a manufcript book belonging to the bank, and fubmitted to our infpection, in which are entered abstracts of public accounts paffed by their cafhiers, Thomas Maddox, cafhier at that time, appears to have been allowed the fum of 600l. for receiv, ing those two contributions; which is the first entry of an allowance of the kind in this manufcript. Since the year 1719, to the pre. fent time, where the annuities have been created, either from the fums fubfcribed, or from a lottery convertible into annuities, this allow ance has been at the rate of 8051. 15. 10d. per million, the rate craved in the memorial before us, except in the year 1742. By the act of that year, the 15th of George II. chap. 19. for raising 800,000l. by annuities, the commithioners of the treafury are empowered to allow the cashier, out of the contribution money, 500l. for his pains and trouble in receiving and accounting for the fame; and by a warrant, dated the 22d of June 1743, tranfmitted to us from the treafury, that fum was allowed him. But where the receipt of the contributions has been attended with any additional or unufual trouble or expence, the bank have been allowed at a higher rate in the year 1747 they were allowed 100l. per million. The bank appear to have received contributions to lotteries earlier than the year 1714, which was their first year of receiving contributions to annuities: in 1710 and 1711, they received the contributions to two lotteries of 1,500,000l. each; and, in the following year, to two lotteries of 1,800,0 ol. each: these are the first entered in the manufcript book above mentioned; and it is there ftated, that they were allowed, as to the two first, for their pains and fervice in receiving, paying, and accounting for the monies received, and for all their charges and expences in performing this fervice (the charges of paffing the accounts excepted) 23801. 12s. 9d.; for the two latter they were allowed 12501. each. The receipt of thefe contributions is attended with different degrees of trouble and expence. The number of tickets and fub. fcribers varies in different lotteries: in the moft fimple, the whole bufinefs is the receipt of the money, the payment of it into the exchequer, and the payment of the certificates of the fortunate tickets; in others it is attended either with the creation or redemption of annuities: hence the allowance to the bank for this fervice has varied, according to thefe circumftances, from Icool. the fum craved in the memorial before us, to 2000l. the fum allowed them in the years 1772, 1774, and 1775. The remaining allowance, which is that for the charges of management, commenced with the grant of annuities in the year 1714: the two acts of that year, above alluded to, empower the commiffioners of the treasury to allow, "out of the fum granted for the payment of the annuities to the cafhier, two falaries or allowances; the one not exceeding 250l. the other 100l. a year, for receiving the money to pay the annuities, nd applying the fame to that ufe, and for his pains and charges for rendering his accounts thereof; and to the accountant-general two falaries, the one not exceeding 200l. the other 100l. for his fervice and charge in performing the d ty and trust incumbent upon him by the e acts." As all warrants for thefe allow. ances proceed from the treasury, we required from them a copy of the first warrant granted for an allowance to the bank for charges of management: the copy tranfmitted to us is that of a dormant warrant, dated the 2d of July 1718, direct. ed to the principal cafhier of the bank of England; and authorizing him to retain, out of the monies imprefted to him for the purpofes of the acts, the allowances therein mentioned, amounting to 65cl a year, to commence from Michaelmas 1715 and it appears, from the entries in the bank manufcript above mentioned, that this allow ance continued during the existence of the annuities; all of which appear to have been either redeemed or fubfcribed into the capital stock of the South Sea company. The 1,000,000 annuities of the year 1726 were created by the 12th of George I. chap. 2.: for the management of them the bank are now and have been ever fince they were granted, allowed 360l. a year. The act itself is filent as to this allowance; but it appears by a treafury warrant, dated the 20th of December 1726, a copy of which we procured from the auditors of the impret, that, upon a memorial from the bank, praying fuch an allowance for their charges of management of thefe annuities as the treafury fhould think reasonable, the then lords of the treafury granted and allowed them, for this purpofe, 360l. a year, to commence from the Michaelmas preceding; and directed the cashier to retain this fum in his hands, for the ufe of the governor and company of the bank, out of the monies of the fund, for the faid annuities to be imprefted to him, and authorifed the auditors of the impreft to allow it. The next annuities were, 800,oool. granted in the year 1731 of thefe, 769,2351. 98. 3d. are now a part of the confolidated 3 per cent. annuities, the remainder being redeemed: for the management of thefe the bank is now, and always have been allowed at the rate of 360l. a year; but upon what ground this rate was established, does not appear. The 800,000l. annuities of the year 1742, were the next creation: by the act of that year, above alluded to, the treafury are empow ered to allow the caflier, out of the finking fund, a fum not exceeding 250l. and the accountant a fum not exceeding 20cl. a year, for the like fervices as are expreffed in the act of the year 1714; this is after the rate of 5521. 