BANK OF ENGLAND

& THE BRITISH EMPIRE: A “New World Order”?

By William P. Litynski

The City of London: Organized Crime?

The City of London, with the Bank of England (left) and the Old London Stock E change (!ight)

"ansion #o$se is the official !esidence of the Lo!d "ayo! of the City of London in London, England. (Photo% &lick!)

B!itish 'ewish financie!s Si! "oses "ontefio!e (left) and (athan "aye! )othschild (!ight)

The *$ildhall in the City of London (Photo% &lick!)

The Bank of England, the cent!al +ank of *!eat B!itain, located in the City of London. (Photo% &lick!)

Pate!noste! S,$a!e in the City of London - the new home of the London Stock E change and ne t doo! to St Pa$l.s Cathed!al

Pate!noste! S,$a!e in the City of London

B!itain/s P!ime "iniste! *o!don B!own (second f!om !ight), his wife Sa!ah (left), City of London Lo!d "ayo! 0lde!man 1an L$de! (second f!om left), and his wife Lady "ayo!ess Lin L$de! (!ight) 2ose fo! a 2ict$!e d$!ing Lo!d "ayo!.s +an,$et in cent!al London on (o3em+e! 45, 6557. The +an,$et is held in hono! of the immediate 2ast Lo!d "ayo! and is the fi!st to +e hosted +y the new Lo!d "ayo! of the City of London 0lde!man 1an L$de!. (0&P8*etty 1mages)

P!ime "iniste! of *!eat B!itain *o!don B!own (cente!) and his wife Sa!ah attend the Lo!d "ayo!.s +an,$et in cent!al London on (o3em+e! 45, 6557. (0&P8*etty 1mages)

(&!om L to )) She!iff )oge! *iffo!d, She!iff.s Esco!t Cla!e Taylo!, Sa!ah B!own, the wife of *o!don B!own, Lo!d "ayo! 0lde!man 1an L$de!, B!itain/s P!ime "iniste! *o!don B!own, Lady "ayo!ess Lin L$de!, She!iff.s Esco!t 9el3a Patman and She!iff *eo!ge *illon 2ose fo! a 2ict$!e at the *$ildhall d$!ing the Lo!d "ayo!.s +an,$et in cent!al London on (o3em+e! 45, 6557. The +an,$et is held in hono! of the immediate 2ast Lo!d "ayo! and is the fi!st to +e hosted +y the new Lo!d "ayo! of the City of London 0lde!man 1an L$de! (left). (0&P8*etty 1mages)

B!itain.s P!ime "iniste! *o!don B!own (cente!) follows City of London Lo!d "ayo! 0lde!man 1an L$de! ()) d$!ing a 2!ocession at the *$ildhall d$!ing the Lo!d "ayo!.s +an,$et in cent!al London on (o3em+e! 45, 6557. (0&P8*etty 1mages)

:$een Eli;a+eth 11 of *!eat B!itain lea3es the new London Stock E change +$ilding afte! he! 3isit in the City of London on '$ly 6<, 655=. (Peo2le/s 9aily Online)

:$een Eli;a+eth 11 of *!eat B!itain walks with the Lo!d "ayo! of London, Si! )o+in *illett, on the occasion of he! Sil3e! '$+ilee on '$ne <, 4><<. (Photo +y &o Photos8*etty 1mages)

*!y2hon (*!iffin) at City of London (Photo% &lick!)

This is the Tem2le Ba! "emo!ial on &leet St!eet that ma!ks the +o$nda!y +etween the City of London and the City of Westminste!. 1t was one of the t!aditional gateways to the City of London. (Photo% &lick!)

T#E &0B10( SOC1ET? @ LO(9O( SC#OOL O& ECO(O"1CS

*eo!ge So!os (BSc .A6) s2eaks to the London School of Economics 0l$mni Society of "alaysia. (Photo taken +y 'eff Ooi) (So$!ce% Wiki2edia)

&o$nde!s of the &a+ian Society (f!om left to !ight)% Sidney We++, *eo!ge Be!na!d Shaw (awa!ded (o+el P!i;e fo! Lite!at$!e), and *eo!ge Wallas. The &a+ian Society is a comm$nist society that 2!omotes comm$nism and socialism th!o$gh 2eacef$l and Bdemoc!aticC methods.

The London School of Economics was fo$nded in 47>A +y &a+ian Society mem+e!s Sidney We++, *!aham Wallas, and *eo!ge Be!na!d Shaw. (ota+le London School of Economics st$dents and g!ad$ates incl$de 9a3id )ockefelle!, *eo!ge So!os, )o+e!t )$+in, :$een "a!g!ethe 11 of 9enma!k, Elliott 0+!ams, fo!me! P!ime "iniste! of 1taly )omano P!odi, and fo!me! P!esident 'ohn &. Dennedy.

Pascal Lamy, 9i!ecto! *ene!al of the Wo!ld T!ade O!ganisation (WTO), deli3e!s a s2eech at the London School of Economics in London on Octo+e! 4A, 655<. (Photo% htt2%88www.esf.+e85558)

&ede!al )ese!3e Chai!man Ben Be!nanke s2eaks to an a$dience at the London School of Economics in London on 'an$a!y 4E, 655>. Em2loyment le3els in the Fnited States will see Gcontin$ed weaknessG in the coming months, &ede!al )ese!3e Chai!man Ben Be!nanke wa!ned in London on T$esday. GWe.!e c$!!ently in a 3e!y +ad stage of the cont!action as fa! as em2loyment is conce!ned, and 1 wo$ld e 2ect to see contin$ed weakness in the fi!st ,$a!te!,G he said, !e2lying to an a$dience ,$estion following a s2eech at the London School of Economics. (0&P8*etty 1mages)

Anglo-Spanish War and the Rise of the Kingdom of England

Left% :$een "a!y 1 of England, also known as BBloody "a!yC, !$led England and 1!eland +eginning on '$ly 4>, 4AAE. )ight% :$een Eli;a+eth 1 of England knights Si! &!ancis 9!ake on 02!il =, 4A74 on his shi2 G*olden #indG following his !o$ndHtheHwo!ld 3oyage, in which he looted S2anish shi2s fo! gold.

9efeat of the S2anish 0!mada on 7 0$g$st 4A77 d$!ing the 0ngloHS2anish Wa! (4A7AH4I5=)

1603: The Changing of the G ards

! een Eli"a#eth of England $left% & Septem#er 1'33 ( )* +ar,h 1603- and King .ames of S,otland $right% 1/ . ne 1'66 ( )& +ar,h 16)'-0 King .ames of S,otland s ,,eeded as the King of England on +ar,h )*% 16030

1eft to right: English statesman Sir 2ran,is 3a,on $1st 4is,o nt St0 Al#an% 1'61-16)6-% English la56er Sir Ed5ard Co7e $1'')163*-% English poet William Sha7espeare $1'6*-1616-% and English e8plorer .ohn Rolfe $1'9'-16))-0 Sir 2ran,is 3a,on ser:ed as Attorne6 General of England and Wales $1613-161&- and 1ord ;igh Chan,ellor $161&-16)1-0 Sir Ed5ard Co7e ser:ed as Attorne6 General of England and Wales $1'/*-1606- and Chief . sti,e of the King<s 3en,h $1613-1616-0

English e8plorer Sir Walter Raleigh $left% 1''*-1619- and English re#el G 6 2a57es $right% 1'&0-1606-0 3oth Raleigh and 2a57es 5ere senten,ed to death after the6 5ere fo nd g ilt6 of treason0 Raleigh 5as impli,ated for his alleged in:ol:ement in the +ain =lot in 1603% and 2a57es 5as impli,ated for his alleged in:ol:ement in the G npo5der =lot in 160'0

S2anish di2lomats (seated on the left) and English di2lomats (seated on the !ight) meet to negotiate a t!eaty ending the 0ngloHS2anish Wa! (4A7AH4I5=) d$!ing The Some!set #o$se Confe!ence on 0$g$st 4>, 4I5=. The T!eaty of London ending the 0ngloHS2anish Wa! was signed in London on 0$g$st 67, 4I5=.

*$y &awkes was a!!ested in the cella! +eneath the #o$se of Lo!ds section of the English Pa!liament (Palace of Westminste!) in London, whe!e EI +a!!els of g$n2owde! we!e sto!ed that night, sho!tly afte! midnight on (o3em+e! A, 4I5A. *$y &awkes was a!!ested and late! con3icted fo! his in3ol3ement in the failed *$n2owde! Plot of 4I5A. The *$n2owde! Plot of 4I5A was a failed assassination attem2t against Ding 'ames 1 of England and J1 of Scotland and an attem2t to dest!oy the #o$se of Lo!ds in London +y a g!o$2 of English Catholics. The 2lotte!s 2lanned on assassinating Ding 'ames and mem+e!s of the #o$se of Lo!ds +y igniting g$n 2owde! in the Pa!liament +asement and killing e3e!yone on the Pa!liament floo!, incl$ding Ding 'ames. *$y &awkes was e ec$ted in London on 'an$a!y E4, 4I5I.

English settle!s, on +ehalf of the Ji!ginia Com2any of London, +$ild the 'amestown fo!t in 2!esentHday Ji!ginia (Fnited States of 0me!ica) in "ay 4I5<. The fi!st g!o$2 of Englishmen a!!i3ed in 'amestown on "ay 4=, 4I5<. (So$!ce% (ational Pa!k Se!3ice)

>?either a #orro5er nor a lender #e@ 2or loan oft loses #oth itself and friend% And #orro5ing d lls the edge of h s#andr60 This a#o:e all: to thine o5nself #e tr e% And it m st follo5% as the night the da6% Tho ,anst not then #e false to an6 man0A ( William Sha7espeare% Hamlet% A,t B

Si! Walte! )aleigh (kneeling) 2!e2a!es to +e +eheaded in the Old Palace ?a!d at the Palace of Westminste! in London on Octo+e! 6>, 4I47.

+ap of Great 3ritain

Bank of England: A Pec liar !n"tit tion?

The Bank of England, officially known as BThe *o3e!no! and Com2any of the Bank of EnglandC, was esta+lished on '$ly 6<, 4I>= when mem+e!s of the English Pa!liament 2assed the Tonnage 0ct of 4I>=. The Fnited Dingdom of *!eat B!itain, also known as the $nion of England and Scotland, was esta+lished +y an act of Pa!liament in London on "ay 4, 4<5<. (Photo% &lick!)

Ding William 111 of England (left) and his wife :$een "a!y 11 of England (!ight) !$led England, Scotland, and 1!eland +eginning in 4I7>, afte! Ding 'ames 11 of England was de2osed in the B*lo!io$s )e3ol$tionC in 4I77. Ding William 111 of England was fo!me!ly P!ince William of O!ange and a mona!ch f!om the (ethe!lands.

The Sealing of the 3an7 of England Charter in 16/*0 $So r,e: Ali,e Ar,her ;o #lon% The ;o #lon 2amil6% :ol0 1% 1/0&$=ainting: http:CC,ommons05i7imedia0orgC5i7iC2ile:3an7DofDEnglandDCharterDsealingD16/*0Epg-

Left% Oli3e! C!omwell, who once se!3ed as a "em+e! of Pa!liament, se!3ed as Lo!d P!otecto! of the Commonwealth of England, Scotland and 1!eland (4IAEH4IA7) afte! o3e!th!owing Ding Cha!les 1 of England in 4I=> d$!ing the English Ci3il Wa! (4I=6H4IA4). Oli3e! C!omwell colla+o!ated with 'ewish +anke!s and allowed 'ewish +anke!s f!om 0mste!dam to immig!ate to London afte! 'ewish me!chants we!e 2!ohi+ited f!om immig!ating to England cent$!ies ea!lie!. )ight% Battle of "a!ston "oo! d$!ing the English Ci3il Wa! in 4I== (Painting +y 'ohn Ba!ke!)

The t!ial of Ding Cha!les 1 of England on 'an$a!y =, 4I=>. &!om B(alson.s )eco!d of the T!ial of Cha!les 1, 4I77G in the B!itish "$se$m. Taken +y '. (alson, L. L. 9., 'an.=th, 4I7E London, 4I7=, folio. (So$!ce% BThe Phel2s &amily of 0me!ica and thei! English 0ncesto!sC (Eagle P$+lishing Com2any of Pittsfield, "assach$setts) 47>>)

The Second 0ngloH9$tch Wa! was fo$ght +etween England and the (ethe!lands f!om "a!ch =, 4IIA to '$ly E4, 4II<. The Battle of Lowestoft, a maKo! +attle in the Second 0ngloH9$tch Wa!, was fo$ght on '$ne 4E, 4IIA. (0t left is B!itish shi2 #"S Royal Charles and at !ight is 9$tch shi2 Eendracht.)

0 g!o$2 of Englishmen ca!!y dead +$+onic 2lag$e 3ictims in London in 4IIA d$!ing the middle of the last maKo! o$t+!eak of the +$+onic 2lag$e in England, late! known as The *!eat Plag$e of London (4II=H4III).

