SOME ACCOUNT OF THE TRANSACTIONS OF Mr. William Paterson, In Relation to The BANK of England, AND The Orphans Fund.

In a LETTER to a Friend.

LONDON, Printed in the Year MDCXCV.



BY your last to me, you signifie your Trouble to hear that our Friend Mr. Paterson, after so much Expence, Pains and Patience, in the course of several Years, in his pro­moting the Fund of the Bank of England, with so great success, should instead of being satisfied with the Honour and Profit thereof, prove so inconsistent with himself and what he was engaged in, as in a few Months to begin another Design, so opposite to the Bank as you understand the Orphans Fund to be; and this being so unaccountably otherwise than what you had expected from Mr. Paterson, you desire to be in­formed of the particulars relating thereunto.

Your Commands as well as my own Inclination easily induced me to inform my self of those Matters of Fact, which I find to be thus: May. 1691 Upon Mr. Paterson's return into England, from Transact­ing some Affairs of his own abroad, where among other his In­sights in Trade and Improvements, he had learned the Use and Convenience of Transferrable Funds of Interest, and how Beneficial such might be to the Real and Personal Estates of England, if Incorporated with Funds of ready Money to quicken and circu­late the same. And likewise considering how much such an In­stitution might contribute to the support of the Nation in the [Page 2]present War; he drew up a Scheme thereof, and proposed the same to some considerable Persons in the Revenue.

But whether it was that those great Men were not much ac­quainted with the Principals of Trade and Revenue, and the practise abroad; or from what other cause, it is not for me to de­termine: But as plain and as easie as it was, and some of the same Persons think it now, it could not or would not be then understood; nor would they venture upon this new way of raising Money, as they called it, without a considerable Number of Creditable Vouchers; upon which Mr. Paterson was advised to make a Company, or voluntary Society of Monied Men, to countenance and support the Proposal. This Society was accor­dingly formed, and consisted of upwards of Twenty Persons, of Estates and Reputation: But after much time spent, neither the Reasons of the Persons concerned, nor the Reputation they had in the World, could prevail, unless they would become obli­ged to the King for the Summe proposed to be raised. You can well think this put the whole Company to stand, when in­stead of such Reception and Encouragement, as they had Rea­son to expect, they found themselves put to the Test of Perso­nal Obligations to the KING for a Million or Two of Money.

But as an Expedient, it was proposed by some, that the Bills should be made Current, that so they might of course supply the Government with the Money: But this was by others opposed, and after many Disputes found impracticable, as tending to re­duce every thing to Confusion and Uncertainty, and yet not be the nearer, but much the further, from Answering the proposed End; thus the Society were discouraged and broken to pieces.

But Mr. Paterson endeavoured to get the Experiment made up­on a small Summe, and to that end induced such of the Society as were not yet fallen off, and some others, to offer themselves to become Obliged for a Summe not exceeding Five Hundred Thousand Pounds, to be raised upon a Transferrable Fund of Interest: But the Ministers would not play at such small Games as these, so the first Year pass'd without doing any thing in it.

1692 But notwithstanding all these Discouragements, Mr. Paterson re­solved to persist, and spent most of the ensuing Summer in suit­ing his Proposal to the Time and Circumstance, and in forming a Society to undertake for a Considerable Summe of ready Mo­ney [Page 3]to quicken and circulate the Summe proposed to be raised by Parliament: But the Summe of ready Money being only Two Hundred Thousand Pounds proposed to circulate a Mil­lion, it was refused, unless the Undertakers would become Oblig­ed for the whole; so the Proposed Summe of Ten Hundred Thousand Pounds was raised upon the Project of Survivorship and Lives at Fourteen per Cent. and the Transferrable Fund of Interest still postpon'd.

1693 These Difficulties and Disappointments, together with the slights of some, and the scoffs of others, instead of Discouraging, served only the more to animate Mr. Paterson, who ceas'd not, Night or Day, Summer or Winter, to do his utmost in promoting his Proposal, and after every Repulse to bring it about again, judging that though the Men of our Times had neither strength of Mind, nor Vir­tue enough to apprehend and encourage so plain and useful a thing, yet it was not impossible but at one time or other even their Weakness might be prevailed upon, by long Cultivation and unwearied Solicitations, or at least the Necessity of Affairs, might so order it, that when they had gone through all the bad wayes of raising Money, they might happen upon some good ones at last, whereof this might be one: But by the continual Fatigues and Troubles both of his Body and Mind, his Health was exceedingly im­paired, and likewise his Affairs, which were considerable, were very much prejudiced both at home and abroad: But nevertheless he resolved still to try what could be done in the Sessions of Par­liament of the Year 1693.

