140 PARLIAMENTARY COLBERTISM 
cash in reserve, on the faith of the interest due to it from the 
Government. Foreign bills were discounted at 6°, and 
home bills at 4} %/,, customers’ bills were discounted at 3} fo, 
and the Bank announced its readiness to make advances on 
plate, or any of the useful metals at 49/,. 
The credic From its formation and until 1844, the banking business 
nh of making advances to traders, and the issue of notes by the 
onl ne Bank, were inextricably connected. The success of the new 
recon institution, as a bank which offered to advance money at low 
rates, helped to render its notes generally acceptable. The 
critical moment in regard to the new currency occurred 
during the re-coinage in 1696; on the 4th of May, when 
most of the current cash of the country was withdrawn, and 
few new coins had been issued from the Mint, an organised 
attack was made upon the Bank by goldsmiths, who had 
collected large numbers of its notes and presented them for 
immediate payment. The Bank was unable to meet its 
engagements’, though it continued for a time to satisfy the 
demands which came upon it in the ordinary course of trade. 
By making a call upon its proprietors, and by the indulgence 
of certain creditors, the directors were able to tide over the 
evil day. Coinage was so scarce for many months that 
traders were forced to fall back upon substitutes for money?, 
and became gradually more habituated to the use of paper 
but despite currency; but during the re-coinage there was so much 
some - . . . . 
hesitancy hesitancy about it, that the difficulty of the time was in- 
of /hepart creased. Haynes, as a Mint official, spoke with some 
wiblic contempt of all forms of money, other than the precious 
metals? and there were doubtless many others who shared 
A.D. 1689 
—1776. 
1 For excellent suggestions as to the course which should have been pursued 
by the Directors at this time, Aug. 31, 1696, see Review of the Universal Remedy 
of all the Diseases incident to Coin, p. 56. 
2 Kennett, Complete History, 111. p. 725. 
3 «The great Arrears of the Government like an Inundation and all sorts of 
Paper creditt in Orders, Bills, Noats, Bonds, Assignments etc., overflowed the 
Kingdom. All our wealth seem'd to consist in a little Gold and adulterated 
Silver, a world of wooden Scores and paper Sums. Never was there known before 
such vast debts owing for Excise and Customs, upon Bills and Bonds unsatisfyed. 
All sorts of Provisions grew to an extravagant Price, which was an additional 
hardship to day labourers and Artificers, besides their want of Mony and Credit. 
Upon the whole, wee had all the symptoms upon us of a Bankrupt sinking State 
and an undone people.” Haynes, op. cit. 94.