was, and if his own stock decreased, that sum lent would be taken from him.

"If 15000 is supposed the money in bank, and 75000 lib. of notes out; 60000 lib. is added to the money of the nation, without interest; for what is payed by the borrowers, is got by the proprietors. as the money of the nation increases, the credit of the bank increases, and the sum of notes out is greater; and so far from making the people less sensible of the condition of the country, a surer judgment of the state of trade and money may be made from the books of the bank, than any other way.

"If trade can be carried on with a 100000 lib. and a ballance then due by foreigners; the same measures, and a greater quantity of money, would make the ballance greater. nor is that additional money the bank furnishes, to be supposed will be lost, if by a ballance due from trade the silver money increases: that credit may fail from an accident when money is plentiful, and would soon be recover'd; 'tis only lost by a scarcity of money. such a credit may support trade, in cases where without it trade would sink, but cannot do prejudice.

"Another objection is made against the bank. that it encouraged the exportation of money, by furnishing sums in such species as were of most

value abroad. to answer this objection, I shall make a supposition. A. B. merchant has occasion for a 1000 lib. in Holland, and desires C. D. banker to give him a bill for that value; there is no money due in Holland to Scots merchants, so C. D. must export the money to pay the bill he draws: but, there being no bank, nor any possibility of getting a 1000 lib. in 40 pence pieces, he sends out money of different species. this does not hinder the money to go out, but makes the exchange dearer by 2 or 3 per cent., than it would have been if 40 pence pieces could have been got. and tho' no other money were left, but old marks, if a ballance is due, these will go out, tho' not worth 10 pence: the exchange will be so much higher, the profit of exporting is the same; and so far from doing hurt to the country, the bank by furnishing such pieces as could be exported to least loss, kept the exchange 2 or 3 per cent. lower than otherwise it would have been, and saved yearly the sending out a considerable sum to pay a greater ballance, the higher exchange would have occasioned."*

*Charles Reade, in "Love Me Little, Love Me Long," makes John Law the subject of an interesting story of adventure in finance, from which quotation has later been made. Emerson Hough's comparatively recent novel, "The Mississippi Bubble," makes Law the hero of the story vividly picturing the financier's skyrockety career in Paris. Quotations from these novels are made in Part III. of this book.

III

SIR WILLIAM FORBES

WIT

1739-1806

Far may we search before we find
A heart so manly and so kind!
And not around his honoured urn
Shall friends alone and kindred mourn;
The thousand eyes his care had dried
Pour at his name a bitter tide;
And frequent falls the grateful dew
For benefits the world e'er knew.

ITH these strong words of eulogy does Scott-in his introduction to the fourth canto of "Marmion"-make mention of one of the noblest men who has reflected honor upon the banker's calling.

This high estimate was shared by Boswell who in his "Tour of the Hebrides," thus refers to the meeting of the banker and the poet: "Mr. Scott came to breakfast, at which I introduced to Dr. Johnson and him my friend Sir William Forbes, a man of whom too much good cannot be said; who, with distinguished abilities and appreciation in his profession of a banker, is at once a good companion and a good Christian, which, I think, is saying enough."

The letters of Dr. James Beattie, poet and scholar, contain many allusions to the high re