BAN 



BAN 



Bank of France was firft projc(£le(.l by Mr. Law, a native 

 of Scotland, with a view of paying off the public debts of 

 France, bv drawing its creditors into the newly projected 

 MilfuTippi and India companies, and ercAed in the year 1716. 

 It was taken into tlie kiilg's hands in 17 iS, and denominated 

 the royal bank; and by its union with both the companies 

 above-mentioned, formed a bubble, which occafiontd great 

 eonfufion and dillrefs in the year 1720. 



Bank, Million, derived its name from king Willfam's 

 million lottery in th.e year 1695; the proprietors aa;recina in 

 partnerflilp to purchafe tickets in this loltiry. They after- 

 wards pnrchafed_ many reverfions of the 14 per cent, an- 

 nuiMes, and admitted manv proprietors of annuities to pur- 

 chafe their joint ftock, wliich amounted to 5CO,ocol. They 

 were a partnerlhip by deed enrolled in chanceiy, in the year 

 1721. They divided 5 per cent, till Lady-day 1728, when 

 they reduced their annual dividend to 4 per cent, and it was 

 aijjain raifed to 5 per cent, which it continued till its diffo- 

 lution. 



Bank of Loan, Cdpenhagfri, has a capital flock, confilb'ng 

 of 500,000 rix-dollars, each being- of the value of about 

 4.S. 6d. lUrling. Its notes are received in payment of the 

 roval revenues. It lends money on jiledgcs, not exceeding 

 100 rix-dollavs, at an interelt of 4 per cent. In 1762, his 

 iJanifh majelly direded the bank for current cafh-notes, to 

 exchange their 100 rix-doHar notes, fornotes of 5c, 10, or i 

 rix-dollar; and not to pay to any one perfon above one 

 crown in Ipecie. 



Bank of Rotterilam was erefted in 1635. It pays bills 

 nf exchange in large money, and only 10 per cent, in fliil- 

 liiigs. 



Bank of ^ffignation, a new bank eftablifhed in Ruffia 

 during the holtilities againft the Turks. When copper- 

 money could not be coined with fufficient expedition to 

 anfwer the neceflities of the flale, bank-notes to the value 

 of 50, 75, and 100 rubles, in copper, were iffued. Tliefc 

 tiotes are changed at the bank in Peterfburgh and Mofeow. 

 The former is a brick building, containing fevtral vaulted 

 rooms, each capable of holding 400,0001. of copper coin iu 

 bags, piled one above another. Since the year 17S4, the 

 old bank notes were called in, and a new iffue made to the 

 acknowledged amount of ioo,coo,ooo rubles, in notes of 5, 

 10, 15, 25, and 100 rubles. On tl'.e firll appearance of this 

 paper, it was received, particularly in theremote parts of the 

 rmpire, not witho\it difficulty, and the difcount againil it 

 was commonly about 3', and in fonie places even 6 per 

 cent. The obvious advantages, however, over copper money 

 foon recommended it to general ufe, and it wy.s found fo 

 beneficial to commerce, that in 1779 the difcouftt in favour 

 of filver fpecie was only i per cent, and it bore a premium 

 of I5 per cent, over copper money. Bnt fo large a quan- 

 tity was circulated, and the loans to government lo lowered 

 the credit of the llatc, that in 1790 the difcount againil the 

 paper currency was near 20 per cent. 



