before his lordship.(1385)

(M697)

In July, 1670--at a time when the City could ill afford to part with
money--the king sent to borrow L60,000.(1386) He had recently entered into
a secret treaty with France (1 June), whereby he had pledged himself to
assist the French king in subjugating Holland, in return for pecuniary
support. The City agreed to advance the money, but in order to raise the
sum required it became necessary to draw upon the coal dues.(1387) Much
opposition was raised to the loan by the inhabitants,(1388) so that in
November it became necessary for the city Chamberlain to borrow at
interest more than L1,000 to complete the loan.(1389) In addition to the
loan by the City Charles obtained considerable supplies from parliament
when it met in the autumn. The House had been kept in complete ignorance
of the arrangement that had been made with France, and voted the money on
the understanding that it would be used in assisting the Dutch against
Louis and not Louis against the Dutch.

(M698)

In order to keep up the illusion Charles treated the Prince of Orange
(afterwards William III of England), who was on a visit to this country at
the time, with the highest consideration and insisted on the lord mayor
giving "hand and place" to his foreign guest (contrary to city custom) at
an entertainment given by the City in the prince's honour.(1390)

(M699)

As soon as parliament had voted supplies it was prorogued (11 Dec.),
Charles and his "cabal" being determined to have no restraint put upon
them in carrying out the terms of the shameful treaty with France. No long
time elapsed before they had to face the difficulty of an empty exchequer.
It was useless to declare war without funds. Charles was at his wits' end
for money and promised high office to any one who should point out a
successful way of raising it. Clifford and Ashley, two members of the
cabal, put their heads together and hit upon the bold plan of declaring a
_moratorium_, or suspension of payments out of the royal exchequer. For
many years past it had been the custom for the goldsmiths of London and
others who had been in the habit of keeping the money of private
individuals, either on deposit or running account, to lend it to the king,
who could afford to pay them a higher rate of interest than they paid to
their private customers. The money was paid into the exchequer, the
bankers taking assignments of the public revenue for payment of principa