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Banks being establish'd by Publick Authority, ought also, as all Publick things are, to be under Limitations and Restrictions from that Authority; and those Limitations being regulated with a proper regard to the Ease of Trade in General, and the Improve∣ment of the Stock in Particular, would make a Bank a Useful, Profitable Thing indeed.
First, A Bank ought to be of a Magnitude proportion'd to the Trade of the Countrey it is in; which this
Bank is so far from, that 'tis no more to the Whole, than the least Gold∣smith's Cash in Lombardstreet is to the Bank: From whence it comes to pass, that already more Banks are contri∣ving; and I question not but Banks in London will e're long be as frequent as Lotteries: The Consequence of which in all Probability will be, the diminishing their Reputation, or a Civil War with one another. 'Tis true, the Bank of England has a Ca∣pital Stock; but yet was that Stock wholly clear of the Publick Concern of the Government, it is not above a Fifth Part of what would be necessary to manage the whole Business of the Town; which it ought, tho' not to do, at least to be Able to do: And I suppose I may venture to say, Above one half of the Stock of the present Bank is taken up in the Affairs of the Exchequer.
I suppose no body will take this Discourse for an Invective against the Bank of England; I believe it is a ve∣ry Good Fund, a very Useful one, and a very Profitable one: It has been Useful to the Government, and it is Profitable to the Proprietors; and the establishing it at such a Juncture, when our Enemies were making great boasts of our Poverty and Want of Money, was a particular Glory to our Nation, and the City in particular. That when the Paris Gazette inform'd the World, That the Parliament had indeed given the King Grants for raising Money in Funds to be paid in remote Years; but Money was so scarce, that no An∣ticipations could be procured: That just then, besides Three Millions paid into the Exchequer that Spring on other Taxes by way of Advance, there was an Overplus-Stock to be found of 1200 000 Pounds sterling or (to make
it speak French) of above Fifteen Mil∣lions, which was all paid Voluntarily into the Exchequer, in less than _____ _____ Besides this, I believe the present Bank of England has been ve∣ry useful to the Exchequer, and to supply the King with Remittances for the Payment of the Army in Flanders; which has also, by the way, been very profitable to it self. But still this Bank is not of that Bulk that the Business done here requires; nor is it able, with all the Stock it has, to procure the great propos'd Benefit, the low'r∣ing the Interest of Money: Whereas all Foreign Banks absolutely govern the Interest, both at Amsterdam, Ge∣noa, and other places. And this De∣fect I conceive the Multiplicity of Banks cannot supply, unless a perfect Understanding could be secur'd be∣tween them.
To remedy this Defect, several
Methods might be propos'd: Some I shall take the Freedom to hint at.
First, That the present Bank in∣crease their Stock to at least Five Mil∣lions sterling, to be settled as they are already, with some small Limitations to make the Methods more beneficial.
Five Millions sterling is an immense Sum; to which add the Credit of their Cash, which would supply them with all the Overplus-Money in the Town, and probably might amount to half as much more; and then the Credit of Running-Bills, which by circulating would no question be an Equivalent to the other half: So that in Stock, Credit, and Bank-bills, the Balance of their Cash would be al∣ways Ten Millions sterling: A Sum that every body who can talk of, does not understand.
But then to find Business for all this Stock; which though it be a
strange thing to think of, is neverthe∣less easy when it comes to be exa∣min'd. And first for the Business; This Bank shou'd enlarge the Number of their Directors as they do of their Stock; and should then establish seve∣ral Sub-Committees, compos'd of their own Members, who shou'd have the directing of several Offices rela∣ting to the distinct sorts of Business they referr'd to; to be over-rul'd and govern'd by the Governor and Di∣rectors in a Body, but to have a Conclusive Power as to Contracts. Of these there should be
One Office for Loan of Money for Customs of Goods; which by a plain Method might be so order'd, that the Merchant might with ease pay the highest Customs down; and so by al∣lowing the Bank 4 per Cent. Advance, be first sure to secure the 10 l. per Cent. which the King allows for Prompt
Payment at the Custom-house; and be also freed from the troublesome work of finding Bonds-Men, and Securi∣ties for the Money; which has expos'd many a Man to the Tyranny of Ex∣tents either for himself or his Friend, to his utter Ruin; who under a more moderate Prosecution, had been able to pay all his Debts; and by this Method has been torn to pieces, and disabled from making any tolerable Proposal to his Creditors. This is a Scene of Large Business, and would in proportion employ a Large Cash: And 'tis the easiest thing in the world to make the Bank the Paymaster of all the Large Customs, and yet the Mer∣chant have so honourable a Possession of his Goods, as may be neither any Diminution to his Reputation, or any Hindrance to their Sale.