The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-10-16

the capital stock was again increase,
through loan 20 the government an,
/ the monopoly OF the bank was protects
cd by a provision prohibiting compan'
. les ~ more than six persons from is
suing hills or notes which were paya-
7 Bile within six months OF the date OF
issue. These two acts. together with
the original act OF establishment
formed the basis Of the Bank Of Eng
lands position until the beginning of
the nineteenth century"
Bank and Govt. Debt.
"The foundation Of the Bank OF Eng
land forms the transition from the
system Of floating 10 that of funded
debt ." The Bank OF England.
however. was not the only institution
that received its corporate privileges
because OF its relation 10 the govern
ment debt. In 1895 the English COM
pany Trading 20 the East Indies was
granted certain exclusive trading
rights in return for an advance OF e p
GOO 600 at per cent; I'm 1711 the
south Sea Company was granted
the exclusive privilege OF trading i'm
the South Seas i'm return FOR the ad-
vance OF funds used To consolidate the
floating debt. The Bank OF England.
however is the only institution which
has survived and which has continued
10 serve the government.
The growth Of the relations between
the bank and the exchequer is well
illustrated by the history OF the eX-
chequer bills. These bills were orig.
inally issued to furnish a currency
later they became a means OF antici-
pating a revenue, AT their first is
sue In 1896 they were negotiable Sc
curities. payable on demand. without
other guaranty than the public credit
In general" Later they were accepted
In payment OF taxes and the bank was
voice in deciding the total value of
the bills issued. The exchequer bills
thus acquired for the public the same
value as the banks own notes. while
they served as a bond between the
State and the bank, which bound the
Two together In even closer relations
through regularly repeated loans and
inally, through the funding of the |
bills into permanent debt until the |
State should repay the capital needed |
o cash them"
As the government debt was in
reased from time to time it's admins
ration was deputed to the bank or to |
he trading companies. The position
f the agents varied according to
'hether they advanced the funds di-
ectly or simply acted as intermedi-
ries. in the first case their capital
took was increased by the amount
dvanced i'm the second case, they
)ok subscriptions for the government
ebt or annuit'es. kept proper ac-
cunts, turned over the amount sub
rribed To the eXchequer. and managed
he semiannual interest payments.
he bank was finally given exclusive
barge of the business of handling
lie government debt.
Bank and Govt. Offices.
However II was the increasing share
ken by the bank in the daily admin
tration of the public receipts and ex-
enditures that caused the alteration
English financial administration.
I the end of the seventeenth century
] the officials OF the exchequer were
'solutely Independent I'm their appli-
tion and employment of public mon
: Each official had to give security ,
'peniing in amount on that of the
oney to be received" Paymasters.
Sewise, were assigned certain !