And first for the business; this bank should enlarge the number of their directors, as they do of their stock, and should then establish several sub-committees, composed of their own members, who should have the directing of several offices relating to the distinct sorts of business they referred to, to be overruled and governed by the governor and directors in a body, but to have a conclusive power as to contracts. Of these there should be -

One office for loan of money for customs of goods, which by a plain method might be so ordered that the merchant might with ease pay the highest customs down, and so, by allowing the bank 4 per cent. advance, be first sure to secure the 10 pounds per cent. which the king allows for prompt payment at the Custom House, and be also freed from the troublesome work of finding bondsmen and securities for the money--which has exposed many a man to the tyranny of extents, either for himself or his friend, to his utter ruin, who under a more moderate prosecution had been able to pay all his debts, and by this method has been torn to pieces and disabled from making any tolerable proposal to his creditors. This is a scene of large business, and would, in proportion, employ a large cash, and it is the easiest thing in the world to make the bank the paymaster of all the large customs, and yet the merchant have so honourable a possession of his goods, as may be neither any diminution to his reputation or any hindrance to their sale.

As, for example, suppose I have 100 hogsheads of tobacco to import, whose customs by several duties come to 1,000 pounds, and want cash to clear them. I go with my bill of loading to the bank, who appoint their officer to enter the goods and pay the duties, which goods, so entered by the bank, shall give them title enough to any part, or the whole, without the trouble of bills of sale, or conveyances, defeasances, and the like. The goods are carried to a warehouse at the waterside, where the merchant has a free and public access to them, as if in his own warehouse and an honourable liberty to sell and deliver either the whole (paying their disburse) or a part without it, leaving but sufficient for the payment, and out of that part delivered, either by notes under the hand of the purchaser, or any other way, he may clear the same, without any exactions, but of 4 pounds per cent., and the rest are his own.

The ease this would bring to trade, the deliverance it would bring to the merchants from the insults of goldsmiths, &c,, and the honour it would give to our management of public imposts, with the advantages to the Custom House itself, and the utter destruction of extortion, would be such as would give a due value to the bank, and make all mankind acknowledge it to be a public good. The grievance of exactions upon merchants in this case is very great, and when I lay the blame on the goldsmiths, because they are the principal people made use of in such occasions, I include a great many other sorts of brokers and money-jobbing artists, who all get a snip out of the merchant. I myself have known a goldsmith in Lombard Street lend a man 700 pounds to pay the customs of a hundred pipes of Spanish wines; the wines were made over to him for security by bill of sale, and put into a cellar, of which the goldsmith kept the key; the merchant was to pay 6 pounds per cent. interest on the bond, and to allow 10 pounds percent. premium for advancing the money. When he had the wines in possession the owner could not send his cooper to look after them, but the goldsmith's man must attend all the while, for which he would be paid 5s. a day. If he brought a customer to see them, the goldsmith's man must show them. The money was lent for two months. He could not be admitted to sell or deliver a pipe of wine out single, or two or three at a time, as he might have sold them; but on a word or two spoken amiss to the goldsmith (or which he was pleased to take so), he would have none sold but the whole parcel together.

An Essay Upon Projects Page 15

Business Books

Free Books in the public domain from the Classic Literature Library ©

Business Ebooks
Classic Literature

All Pages of This Book