treafures what coin may be neceffary for the ready discharge of fuch notes as may be prefented for payment at the bank.

It will, no doubt, be neceffary that the managers of the banking trade fhould quarterly lay before the proprietors an exact state of the notes in circulation, and of the fecurities received by the bank, at the time of their being iffued. And for the greater fecurity against the malversation of those who are in the direction of the bank, and who must be chofen into the direction by the body of proprietors, let it be declared, that the fum of in the banking ftock fhall be neceffary to intitle any one to be a Director: and farther, that the whole property (in India) of fuch Directors fhall be pledged, while they hold their office, as an additional fecurity for their good administration.

It is impoffible to fay what operations may be carried on by this bank, and how far it may in time extend its credit. It may for this purpose open offices in all the principal cities of Bengal; which will be admi

rably well calculated for calling in and recoining all the old and unequal coin. The Shroffs will naturally become proprietors, and will lend their affiftance in this particular, which will be a douceur for them. They will be employed in a trade fomething like what they now carry on; but it will be fo fenced in by proper regulations, that it will have every advantage and none of the inconveniences of the present practice.

If it be thought expedient to establish granaries, or banks for the circulation of grain, this Company will be at hand for carrying on the operation.

In fhort, it is impoffible to foretell the many advantages which may follow the establishment of credit, fecured upon a folid fund of property, in the hands, and under the protection, of the Company, who are to have no fhare of the profit, and the greatest interest in preventing the iffuing of paper upon precarious fecurity.

It would not, I think, be proper to ad

mit any perfon of the Council to be either a Governor or a Director of this bank; but I think it would be expedient to secure the property of the fund for the payment of the bank paper, exclufive of all other engagements the banking company may contract.

If we confider the rate of money in Bengal, there will be, perhaps, 8 per cent. upon the bank stock, and 8 per cent. more upon discounting loans, &c. both together will produce fo great an emolument as to engage people of wealth and property in the banking scheme: befides, the very notion of standing upon a folid and independent footing, will be extremely flattering to many of the natives. And as the establishment is planned upon the fame principles as the Bank of England, it is natural to fuppofe that it may produce fimilar effects in fupporting the credit of the Company on one hand, and in being supported by the Company on the other.

As I have been inveftigating every method to improve and augment the riches

and circulation of Bengal, I cannot omit some circumstances relating to what I may call their foreign trade.

enlarging upon

I have endeavoured to find out a method for condu&ing those resources which proceed from herself (namely, the money fhe at present poffeffes) into a channel which may fet new engines to work in order to augment circulation and encourage her manufactures, instead of serving as a bare equivalent for those at prefent produced: this, I hope, will be accomplished by the establishment of a bank, which is a more profitable employment for the Bengal money than lending it to our rivals in trade.

The confequence of this will be, that more European filver will flow in upon her, from fources which we ourselves at prefent are shutting up.

As foon, therefore, as the Company's investments are made, and that the annual revenues from certain districts are paid, or credit given for them, let all the Bazars be thrown open to every foreign merchant;

let these be confidered as the fellers of filver, not as the purchasers of goods; let not the Company grafp at the highest profit poffible upon their trade, but let them be fatisfied with the highest profits compatible with the profperity of the country which enriches them.

Were this regulation established, every ftranger who fhould pretend to trade in a district which is in arrear of rent to the Company will be considered as a smuggler, and the prospect of obtaining a free trade by the payment of their rents, will be a powerful motive for the inhabitants of every district to make the promptitude of their payments a common caufe.

This will engage them to apply to the bank, and in order to obtain relief from this quarter, they must establish their credit.

In this view the bank will be a check upon every one who may have it in his power to opprefs the labourer or the manufacturer; because the profits of the bank