[Illustration: THE FIRST ROYAL EXCHANGE—EXTERIOR AND INTERIOR] The wars with the Dutch and the extraordinary developments of French industries caused our imports to vastly exceed our exports; every maid-servant, it was said, paid the French King half her wages; when peace came and trade was recovering, the madness of Charles II. in closing the Exchequer paralysed and ruined the City for a while. Never did monarch inflict a blow so cruel upon his people. And never did the Stuarts recover the confidence which this measure lost them. The Plague of 1665, followed by the Fire, proved, as might be expected, a temporary check to the prosperity of the City. But the people kept up their courage. After the Fire there was built, in place of Gresham’s Exchange, which had been burned, a new Royal Exchange of which the first stone was laid by King Charles II. The increase of trade, although petty trade, in the West was recognised in the foundation of the New Exchange, an institution which has been mostly overlooked by historians. “This building was erected by Robert, Earl of Salisbury, somewhat after the shape of the Royal Exchange, having cellars underneath and paved walks above with rows of shops. The first stone was laid on the 10th of June 1608. It was opened by King James I., April 10th, 1609, who came attended by the Queen, the Duke of York, the Lady Elizabeth, and many great lords and ladies, but it was not successful” (_Stow_). “In the Strand on the N. side of Durham House stood an olde long stable, the outer wall whereof on the street side was very olde and ruinate, all which was taken down and a stately building sodainely erected in the place by Robert, E. of Salisbury, Lord High Treasurer of England. The first stone of this beautiful building was laid the 10th of June last past, and was fully finished in November following. And on Tuesday, the 10th April, the year (1609), many of the upper shoppes were richly furnished with wares, and the next day after that, the King, Queen and Prince, the Lady Elizabeth and the D. of York, with many great Lordes and chief ladies, came thither, and were there entertained with pleasant speeches, gifts, and ingenious devices: there the King gave it a name and called it Britain’s Burse” (Nich., _Progresses_, vol. ii. p. 248). The exports and the imports of London during fifty years of this century are thus tabulated. It will be seen that they show a steady increase in the bulk of trade:— Exports. Imports. 1614 2,090,640 2,141,283 1622 2,320,436 2,619,315 1663 2,022,812 4,016,019 1669 2,063,274 4,196,139