Some time before that Session a Minister, of State sent for Mr. Paterson, and much encouraged him once more to set it afoot, upon which he drew a Proposal for raising two Millions, at Seven per Cent per Annum; but when this had been bandyed at Court upon several Occasions, and particularly in the Treasury, the Lords were of Opinion there could be no Dependance upon the Mo­ney by this Fund, unless there were an Undertaking for the Summe proposed, or at least for some considerable part thereof: Upon this Mr. Paterson was obliged to frame a New Society, to consist of Forty Men, with Five Thousand pounds each, to be a Fund of ready Money, to circulate Ten Hundred Thousand pounds, proposed to be raised upon a Fund of Interest of Eight per Cent; but when it came to be Debated again, the Officers of the Revenue, who had been in the Management of the Tally Trade, and much devoted to the Old Norman Rules, made their Com­putation, [Page 4]that as they had been obliged to give Twenty, Thir­ty, nay, sometimes Forty per Cent. or more Discount for Tallies, with Eight per Cent. Interest, that had but four or five years, or less to run, by this sort of Arithmetick the Tallies as they called them upon this Bank or Perpertual Fund, being never like to be paid, must be at least double the Discount; so that the Underta­kers must of Necessity lose all their Money, and yet the KING could not be sure of half what was Proposed. Thus we see our Prince hath sometimes had the Misfortune to have least Credit by those who were nearest his Person. While things were thus in Suspence, some of the Undertakers, tho' much against Mr. Pa­terson's Opinion, took Advantage of the Despondency of the Courtiers, and resolved to get as much as they could, how un­reasonable soever; they therefore proposed that for a further En­couragement for the Proposers, and greater Security, that the Money should come in, that there might not only be Eight per Cent. per Annum, paid for the Ten Hundred Thousand pounds to be raised for the Government, but also Eight per Cent. per Annum more for the two Hundred thousand Pounds designed to circulate the same, to which the Treasury readily agreed.

Thus the KING must have paid Eight per Cent. per Annum, for for Twelve Hundred Thousands Pounds, and had but Ten Hun­dred Thousand, which would have made near Ten per Cent. per An­num Interest upon the Money raised, but some Gentlemen in the House of Commons opposed, that this would be too great a profit for the Undertakers if the Money should come in; and here was but Two Hundred Thousand pound Security for the raising of Ten, wherefore they thought it not reasonable, unless the Undertakers would become obliged for the whole; and others thought it a great deal too much, as indeed it was. Thus the Proposal was dash'd again, and the Million Lottery succeeded it.

After this Mr. Paterson framed his Proposal anew, for raising of Twelve Hundred Thousand pounds, upon a Fund of One Hundred Thousand pounds a Year, and drew some Clauses to that effect. About this time Mr. Michael Godfrey, a Person of great Parts and Industry, and well known at Court and in the House of Commons, began to Understand and espouse the matter, and with him joyned some of the late Solicitors against the East India Company; who being disappointed of their Expecta­tions therein, were now the more at leisure; most of those Gentlemen in the beginning knew little or nothing of the mat­ter, [Page 5]being induced to espouse it rather from Example than Rea­son, but by those Mens appearing therein, several Persons who opposed it before fell in with it now, and such as could not be gained by reason before, came now over by Example. So that after all its Revolutions, the thing was at last reduced to its first Basis, a Voluntary Subscription.

Thus notwithstanding all the Industry and Expence of Mr. Paterson, back'd by so many considerable Persons for Parts and Estates he could never bring those whose Interest and Business it was, to understand it, until he was overtopt and brow-beaten by such as were strangers both to him and the Business; and that instead of being at the Head thereof, as he had hitherto been, he was now obliged to promote his Sentiments in the Treasury and elsewhere by others, who were still but raw in the matter, and when it came to the Regulations of the Charter, some who had spent so much of their time in finding Faults with the East-India Company and others, that they had forgot most of their own, being rather prepossess'd with prejudice a­gainst other People, than furnished with right Reason or Justness of Temper themselves: It was commonly reasonable enough for them if things were but settled otherwise than they were in the Constitution and Practice of the East-India Company.

After the Difficulties were over, and the Subscriptions begun, and had Success beyond the hopes of its Friends, or the Ex­pectations of any; tho' Mr. Paterson was known to be the Ori­ginal Contriver of the Bank by such as were acquainted with him, yet the common Vogue and cry went for others, who at that time were more known and Popular than he; who Disdain­ing officiously to put himself forward, he had probably not been Chosen a Director, had not some of his Acquaintance, who were moved with a sense of Justice and Gratitude as well as Zeal to the Bank, been apprehensive he might be left out but a Day or two before the Election.

