When the King makes a denizen by letters patent, he may purchase lands, and his 1 Inst, 8. issue, born afterwards, may inherit them; but those he had before shall not: and Rep. though a denizen is enabled to purchase, he cannot inherit the lands of his ancestors, 52. but as a purchaser he may enjoy them; and he may take lands by devise.

Aliens made denizens are incapable of offices in the government, to be members Parliament, &c.

of

67. 5 Rep.

12 w. 3.

c. 2.

1 Gen. 2.

It is so high a prerogative to make aliens denizens, that the King cannot grant his c.4.7 Rep. power over to any other.

Wood's
Inst. 22.

OF BANKS AND BANKERS.

A BANK is a public office for keeping and circulating money, to be employed in exchanges, discounts, government-loans, &c. or to be otherwise disposed of for the profit of the proprietors.

In other words, a bank may be denominated a common repository, where many persons agree to keep their cash, to be always ready at their call, or subject to their directions.

The word bank is derived from the Italian, Banca or Banco, as those of that nation used formerly to exercise the function of exchangers, or bankers, in all the public places, or bourses of their trading cities, seated on forms with benches to count their cash, write their letters, and draw their bills of exchange on; and some authors add, that when any of them had the misfortune to fail, his bench was broke, either as a mark of infamy, or to put another in its place, and from this occurrence they pretend the word bankrupt, in French banqueroute, is derived.

And from which circumstance, we may see that this business was originally confined to private persons; but the advantages arising from it to commerce being very diffusive and general, several states thought proper to incorporate some of the most considerable of their subjects for the purposes of carrying it on with a greater security to the concerned; whilst other potentates retain the protection and management in their own hands.

Before we proceed to an illustration of the constitutions of the most reputable banks now existing, in most of the capital cities of Furope, which will be done according to the order of time in which they were instituted; it will be necessary just to mention the different kinds of banks, as they differ widely from each other in their principles and practice.

Some are instituted wholly on the public account, and put under the direction of the magistrates, who are obliged to take such care of the management, that the money or bullion deposited therein, shall always be kept for the use of the proprietors, and shall never be let out for profit or advantage; of this kind is the famous bank of Amsterdam, which is administered with so great a strictness and fidelity, that it is said, a magistrate, who was one of the directors of it, was sentenced to death, for making use of a sum of money but for one day, though he paid it in the next. Wherefore, from an opinion the proprietors entertain of the equity of its administration, they judge themselves so secure that their money lies always ready to answer their demands, that they seldom draw out large sums, but make their mutual payments by transferring the sums from one man's account to another's; and from this great ease and convenience it is come to pass, that payments made by assignments on this bank are valued at from 3 to 5 and 6 per cent. above the payment of money, which difference between the bank and current money is called the agio.

VOL. I.

3 U

A second sort of banks is such as consist of a company of monied men, who being duly established and incorporated by the laws of their country, agree to deposit a considerable fund or joint stock, to be employed for the profit and advantage of the whole society, in all those ways which are compatible with the nature of such an undertaking; as borrowing upon their own credit; and lending money upon good securities; buying and selling bullion, gold and silver, and foreign specie; discounting of bills of exchange, or other secure debts; receiving and paying the cash of other persons; and of this kind is the Bank of England.

A third sort is the banks of private men, of which we shall treat distinctly in a separate chapter.

As to the first kind, it is certain, that nothing can be so infallibly safe, as where the value is kept always ready in specie; and here also the ease and security of traders are effectually provided for, in the receipts and payments of their money; but yet this kind of bank is so much the less useful to the public, as it can neither be helpful to government on emergencies, nor to traders, in accommodating them with money.

The security of the second kind consists in the certain knowledge of its fund or stock, the solidity of its institution, and the incorruptible fidelity of its management; wherein it is always the interest of the concerned to give the public the utmost satisfaction and in this respect the Bank of England must be secure beyond all apprehension to the contrary, as well on account of the great sums they have lent to government, upon the faith of the British Parliament, which is sufficient always to keep them above all suspicion of failure, as from the known skilful and profitable management of those who have been successively concerned in the direction. Besides, as an incorporated body, they are not, like private men, subject to death. And as this kind of bank has all the conveniences of the former, it has also this beyond it, that its capacity of lending money is an invaluable accommodation to the community, since it will always have a tendency to keeping the interest of money low, and be an effectual and permanent check to usury, which is the greatest bane to trade and navigation.

Of the Bank of Genoa.

