By an act passed in the 8th and 9th years of the reign of King William III. they were empowered to enlarge their capital to 2,201,171l. 10s. It was then also enacted, that bank stock should be a personal and not a real estate; that no contract, either in word or writing, for buying or selling bank stock, should be good in law, unless registered in the books of the bank within seven days, and the stock transferred within fourteen days; and that it should be felony, without benefit of clergy, to counterfeit the common seal of the Bank, any sealed bank bill, any bank note, or to alter or erase such bills or notes.
In the 7th of Queen Anne, the Company were, by another act, impowered to increase their capital to 4,402,343l. and at the same time they advanced 400,000l. more to the government; and in 1714, they advanced the sum of 1,500,000l.
In the third year of the reign of King George I. the interest of their capital was reduced to 5l. per cent. when the Bank agreed to deliver up as many Exchequer bills as amounted to two millions, and to accept of an annuity of 100,000l. per annum. It was also declared lawful for the Bank to call for from their members, in proportion to their interests in the capital stock, such sums, as in a general court should be found necessary; but if any member should neglect to pay his share of the money so called for, at the time appointed, by notice in the London Gazette and fixed up in the Royal Exchange, it should be lawful for the Bank, not only to stop the dividend of such member, and to apply it towards the payment of the money so called for, but also to stop the transfers of such defaulter, and to charge him with an interest of 5l. per cent. per annum, for the money so omitted to be paid; and if the principal and interest should be three months unpaid, the Bank should have power to sell so much of the stock belonging to the defaulter as would satisfy the same. This stock is now called Bank Circulation, every proprietor of which receives 5l. per cent. per annum, but is obliged to advance, if called for, 1000l. for every 100l. so paid in.
The Bank afterwards consented to have the interest of two millions still due from the government, reduced from 5 to 4 per cent. The Company also purchased several other annuities, that were afterwards redeemed by the government, and the national debt due to the Bank was reduced to 1,600,000.
At length in 1742, the Company agreed to supply the government with 1,600,000l. at 3l. per cent., by which means the government became indebted to the Company 3,200,000l. the one half carrying 4, and the other 3 per cent.
In 1746, the Company consented that the sum of 986,800l. due to them in Exchequer bills unsatisfied, on the duties for licences to sell spirituous liquors by retail, should be cancelled, and in lieu thereof to accept of an annuity of 39,442l. the interest of that sum at 4l. per cent. The Company also agreed to advance the farther sum of 1,000,000l. upon the credit of the duties arising by the malt and land tax, at 4l. per cent. for Exchequer bills to be issued for that purpose, in consideration of which the Company were enabled to augment their capital with 986,800l. the interest of which, as well as that of the other annuities, was reduced to 3l. 10s. per cent. till the 25th of December 1757, and from that time they carry only 3l. per cent.
In short, several other sums have since been raised by the Bank for the service of the government: but the above is sufficient to give a full idea of the nature of the several species of annuities; only it may be proper to add, that what is called Bank Stock is entirely distinct from these, and may not improperly be termed, the trading stock of the Company, since with this they discount bills, and deal very largely in foreign gold, &c. which they only buy by weight, which trade is so very considerable, as to render a share in this stock very valuable, tho’ it is not equal in value to the East India stock. The Company make dividends of the profits half yearly. Pocket Library.
The transfer days at the Bank altered in 1758, are now as follows:
Bank stock, Tuesday, Wednesday, Thursday and Friday.