A Letter to a Friend, CONCERNING THE CREDIT OF THE NATION: And with Relation to the Present Bank of England, AS NOW Established by Act of PARLIAMENT.  
Written by a Member of the said CORPORATION, for the Public Good of the KINGDOM.  
LONDON: Printed for E. Whitlock near Stationers-Hall, 1697. Price Three Pence.   

A Letter to a Friend, CONCERNING THE CREDIT OF THE NATION, etc.  
SIR,  
THE Love you have for Justice, and the Zeal and Concern you have upon all Occasions showed for the Honour, Reputation, Safety and Welfare of your Country, hath Enduced me to offer you my Thoughts upon the present Circumstances of our Affairs, with relation to Credit: And I think I cannot begin more properly than by considering the Natural Causes of it, as obtained either by a Private Goldsmith, or Banker, or by a more Public and National Bank. And  
First of a private Banker: It is the Belief that the Generality of Men are possessed with of his Ability, Care and Honesty; that is, Men believe that such a Banker hath a good Foundation, is a Careful, Cautious and Honest Man; that he hath an Estate to satisfy every Creditor, and will not dispose or alienate any part of it, but what he really knows to be an Overplus, or more than will answer all his Debts, that doth not launch out his Money in many Foreign Adventures, or on doubtful Projects, or uncertain Funds; a Person having once obtained such a good Opinion amongst the Generality of Men, and they finding they can have their Money when they demand it, are willing to take his Bills or Notes rather than Money, for their Ease in paying and receiving, and to avoid the Loss that often happens by bad Money, or Shortness in Tale. I say 'tis for the aforementioned Reasons that any Bankers Notes pass currently in all Payments, and are esteemed equal to Money; and not because Men do generally believe, that a Banker hath always Money lying by him, to pay all his Debts, though they should be demanded all at once; few Men, nay none, that understand themselves, can have such an odd Conceit.  
If a Banker should do so, from whence could he get Profit to maintain Tellers, Book-keepers, Porters, pay great Rents, and get something over and above to reward his Care and Pains in that Affair.  
It is said, That one Private Banker in Lombardstreet owed, or had a Credit at one time for 1100000 Pounds Sterling, when probably no Man believed he had at the same time one twentieth part of that Sum by him to pay it with; but both he and his Creditors believed, that whilst he gave no occasion to suspect or question his Ability and Honesty to pay every one, it would be next impossible, that all his Creditors should come at once to call their Money out of his Hands, but as fast as some called it out others would bring it in, and that would enable him to pay every Man's Demand, and so preserve his Credit entire.  
But on the contrary, whenever the Generality of Men have entertained an Opinion, That a Banker is Careless, Prodigal, Dishonest, or doth Alienate any part of his Estate, more than is truly and properly his own, or Engageth his Money in hazardous Adventures, new Projects, or doubtful and remote Funds, by which he may be in danger to lose a great part of his Estate, or not be able to command it in any reasonable time (whereby is occasioned a Jealousy of him) his Credit will presently sink, and all his Creditors come upon him to take their Money out of his Hands, fearing it not safe there; and then no Body will accept of his Notes in Payment.  
For the very same Reasons, and by the same Methods, a Public Bank may Establish and Preserve, or Destroy its Credit.  
If a Public Bank be Established upon a Fund that is Certain, Secure, Just and Inviolable, not to be taken away, Lessened, Changed or Altered for the ●orse, either as to Time or Security, upon  pretence whatever, either by King or Parliament, without the free Consent of the Proprietors; and that the Managers of it are generally Persons of clear Reputations, Estates, Prudence, and generally esteemed so, and they are careful not to divide any part of their Stock, but only the bare Interest and Profits, and also cautious not to lend their Money upon any remote or uncertain Funds, or employ it in any hazardous ways: I say such a Bank so Managed, cannot fail of having a great and lasting Credit, and will never be in danger to be run upon by its Creditors, because they can have no reason to fear, or distrust, the Safety of their Money, but may be sure to have it, whenever they demand it.  
