Central banking

Pepys' Diary 17th August 1666

Then to Sir W. Batten’s, where Sir Richard Ford did very understandingly, methought, give us an account of the originall of the Hollands Bank, and the nature of it, and how they do never give any interest at all to any person that brings in their money, though what is brought in upon the public faith interest is given by the State for. The unsafe condition of a Bank under a Monarch, and the little safety to a Monarch to have any; or Corporation alone (as London in answer to Amsterdam) to have so great a wealth or credit, it is, that makes it hard to have a Bank here. And as to the former, he did tell us how it sticks in the memory of most merchants how the late King (when by the war between Holland and France and Spayne all the bullion of Spayne was brought hither, one-third of it to be coyned; and indeed it was found advantageous to the merchant to coyne most of it), was persuaded in a strait by my Lord Cottington to seize upon the money in the Tower, which, though in a few days the merchants concerned did prevail to get it released, yet the thing will never be forgot.