlicm, from all parts 

 of the kingdom. Even foreign drafts, on account of mer- 

 chants in the country, are, witli fcarccly any exceptions, 

 made payable in London. And thus a great proportion 

 of the pecuniary engagements, to which the whole com- 

 merce of t!ie kingdom gives birth, are ultimately fettled 

 there. This transfer of the country payments to London, 

 has, in fome degree, fubfilled tor a long time; the praiStice, 

 once begun, was likely, from its great advantages, to be 

 gradually extended ; and, of late years, it feems to have been 

 reduced to a regular and very commodious fyftem. It was 

 much facilitated by the multiplication of country banks, 

 during that period of high profperity and confidence whicli 

 imniediat'-ly preceded the late war. The formation of thtfe 

 throughout the whole country was aftivcly encoura,ged by 

 the private bankers of London ; and, indeed, the exiftence 

 of a great national banl5, which, like that of England, iruft 

 provide a conftant refervoir of gold, naturally iuggefts the 

 creation of fnailer ellabliiliments. Upon tlie formation of 

 fuch banks in the country, rr^any traders of all defcriptions, 

 who had formerly maintained a direif correfpondence with 

 merchants in London, fell into the praflice of tranlafting 

 their bufir.efs with the metropolis through the banker in 

 their own neighbourhood with whom they kept their cafti. 

 On their account, he drew largely upon a banker in 

 London; who agreed to executetheextenfivccountrybufinsfs 

 he had thus acquired, at a much lower commiffion than what 

 had formerly been paid by the feveral country traders to 



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