If the Fund of a Public Bank be made as secure, and unalterable as any Man's Freehold (as indeed it ought to be, in case you would make it a Bank of Credit) and by that Credit supply the Nations want of real Species, than no Man will scruple to Trust that Bank with his Money upon the Security of that Fund, no more than Men scruple to lend Money by way of Mortgage upon an Estate in Fee-Simple, whereof the Title is clear and unquestionable; for the same Law that gives me a Title to my Freehold, gives the Bank an undoubted Title to their Fund, during the time Contracted for with the Public. And therefore any Supreme Power, or Government, may with the same equal Justice enter upon one as they can violate the other.  
No Fund or Funds upon which a Bank is Established, and which the Members of it have purchased with their Money, or upon which a Bank, or other particular Persons have lent their Money, should be taken away, changed or altered, except only with the free and voluntary Consent of that Bank, or those Persons who fully compose it.  
For the taking away, changing, or altering of any Fund without such free and voluntary Consent, will always be attended with dangerous Consequences, by destroying the Credit and Esteem of Parliamentary-Funds.  
And also when the Parliament do grant the King a Tax upon any thing, and give it him for a certain Sum, and to come in upon a certain prefixed time, and empower him to borrow, and Encourage the Subjects to lend so much as they give it for; If this Tax or Fund prove deficient by any Means, or Occasion whatever, and bring not in the full Sum it was given for, it cannot be thought reasonable, that the Subjects who lent their Money in expectation to have it, repaid them within the Term limited by that Act, and therefore lent their Money upon a less Interest, should either lose their Money, or wait for it a much longer time, but should have the Deficiency made good to them out of the next Money that is raised. And if that Method was constantly observed, no Man would scruple to lend his Money upon the latter part of any Parliamentary-Funds, which otherwise none will adventure to do, and that will hinder the King from Loans beyond the half of the Fund, or at least not so much as every Man believes will most infallibly come in upon that Fund; and by that means the King's Occasions will not seasonably be supplied, but he must wait till the Collector can receive and pay the Money into the Exchequer; how that will suit with our Circumstances, especially in Time of War, I leave to the Judgement of others.  
I think it is obvious to every Man, that since this War, a considerable part of our Treasure, I mean of Gold and Silver is exhausted, the Remainder of our Money is by the Recoyning of it, reduced to one half of what it was before in Tale or Demonstration; that is, what we called before Five Millions of Pounds Sterling, is reduced to Two Millions and a half. And almost all that, which is commonly called Paper-Credit, is sunk, lost, and become useless in Trade, and Public Deal.  
And with that Paper-Credit; that is, with Goldsmiths, and Bank-Notes, which amounted to near as much as all our Current Coin, the greatest part of our Trade in and about this City of London was formerly driven: All Foreign and Inland Bills of Exchange, and all great Payments were made in those Notes, and very seldom any considerable Sum were paid or received in Money.  
So whilst those Notes continued in Esteem and par with Money, they answered all the Ends and Uses of Money in Trade, and Money was only needful in the Markets, and for smaller Payments, for all which Purposes, a small quantity of it was sufficient; and that made Money seem to be abundantly more plentiful among us, than it was in reality.  
But now it is plain we have not Money enough to turn the Markets, much less to carry on our Foreign Trade.  
The truth of this being granted, I must conclude, we have not in the Kingdom, one fourth part of the Money and Notes (which served as well as Money) that we had a few Years since; and it is as certain, that according to the Proportion, that we have now less in Money and Credit, our Loans to the King, and our Trade at Home will be less, and in Foreign Parts inevitably impaired.  
Nothing but a long continued Peace, and a well managed Foreign Trade, can restore that Treasure this War hath drained from us, and especially the Damage which the French have done us, is at least computed to be Twelve Millions Sterling.  
And how it is possible we should now carry on our Trade to that degree we formerly did, with less than one fourth part of the Stocks, and other Means we then had, I cannot understand.  
And therefore since we have not real Species to do it with, nor can hope in ●…y reasonable number of Years, sufficiently to increase our Species, I think ●●ere is no other Way or Means left us, either to carry on the War or our Trade with, or without a War, to the Honour and Advantage of this Kingdom but only by restoring Credit; and by that Credit supply our want of ●●●al Coin.  
How such a Credit can be obtained, is the Question?  