When the Directors were Chosen, it appeared that some were brought in by Side-winds, some by Parties, and others by Acci­dental Reputations, without any Consideration of their fitness for the Bank, among whom were not a few who had always been the most unaccountable Enemy's thereof; and now being brought over and convinc'd by Example and Success; they took the Scent, followed the Croud, and when they were promoted, they began to [Page 6]lay about them amain; what they wanted in Reason they made up in Assurance, and tho' they thought and did less of the Essenti­al Business of the Bank than others, yet to furnish their Quoto one way or other, they generally said more; but still such as best understood, and most promoted the true Interest of the Bank had always a great Value for Mr. Paterson, and a due sense of what he had done, and his Experience therein, so far as they were acquainted therewith; of which Respects and Kindness the Proselytes had no small jealousie, and what they could not direct­ly do in opposition thereunto, they practised otherwise; some­times saying, They were not Apprised of Mr. Paterson's Services; and at other times, That it was not the Business of the Directors, but of the KING, the Treasury, or the General Court of the Bank, or of all of them to Gratifie him; but however it were, they would not move a Finger therein. Thus all that was done in it, was only a Recommendation to the Lords of the Treasury for a Thousand Pounds for Mr. Paterson's Charges, and something said of Re­commending him to the KING for a further Reward. This happened about the beginning of February last.

All this Mr. Paterson took patiently, resolving not to leave the Bank, tho' that had so much left him, until he was obliged by the following Accidents to do what otherwise he never intended; for more than two Years past Mr. Paterson had informed him­self of some things which might contribute towards the intro­duceing of a Voluntary Register for Lands; but this he always reserved until that either by the Legislative Power, or some Vo­luntary Constitution a Bank might be Established in England, the Practise of which would render the Introduction of this more easie and profitable to the Undertakers; and the Bank of England being now fully settled, he consider'd that after the Treatment he had met with therein, he had no Reason to expect any sort of suitable Return for this or any other of his Contrivances from the Bank: And besides that, the Directors were utterly averse from doing any thing in Land: To which may be added, that Mr. Paterson had been long enough a Servant to the Publick, and neglected himself, it concerned him the more to take some Care that he might partake of the good as well as the bad success of what he should contrive and set afoot in time to come; he therefore inclined to have this Fund for a Voluntary Register, sepa­rate and appart from the Bank; and to that end pitched upon the perpetual Fund of Interest payable to the Orphans and other Cre­ditors of the City of London; but was so far from designing any [Page 7]prejudice to the Bank thereby, that he consulted some of the Di­rectors thereof, whom he esteemed his particular Friends, some of whom slighted it as they used to do every thing else at first; but others tho' they would not be concerned, approved thereof, and gave Mr. Paterson their best Advice therein, so far were they from thinking it would interfere with the Bank. Upon this a Proposal was framed, and a Subscription begun for Four Hun­dred Thousand Pounds.

But when the Subscriptions upon the Orphans Credit was begun, and the Proposals publick at a Court of Directors, Mr. Paterson being present, one of the Directors presented one of the Propo­sals to the Governour in order to be read, which being done, Mr. Paterson stood up, and acquainted the Governour that this Propo­sal related to him, and by what he perceived, supposed that some of the Gentlemen might think it a Design to Interfere with the Bank; that he was ready to satisfie the Court he had no such De­signs, whatever the consequence might be, and in order to such satisfaction, if they pleased to appoint a Committee, he was rea­dy to impart his whole Design to them, of which they would be Judges: Upon which one of the Directors, who I dare say meant no ill to Mr. Paterson, whatever use others made on't, but only being a Motion-Maker, what was in must out, stood up and said, that it was not as he conceived so much their Busi­ness to enquire into what Mr. Paterson designed, as to enquire if what he had done was consistent with his Duty, and the Trust in him reposed; so upon this Mr. Paterson withdrew, expecting they would enter upon some Debates among themselves, and give him time to speak for and clear himself; not so much as supposing they would proceed to Censure, much less to conclude him, before he were heard; but in his Absence they not only made their own Constructions of his Actions, but even of his Words, and to make short work on't came to the following, or a Resolution to this Effect, viz.

That the Subscription upon the Orphans Fund of Inte­rest was prejudicial to the Band, and that it was a Breach of Trust for any Director to promote the same.

Some of the most moderate were only for Inserting, that it was unbecoming a Director, and for leaving out the hard Expression of a breach of Trust, but the Zeal of the New Converts prevailed, [Page 8]so no Moderation or Temper would be admitted. Mr. Pater­son returned before the Court was up, upon which the Governour acquainted him with the said Resolution, and withall, that it was not the Opinion of any of the Directors, that Mr.Paterson had any Design of doing the Bank a prejudice, but that others would make use of him as a handle for Designs he never In­tended; upon this Mr. Paterson thanked the Directors for their good Opinion of, and Justice to him, and said he could not answer for Consequences, but that he was much surprized to find that what the Governour acquainted him with was so directly contra­ry to their Resolution, which plainly Voted him guilty of a breach of Trust; that in all the Transactions of his Life he had been the most nicely tender, and had the highest regard for his Integrity and Reputation; and it grieved him exceedingly to find that now struck at, and that so undeservedly, from the Bank of Eng­land, from which he had Reason to expect other things; that it was strange they should Vote him guilty of a breach of Trust for a may be, and by their own Confession not for a may be of his own, but of other peoples; that he was the first, and per­haps the greatest Benefactor of the Bank; that besides the La­bour of several Years, he had expended, lost, and been damni­fy'd more than Five Thousand Pounds in promoting thereof: That notwithstanding he was so much a Sufferer, yet had he in a great measure hitherto held his peace, and not put himself for­ward, as under the like Circumstances some others would have done; that he was moved to say what he said, by apprehending himself exceedingly wronged, wherefore he hoped the Directors upon further thoughts would alter their Resolution, and the more because otherwise all terms and means of a future Correspon­dence were broke; for he could not in Prudence, and Justice to himself, converse with those who had so wrongfully adjudged him guilty of a breach of Trust, as he apprehended they had done.

