The last eight were not in the direction the preceding years.

1734. Thursday, 5th of June. The directors began to transact business at their new house in Threadneedle Street. The business of the bank had previously been carried on at Grocers' Hall, in the Poultry. In the hall of the new building was erected a curious marble statue of King William III., with a Latin inscription, of which the following is a translation :

For restoring efficacy to the laws,
Authority to the courts of justice,
Dignity to the parliament,

To all his subjects their religion and liberties,
And

For confirming these to posterity,
By the succession of the illustrious House
Of Hanover

To the British Throne,

To the best of Princes, WILLIAM III.,
Founder of the Bank,

This Corporation, from a sense of gratitude,
Has erected this statue,

And dedicated it to his Memory,

In the year of Our Lord MDCCXXXIV.,
And the first year of this building.

1737. Considerable public discussion about the propriety of again renewing the bank charter. The following extracts from the 'London Magazine' of this year will show the sentiments which different writers entertained upon this subject:

"The bank have power to lend money on land, and no doubt might have put out prodigious sums that way, and have had a better interest for their money than most private people. Had the bank, then, lent out their money on land, they would have strengthened their CREDIT and their

INTEREST, and also extended their usefulness by relieving the landed property, of which there is a great deal at this time in mortgage, most unaccountably, at five per cent., while inferior securities bear a premium at three per cent.

"Another branch of business which the bank have power to transact, but yet never meddle with, is the remittance of money backwards and forwards to London from all the chief trading cities in England, for which they should have proper offices or inferior banks erected in all such cities and towns as they intend to manage a remittance with;-this, besides what profit might be expected upon the remittances, would naturally bring great part of the cash which is circulated in the country to be lodged in their hands.

"I must next observe that in that branch of business in which they do employ themselves, which is that of a London banker, they very much contract and narrow their dealings, by refusing to take in payment the foreign coins, for which reason it is impracticable with many traders to keep their cash with them.

"This very privilege which the bank has for so long enjoyed, I could demonstrate to be a most heavy burthen upon the people, and a great prejudice to the landed interest as well as the trading interest of this kingdom; for if it had not been for this privilege, we should have had a bank, perhaps, in every county in England, and probably half a dozen different banks in London, by which means no merchant of tolerable credit could ever have been straightened for want of ready money at a low interest when he had occasion for it, nor would any landed gentleman who had a good title to his estate have been obliged to pay such premiums to brokers, or such an interest to mortgagees as they have now generally to pay;-whereas our present bank has never, so far as I have heard, assisted any landed gentleman, nor any merchant, except in and about London only.

"I am of opinion that with respect to the banking trade and the trade to the East Indies, neither the one nor the other can be carried on with such success, or in such an extensive manner, by private adventurers, as by a public company with such an exclusive privilege as our present companies have. The circulating of bank bills or cash notes must certainly increase the current cash of any country, and must, therefore, be of great use in trade; consequently, the more extensive and the more general such a circulation is, the better will it be for the inland trade of that country. It is true, a private man or set of men may, by a long series of good management, gain a very extensive credit, but that credit can never come to be so extensive or near so general as the credit of a rich public company, that has supported itself with honour, perhaps, for some ages; because the credit of a private man always depends upon himself, so that when he dies, his credit, as to any further circulation, generally dies with him, for it must require some time before those who succeed can revive or regain it; whereas a public company never dies, nor can their credit meet with any such interruption; and as their managers are always chosen annually by the company, there is a greater security for its being under good management than a private bank, whose

chief managers are appointed by the chance of natural or legal succession: therefore, I shall always think it better for a trading country to have a public bank than to trust entirely to private bankers.

66

'There certainly never was a body of men that contributed more to the public safety than the Bank of England. This flourishing and opulent company have, upon every emergency, always cheerfully and readily supplied the necessities of the nation, so that there never have been any difficulties-any embarrassments-any delays in raising the money which has been granted by parliament for the service of the public; and it may very truly be said that they have, in very many important conjunctures, relieved the nation out of the greatest difficulties, if not absolutely saved it from ruin."

1738. Dec. 14. The bank commenced issuing post bills, payable seven days after sight, that in case the mail was robbed the parties might have time to stop payment of the bills. Highway robberies appear to have been very frequent at this period.

1742. The bank charter was extended or renewed until the expiration of twelve months' notice, to be given after the first day of August, 1764, and until payment by the public to the bank of the demands in this Act specified, being an extension or renewal of the said charter for twenty-two years (15 Geo. II. c. 13). In consideration of obtaining this charter, the bank lent to government 1,600,000l. without interest. To raise this sum the bank made a call upon the proprietors of 840,00-17. 5s. 4d., which increased their capital to 9,800,000. Oct. 18. The rate of discount on bills drawn within the kingdom was raised to five per cent.; bills drawn without the kingdom were still discounted at four per cent.

