The Diplomatic Correspondence of the American Revolution, Vol. 06

by Unknown

"Gentlemen, the commissioners of the bank; please to pay N. N. five thousand florins.

P. G.

Amsterdam, this ——."

By means of which, the book-keepers had not, and have not still, anything to do, but to debit P. G. with five thousand florins, and credit N. N. for the same sum; so that, if they had deposited each one ten thousand florins in cash, there would remain of it, to the credit of P. G. only five thousand florins, and N. N. would have fifteen thousand florins to his, whereof he might dispose, in his turn, the next day, in favor of one or more others having accounts open in the bank. This manner of making payments was found so convenient, and they took such a confidence in it, that all the bankers and merchants, even down to the petty traders, made haste to open an account, and to carry there money, more or less, relatively to approaching payments, which they had to make in bank; so that there was soon a sufficiency of specie deposited for a foundation of all the payments, which were from that time designed to be made in bank, viz. all the bills of exchange of above three hundred florins, drawn by foreigners upon Amsterdam, and in Amsterdam upon foreigners, all the merchandises of the East Indies, the wools of Spain, and some other articles.

It happened then, that they ceased to carry thither the monies of Holland, because the merchants, having occasion alternately, some of the money in bank for current money, and others, of current money for money in bank, they found a great facility in selling one for the other. From thence arose a commerce of agiotage, (pour l'agio) which had been already prepared, because it had been resolved, for good reasons without doubt, as in case of a flood of specie, &c. that the bank would not receive the monies, which they would deposit, but at five per cent below the current value; so that to have one thousand florins in bank to one's credit, it was necessary to deposit one thousand and fifty florins in current cash. Behold thus this agio establishment, and the money of the bank, worth five per cent more than the current money. This value of five per cent soon varied, because some one, who found that he had too much money in bank, and was in want of current, sought to sell the first for the second, found a purchaser, who would not give him more than four seveneighths per cent; that is to say, one thousand and fortyeight florins and fifteen stivers, for one thousand in bank. Thus of the rest in such sort, that at all times, when one would buy or sell the money in bank, there is no question but to agree upon the price of the agio, which is subject to a perpetual variation, and which is more or less high, according to the wants of epochs; as for example, when the company makes its sales, the merchants have greater want of money in bank to pay their purchases, which raises the agio, which falls again, when the company would sell that, which is come into them for current money, in which all payments are made for fitting out of vessels.

The payments of bills of exchange, being to be made, as it has been said, in bank money, the price of all exchanges of current money, which were heretofore fixed in bank money, for example, a crown tournois, of sixty sols, the intrinsic value of which, founded upon the price of the money mark, amounted to fiftyseven sols and threefourths, current money of Holland, was placed at fiftyfive sols of bank money; and thus of all the exchanges with all foreign countries; from whence it results, that having sold merchandises of a man of Bordeaux, the amount of which produces net one thousand and fifty florins current, or the credit of one thousand bank, the agio at one hundred and five, when they make him a remittance, or when he draws, they purchase so many crowns as are necessary for the one thousand florins bank, at fiftyfive sols fifteen derniers, which comes to the same thing as if they bought crowns for one thousand and fifty florins current, at fiftyseven and threefourths sols current. When any one would open himself an account in the bank, he goes there himself, and puts his signature upon a book to make it known, and they give him the page upon which his account shall be opened, which he ought always to place at the head of the billet, by which he pays.

They begin with debiting him with ten florins, once for all, after which he pays no more to the bank, but two sols for each bill that he writes, with which they debit him twice a year, when they make the balance of the books, viz. in January and July, at which epochs, each one is obliged to settle accounts with the bank, and to go and demand his pay, to see if they accord with the bank, under the penalty, after six weeks, if they fail or neglect, of paying a fine of twentyfive florins. The bank is shut at these epochs, and continues shut during fourteen or fifteen days, during which time, the bills of exchange sleep, and although they fall due the first day of the shutting, or any day following, they cannot be protested until the second or third day after the opening. There are other little shuttings of the bank, at the feasts, Christmas, Lent, Pentacost; and at the fair, which continue but a few days. One cannot dispose, till the next day, of the money, which enters by the bank, except the second days of the openings, and that of Pentacost. They call these days, the "returns of bills" (revirement de parties) or the "recounting," because they pay with that which they receive. One ought to take care, not to dispose beyond one's credit, for not only all the drafts whereof one has disposed are that day stopped, that is to say they are invalid, but one is condemned and obliged to pay a fine of triple of the whole, which one has disposed of more than that which one has in bank.

The person who writes, ought himself to carry his draft to the bank, or at least his attorney, between eight and eleven o'clock in the morning; those who come after until three o'clock, pay six sols fine for each draft. The merchants ordinarily pass a procuration, which it is necessary to renew once a year, to one of their clerks to carry their drafts and demand their payments, which no other person can do.

They transfer every day in the week, except Sunday, and during the shuttings, which are announced some weeks beforehand.

For arranging the merchants, and also for maintaining and favoring the price of matters, and specie of gold and silver, both foreign and that of the country, which are in strictness only of mere commerce, as our ducats and rix dollars, the bank receives them at a value determined and relative to the weight and the title known by the pay-master of the bank, but the sum which they there receive ought not to be below two thousand five hundred florins. The bank gives receipts for the specie, &c. which they deposit there for six months, which are to the bearer; so that, within the time, if the specie or matters exceed, the proprietor may sell his receipt to another, who pays him the surplus of what they are worth of the price at which the bank has received them, and this receipt may thus pass through several hands, as often happens by the idea which they form of the excess or of the deficiency. He who is the bearer of this receipt, may go and take away these matters or specie when he will, in paying at the bank, the value which it has advanced to him who has deposited them, and, moreover, half of a florin for the keeping of them the six months, both upon gold and upon bars of silver, and quarter of a florin upon Mexican dollars, rix dollars, and some other species of money. When this term is expired, one may cause to be renewed the receipts, in paying at the bank the half or quarter florin due thus from six months to six months; but if one let pass that time without taking away his deposit, or without renewing it, it is devolved to the bank, which keeps it to its profit.