LAWS. 1773. 13 Geo. S, c. 63, $6. 66 jury, and shall be thereof convicted, he, she, and they, for every such offence, shall incur such pains and penalties as are in and by two acts of parliament, the one made in the fifth year of the late Queen Elizabeth, intituled, "An Act for punishing such Persons as shall procure or commit wilful Perjury, or suborn or procure any Person to com"mit any wilful or corrupt Perjury;" the other, made in the second year of his Majesty King George the Second, intituled, "An Act for "the more effectual Preventing and further Punishment of Forgery, "Perjury, and Subornation of Perjury, and to make it Felony to "steal Bonds, Notes, or other Securities for Payment of Money," directed to be inflicted for offences committed contrary to the said acts. c. 7, $10. c. 8, § 1. BY-LAWS. Glasses to be examined when opened, and sealed up when the WHENEVER two or more ballots are to be taken If at any General Court, nine of the members cluded. A ballot to be taken when demanded by nine members. BANKS, ENGLAND AND INDIA. ALTHOUGH the only legislative enactment which has joint 9 Ann, c. 7. reference to the Bank of England and the East-India Company was passed in the year 1710, and provides that no person can be a director of both corporations at the same time, it may not be uninteresting to take a brief review of the several banks which have been established in Europe, especially that of the Bank of England. The same principles which led to the maintenance and support of such an establishment in this country, induced the East-India Company, at the recommendation of the Government abroad, to sanction the formation of banks at Calcutta; and as doubts were entertained whether it was competent to those Governments to establish such banks within the local limits of the jurisdiction of the several courts of justice in India, an Act was passed in the year 1807, declaring it lawful to and for the several Governments to authorize public banks, with perpetual succession, and with such privileges and franchises as are granted to such corporations in the country. The earliest banks were those of Venice and Barcelona; they were established at the commencement of the fifteenth century. The former arose out of the loans required by the State, and became an establishment for the payment and transfer of the national debt, which had been created on the funding system. That at Barcelona was established by the magistrates, as one of exchange and deposits upon the security of the funds of the city, with the intention of extending those accommodations to foreigners as well as to their own citizens. Foreign bills were negotiated, and assistance was afforded by the directors to the manufacturers, when engaged in purchasing raw materials, especially wool from England. The bank of Genoa was established in 1407. It had been customary customary for the Republic to borrow large sums from the citizens, and to assign certain branches of the public revenue as funds for the payment of interest. The management was placed in the hands of the most respectable citizens, who were to pay the creditors, and account to the State for their disbursements. In process of time, it was thought proper to consolidate the loans which had been made at various periods into one capital stock, to be managed by eight protectors, who were to be elected annually by the creditors or stock-holders. The establishment was denominated "the Chamber of St. "George." In 1609 the famous bank at Amsterdam was incorporated. Mr. Adam Smith, in his "Wealth of Nations," gives a full description of that extensive establishment, which was more a bank for deposits; and at one period was supposed to contain almost all the wealth of the burghers. Regular books were kept for registering the amount deposited, which was not to be of a less sum than 300 guilders; and transfers were made by tickets or notes, specifying the value of which they were the representatives. In 1635 the bank at Rotterdam was established; in 1688 that at Hamburgh; and in 1694 those of Naples and Bologna. The public bank in France, under Mr. Law's scheme, was established in 1716. In By an act of the Parliament of Scotland a bank was established first in 1695, its capital being equal to £100,000. 1727 the Royal Bank at Edinburgh was incorporated under charter from King George I.; its capital £150,000. In 1774 the proprietors of the bank which had been established in 1695, generally called the Old Bank, applied to Parliament for permission to double their capital; their request was granted, and the act of the 14th Geo. III, cap. 32, passed accordingly. In 1784, by the 24th Geo. III, cap. 12, they were allowed to increase their capital in the further sum of £100,000, making £300,000. In 1792 they were empowered to increase their capital stock to £600,000. The shares of the bank, originally £83. 