And for my part, considering our present Circumstances, I think it cannot be effected any other way than by the Bank of England, as now Established.  
And I am confident that Bank could do it, if they had those Privileges ●●d Encouragements the King and Parliament could grant them, without ●eing prejudicial to any Subject.  
It is certain, that all forcible and compulsive Means would destroy or fru●●●…te that Credit they are intending to Establish and Preserve.  
The only sure way to obtain a lasting Credit must be easy, free and na●●●al; Men will not trust their Money any where, nor with any Person against ●●●ir inclinations, or with whom they suspect its safety.  
Whilst Men believe their Money is safe in a Bank, and will be paid them ●●en they demand it, they will choose to lodge it there, rather than at Home, ●●on account of those Conveniencies I mentioned before; but if either of those ●hings be questioned they will be their own Cashiers, and not trust their ●oney in such a Bank.  
Therefore, as I said before, the only way to make the Bank of England cable to supply the Nations want of real Species by their Notes and Bills, is 〈◊〉 to ascertain to that Bank the Funds upon which they are Established, and ●…e or shall hereafter lend any Money to the Government, by the strongest ●●…s and Obligations of Security without any Mutation, that the Wisdom of the Parliament can invent, so that the Generality of Men may be satisfied therewith.  
This is the first and chief Foundation to build a great and lasting Credit upon; and without this there is no possibility to effect it, for no Man will trust his Money where he believes it is not safe; and where this Consideration is wanting, no Credit can subsist.  
The next means to make the Bank able to lend great Sums, and thereby to supply the Nations want of real Coin, is to make it the General Cashier for all Gentlemen, Merchants and great Traders in and about the City of London; which must not be done by Compulsion but by making it necessary for the Interest and Convenience of every Man to lodge his Money in that Bank; and keep an Account with it; and when the Generality of Traders do make such use of it the Bank will have little occasion to issue out Money, but only transfer it from one Account to another as is now practised in the Banks o● Amsterdam, Venice and Hamburgh; for if this Bank be once Established and supported in their Credit by the Government, exclusive of all others, during the Term of its Continuance, and its Fund or Funds secured to the Satisfaction of the Generality of Men, than every Man will voluntarily, for his own Eas● and Convenience, employ it to receive and pay his Money, and keep a Book● or Accounts, otherwise with it.  
And this cannot be hoped for when there are more Banks than one for where the Interests are divided and separate, a Distrust, Jealously and Envy will naturally arise to the Prejudice of each other, they wi●● never dare to extend their Credit, for fear of a Surprise by their Competitors.  
Each Bank will have its Friends and Employers, and the Advantage of paying and receiving of Debts without Money; by transferring Sums from on● Man's Account to another will be lost, and then Money will be as necessary to pay Debts with, as it is at this Day.  
If so the main End is frustrated, which is to furnish the Kingdom with a● Imaginary Coin to serve the Uses of that which is really so.  
This (besides the Experience and Example of other Countries) show that one Bank will be infinitely more serviceable and advantageous to th● Kingdom, and beneficial to private Persons, than Two or more; for according to that Observation of the late Excellent, and never to be forgotten Deputy Governor, Mr. Michael Godfrey, we are under those happy Circumstances, that we cannot do good to ourselves, but by doing good to others.  
Another way to enable the Bank to supply the Kingdoms Occasions with Money, is to let several Branches of the King's Taxes and Revenues pass through it.  
For by that means Money will be daily coming into it, to answer People's Demands that will take their Money from thence: And though no part of the Taxes should be permitted to lie in their Hands any considerable time after they have received it; yet as that which they received some Days before is to be paid into the Exchequer, other Sums will come in to pay it with; and that successively will always keep them full of Money, and enable them to pay every Man's Demand.  
What Injury this Method can do the Public I am yet to learn; and if it should happen to be prejudicial to any private Persons, who now have benefit of the Use of that Money, that Advantage must give way to the Nations Necessity and Welfare; and where it is in the King's Breast to give it to whom he pleaseth, no Man can reasonably complain of any Injustice done him; and I know no Man, nor number of Men, have so well deserved of His Majesty and the Kingdom, as the present Bank of England hath done.  