The Governour made Answer, That it was not as he conceiv­ed, the Business of the Directors, but of the Government, or a Ge­neral Court of the Bank, to gratifie Mr. Paterson, and seemed much concerned at Mr. Paterson's Pretensions, who thereupon withdrew, hoping they would alter their Resolution, but nothing of that Na­ture was done. After this Mr. Paterson being willing to remove all Occasion of Offence, how ill grounded soever, and rather to remain a Friend to the Bank that had cost him so dear, tho' he were sure to be a loser, than be a gainer by any thing else that might but seem to interfere therewith; and considering that what [Page 9]by the Animosities of Men, and by Consequences, that it was impossible for him to foresee this Design of his might possibly come to be prejudicial to, and interfere with the Bank, tho' ne­ver so much contrary to his Intentions. The next Court of Di­rectors he appeared, and freely communicated to them his De­sign in its utmost Extent, in order to have their Judgments therein, the better to prevent what might be prejudicial to or interfere with the Bank. What he communicated to them was as follows,

  • First, That the Subscriptions was designed for a Fund to Insure Titles of Land.
  • Secondly, To Negotiate in Trusts and Settlements.
  • Thirdly, To borrow and lend Money upon Land.

Thus you see the two first could not in any sort preju­dice the Bank, and the last was only a Consequence of the for­mer, and arose from the Necessity occasioned by the Banks avers­ness from medling with Land. Thus Mr. Paterson endeavour­ed still to open the way for a good understanding, and to de­cline every thing that might but seem to interfere with the Bank; but when he was withdrawn, they entered into a Debate, whi­ther what he had offered was satisfactory, which was carryed in the Negative, and it was moved and carryed, that tho' the Court of Directors could not suspend a Member thereof, yet they resolved that the Governour should acquaint Mr. Paterson that it was their Opinion that he should decline his Attendance among them, until this Misunderstanding should be composed.

Thus they not only persisted in not suffering Mr. Paterson to answer for or explain himself, but presumed in Effect to Su­spend a Director without a General Court, to whom they are only answerable. But Mr. Paterson having no certain Information of these Resolutions, appear'd at the next Court of Directors, but be­ing somewhat late, the Minutes of the preceeding Court were read, and they were enter'd upon other Business; where when Mr. Paterson had staid a considerable time, some of the Directers began to whisper the Deputy Governour, who was then in the Chair; upon which he abruptly broke off from other Business, and ordered the Secretary to read some part of the last Minutes, which are mentioned before relating to Mr. Paterson, who thereupon stood up and said, that by these Resolutions he perceived the Directors still persisted to conclude him in his Absence; that since they had given him this [Page 10]Occasion, he should not only decline coming among them, but also the being a Director, and should give place to some or other of whose Head they might have less Cause of Jealousie, but ne­ver to any whose Heart was more true to the Bank; that altho' what the Bank had done for him laid no Obligations, but much the contrary, yet what he had done for that should alvvays in­duce him to Wish its Prosperity; upon which he withdrew, and in a few dayes after Transferred his Stock in the Bank, and so disabled himself from being a Director.

This was Mr. Paterson's Reward for all his Hazard and La­bour, and the Expence of near seven Hundred Pounds in promo­ting the Bank, whereof not above Fifty Pounds was contributed by any otherBesides One Hun­dred and Twelve Pounds ten Shillings he had for three quarters of a Years Al­lowance as a Director.; and by his great Attachment thereto, and unwea­ried Attendance therein, had been Damaged in his other Affairs here and beyond the Seas upwards of Four thousand Pounds more. He now finds by Experience, that had it been a Miscarriage, it had been his, and there had been no Danger of Competition; but now its a Success, it belongs to other People, and they reap the Fruits of it.

When you consider these things in themselves, as also that they were done by an Infant Corporation of but six or seven Months old, and this to a Person to whom the Bank owed the highest Respect and Gratitude, and all this Influenced by a sort of Men who have spent no small time in appearing against the Arbitra­ry and Illegal Proceedings of the East India Company; and who have been so very Nice in their Justice therein, that rather than not have Justice done, they would restore us the old Pagan Custom of punishing the Innocent with the Guilty; perhaps you will think it strange.