The most considerable corporate body in the republic of Genoa, is that which is called St. George's Bank, the most ancient establishment of the kind in Europe, though the date of its institution is not certainly known: but we may be assured it is of much greater antiquity than that of Venice, the republic of Genoa being founded A. D. 950. The fund was constituted from such branches of the public revenue as were set apart by the government, and such sums as should be borrowed during the exigencies of the commonwealth; which fund hath never been violated, under the greatest troubles and perplexities of the state. The administration of this bank being for life, and partly in the hands of the citizens, gives this body a great authority in the state, and a powerful influence over the people. This bank is generally considered as a great load to the state, and as a kind of inferior senate, which breaks the uniformity of their aristocratic government. The people, however, receive no small advantage from it, both as it is a check to their aristocracy, and distributes the power among more private members of the republic; and while the state kept itself clear of the quarrels of the great belligerent powers of Europe, this bank maintained a circulation for the support of public credit and commerce; but having unhappily taken part in their wars in the last and the present century, they exhausted their public treasure, their commerce declined, and with it their public credit, and the reputation of St. George's Bank, which will ›never recover its original importance.

Of the Bank of Venice.

This is commonly called Banco del Gero, on account of the continual rotation of its cash, and is properly a receptacle, or office for public deposits, or a general and perpe tual cash, currency for all merchants and traders.

It was established by a solemn edict of the republic, which ordains, that all payments, as well of large purchases, as bills of exchange, shall be only made in bank; and that all debtors and creditors shall be obliged to pay and receive their money there, which is effected by a single transfer from the accounts of the one to that of the other; so that the credit and debit only change names, without any real or effective money being paid.

However, payments are sometimes made in cash, particularly for the retail business; or when strangers insist on ready money, or some persons are better pleased to have their funds in their own keeping; and the necessity of sometimes making these effective payments, was the occasion of opening a ready money office, for those who required it; and it has been experienced, that this current cash has not caused any sensible diminution in the funds of the bank; but, on the contrary, the liberty of withdrawing the money at the proprietor's pleasure, has rather increased than lessened them.

By this means the republic, without restraining the liberty of trade, and without pay ing any interest, makes herself mistress of five millions of ducats, at which the funds of this bank are fixed, and at the same time supplies the necessities of state, without being obliged to have recourse to extraordinary impositions; and the good order always ob served in the bank's administration, for which the republic is security, has rendered its establishment so solid, that there is room to judge it will last as long as the govern

ment itself.

In this bank the writings are kept, in liras, soldi, and denari de grossi, of which one lira is worth ten ducats de banco, or two hundred and forty grossi, the ducat being composed of twenty-four grossi.

The money of exchange, is always understood to be bank ducats, which are imaginary, and a hundred of these make a hundred and twenty ducats current, so that the difference between bank and current ducats is twenty per cent. the brokers being prohibited to negociate at a higher price.

The bank is shut up four times a year, viz. the 20th of March, 20th of June, 20th of September, and the 20th of December; and it remains shut each time for the space of twenty days: however, this does not prevent their negociations, as well in ready money as bank, to be wrote off at its opening.

The bank is likewise shut upon extraordinary occasions, viz. eight or ten days at the carnival, and as long for Passion week; it is likewise shut every Friday, when there is no holiday, to make their balance.

The bills of exchange drawn for the fairs, or otherwise, must all be payable in bank, and a seller cannot refuse payment of his goods in the same manner, except by an agreement to the contrary.

Bills of exchange here have six days grace, and in default of payment, the protest must be made on the sixth day, otherwise the holder stands to the damage; but from the moment the bank is shut, a debtor cannot be forced to the payment of bills, neither in ready money nor otherwise, nor can be protested against for it, till on the sixth day after the bank opens, except when there is a failure, in which case every one may use their diligencies, provided their bills are fallen due.

Of the Bank of Amsterdam.

This bank, formerly supposed to be the most considerable and richest in Europe; was established on the 31st of January, 1609, by the authority of the States General, under the direction of the burgomasters of this city, who are security for the same, and constituted themselves perpetual cashiers for its inhabitants, to whom it is of the greatest conveniency and service, as millions may be paid in a day, by the simple assig nations of a draught on it, without the intervention of any real cash.

