Page:Craik History of British Commerce Vol 2.djvu/127

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BRITISH COMMERCE.

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money, stock, and riches of the kingdom; but what he conceived he had less reason to anticipate was the difficulty he experienced in prevailing upon the government to go into his scheme. King William was abroad when the proposal was brought before the cabinet in 1693, where long debates took place upon it in the presence of the queen; but at last an act of parliament was passed (5 and 6 W. and M. c. 20), which, in imposing certain rates and duties on tonnage of ships, and upon beer, ale, and other liquors, authorised their majesties to grant a commission to take subscriptions for 1,200,000l. of the whole 1,500,000l. which the new taxes were expected to raise, and to incorporate the subscribers into a company, under the name of the Governor and Company of the Bank of England. Interest at eight per cent, was to be allowed upon the money advanced, and also 4000l. a year for management;^[1] making the whole annual payment to the company 100,000l. The company were to be enabled to purchase lands, &c., and to exercise all the usual powers of bodies corporate; but were not to trade in the buying or selling of any goods or merchan-

↑ "This is the first instance," observes Anderson, "of any national fund being managed by any other than the crown officers at the Exchequer: which new method of allowing a round sum for charges of management has ever since been followed, not only with respect to the Bank, but also to the East India and South Sea Companies; which allowances for the expense of management, that is, for salaries of governors, directors, clerks, office-rent, &c., were at first usually computed from what similar funds had formerly cost the crown when managed at the Exchequer, though generally, in later times, I conceive, with some saving to the public in this new method." Chron. Com. ii. 604. The entire management of the public debt has since been confided to the Bank; and the annual sum now allowed to it for that service is about 130,000l. Previous to the renewal of the charter in 1833 the allowance exceeded 250,000l.; and before 1786 it was at the still higher rate of 562l. 10s. for every million of the debt. But even this was a great reduction upon the original rate which was not less than 3333l. 6s. 8d. per million.

[1] "This is the first instance," observes Anderson, "of any national fund being managed by any other than the crown officers at the Exchequer: which new method of allowing a round sum for charges of management has ever since been followed, not only with respect to the Bank, but also to the East India and South Sea Companies; which allowances for the expense of management, that is, for salaries of governors, directors, clerks, office-rent, &c., were at first usually computed from what similar funds had formerly cost the crown when managed at the Exchequer, though generally, in later times, I conceive, with some saving to the public in this new method." Chron. Com. ii. 604. The entire management of the public debt has since been confided to the Bank; and the annual sum now allowed to it for that service is about 130,000l. Previous to the renewal of the charter in 1833 the allowance exceeded 250,000l.; and before 1786 it was at the still higher rate of 562l. 10s. for every million of the debt. But even this was a great reduction upon the original rate which was not less than 3333l. 6s. 8d. per million.

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