Montague owed his elevation to the continued success of his financial plans. A fresh loan, known as the Lottery Loan--because though the whole rate of interest was low, in exceptional cases chosen by lottery it was very high--was successfully negotiated, and more important than this, the Bank of England was triumphantly established. Banking with private goldsmiths had come into fashion within the last two reigns, when the convenience of cheques in the place of ready-money payments had become obvious, while the advantage to the banker who had the use of the ready money was also plain. The fault of the system was its insecurity, which had been proved by the not unfrequent bankruptcy of one or other of the banking goldsmiths. A Scotchman of the name of Paterson had some years previously suggested the plan of a national bank, by which the Government should obtain some of the advantages of the banker, and the public, while gaining the convenience of cheques, should have a better security than private goldsmiths offered. This scheme Montague now adopted. He borrowed rather upwards of a million, and formed the lenders into a banking company, allowing them to treat the loan to Government as part of their capital, the interest of which, secured upon taxes, gave them the requisite supply of ready money. They were bound to pursue no other business except banking, yet, even with this restriction, so desirable did the plan seem, that it was at once triumphantly carried through. As a contingent advantage to Government, it is to be observed that the company, which included many of the chiefs of the moneyed interest, were pledged, for their own preservation, to support the present settlement of the throne. Their existence depended upon the regular payment of the interest upon their loan, which it was scarcely possible that the Jacobites, if successful, would pay. The importance of this point became very obvious afterwards, when, in more than one crisis, the credit of Government was saved by advances from the Bank. One other important measure was carried by this Parliament, and that also was in accordance with the principles of the Whigs. This was the Triennial Act, limiting the duration of Parliament to three years. The King, always jealous of his prerogative, had already once refused his assent to this Bill; but now, having placed himself in Whig hands, he withdrew his opposition, and the Bill was passed. [Sidenote: Death of Queen Mary. Dec. 20.]