B. A 
exorbitant height. The holders of them might form ex¬ 
travagant expectations, and, inftead of 2 or 5 per cent, 
demand half the bank money for which credit had been 
given upon the depolits that the receipts had rcfpedtively 
been granted for. The enemy, informed of the conftitu- 
tion of the bank, might even buy them up in order to 
prevent the carrying away of the treafure. In fuch emer¬ 
gencies, the bank, it is fuppofed, would break through its 
ordinary rule of making payment only to the holders of 
receipts. The holders of receipts, who had no bank mo¬ 
ney, muft have received within 2 or 3 percent, of the va¬ 
lue of the depont for which their refpedlive receipts had 
been granted. The bank, therefore, it is /aid, would in 
this cafe make no fcruple of paying, either with money or 
bullion, the full value of what the owners of bank money 
who could get no receipts were credited for in its books; 
paying at the fame time 2 or 3 percent, to fuch holders of 
receipts as had no bank money, that being the whole va¬ 
lue which in this (late of things could juftly be fuppofed 
due to them. Even in ordinary and quiet times it is the 
intereft of the holders of receipts to deprefs the agio, in 
order either to buy bank money (and consequently the bul¬ 
lion which their receipts would then enable them to take 
out of the bank) fo much cheaper, or to fell their receipts 
to thofe who have bank money, and who want to take out 
bullion, fo much, dearer j the price of a receipt being ge¬ 
nerally equal to the difference between the market price of 
bank money and that of the coin or bullion for which the 
receipt had been granted. It is the intereft of the owners 
of bank money, on the cdntrary, to raife the agio, in or¬ 
der either to fell their bank money fo much dearer, or to 
buy a receipt fo much cheaper. To prevent the (lock- 
jobbing tricks which thefe oppofite interefts might fome- 
times occalion, the bank has of late years come to a refo- 
lution to fell at all times bank money for currency, at 5 
per cent, agio, and to buy it again at 4 per cent. agio. In 
confequence of this refolution, the agio can never either 
rife above 5 or fink below 4 per cent, and the proportion 
between the market price of the bank and that of the cur¬ 
rent money is kept at all times very near to the proportion 
between their intrinfic values. Before this refolution was 
taken, the market price of money ufed fometimes to rife 
fo high as 9 per cent, agio, and fometimes to fink fo low 
as par, according as oppofite interefts happened to influ¬ 
ence the market. 
The bank of Amfterdam profeffes to lend out no part 
of what is depofited with it, but, for every guilder for 
which it gives credit in its books, to keep in its repofitorles 
the value of a guilder either in money or bullion. That 
it keeps in its re-pofitories all the money or bullion for 
which there are receipts in force, for which it is at all times 
liable to be called upon, and which, in reality, is continu¬ 
ally going from it and returning to it again, cannot well 
be doubted. But whether it does fo likewife with regard 
to that part of its capital for which the receipts are long 
ago expired, for'Which in ordinary and quiet times it can¬ 
not be called upon, and which in reality is very likely to 
remain with it forever, or as long as the ftates of the Uni¬ 
ted Provinces fubfift, may perhaps appear more uncertain. 
At Amfterdam, however, no part of faith is better efta- 
bli/hed, than that for every guilder circulated as bank 
money there is a correfpondent guilder in gold or filver 
to be found in the treafury of the bank. The city is gua¬ 
rantee that it (hall be fo. The bank is under the direction 
of the four reigning burgomafters, who are changed eve¬ 
ry year. Each new fet of burgomafters vifits the treafure, 
compares it with the books, receives it upon oath, and 
delivers it over, with the fame awful folemnity, to the fet 
which fucceeds them ; and in that fober and religious coun¬ 
try oaths are not yet difregarded. A rotation of this kind 
feems alone a fufficient fecurity again/! any practices which 
cannot be avowed. Amidft all the revolutions which fac¬ 
tion has ever occafioned in the government of Amfterdam, 
the prevailing party has at no time accufed their prede- 
ce/fors of infidelity in the adminiftration of the bank. No 
Vol. II. No. 96. 
