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92 In 1694, the credit of William III.'s Government was so low in London that it was impossible for it to borrow any large sum; and the evil was the greater, because in consequence of the French war the financial straits of the Government were extreme. At last a scheme was hit upon which would relieve their necessities. "The plan," says Macaulay, "was that twelve hundred thousand pounds should be raised at what was then considered as the moderate rate of 8 per cent." In order to induce the subscribers to advance the money promptly on terms so unfavourable to the public, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. They were so incorporated, and the £1,200,000 was obtained.

On many succeeding occasions, their credit was of essential use to the Government. Without their aid, our National Debt could not have been borrowed; and if we had not been able to raise that money we should have been conquered by France and compelled to take back James II. And for many years afterwards the existence of that debt was a main reason why the industrial classes never would think of recalling the Pretender or of upsetting the revolution settlement. The "fund-holder" is always considered in the books of that time as opposed to his "legitimate" sovereign, because it was to be feared that this sovereign would