dom, and received as ready caih by the trading part of the nation.
But in proceis of time, feveral counterfeit notes being iflued,
many of his debtors refilling either to reimburle the capital or
to difcharge the intereil, the goods and pawns upon which the
money was lent being too numerous to be difpofed of to advantage,
and the proceedings of the courts of law too dilatory, the
bank was drained of caih, and its credit in danger of finking into
difrepute.
In this dilemma Mr. Palmlhut applied to Charles XI. explained
the general Hate of his bank, proved that the fund was
by no means deficient, but that unlefs he could recover what
was due he Ihould be in danger o f becoming bankrupt. He
intreated, therefore, the king to take the bank under his royal
direition; and demonilrated, that by certain regulations the
money could be recovered, the accounts fettled, and the lolfes
entirely repaired.
The king approved the propofal, took the bank under his own
protection, and appointed Palmlhut director.
His majeily having eltabliihed the credit and fecurity o f the
bank, tranferred the direction to the itates of the kingdom af-
fembled in 1688, declared himfelf and his fuccellbrs protectors
o f the bank, but renounced all interference or influence in dif-
pofing of the money, under any pretext. The Hates being thus
declared guarantees, proprietors, and directors of the bank, federal
regulations were made, of which the following were the
principal:
That
B A N K OF S T O C K H O L M .
That the bank Ihould lend money upon good fecurity, at the
intereit of eight per cent, and Ihould pay for all money borrowed
only fix per cent.; that the debtors Ihould difcharge intereil
upon intereil, but that the bank ihould not pay intereit upon
intereit; that all the king’s revenues ihould be depofited in the
bank, but without receiving any intereil. The bank was empowered
to ifiue notes not exceeding the value of thirty-fix dollars
copper mint, or ion; and it was finally refolved, that the
ftates, or thoie whom they ihould depute, ihould have the power
of infpeCting the accounts, and of inquiring into the nature of
its conilitution. By theie regulations the credit and riches of
the bank increaied to that degree, that towards the clofe of the
fail century it became the univerial depoiitory of the whole
Kingdom, both as to public and private circulation, and lowered
the intereit from eight to feven per cent', and afterwards to fix,,
four, and three per cent. In return, the intereil for all money
borrowed, or depofited in the bank by way of loan, was likewife
leflened from fix to four and an half, three, and two per cent-
The large quantity of copper money then current in the
eountry being by reaion of its bulk and weight extremely, inconvenient,
rendered the circulation of bank notes advantageous to
trade and commerce..
The bank fupplied Charles the Twelfth with fuclr confidera-
ble fums from 1714 to 1717 that the revenues arifing from the
tolls and cuitoms were infuificient to pay the intereil, and there
was a confiderable deficiency..
g Thefe