Heins was far from meaning to say that the Bank dealt only to the extent of these forty millions. It was not necessary that precious metal should be kept to meet the presentation of bank receipts which had expired. It was enough that receipts in actual circulation should be convertible; and forty millions of guilders seemed to him a rather striking amount of convertible currency, to be issued by one bank.
"You should remember, Mr. Snoek, that this Bank is not like other banks, where merchants may deal or not, as it pleases them. Your law that every bill drawn upon Amsterdam, or negotiated here, of the value of 600 guilders, must be paid in bank money, obliges all merchants trading in your country to have an account with your Bank; so that the amount of money in these treasure-chambers is a pretty fair guide to the extent of your commerce."
Heins observed that the law in question was necessary, as, before it was made, the varying quality of the metal currency at Amsterdam rendered the value of bills of exchange so uncertain as materially to injure the operations of commerce. In a place to which money flowed from all parts of the world, there must necessarily be much clipt and worn coin in circulation. While such coin was present, all that was issued, new and good, from the Mint, immediately disappeared; and to whatever extent the issue might proceed, the merchants could scarcely obtain enough good money to pay their bills. Under these circumstances, the institution of bank-money was most serviceable to the credit and commerce of the country; and the law which compelled the payment of all bills of 600 guilders and upwards, in such money, was only a new evidence, in Heins's opinion, of the depth of Dutch wisdom, and the fertility of Dutch genius. How well the experiment had answered was proved by the willingness of all respectable merchants to pay a premium for this bank money. Though the difference between good coin and the light money which was poured into Holland at the time of the establishment of the Bank was no more than nine per cent., the merchants had been willing, from the very beginning, to allow the bank money to bear a more considerable agio.
They might well be thus willing, Master Peter thought, since their bank deposits were safe from robbery, fire, and other accidents; the whole city of Amsterdam being bound for it.
"The city, though not the depositing merchants, was very near losing much of its bank wealth by fire," replied Heins, pointing to a part of the Stadt-house which appeared newer than the rest. "See how near the treasure-chamber the flames must have approached! Some say that smoked guilders blacked the hands of the receivers, so lately as twenty years back, when the Bank was called upon to make large issues of coin, from the French having reached Utrecht."
"This proves either extraordinary confidence in the Bank, or that it keeps an ample stock of precious metal," observed Peter. "Money cannot be much wanted which remains smoked for sixty years after a fire. However, your merchants are wise to let money remain where it is safe."
"Our bank-credits serve our objects as well as cash," replied Heins; "and if we called out our funds in the shape of coin, every good ducat would be worth no more than the base money which foreigners set afloat in the market. It answers our purpose better to sell our claim for this money at a premium than to use the actual money; and thus the Bank preserves its resources within itself."
"And more than preserves them. Your city must derive a fine revenue from this Bank. There are fees on deposit; fees on transfer; fines for neglecting to balance accounts twice a-year; and no little profit by selling foreign coin for more than is given for it, and by disposing of bank-money at a higher agio than that at which it is received. All this together must amount to much more than the expenses of the establishment."
Heins began to feel an increase of respect for the foreign sailor, who seemed to know as much of commercial concerns as if he had been a Dutchman. He was also impressed by the tone of confidence with which the stranger spoke of what improvements would be adopted from abroad into his own country. It was strange to hear him now pronouncing upon a national bank as one of the necessary institutions of the Keiser's new city. No commerce, he declared, could proceed on equal terms between a country that had stable banks and one that had not. The advantages of a bank as a medium for the transaction of business, as a rendezvous for the balancing of bills of exchange, and, above all, as a security, by the practice of discounting, against all dangerous inequalities in the distribution of money, were too great to be compared with any other plan of mutual accommodation. The Stadt-house might be rivalled as a building; but unless its noble banking institution was adopted, no imitation could command such respect as the original. The Keiser must establish a bank, or the great city of the Neva would never rival that of the Amstel, to whatever pitch of grandeur its contemplated navy might attain.
Heins was so far propitiated by this speech that he would have allowed the sailor to stand immediately behind him when the procession passed, if it had so pleased Master Peter; but his curiosity was too active to allow him to stand stock still, as he was desired, when the unaccustomed train of horsemen appeared in sight. He laughed very unceremoniously at the portly figures of the burgomasters, who appeared packed into their seats in much fear of falling. The saddles were very safely peaked before and behind, while the swelling garments of the riders formed a cushion of defence on each side; insomuch that the question seemed rather to be how they should contrive to dismount, than whether there was any danger in their present position. When their predecessors in office appeared in one of the porticoes to receive the new potentates, the work of dismounting began, amidst the solemn officious help of a train of inferior personages; and this was the time chosen by Master Peter to cross the open space from which the crowd had been driven back, and make his way straight into the interior of the building. A hundred hands were held out to stop him, and a hundred voices cried out upon his insolence. But these impediments only roused his passion. He appeared in a tremendous fury for a few moments; but, instead of doing any act of violence, he looked around him as if for some who would execute vengeance for him. Meeting no friendly faces, he dismissed his wrath, and made some mysterious brief appeal to a man in authority, who, with no further hesitation, opened a way for the stranger into the court where the ceremony was about to take place; a privilege which none but the officials connected with the Bank had ever before been known to enjoy.