Doubtless what Mr. Paterson did for the Bank, was so freely and generously done, with a Dependance only upon the success, that it is not only the Duty of the persons concerned, but even of the Standers by, to do their utmost to procure him right, so far as it comes within their Knowledge or Power, if that be a Rule of Righteousness, That Men should love their Neighbours as themselves, and do as they would be done unto; and since the Case is such, as may be to Posterity a Reflection not only upon the Bank but upon the Government, and it may be upon the very Nation; and cer­tainly it can be but an odd sort of Omen for those who set up for Trustees for the Nation, and it will be no easie matter [Page 11]to perswade that those who are unjust and ingrateful in the beginning to the first Contriver and Promoter of the Bank, will prove otherwise in the end to other people, tho' they may make some shift so long as most is to be got by being just, or pretending to be so.

It's hard that neither a Mans Justice nor Usefulness, should some­times be able to protect him from Discouragement, Ingratitude and Injury; but tho' it be hard, it is not strange; for even the Pro­phets and Heroes of old were seldom or ever endured in their Lives; its true when Death made them incapable of Good or Hurt, Love or Hatred, and that there was no further danger of their Competition with any. Men commonly began to build and adorn their Sepulchres, and to display and magnifie their Virtues, but usually those Ghostly Qualifications were rather raised up in order to conjure down those of the Living, or for an Umbrage to worse Injuries to others then to make any attonement for those done unto them, how much soever pretended.

But thus it will be, so long as men have a sort of reserved and hidden itch and pleasure in deceiving and being deceived, and to follow Mock Lights rather than true, and have respect to the person speaking and doing, and not for the nature of the thing spoken and done; it often happening among the Crowd, that these who have least reason have most Impudence; and some­times men are lookt upon for the sake of their Ancestors, and not for their own, or because they have been Fortunate, Rich, or well allay'd, they must therefore be good for every thing; thus many times whole Societies of Men and Nations have the Virtue and Reason among them chilled and frozen up by that, or that supposed of sombodies Ancestors, or by the power or fortune of some or other, who gets the Ascendant over them, but when a Prince or People are blest with somuch Virtue as to break those formal fetters, and to make some use and account of true Virtue, where ever they find it, they always do wonders, this being the ordinary means by which Almighty God exerts his power of making great things little, and little things great.

It's wonderful to consider from what small beginnings and oc­casions sometimes great things have their rise, for how casie had it been to have laid perpetual Obligations upon Mr. Paterson to the Bank of England; for perhaps had but a few more of the Directors harboured the same generous Seniments of, and Kind­ness [Page 12]for Mr. Paterson, that eight or nine of them did, or if the Court of Directors had but used softer words in expressing them­selves in what related to him, as the most moderate and discreet among them advised; the Orphans Fund had not now, if ever been, what it is, and is like to be. Thus the Antipathies of those Gentle­men who have been so great Opposers of Mr. Paterson, and what is due unto him, have providentially been of greater use to the World in this, then perhaps ever their Sympathies were in any thing else, and have, how little soever they intended it, thereby rendered Mr. Paterson and what he proposed far more considerable then ever they could otherwise have been.

Providence thus seasonably putting some reasonable Stop and Limits to the Course and Bounds of the greatness of the Bank of England, which hath and doth proceed from the nature of the thing, and not from the singular Virtue and Conduct of the Ma­nagers more than other men; as some who judge of things only by their outsides have thought; which being in the hands of men who cannot endure Prosperity, no not for six or seven months, might have been of dangerous Consequence to the very Nation as well as themselves. Thus when Almighty God will disappoint or destroy, he first hardens Mens Hearts, and blinds their Eyes.

And surely tis strange, to see how far the Passions of men will carry them; for tho' the Gentlemen of the Bank, but a few months since, have seen the prejudices and little shifts of the Gold­smiths return upon their own heads, which have been so far from answering the Ends proposed, as to be none of the least im­mediate causes of the subite and surprizing success of the Bank; yet that those very men should be so infatuated, as to take the same and some other more preposterous Courses with the Orphans Fund in their, but especially in some of their Carriage to Mr. Paterson, and in refusing to take, or so much as to receive the Notes of the Orphans Fund, thereby manifesting to the World their imposing and insulting Dispositions more than others could have done; a feasonable caution not only to the Proprietors of the Orphans Fund, but to all others, what to expect if they happen to come within their reach and power. In the mean while, it hath served only to make the Orphans Fund the better beloved, and to distinguish it the more, rende­ring even their own Friends and Customers the more uneasie with them; and the more inclinable to the Orphans Fund; thus we find the Directors of the Bank of England such a sort of Christians, that for the very satisfaction of thinking they torment others, [Page 13]they are content to be tormented themselves. But whatever it may be with Directors of Banks; we know its but usual for such sort of Animals as want, or have not the use of, reason to have re­course to rage.