Otherways to render the Bank capable of assisting the Nation, and Cure the Evils we labour under for want of Money and Credit, are to lengthen the Term of its Continuance; to make all Foreign Bills of Exchange payable at the Bank, or at least demanded there before they can be protested. By severe Penalties to deter Persons from Forging, Counterfeiting, Altering or Razing any of their Bills or Notes, and the Officers of the Exchequer, and all Officers and Receivers of the Revenue from deviating, delaying or obstructing the Course of Payments into the Bank.  
I say, with submission, that if these Privileges were granted to the present Bank, it would immediately and infallibly recover its former Credit, and be able to serve all the Occasions of the Public and private Persons, and I think I may be bold to affirm, That the Credit of the Nation cannot be restored by any other Means in any reasonable number of Years.  
For we have a mighty Engine to move, and but very little Water to move it with; and if the little Water we have be divided into different Channels, and not united (as much as is possible) into one, it can never stir the Engine, which is our Trade; and if that be stopped or stand still, every Man may guests what the immediate Consequence will be.  
Therefore since Credit, especially at this Time, is so indispensably necessary for us, I should think the King and Parliament cannot do too much to restore it.  
Till Credit (which supplied our Occasions, as much as our real Species) be restored, the great scarcity of Money will appear, and continue to distress us, as much as it doth at this Day, and cousequently high Interest will continue; for it will be impossible by any Laws to hinder Men from lending or borrowing Money above or below the Natural Interest.  
For if I want Money I shall find out ways to give 10 per Cent. Interest, when I cannot have it for less, although the Law forbids Men to take more than 6 per Cent. And if we can neither receive or must pay a much greater Interest than our Trading Neighbours, they will unavoidably get from us all that little Trade the Nation have now left to pursue. For no Man will fond his Money to Sea, when he can make more Profit by lending it out upon Interest at Home. And he that Trades with Money he hath borrowed at 10 per Cent. cannot hold Market with him that borrows his Money at 4.  
The same Inconvenience will attend all Gentlemen that want Money, either to pay their Debts or dispose of their Children: For till a great and full Credit (which proceeds from Plenty and Safety) be restored, they cannot borrow Money upon their Lands without giving an Extravagant Interest, which in a little time will eat up their Estates.  
And another ill Effect it will have on the Price of their Land and Houses; for no Man will buy Land or Houses when he can make double the Advantage by lending his Money upon Interest, buying Tallies, Bank-Stock, or Bank-Bills.  
If we should have a Peace to Morrow our present Difficulties, for want of Money or Credit, will not be thereby removed; Money will be as scarce then, as it is now; and the same Methods will be practised by the Rich, to pray upon the Necessities of others, as are at this present Juncture.  
Before this War Money seemed to be very plentiful amongst us; and any Man, upon good Security, could borrow what Sum he pleased at 4 per Cent. per Annum; our Foreign Trade was generally driven to the utmost degree it was capable of. But I think (with Submission) it was not the real Plenty of Money that made Interest low, or our Trade flourish, but the great Credit th● Goldsmiths than had, whereby were added as many Millions of Stock to the Nation, as we had in real Species.  
But if (even in that Time of Plenty of real Species) that Credit of the Goldsmiths had been sunk, or lost by any Means whatsoever, every one must grant that Interest would have greatly advanced, and our Trade had a terrible Stop and Declension: How much more must both these be affected now, when that, and all other Credit is lost, and our Coin reduced to one third of what it was in those Days.  
I think it is evident we have not so much Money amongst us as will turn the Markets, and make the smaller Payments; and if so, our Trade must stop for the Necessities of People must first be supplied.  
The longer we defer the restoring of Credit the more difficult, if not impossible, it will be to effect it, and more particularly if the present War should continue: For the longer we defer it the poorer we shall grow; and the Art and Contrivance of Jobbing our Money, oppressing the Necessitous, by extorting from them Unconscionable Gain, will improve with the Use and Practice.  
If we had no Forces abroad to draw our Money from us, yet the Vanity of our Fashions in our Apparel, Furniture, Eating and Drinking, will consume so many Foreign Commodities, as will overbalance Trade to our prejudice, and presently sink us into Debt; which without a great and well managed Trade, we shall be forced to part with the little Money we have left to discharge those Affairs.  