68. 8d., sold at £180; and in 1794 they were permitted to increase the capital £400,000 more, making the total capital £1,000,000. In 1721 an unsuccessful attempt was made to establish a bank in Ireland. In 1783 a public bank was opened in Dublin, with an original capital of £600,000. With respect to England, an attempt appears to have been made in 1683, by a Dr. Chamberlain and a Mr. Murray, to establish a bank for circulating bills of credit on merchandize to be pawned there, and also for lending money to the industrious poor on pawns, at six per cent., but the whole project failed. Shortly after the above period, the necessities of the State were such as to render it expedient to raise loans for the purpose of defraying the unavoidable expenses of the war in which Great Britain was involved. The wants of Government only incited the monied men to demand more exorbitant profits;-eight per cent. on the land-tax, besides additional premiums, did not satisfy them. Other anticipations of the public revenues were much higher, and all contracts with the Government were made at forty and fifty per cent. above the current value of the supplies. To remedy these excessive evils, and with the view of bringing down the high rates of interests and premiums paid by Government, it was deemed expedient to establish a public transferable fund of interest; also that the same should be for the convenience of daily receipts and payments. It was contended by those whose interests were likely to be effected, that none but republics were calculated for the existence of a bank; at the same time, it was urged as a reason against it, that it would tend to make the King absolute. Parliament determined to countenance the measure, having passed an act for granting certain rates and duties on tonnage of ships, beer, ale, and other liquors, they also empowered their Majesties to incorporate any persons who should voluntarily advance £1,300,000, and to grant them a yearly allowance of £100,000; being, at the rate of eight per cent., £96,000, and £4,000 a-year for management: the corporation to have the name of the GOVERNOR AND COMPANY OF THE Bank of ENGLAND. The charter was issued on the 27th July 1694. In 1708, by the statute of Queen Anne, no body politic other than the Bank, or any other persons who may be united in partnership, above six persons, were to issue notes or 5th and 6th William and Mary. bills payable on demand in less than six months. In 1711, by the act of the 9th of Anne, cap. 7, a clause was inserted, disabling any person from being a Director of the Bank and the East-India Company at the same time. The capital of the Bank in 1717 was £5,375,027. In 1744 £10,700,000. In 1745, in consequence of the alarm raised in London by the progress of the Pretender's son, there was a great run on the Bank. The Directors endeavoured to make the cash hold out by paying in silver, and that in sixpences. More effectual measures were adopted by a meeting of merchants, bankers, and traders, who drew up a paper, wherein they declared their resolution to support the credit of the Bank, by receiving their notes in all payments, and using their utmost endeavours to pay them away to all persons receiving payments. The resolution was soon signed by 1,100 persons, and had the effect of quieting 13 Geo. 3, apprehension and restoring confidence. In 1773, imitating the water-mark of the Bank-note paper was made punishable with death, and no person was allowed to engrave any bill or promissory note containing the words "Bank of England," c. 79. or "Bank Post Bill," under penalty of imprisonment. In 1781, the 60th of Geo. III. was passed, granting a renewal of the Bank's exclusive privilege to the year 1812, with one year's notice upon the lending the public two millions at three per cent. In September 1781 the capital of the Bank was increased, by an addition of eight per cent. to the capital stock, from £10,780,000 to £11,642,400, and their dividends were raised from five and a half to six per cent. The stamp-duties imposed on inland bills of exchange by the act of 1783, were extended in 1784 to foreign bills of exchange, and to receipts for sums above forty shillings. The notes of the Bank of England were exempted from stamp-duties, the 23 Geo. 3, Bank paying for that indulgence a composition of £12,000 annually. In 1778 the dividends were raised to seven per cent. In 1791 the unclaimed dividends in the public funds amounted to £660,000. Mr. Pitt proposed that £500,000 of that dormant money should be applied to the public service: the Directors of the Bank opposed it. A compromise was effected, by which that sum was made as a loan from the Bank to c. 49. the |