9etail of the *!eat &i!e of London +y an $nknown 2ainte!, de2icting the fi!e as it wo$ld ha3e a22ea!ed on the e3ening of T$esday, = Se2tem+e! 4III f!om a +oat in the 3icinity of Towe! Wha!f. The Towe! of London is on the !ight and London B!idge on the left, with St. Pa$l.s Cathed!al in the distance, s$!!o$nded +y the tallest flames

+ap of ,entral 1ondon in 1666% sho5ing the # rnt area ,a sed #6 the Great 2ire of 1ondon0 The 3an7 of England 5as esta#lished in the Cit6 of 1ondon $,entral 1ondon- ne8t to the Ro6al E8,hange on . l6 )&% 16/*0

+ap of 1ondon $Cit6 of 1ondon- in 1300 A0F0

9am S,$a!e in 0mste!dam, #olland L(ethe!landsM in the late 4I55s. 9$tch moneychange!s L2!ima!ily S2anish 'ewsM in 0mste!dam 2!o3ided loans to English and Scottish moneychange!s 2!io! to the esta+lishment of the Bank of England in 4I>=.

The moneychange!s of Jenice, E$!o2e/s ancient +anke!s

William =aterson% fo nder of the 3an7 of England

3an7 ?ote prod ,ed #6 the 3an7 of England >Gold% li7e e:er6 other ,ommodit6% is al5a6s some5here or another to #e got for its :al e #6 those 5ho ha:e that :al e to gi:e for it0A ( Adam Smith% Wealth of ?ations% 3oo7 *% Chapter '

Wealth of Nations #6 Adam Smith% 3oo7 )% Chapter ) Gf +one6 ,onsidered as a parti, lar 3ran,h of the general Sto,7 of the So,iet6% or of the E8pense of maintaining the ?ational Capital
BT has #een sho5n in the first #oo7% that the pri,e of the greater part of ,ommodities resol:es itself into three parts% of 5hi,h one pa6s the 5ages of the la#o r% another the profits of the sto,7% and a third the rent of the land 5hi,h had #een emplo6ed in prod ,ing and #ringing them to mar7et: that there are% indeed% some ,ommodities of 5hi,h the pri,e is made p of t5o of those parts onl6% the 5ages of la#o r% and the profits of sto,7: and a :er6 fe5 in 5hi,h it ,onsists altogether in one% the 5ages of la#o r: # t that the pri,e of e:er6 ,ommodit6 ne,essaril6 resol:es itself into some one% or other% or all of these three parts@ e:er6 part of it 5hi,h goes neither to rent nor to 5ages% #eing ne,essaril6 profit to some#od60 Sin,e this is the ,ase% it has #een o#ser:ed% 5ith regard to e:er6 parti, lar ,ommodit6% ta7en separatel6% it m st #e so 5ith regard to all the ,ommodities 5hi,h ,ompose the 5hole ann al prod ,e of the land and la#o r of e:er6 ,o ntr6% ta7en ,omple8l60 The 5hole pri,e or e8,hangea#le :al e of that ann al prod ,e m st resol:e itself into the same three parts% and #e par,elled o t among the different inha#itants of the ,o ntr6% either as the 5ages of their la#o r% the profits of their sto,7% or the rent of their land0 3 t tho gh the 5hole :al e of the ann al prod ,e of the land and la#o r of e:er6 ,o ntr6 is th s di:ided among and ,onstit tes a re:en e to its different inha#itants% 6et as in the rent of a pri:ate estate 5e disting ish #et5een the gross rent and the net rent% so ma6 5e li7e5ise in the re:en e of all the inha#itants of a great ,o ntr60 The gross rent of a pri:ate estate ,omprehends 5hate:er is paid #6 the farmer@ the net rent% 5hat remains free to the landlord% after ded ,ting the e8pense of management% of repairs% and all other ne,essar6 ,harges@ or 5hat% 5itho t h rting his estate% he ,an afford to pla,e in his sto,7 reser:ed for immediate ,ons mption% or to spend pon his ta#le% eH ipage% the ornaments of his ho se and f rnit re% his pri:ate enEo6ments and am sements0 ;is real 5ealth is in proportion% not to his gross% # t to his net rent0 The gross re:en e of all the inha#itants of a great ,o ntr6 ,omprehends the 5hole ann al prod ,e of their land and la#o r@ the net re:en e% 5hat remains free to them after ded ,ting the e8pense of maintaining- first% their fi8ed% and% se,ondl6% their ,ir, lating ,apital@ or 5hat% 5itho t en,roa,hing pon their ,apital% the6 ,an pla,e in their sto,7 reser:ed for immediate ,ons mption% or spend pon their s #sisten,e% ,on:enien,ies% and am sements0 Their real 5ealth% too% is in proportion% not to their gross% # t to their net re:en e0 The 5hole e8pense of maintaining the fi8ed ,apital m st e:identl6 #e e8,l ded from the net re:en e of the so,iet60 ?either the materials ne,essar6 for s pporting their sef l ma,hines and instr ments of trade% their profita#le # ildings% et,0% nor the prod ,e of the la#o r ne,essar6 for fashioning those materials into the proper form% ,an e:er ma7e an6 part of it0 The pri,e of that la#o r ma6 indeed ma7e a part of it@ as the 5or7men so emplo6ed ma6 pla,e the 5hole :al e of their 5ages in their sto,7 reser:ed for immediate ,ons mption0 3 t in other sorts of la#o r% #oth the pri,e and the prod ,e go to this sto,7% the pri,e to that of the 5or7men% the prod ,e to that of other people% 5hose s #sisten,e% ,on:enien,es% and am sements% are a gmented #6 the la#o r of those 5or7men0 The intention of the fi8ed ,apital is to in,rease the prod ,ti:e po5ers of la#o r% or to ena#le the same n m#er of la#o rers to perform a m ,h greater H antit6 of 5or70 Bn a farm 5here all the ne,essar6 # ildings% fen,es% drains% ,omm ni,ations% et,0% are in the most perfe,t good order% the same n m#er of la#o rers and la#o ring ,attle 5ill raise a m ,h greater prod ,e than in one of eH al e8tent and eH all6 good gro nd% # t not f rnished 5ith eH al ,on:enien,ies0 Bn man fa,t res the same n m#er of hands% assisted 5ith the #est ma,hiner6% 5ill 5or7 p a m ,h greater H antit6 of goods than 5ith more imperfe,t instr ments of trade0 The e8pense 5hi,h is properl6 laid o t pon a fi8ed ,apital of an6 7ind% is al5a6s repaid 5ith great profit% and in,reases the ann al prod ,e #6 a m ,h greater :al e than that of the s pport 5hi,h s ,h impro:ements reH ire0 This s pport% ho5e:er% still reH ires a ,ertain portion of that prod ,e0 A ,ertain H antit6 of materials% and the la#o r of a ,ertain n m#er of 5or7men% #oth of 5hi,h might ha:e #een immediatel6 emplo6ed to a gment the food% ,lothing and lodging% the s #sisten,e and ,on:enien,ies of the so,iet6% are th s di:erted to another emplo6ment% highl6 ad:antageo s indeed% # t still different from this one0 Bt is pon this a,,o nt that all s ,h impro:ements in me,hani,s% as ena#le the same n m#er of 5or7men to perform an eH al H antit6 of 5or7% 5ith ,heaper and simpler ma,hiner6 than had #een s al #efore% are al5a6s regarded as ad:antageo s to e:er6 so,iet60 A ,ertain H antit6 of materials% and the la#o r of a ,ertain n m#er of 5or7men% 5hi,h had #efore #een emplo6ed in s pporting a more ,omple8 and e8pensi:e ma,hiner6% ,an after5ards #e applied to a gment the H antit6 of 5or7 5hi,h that or an6 other ma,hiner6 is sef l onl6 for performing0 The nderta7er of some great man fa,tor6 5ho emplo6s a tho sand a 6ear in the maintenan,e of his ma,hiner6% if he ,an red ,e this e8pense to fi:e h ndred 5ill nat rall6 emplo6 the other fi:e h ndred in p r,hasing an additional H antit6 of materials to #e 5ro ght p #6 an additional n m#er of 5or7men0 The H antit6 of that 5or7% therefore% 5hi,h his ma,hiner6 5as sef l onl6 for performing% 5ill nat rall6 #e a gmented% and 5ith it all the ad:antage and ,on:enien,6 5hi,h the so,iet6 ,an deri:e from that 5or70 The e8pense of maintaining the fi8ed ,apital in a great ,o ntr6 ma6 :er6 properl6 #e ,ompared to that of repairs in a pri:ate estate0 The e8pense of repairs ma6 freH entl6 #e ne,essar6 for s pporting the prod ,e of the estate% and ,onseH entl6 #oth the gross and the net rent of the landlord0 When #6 a more proper dire,tion% ho5e:er% it ,an #e diminished 5itho t o,,asioning an6 dimin tion of prod ,e% the gross rent remains at least the same as #efore% and the net rent is ne,essaril6 a gmented0

3 t tho gh the 5hole e8pense of maintaining the fi8ed ,apital is th s ne,essaril6 e8,l ded from the net re:en e of the so,iet6% it is not the same ,ase 5ith that of maintaining the ,ir, lating ,apital0 Gf the fo r parts of 5hi,h this latter ,apital is ,omposed- mone6% pro:isions% materials% and finished 5or7- the three last% it has alread6 #een o#ser:ed% are reg larl6 5ithdra5n from it% and pla,ed either in the fi8ed ,apital of the so,iet6% or in their sto,7 reser:ed for immediate ,ons mption0 Whate:er portion of those ,ons ma#le goods is emplo6ed in maintaining the former% goes all to the latter% and ma7es a part of the net re:en e of the so,iet60 The maintenan,e of those three parts of the ,ir, lating ,apital% therefore% 5ithdra5s no portion of the ann al prod ,e from the net re:en e of the so,iet6% #esides 5hat is ne,essar6 for maintaining the fi8ed ,apital0 The ,ir, lating ,apital of a so,iet6 is in this respe,t different from that of an indi:id al0 That of an indi:id al is totall6 e8,l ded from ma7ing an6 part of his net re:en e% 5hi,h m st ,onsist altogether in his profits0 3 t tho gh the ,ir, lating ,apital of e:er6 indi:id al ma7es a part of that of the so,iet6 to 5hi,h he #elongs% it is not pon that a,,o nt totall6 e8,l ded from ma7ing a part li7e5ise of their net re:en e0 Tho gh the 5hole goods in a mer,hant<s shop m st #6 no means #e pla,ed in his o5n sto,7 reser:ed for immediate ,ons mption% the6 ma6 in that of other people% 5ho% from a re:en e deri:ed from other f nds% ma6 reg larl6 repla,e their :al e to him% together 5ith its profits% 5itho t o,,asioning an6 dimin tion either of his ,apital or of theirs0 +one6% therefore% is the onl6 part of the ,ir, lating ,apital of a so,iet6% of 5hi,h the maintenan,e ,an o,,asion an6 dimin tion in their net re:en e0 The fi8ed ,apital% and that part of the ,ir, lating ,apital 5hi,h ,onsists in mone6% so far as the6 affe,t the re:en e of the so,iet6% #ear a :er6 great resem#lan,e to one another0 2irst% as those ma,hines and instr ments of trade% et,0% reH ire a ,ertain e8pense% first to ere,t them% and after5ards to s pport them% #oth 5hi,h e8penses% tho gh the6 ma7e a part of the gross% are ded ,tions from the net re:en e of the so,iet6@ so the sto,7 of mone6 5hi,h ,ir, lates in an6 ,o ntr6 m st reH ire a ,ertain e8pense% first to ,olle,t it% and after5ards to s pport it% #oth 5hi,h e8penses% tho gh the6 ma7e a part of the gross% are% in the same manner% ded ,tions from the net re:en e of the so,iet60 A ,ertain H antit6 of :er6 :al a#le materials% gold and sil:er% and of :er6 , rio s la#o r% instead of a gmenting the sto,7 reser:ed for immediate ,ons mption% the s #sisten,e% ,on:enien,ies% and am sements of indi:id als% is emplo6ed in s pporting that great # t e8pensi:e instr ment of ,ommer,e% #6 means of 5hi,h e:er6 indi:id al in the so,iet6 has his s #sisten,e% ,on:enien,ies% and am sements reg larl6 distri# ted to him in their proper proportions0 Se,ondl6% as the ma,hines and instr ments of a trade% et,0% 5hi,h ,ompose the fi8ed ,apital either of an indi:id al or of a so,iet6% ma7e no part either of the gross or of the net re:en e of either@ so mone6% #6 means of 5hi,h the 5hole re:en e of the so,iet6 is reg larl6 distri# ted among all its different mem#ers% ma7es itself no part of that re:en e0 The great 5heel of ,ir, lation is altogether different from the goods 5hi,h are ,ir, lated #6 means of it0 The re:en e of the so,iet6 ,onsists altogether in those goods% and not in the 5heel 5hi,h ,ir, lates them0 Bn ,omp ting either the gross or the net re:en e of an6 so,iet6% 5e m st al5a6s% from their 5hole ann al ,ir, lation of mone6 and goods% ded ,t the 5hole :al e of the mone6% of 5hi,h not a single farthing ,an e:er ma7e an6 part of either0 Bt is the am#ig it6 of lang age onl6 5hi,h ,an ma7e this proposition appear either do #tf l or parado8i,al0 When properl6 e8plained and nderstood% it is almost self-e:ident0 When 5e tal7 of an6 parti, lar s m of mone6% 5e sometimes mean nothing # t the metal pie,es of 5hi,h it is ,omposed@ and sometimes 5e in,l de in o r meaning some o#s, re referen,e to the goods 5hi,h ,an #e had in e8,hange for it% or to the po5er of p r,hasing 5hi,h the possession of it ,on:e6s0 Th s 5hen 5e sa6 that the ,ir, lating mone6 of England has #een ,omp ted at eighteen millions% 5e mean onl6 to e8press the amo nt of the metal pie,es% 5hi,h some 5riters ha:e ,omp ted% or rather ha:e s pposed to ,ir, late in that ,o ntr60 3 t 5hen 5e sa6 that a man is 5orth fift6 or a h ndred po nds a 6ear% 5e mean ,ommonl6 to e8press not onl6 the amo nt of the metal pie,es 5hi,h are ann all6 paid to him% # t the :al e of the goods 5hi,h he ,an ann all6 p r,hase or ,ons me0 We mean ,ommonl6 to as,ertain 5hat is or o ght to #e his 5a6 of li:ing% or the H antit6 and H alit6 of the ne,essaries and ,on:enien,ies of life in 5hi,h he ,an 5ith propriet6 ind lge himself0 When% #6 an6 parti, lar s m of mone6% 5e mean not onl6 to e8press the amo nt of the metal pie,es of 5hi,h it is ,omposed% # t to in,l de in its signifi,ation some o#s, re referen,e to the goods 5hi,h ,an #e had in e8,hange for them% the 5ealth or re:en e 5hi,h it in this ,ase denotes% is eH al onl6 to one of the t5o :al es 5hi,h are th s intimated some5hat am#ig o sl6 #6 the same 5ord% and to the latter more properl6 than to the former% to the mone6<s 5orth more properl6 than to the mone60 Th s if a g inea #e the 5ee7l6 pension of a parti, lar person% he ,an in the ,o rse of the 5ee7 p r,hase 5ith it a ,ertain H antit6 of s #sisten,e% ,on:enien,ies% and am sements0 Bn proportion as this H antit6 is great or small% so are his real ri,hes% his real 5ee7l6 re:en e0 ;is 5ee7l6 re:en e is ,ertainl6 not eH al #oth to the g inea% and to 5hat ,an #e p r,hased 5ith it% # t onl6 to one or other of those t5o eH al :al es@ and to the latter more properl6 than to the former% to the g inea<s 5orth rather than to the g inea0

