Part 85

The Bank simply took over from the goldsmiths its main everyday business of deposit; running cash note [cashier's note, specie note, cash note], which was payable on demand and normally did not bear interest; and drawn note [precursor to the check, but not on special paper]. The Bank gradually convinced many of its clients to use its "check" [cheque] paper when drawing. The check paper was unique to the Bank and embellished with distinctive scroll work to serve as an obstacle to fraud. Over time the running cash note tended to be for round sums of at least twenty pounds and multiples of five pounds. The Bank of England had a monopoly on issuing notes in the London area. Country banks arose and issued bearer notes payable on demand and interest-bearing notes in their areas. The Bank of England gave to its depositors the service of paying annually to a designee without further order.

A decision of the common law courts held that bills of exchange (written orders to pay a given a sum on a given date) were transferable to other people by successive endorsements. So long distance payments no longer had to be made in coin, with all the dangers of highway robbery.

The financial revolution of the 1690s meant that the merchant elite could invest in government bonds or company bonds at 5-6%, or London leases at 10%, as opposed to income from landed estates, which was under 3%. Shareholders were no longer personally liable for company losses. Interest on loans was no longer considered sinful as long as it was not oppressive. The greater ability to borrow spurred the growth of capitalism.

All brokers and stock jobbers in London and Westminster of bank stock, bank bills, shares and interests in joint stock must be licensed by the mayor, which shall necessitate their taking an oath to exercise their office without fraud or collusion to the best of his skill and knowledge as of 1697. This is to avoid the collusion of fixing values to their own advantage.

The science of statistics made life insurance possible. But it was administered by ad hoc offices rather than companies and was not reliable in making payments.

Charles instituted a hearth tax of 2s. per year in 1662, with constables and offiers authorized to verify the number of hearths and stoves in houses. It was repealed in 1688 because it could not be enforced except by exposing every man's house to be entered and searched at pleasure by persons unknown to the people, which was oppressive and a badge of slavery.

By bribes, Charles built up a body of support in Parliament which could be relied upon for a majority. They came to be called "tories" by their opponents. "Tory" had been a term of abuse for Irish Catholic bandits. The tory and whig groups were known by their disagreement over the authoritarianism of the Crown. The tories were sympathetic to the doctrine of divine right and favored a doctrinally high church. The tories represented landed property and the established church, and usually wore blue in contrast to the purple of royalty. Many royalists became tories. The whigs refused to accept the sacrosanct character of the monarchy. The whigs opined that government depended upon consent of the people and that the people had a right of resistance. They subordinated the Crown to Parliament. The whigs represented the dissenters and the mercantile classes, and often wore red. Many former Puritans became whigs. "Whig" had been a term of abuse for Scots Presbyterian rebels and horse thieves. The gout and venereal disease were common among political leaders. A primitive condom just introduced to the aristocracy from France helped deter syphillus; It was uncomfortable and unreliable.

Under Charles II, the Treasury as a supreme financial body separated from the Exchequer as a depository of revenue. A gold guinea coin was issued. From 1690, government policy was controlled by specific appropriations. Money bills had to originate in the Commons, and could not be amended by the House of Lords.

Boards became independent of the king's Privy Council and answerable to the secretary of state.

In the 1680s, Charles compelled some of the livery companies in London to give up their charters to him and he called in many corporation charters of boroughs whenever some light excuse could be found to justify it. This was done by the use of the writ of quo warranto before a court. In London he had the tory mayor revive an ancient custom of selecting a sheriff by drinking to him at the annual feast. Two tory sheriffs were installed into office. All these actions gave the king a voice in selection of the officers of London and boroughs, since Royal commissioners would then determine who the officers would be. This was to assure London's representation in Parliament by Crown loyalists as London had been whig. It also allowed influenced selection of sympathetic jurors.

Criminal seditious libel was brought into the common law courts in 1664, when Benjamin Keach was tried for writing a book containing contradictions of the doctrine of the established church. He wrote against infant baptism and asserted that laymen might preach the gospel. The justice intimidated the jury to find him guilty. He was sentenced to be fined, to spend two hours in the pillory in two successive weeks, and his book to be burned before his face. He was to be imprisoned until he found sureties for his good behavior and renunciation of his doctrine and for his future appearance in court. Juries were loath to find anyone guilty of seditious libel.

James II succeeded Charles II to the throne and fostered Roman Catholicism by appointments and by attempting to suspend laws unfavorable to Catholics. He commanded all bishops to read in the churches his Declaration of Indulgence exempting both Catholic and Protestant dissenters from all penal statutes based on religion. Seven bishops refused to obey and jointly petitioned him, stating that his action was illegal according to Parliament. He prosecuted them for seditious libel in the petition. The jury found them not guilty. James discharged the two justices of the five who had rejected the seditious libel doctrine which had been created by the Star Chamber Court. This roused the whigs and tories in turn to discharge him by joining in inviting protestants William of Orange and Mary to take the throne in his place. James was effectively chased out of England by William's advancing army in the Glorious Revolution of 1688-9, which took away the powers of final authority from the king, but without transferring them to any other body. A "Bill of Rights" stated that

1. The king may not suspend laws or dispense with them without consent of Parliament.

2. The establishment of a Court of Commissioners and like bodies for ecclesiastical causes is illegal.

3. The king may not levy money or extend an authorized levy without consent of Parliament.

4. Subjects have a right to petition the king without prosecution.

5. The king may not raise or keep a standing army within the country in time of peace without the consent of Parliament.

6. Protestants may have arms for their defense as allowed by law.

7. The elections of members of Parliament should be free.

8. The freedom of speech or debates or proceedings in Parliament should not be impeached or questioned in any court or place outside of Parliament.

9. Excessive bail should not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted (so no more men were whipped to death)

10. Jury selection should not be tampered with, and jurors who try men for high treason should be freeholders.

11. All grants and promises of fines and forfeiture of particular persons, before conviction, are illegal and void.

12. Parliament should be held frequently for redress of grievances and for the amending, strengthening, and preserving of the laws.

13. All Protestants may freely exercise their religion and the king will maintain the Protestant religion and the law and liberty of the realm.

The right of the peoples' representatives to select and depose the king and to change the order of succession was established. There was no divine right or hereditary right to the Crown. An English monarch was created by an act of Parliament. The king still called and dissolved Parliaments, except that Parliament continued for six months after the death of a king. From 1689, Parliament sat every year. Freedom of speech for members of Parliament was established by a resolution overturning a King's Bench felony conviction of Sir John Elliot.

By the act of settlement of 1701, no officer or pensioner of the king could be a member of Parliament. All resolutions by the Privy Council had to be signed by the members consenting to them. No one born outside the realm could be a member of the Privy Council or of Parliament, or could have any civil or military office or place of trust, or any grants of land or tenements from the king. Justices served during good behavior instead of at the pleasure of the king.

After the Glorious Revolution, Tories tended to accept of the Whig principles of limited constitutional monarchy instead of rule by divine right.