Thus having given you some account of Mr. Patersons Trans­actions in, for and with the Bank, I shall now proceed to do the same with relation to the Orphans: Fund.

This Fund was begun by a Subscription of the Orphans-Fund of per­petual Interest for Four Hundred Thousand pounds, and afterwards two hundred thousand pounds more was added thereunto, and sixty pounds in money allowed as an Equivalent for one hundred pounds of the said Orphans Interest. This Fund was and is princi­pally designed for Land, but being a free and voluntary Settle­ment, they have also liberty to do what otherwise they shall find for their Advantage, they have no Legislative nor Royal Conces­sions for shelter or recourse; nor have they any lofty Titles or Daz­ling Denominations for or towards their support; but they lye open and have not, nor expect not any protection but from their own Integrity and the Common Laws of their Countrey; which will of course induce them to the greater Caution and Vigilance in their intended Undertakings which are not designed to prejudice others, but only to improve their own Estates so far as they law­fully may; in fine they have both a publick and particular good in their Hands, and seem to be the happy instruments for hand­ing thereof to the present Age and Posterity.

And what is like to remain a blemish to the Bank of England, will be the lasting glory of the Orphans: Fund, for tho' the Institu­tion of both be equally due to Mr. Paterson, to whomsoever some of the particular Constitutions may be, and the Bank Cost him incomparably the most Time, Pains, Hazard and Expence, yet from the Bank he had only such Returns as you have heard; but the Trustees and Proprietors of the Orhans: Fund, generously and unanimously conceded to Mr. Paterson five per Cent. per Annum of their profits above the Orphans Interest for one and twenty years, to come and if it be under some Restrictions, they are such as he always intended as just and reasonable, and therefore willingly submitted unto; and which sufficiently shew the value the Di­rectors and Proprietors of the Ophans-Fund have for him, all which hath doubtless laid him under perpetual Obligations to do his ut­most for their advantage since to a just and generous person, no [Page 14]Obligation upon Earth can be more firm and durable than what they have laid upon Mr. Paterson.

Whosoever shall duly consider the Settlement of this Fund, will find it to be one of the clearest, least entangled, and most suita­ble, and convenient, that ever was of that kind in the trading World. But things which depend so much upon the practice, can never be easily exprest by words, wherefore I shall leave it to time to explain, and only say, that the Bank is a Fund for the pub­lick, but the Orphans-Fund for the particular Estates of England; the Bent of the Constitution of the Orphans-Fund is for real Estates, the Bank for personal; the Bank resembles the Goldsmith altogether, but the Orphans Fund also much of the Money-Scriveners; the Orphans Fund may lawfully do whatsoever is permitted to the Bank, and also many other things, which the Bank is not permitted to do, for the better Understanding whereof I shall here insert

An Abstract of the Deed of Settle­ment for Constituting The Orphans Fund.

I. THe Subscribers agree to Consolidate their several Rights and In­terests, amounting in the whole to Six Hundred Thousand pounds, by Transferring the same to the Trustees and Directors there Named, for the better Improvement thereof.

II. The Trustees accept the Trust, subject to the Uses and Conditions, and assume the Name, and Addition of Trustees and Directors of the Orphans Fund.

III. First Trustees to continue 'till the first day of May, 1696. and from thence 'till others be Chosen, and have the Trust vested in them.

IV. From and after the said First day of May, the Owners of the Fund upon some day or days of the said Month of May, and so Annu­ally, shall Choose the Trustees and Directors thereof, the Number of whom are not to be less than Twenty One, nor more than Twenty six.

V. Elections to be by Majority of Votes, of the persons present each Five Hundred pounds to have One Vote, and none to have more than Five Votes.

VI. Three days Notice of Election at least to be affixed on the Roy­al Exchange London, from time to time.

VII. In case of the Death or Avoidance of any of the Trustees, the Survivors of them to assemble the Owners of the Fund to elect others.

VIII. None to be elected Trustee unless he have two thousand pounds at least in the Capital Stock of the Fund.

IX. No Trustee to be admitted to transfer any part of his two thousand pounds, qualifying him thereto, before he have Resigned and Conveyed his Trust.

X. In Case any Trustee shall refuse to Resign and Convey his Trust, his two thousand pounds to go to the Use and Benefit of the rest of the Owners of the Fund.

XI. If the Trustees do not summon a General Assembly in the Month of May, any Ten or more qualify'd for Electors may in June next ensu­ing, by Notice as aforesaid, Summon a General Assembly to be held in the same manner as if held in the Month of May.

XII. Trustees at any time upon demand of any ten or more of the Electors to summon a General Assembly.

XII. Upon the Refusal of the Trustees by the space of ten dayes or more, such ten or more of the Electors may by such Notice as aforesaid, Summon and hold such General Assembly.

