PAPER-MONEY 
441 
his views’. For a time the various forms of credit were AD 9 
scarcely negotiable. The notes of the Bank of England ’ 
were subject to 20 °/, discount, and Government tallies® sank 
40°/,, 50°/y, or even 60°/,, according to the nature of the 
funds assigned in security, since some of them did not yield 
the expected amounts, while some of the tallies had no specific 
security assigned them. Montague took active steps for the 
restoration of public credit on the assembling of Parliament 
in October, 1696. The Commons resolved to grant a supply, 
which should make up these deficiencies and give ample 
security for the punctual payment of talliest; the Act of 
1697%, not only enlarged the capital, and improved the 
status of the Bank of England, but restored the credit of 
the administration as well. Tallies, bank-notes and Bank- various 
bills all began to circulate freely’, Encouraged by his foe v 
success, Montague proceeded to issue a large amount of Trodet came 
paper currency in the form of Exchequer Bills, bearing “ 
interest’; without some such money, it would have been 
physically impossible to collect the taxes required for the 
support of the war; but by these various expedients “ Parlia- gid Je 
ment laid a good Foundation for Paper Money to supply the Zzchequer 
Place of our Silver Coin; for so many Payments were at this bids 
time to be made into the Exchequer, that when the People 
had assurance given them that the Exchequer notes should 
be received back again in the payment of the King's Taxes, 
they were very well satisfied to take them, at first indeed at 
small Discount but not long after at an Equality. A great 
number of these Notes were only for Five or Ten Pounds 
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| “The ill State of the Coin by Diminution on one Hand, and Adulteration on 
the other, and the Plan which had been laid for the circulating a sort of fictitions 
Wealth, such as Exchequer-Tallies, Bank Bills and Government Securities, instead 
of Gold and Silver, were two other Points which took up the Attention and excited 
the Concern of every thinking Man.” Ralph, History of England, 11. 564. 
2 The great difficulty of procuring coin, for any purpose, made it improbable 
that either the Government or the Bank would be able to discharge their 
obligations in cash. 
8 Tallies were the documents issued when Government borrowed in anticipation 
of taxes. 9 W. III. c. 44, § 50. 
t This suggestion is put forward by Robert Murray, 4 Proposal for the more 
2asy advancing to the Orown of any fized sum of Money, p. 1 (1696). 
5 8 and 9 W. III. ¢. 20. 6 Kennett, op. cit. 111. 726, 
I See above, p. 420, n. 7.