Corporation not to trade

Section XXVI of the Founding Act of the Bank of England says that the Corporation is not to trade. That means: no dealings with financial “products” or “instruments”, let alone national currencies.

And to the intent that theire Majesties Subjects may not be oppressed by the said Corporation by theire monopolizing or ingrosseing any sort of Goods Wares of Merchandizes the said Corporation to be made and created by this Act shall not att any time dureing the continuance thereof deale or trade or permitt or suffer any person or persons whatsoever either in trust or for the benefitt of the same to deale or trade with any of the Stock-moneyes or Effects of or any belonging to the said Corporation in the buying or selling of any Goods Wares or Merchandizes whatsoever and every person or persons who shall soe deale or trade or by whose order or directions such Dealeings or Tradeing shall be made prosecuted or managed shall forfeite for every such Dealeing or Tradeing and every such order and directions treble the value of the Goods and Merchandize soe traded for to such person or persons who shall sue for the same by Action

In “bullet language” and “nickel words”:

  • HM the Queen’s subjects would be oppressed, if the Corporation were to trade
  • the Corporation could monopolize or ingross goods or wares of merchandize
  • the Corporation shall not at any time deal or trade with the stock-monies [that it obtains through its foundation] in the buying or selling of any goods or wares of merchandize
  • anybody who deals or trades anyhow shall be prosecuted and be punished by losing treble the value for every deal.

Section XXVII is about “In what Things they may nevertheless deal”

Provided that nothing herein conteined shall any wayes be construed to hinder the said Corporation from dealeing in Bills of Exchange or in buying or selling Bullion Gold or Silver or in selling any goods wares or merchandize whatsoever which shall really and bona fide be left or deposited with the said Corporation for money lent and advanced thereon and which shall not be redeemed att the time agreed on or within three moneths after or from selling such goods as shall or may be the produce of Lands purchased by the said Corporation

In simpler terms:

  • Bills of Exchange
  • Bullion Gold or Silver
  • goods, wares or merchandize which were left or deposited for money lent and advanced thereon and which shall not be redeemed at the time agreed or within three months
  • produce of land purchased by the Corporation.

Just imagine whose opinions matter in the interpretations of these phrases!

One response to “Corporation not to trade

  1. Pingback: Petition sent to Buckingham Palace « Enforcement of Bank of England Act 1694

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