The Loan Bank is an inftitution el^abliflied at Peterfburgh 

 for the benefit of the nobility and corporations. With this 

 view Catherine II. in i7S6,made a depofit of 22 millions of 

 rubles for the nobility, 11 million? for the corporate towns, 

 and 3 miiliciis for the province of Taurida, to be lent out 

 for the improvenncnt of rural economy, of focial induflrv, 

 ar.d the benefit of civilization in general. This bank lends 

 only on real eflates. As the value of a landc-d efhite in 

 Ruflia is elliniated according to the number of boors upon 

 it, the bank takes the boors at 40 rubles per head; fo tiiat 

 the proprietor of aneftate, requiring the loan of 1000 rubles, 

 rnu'l give i^ boors as his pledge. The loan is made for 20 

 years; the mortgagor annually paying 5 per cent, interefl, 



and :; per cent, nn the capital, fo tliat after 20 years he has 

 paid back the whole of his loan. The loans are fubjeft to 

 no other limitations than what arife from the value and the 

 fecuvity of the pledge; every one being allowed to apply 

 for and receive as much money as he is capable of laying 

 down a lav.-fid pledge for. The bank, h.owever, lends 110 

 fum under looo rubles, and only by thuufands, for the fake 

 of avoiding perplexing accounts. The mortgaged property 

 is fubjeft to no fuit, to no conlifcation, nor to any demands 

 from the crown or from private individuals. Eveiy four 

 years one part of the pawn is dilcharged, equal in value to 

 that part of the capital already paid. The bank can re- 

 deem eilates elfewhcre mortgaged or appropriated to the 

 payment of debts; and mortgaged cflates may be fold; but 

 in that cafe th.e pnrchafer takes upon himfelf all tlie obli- 

 gations which the feller was under to the bank. The mu- 

 nicipal magillracv vouches for the worth rf the pledge; and 

 mull be lefpop.fible for it. The interell is paid annually. 

 The bank gives ten days grace; whoever exceeds one month 

 pays a ilatcd penalty per cent, and this likewife holds good 

 the fecond and third mor.th. If payment be delayed be- 

 ) ond three months, the mortgaged eftate is taken into 

 charge by the noble court of wards. The intertfl and fines 

 are paid from tlie incomings ol theellate, a;-;d the remainder 

 is paid to the proprietor. The inhabitants of towns obtain 

 loans on their real eflatcs, paying yearly 4 per cent, interefl, 

 and 3 per cent, capital, and are conlequently freed from 

 their debt in 22 years. Storch's Pitl. of Peterfb. p. 211. 



Bank of rhiladelphia, called the bank of ike United Stales, 

 was founded in 1787, and feems to have been fuccefsful. 

 Its capital ilock was 10 millions of dollars. 



Bank o( Slockko/m owes its origin to Palmfhut, a mer- 

 chant, who carried on anextenlive trade, and pofleffed great 

 property iu iron mines. He eflablifhed at Stockholm a 

 bank for the purpole of exchauging and lending money, 

 divided into two departments. Such was his credit, and 

 fuch were his refources, that, tliongh he was the only 

 banker in the kingdom, and his connections of com-fe very 

 extenfive, the notes which he iffued at the interefl of 8 per 

 cent, for a term of ten years and upwards, were circulated 

 through the kindom, and received as ca'h by the trading 

 part of the nation. In proeefs of time, by the ifhie of 

 coimterfeit notes and other unfavourable cireumflances, the 

 bank was drained of cafh, and its credit was in danger of 

 finking into difrepute. In this dilemma Palmfluit applied 

 to Charles XL, and induced the king to take the bank 

 under his royal direftion. Accordingly, the king appointed 

 Palmfliut director, and having eflablilhed the credit of the 

 bank, transferred the direftion of it to the tlates of the 

 kingdom afTcmbled in 1688^ and declared himfelf and his 

 fuccefl'ors proteftors of the bank, but renounced all inter- 

 ference in the difpofal of the money. Ti'.c Hates being thus 

 declared guarantees, proprietors, and direftors of the bank, fe- 

 veral regulations were made. 'Llie bank was permitted to lend 

 money on good fecuritv, at the interell of 8 per cent, but 

 to pay for all money borrowed only 6 per cent. ; the deb- 

 tors to difcharge interell upon mtere'.l, but the bank not to 

 pay interell upen interefl ; all the king':, revenues were to be 

 depofited in the bank, without receiving interell. The banfi 

 was empowered to iffue notes not exceeding the value of 

 thirr/-fix dollars coppei" nii;:t, or ten fliilliiigs ; and it was 

 finally refolved, that the frates, or tlu)fc whom tlwy ftiould 

 depute, fhould have the pov.-er of iufpcfting the ace-oiints, 

 and inquiring into th.e nature of its conflitution. By thef'e 

 regulations the credit and riches of the bank increafed to 

 fuch a degree, that towards the clofe of the 17th century, 

 it became the univerfal depolitary of the whole kingdom, 



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