England upon sure foundations of credit and honour.
The days of adversity and stress were at an end, and
Bank stock rose in value, till in the year 1700 it stood as
high as 1481.1

3

1700

The early history of the Bank was, as we have seen, one of apparent reckless adventure. Unlike the prudent and sound management which afterwards prevailed, this policy was inspired by necessity; but having attained. the object for which they had staked all, the directors settled down to the work which finally placed the Bank at the head of the financial council of Europe.2 The great powers vested in the Bank direction by their charter continued undiminished till 1844, though it had 1844 long been felt that a curtailment of these privileges had become imperative. Efforts were made at different times with this object, but the Bank continued with unabated power virtually to control the financial world." It remained for perhaps the greatest financier of modern times, Lord Overstone (then Mr. Jones-Loyd), by oftenrepeated pamphlets, speeches, and evidence given before the House of Commons, both to instigate and inspire the great bill of Sir Robert Peel called the Bank Charter Act (1844). Thus, while the position of the Bank of England is still one of high authority and weight, it no longer holds in its grasp the control of the world's finance, for it is itself controlled automatically (with regard to its Issue Department) by the store of bullion in the Reserve.5

1 Rogers, First Nine Years of the Bank of England, Table, p. xxv. 2 Ibid., p. 164.

3 Ibid., p. 165.

4 'Safe as the Bank' has long been an English proverb!

5 For the arguments which resulted in the passing of the Bank Acts, see Preface to Lord Overstone's Evidence before the Select Committee of the House of Commons on the Bank Acts, 1857. Longmans, 1858.

CHAPTER XVII

THE BLACK FLAG

'There was the Jolly Roger-the black flag of piracy--flying from her peak!'-STEVENSON: Treasure Island.

ALL the Houblons were concerned in commerce with the Peninsula. But while Sir John's name as its chairman was chiefly connected with the company of Portugal merchants (of whom seven bore the name of Houblon), Sir James, his brother, stood in the same position with regard to the other company which traded with Spain. Most of the brothers, and many of the other merchants who belonged to the one company, belonged also to the other.

But while for years the Merchant Adventurers had patiently suffered loss from the dangers of the seas, but little aided by government-which too often ignored their claims, or were not in a position to afford them protection, the position of the great commercial class had greatly changed when, in the last decade of the seventeenth century, it was possible for the merchants trading to the Peninsula to approach the Board of Trade with a memorial demanding convoys for the protection of the fleets they yearly dispatched to the coasts of Portugal.' For the increased power and importance of the merchant princes of London since the Revolution was not confined to municipal affairs, nor yet to financial questions. They had now imposed upon the State the necessity of

1 See Little Directory, 1677. Introduction to reprint, 1863.

admitting representatives into their councils with regard
to much of the legislation of the country, and especially
in all that appertained to commercial and colonial affairs,
as also of the royal navy. And this not only during the
rule of the Whig Junto, but even when the Tories held
the reins of power. Side by side, therefore, with the
names of officers of State representing the great landed
interest, appear those of the City men whom the boroughs
returned to Parliament, or the City of London nominated
to support and advance their views. Thus on the new
Board of Trade and Plantations they were powerfully
represented, as well as on the new Commission of the
Admiralty that, in consequence of the well-founded
complaints of the merchants, had replaced the one which,
under the Tories Killigrew and Delaval, had suffered
such loss of prestige through the destruction of the
Smyrna fleet.1
As we have seen, Sir John Houblon
was elected a City representative on both boards on
their reconstruction.

That the views and interests of the merchants engaged the close attention of the Board of Trade, is shown by their exhaustive minutes on all sorts of questions affecting them, though it would appear that complaints were frequent as to the said boards not having access to the Cabinet.

The memorial to which we have alluded is interesting as illustrative of the character of English trade, as also of the great dangers attending it from pirates and privateers. A thousand men were employed on the fleet of fifty-six merchantmen, which were ready in the autumn of 1692 to set sail for Portugal. And for their protec- 1692 tion three men-of-war were deemed sufficient convoy by their owners, in spite of the crowd of 'Sallee pirates' and French privateers which they expected to find hovering about their skirts, ready to 'snap up' any vessel Campbell's Lives of the Admirals (apud Mahan), p. 192.

1

1692

lagging behind the rest. We give the text of the
petition for the granting of the convoy, signed by Sir
John Houblon, the chairman of the company.

To the Right Honble the Lords of the Committee
of Trade.

your

'The Portugal Merchants do humbly lay before Lordships what they conceive may be most necessary for the carrying on and securing the Portugal Trade for the approaching season.

'That the Trade of O'Porto and the neighbouring ports of Viana Aveiro and Figuera, will require thirty to fourty sail of small ships, the manning whereof will take up 500 to 600 men.

'That the trade of Lisbon will require 15 to 16 sail at 20 to 25 men, one ship wth the other, wch will be 320 to

400 men.

'That there may be appointed three Fourth Rates1 for their convoy, to be ready to sail with the said ships from the Downes, on or before the 15th September next. Two wherof may see the ships into Lisbon, and the other to see the Port ships safe over the Bar of O'Porto, and into the other smaller Ports. That during the said ships unloading and reloading in their several Ports, the said three Men of War may be ordered to cruise to and again on the coast of Portugal between the North and South capes; and that in the moneth of January following, two of the said Men of War may call off of the Bar of O'Porto, and the other Frigate to go to Lisbon in order to convoy the said ships back to England, some of them to the Ports of the West, and the rest to London. And the reason why two Men of War is desired outwards for Lisbon, and but one to come back, and but one is desired to O'Porto and two to come back from thence is, Because the estate in woollen goods carried

1 Men-of-war.