It was now reduced to 4507. a million; the bank being at the same time entitled to a considerable allowance for trouble in receiving contributions on loans, lotteries, &c. This scale of allowance was continued until the year 1808.

1788. The bank dividend raised to seven per cent., at which rate it continued until the year 1807.

1791. A bill was brought into parliament to render 500,0007. of the unclaimed dividends on the public funds available for the service of the public; but the bank agreed to lend that sum to the government without interest, and the bill was withdrawn.

1792. A calculation was made with a view to ascertain the number of days that a bank note of each denomination remained in circulation in this year. The following are the results:—

1793. An Act of Parliament was passed (33 Geo. III. c. 32), declaring that the bank should not be subject to any penalties for advancing money to the government for the payment of bills of exchange, accepted by the commissioners of his Majesty's treasury, and made payable at the bank. The amount of sums. so advanced was required to be annually laid before parliament. According to their original charter, the bank were prohibited lending money to the government without the consent of parliament, under a penalty of three times the sum lent: onefifth part of which was to go to the informer.

This was a year of great commercial distress: twenty-two commissions of bankruptcy were issued against country bankers. 1794. The bank commenced issuing notes for 57.

1795. The bank having resolved to reduce their discounts, placed the following notice in the discount office:

"Bank of England, 31st December, 1795. "Pursuant to an order of the Court of Directors:

"Notice is hereby given,

"That no bills will be taken in for discount at this office after 12 o'clock at noon, or notes after 12 o'clock on Wednesday.

"That in future, whenever the bills sent in for discount shall in any day amount to a larger sum than it shall be resolved to discount on that day, a

D

pro ratâ proportion of such bills in each parcel as are not otherwise objectionable, will be returned to the person sending in the same, without regard to the respectability of the party sending in the bills, or the solidity of the bills themselves.

"The same regulation will be observed as to the notes."

1797. THE SUSPENSION OF CASH PAYMENTS.

This took place on Monday, Feb. 27th, in consequence of an order in council, which ran in the following terms:

"Upon the representation of the Chancellor of the Exchequer, stating that from the results of the information which he had received, and of the inquiries which it has been his duty to make, respecting the effects of the unusual demand for specie that has been made upon the metropolis, in consequence of ill-founded or exaggerated alarms in different parts of the country; it appears, that unless some measure is immediately taken, there may be reason to apprehend a want of a sufficient supply of cash to answer the exigencies of the public service. It is the unanimous opinion of the Board, that it is indispensably necessary for the public service, that the directors of the Bank of England should forbear issuing any cash in payment, until the sense of parliament can be taken on that subject, and the proper measures adopted thereupon, for maintaining the means of circulation and supporting the public and commercial credit of the kingdom at this important conjuncture; and it is ordered that a copy of this minute be transmitted to the directors of the Bank of England, and they are hereby required, on the grounds of the exigency of the case, to conform thereto until the sense of parliament can be taken as aforesaid."

Among the crowd assembled at the bank, with a view of demanding gold, handbills were distributed, of which the following is a copy :

"Bank of England, Feb. 27th, 1797.

"In consequence of an order of his Majesty's Privy Council, notified to the bank last night, a copy of which is hereunto annexed, the governor, deputy-governor, and directors of the Bank of England think it their duty to inform the proprietors of the bank stock, as well as the public at large, that the general concerns of the bank are in a most affluent and prosperous situation, and such as to preclude every doubt as to the security of its notes. The directors mean to continue their usual discounts for the accommodation of the commercial interest, paying the amount in bank notes, and the dividend warrants will be paid in the same manner."

On the same day was held a meeting of merchants, bankers, and others, the Lord Mayor in the chair, when the following resolution was unanimously passed :

"That we, the undersigned, being highly sensible how necessary the preservation of public credit is at this time, do most readily declare, that

we will not refuse to receive bank notes in payment of any sum of money to be paid to us, and we will use our utmost endeavours to make all our payments in the same manner.

This resolution was left for signature at several of the most respectable taverns, and a similar resolution was subsequently adopted by other public assemblies.

Immediately afterwards, the House of Commons appointed committee to enquire into the affairs of the bank. The committee reported, that "The total amount of outstanding demands on the bank, on the 25th of July, was 13,770,3907.; and that the total amount of the funds for discharging those demands (not including the permanent debt due from government of 11,686,8007., which bears an interest of three per cent.) was 17,597,2807.; and the result is, that there was, on the 25th day of February last, a surplus of effects belonging to the bank, beyond the amount of their debts, amounting to the sum of 3,825,890, exclusive of the above-mentioned permanent debt of 11,684,8007., due from government." From accounts since published, it appears that the amount of gold and silver in possession of the bank was reduced by the previous run to 1,086,170%.

