We have now to consider the treatment of London by the King during the latter part of his reign. One may ask with amazement how the City, which had deposed Richard the Second for acts not nearly so arbitrary as those of Charles the Second, which had driven Charles the First from the throne for attempts far less despotic, could sit down in submission, nay, almost without a protest, under tyrannies and encroachments which indicated the determination to recognise neither liberty nor privilege. The bankers of the Middle Ages were the great merchants, the merchant adventurers. Whittington held money for the landowners, advanced money on the security of land, and in nearly all respects carried on the business of a private bank. The merchant adventurers, who were mostly mercers, were succeeded by the goldsmiths, who were private bankers, kept the money of their customers—“running cash”—gave them cheques under the name of “goldsmiths’ notes,” received money on deposit account and gave interest for it; they made their own profits by lending it out at higher interest. The customers were allowed 6 per cent at twenty days’ sale and 3-1/2 per cent for money on demand. The bankers took assignments of the public revenue for payment of principal and interest as it came in. Of these bankers the most important was Edward Blackwell. He was the King’s intermediary in many important transactions. The pay of the troops in Dunkirk passed through his hands; he went to France on business for the King; he advanced money to the King, who owed him in 1672 more than a quarter of a million. There were nearly forty goldsmiths and bankers in Lombard Street. The money these bankers had lent to the Exchequer on security of the public revenue amounted to £1,300,000. In the year 1671 Charles wanted money. He was about to enter upon the war with Holland. Parliament was prorogued; he would always get money, if he could, without going to the House for it. In this case he listened to the advice of Clifford and took a step, the nature of which, one would hope, he did not comprehend. He resolved upon closing the Exchequer. The meaning of this step is perhaps not at once intelligible. It means that the repayments due to those who had lent money to the Exchequer were withheld, and it means that the interest due on these loans was refused payment. Imagine, if you can, the consternation and the despair which would be spread around if the interest on Bank of England Stock, or the London County Council Debt, or any other large security were to be suddenly stopped at the present day! Charles laid his hands on the whole amount. He took it. He promised to resume payment within a year, with interest. He took this money. And yet the City did not rise! Blackwell, with all the goldsmiths in Lombard Street, was ruined. Those rich bankers who had placed all their money in the King’s hands were utterly ruined; so were the lesser folk, the hundreds of people who had entrusted their money