It may seem surprising that I should take so much pains to vindicate the two principal conductors of that scheme. My intention is not so much to do justice to their reputation, which has been grossly calumniated by many, who have written the history of those times, as to prove, that an ill concerted system of credit may bring ruin on a nation, although fraud be out of the question: and if a nation be plunged into all the calamities which a public bankruptcy can occasion, it is but a small consolation to be assured of the good intentions of those who were the cause of it. ------------------------------------------------------------------------ CHAP. XXXI. _Continuation of the Account of the royal Bank of France, until the total Bankruptcy on the 21st of May 1720._ I now resume the thread of my story. We left off at that period when the credit of the company and of the bank was in all its glory, (November 1719) the actions selling at 10,000 livres; dividend 200 livres a year _per_ action; and the bank lending at 2 _per cent._: all this was quite consistent with the then rate of money. In this state did matters continue until the 22d of February 1720, when the bank was incorporated with the company of the Indies. The King still continued guarantee of all the bank notes, none were to be coined but by his authority: and the controller-general for the time being, was to have, at all times, with the _Prevot des marchands_ of Paris, ready access to inspect the books of the bank. As the intention, at the time of the incorporation, was to coin a very great quantity of notes, in order to buy up the actions; and to borrow back the money, in order to pay off the creditors; it was proper to gather together as much coin as possible, to guard against a run upon the bank: for which purpose the famous _Arret de Conseil_, of the 27th of February 1720, was published, forbidding any person to keep by them more than 500 livres in coin. This was plainly annulling the obligation in the bank paper, _to pay to the bearer on demand the sum specified, in silver coin_. Was it not very natural, that such an _arret_ should have, at once, put an end to the credit of the bank. No such thing however happened. The credit remained solid after this as before; and no body minded gold or silver any more than if the denomination in their paper had had no relation to those metals. Accordingly, many, who had coin and confidence, brought it in, and were glad to get paper for it. The coin being collected in about a week’s time, another _Arret de Conseil_, of the 5th of March, was issued, raising the denomination from 60 livres to 80 livres the marc. Thus, I suppose, the coin which the week before had been taken in at 60 livres, was paid away at 80: and the bank gained 33⅓ _per cent._ upon this operation. Did this hurt the credit of the bank paper? Not in the least.