But we find we have got to the end of the space allotted to us, and though we have only, as it were, dipped into the bulk of our subject, we must defer for some other opportunity the description of the large number of old tea-gardens still to be noticed. We will here only indicate the most important of them: Camberwell Grove, Cuper's Gardens, Chalk Farm, Canonbury House, Cumberland Gardens, Cupid Gardens, Sluice House, Eel-pie House, St. Helen's, Hornsey Wood, Hoxton, Kilburn Wells, Mermaid, Marylebone, Montpellier, Ranelagh, Paris Gardens, Shepherd and Shepherdess, Union Gardens, Yorkshire Stingo, Jew's Harp, Adam and Eve, Tottenham Court Road; Adam and Eve, St. Pancras; the Brill, Mulberry Gardens, Springfield, and others of less note.
XIII.
WILLIAM PATERSON AND THE BANK OF ENGLAND.
Some London streets have strange and unsuitable names; thus you will find an alley of wretched hovels, with muddy yards, containing nothing but cabbage-stumps and broken dustbins, called Prospect Place; whilst a lane adjoining the shambles styles itself Paradise Row. And what a curious name for a street is that of Threadneedle[#] Street! How came the street to be so named? However, such is its name, and in this case it is not inappropriate. For lives there not in that street the Old Lady who is, year in, year out, everlastingly threading her diamond needle with gold and silver threads, and working the gorgeous embroidery of the financial flags of her own and of almost every other country in the world? Her dwelling is palatial; to be merely admitted into her parlour is in itself a positive proof of your respectability, for you gain no entrance thereto unless you are a stockholder; as to her drawing-room, the glories of Versailles and the Escurial are as miserable shanties, for her drawing-room contains, leaving alone other treasures, engravings worth from five pounds each to fifty thousand—nay, a hundred thousand pounds each. There is no five o'clock tea there, but plenty of music all day long; its notes, indeed, are silent, but the gold and silver instruments, whose fascinating and entrancing sounds have more magic in them than has the finest orchestra, vocal or instrumental, are audible enough. And as to her cellars, the treasures the Old Lady keeps there would buy up half a dozen such caves as that into which Aladdin descended.
[#] Stow calls it Three Needle Street, as Hatton supposes, from such a sign. It has also been written Thrid Needle and Thred Needle Street, but our ancestors were not so particular as to spelling as we are.
The reader has by this time discovered who the Old Lady of Threadneedle Street is—namely, the Bank of England—the most gigantic monetary establishment in the world, the financial reservoir, the opening or shutting of whose sluices causes not only the commercial ebb and flow of east and west, of north and south, but sets in motion or prevents the 'pomp and circumstance of glorious war.'
The history of this mighty establishment has often been told, but it seems to us that but scant justice has as yet been done to its founder, William Paterson. The injustice done to him, in fact, dates from an early day, for soon after the foundation of the Bank, of which he naturally was one of the directors, intrigue drove him from that position, and envy and obloquy pursued him ever after. But let us briefly recount his early history.
Born on a farm in Dumfriesshire in 1658 of a family notable in old Scottish history, he was, at the age of sixteen, transferred to the care of a kinswoman at Bristol, on whose death he inherited some property. Bristol was then a great commercial emporium, doing with much legitimate business a little in the slave trade, and his connection with that town was afterwards injurious to him, for whilst his friends said that he visited the New World as a missionary, his enemies asserted that he was mixed up with slave-dealing, and occasionally indulged in piracy. But the fact of his marrying the widow of a Puritan minister at Boston is more in accordance with the statements of his friends than with those of his enemies. Anderson, the historian of commerce, who as a lad must have known him in his old age, speaks of him as 'a merchant who had been much in foreign countries, and had entered far into speculations relating to commerce and the colonies.'
He was in England in 1681, and, among the various schemes he started, he took a leading part in the project for bringing water into the north of London from the Hampstead and Highgate hills. He made a heavy investment in the City of London Orphans' Fund; in the improved management and distribution of that charity he took a profound interest, a fact which leaves no doubt of his philanthropic and public spirit. It was in 1684 that he first conceived the idea of the Darien scheme, and though this turned out so unfortunate, he from first to last acted with rare disinterestedness; his errors were those such as a well-balanced and generous mind might fall into without reproach. Nor is the failure of that enterprise to be attributed to him, but to the conduct of William III., who had sanctioned, but afterwards, at the instigation of the East India Companies of England and Holland, discouraged and positively thwarted, it. How deeply he felt the disastrous results of the expedition is shown by the fact that for a time his mind was deranged in consequence of it. And who will now deny that Paterson was right in calling the Isthmus of Panama the 'door of the seas and the key of the universe'? In 1825 Humboldt recommended the scheme of a canal from the Atlantic to the Pacific, and the enterprise of Lesseps will yet be carried to a successful issue.
However, we have to deal with Paterson chiefly as the founder of the Bank of England, and with the long and fierce battle he had to fight to accomplish his object, for there was great opposition to it from interest and prejudice. Paterson had been long in Holland, and when he propounded his scheme of a Bank of England, the people objected to it as coming from Holland; 'they had too many Dutch things already,' just as now there is a prejudice against things 'made in Germany.' Moreover, they doubted the stability of the Government of William III. At last, however, they consented to the Bank, on the express condition that £1,200,000 should be subscribed and lent to the Government. The money was subscribed in ten days. The Bank Act was obtained in spite of all opposition, which perhaps would have prevailed had not Queen Mary, acting on the instruction of William (then in Flanders), during a six hours' sitting, carried the point, and the company received their royal charter of incorporation in July, 1694. Almost as soon as it had been established the Bank was called upon to assist the Government in the re-coinage of the silver money. The notes of the new Bank were destined to fill up the vacuum occasioned by the calling in of the old coin, but as the notes were payable on demand, they were returned faster than coin could be obtained from the Mint; a crisis ensued, during which the notes of the Bank fell to a discount of 20 per cent. But the Bank passed safely through its difficulties, as also through the troubles caused by the South Sea Bubble. The opposition in the first crisis was due chiefly to the goldsmiths, who detested the new corporation because it interfered with their system of private banking, hitherto monopolized by them. Paterson's advice was of the greatest assistance in his capacity of director, yet such was the animus against him that, as we mentioned above, in 1695 he sold out the stock he held (£2,000), which from the first was a director's qualification, and retired from his office. But he did not withdraw from public life. The Darien Expedition already referred to was organized by him in 1698, and its disastrous results were, as we have shown, in nowise attributable to him, and this was, in fact, eventually admitted by the nation, Parliament in 1715 passing an Act awarding him an indemnity of upwards of £18,000 for his losses in that enterprise. In other ways Paterson continued to interest himself in matters affecting the public welfare; he rendered his Sovereign signal services by the wise and shrewd advice he gave him during the latter part of his troubled reign; he published many tracts on the management of the National Debt and the system of auditing public accounts; he was a zealous advocate of Free Trade, and his views on the subject of taxation were far ahead of the ideas of his day. His undoubtedly great talents, his thorough honesty and genuine patriotism, fully entitle him to the praise given him by his friend Daniel Defoe, as 'a worthy and noble patriot, one of the most eminent, to whom we owe more than ever he would tell us, or, I am afraid, we shall ever be sensible of, whatever fools, madmen, or Jacobites may asperse him with.'