The funds of this bank are related to be so great as is hardly credible, many authors quoting their value to be, at least, that of three thousand tons of gold, and these rated at a hundred thousand guilders per ton, make, at only thirty-five schillings per pound. sterling, the prodigious sum of 58,571,4061. but as this value is unascertained, I shall give Sir William Temple's opinion of it instead of my own, who speaking of this bank, in his Remarks on the State of the United Provinces, says, " In the city of Amsterdam is the bank, so celebrated in all the world, on account of the greatness of its treasure, which exceeds that of all others hitherto known, real or imaginary: the placewhere it is lodged is a great vault under the town-house, provided with doors, locks, and every other security necessary for its safety and preservation; and it is certain, that. when any one goes to see the bank, he will find. there a very great treasure in bars and ingots of silver, in plate, and an incredible quantity of sacks full of metal, said to be gold and silver, as I believe, in effect they are; though as there are none but the burgomasters who have any direction in this bank, and as there is no one who keeps any account of what is brought in or carried out at different times, it is impossible to know, or even guess with any exactness, the proportion there is between the real and ima ginary treasure of it; as it does not solely consist in the effective gold and silver, but. also in the credit of the city, and of the state, of which the funds and revenues are as great as that of some kingdoms, and it is obliged to be answerable for all the money brought in the greatest payments made between the merchants of this city, are in bank bills, so that it may be said, that this bank is properly the general chest, in which every one incloses his money, because they deem it there to be in greater security, both for paying and receiving, than if they had it in their own coffers; and the bank is so far from being obliged to pay an interest on the money deposited in it, that what is. there is worth more than the current money, in which small payments are handily made, because it neither admits nor receives any cash, but of the best and most valuable species, and those that are most current, as well in Germany as in the Low Countries." By its establishment, it is ordained, that the payment of bills of exchange, and wholesale goods, shall be only in bank, except the sum be under three hundred guilders, and nothing less than this can be wrote into bank, without paying six stivers, except. it be by the East and West India Companies, who are exempt from this duty, and may write in what small sums they please, so that the debtor is obliged to carry his money in there, and the creditor from thence to receive it.

The payments are made by a simple transfer, or assignation of one to the other, so that he that was creditor on the bank books before, becomes debtor from the moment he has assigned any sum to another, who is wrote down as creditor in his room.

Although the Bank of Amsterdam has no account of current cash open like that of Venice, this does not hinder, notwithstanding its regulation, but that it sometimes makes payments in ready money; and there are particular cashiers without the bank, who make the payments for an eighth per cent. that is to say, two stivers and a half for a hundred guilders.

This contravention is tolerated as beneficial to trade, forasmuch as sometimes one is

obliged to make a payment in effective money, more especially in retail affairs; and it often happens that some persons are better pleased to have their cash ready for use elsewhere, than in the public bank, either for negociations or to pay bills of exchange, when their express tenor is to be paid not in bank, but in ready current money.

It is by this bank, that the city of Amsterdam is supported in so much splendour and magnificence, and without interrupting commerce, possesses the greatest part of the cash of its inhabitants, who are not less rich for having their fortunes in the bank, as these they may convert into ready money whenever they please, and again bring them into bank when it shall be agreeable.

And to carry on this sort of business or exchange, an application need only be made to certain merchants, or particular cashiers, who are commonly to be met with between ten and eleven o'clock at the Dam, or before the town-house or bank, with whom the negociation may be adjusted for an agio, which they endeavour to effect on the highest terms when they are sellers, and on the lowest they possibly can when they buy.

The difference between buying and selling, is ordinarily from a sixteenth to an eighth per cent. and the agio varies from three to six per cent. sometimes more, and at other times less, according to the difference in exchange or the scarceness of the specie. When a payment is made in ducatoons, or rix-dollars, and not in a small kind of money, less is given for the agio, because the large coins are received at the bank.

These money negociations are likewise made at the bourse, or at home, between merchant and merchant, with or without the intervention of brokers, who have one per mil. for their pains, paid equally between the buyer and seller.

To have an account opened for a person in the bank, he must pay ten guilders for once only.

The bank only receives ducats of gold, ducatoons, rix-dollars, old louis-d'ors, and other such-like species, and they have reduced the ducatoons to sixty stivers instead of sixty-three, as they passed in ready or current money, the rix-dollar to be forty-eight from fifty, and other sorts of coins in proportion.

The bank never engages for the specie it receives, but on the footing of five per cent. under their common value in current money, viz. the ducatoon at the value just now mentioned, which is the true original of the agio, and which consequently must be five per cent.

Ingots of gold, and bars of silver are likewise deposited there, of which the price is regulated according to their value after the assay, which is made by the city assayer, and all sorts of money, and species of gold and silver are also deposited, and principally dollars, for which the bank gives its receipts, called receipts of Mexican dollars, and which are commonly negociated at change.

Those who have cash in bank may draw it out whenever they please, on paying a sixteenth per cent. for the care of it: and if at the time of taking it out, the agio should be under five per cent. the treasurer will pay the difference, forasmuch as that when it was received, there was charged on it the five per cent.

The books of the bank are kept in guilders, stivers, and pennings, of which twenty stivers make a guilder, and sixteen pennings or deniers a stiver.

Any one drawing on the bank more than he has there, incurs a penalty of three per cent. on the sum he overdraws.

The bank is shut up twice a year, viz. in January or February, and in July or August, and remains so eight, ten, or fifteen days, during which time the books are balancing.

It is shut up besides, on the feasts of Easter, the Ascension, and Christmas, and on fast days, and about the 22d of September, when the fair begins.

If the six days grace, which are allowed on bills of exchange, happen to expire whilst