Bf the pension of s ,h a person 5as paid to him% not in gold% # t in a 5ee7l6 #ill for a g inea% his re:en e s rel6 5o ld not so properl6 ,onsist in the pie,e of paper% as in 5hat he ,o ld get for it0 A g inea ma6 #e ,onsidered as a #ill for a ,ertain H antit6 of ne,essaries and ,on:enien,ies pon all the tradesmen in the neigh#o rhood0 The re:en e of the person to 5hom it is paid% does not so properl6 ,onsist in the pie,e of gold% as in 5hat he ,an get for it% or in 5hat he ,an e8,hange it for0 Bf it ,o ld #e e8,hanged for nothing% it 5o ld% li7e a #ill pon a #an7r pt% #e of no more :al e than the most seless pie,e of paper0 Tho gh the 5ee7l6 or 6earl6 re:en e of all the different inha#itants of an6 ,o ntr6% in the same manner% ma6 #e% and in realit6 freH entl6 is paid to them in mone6% their real ri,hes% ho5e:er% the real 5ee7l6 or 6earl6 re:en e of all of them ta7en together% m st al5a6s #e great or small in proportion to the H antit6 of ,ons ma#le goods 5hi,h the6 ,an all of them p r,hase 5ith this mone60 The 5hole re:en e of all of them ta7en together is e:identl6 not eH al to #oth the mone6 and the ,ons ma#le goods@ # t onl6 to one or other of those t5o :al es% and to the latter more properl6 than to the former0 Tho gh 5e freH entl6% therefore% e8press a person<s re:en e #6 the metal pie,es 5hi,h are ann all6 paid to him% it is #e,a se the amo nt of those pie,es reg lates the e8tent of his po5er of p r,hasing% or the :al e of the goods 5hi,h he ,an ann all6 afford to ,ons me0 We still ,onsider his re:en e as ,onsisting in this po5er of p r,hasing or ,ons ming% and not in the pie,es 5hi,h ,on:e6 it0 3 t if this is s ffi,ientl6 e:ident e:en 5ith regard to an indi:id al% it is still more so 5ith regard to a so,iet60 The amo nt of the metal pie,es 5hi,h are ann all6 paid to an indi:id al% is often pre,isel6 eH al to his re:en e% and is pon that a,,o nt the shortest and #est e8pression of its :al e0 3 t the amo nt of the metal pie,es 5hi,h ,ir, late in a so,iet6 ,an ne:er #e eH al to the re:en e of all its mem#ers0 As the same g inea 5hi,h pa6s the 5ee7l6 pension of one man to-da6% ma6 pa6 that of another to-morro5% and that of a third the da6 thereafter% the amo nt of the metal pie,es 5hi,h ann all6 ,ir, late in an6 ,o ntr6 m st al5a6s #e of m ,h less :al e than the 5hole mone6 pensions ann all6 paid 5ith them0 3 t the po5er of p r,hasing% or the goods 5hi,h ,an s ,,essi:el6 #e #o ght 5ith the 5hole of those mone6 pensions as the6 are s ,,essi:el6 paid% m st al5a6s #e pre,isel6 of the same :al e 5ith those pensions@ as m st li7e5ise #e the re:en e of the different persons to 5hom the6 are paid0 That re:en e% therefore% ,annot ,onsist in those metal pie,es% of 5hi,h the amo nt is so m ,h inferior to its :al e% # t in the po5er of p r,hasing% in the goods 5hi,h ,an s ,,essi:el6 #e #o ght 5ith them as the6 ,ir, late from hand to hand0 +one6% therefore% the great 5heel of ,ir, lation% the great instr ment of ,ommer,e% li7e all other instr ments of trade% tho gh it ma7es a part and a :er6 :al a#le part of the ,apital% ma7es no part of the re:en e of the so,iet6 to 5hi,h it #elongs@ and tho gh the metal pie,es of 5hi,h it is ,omposed% in the ,o rse of their ann al ,ir, lation% distri# te to e:er6 man the re:en e 5hi,h properl6 #elongs to him% the6 ma7e themsel:es no part of that re:en e0 Thirdl6% and lastl6% the ma,hines and instr ments of trade% et,0% 5hi,h ,ompose the fi8ed ,apital% #ear this f rther resem#lan,e to that part of the ,ir, lating ,apital 5hi,h ,onsists in mone6@ that as e:er6 sa:ing in the e8pense of ere,ting and s pporting those ma,hines% 5hi,h does not diminish the prod ,ti:e po5ers of la#o r% is an impro:ement of the net re:en e of the so,iet6% so e:er6 sa:ing in the e8pense of ,olle,ting and s pporting that part of the ,ir, lating ,apital 5hi,h ,onsists in mone6% is an impro:ement of e8a,tl6 the same 7ind0 Bt is s ffi,ientl6 o#:io s% and it has partl6% too% #een e8plained alread6% in 5hat manner e:er6 sa:ing in the e8pense of s pporting the fi8ed ,apital is an impro:ement of the net re:en e of the so,iet60 The 5hole ,apital of the nderta7er of e:er6 5or7 is ne,essaril6 di:ided #et5een his fi8ed and his ,ir, lating ,apital0 While his 5hole ,apital remains the same% the smaller the one part% the greater m st ne,essaril6 #e the other0 Bt is the ,ir, lating ,apital 5hi,h f rnishes the materials and 5ages of la#o r% and p ts ind str6 into motion0 E:er6 sa:ing% therefore% in the e8pense of maintaining the fi8ed ,apital% 5hi,h does not diminish the prod ,ti:e po5ers of la#o r% m st in,rease the f nd 5hi,h p ts ind str6 into motion% and ,onseH entl6 the ann al prod ,e of land and la#o r% the real re:en e of e:er6 so,iet60 The substitution of paper in the room of gold and silver money, replaces a very expensive instrument of commerce with one much less costly, and sometimes equally convenient. Circulation comes to be carried on by a new wheel, which it costs less both to erect and to maintain than the old one. But in what manner this operation is performed, and in what manner it tends to increase either the gross or the net revenue of the society, is not altogether so obvious, and may therefore require some further explication. There are several different sorts of paper money; but the circulating notes of banks and bankers are the species which is best known, and which seems best adapted for this purpose. hen the people of any particular country have such confidence in the fortune, probity, and prudence of a particular banker, as to believe that he is always ready to pay upon demand such of his promissory notes as are likely to be at any time presented to him; those notes come to have the same currency as gold and silver money, from the confidence that such money can at any time be had for them.

A parti, lar #an7er lends among his , stomers his o5n promissor6 notes% to the e8tent% 5e shall s ppose% of a h ndred tho sand po nds0 As those notes ser:e all the p rposes of mone6% his de#tors pa6 him the same interest as if he had lent them so m ,h mone60 This interest is the so r,e of his gain0 Tho gh some of those notes are ,ontin all6 ,oming #a,7 pon him for pa6ment% part of them ,ontin e to ,ir, late for months and 6ears together0 Tho gh he has generall6 in ,ir, lation% therefore% notes to the e8tent of a h ndred tho sand po nds% t5ent6 tho sand po nds in gold and sil:er ma6 freH entl6 #e a s ffi,ient pro:ision for ans5ering o,,asional demands0 36 this operation% therefore% t5ent6 tho sand po nds in gold and sil:er perform all the f n,tions 5hi,h a h ndred tho sand ,o ld other5ise ha:e performed0 The same e8,hanges ma6 #e made% the same H antit6 of ,ons ma#le goods ma6 #e ,ir, lated and distri# ted to their proper ,ons mers% #6 means of his promissor6 notes% to the :al e of a h ndred tho sand po nds% as #6 an eH al :al e of gold and sil:er mone60 Eight6 tho sand po nds of gold and sil:er% therefore% ,an% in this manner% #e spared from the ,ir, lation of the ,o ntr6@ and if different operations of the same 7ind sho ld% at the same time% #e ,arried on #6 man6 different #an7s and #an7ers% the 5hole ,ir, lation ma6 th s #e ,ond ,ted 5ith a fifth part onl6 of the gold and sil:er 5hi,h 5o ld other5ise ha:e #een reH isite0 1et s s ppose% for e8ample% that the 5hole ,ir, lating mone6 of some parti, lar ,o ntr6 amo nted% at a parti, lar time% to one million sterling% that s m #eing then s ffi,ient for,ir, lating the 5hole ann al prod ,e of their land and la#o r0 1et s s ppose% too% that some time thereafter% different #an7s and #an7ers iss ed promissor6 notes% pa6a#le to the #earer% to the e8tent of one million% reser:ing in their different ,offers t5o h ndred tho sand po nds for ans5ering o,,asional demands0 There 5o ld remain% therefore% in ,ir, lation% eight h ndred tho sand po nds in gold and sil:er% and a million of #an7 notes% or eighteen h ndred tho sand po nds of paper and mone6 together0 3 t the ann al prod ,e of the land and la#o r of the ,o ntr6 had #efore reH ired onl6 one million to ,ir, late and distri# te it to its proper ,ons mers% and that ann al prod ,e ,annot #e immediatel6 a gmented #6 those operations of #an7ing0 Gne million% therefore% 5ill #e s ffi,ient to ,ir, late it after them0 The goods to #e #o ght and sold #eing pre,isel6 the same as #efore% the same H antit6 of mone6 5ill #e s ffi,ient for # 6ing and selling them0 The ,hannel of ,ir, lation% if B ma6 #e allo5ed s ,h an e8pression% 5ill remain pre,isel6 the same as #efore0 Gne million 5e ha:e s pposed s ffi,ient to fill that ,hannel0 Whate:er% therefore% is po red into it #e6ond this s m ,annot r n in it% # t m st o:erflo50 Gne million eight h ndred tho sand po nds are po red into it0 Eight h ndred tho sand po nds% therefore% m st o:erflo5% that s m #eing o:er and a#o:e 5hat ,an #e emplo6ed in the ,ir, lation of the ,o ntr60 3 t tho gh this s m ,annot #e emplo6ed at home% it is too :al a#le to #e allo5ed to lie idle0 Bt 5ill% therefore% #e sent a#road% in order to see7 that profita#le emplo6ment 5hi,h it ,annot find at home0 3 t the paper ,annot go a#road@ #e,a se at a distan,e from the #an7s 5hi,h iss e it% and from the ,o ntr6 in 5hi,h pa6ment of it ,an #e e8a,ted #6 la5% it 5ill not #e re,ei:ed in ,ommon pa6ments0 Gold and sil:er% therefore% to the amo nt of eight h ndred tho sand po nds 5ill #e sent a#road% and the ,hannel of home ,ir, lation 5ill remain filled 5ith a million of paper% instead of the million of those metals 5hi,h filled it #efore0 3 t tho gh so great a H antit6 of gold and sil:er is th s sent a#road% 5e m st not imagine that it is sent a#road for nothing% or that its proprietors ma7e a present of it to foreign nations0 The6 5ill e8,hange it for foreign goods of some 7ind or another% in order to s ppl6 the ,ons mption either of some other foreign ,o ntr6 or of their o5n0 Bf the6 emplo6 it in p r,hasing goods in one foreign ,o ntr6 in order to s ppl6 the ,ons mption of another% or in 5hat is ,alled the ,arr6ing trade% 5hate:er profit the6 ma7e 5ill #e an addition to the net re:en e of their o5n ,o ntr60 Bt is li7e a ne5 f nd% ,reated for ,arr6ing on a ne5 trade@ domesti, # siness #eing no5 transa,ted #6 paper% and the gold and sil:er #eing ,on:erted into a f nd for this ne5 trade0 Bf the6 emplo6 it in p r,hasing foreign goods for home ,ons mption% the6 ma6 either% first% p r,hase s ,h goods as are li7el6 to #e ,ons med #6 idle people 5ho prod ,e nothing% s ,h as foreign 5ines% foreign sil7s% et,0@ or% se,ondl6% the6 ma6 p r,hase an additional sto,7 of materials% tools% and pro:isions% in order to maintain and emplo6 an additional n m#er of ind strio s people% 5ho reprod ,e% 5ith a profit% the :al e of their ann al ,ons mption0 So far as it is emplo6ed in the first 5a6% it promotes prodigalit6% in,reases e8pense and ,ons mption 5itho t in,reasing prod ,tion% or esta#lishing an6 permanent f nd for s pporting that e8pense% and is in e:er6 respe,t h rtf l to the so,iet60 So far as it is emplo6ed in the se,ond 5a6% it promotes ind str6@ and tho gh it in,reases the ,ons mption of the so,iet6% it pro:ides a permanent f nd for s pporting that ,ons mption% the people 5ho ,ons me reprod ,ing% 5ith a profit% the 5hole :al e of their ann al ,ons mption0 The gross re:en e of the so,iet6% the ann al prod ,e of their land and la#o r% is in,reased #6 the 5hole :al e 5hi,h the la#o r of those 5or7men adds to the materials pon 5hi,h the6 are emplo6ed@ and their net re:en e #6 5hat remains of this :al e% after ded ,ting 5hat is ne,essar6 for s pporting the tools and instr ments of their trade0 That the greater part of the gold and sil:er 5hi,h% #eing for,ed a#road #6 those operations of #an7ing% is emplo6ed in p r,hasing foreign goods for home ,ons mption% is and m st #e emplo6ed in p r,hasing those of this se,ond 7ind% seems not onl6 pro#a#le # t almost na:oida#le0 Tho gh some parti, lar men ma6 sometimes in,rease their e8pense :er6 ,onsidera#l6 tho gh their re:en e does not in,rease at all% 5e ma6 #e ass red that no ,lass or order of men e:er does so@ #e,a se% tho gh the prin,iples of ,ommon pr den,e do not al5a6s go:ern the ,ond ,t of e:er6 indi:id al% the6 al5a6s infl en,e that of the maEorit6 of e:er6 ,lass or order0 3 t the re:en e of idle people% ,onsidered as a ,lass or order% ,annot% in the smallest degree% #e in,reased #6 those operations of #an7ing0 Their e8pense in general% therefore% ,annot #e m ,h in,reased #6 them% tho gh that of a fe5 indi:id als among them ma6% and in