10s. per million; and that rate has been adhered to ever fince. From hence we collect the charges of management allowed at this time to the bank: for the million 3 per cent. annuities of the year 1726, 360l. a year: for the remainder of the Soc,oool. of the 1731, at the rate of 360l.: for all the other annuities, either at 3 per cent. or 4 per cent. or for years, at the rate of 5621. 10s. a million, eftimating the latter at 25 years purchase; and at this rate is the allowance prayed by the bank in the memorial before us. There are two more annual allowances iffued to the bank from the exchequer, which relate to their own capital ftock, and are the only allowances upon that stock: thefe are two fums, of 4cool. and 18981. 35. 5d. The first incorporation of the bank was in the year 1694. The act of the 5th of William and Mary, chap. 20. forms the fubfcribers to a loan of 1,200,000l. to go. vernment, into a body corporate, and appropriates 100,cool. a year for for their use; that is, 8 per cent. upon the capital, leaving a refidue of 400 1. At a general court of the bank of England, held the 26th of April 1695, a committee report it as their opinion, that 4000l. fhould be prefented to the governor, deputy, and directors, for the year 1095, as a recompence for their great pains and conftant attendance on the affairs of the bank and by the 13th bye-law of the company, the payment of this fum is established, and continued to them as an annual recompence. The other allowance, that of 1881. 3s 5d. a year, is in confequence of the bank having become purchafers, from the South Sea company of 4,000,000l. of their capital: the ground of this allowance will appear in our examination into the manner in which the cafhier of the South Sea company paffes his account in the office of the auditors of the imprett. Obferving this officer, likewife, among the public accountants, upon the certifica e of accounts depending in that office, we required from them the last declared account of the cafhier of the South Sea company, of annuities payable and transferable at the South Sea houfe, with the materials from which that account was made out. The account returned to us was that of Peter Burrell, efq. chief cafhier of the South Sea company, of the money impretted to him for paying the annuities granted in the year 1751, made payable at the South Sea houfe, for three years ending the 5th of January 1781: this account was declared the 22d of December 1781. From the account itfelf, together with the examinations of Charles Harris, and Peter Burrell, efqrs. we are furnished with knowledge of the ar ticles it contains, and the minner in which it is audited and formed in the office of the auditors of the impreft. The charge in this account confifts of the ba ance remaining, on the preceding account, and the fums imprefted from the exchequer: the laft of these is a fum to pay the fees on the preceding account; the others are compounded of the half year's annuity, and the charges of management for each half year. The discharge contains each half yearly payment by the cafhier to the South Sea company, for the charges of management, fimply by itfelt, and the amount of the three years it contains the half-yearly payments for the annuities, caft up to a total; the fees paid at the trea fury and exchequer offices for this account; and the caflier's allowance for the period of the preceding account, with the balance remaining in the cafh of the South Sea company. Every year the cafhier fends to the auditor the two half year's dividend books, each containing the names of all the proprietors, with their respective shares in the capital, and the annuity attending each fhare, and the number of each warrant. Each dividend book is accompanied with a paid lift, containing entries of all the warrants paid upon that dividend, and for the arrears of former dividends during that half year, and with the warrants themfelves ranged in a numerical order. The auditor compares the warrants with the corre fpondent entries in the dividend book, and marks them off; he then examines the paid lift with the dividend book, and with the warrants for the arrears, and gives the cafhier credit for the amount of the paid lift. After the expiration of the three years, ।. years, the cashier tranfmits to the auditor his account current, containing a complete itate of the three years receipts and payments. To verify the charge, which confifts of iffues from the exchequer, he produces the imprett certificates. In the discharge the first article is, the charges of management paid to the South Sea company: the auditor allows it, upon the authority of a dormant warrant from the treafury, dated the 29th of November 1752; which directs the cafhier to retain, from time to time, out of the money to be imprefted to him, a fum therein mentioned, for the ufe of the South Sea company, and authorifes the auditor to allow it. The treasury direct this allowance pursuant to the powers vetted in them by the act of the 24th of George II. chap. 2. which created thefe annuities, to discharge the incident expences attending the execution of this act; and to appoint fuch allowance as they fhall think juft and reasonable, for receiving, paying, and accounting for the annuities. This allowance to the South Sea company is 1891. 15s. 6d. a year; which, upon 1,919,601. the fum now remaining of the 2,100,000l. the original capital of the annuities of the year 1751, is at the rate allowed to the bank, of 5621. 