the proprietors, on depofiting thofe pledges in the bank, receive
the full value, on the payment of three per cent, annual intereft.
Formerly jewels were received as pledges; but as the bank
was once coniiderably defrauded in that article, and on account of
their fluctuation in value, they are no longer admitted.
As iron is a principal article in the exports of Sweden, and as
the working of the mines is attended with confiderable expence,
and the fale of the iron uncertain, the bank receives that metal
as a proper fecurity for a loan. The iron being duly appraifed,
and lodged in the public warehoufe, the proprietor receives three-
fourths of its value at the intereft of three per cent.; and when
he can find an opportunity to difpofe of his iron, it is again delivered
to him, on producing a certificate from the bank that
the loan upon it is duly difcharged.
Mortgaged lands and houfes, being of a lefs certain value, pay
an intereft of four per cent, on the money borrowed; and for
the purpofe of liquidating the debt the following regulations were
adopted:
All borrowers upon mortgaged lands and houfes fhall pay fix
per cent, yearly ; of this fum four per cent, is the lawful intereft;
and the remaining two per cent, is annually deducted from the
capital; by which means the original debt is annually dimi-
niihing.
The Wexel or exchange bank exchanges and ilfues bank notes,
difcounts bills, receives and aifigns the money depofited for
intereft
intereft or fecurity, and difcharges the intereft o f two per cent. C HA p.
on all money placed in their hands. 1-----.----
Towards the latter end of the reign of Adolphus Frederic, the
bank notes were iflued in fuch large numbers, and many of them
at fo low a value as i s. 6d. that fcarcely any fpecie was left in the
kingdom; the bank was fo drained of cafli as not to be able
to exchange its notes but in copper money, and paper was almoft
the only currency.
For the purpofe therefore of preventing a total bankruptcy,
with which the nation was threatened, and calling in and paying
the paper currency, the ftates in 1766 voted a loan of 3,000,000
rix-dollars, or £ . 750,0000, to effeCt the realization of the bank
notes, and to circulate a fufficient quantity of fpecie.
As a farther fecurity againft the encroachments of the crown, a
former regulation was confirmed, that the bank ihould annually
advance to the king £ . 250,000 for the revenues of the current
year, and Ihould repay itfelf from the revenues of the fubfequent
year; but that no more money Ihould be lent to the crown under
any pretence whatlbever.
Many fchemes calculated to reftore the credit of the bank being
counteracted by party, the diet in 1772 configned to the
king the difficult province of realizing the bank notes, and reforming
the currency, which his majefty happily effected.
In 1777 and 1779 the ftates confirmed the realization effeCted
by the king, and made feveral new regulations in relation to the
bank,