1797. March 3. The bank was authorized to issue notes under 57.; 37 Geo. III. c. 28. It is entitled "An Act to remove doubts respecting promissory notes of the Governor and Company of the Bank of England, for payment of sums of money under 51." Accordingly, on the 10th of March the bank issued, for the first time, notes for 17. and 27.

May 3. THE BANK RESTRICTION ACT PASSED. It is the 37 Geo. III. c. 45, and is entitled, "An Act for continuing, for a limited time, the restriction contained in the minute of council of the 26th of February, 1797, on payment of cash by the bank." By this Act the bank directors were indemnified against any legal proceedings on account of having complied with the order of council. They were not permitted to issue cash, except for any sum under twenty shillings. But if any person lodged cash in the bank, he might be repaid in cash to the extent of threefourths of the sum lodged; but the sum lodged must not be less than 5007. The bank was also allowed to advance to the bankers of London, Westminster, and Southwark, any sum of cash not exceeding in the whole 100,0007.; and also 25,000. each to the Bank of Scotland and the Royal Bank of Scotland,

during the continuance of this Act. The bank could not be sued for payment of any of their notes for which they were willing to give other notes; and no person could be held to special bail upon any process issuing out of any court, unless the affidavit made for the purpose stated, also, that the party had made no offer to pay in bank notes. This Act was to be in force till the 24th day of the following June, a duration of fifty-two days.

1797. June 22. Another Act was passed, continuing the bank restriction until one month after the commencement of the then next session of parliament.

Nov. 30. A third Act passed, continuing the restriction until six months after the conclusion of the war.

An Act was also passed (37 Geo. III. c. 32) suspending the Acts passed in 1777, which prohibited bankers issuing notes below the amount of 57., and the country bankers commenced issuing notes of 17.

1799. Jan. 3. The bank gave notice, "That on and after the 14th instant, they would pay in cash all fractional sums under 57.; and that on and after the 1st day of February next, the bank will pay cash for all notes of 17. and 27. value that are dated prior to the 1st day of July, 1798, or exchange them for new notes of the same value, at the option of the holders."

This year the bank proprietors received a bonus of ten per cent. on their capital. The bonus was made in five per cents., 1797.

1800. The bank charter was extended or renewed until the expiration of twelve months' notice, to be given after the 1st day of August, 1833, and until payment by the public to the bank of the demands therein mentioned; being an extension or renewal of the said charter for twenty-one years (40 Geo. III. c. 28). In consideration of obtaining this renewal of their charter, the bank agreed to lend the government the sum of 3,000,000l. without interest for six years.

The 40 Geo. III. c. 36, was enacted to enable courts of equity to compel a transfer of stock in suits, without making the Bank of England, or the East India Company, or the South Sea Company, partners in the sales.

1801. 41 Geo. III. c. 57, was enacted "For the better prevention of the forgery of the notes and bills of exchange of persons carrying on the business of bankers."

"After July 10th, 1801, no person shall use or make any frame or mould for making paper, with the name or firm of any persons or body corporate appearing in the substance of the paper, without a written authority for that purpose: or shall make or vend such paper, or cause such name or firm to appear in the substance of the paper, whereon the same shall be written or printed,-on penalty of being imprisoned for the first offence, not exceeding two years, nor less than six months; and for the second offence, transported for seven years.

"No person shall engrave, &c., any bill or note of any person or banking company, or use any plate so engraved, or any device for making or printing such bill or note, nor shall knowingly have in his custody such plate or device, or shall utter such bill or note, without a written authority for that purpose, under a like penalty.

"No person shall engrave, &c., on any plate, any subscriptions subjoined to any bill or note of any person or banking company, payable to bearer on demand, or have in his possession any such plate, on penalty, for the first offence, of being imprisoned not exceeding three years, nor less than twelve months; and for the second, transported for seven years."

1801. The proprietors of bank stock received a bonus of five per cent. on their capital in navy five per cents.

1802. The war having been concluded by the peace of Amiens, the Bank Restriction Act would have expired six months afterwards, but it was by a new Act continued in force till the 1st day of March, 1803.

The bank proprietors received a bonus of two and a half per cent. on their capital in navy five per cents.

1803. Feb. 28. The Bank Restriction Act was continued until six weeks after the commencement of the next session of parliament.

Dec. 15. War having recommenced, the Bank Restriction Act was continued until six months after the conclusion of a definitive treaty of peace.

The bank is said to have lost this year no less sum than 300,0007., through a fraud committed by one of their principal cashiers, Mr. Astlett.

1804. The bank proprietors received a bonus in cash of five per cent. on their capital.

In consequence of the scarcity of silver, the bank issued fiveshilling dollars. These dollars had on the obverse side an impression of his Majesty's head, and the following superscription: "Georgius III. Dei Gratia Rex;" and on the reverse side, the impression of Britannia and the following: "Five shillings dollar. Bank of England, 1804." The bank subsequently