uld be dictated by the wants of the National Government, and
convertible, at the will of the holder, into specie. With these obvious
restraints it would accomplish its ends and aims.

The Bank of England, in its early stages, was endangered by various and
extraordinary circumstances. Within three years of its establishment it
was compelled to suspend payment to its depositors in cash, and issued
certificates therefor payable ten per cent. every fortnight. In 1709 the
Sacheverell riots occurred in London, and fears were felt that the bank
would be sacked; but this violence was obviated by well-trained troops.
In 1718 John Law's bank was established in France, and for two years
kept the people in a ferment. This was followed by the South Sea scheme
in England, in 1720, 'a year (the historian Anderson says) remarkable
beyond any other which can be pitched upon for extraordinary and
romantic projects.' The bank, of course, suffered by these speculative
measures, and was repeatedly exposed to a run upon its specie resources.

In 1722 the _rest_ (or reserve fund) was established by the bank, as a
measure to cover extraordinary losses in the future, and to inspire more
confidence among the public as to the ability of the bank to meet
reverses. This fund, in July, 1862, had accumulated to L3,132,500
sterling, or about twenty-one and a half per cent. of the capital.

The first forged note of the Bank of England was presented in the year
1758, or sixty-four years after the bank was established. In 1780 these
forgeries became more numerous, and were so well executed as to deceive
the officers of the bank.

Let us now recur to some of the incidents connected with the bank in
early ages. Of these, the author, Mr. Francis, furnishes numerous
instances.

Among other frauds upon the bank was that of clipping the guineas, by
one of the clerks employed in the bullion office. This occurred in 1767.

The forgery of its notes having been made a capital offence, the waste
of life in consequence was severe. During the eight years, 1795 to 1803,
there were one hundred and forty executions for this crime; and two
hundred and nine between 1795 and 1809; and from 1797 to 1811 the
executions were 469. 'The visible connection between the issue of small
notes and the effusion of blood, is one of the most frightful parts of
this case.'

In 1803 a fraud on the bank to the extent of L320,000 was perpetrated by
Mr. Robert Astlett, a cashier of th