If to restore Credit the Bank of England should be Engrafted upon, it must evidently prejudice the present Proprietors of that Stock; for thereby the General Credit and Bank of England, will receive these Inevitable Misfortunes.  
First, That the present Specie Credit which the Bank now have, and attained to again for near 100000 l. that very Money upon this Engraftment, will infallibly be called out of the Bank to purchase Bank-Bills, Notes, Stock, and Tallies.  
Secondly, Also all those Sealed Bills to the Value of one Million, (for which there is at present no Funds to pay the Corporation their 8 per Cent. contracted with the Government, for Relief of themselves and their Creditors, in Payment at the Exchequer) will by the same Conjecture, after any Sum granted of 4 or 500000 l. per Annum when settled, be speedily demanded out of the Corporation.  
Thirdly, And if Men should have that Impetuosity on their mind, as not to trust them anew on their Parliamentary-Credit, they will then divide, and not lend again; the Consequence of which will be bad to them, and to the Kingdom's Interest, and especially to Trade (for want of Specie now driven in a great measure) with Bank-Bills or Notes (which being sunk into Bank with Tallies) will be infinitely impaired for want of Money, as the Stock of the Bank will also, when the great Personal Estate, now floating in the Nation in several Divisions, be thereon Engrafted.  
They who have Money may buy Stock, rather than Tallies, at what rate they please, which with the future Consequence conceived will neither produce sufficient Loans to the King, bring Credit to the Nation, nor moneys into Trade; which will not only be remembered by them and their Posterity, but be reflected on by the New Subscibers' as a Hardship that may also fall to their Turn some Time or other.  
All Men know the present Proprietors have taken much care and pains to bring the Bank into Method and Form; and should they part with their Rights without any Consideration, it would be a high Discouragement to all Public Undertake, after having done and suffered more for the Support of the Government than any Body of Men ever yet did, and by those very Services only they are reduced to their present Unhappy Circumstances, for whose Sakes they were brought into.  
And if such Favour be not granted or made, not only they, but all others by the Example or their Sufferings, will be for ever discouraged from serving the Public.  
It is true, when we were told by some certain Gentlemen of Note, and others, That except we did submit to be Engrafted upon, there would be no Favour showed us; and that we could not expect to recover our Credit, till the End of our Term, so till then no part of our Interest could be distributed amongst the Members of the Corporation.  
The major part of the General Court did agree to it, some being terrified by those dreadful Stories, some to serve other Ends and Interests of their own, and others by mistaken Notions of the Thing, but this was far from a free and voluntary Consent.  
For no Proprietor if he had believed the Government would have helped us, and restored our Credit (as it is easy for them to do) would ever have been enduced to give his Consent to any Engrafting, because that doth unavoidably cut off all hopes of future Profits by the Bank.  
Besides when the Members of the Bank cannot expect any Profits from it, but only the bare 8 per Cent. which is as well secured to them without a Bank, they will never trouble their Heads about it, much less let any of their Money lie therein to support it, fearing the like Contingencies it hath already suffered, may again happen, for want of its Merits being duly rewarded and encouraged.  
As Money comes in, every Man will be scrambling to take away his share; all Public spiritedness, will infallibly vanish at the remembrance of the Ingratitude shown to the old Proprietors.  
For no Man in his Senses can hope to deserve more, than they have done, though so ill requited for all their past Services.  
From whence I conclude, the Bank if Engrafted upon, can never restore the Credit it hath lost, and is expected from that Foundation in this Kingdom.  
The Members of the Bank have actually paid in 80 per Cent. and they have 10 per Cent. Interest and Profits more to divide, having had no Dividends for a long time.  
And now this 100 l. must be only esteemed equal with a Tally bought for 10 l. and those that have them in Payment for Goods, have got 40 or 50 per Cent. more of the King for their Goods, than they could have had of any Subject; but the Members of the Bank all this while have got nothing, nor in three Years divided more than 10 per Cent. So that they, notwithstanding their Merits, are much more hardly dealt with than other People.  