XIV. In the removal or displacing of all or any of the Trustees, and all other Matters and things by them transacted, (excepting only in Elect­ing Trustees and Directors as aforesaid) the General Assembly to act and proceed by Majority of Votes of the persons present qualify'd for Vo­ting as aforesaid, every person having One Vote and no more.

XV. General Assemblies, upon reasonable Cause assigned, may remove and displace all or any of the Trustees and Directors for the time, and Elect others in their stead; and order and direct the making of the Divi­dends, allow Gratuities to the Trustees and Directors, and to make and settle such further and other Rules and Constitutions for the good Government and Improvement of their Capital Stock or Fund, as they shall from time to time think needful, but subject to the Trust, which Acts and Proceedings of theirs shall be binding and conclusive to all and every the Proprietors and Owners of the said Fund.

XVI. Trustees or Majority of them Assembled, to act by plurality of Votes, each person having one Vote and no more.

XVII. Trustees may constitute Sub: Committees, or lesser numbers of them­selves to act as they see cause.

XVIII. Trustees may borrow Money at Interest, or without, charge the Fund by Bills or Notes of Credit, with the payment of any sums of money, as also may charge the same or any part thereof with any other Contracts, Debts or Ingagements by them or their order, to be given out upon security thereof.

XIX. May Lend Money upon, or purchase Lands, Leases, Goods or Chattels, or in Exchange for other Bills or Notes.

XX. May lend money on the Stock, or any part thereof, without any actual Transfer.

XXI. Stock answerable for all Debts due from the Proprietors thereof to the Company.

XXII. Trustees may take to themselves, or any of them, for the use of the whole, any Conveyances or Assignments of Lands or other Estates, and suffer the persons Conveying to draw Bills fer the value. And may transact and do all such other matters and things as they shall judge for profit and improvement of the Fund.

XXIII. May appoint Officers and Servants, allow Sallaries, settle Fees, and do all other things needful for the management of the said Fund.

XXIV. Trustees in Person and Estate indempnified for acting therein, unless for wilful fraud, or apparent Breach of Trust, in which case only, the person or persons guilty shall be chargeable therewith.

XXV. Trustees and Owners of the Fund in their Persons or Estates, not liable for more, or further, than their respective proportions in the said Fund.

XXVI. Subscribers directed to Transfer the Legal Interest of the Or­phans Credit to the Trustees.

XXVII. Trustees may accept of 60 l. as an equivolent for, and in lieu of each 100 pounds in the Orphans Credit.

XXVIII. Power to purchase Supplimental Funds with the money so paid in lieu of Orphans Credit, but may employ the money at Interest until such Purchase can be made.

XXIX. The whole Fund shall Continue and Remain in the Trustees and Directors, as a perpetual Fund of Credit and Security, and be called, The Capital Fund consolidated in the Trustees and Directors of the Or­phans Fund, never to be sold nor alienated in any other way and manner then is herein declared.

XXX. That for the space of one and twenty years, from the 24th. of June, 1695. The Trustees out of the profits annually or oftner shall pay and divide among the owners of the Fund so much of the profits as shall amount to so much money for every hundred pounds as shall be equivalent to the Interest paid by the City of London, and so for a greater or les­ser Summ.

XXXI. That the Surpluss of the profits and incomes for the first ele­ven years, part of the said one and twenty years, be laid out in Funds of Augmentation to the same uses, for Corroborating, Strengthning and Aug­menting the Fund.

XXXII. That the Rents, Profits, and contingent Improvements of such Funds of Augmentation, be annually or oftner if need be, for ever divided in manner following, that it to say, one twentieth part, the same being in­to twenty equal parts divided, to Mr. Paterson, his Executors, Admini­strators and Assigns, for proposing and contriving the Settlement, and the Residue to the owners of the Fund, proportionable to every ones interest there­in.

XXXIII. And for the remaining ten years, other part of the said one and twenty years, after the payment of the Orphans interest thereout as aforesaid, the Residue of the Profits and Incomes to be annually and oftner divided, one twentieth part to Mr. Paterson, and the Residue to the Owners of the Fund, in proportion to every ones interest therein.

XXXIV. The Publick Books and Accompts of the Company to be conclusive, to Mr. Paterson his Executors, Administrators and Assigns for the said twen­tieth part, and he or they not allowed to demand any other Account either in Law or Equity.

XXXV. In case Mr. Paterson shall dye before the end of the said one and twenty years, the Trustees and Directors for the time may purchase the said twentieth part of the profits, reducing the first seven years of the same into an average, and deducting six per Cent. per Annum interest for their money in the usual way of purchasing Annuities.

XXXVI. If Mr. Paterson shall Sell or Transferr his Two Thousand [Page 18]pounds, qualifieing him for a Trustee; or in case he shall at any time settle, or establish, or accept, or take upon him any place of Trust, in any other Bank, or publick Fund of Credit and Security within this Kingdom, without Consent of the General Assembly of the said Fund, then and from thenceforth the said twentieth part of the Profits shall result and go from Mr. Paterson to the use of the Owners of the Fund, proportionable to every ones Interest therein.