realit6 sometimes is0 The demand of idle people% therefore% for foreign goods #eing the same% or :er6 nearl6 the same% as #efore% a :er6 small part of the mone6% 5hi,h #eing for,ed a#road #6 those operations of #an7ing% is emplo6ed in p r,hasing foreign goods for home ,ons mption% is li7el6 to #e emplo6ed in p r,hasing those for their se0 The greater part of it 5ill nat rall6 #e destined for the emplo6ment of ind str6% and not for the maintenan,e of idleness0 When 5e ,omp te the H antit6 of ind str6 5hi,h the ,ir, lating ,apital of an6 so,iet6 ,an emplo6% 5e m st al5a6s ha:e regard to those parts of it onl6 5hi,h ,onsist in pro:isions% materials% and finished 5or7: the other% 5hi,h ,onsists in mone6% and 5hi,h ser:es onl6 to ,ir, late those three% m st al5a6s #e ded ,ted0 Bn order to p t ind str6 into motion% three things are reH isite@ materials to 5or7 pon% tools to 5or7 5ith% and the 5ages or re,ompense for the sa7e of 5hi,h the 5or7 is done0 +one6 is neither a material to 5or7 pon% nor a tool to 5or7 5ith@ and tho gh the 5ages of the 5or7man are ,ommonl6 paid to him in mone6% his real re:en e% li7e that of all other men% ,onsists% not in mone6% # t in the mone6<s 5orth@ not in the metal pie,es% # t in 5hat ,an #e got for them0 The H antit6 of ind str6 5hi,h an6 ,apital ,an emplo6 m st% e:identl6% #e eH al to the n m#er of 5or7men 5hom it ,an s ppl6 5ith materials% tools% and a maintenan,e s ita#le to the nat re of the 5or70 +one6 ma6 #e reH isite for p r,hasing the materials and tools of the 5or7% as 5ell as the maintenan,e of the 5or7men0 3 t the H antit6 of ind str6 5hi,h the 5hole ,apital ,an emplo6 is ,ertainl6 not eH al #oth to the mone6 5hi,h p r,hases% and to the materials% tools% and maintenan,e% 5hi,h are p r,hased 5ith it@ # t onl6 to one or other of those t5o :al es% and to the latter more properl6 than to the former0 When paper is s #stit ted in the room of gold and sil:er mone6% the H antit6 of the materials% tools% and maintenan,e% 5hi,h the 5hole ,ir, lating ,apital ,an s ppl6% ma6 #e in,reased #6 the 5hole :al e of gold and sil:er 5hi,h sed to #e emplo6ed in p r,hasing them0 The 5hole :al e of the great 5heel of ,ir, lation and distri# tion is added to the goods 5hi,h are ,ir, lated and distri# ted #6 means of it0 The operation% in some meas re% resem#les that of the nderta7er of some great 5or7% 5ho% in ,onseH en,e of some impro:ement in me,hani,s% ta7es do5n his old ma,hiner6% and adds the differen,e #et5een its pri,e and that of the ne5 to his ,ir, lating ,apital% to the f nd from 5hi,h he f rnishes materials and 5ages to his 5or7men0 What is the proportion 5hi,h the ,ir, lating mone6 of an6 ,o ntr6 #ears to the 5hole :al e of the ann al prod ,e ,ir, lated #6 means of it% it is% perhaps% impossi#le to determine0 Bt has #een ,omp ted #6 different a thors at a fifth% at a tenth% at a t5entieth% and at a thirtieth part of that :al e0 3 t ho5 small soe:er the proportion 5hi,h the ,ir, lating mone6 ma6 #ear to the 5hole :al e of the ann al prod ,e% as # t a part% and freH entl6 # t a small part% of that prod ,e% is e:er destined for the maintenan,e of ind str6% it m st al5a6s #ear a :er6 ,onsidera#le proportion to that part0 When% therefore% #6 the s #stit tion of paper% the gold and sil:er ne,essar6 for ,ir, lation is red ,ed to% perhaps% a fifth part of the former H antit6% if the :al e of onl6 the greater part of the other fo r-fifths #e added to the f nds 5hi,h are destined for the maintenan,e of ind str6% it m st ma7e a :er6 ,onsidera#le addition to the H antit6 of that ind str6% and% ,onseH entl6% to the :al e of the ann al prod ,e of land and la#o r0 An operation of this 7ind has% 5ithin these fi:e-and-t5ent6 or thirt6 6ears% #een performed in S,otland% #6 the ere,tion of ne5 #an7ing ,ompanies in almost e:er6 ,onsidera#le to5n% and e:en in some ,o ntr6 :illages0 The effe,ts of it ha:e #een pre,isel6 those a#o:e des,ri#ed0 The # siness of the ,o ntr6 is almost entirel6 ,arried on #6 means of the paper of those different #an7ing ,ompanies% 5ith 5hi,h p r,hases and pa6ments of 7inds are ,ommonl6 made0 Sil:er :er6 seldom appears e8,ept in the ,hange of a t5ent6 shillings #an7 note% and gold still seldomer0 3 t tho gh the ,ond ,t of all those different ,ompanies has not #een ne8,eptiona#le% and has a,,ordingl6 reH ired an a,t of =arliament to reg late it% the ,o ntr6% not5ithstanding% has e:identl6 deri:ed great #enefit from their trade0 B ha:e heard it asserted% that the trade of the ,it6 of Glasgo5 do #led in a#o t fifteen 6ears after the first ere,tion of the #an7s there@ and that the trade of S,otland has more than H adr pled sin,e the first ere,tion of the t5o p #li, #an7s at Edin# rgh% of 5hi,h the one% ,alled the 3an7 of S,otland% 5as esta#lished #6 a,t of =arliament in 16/'@ the other% ,alled the Ro6al 3an7% #6 ro6al ,harter in 1&)&0 Whether the trade% either of S,otland in general% or the ,it6 of Glasgo5 in parti, lar% has reall6 in,reased in so great a proportion% d ring so short a period% B do not pretend to 7no50 Bf either of them has in,reased in this proportion% it seems to #e an effe,t too great to #e a,,o nted for #6 the sole operation of this ,a se0 That the trade and ind str6 of S,otland% ho5e:er% ha:e in,reased :er6 ,onsidera#l6 d ring this period% and that the #an7s ha:e ,ontri# ted a good deal to this in,rease% ,annot #e do #ted0 The :al e of the sil:er mone6 5hi,h ,ir, lated in S,otland #efore the nion% in 1&0&% and 5hi,h% immediatel6 after it% 5as #ro ght into the 3an7 of S,otland in order to #e re,oined% amo nted to 1*11%11& 10s0 /d0 sterling0 ?o a,,o nt has #een got of the gold ,oin@ # t it appears from the an,ient a,,o nts of the mint of S,otland% that the :al e of the gold ann all6 ,oined some5hat e8,eeded that of the sil:er0 There 5ere a good man6 people% too% pon this o,,asion% 5ho% from a diffiden,e of repa6ment% did not #ring their sil:er into the 3an7 of S,otland: and there 5as% #esides% some English ,oin 5hi,h 5as not ,alled in0 The 5hole :al e of the gold and sil:er% therefore% 5hi,h ,ir, lated in S,otland #efore the nion% ,annot #e estimated at less than a million sterling0 Bt seems to ha:e ,onstit ted almost the 5hole ,ir, lation of that ,o ntr6@ for tho gh the ,ir, lation of the 3an7 of S,otland% 5hi,h had then no ri:al% 5as ,onsidera#le% it seems to ha:e made # t a :er6 small part of the 5hole0 Bn the present times the 5hole ,ir, lation of S,otland ,annot #e estimated at less than t5o millions% of 5hi,h that part 5hi,h ,onsists in gold and sil:er most pro#a#l6 does not amo nt to half a million0 3 t tho gh the ,ir, lating gold and sil:er of S,otland ha:e s ffered so great a dimin tion d ring this period% its real ri,hes and prosperit6 do not appear to ha:e s ffered an60 Bts agri, lt re% man fa,t res% and trade% on the ,ontrar6% the ann al prod ,e of its land and la#o r% ha:e e:identl6 #een a gmented0

