HfiUgr. 
BANK. 
<1000/. per ann. for their expenses of manage- period the temporary annual advances which 
nient. the bank had long been accustomed to make 
In less than two years from its establish- to government w'ere increased ; while an 
nient the company was involved in much advance in the price of gold, in consequence 
difficulty from the bad state of the silver of the great exportation of coin and bullion 
coin, and the great discount to which all to Germany and Ireland, greatly reduced 
public securities had fallen : the impossi- the quantity in the hands of the bank, and 
bility of getting a sufficient supply of cash consequently rendered it impracticable to 
during the re coinage, reduced them to the maintain the same amonnt of notes in cir- 
necessity of paying their notes by small culation. An alarm of invasion in the be- 
instalments, and of issuing bonds, bearing ginning of the year 1797 greatly increased 
interest, in exchange for their cash notes, the demands on the bank for cash, and it 
These difficulties, however, were overcome was deemed necessary for the government 
by prudent management, end the responsi- to interfere and authorise a suspension of 
bility and reputation of tlie bank became payment in cash for bank notes, for a 
fully established. The term of the charter limited period : the continuance of the sus- 
was, in 1706, extended to five years beyond pension was at first renewed annually, and 
the original period, in consideration of the afterwards till the return of peace. In 
company having undertaken to circulate order to supply a substitute for coin for 
for government exchequer bills to the making small payments, the bank issued 
amount of 1,500,000/. and it has since been notes of 2/.. and 1/. each, and as the demand 
further extended at different times, viz. for notes of this description has increased, 
In 1709 to 1st of August 1732 the total amount of bank notes in circula- 
17 I3 1742 tion has become considerably greater than 
4742 1764 previous to the suspension of issuing cash, viz. 
1763 178 ® On the 1st of Feb. 1805, =£18,397,880 
1781 1806, 17,293,570 
1800 18jj 1807, 16,621,390 
On all these occasions the company have 
either paid a considerable sum, or advanced From the reports of the secret committee 
a greater amount by way of loan to govern- appointed in 1797 to investigate the affairs 
nient, as a consideration for the renewal of of the bank, it appeared that on the 25th of 
their exclusive privileges, and for the advan- February, in that year, there was a balance 
tages they derive from acting as the agents of 3,826,9031. and on the lltli of November 
for government in all money transactions a balance of 3,839,550/. in favour of the 
of any importance. Their chief privilege company ; their profits since must have been 
consists in the prohibition of all other com- greater than while they were obliged to 
panics or partnerships of more than six per- maintain a large stock of cash to answer 
sons, from issuing bills or notes payable on their notes, which has enabled them to 
demand, or for any time less than six months, make several occasional dividends to their 
The total permanent debt due from go- proprietors, and at Lady-day, 1807, to raise 
vernment to the hank is 11,686,800/. bear- their usual dividend from 7 per cent, which 
ing 3 per cent, interest; but the capital it had been for the last 19 years to 10 
stock of the company is 11,642,400/. on per cent. 
which they pay a dividend of 10 per cent. The profits of the company arise from the 
per ann. to the proprietors. interest received from government on tire 
The notes of the bank of England are the permanent de\»t, and on their annual ad- 
representative of money in all the commer- vances on exchequer bills and treasury bills 
cial transactions of London and its vicinity, of exchange ; from their allowance for receiv- 
and from the vast magnitude of the pay- ing the contributions to loans, and for pay- 
ments in which tiiey are employed, the ing the dividends on the public funds ; from 
total amount in circulation, which till within dealing in bullion, and discounting mercan- 
a few years was never made public, was tile hills of exchange, and other sources of 
generally thought to be much greater than less importance. 
it has since appeared to have been. The The concern is under the management of 
total amount of bank notes in circulation on a governor, deputy governor, and twenty - 
the 25th of Feruarv, 1787, was 8,688,570/. four directors, who are elected annually, 
which on the 25th of February, 1793, had 500/. hank stock entitles the proprietor to a 
increased to U, 451, 180/. Soon after this vote at tile general courts, atod no proprietor 
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