1

The Prospectus of Blackwell's Bank, 1687.

The "Fund at Boston in New England," an experimental attempt to supplement by Bank Credit the needs of the community in the way of a circulating medium, was organized in the fall of 1681. The project was so purely empirical that the founders made no appeal to the public until the spring of 1682, when, after a six months' test of the scheme, a pamphlet, eight pages in length, entitled "Severals Relating to the Fund," was printed. This, upon careful inspection, will be found to be merely a prospectus of the bank. It is true that there are references to succeeding pages and to matter intended to be placed therein, which at first glance would seem to indicate that these eight pages were but a portion of a larger publication, but statements made in the pamphlet itself justify the conclusion that while "Severals Relating to the Fund" was being run through the press, the project of its publication was altered, that certain matter was cut out, that other matter was introduced, and by this means the scheme of the Fund was brought within the eight pages then printed, leaving for future publication, in the form at first proposed, the matter originally prepared by the author. It may be doubted whether the fuller publication was ever made.

The scheme of the Fund had already been submitted to the Council. Failing to secure the approval of that body, the projectors of the movement began their operations in the fall of 1681, and issued this prospectus in the following spring. Subsequent events would indicate that there was enough of success in this proceeding to secure converts in the community with sufficient influence to bring about the approval by the Council of a similar scheme.

The new plan 2 was more ostentatious in character, and its purposes were more clearly defined, the proposed emissions being therein described as " Bank-Bills of Credit, signed by several persons of good repute joined together in a partnership." The title "Bank-bills of Credit," and the appeal for

1 Reprinted in "Tracts relating to the Currency of the Massachusetts Bay," 1682-1720, pp. 1–11.

2 An abstract of what was known of this bank at the time when "Currency and Banking in Massachusetts Bay" was written is given in vol. ii., “Banking," pp. 76 et seq.

confidence on the ground of the high standing of the signers of the bill indicate a clearer conception of the possibilities in the way of a paper substitute for the coined money which then constituted the only circulating medium, than can be inferred from the "Change bills" described in "Severals Relating to the Fund."

If we trace the progress of the Fund, as the story is narrated in the pages of "Severals," etc., we see that when, in September, 1681, the experiment was begun, it was approved by some, but met with disfavor on the part of others. On the whole, it was so far successful that at the end of six months it was thought, on the part of the promoters, "not fit to be longer silent," but to hasten "An Account of the Design.” 1 The account thus hastened was "Severals Relating to the Fund."

In a similar way, on the 26th of February, 1714, the projectors of the bank which it was then sought to establish, issued as a prospectus a pamphlet entitled "A Model For Erecting A Bank of Credit,” etc., said to have been printed in London in the year 1688, and reprinted in Boston in 1714.2 This was followed, in October of the same year, by the publication of a pamphlet entitled "A Projection for Erecting a Bank of Credit in Boston, New England, Founded on Land Security," thus appealing to the public for support through the Scheme of the Bank.

It does not follow that the intermediate projection, Blackwell's Bank, was inaugurated by similar means, but it is perhaps a fair inference that such was the case. Even though we are dependent for our information concerning this Bank exclusively upon manuscript sources, we feel as if some time or other some printed account of it ought to turn up.

We know that Blackwell wrote "out the abstracts of the book intended to be printed," and claimed compensation from the Bank for the service. It is true that this claim was made after the project was abandoned; hence the inference may be drawn that if the book had actually gone to press, Blackwell would have referred to the publication as a "Book which was printed" rather than as one which was "intended 1 Tracts relating to the Currency, etc., 1682-1720, p. 9.

2 lbid., pp. 36-67

8 Ibid., pp. 70-84.

4 From a letter of Blackwell's quoted in "Currency and Banking," etc., vol. ii., "Banking," p. 80.

to be printed." The argument that the use of language expressing mere intention would preclude the idea that there had been any fulfilment of that intention would be much stronger, however, if applied to current affairs than it actually is in its application to events which occurred in the seventeenth century. An instance of the manner in which these words were formerly used is to be found in the proprietary records of Cambridge, where the two and two-thirds acres granted to the school or college are referred to in the boundaries of adjoining lots, for many years after the actual grant, as "land intended for the college." The conveyancer used the term as a means of identification of the land, and was indifferent to criticism on other points if it served that purpose. The descriptive use by Blackwell of the same phrase was for the same purpose; hence, if we should come across any special publication treating of this Bank, we should not be debarred from the conjecture that it was from the hands of Blackwell.

Unfortunately no such printed matter is at hand, and no printed reference to this Bank has been found, unless the statement made in a pamphlet printed in 1714 entitled "A Letter from one in Boston to his Friend in the Country," etc., that "Our Fathers about Twenty-eight Years Ago, Entered into a Partnership to Circulate their Notes founded on Land Security," etc., shall be held to be such a reference. That the writer had Blackwell's Bank in view is probable, but it is also probable that he confounded it with "The Fund," since his evident intention was to convey the impression that the Notes were actually being circulated.