And as in all Public Transactions of Affairs where the Administration is committed to several Selected Persons chosen out of the whole Community, for their Probity, it was expected some extraordinary Applications would ensue and be taken for the sole Benefit of the whole Society; therefore in the beginning of this Session of Parliament, or as soon as any Engrafting was discoursed of upon the Bank of England, the Proprietors of the present Stock expected the Governor, Deputy and Directors would have laid before the Parliament, their Services and Sufferings for the Nations Benefit and Tranquillity; and by what means they were brought under their present Circumstances, so as to Petition for Relief therein upon the Measure of Equity, Gratitude, and restoring the Reputation of Parliamentary Funds, and Public Credit; and proposed a Scheme or Method, by which they might be effected.  
They thought to have seen them daily in the Lobby, and Court of Requests Soliciting the Honourable House of Commons in that behalf, proving to every Member the Reasonableness of their Desires, the Justice of their Case; that the many Aspersions and Calumnies that are cast upon them, are all false, malicious and groundless; and shown how easily they might be helped without Engrafting; their Credit restored, the Discount of Tallies, and Interest of Money reduced to what they were formerly, and His Majesty assisted with Loans; especially when it was considered how deeply the Governor, Deputy and many of the Directors were concerned in the Stock themselves, what Salaries they have for their Pains, how many of their Friends they had engaged to buy Stock, what loss every Man now concerned was like to suffer, if the Credit of the Bank was not restored, or that it should be Engrafted upon.  
And Lastly, When they considered how indefatigable the Committees of the East-India and African Companies and others have always been to attend, and solicit a very bad Cause, they were amazed to see the Directors so remiss and backward to defend and seek for Relief in a very good one; though those Committees had a much less Reward and Encouragement for their Industry, than the Directors: For from the beginning of this Session to this Day, they never published any thing, or called a General Court beforehand to advise and communicate on these Purposes I have mentioned above, nor hath any of them been seen at Westminster to solicit the Cause of the Bank (except some that attended with Proposals to injure and destroy it, and with it all Public Credit;) whence 'tis reasonable to conclude, That they have either done something amiss, or seem not to acknowledge wherein they were Rewarded for such an apparent Neglect (which is now too obvious to their own, Friends, and several gentlemen's Detriments) nor to the Obligations and Duties incumbent, as became the high Trust they had in that Excellent Constitution: Their late Worthy Deputy Governor shown them a better Example, he never knew any thing proposed to the Prejudice of the Bank but he laboured Night and Day to prevent it; and sat not idle under any desponding Thoughts, that his Endeavour would be in vain and fruitless, but in Imitation of a great Philosopher, who said, He was not born merely to serve himself, but for others: So I wish these or any other Considerations, had roused them up to imitate so brave a Pattern and Example of General Good for their countries' Service  
For 'tis well known, the Court of Directors consisting of Twenty six Persons were chosen at first for their Integrity, Knowledge and Circumspection, and whilst several of them still answer these Characters, yet some made little better than a sine Cure of their Places, being very remarkable for their particular Profits; returning to these Advantages, small Demonstrations of their true Zeal, Ability and Tenderness for the Commonweal of the Corporation, who in the space of two Years, for want of exercising a prudent Conduct in their Trust and Affairs to nourish such a Constitution, have too apparently in some great measure ruined, not only the General Credit the Bank had, to the infinite Prejudice of Trade, but absolutely to the present Adventurers; and 'tis too much to be feared, should there be so great an Engraftment of Five Millions Sterling, to the 1200000 l. the Profit this Bank can make, or may expect for the future, will not be so beneficial to the New Members (as formerly to some) for that no Society of Men will (with Submission) ever Subjugate their Hopes and Estates again, to such Vicissitudes as have already happened for want of Credit and good Management.  
I have for my true regard in serving the Government lost a very considerable Estate by my Stock in the Bank of England, which is a very great part of my Fortune, and my Family will feel the Effects of it hereafter: But as the Race is neither to the Swift, nor the Battle to the Strong, so I submit all to the Wise Guidance of Providence, and conclude, That knowing your Zeal for the Interest of the present Bank of England, as also for restoring the Public Credit of this Nation, wherein consists so many Advantages for the Common Good of Mankind, I remain a well Wisher, and with all imaginable Respect continue to be,  
SIR, Your most Faithful Servant.  
FINIS.