Bt is ,hiefl6 #6 dis,o nting #ills of e8,hange% that is% #6 ad:an,ing mone6 pon them #efore the6 are d e% that the greater part of #an7s and #an7ers iss e their promissor6 notes0 The6 ded ,t al5a6s% pon 5hate:er s m the6 ad:an,e% the legal interest till the #ill shall #e,ome d e0 The pa6ment of the #ill% 5hen it #e,omes d e% repla,es to the #an7 the :al e of 5hat had #een ad:an,ed% together 5ith a ,lear profit of the interest0 The #an7er 5ho ad:an,es to the mer,hant 5hose #ill he dis,o nts% not gold and sil:er% # t his o5n promissor6 notes% has the ad:antage of #eing a#le to dis,o nt to a greater amo nt% #6 the 5hole :al e of his promissor6 notes% 5hi,h he finds #6 e8perien,e are ,ommonl6 in ,ir, lation0 ;e is there#6 ena#led to ma7e his ,lear gain of interest on so m ,h a larger s m0 The ,ommer,e of S,otland% 5hi,h at present is not :er6 great% 5as still more in,onsidera#le 5hen the t5o first #an7ing ,ompanies 5ere esta#lished% and those ,ompanies 5o ld ha:e had # t little trade had the6 ,onfined their # siness to the dis,o nting of #ills of e8,hange0 The6 in:ented% therefore% another method of iss ing their promissor6 notes@ #6 granting 5hat the6 ,alled ,ash a,,o nts% that is #6 gi:ing ,redit to the e8tent of a ,ertain s m $t5o or three tho sand po nds% for e8ample- to an6 indi:id al 5ho ,o ld pro, re t5o persons of ndo #ted ,redit and good landed estate to #e,ome s ret6 for him% that 5hate:er mone6 sho ld #e ad:an,ed to him% 5ithin the s m for 5hi,h the ,redit had #een gi:en% sho ld #e repaid pon demand% together 5ith the legal interest0 Credits of this 7ind are% B #elie:e% ,ommonl6 granted #6 #an7s and #an7ers in all different parts of the 5orld0 3 t the eas6 terms pon 5hi,h the S,ot,h #an7ing ,ompanies a,,ept of repa6ment are% so far as B 7no5% pe, liar to them% and ha:e% perhaps% #een the prin,ipal ,a se% #oth of the great trade of those ,ompanies and of the #enefit 5hi,h the ,o ntr6 has re,ei:ed from it0 Whoe:er has a ,redit of this 7ind 5ith one of those ,ompanies% and #orro5s a tho sand po nds pon it% for e8ample% ma6 repa6 this s m pie,emeal% #6 t5ent6 and thirt6 po nds at a time% the ,ompan6 dis,o nting a proportiona#le part of the interest of the great s m from the da6 on 5hi,h ea,h of those small s ms is paid in till the 5hole #e in this manner repaid0 All mer,hants% therefore% and almost all men of # siness% find it ,on:enient to 7eep s ,h ,ash a,,o nts 5ith them% and are there#6 interested to promote the trade of those ,ompanies% #6 readil6 re,ei:ing their notes in all pa6ments% and #6 en,o raging all those 5ith 5hom the6 ha:e an6 infl en,e to do the same0 The #an7s% 5hen their , stomers appl6 to them for mone6% generall6 ad:an,e it to them in their o5n promissor6 notes0 These the mer,hants pa6 a5a6 to the man fa,t rers for goods% the man fa,t rers to the farmers for materials and pro:isions% the farmers to their landlords for rent% the landlords repa6 them to the mer,hants for the ,on:enien,ies and l 8 ries 5ith 5hi,h the6 s ppl6 them% and the mer,hants again ret rn them to the #an7s in order to #alan,e their ,ash a,,o nts% or to repla,e 5hat the6 ma6 ha:e #orro5ed of them@ and th s almost the 5hole mone6 # siness of the ,o ntr6 is transa,ted #6 means of them0 ;en,e the great trade of those ,ompanies0 36 means of those ,ash a,,o nts e:er6 mer,hant ,an% 5itho t impr den,e% ,arr6 on a greater trade than he other5ise ,o ld do0 Bf there are t5o mer,hants% one in 1ondon and the other in Edin# rgh% 5ho emplo6 eH al sto,7s in the same #ran,h of trade% the Edin# rgh mer,hant ,an% 5itho t impr den,e% ,arr6 on a greater trade and gi:e emplo6ment to a greater n m#er of people than the 1ondon mer,hant0 The 1ondon mer,hant m st al5a6s 7eep #6 him a ,onsidera#le s m of mone6% either in his o5n ,offers% or in those of his #an7er% 5ho gi:es him no interest for it% in order to ans5er the demands ,ontin all6 ,oming pon him for pa6ment of the goods 5hi,h he p r,hases pon ,redit0 1et the ordinar6 amo nt of this s m #e s pposed fi:e h ndred po nds0 The :al e of the goods in his 5areho se m st al5a6s #e less #6 fi:e h ndred po nds than it 5o ld ha:e #een had he not #een o#liged to 7eep s ,h a s m nemplo6ed0 1et s s ppose that he generall6 disposes of his 5hole sto,7 pon hand% or of goods to the :al e of his 5hole sto,7 pon hand% on,e in the 6ear0 36 #eing o#liged to 7eep so great a s m nemplo6ed% he m st sell in a 6ear fi:e h ndred po nds< 5orth less goods than he might other5ise ha:e done0 ;is ann al profits m st #e less #6 all that he ,o ld ha:e made #6 the sale of fi:e h ndred po nds 5orth more goods@ and the n m#er of people emplo6ed in preparing his goods for the mar7et m st #e less #6 all those that fi:e h ndred po nds more sto,7 ,o ld ha:e emplo6ed0 The mer,hant in Edin# rgh% on the other hand% 7eeps no mone6 nemplo6ed for ans5ering s ,h o,,asional demands0 When the6 a,t all6 ,ome pon him% he satisfies them from his ,ash a,,o nt 5ith the #an7% and grad all6 repla,es the s m #orro5ed 5ith the mone6 or paper 5hi,h ,omes in from the o,,asional sales of his goods0 With the same sto,7% therefore% he ,an% 5itho t impr den,e% ha:e at all times in his 5areho se a larger H antit6 of goods than the 1ondon mer,hant@ and ,an there#6 #oth ma7e a greater profit himself% and gi:e ,onstant emplo6ment to a greater n m#er of ind strio s people 5ho prepare those goods for the mar7et0 ;en,e the great #enefit 5hi,h the ,o ntr6 has deri:ed from this trade0 The fa,ilit6 of dis,o nting #ills of e8,hange it ma6 #e tho ght indeed% gi:es the English mer,hants a ,on:enien,6 eH i:alent to the ,ash a,,o nts of the S,ot,h mer,hants0 3 t the S,ot,h mer,hants% it m st #e remem#ered% ,an dis,o nt their #ills of e8,hange as easil6 as the English mer,hants@ and ha:e% #esides% the additional ,on:enien,6 of their ,ash a,,o nts0 The 5hole paper mone6 of e:er6 7ind 5hi,h ,an easil6 ,ir, late in an6 ,o ntr6 ne:er ,an e8,eed the :al e of the gold and sil:er% of 5hi,h it s pplies the pla,e% or 5hi,h $the ,ommer,e #eing s pposed the same- 5o ld ,ir, late there% if there 5as no paper mone60 Bf t5ent6 shilling notes% for e8ample% are the lo5est paper mone6 , rrent in S,otland% the 5hole of that , rren,6 5hi,h ,an easil6 ,ir, late there ,annot e8,eed the s m of gold and sil:er 5hi,h 5o ld #e ne,essar6 for transa,ting the ann al e8,hanges of t5ent6 shillings :al e and p5ards s all6 transa,ted 5ithin that ,o ntr60 Sho ld the ,ir, lating paper at an6 time e8,eed that s m% as the e8,ess ,o ld neither #e sent a#road nor #e emplo6ed in the ,ir, lation of the ,o ntr6% it m st immediatel6 ret rn pon the #an7s to #e e8,hanged for gold and sil:er0 +an6 people 5o ld immediatel6 per,ei:e that the6 had more of this paper than 5as ne,essar6 for transa,ting their # siness at home% and as the6 ,o ld not send it a#road% the6 5o ld immediatel6 demand pa6ment of it from the #an7s0 When this s perfl o s paper 5as ,on:erted into gold and sil:er% the6 ,o ld easil6 find a se for it #6 sending it a#road@ # t the6 ,o ld find none 5hile it remained in the shape of paper0 There 5o ld immediatel6% therefore% #e a r n pon the #an7s to the 5hole e8tent of

this s perfl o s paper% and% if the6 sho5ed an6 diffi, lt6 or #a,75ardness in pa6ment% to a m ,h greater e8tent@ the alarm 5hi,h this 5o ld o,,asion ne,essaril6 in,reasing the r n0 G:er and a#o:e the e8penses 5hi,h are ,ommon to e:er6 #ran,h of trade@ s ,h as the e8pense of ho se-rent% the 5ages of ser:ants% ,ler7s% a,,o ntants% et,0@ the e8penses pe, liar to a #an7 ,onsist ,hiefl6 in t5o arti,les: first% in the e8pense of 7eeping at all times in its ,offers% for ans5ering the o,,asional demands of the holders of its notes% a large s m of mone6% of 5hi,h it loses the interest@ and% se,ondl6% in the e8pense of replenishing those ,offers as fast as the6 are emptied #6 ans5ering s ,h o,,asional demands0 A #an7ing ,ompan6% 5hi,h iss es more paper than ,an #e emplo6ed in the ,ir, lation of the ,o ntr6% and of 5hi,h the e8,ess is ,ontin all6 ret rning pon them for pa6ment% o ght to in,rease the H antit6 of gold and sil:er% 5hi,h the6 7eep at all times in their ,offers% not onl6 in proportion to this e8,essi:e in,rease of their ,ir, lation% # t in a m ,h greater proportion@ their notes ret rning pon them m ,h faster than in proportion to the e8,ess of their H antit60 S ,h a ,ompan6% therefore% o ght to in,rease the first arti,le of their e8pense% not onl6 in proportion to this for,ed in,rease of their # siness% # t in a m ,h greater proportion0 The ,offers of s ,h a ,ompan6 too% tho gh the6 o ght to #e filled m ,h f ller% 6et m st empt6 themsel:es m ,h faster than if their # siness 5as ,onfined 5ithin more reasona#le #o nds% and m st reH ire% not onl6 a more :iolent% # t a more ,onstant and ninterr pted e8ertion of e8pense in order to replenish them0 The ,oin too% 5hi,h is th s ,ontin all6 dra5n in s ,h large H antities from their ,offers% ,annot #e emplo6ed in the ,ir, lation of the ,o ntr60 Bt ,omes in pla,e of a paper 5hi,h is o:er and a#o:e 5hat ,an #e emplo6ed in that ,ir, lation% and is therefore o:er and a#o:e 5hat ,an #e emplo6ed in it too0 3 t as that ,oin 5ill not #e allo5ed to lie idle% it m st% in one shape or another% #e sent a#road% in order to find that profita#le emplo6ment 5hi,h it ,annot find at home@ and this ,ontin al e8portation of gold and sil:er% #6 enhan,ing the diffi, lt6% m st ne,essaril6 enhan,e still f rther the e8pense of the #an7% in finding ne5 gold and sil:er in order to replenish those ,offers% 5hi,h empt6 themsel:es so :er6 rapidl60 S ,h a ,ompan6% therefore% m st% in proportion to this for,ed in,rease of their # siness% in,rease the se,ond arti,le of their e8pense still more than the first0 1et s s ppose that all the paper of a parti, lar #an7% 5hi,h the ,ir, lation of the ,o ntr6 ,an easil6 a#sor# and emplo6% amo nts e8a,tl6 to fort6 tho sand po nds@ and that for ans5ering o,,asional demands% this #an7 is o#liged to 7eep at all times in its ,offers ten tho sand po nds in gold and sil:er0 Sho ld this #an7 attempt to ,ir, late fort6-fo r tho sand po nds% the fo r tho sand po nds 5hi,h are o:er and a#o:e 5hat the ,ir, lation ,an easil6 a#sor# and emplo6% 5ill ret rn pon it almost as fast as the6 are iss ed0 2or ans5ering o,,asional demands% therefore% this #an7 o ght to 7eep at all times in its ,offers% not ele:en tho sand po nds onl6% # t fo rteen tho sand po nds0 Bt 5ill th s gain nothing #6 the interest of the fo r tho sand po nds< e8,essi:e ,ir, lation@ and it 5ill lose the 5hole e8pense of ,ontin all6 ,olle,ting fo r tho sand po nds in gold and sil:er% 5hi,h 5ill #e ,ontin all6 going o t of its ,offers as fast as the6 are #ro ght into them0 ;ad e:er6 parti, lar #an7ing ,ompan6 al5a6s nderstood and attended to its o5n parti, lar interest% the ,ir, lation ne:er ,o ld ha:e #een o:ersto,7ed 5ith paper mone60 3 t e:er6 parti, lar #an7ing ,ompan6 has not al5a6s nderstood or attended to its o5n parti, lar interest% and the ,ir, lation has freH entl6 #een o:ersto,7ed 5ith paper mone60 36 iss ing too great a H antit6 of paper% of 5hi,h the e8,ess 5as ,ontin all6 ret rning% in order to #e e8,hanged for gold and sil:er% the 3an7 of England 5as for man6 6ears together o#liged to ,oin gold to the e8tent of #et5een eight h ndred tho sand po nds and a million a 6ear@ or at an a:erage% a#o t eight h ndred and fift6 tho sand po nds0 2or this great ,oinage the #an7 $in ,onseH en,e of the 5orn and degraded state into 5hi,h the gold ,oin had fallen a fe5 6ears ago- 5as freH entl6 o#liged to p r,hase gold # llion at the high pri,e of fo r po nds an o n,e% 5hi,h it soon after iss ed in ,oin at '3 1&s0 10 1C)d0 an o n,e% losing in this manner #et5een t5o and a half and three per ,ent pon the ,oinage of so :er6 large a s m0 Tho gh the #an7 therefore paid no seignorage% tho gh the go:ernment 5as properl6 at the e8pense of the ,oinage% this li#eralit6 of go:ernment did not pre:ent altogether the e8pense of the #an70 The S,ot,h #an7s% in ,onseH en,e of an e8,ess of the same 7ind% 5ere all o#liged to emplo6 ,onstantl6 agents at 1ondon to ,olle,t mone6 for them% at an e8pense 5hi,h 5as seldom #elo5 one and a half or t5o per ,ent0 This mone6 5as sent do5n #6 the 5aggon% and ins red #6 the ,arriers at an additional e8pense of three H arters per ,ent or fifteen shillings on the h ndred po nds0 Those agents 5ere not al5a6s a#le to replenish the ,offers of their emplo6ers so fast as the6 5ere emptied0 Bn this ,ase the reso r,e of the #an7s 5as to dra5 pon their ,orrespondents in 1ondon #ills of e8,hange to the e8tent of the s m 5hi,h the6 5anted0 When those ,orrespondents after5ards dre5 pon them for the pa6ment of this s m% together 5ith the interest and a ,ommission% soni, of those #an7s% from the distress into 5hi,h their e8,essi:e ,ir, lation had thro5n them% had sometimes no other means of satisf6ing this dra ght # t #6 dra5ing a se,ond set of #ills either pon the same% or pon some other ,orrespondents in 1ondon@ and the same s m% or rather #ills for the same s m% 5o ld in this manner ma7e sometimes more than t5o or three Eo rne6s% the de#tor% #an7% pa6ing al5a6s the interest and ,ommission pon the 5hole a,, m lated s m0 E:en those S,ot,h #an7s 5hi,h ne:er disting ished themsel:es #6 their e8treme impr den,e% 5ere sometimes o#liged to emplo6 this r ino s reso r,e0 The gold ,oin 5hi,h 5as paid o t either #6 the 3an7 of England% or #6 the S,ot,h #an7s% in e8,hange for that part of their paper 5hi,h 5as o:er and a#o:e 5hat ,o ld #e emplo6ed in the ,ir, lation of the ,o ntr6% #eing li7e5ise o:er and a#o:e 5hat ,o ld #e emplo6ed in that ,ir, lation% 5as sometimes sent a#road in the shape of ,oin% sometimes melted do5n and sent a#road in the shape of # llion%

