Page:Encyclopædia Britannica, Ninth Edition, v. 3.djvu/333

Rh tors, who shall be elected between the 25th of March and the 25th day of April each year, from among the members of the company duly qualified. &quot; That no dividend shall at any time be made by the said governor and company, save only out of the interest, profit, or produce arising by or out of the said capital, stock, or fund, or by such dealing as is allowed by Act of Parliament. &quot;They must be natural-born subjects of England, or naturalized subjects ; they shall have in their own name, and for their own use, severally, viz., the governor at least 4000, the deputy-governor 3000, and each director 2000, of the capital stock of the said corporation. &quot; That thirteen or more of the said governors and direc tors (of which the governor or deputy-governor must be always one) shall constitute a court of directors, for the management of the affairs of the company, and for the appointment of all agents and servants which may be necessary, paying them such salaries as they may consider reasonable. &quot; Every elector must have, in his own name and for his own use, 500 or more capital stock, and can only give one vote. He must, if required by any member present, take the oath of stock, or the declaration of stock in case he may be one of the people called Quakers. &quot; Four general courts shall be held in every year, in the months of September, December, April, and July. A general court may be summoned at any time, upon the requisition of nine proprietors duly qualified as electors. The majority of electors in general courts have the power to make and constitute bye-laws and ordinances for the government of the corporation, provided that such bye-laws and ordinances be not repugnant to the laws of the king dom, and be confirmed and approved according to the statutes in such case made and provided.&quot; The corporation is prohibited from engaging in any sort of commercial undertaking other than dealing in bills of exchange, and in gold and silver. It is authorised to advance money upon the security of goods or merchandise pledged to it, and to sell by public auction such goods as are not redeemed within a specified time. It was also enacted, in the same year in which the bank was established, by statute 6 William and Mary, c. 20, that the bank &quot; shall not deal in any goods, wares, or merchan dise (except bullion), or purchase any lands or revenues belonging to the Crown, or advance or lend to their majesties, their heirs or successors, any sum or sums of money, by way of loan or anticipation on any part or parts, branch or branches, fund or funds of the revenue, now granted or belonging, or hereafter to be granted, to their majesties, their heirs and successors, other than such fund or funds, part or parts, branch or branches of the said revenue only on which a credit of loan is or shall be granted &quot;by Parliament.&quot; And in 1697 it was enacted, that the common capital or principal stock, and also the real fund, of the governor and company, or any profit or produce to be made thereof, or arising thereby, shall be exempted from any rates, taxes, assessments, or impositions whatsoever during the continuance of the bank ; that all the profit, benefit, and advantage from time to time arising out of the management of the said corporation, shall be applied to the uses of all the members of the said association of the governor and company of the Bank of England, rateably and in proportion to each member s part, share, and interest in the common capital and principal stock of the said governor and company hereby established.&quot; In 1696, during the great recoinage, the bank was involved in great difficulties, and was even compelled to suspend payment of its notes, which were at a heavy discount. Owing, however, to the judicious conduct of the directors, and the assistance of the Government, the bunk got over the crisis. But it was at the same time judged expedient, in order to place it in a situation the better to withstand any adverse circumstances that might afterwards occur, to increase the capitalfroml,200,000to 2,201, 171. In 1 708 the directors undertook to pay off and cancel one million and a half of exchequer bills they had circulating two years before, at 4J per cent., with the interest upon them, amounting in all to 1,775, 028, which increased the permanent debt due by the public to the bank, including 400,000 then advanced in consideration of the renewal of the charter, to 3,375,028, for which they were allowed 6 per cent. The bank capital was then also doubled, or increased to 4,402,342. But the year 1708 is chiefly memorable in the history of the bank, for the Act pre viously alluded to, which declared, that during the con tinuance of the corporation of the Bank of England, &quot; it should not be lawful for any body politic, erected or to be erected, other than the said governor and company of the Bank of England, or of any other persons whatsoever, united or to be united in covenants or partnership, exceed ing the number of six persons, in that part of Great Britain called England, to borrow, owe, or take up any sum or sums of money on their bills or notes payable on demand, or in any less time than six months from the borrowing thereof.&quot; This proviso is said to have been elicited by the Mine Adventurers Company having commenced banking business and begun to issue notes. It will be seen on examination that the proviso did not prohibit the forma tion of associations for general banking business; it simply forbade the issue of notes by associations of more than six partners ; but the issue of notes was regarded us so essen tial to the business of banking, that it came to be believed that joint-stock banking associations were absolutely pro hibited in England, and no such association was founded until after the legislation of 1826 (see p. 322) expressly permitting them to be established. The charter of the Bank of England, when first granted, was to continue for eleven years certain, or till a year s notice after the 1st of August 1705. The charter was further prolonged in 1697. In 1708, the bank, having advanced 400,000 for the public service, without interest, the exclusive privileges of the corporation were prolonged till 1733. And in con sequence of various advances made at different times, the exclusive privileges of the bank were continued by suc cessive renewals till the 1st of August 1855, with the proviso that they might be cancelled on a year s notice to that effect being given after the said 1st of August 1855. We subjoin an account of the successive renewals of the charter, of the conditions under which these renewals were made, and of the variations in the amount and interest of the permanent debt due by Government to the bank, exclusive of the dead weight.

Date of Renewal. Conditions nnder which Renewals were made and Permanent Debt contracted. Pern-.anent Debt. 1694 Charter granted under the Act 5 and 6 &quot;Will. III. c. 20, redeemable upon the expiration of twelve months notice after the 1st August 1705, upon payment by the public to the bank of the de mand therein specified. Under this Act the bank ad vanced to the public 1,200,000 in consideration of their receiving an annuity of 100,000 a year, viz., 8 per cent, interest and 4000 for management. . s. d. 1,200,000 Carrv forward 1,200,000 -J 