DOI Seite / Zitierlink:
https://doi.org/10.11588/diglit.22140#0150
134 INDUSTRIAL AND COMMERCIAL HISTORY.
Pitt revived the policy, which had been adopted in the War
of the Austrian Succession, and of the Seven Years' War, of
subsidizing the German emperor and knights. The practice
indeed may be said to have been begun earlier, for William III.
is constantly complaining of the rapacity of these personages
during his own war, Peterborough dwelling on the same topic
during the Spanish campaign, and Marlborough during his
experiences, though to be sure the great captain was not above
imitating them. But value was received for what he got, little
or no value from what was got by the Serene Highnesses. In
Pitt's day the subsidies were greater, and the results most
disappointing. Now, in order to pay these people, cash was
wanted. Pitt could and did impose what taxes he pleased
through a sham Parliament, but he wanted ready money. So
the heaven-born minister drew on the Bank till he had nearly
drained it of its treasure, and the* Bank began to be alarmed ;
I presume at the likelihood of its being repaid its advances, for
it had made its loans, not upon securities of unquestionable value
and accuracy, but upon the proceeds of future and experimental
taxation. He determined, therefore, to direct the Bank not to
honour its notes, and obtained from Parliament an indemnity for
their action, which was intrinsically one of bankruptcy, just as he
could have procured from that assembly the suspension of the ten
commandments had he so minded.
So high, however, was the credit of the Bank, that in a very
short time it had collected money enough to have enabled it to
resume its liabilities and cash its notes. But the Government
had found out how useful its metallic reserves might be in the
war which it was carrying on, and refused to allow it to recover
its reputation. Still, for a long time, either because its reputation
still stood high, or because it limited its issues to the ascertained
wants of the public, the note remained at par, the indication of
the fact being supplied principally by the foreign exchanges. In
course of time, however, as the war assumed greater and greater
proportions, as the waste of wealth went on, and the susferings of
everybody, except those of state jobbers and financiers, increased,
the Bank was tempted by the prospect of trade profit to issue its
notes in excess of public requirements. They did not return on
Pitt revived the policy, which had been adopted in the War
of the Austrian Succession, and of the Seven Years' War, of
subsidizing the German emperor and knights. The practice
indeed may be said to have been begun earlier, for William III.
is constantly complaining of the rapacity of these personages
during his own war, Peterborough dwelling on the same topic
during the Spanish campaign, and Marlborough during his
experiences, though to be sure the great captain was not above
imitating them. But value was received for what he got, little
or no value from what was got by the Serene Highnesses. In
Pitt's day the subsidies were greater, and the results most
disappointing. Now, in order to pay these people, cash was
wanted. Pitt could and did impose what taxes he pleased
through a sham Parliament, but he wanted ready money. So
the heaven-born minister drew on the Bank till he had nearly
drained it of its treasure, and the* Bank began to be alarmed ;
I presume at the likelihood of its being repaid its advances, for
it had made its loans, not upon securities of unquestionable value
and accuracy, but upon the proceeds of future and experimental
taxation. He determined, therefore, to direct the Bank not to
honour its notes, and obtained from Parliament an indemnity for
their action, which was intrinsically one of bankruptcy, just as he
could have procured from that assembly the suspension of the ten
commandments had he so minded.
So high, however, was the credit of the Bank, that in a very
short time it had collected money enough to have enabled it to
resume its liabilities and cash its notes. But the Government
had found out how useful its metallic reserves might be in the
war which it was carrying on, and refused to allow it to recover
its reputation. Still, for a long time, either because its reputation
still stood high, or because it limited its issues to the ascertained
wants of the public, the note remained at par, the indication of
the fact being supplied principally by the foreign exchanges. In
course of time, however, as the war assumed greater and greater
proportions, as the waste of wealth went on, and the susferings of
everybody, except those of state jobbers and financiers, increased,
the Bank was tempted by the prospect of trade profit to issue its
notes in excess of public requirements. They did not return on