and sometimes melted do5n and sold to the 3an7 of England at the high pri,e of fo r po nds an o n,e0 Bt 5as the ne5est% the hea:iest% and the #est pie,es onl6 5hi,h 5ere ,aref ll6 pi,7ed o t of the 5hole ,oin% and either sent a#road or melted do5n0 At home% and 5hile the6 remained in the shape of ,oin% those hea:6 pie,es 5ere of no more :al e than the light0 3 t the6 5ere of more :al e a#road% or 5hen melted do5n into # llion% at home0 The 3an7 of England% not5ithstanding their great ann al ,oinage% fo nd to their astonishment that there 5as e:er6 6ear the same s,ar,it6 of ,oin as there had #een the 6ear #efore@ and that not5ithstanding the great H antit6 of good and ne5 ,oin 5hi,h 5as e:er6 6ear iss ed from the #an7% the state of the ,oin% instead of gro5ing #etter and #etter% #e,ame e:er6 6ear 5orse and 5orse0 E:er6 6ear the6 fo nd themsel:es nder the ne,essit6 of ,oining nearl6 the same H antit6 of gold as the6 had ,oined the 6ear #efore% and from the ,ontin al rise in the pri,e of gold # llion% in ,onseH en,e of the ,ontin al 5earing and ,lipping of the ,oin% the e8pense of this great ann al ,oinage #e,ame e:er6 6ear greater and greater0 The 3an7 of England% it is to #e o#ser:ed% #6 s ppl6ing its o5n ,offers 5ith ,oin% is indire,tl6 o#liged to s ppl6 the 5hole 7ingdom% into 5hi,h ,oin is ,ontin all6 flo5ing from those ,offers in a great :ariet6 of 5a6s0 Whate:er ,oin therefore 5as 5anted to s pport this e8,essi:e ,ir, lation #oth of S,ot,h and English paper mone6% 5hate:er :a, ities this e8,essi:e ,ir, lation o,,asioned in the ne,essar6 ,oin of the 7ingdom% the 3an7 of England 5as o#liged to s ppl6 them0 The S,ot,h #an7s% no do #t% paid all of them :er6 dearl6 for their o5n impr den,e and inattention0 3 t the 3an7 of England paid :er6 dearl6% not onl6 for its o5n impr den,e% # t for the m ,h greater impr den,e of almost all the S,ot,h #an7s0 The overtrading of some bold pro!ectors in both parts of the "nited #ingdom was the original cause of this excessive circulation of paper money. What a #an7 ,an 5ith propriet6 ad:an,e to a mer,hant or nderta7er of an6 7ind% is not either the 5hole ,apital 5ith 5hi,h he trades% or e:en an6 ,onsidera#le part of that ,apital@ # t that part of it onl6 5hi,h he 5o ld other5ise #e o#liged to 7eep #6 him nemplo6ed% and in read6 mone6 for ans5ering o,,asional demands0 Bf the paper mone6 5hi,h the #an7 ad:an,es ne:er e8,eeds this :al e% it ,an ne:er e8,eed the :al e of the gold and sil:er 5hi,h 5o ld ne,essaril6 ,ir, late in the ,o ntr6 if there 5as no paper mone6@ it ,an ne:er e8,eed the H antit6 5hi,h the ,ir, lation of the ,o ntr6 ,an easil6 a#sor# and emplo60 When a #an7 dis,o nts to a mer,hant a real #ill of e8,hange dra5n #6 a real ,reditor pon a real de#tor% and 5hi,h% as soon as it #e,omes d e% is reall6 paid #6 that de#tor% it onl6 ad:an,es to him a part of the :al e 5hi,h he 5o ld other5ise #e o#liged to 7eep #6 him nemplo6ed and in read6 mone6 for ans5ering o,,asional demands0 The pa6ment of the #ill% 5hen it #e,omes d e% repla,es to the #an7 the :al e of 5hat it had ad:an,ed% together 5ith the interest0 The ,offers of the #an7% so far as its dealings are ,onfined to s ,h , stomers% resem#le a 5ater pond% from 5hi,h% tho gh a stream is ,ontin all6 r nning o t% 6et another is ,ontin all6 r nning in% f ll6 eH al to that 5hi,h r ns o t@ so that% 5itho t an6 f rther ,are or attention% the pond 7eeps al5a6s eH all6% or :er6 near eH all6 f ll0 1ittle or no e8pense ,an e:er #e ne,essar6 for replenishing the ,offers of s ,h a #an70 A mer,hant% 5itho t o:ertrading% ma6 freH entl6 ha:e o,,asion for a s m of read6 mone6% e:en 5hen he has no #ills to dis,o nt0 When a #an7% #esides dis,o nting his #ills% ad:an,es him li7e5ise pon s ,h o,,asions s ,h s ms pon his ,ash a,,o nt% and a,,epts of a pie,emeal repa6ment as the mone6 ,omes in from the o,,asional sale of his goods% pon the eas6 terms of the #an7ing ,ompanies of S,otland@ it dispenses him entirel6 from the ne,essit6 of 7eeping an6 part of his sto,7 #6 him nemplo6ed and in read6 mone6 for ans5ering o,,asional demands0 When s ,h demands a,t all6 ,ome pon him% he ,an ans5er them s ffi,ientl6 from his ,ash a,,o nt0 The #an7% ho5e:er% in dealing 5ith s ,h , stomers% o ght to o#ser:e 5ith great attention% 5hether in the ,o rse of some short period $of fo r% fi:e% si8% or eight months for e8ample- the s m of the repa6ments 5hi,h it ,ommonl6 re,ei:es from them is% or is not% f ll6 eH al to that of the ad:an,es 5hi,h it ,ommonl6 ma7es to them0 Bf% 5ithin the ,o rse of s ,h short periods% the s m of the repa6ments from ,ertain , stomers is% pon most o,,asions% f ll6 eH al to that of the ad:an,es% it ma6 safel6 ,ontin e to deal 5ith s ,h , stomers0 Tho gh the stream 5hi,h is in this ,ase ,ontin all6 r nning o t from its ,offers ma6 #e :er6 large% that 5hi,h is ,ontin all6 r nning into them m st #e at least eH all6 large@ so that 5itho t an6 f rther ,are or attention those ,offers are li7el6 to #e al5a6s eH all6 or :er6 near eH all6 f ll@ and s,ar,e e:er to reH ire an6 e8traordinar6 e8pense to replenish them0 Bf% on the ,ontrar6% the s m of the repa6ments from ,ertain other , stomers falls ,ommonl6 :er6 m ,h short of the ad:an,es 5hi,h it ma7es to them% it ,annot 5ith an6 safet6 ,ontin e to deal 5ith s ,h , stomers% at least if the6 ,ontin e to deal 5ith it in this manner0 The stream 5hi,h is in this ,ase ,ontin all6 r nning o t from its ,offers is ne,essaril6 m ,h larger than that 5hi,h is ,ontin all6 r nning in@ so that% nless the6 are replenished #6 some great and ,ontin al effort of e8pense% those ,offers m st soon #e e8ha sted altogether0 The #an7ing ,ompanies of S,otland% a,,ordingl6% 5ere for a long time :er6 ,aref l to reH ire freH ent and reg lar repa6ments from all their , stomers% and did not ,are to deal 5ith an6 person% 5hate:er might #e his fort ne or ,redit% 5ho did not ma7e% 5hat the6 ,alled% freH ent and reg lar operations 5ith them0 36 this attention% #esides sa:ing almost entirel6 the e8traordinar6 e8pense of replenishing their ,offers% the6 gained t5o other :er6 ,onsidera#le ad:antages0 2irst% #6 this attention the6 5ere ena#led to ma7e some tolera#le E dgment ,on,erning the thri:ing or de,lining ,ir, mstan,es of their de#tors% 5itho t #eing o#liged to loo7 o t for an6 other e:iden,e #esides 5hat their o5n #oo7s afforded them@ men #eing for the most part either reg lar or irreg lar in their repa6ments% a,,ording as their ,ir, mstan,es are either thri:ing or de,lining0 A pri:ate man 5ho lends o t his mone6 to perhaps half a do"en or a do"en of de#tors% ma6% either #6 himself or his agents% o#ser:e and inH ire #oth ,onstantl6 and ,aref ll6 into the ,ond ,t and sit ation of ea,h of them0 3 t a #an7ing ,ompan6% 5hi,h lends mone6 to perhaps fi:e h ndred different people% and of 5hi,h the attention is ,ontin all6 o,, pied #6 o#Ee,ts of a :er6 different 7ind% ,an ha:e no reg lar

