effed of making fudden and violent changes, even where abufes
are meant to be reformed, and a certain benefit procured for
thofe who have long been fuffering under them. . Gradual alterations
are ufually the moft acceptable, and, in the end, moll ef-
fedual.
12. Intereft of the capital lent out through the loan or Lombard
bank arifes from a fum of paper money iffued by the Dutch
Government as a loan to individuals, on mortgage of their
lands and houfes, with the additional fecurity of two fufficient
bondfmen. The fum thus lent out is about 660,000 rix dollars.
The intereft is 5 per cent., which is one per cent, lefs than the
legal intereft of the colony. Government receives a clear profit
of 4 per cent., and the bank one per cent, for its trouble. The
rule is never to lend a greater fum than half the value upon
eftates in town, nor more than two-thirds on eftates in the
country. The term for which the loan was made was not to
exceed two years, and it refted.with the direâors to prolong the
loan, or to call it in, at the expiration of that time.
The eftablifhment of this bank, by the Dutch Eaft India Company,
was one of the many fymptoms, that of late years had
appeared, of the declining condition of their commercial credit,
and of their political influence in their Indian poffeffions. Driven
to thenecellity of railing revenues, by dired or indiredmeans,
to defray the contingent expences of the year and to keep together
their numerous eftablithments, and of maintaining their
exiftence by temporary expedients,, their finances were reduced
at length to fuch a ftate, that their capital was employed to pay
3 the
the intereft of their debt. In order,:, therefore, to reform fome
abufes, and for the better regulation o f their affairs in India,
certain commiffioners'were appointed in 1792, under the name
of Gommiffaries General, to proceed from Holland, without delay1,^’
Upon this important office;. '.
Finding;: on their arrival at the Cape, that tfce. refources of '
Government wire mearly exhaufted, the colony in moft deplorable
circumftances, and a-'geiieral .'complaint among the inhabitants
of-' the want of <sr’eirculating ¡medium, they conceived
it-too favourable an occafion :to let flip of converting the public
.diftrifs into a temporary tprofit . for .the-ftatej; increafing, at the
’fambftiine, the 'revenue the latter,¡.while they conferred a
feeiriing favour on the formef.vc They iffued, throiighLthe Lorn?
bafd ffarik, a loan of fuch fums iof ftamped; paper money as
nirght be-f equired; to ifatisfy the wants of .thofe who. could giye
the neceffary fecurities j the whole amount being limited to the
fum of one million rix dollars. , _ 9
Thus, by this tranfadion, Government created for. itfejf a net
revenue of about 25,000 rix dollars a.-year,, free of all deductions,
without rifk land, without, . trouble, from a ffditious capital.
It did more than this;, L P^rt of the original capital, which
at higheft point was about;680,000 rix dollars, was repaid
by the inhabitants, and reftored to Government; but," inftead
of cancelling fuch fums, as it fhould feem in honour bound to
doj it applied them, towards the payment of thepublic expences
fuffering the whole of the , original capitab to continue in cir-
.culation* . . . . . .
v o l . 11. The