nly to impose a new duty on tonnage for the benefit of such persons
as should advance money towards carrying on the war, was really a bill
creating the greatest commercial institution that the world had ever
seen.

The plan was that twelve hundred thousand pounds should be borrowed by
the government on what was then considered as the moderate interest
of eight per cent. In order to induce capitalists to advance the money
promptly on terms so favourable to the public, the subscribers were to
be incorporated by the name of the Governor and Company of the Bank of
England. The corporation was to have no exclusive privilege, and was to
be restricted from trading in any thing but bills of exchange, bullion
and forfeited pledges.

As soon as the plan became generally known, a paper war broke out as
furious as that between the swearers and the nonswearers, or as that
between the Old East India Company and the New East India Company. The
projectors who had failed to gain the ear of the government fell
like madmen on their more fortunate brother. All the goldsmiths and
pawnbrokers set up a howl of rage. Some discontented Tories predicted
ruin to the monarchy. It was remarkable, they said, that Banks and Kings
had never existed together. Banks were republican institutions. There
were flourishing banks at Venice, at Genoa, at Amsterdam and at Hamburg.
But who had ever heard of a Bank of France or a Bank of Spain? [522]
Some discontented Whigs, on the other hand, predicted ruin to our
liberties. Here, they said, is an instrument of tyranny more formidable
than the High Commission, than the Star Chamber, than even the fifty
thousand soldiers of Oliver. The whole wealth of the nation will be in
the hands of the Tonnage Bank,--such was the nickname then in use;--and
the Tonnage Bank will be in the hands of the Sovereign. The power of the
purse, the one great security for all the rights of Englishmen, will be
transferred from the House of Commons to the Governor and Directors of
the new Company. This last consideration was really of some weight, and
was allowed to be so by the authors of the bill. A clause was therefore
most properly inserted which inhibited the Bank from advancing money to
the Crown without authority from Parliament. Every infraction of this
salutary rule was to be punished by forfeiture of three times the sum
advanced; and it was provided that the King should not have power to
remit any part of the penalty.

The pl