1833.] National Banks—English and American. 505

fraud, which are sometimes very heavy. Thus, in 1803, it lost, through a single fraud, above three hundred thousand pounds; and at a later period, at least as much through the forgeries of the notorious Fauntleroy. The charge for services connected with the debt is at the rate of three hundred and forty pounds for every million under six hundred, and three hundred pounds for every million above; to which is to be added, ten thousand pounds per annum for the management of the public accounts, making, in the year 1831, the sum of one hundred and seventy-four thousand. From this, however, is to be deducted the sum of seventy thou sand pounds, paid in lieu of the tax on bank notes; and by the renewed charter of August last, the further sum of one hundred and twenty thousand pounds, which brings the balance against the bank. All this, however, is a simple agency, in which the public has little interest, and the currency none. The private understand ing which operates between them constitutes the evil. That such existed, the bank would ſain have denied—and very unwittingly made the acknowledgment. The governor of the bank, on being asked—“Do you consider that the bank should be a commercial company independent of government?” boldly answered—“I do.”—(Palmer, 551.) Mr. Ward, a very intelligent director, being pressed to say whether the bank “would not feel themselves bound to relieve the distress of government?” answered, warily, “The financial condition of government must always act upon the bank directly or indirectly.”—(Ward, 2049.) But of that influence being most direct and at the same time most injurious, the proofs were but too plain. In December, 1794, it appeared that the Court of Directors represented to government their uneasiness at the amount of their advances, and prayed in vain for a reduc tion of them. In January, 1795, they resolved to limit their advances in treasury bills to half a million, and at the same time expressed their hope that the minister, Mr. Pitt, would ad just his measures for the year “ in such manner as not to depend on any further assistance from them.” On the 11th of February, 1796, they resolved as their opinion, that any further advance would prove fatal to the bank. But still, in spite of their better judgment, we find them continually giving way to what they delicately termed “the pressing solicitations” of the chancellor of the exchequer—yielding to borrowers, who, no doubt, were too strong to take denial. The manner in which the bank makes advances to govern ment is by the purchase of what are called exchequer bills. These are simply orders on the treasury, entitling the bearer to the sum specified thereon, together with interest, at a fixed rate per diem, until a period named for their payment, which is at the option of the government, but rarely exceeds twelve months from date. These bills are issued by the lords of the