The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-11-20
THE BANK OF STOCKHOLM

~ffb" " utWstutf uieithah'i VIM se''sSN
on an extensive trade and possessed great property in
iron mines He established, at Stockholm, bank for
the purpose ofexehanging and lending money divided
into two departments iGne, or loan and rsrel, or ex
change bank; each keeping separate accounts, but
mutually supplying each other, according to occasion.
Such was his credit and resources that he the
only banker in the Kingdom-hs connections very
extensive-and though his notes were issued at the
interest Of per cent for a term Of ten years and up
wards, they were circulated through the Kingdom
and received cash by the trading part Of the nation.
In process of time however, by the issue Of coun-
terfe notes and other unfavorable circumstances the
bank drained of cash. and its credit in danger
of sinking into disrepute. In this dilemma, Palmshut
applied to Charles XII, and induced the King TO take
the bank under his royal direction. Accordingly, the
King appointed Palmsheet director, and having estab-
ished the credit of the bank transferred the direction
gift to the States Of the Kingdom, assembled in 1858,
and his ofthe bank but renouneed
all interference in the disposal Of The money
The States being thus declared guarantees proprie
tors and directors of the bank, several regulations
were made. The bank was permitted to lend money,
good security, at the interest of per cent but TO
pay for all money borrowed only per cent, the debt
to discharge interest upon interest all the Kings
revenues we've to be deposited in the bank without
ceivng interest.
The bank was empowered to issue notes not ex-
ceeding the value of thirtysix dollars, copper mnt'
ten shillings; and twas finally resolved that the
States, or those whom they should depute, should
have the power Of inspecting the accounts and inquire
into he nature Of its constitution.
By these regulations, the credit and riches Of the
bank increased to such degree that towards the close
of the 18th century, became the universal deposit
tory ofMe lrhole Kingdom, both to public and pri-
rate circulation, and lowered the interest from to
and afterwards to G, A. and per cent In return the
interest for all money borrowed deposited in the
bank by anylform of loan, likewise lessened from
TOD l-2 3 and per cent.
The large circulation Of copper money then current
in!the country, being by its bulk and lreght ertreme
ly inconpenent, The circulation Of bank notes became
advantageous 10 commerce
From TIA to TIT, the bank supplied Charles XII
with such considerable sums, that the revenues arts
ing from the tolls and customs insufficient to pay
the interest," and of there was considerable
deficiency. These supplies lowered the credit Of the
bank in the estimation Of the public and therefore
the King, on the remonstrance of the States, mort
gagged certain revenues Of the Crown for the discharge
Of the interest," and declared that all the then
mortgaged should remain in the bank till the debt
should be fully discharged and also promised
that he would not any pretext emergency recur
again to the bank for money, except for such be-
longed to the Crown.
Its credit was thus in some measure retrieved; but
its stock too far drained repair its former Gre
dit until Baron Goertz undesgnedy contributed 10 it
by scheme which was in every other respect detri-
mental to the nation.
To supply Charles with money for his constant
wars, Goertz compelled persons, by means of fines
and penalties, and afterwards by species Of torture,
to deliver up their plate Jewels and coin" In return
for these effects they received copper money, called
"Mynteilsn," or signs Of coins, and weighing only
onethird Of silver but passing for silrer dollar of
which il only ninefy-siTh part!
1--WE have not quite yet come to this pass in this
country, arag dollar is still average Of about one
t,csh part of real dollaras the specie in bank, in
1910, was about 1893 600 OO0 while the real capital
was only about $685., 900 600 The /" bank tokens
of England, who probably also took her from the
Barons /" Mynteilen," was about the same ratable
ya,ue during the Continental wars; and have fol-
lowed pretty closely upon her footsteps in this par
ocular.
To elude the perfdious extortions of Goertz, the
public secretly transferred their property consisting
of plate jewels and money, which was thus forced
from them and exchanged for debased currency to
the bank-confding in the royal promise, that the
bank should be exempted from the interference and
inspection Of the crown. Goerz advised the king TO
seize the property deposited in the bank but Charles
refused TO violate his PROMISE and prohibited Goertz
from making any proposals tending to the prejudice
of the bank.
In this crisis the bank received large sums Of
money, a great part of which had no interest Ac-
cordngly the bank in this fourshing state, was in
duced by order of the States in l74l to present the
king with donation Of 100000 silver dollars Cor
1891 As, y and to furnish him with 100000 Cor A.
666l without interest, towards carrying on the war
against Russia [Such the just reward for the
Monarchs integryl
Since that period the bank has frequently advanced
large sums Of money to the Crown and to the Board
of Manufactures, by order of the States.
The bank is divided into two departments lane, or
loan; and ,rerei, or exchange bank each keeping
separate accounts but mutually supplying the other
as occasion requires The former lends money
mortgages or pledges The propretors on deposing
these pledges in the bank, receive the full value
paying (3) three per cent annual interest. These
pledges consis, of gold and silver in block, copper,
brass and lana bank seder, certificates Of having
sent money to the bank, and particularly iron, for
which latter article the proprietor receives threeourhs
Of its value at the interest of per cent, and when
he disposes of it, it is again delivered to him on pro-
ducinp certificate from the bank that the loan is
duly discharged
Jewels were formerly received pledges but as
their value 10 fuctuating and the bank was once de-