300

THE NATURE AND CAUSES OF

nuity of one hundred thousand pounds: or for 96,000/. ayear interest, at the rate of eight per cent, and 4000/. a yearfor the expense of management. The credit of the new go-vernment, established by the Revolution, we may believe,must have been very low, when it was obliged to borrow atso high an interest.

In 1697, the bank was allowed to enlarge its capital stockby an ingraftment of 1,001,171/. 10s. Its whole capitalstock, therefore, amounted, at this time, to 2,201,171/. 10s.This ingraftment is said to have been for the support of pub-lic credit. In 1696, tallies had been at forty, and fifty, and *sixty per cent, discount, and bank notes at twenty per cent.*During the great re-coinage cf the silver, which was goingon at this time, the bank had thought proper to discontinuethe payment of its notes, which necessarily occasioned 'theirdiscredit.

In pursuance of the 7th Anne, c. vii. the bank advancedand paid into the exchequer the sum of 400,000/. making inall the sum of 1,600,000/. which it had advanced upon itsoriginal annuity of 96,000/. interest, and 4000/. for expenseof management. In 1708, therefore, the credit of governmentwas as good as that of private persons, since it could borrowat six per cent, interest, the common legal and market rateof those times. In pursuance of the same act, the bank can-celled exchequer bills to the amount of 1,775,027/. 17s. I0^d.at six per cent, interest, and was at the same time allowed totake in subscriptions for doubling its capital. In 1708,therefore, the capital of the bank amounted to 4,402,343/.;and it had advanced to government the sum of 3,375,027/.

17 s. 10 \d.

By a call of fifteen per cent, in 1709, there was paid inand made stock 656,204/. Is. 9 d.\ and by another of ten percent, in 1710, 501,448/. 12s. 1 Id. In consequence of thosetwo calls, therefore, the bank capital amounted to 5,559,995/.

14s. 8 d.

In pursuance of the 3d George I. e. 8. the bank deliveredup two millions of exchequer bills to be cancelled. It hadat this time, therefore, advanced to government 5,375,027/.

17s. 1 Or/. In pursuance ofthe 8th George I. c. 21. the bankpurchased ofthe South Sea Company , stock to the amount of4,000,000/.: and in 1722, in consequence of the subscrip-tions which it had taken in for enabling it to make this pur-

* James Postletbwnite’i History of tile public Revenue, page 301.