information ,on,erning the ,ond ,t and ,ir, mstan,es of the greater part of its de#tors #e6ond 5hat its o5n #oo7s afford it0 Bn reH iring freH ent and reg lar repa6ments from all their , stomers% the #an7ing ,ompanies of S,otland had pro#a#l6 this ad:antage in :ie50 Se,ondl6% #6 this attention the6 se, red themsel:es from the possi#ilit6 of iss ing more paper mone6 than 5hat the ,ir, lation of the ,o ntr6 ,o ld easil6 a#sor# and emplo60 When the6 o#ser:ed that 5ithin moderate periods of time the repa6ments of a parti, lar , stomer 5ere pon most o,,asions f ll6 eH al to the ad:an,es 5hi,h the6 had made to him% the6 might #e ass red that the paper mone6 5hi,h the6 had ad:an,ed to him had not at an6 time e8,eeded the H antit6 of gold and sil:er 5hi,h he 5o ld other5ise ha:e #een o#liged to 7eep #6 him for ans5ering o,,asional demands@ and that% ,onseH entl6% the paper mone6% 5hi,h the6 had ,ir, lated #6 his means% had not at an6 time e8,eeded the H antit6 of gold and sil:er 5hi,h 5o ld ha:e ,ir, lated in the ,o ntr6 had there #een no paper mone60 The freH en,6% reg larit6% and amo nt of his repa6ments 5o ld s ffi,ientl6 demonstrate that the amo nt of their ad:an,es had at no time e8,eeded that part of his ,apital 5hi,h he 5o ld other5ise ha:e #een o#liged to 7eep #6 him nemplo6ed and in read6 mone6 for ans5ering o,,asional demands@ that is% for the p rpose of 7eeping the rest of his ,apital in ,onstant emplo6ment0 Bt is this part of his ,apital onl6 5hi,h% 5ithin moderate periods of time% is ,ontin all6 ret rning to e:er6 dealer in the shape of mone6% 5hether paper or ,oin% and ,ontin all6 going from him in the same shape0 Bf the ad:an,es of the #an7 had ,ommonl6 e8,eeded this part of his ,apital% the ordinar6 amo nt of his repa6ments ,o ld not% 5ithin moderate periods of time% ha:e eH alled the ordinar6 amo nt of its ad:an,es0 The stream 5hi,h% #6 means of his dealings% 5as ,ontin all6 r nning into the ,offers of the #an7% ,o ld not ha:e #een eH al to the stream 5hi,h% #6 means of the same dealings% 5as ,ontin all6 r nning o t0 The ad:an,es of the #an7 paper% #6 e8,eeding the H antit6 of gold and sil:er 5hi,h% had there #een no s ,h ad:an,es% he 5o ld ha:e #een o#liged to 7eep #6 him for ans5ering o,,asional demands% might soon ,ome to e8,eed the 5hole H antit6 of gold and sil:er 5hi,h $the ,ommer,e #eing s pposed the same- 5o ld ha:e ,ir, lated in the ,o ntr6 had there #een no paper mone6@ and ,onseH entl6 to e8,eed the H antit6 5hi,h the ,ir, lation of the ,o ntr6 ,o ld easil6 a#sor# and emplo6@ and the e8,ess of this paper mone6 5o ld immediatel6 ha:e ret rned pon the #an7 in order to #e e8,hanged for gold and sil:er0 This se,ond ad:antage% tho gh eH all6 real% 5as not perhaps so 5ell nderstood #6 all the different #an7ing ,ompanies of S,otland as the first0 When% partl6 #6 the ,on:enien,6 of dis,o nting #ills% and partl6 #6 that of ,ash a,,o nts% the ,redita#le traders of an6 ,o ntr6 ,an #e dispensed from the ne,essit6 of 7eeping an6 part of their sto,7 #6 them nemplo6ed and in read6 mone6 for ans5ering o,,asional demands% the6 ,an reasona#l6 e8pe,t no farther assistan,e from #an7s and #an7ers% 5ho% 5hen the6 ha:e gone th s far% ,annot% ,onsistentl6 5ith their o5n interest and safet6% go farther0 A #an7 ,annot% ,onsistentl6 5ith its o5n interest% ad:an,e to a trader the 5hole or e:en the greater part of the ,ir, lating ,apital 5ith 5hi,h he trades@ #e,a se% tho gh that ,apital is ,ontin all6 ret rning to him in the shape of mone6% and going from him in the same shape% 6et the 5hole of the ret rns is too distant from the 5hole of the o tgoings% and the s m of his repa6ments ,o ld not eH al the s m of its ad:an,es 5ithin s ,h moderate periods of time as s it the ,on:enien,6 of a #an70 Still less% ,o ld a #an7 afford to ad:an,e him an6 ,onsidera#le part of his fi8ed ,apital@ of the ,apital 5hi,h the nderta7er of an iron forge% for e8ample% emplo6s in ere,ting his forge and smelting-ho se% his 5or7ho ses and 5areho ses% the d5elling-ho ses of his 5or7men% et,0@ of the ,apital 5hi,h the nderta7er of a mine emplo6s in sin7ing his shafts% in ere,ting engines for dra5ing o t the 5ater% in ma7ing roads and 5aggon-5a6s% et,0@ of the ,apital 5hi,h the person 5ho nderta7es to impro:e land emplo6s in ,learing% draining% en,losing% man ring% and plo ghing 5aste and n, lti:ated fields% in # ilding farm-ho ses% 5ith all their ne,essar6 appendages of sta#les% granaries% et,0 The ret rns of the fi8ed ,apital are in almost all ,ases m ,h slo5er than those of the ,ir, lating ,apital@ and s ,h e8penses% e:en 5hen laid o t 5ith the greatest pr den,e and E dgment% :er6 seldom ret rn to the nderta7er till after a period of man6 6ears% a period #6 far too distant to s it the ,on:enien,6 of a #an70 Traders and other nderta7ers ma6% no do #t% 5ith great propriet6% ,arr6 on a :er6 ,onsidera#le part of their proEe,ts 5ith #orro5ed mone60 Bn E sti,e to their ,reditors% ho5e:er% their o5n ,apital o ght% in this ,ase% to #e s ffi,ient to ens re% if B ma6 sa6 so% the ,apital of those ,reditors@ or to render it e8tremel6 impro#a#le that those ,reditors sho ld in, r an6 loss% e:en tho gh the s ,,ess of the proEe,t sho ld fall :er6 m ,h short of the e8pe,tation of the proEe,tors0 E:en 5ith this pre,a tion too% the mone6 5hi,h is #orro5ed% and 5hi,h it is meant sho ld not #e repaid till after a period of se:eral 6ears% o ght not to #e #orro5ed of a #an7% # t o ght to #e #orro5ed pon #ond or mortgage of s ,h pri:ate people as propose to li:e pon the interest of their mone6 5itho t ta7ing the tro #le themsel:es to emplo6 the ,apital% and 5ho are pon that a,,o nt 5illing to lend that ,apital to s ,h people of good ,redit as are li7el6 to 7eep it for se:eral 6ears0 A #an7% indeed% 5hi,h lends its mone6 5itho t the e8pense of stamped paper% or of attorne6s< fees for dra5ing #onds and mortgages% and 5hi,h a,,epts of repa6ment pon the eas6 terms of the #an7ing ,ompanies of S,otland% 5o ld% no do #t% #e a :er6 ,on:enient ,reditor to s ,h traders and nderta7ers0 3 t s ,h traders and nderta7ers 5o ld% s rel6% #e most in,on:enient de#tors to s ,h a #an70 Bt is no5 more than fi:e-and-t5ent6 6ears sin,e the paper mone6 iss ed #6 the different #an7ing ,ompanies of S,otland 5as f ll6 eH al% or rather 5as some5hat more than f ll6 eH al% to 5hat the ,ir, lation of the ,o ntr6 ,o ld easil6 a#sor# and emplo60 Those ,ompanies% therefore% had so long ago gi:en all the assistan,e to the traders and other nderta7ers of S,otland 5hi,h it is possi#le for #an7s and #an7ers% ,onsistentl6 5ith their o5n interest% to gi:e0 The6 had e:en done some5hat more0 The6 had o:ertraded a little% and had #ro ght pon themsel:es that loss% or at least that dimin tion of profit% 5hi,h in this parti, lar # siness ne:er fails to attend the smallest degree of o:ertrading0 Those traders and other nderta7ers% ha:ing got so m ,h assistan,e from #an7s and #an7ers% 5ished to get still more0 The #an7s% the6 seem to ha:e tho ght% ,o ld e8tend their ,redits to 5hate:er s m might #e 5anted% 5itho t in, rring an6 other e8pense #esides that of a fe5 reams of paper0 The6 ,omplained of the ,ontra,ted :ie5s and dastardl6 spirit of the dire,tors of those #an7s% 5hi,h did not% the6 said% e8tend their ,redits in proportion to the e8tension of the trade of the ,o ntr6@ meaning% no do #t% #6 the e8tension of that trade the e8tension of their o5n proEe,ts #e6ond 5hat the6 ,o ld ,arr6 on% either 5ith their o5n ,apital%

or 5ith 5hat the6 had ,redit to #orro5 of pri:ate people in the s al 5a6 of #ond or mortgage0 The #an7s% the6 seem to ha:e tho ght% 5ere in hono r #o nd to s ppl6 the defi,ien,6% and to pro:ide them 5ith all the ,apital 5hi,h the6 5anted to trade 5ith0 The #an7s% ho5e:er% 5ere of a different opinion% and pon their ref sing to e8tend their ,redits% some of those traders had re,o rse to an e8pedient 5hi,h% for a time% ser:ed their p rpose% tho gh at a m ,h greater e8pense% 6et as effe,t all6 as the tmost e8tension of #an7 ,redits ,o ld ha:e done0 This e8pedient 5as no other than the 5ell-7no5n shift of dra5ing and redra5ing@ the shift to 5hi,h nfort nate traders ha:e sometimes re,o rse 5hen the6 are pon the #rin7 of #an7r pt,60 The pra,ti,e of raising mone6 in this manner had #een long 7no5n in England% and d ring the ,o rse of the late 5ar% 5hen the high profits of trade afforded a great temptation to o:ertrading% is said to ha:e ,arried on to a :er6 great e8tent0 2rom England it 5as #ro ght into S,otland% 5here% in proportion to the :er6 limited ,ommer,e% and to the :er6 moderate ,apital of the ,o ntr6% it 5as soon ,arried on to a m ,h greater e8tent than it e:er had #een in England0 The pra,ti,e of dra5ing and redra5ing is so 5ell 7no5n to all men of # siness that it ma6 perhaps #e tho ght nne,essar6 to gi:e an a,,o nt of it0 3 t as this #oo7 ma6 ,ome into the hands of man6 people 5ho are not men of # siness% and as the effe,ts of this pra,ti,e pon the #an7ing trade are not perhaps generall6 nderstood e:en #6 men of # siness themsel:es% B shall endea:o r to e8plain it as distin,tl6 as B ,an0 The , stoms of mer,hants% 5hi,h 5ere esta#lished 5hen the #ar#aro s la5s of E rope did not enfor,e the performan,e of their ,ontra,ts% and 5hi,h d ring the ,o rse of the t5o last ,ent ries ha:e #een adopted into the la5s of all E ropean nations% ha:e gi:en s ,h e8traordinar6 pri:ileges to #ills of e8,hange that mone6 is more readil6 ad:an,ed pon them than pon an6 other spe,ies of o#ligation% espe,iall6 5hen the6 are made pa6a#le 5ithin so short a period as t5o or three months after their date0 Bf% 5hen the #ill #e,omes d e% the a,,eptor does not pa6 it as soon as it is presented% he #e,omes from that moment a #an7r pt0 The #ill is protested% and ret rns pon the dra5er% 5ho% if he does not immediatel6 pa6 it% #e,omes li7e5ise a #an7r pt0 Bf% #efore it ,ame to the person 5ho presents it to the a,,eptor for pa6ment% it had passed thro gh the hands of se:eral other persons% 5ho had s ,,essi:el6 ad:an,ed to one another the ,ontents of it either in mone6 or goods% and 5ho to e8press that ea,h of them had in his t rn re,ei:ed those ,ontents% had all of them in their order endorsed% that is% 5ritten their names pon the #a,7 of the #ill@ ea,h endorser #e,omes in his t rn lia#le to the o5ner of the #ill for those ,ontents% and% if he fails to pa6% he #e,omes too from that moment a #an7r pt0 Tho gh the dra5er% a,,eptor% and endorsers of the #ill sho ld% all of them% #e persons of do #tf l ,redit@ 6et still the shortness of the date gi:es some se, rit6 to the o5ner of the #ill0 Tho gh all of them ma6 #e :er6 li7el6 to #e,ome #an7r pts% it is a ,han,e if the6 all #e,ome so in so short a time0 The ho se is ,ra"6% sa6s a 5ear6 tra:eller to himself% and 5ill not stand :er6 long@ # t it is a ,han,e if it falls to-night% and B 5ill :ent re% therefore% to sleep in it to-night0 The trader A in Edin# rgh% 5e shall s ppose% dra5s a #ill pon 3 in 1ondon% pa6a#le t5o months after date0 Bn realit6 3 in 1ondon o5es nothing to A in Edin# rgh@ # t he agrees to a,,ept of A<s #ill% pon ,ondition that #efore the term of pa6ment he shall redra5 pon A in Edin# rgh for the same s m% together 5ith the interest and a ,ommission% another #ill% pa6a#le li7e5ise t5o months after date0 3 a,,ordingl6% #efore the e8piration of the first t5o months% redra5s this #ill pon A in Edin# rgh@ 5ho again% #efore the e8piration of the se,ond t5o months% dra5s a se,ond #ill pon 3 in 1ondon% pa6a#le li7e5ise t5o months after date@ and #efore the e8piration of the third t5o months% 3 in 1ondon redra5s pon A in Edin# rgh another #ill% pa6a#le also t5o months after date0 This pra,ti,e has sometimes gone on% not onl6 for se:eral months% # t for se:eral 6ears together% the #ill al5a6s ret rning pon A in Edin# rgh% 5ith the a,, m lated interest and ,ommission of all the former #ills0 The interest 5as fi:e per ,ent in the 6ear% and the ,ommission 5as ne:er less than one half per ,ent on ea,h draft0 This ,ommission #eing repeated more than si8 times in the 6ear% 5hate:er mone6 A might raise #6 this e8pedient m st ne,essaril6 ha:e% ,ost him something more than eight per ,ent in the 6ear% and sometimes a great deal more@ 5hen either the pri,e of the ,ommission happened to rise% or 5hen he 5as o#liged to pa6 ,ompo nd interest pon the interest and ,ommission of former #ills0 This pra,ti,e 5as ,alled raising mone6 #6 ,ir, lation0 Bn a ,o ntr6 5here the ordinar6 profits of sto,7 in the greater part of mer,antile proEe,ts are s pposed to r n #et5een si8 and ten per ,ent% it m st ha:e #een a :er6 fort nate spe, lation of 5hi,h the ret rns ,o ld not onl6 repa6 the enormo s e8pense at 5hi,h the mone6 5as th s #orro5ed for ,arr6ing it on@ # t afford% #esides% a good s rpl s profit to the proEe,tor0 +an6 :ast and e8tensi:e proEe,ts% ho5e:er% 5ere nderta7en% and for se:eral 6ears ,arried on 5itho t an6 other f nd to s pport them #esides 5hat 5as raised at this enormo s e8pense0 The proEe,tors% no do #t% had in their golden dreams the most distin,t :ision of this great profit0 Ipon their a5a7ing% ho5e:er% either at the end of their proEe,ts% or 5hen the6 5ere no longer a#le to ,arr6 them on% the6 :er6 seldom% B #elie:e% had the good fort ne to find it0 The #ills A in Edin# rgh dre5 pon 3 in 1ondon% he reg larl6 dis,o nted t5o months #efore the6 5ere d e 5ith some #an7 or #an7er in Edin# rgh@ and the #ills 5hi,h 3 in 1ondon redre5 pon A in Edin# rgh% he as reg larl6 dis,o nted either 5ith the 3an7 of England% or 5ith some other #an7ers in 1ondon0 Whate:er 5as ad:an,ed pon s ,h ,ir, lating #ills% 5as% in Edin# rgh% ad:an,ed in the paper of the S,ot,h #an7s% and in 1ondon% 5hen the6 5ere dis,o nted at the 3an7 of England% in the paper of that #an70 Tho gh the #ills pon 5hi,h this paper had #een ad:an,ed 5ere all of them repaid in their t rn as soon as the6 #e,ame d e@ 6et the :al e 5hi,h had #een reall6 ad:an,ed pon the first #ill% 5as ne:er reall6 ret rned to the #an7s 5hi,h ad:an,ed it@ #e,a se% #efore ea,h #ill #e,ame d e% another #ill 5as al5a6s dra5n to some5hat a greater amo nt than the #ill 5hi,h 5as soon to #e paid@ and the dis,o nting of this other #ill 5as essentiall6 ne,essar6 to5ards the pa6ment of that 5hi,h 5as soon to #e d e0 This pa6ment% therefore% 5as