1745. A RUN upon the bank, occasioned by the rebellion in Scotland, and supposed to be for the purpose of supplying the rebels with gold. A public meeting was held, and one thousand one hundred and forty merchants signed a declaration expressing their readiness to take bank notes.

1746. May 1. The rate of discount on foreign bills reduced from five to four per cent.: inland bills and notes were still charged five per cent. These rates continued until the year 1773. By the 19 Geo. II. c. 6, the bank delivered up to be cancelled 986,000l. exchequer bills, in consideration of an annuity of 39,4727., being three per cent. per annum. To raise the above sum the bank made a call of ten per cent. upon their proprietors; this increased the bank capital from 9,800,000l. to 10,780,0007.

1747. The bank dividend was at the rate of five per cent. per annum. It continued at this rate until the year 1753.

1750. A reduction took place in the interest of part of the national debt. The bank held a court at Merchant-Taylor's Hall, and consented to receive a reduced rate of interest upon 8,486,8007. of the debt due to them by the government. The bank also agreed to advance to the government a sum of money to pay off the dissentients.

. 1751. In order to raise the sum promised to be lent to the government, the bank established what was called "Bank Circulation." Books were opened to the public, and any person might enter his name and the sum he was willing to lend to the bank, in case it should be called for. The books being closed, the bank had the power of calling for the whole or any part of the sum subscribed at any time they pleased. The subscribers were to receive 28. per cent. on the total amount of their subscription, and 47. per cent, on the sum actually advanced.

1752. By 25 Geo. II. the balance of annuities granted by 8 Geo. I. was carried to a three per cent. stock, formed in 1731, and they were consolidated into one stock-the new stock is still called "Three per cent. consols." The word consols is a contraction for consolidated.

1753. The bank dividend this year was at the rate of four and three-quarters per cent.

1754. The bank dividend was at the rate of four and a half per cent. It continued at this rate until the year 1764.

1757. The government stock, called "Three per cent. reduced," derives its name from the operation of this year. This stock had borne four per cent. until the year 1750; from that time it paid three and a half per cent., and this year it was reduced to three per. cent.

1758. It was legally determined that those persons who had given value for bank notes stolen from the mail, had a right to receive payment of them from the bank.

In this year occurred the first instance of the forgery of a bank note. It was committed by a person named R. W. Vaughan, who had been a linendraper at Stafford. The note was for 201., the smallest amount then in circulation. He was convicted and executed.

1759. The bank commenced issuing notes and post bills of

157. and 10%. It was proved by experiment, that five hundred and twelve 107. bank notes weighed one pound.

1764. The bank charter was extended or renewed until the expiration of twelve months' notice, to be given after the first day of August, 1786, and until payment by the public to the bank of the demands therein specified; being an extension or renewal of the said charter for twenty-two years (4 Geo. III. c. 25).

In consideration of obtaining this charter the bank advanced 1,000,000%. on exchequer bills until the year 1766, and paid into the exchequer 110,0007.

The dividends this year were raised to five per cent. per annum, at which rate they continued until the year 1767.

1767. The bank dividend was raised to five and a half per cent., and was continued at that rate until the year 1781.

1773. The rate of discount on foreign bills raised from four to five per cent. The discount on both foreign and inland remained at five per cent., until the year 1822.

1775. Bankers were prohibited to issue notes of a less amount than 20s. (15 Geo. III. c. 51).

1777. Bankers were prohibited to issue notes of a less value than 57. (17 Geo. III. c. 30).

1781. The bank charter was extended or renewed until the expiration of twelve months' notice, to be given after the first day of August, 1812, and until payment by the public to the bank of the demands therein specified; being an extension or renewal of the said charter for twenty-six years (21 Geo. III. c. 60). In consideration of obtaining this renewal of their charter, the bank advanced to the government 2,000,000l., for three years, at three per cent.

The bank dividend raised to six per cent., at which rate it continued till the year 1788.

It is legally decided that the bank is not liable to pay forged

notes.

1782. A call of 862,4007., making the total capital of the bank 11,642,4007. There was no further increase of capital until the year 1816.

1786. Previous to this year the bank received an allowance from the government on account of the management of the public debt; that is, for trouble in paying the dividends, superintending the transfer of stock, &c., of 5627. 10s. a million.