1

The conjecture that the manuscript prepared by Blackwell did find its way into print is strengthened by the discovery, among the Winthrop Papers in the custody of this Society, of a manuscript copy of a prospectus of the Bank which bears upon the titlepage the words "Published by the Proposers Anno 1687."

The fragments of the Constitution and the Rules of the Bank to be found in the Archives serve to identify the model upon which it was founded with that which is set forth in the pamphlet entitled "A Model for Erecting a Bank of Credit," reprinted in Boston in 1714. It is natural, therefore, to turn. at once to this pamphlet and to institute a comparison be1 Tracts relating to the Currency, etc., 1682–1720, p. 134.

tween the scheme set forth therein and that which is suggested in the prospectus said to have been published in 1687. Such a comparison reveals the fact that while there is matter in each not to be found in the other, the greater part of the contents of both are substantially identical. The two differ widely in the arrangement of the material, but they are plainly derived from a common origin.

I have elsewhere called attention to the fact that Hutchinson alluded in his History to a pamphlet of the same character as the "Model," etc., of 1688, as having been issued in 1684, and I then said, referring at the time only to the fragments of the Constitution and Rules of the Bank in the Archives, that there was indisputable evidence that the Model for a Bank suggested in the pamphlet of 1688 was in Blackwell's hands in 1686.1

The copy of the prospectus, being much more complete than the fragments in the Archives, furnishes a new and better opportunity for testing the truth of this assertion. The substantial identity of the two schemes will be accepted by any person who will make this comparison.

The prospectus is of sufficient interest in connection with the subject of Banking in Massachusetts in the eighteenth century to justify its publication, notwithstanding the fact that most of the contents have already been given us in the reprint of 1714. It is as follows:

A DISCOURSE IN EXPLANATION OF THE BANK OF CREDIT | Or | An Account of the Model Rules & Benefits of | The Bank of Credit, Lumbard, and Exchange of Moneys Proposed to be Erected in Boston And managed by persons in Partnership, as other | Merchantly Affayres. | Published by the Proposers. | Anno |

1687.

Briefe considerations tending Demonstratively to evince the Necessity, Security, usefulnes & Advantage of The Bank of Credit Lumbard & Exchange of Moneys Proposed to be Erected at Boston in NewEngland. And, That, Bank-bills of Credit will not only answer the Ends of Gold and Silver moneys, but are Preferrable to both. Also, some Rules & Instructions to be attended by all such as shall desire the Assistance of this Bank &c Touching the way and manner of their proceedings, in order to their Receiving the Benefits thereby held forth.

viz!

1 Currency and Banking, etc., vol. ii., "Banking," p. 75.

Some things Premised for Introduction
touching Banks in Generall vizt

Money, whether Gold or Silver, is but a measure of the value of other things yet hath, for a long Succession of Ages (especially in the civillized & trading part of the world) obteyned to be the usuall & best known means of Inter-change.

This Measure & way of interchange was originally occasion'd by the experimented inconveniencies of Comon Barter by Comodities : In which way, unlesse both the parties dealing had like occasion reciprocally of each other's, the lesse necessitous over-reached the greater, by imposing ye Price of both to his owne Advantage, and the others detriment, which was not equall.

The Inconveniencies of the way of Barter might have been much obviated, By a frequent setting a just & equall value of the Price of all comodities, by publique authority, according as the plenty or scarceity of them should require, and the market had ruled: But, there being no such common standard, Money hath obteyned & been admitted as the best ballance of Trade, both by wise & un-wise. But, whether the Mynes faile, or men have not been so foreseing and industrious to bring into most countreys a sufficiency wherewith to manage their increasing trades; Or, That Traders, for want of other returnes, have been necessitated, for Ballance of the Surcharge of goods Imported, To Remit the Coynes of some Countreys into others; Or, For other unknown causes, 't is now so hard to come by, for the carrying on of trade, to answer the vastness of men's attempts & aymes of increase in Merchandize, as that it's suspected to be insufficient in this age of the world: And that hath put divers persons & countreys upon contrivances, how to supply that deficiencie, by other Mediums: Some of which, have happily pitch'd upon That, of Banks, Lumbards & Exchange of Moneys by Bills: which have thriven with them.

The Two Former of these, viz', Banks and Lumbards have been sett on foot in divers Countreys, by their respective publique undertakings, and have succeded to their abundant inriching. Perhaps others have thought, That would have occasioned the over-flowing of moneys amongst them: But, as the later have been mistaken, Or, their Surfeit of Trade hath obscured the visibility of it, and protracted the considerations of Redressing, till it hath proved allmost Fatall, even to the giving a Sett, or declension to their Aspyrings therin; So, the Former have really experimented, that their Banks have been, as well amongst themselves, as with other Countreys, of greater value than the Species of Gold and Silver: and yet such places dreyne away the said species from the other that Court it, as the only reall good thing for a Countrey.

The Third, viz'. That of Exchange of Moneys, hath been for the