N K. v J 68, , 
accufation could have affe&ed more deeply the reputation 
and fortune of the difgraced party ; and, if fuch an accn- 
fation could have been Supported, we may be allured that 
it would have been brought. In 1672, when the French 
king was at Utrecht, the bank of Amfterdam paid Co rea¬ 
dily as left no doubt of the fidelity with which it had ob- 
ferved its engagements. Some of the pieces which were 
then brought from its repofitories appeared to have been 
fcorched with the fire which happened in the town-houfe 
foon after the bank was eftabli/hed. Thofe pieces, there¬ 
fore, mu ft have lain there from that period. 
What may be the amount of the treafure in the bank of 
Amfterdam, is a queftion which has long employed the 
fpeculations of the curious. Nothing but conjecture can 
be offered concerning it. It is generally reckoned, that 
there are about 2000 people who keep accounts with the 
bank; and allowing them to have, one with another, tlwt 
value of 1500I. lying upon their refpedtive accounts (a 
very large allowance), the whole quantity of bank mo¬ 
ney, ana confequently of treafure in the bank, will amount 
to 3,000,0001. or, at eleven guilders the pound fterling, 
33,000,000 of guilders; a great fum, and fufficient to car¬ 
ry on a very exten/ive circulation, but vaftly below the 
extravagant ideas which fome people have formed of this 
treafure. 
The city of Amfterdam derives a confiderable revenue 
from its bank. Befides wftiat may be called the warehoufe 
rent above-mentioned, each perfon, upon firft opening an 
account with the bank, pays a fee of ten guilders; and, 
for every new account, three guilders three /livers; for 
every transfer, two (livers; and, if the transfer is for lefs 
than 300 guilders, fix /livers, in order to difcourage the 
multiplicity of fmall tranfa&ions. The perfon who ne- 
gledls to balance his accounts twice in the year forfeits 
twenty-five guilders. The perfon who orders a transfer 
for more than is upon his account, is obliged to pay 3 per 
cent, for the fum overdrawn, and his order is fet afide in¬ 
to the bargain. The bank is fuppofed too to make a con¬ 
fiderable profit by the fale of the foreign coin or bullion 
which fometimes falls to it by the expiring of receipts, 
and which is always kept till it can be /old with advan¬ 
tage. It makes a profit likewife by felling bank money at 
5 per cent, agio, and buying it in at 4. Thefe different 
emoluments amount to a good deal more than what is ne- 
ceflary for paying the falaries of officers, and defraying 
the expence of management. What is paid for the keep¬ 
ing of bullion upon receipts, is alone fuppofed to amount 
to a nett annual revenue of between 150,000 and 200,000 
guilders. Public utility, however, and not revenue, was 
the original objedt of this inftitution. Its objedt was to 
relieve the merchants from the inconvenience of a difadvan- 
tageons exchange. The revenue which has arifen from 
it was unforefeen, and may be conlidered as an accidental 
benefit. 
Bank of Venice, commonly called banco delguira, was 
eftabli/hed in the middle of the twelfth century, and is 
properly a board of public credit and intereft; or a gene¬ 
ral and perpetual purfe for all merchants and traders; ef- 
tabliftied by a /oleum edidt of the commonwealth, which 
enacts, that all payments of wdiolefale merchandize, and 
letters of exchange, /hall be in banco, or bank notes; and 
that all debtors and creditors /hall be obliged, the one to 
carry their money to the bank, the other to receive their 
payments at banco; fo that payments are performed by a 
fimple transfer from the one to the other: he who was be¬ 
fore creditor on the bank books becoming debtor as foon 
as he has reiigned his right to another, who is entered 
down as creditor in his place; fo that the parties only 
change names, without any effedlive payment being made. 
Indeed there are fometimes adlual payments made, efpe- 
cially in matters of retail, and when foreigners are difpo- 
fed to have ready money to carry off in fpecie; or when 
particular traders choofe to have a (lock by them to nego- 
ciatc in bills of exchange, &c. The neceffity of thefe ef¬ 
fective payments has given occafiou to the opening a fund 
& L> of. 