10s. per million. The total fum allowed for management of this account is 32391. 6s. 6d. : the total fum paid for dividends, is the amount of the paid lifts, which have been examined with the warrants by the auditor. This total is the fame both in the official and account current; but the articles of which it is made up, are differently compounded; the auditor's articles are the total fums paid, during the period of the account, upon each feparate dividend; the cafhier's, are the fums paid by him during each half year, and therefore include the arrears of former dividends, as well as the payments on the dividends of each half year. The total fum in this account, paid for dividends is 171,7861. gs. 11d. The remaining article in the difcharge is the fum paid for fees and charges at the feveral offices: to obtain this allowance, the cashier prefents a memorial to the treafury, with a schedule of these fees and charges annexed, praying a warrant to the auditors of the imprett, authorifing them to allow him fuch payments: this memorial is referred to the auditors, for their confideration and report. The auditors in their report, range the articles under two claffes; the one confifting of articles that relate to the lat declared account, the other articles that relate to the account depending; which, they fay, are in proportion to what have been ufually allowed in preceding accounts of this fervice. Upon this report, the treasury direct the auditors to give allowance to them; and the fum thus allowed him in the account depending is iffued afterwards to the cashier, from the exchequer, upon account, and therefore inferted as an article in the charge in his next fucceeding account. The total fum under this head, in the account before us, is 9841. 9s. 4d.; and the balance remaining in the hands of the South Sea company is 11,6181. 15s. 78. The account current is figned by the cafhier, and fworn to by him before a baron of the exchequer. Thefe of the year 1751 are the ca ly annuities transferable at the South Sea houfe, of which an account is rendered at the exchequer. The other flocks, namely, the South Sea stock, and the old and new annuitics, are attended with annuities not fubject to account. The act that granted these of the year 1751, exprefly directs the monies for the payment of them to be iffued by way of impret, and upon account: the acts that created the others do not give the like direction; but for the charges of their management the public pay an an nual fum to the company. Thefe, now three diuinct funds, originally constituted one capital only, under the appellation of the South Sea ftock. The company was erected by the act of the 9th of queen Anne, chap. 21. in the year 1710: it confifted of the proprietors of public debts, to the amount of 9,177,9671. 15s. 4d. which fum formed the firft capital ock of the South Sea company. This art directs, that the fum thereby appropriated to answer the annuity to the South Sea company, should be iffued and paid out of the receipt of the exchequer, without fee or charge; and for the charges of management of that capital it directs Soool. a year to be paid to the cashier, for the ufe of the company, out of the funds therein men tioned: additions were made from time to time to this capital by various acts of parliament, and fome of them gave an increafe to the allow. ance for the charges of manage ment. In the year 1720 the bank, purfuant to the powers given in the act of the 7th of George I. chap. 5. purchased of the South Sea company 4,000,000 of their capital, which was ingrafted into the bank stock; and with it they took, for their own benefit 18981. 35. 5d. a year (the fum before mentioned) as part of, and being the proportionable share of, the fum then allowed by the legislature to the South Sea company, for the charges of management of their whole ca pital; and this fum has been fince iffued every year to the bank, as a compenfation for that fervice. In the year 1722, by the act of the 9th of George I. chap. 6. the whole capital flock of the South Sea company was divided into two equal parts; and one moiety, amounting to 16,901,2411. 175. old. was feparated from the capital and converted into one joint stock, and named the joint stock of South Sea annuities, with an annuity attending it of 51. per cent. payable out of the funds of the company, in lieu of all other profits and advantages accruing from or belonging to the capital flock. This annuity was continued to be iffued from the exchequer to the company, but in truft for the proprietors of the new created stock. In the year 1732, by the act of the 6th of George II. chap. 28. three fourth parts of the remaining capital of this company, amounting to 10,988,3271. 11s. old. was in like manner, feparated from it, and converted into a new stock, called the new joint stock of South Sea annuities, with an annuity of 41. per cent. attending it, payable out of the fame funds, and to be iffued from the exchequer to the company, in truft for the proprie tors of this new stock; but these feparations from the capital stock oc. cafioned no alteration in the charges of management; the payment of the fame fum was continued to the company, and remains at this day, except as far as it has been diminifhed, in proportion to the dininution of the feveral capitals by redemption. The prefent allowance is 14,0221. 38. zd. a year upon the old aggregate capital of 24,065,0841. 138. 114d. comprehending the total of the three capitals above mentioned: this al lowance |