XXXVII. That from and after the said One and Twenty Years, the whole Profits and Improvements for ever to go to the Owners of the Fund, proportionable to their respective Interests.

XXXVIII. Dividends not to be made but by order and consent of the General Assembly.

XXXIX. The Fund and all the profits and improvements thereof subject to the Uses and Trusts therein, to be to the use and benefit of the Owners and Proprietors, proportionable to every ones interest in the Register Books of the Company, and for no other use or uses.

XL. Register Books of Credit and tranfer to be kept by the Trustees, wherein and whereby every ones interest in the Fund shall be exprest and as­certained.

XLI. That the manner of transferring shall by an Entry in or upon some or one of such Register Books, signed by the person transferring the same, or some other thereunto, on his or her hehalf, by him or her appointed.

XLII. Likewise the Acceptance thereof shall be by an Entry in such Register Books, signed by the party accepting, or some other by him or her thereunto appointed.

XLIII. Mr. Paterson's twentieth part to be transferred in such man­ner as he or his Executors or Administrators shall by writing in and upon such Register Books direct and appoint.

XLIV. No other transfer and assignment of the Fund to be good.

XLV. The Fund in trust to descend to Executor and not to Heir.

XLVI. Transferrable by Executors, notwithstanding devise in specie, but not to alter the devise.

XLVII. Power to Trustees and Owners of the Fund to make further, and other Deeds, Settlements and Declarations of Trust, for the more effectu­al Constituting, Setling and Establishing of the said Fund, upon the Trusts [Page 19]and for the uses aforesaid, as shall by Counsel learned in the Law be reaso­nably Advised, Devised or Required.

XLVIII. This Deed to be inrolled in the High Court of Chancery:

Thus you see an effectual Course taken to prevent the smaller Participants by Animosities or other Corruption, to render the Go­vernment of the Fund over Precarious and Mutable, by allowing one Person to have a Number of Votes not exceeding Five, in Election of Directors: As also here is due Care taken that the greater Participants may not be able to overtop the lesser, and Contract the Management in a few, to the Prejudice or Discou­ragement of the rest, by allowing only One Vote in displacing of Trustees and Directors, and in all other Matters of the Govern­ment of the Fund.

Here is also sufficient Provision made to prevent what hath ruined most Companies, which is the dividing and taking out not only the Profits, but often all or the greatest part of the Stock; and if the Liberty of making Dividends at large be per­nicious to all Companies, it must needs be abundantly the most to Companies of Credit and Security.

And here is not only Care taken to prevent Dividing or Weak­ning the Stock, but a way found to strengthen and Corroborate the same by every Dividend, and yet every particular Person's Occasions may be served as well or better than if the Dividend were made in Money; for Yearly or oftener when Funds of Augmentation are settled, there can be no better or readier Pur­chases for the Company, than to buy such Proportions there­of, as are to be disposed at the Original Rate.

Thus Widdows, Orphans, and others, instead of taking ready Money, and be left to Improve it how they can, will have it in their Choice, whether they will take that, or an Annual Income settled to their hands, thus the Fund may improve it self by it self, having opportunity to make interest upon interest by eve­ry Purchase of this kind.

By this and the scope of the whole Settlement, every part of the Fund will not only be made quick and Living Stock, but whatsoever else they Transact, and shall be suited to their Con­stitution, will also be such. Thus by allowing the small difference [Page 20]of Three per Cent. per Annum, or such like, People will always have the Use, Convenience and Command of ready Money for their Effects, in or with this Fund.

I shall not speak of some things they intend, different from other Banks or Funds, as their Design towards introducing a Vo­luntary Register for Lands, and several other things not yet in pra­ctise, they have already brought the Interest of Money upon Bul­lion, Bills of Exchange, and Bills in Trade, to three per Cent. per Annum. And were it fit for me to publish what I have heard of their intended Undertakings, perhaps I might say them faster, yet never so well as they may do them; time in the steps which they shall take, will doubtless be the best and clearest demonstrations.

Thus you see, that tho' Mr. Paterson be not so Industrious to pub­lish his Merit, as some others would have been, yet hath he not less, but much more deserved of the Bank of England than the Or­phans Fund, how different and unsuitable soever the Returns may be, and I hope he will at one time or other give us in Writing the full Ac­count of what hath pass'd in these Matters, together with the Authen­tique Peices relating thereunto, if not from his own Inclinations, yet at the Request of his Friends, that tho' the present age and posterity may lose by the ill usuage and discouragements he hath met with, not only from the influence it may have upon himself, but upon the Spirits of others, who might otherwise be capable and ready to serve their Country in things of this nature, yet at least that they may not be deprived of so material a piece of History relating to the pra­ctice of Men and Things, and in the mean time what else of mo­ment of this kind shall occur, I shall not fail to advise.

I am Yours, J. S.

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