altogether fi,titio s0 The stream% 5hi,h% #6 means of those ,ir, lating #ills of e8,hange% had on,e #een made to r n o t from the ,offers of the #an7s% 5as ne:er repla,ed #6 an6 stream 5hi,h reall6 r n into them0 The paper 5hi,h 5as iss ed pon those ,ir, lating #ills of e8,hange% amo nted% pon man6 o,,asions% to the 5hole f nd destined for ,arr6ing on some :ast and e8tensi:e proEe,t of agri, lt re% ,ommer,e% or man fa,t res@ and not merel6 to that part of it 5hi,h% had there #een no paper mone6% the proEe,tor 5o ld ha:e #een o#liged to 7eep #6 him% nemplo6ed and in read6 mone6 for ans5ering o,,asional demands0 The greater part of this paper 5as% ,onseH entl6% o:er and a#o:e the :al e of the gold and sil:er 5hi,h 5o ld ha:e ,ir, lated in the ,o ntr6% had there #een no paper mone60 Bt 5as o:er and a#o:e% therefore% 5hat the ,ir, lation of the ,o ntr6 ,o ld easil6 a#sor# and emplo6% and pon that a,,o nt% immediatel6 ret rned pon the #an7s in order to #e e8,hanged for gold and sil:er% 5hi,h the6 5ere to find as the6 ,o ld0 Bt 5as a ,apital 5hi,h those proEe,tors had :er6 artf ll6 ,ontri:ed to dra5 from those #an7s% not onl6 5itho t their 7no5ledge or deli#erate ,onsent% # t for some time% perhaps% 5itho t their ha:ing the most distant s spi,ion that the6 had reall6 ad:an,ed it0 When t5o people% 5ho are ,ontin all6 dra5ing and redra5ing pon one another% dis,o nt their #ills al5a6s 5ith the same #an7er% he m st immediatel6 dis,o:er 5hat the6 are a#o t% and see ,learl6 that the6 are trading% not 5ith an6 ,apital of their o5n% # t 5ith the ,apital 5hi,h he ad:an,es to them0 3 t this dis,o:er6 is not altogether so eas6 5hen the6 dis,o nt their #ills sometimes 5ith one #an7er% and sometimes 5ith another% and 5hen the same t5o persons do not ,onstantl6 dra5 and redra5 pon one another% # t o,,asionall6 r n the ro nd of a great ,ir,le of proEe,tors% 5ho find it for their interest to assist one another in this method of raising mone6% and to render it% pon that a,,o nt% as diffi, lt as possi#le to disting ish #et5een a real and fi,titio s #ill of e8,hange@ #et5een a #ill dra5n #6 a real ,reditor pon a real de#tor% and a #ill for 5hi,h there 5as properl6 no real ,reditor # t the #an7 5hi,h dis,o nted it% nor an6 real de#tor # t the proEe,tor 5ho made se of the mone60 When a #an7er had e:en made this dis,o:er6% he might sometimes ma7e it too late% and might find that he had alread6 dis,o nted the #ills of those proEe,tors to so great an e8tent that% #6 ref sing to dis,o nt an6 more% he 5o ld ne,essaril6 ma7e them all #an7r pts% and th s% #6 r ining them% might perhaps r in himself0 2or his o5n interest and safet6% therefore% he might find it ne,essar6% in this :er6 perilo s sit ation% to go on for some time% endea:o ring% ho5e:er% to 5ithdra5 grad all6% and pon that a,,o nt ma7ing e:er6 da6 greater and greater diffi, lties a#o t dis,o nting% in order to for,e those proEe,tors #6 degrees to ha:e re,o rse% either to other #an7ers% or to other methods of raising mone6@ so that he himself might% as soon as possi#le% get o t of the ,ir,le0 The diffi, lties% a,,ordingl6% 5hi,h the 3an7 of England% 5hi,h the prin,ipal #an7ers in 1ondon% and 5hi,h e:en the more pr dent S,ot,h #an7s #egan% after a ,ertain time% and 5hen all of them had alread6 gone too far% to ma7e a#o t dis,o nting% not onl6 alarmed% # t enraged in the highest degree those proEe,tors0 Their o5n distress% of 5hi,h this pr dent and ne,essar6 reser:e of the #an7s 5as% no do #t% the immediate o,,asion% the6 ,alled the distress of the ,o ntr6@ and this distress of the ,o ntr6% the6 said% 5as altogether o5ing to the ignoran,e% p sillanimit6% and #ad ,ond ,t of the #an7s% 5hi,h did not gi:e a s ffi,ientl6 li#eral aid to the spirited nderta7ings of those 5ho e8erted themsel:es in order to #ea tif6% impro:e% and enri,h the ,o ntr60 Bt 5as the d t6 of the #an7s% the6 seemed to thin7% to lend for as long a time% and to as great an e8tent as the6 might 5ish to #orro50 The #an7s% ho5e:er% #6 ref sing in this manner to gi:e more ,redit to those to 5hom the6 had alread6 gi:en a great deal too m ,h% too7 the onl6 method #6 5hi,h it 5as no5 possi#le to sa:e either their o5n ,redit or the p #li, ,redit of the ,o ntr60 Bn the midst of this ,lamo r and distress% a ne5 #an7 5as esta#lished in S,otland for the e8press p rpose of relie:ing the distress of the ,o ntr60 The design 5as genero s@ # t the e8e, tion 5as impr dent% and the nat re and ,a ses of the distress 5hi,h it meant to relie:e 5ere not% perhaps% 5ell nderstood0 This #an7 5as more li#eral than an6 other had e:er #een% #oth in granting ,ash a,,o nts% and in dis,o nting #ills of e8,hange0 With regard to the latter% it seems to ha:e made s,ar,e an6 distin,tion #et5een real and ,ir, lating #ills% # t to ha:e dis,o nted all eH all60 Bt 5as the a:o5ed prin,iple of this #an7 to ad:an,e% pon an6 reasona#le se, rit6% the 5hole ,apital 5hi,h 5as to #e emplo6ed in those impro:ements of 5hi,h the ret rns are the most slo5 and distant% s ,h as the impro:ements of land0 To promote s ,h impro:ements 5as e:en said to #e the ,hief of the p #li,-spirited p rposes for 5hi,h it 5as instit ted0 36 its li#eralit6 in granting ,ash a,,o nts% and in dis,o nting #ills of e8,hange% it% no do #t% iss ed great H antities of its #an7 notes0 3 t those #an7 notes #eing% the greater part of them% o:er and a#o:e 5hat the ,ir, lation of the ,o ntr6 ,o ld easil6 a#sor# and emplo6% ret rned pon it% in order to #e e8,hanged for gold and sil:er as fast as the6 5ere iss ed0 Bts ,offers 5ere ne:er 5ell filled0 The ,apital 5hi,h had #een s #s,ri#ed to this #an7 at t5o different s #s,riptions% amo nted to one h ndred and si8t6 tho sand po nds% of 5hi,h eight6 per ,ent onl6 5as paid p0 This s m o ght to ha:e #een paid in at se:eral different instalments0 A great part of the proprietors% 5hen the6 paid in their first instalment% opened a ,ash a,,o nt 5ith the #an7@ and the dire,tors% thin7ing themsel:es o#liged to treat their o5n proprietors 5ith the same li#eralit6 5ith 5hi,h the6 treated all other men% allo5ed man6 of them to #orro5 pon this ,ash a,,o nt 5hat the6 paid in pon all their s #seH ent instalments0 S ,h pa6ments% therefore% onl6 p t into one ,offer 5hat had the moment #efore #een ta7en o t of another0 3 t had the ,offers of this #an7 #een filled e:er so 5ell% its e8,essi:e ,ir, lation m st ha:e emptied them faster than the6 ,o ld ha:e #een replenished #6 an6 other e8pedient # t the r ino s one of dra5ing pon 1ondon% and 5hen the #ill #e,ame d e% pa6ing it% together 5ith interest and ,ommission% #6 another draft pon the same pla,e0 Bts ,offers ha:ing #een filled so :er6 ill% it is said to ha:e #een dri:en to this reso r,e 5ithin a :er6 fe5 months after it #egan to do # siness0 The estates of the proprietors of this #an7 5ere 5orth se:eral millions% and #6 their s #s,ription to the original #ond or ,ontra,t of the #an7% 5ere reall6 pledged for ans5ering all its engagements0 36 means of the great ,redit 5hi,h so great a pledge ne,essaril6 ga:e it% it 5as% not5ithstanding its too li#eral ,ond ,t% ena#led to ,arr6 on # siness for more than t5o 6ears0 When it 5as o#liged to stop% it had in the ,ir, lation a#o t t5o h ndred tho sand po nds in #an7 notes0 Bn order to s pport the ,ir, lation of those notes 5hi,h 5ere ,ontin all6 ret rning pon it as fast the6 5ere iss ed% it had #een ,onstantl6 in the pra,ti,e of dra5ing #ills of e8,hange pon 1ondon% of 5hi,h

the n m#er and :al e 5ere ,ontin all6 in,reasing% and% 5hen it stopped% amo nted to p5ards of si8 h ndred tho sand po nds0 This #an7% therefore% had% in little more than the ,o rse of t5o 6ears% ad:an,ed to different people p5ards of eight h ndred tho sand po nds at fi:e per ,ent0 Ipon the t5o h ndred tho sand po nds 5hi,h it ,ir, lated in #an7 notes% this fi:e per ,ent might% perhaps% #e ,onsidered as ,lear gain% 5itho t an6 other ded ,tion #esides the e8pense of management0 3 t pon p5ards of si8 h ndred tho sand po nds% for 5hi,h it 5as ,ontin all6 dra5ing #ills of e8,hange pon 1ondon% it 5as pa6ing% in the 5a6 of interest and ,ommission% p5ards of eight per ,ent% and 5as ,onseH entl6 losing more than three per ,ent pon more than three-fo rths of all its dealings0 The operations of this #an7 seem to ha:e prod ,ed effe,ts H ite opposite to those 5hi,h 5ere intended #6 the parti, lar persons 5ho planned and dire,ted it0 The6 seem to ha:e intended to s pport the spirited nderta7ings% for as s ,h the6 ,onsidered them% 5hi,h 5ere at that time ,arr6ing on in different parts of the ,o ntr6@ and at the same time% #6 dra5ing the 5hole #an7ing # siness to themsel:es% to s pplant all the other S,ot,h #an7s% parti, larl6 those esta#lished in Edin# rgh% 5hose #a,75ardness in dis,o nting #ills of e8,hange had gi:en some offen,e0 This #an7% no do #t% ga:e some temporar6 relief to those proEe,tors% and ena#led them to ,arr6 on their proEe,ts for a#o t t5o 6ears longer than the6 ,o ld other5ise ha:e done0 3 t it there#6 onl6 ena#led them to get so m ,h deeper into de#t% so that% 5hen r in ,ame% it fell so m ,h the hea:ier #oth pon them and pon their ,reditors0 The operations of this #an7% therefore% instead of relie:ing% in realit6 aggra:ated in the long-r n the distress 5hi,h those proEe,tors had #ro ght #oth pon themsel:es and pon their ,o ntr60 Bt 5o ld ha:e #een m ,h #etter for themsel:es% their ,reditors% and their ,o ntr6% had the greater part of them #een o#liged to stop t5o 6ears sooner than the6 a,t all6 did0 The temporar6 relief% ho5e:er% 5hi,h this #an7 afforded to those proEe,tors% pro:ed a real and permanent relief to the other S,ot,h #an7s0 All the dealers in ,ir, lating #ills of e8,hange% 5hi,h those other #an7s had #e,ome so #a,75ard in dis,o nting% had re,o rse to this ne5 #an7% 5here the6 5ere re,ei:ed 5ith open arms0 Those other #an7s% therefore% 5ere ena#led to get :er6 easil6 o t of that fatal ,ir,le% from 5hi,h the6 ,o ld not other5ise ha:e disengaged themsel:es 5itho t in, rring a ,onsidera#le loss% and perhaps too e:en some degree of dis,redit0 Bn the long-r n% therefore% the operations of this #an7 in,reased the real distress of the ,o ntr6 5hi,h it meant to relie:e@ and effe,t all6 relie:ed from a :er6 great distress those ri:als 5hom it meant to s pplant0 At the first setting o t of this #an7% it 5as the opinion of some people that ho5 fast soe:er its ,offers might #e emptied% it might easil6 replenish them #6 raising mone6 pon the se, rities of those to 5hom it had ad:an,ed its paper0 E8perien,e% B #elie:e% soon ,on:in,ed them that this method of raising mone6 5as #6 m ,h too slo5 to ans5er their p rpose@ and that ,offers 5hi,h originall6 5ere so ill filled% and 5hi,h emptied themsel:es so :er6 fast% ,o ld #e replenished #6 no other e8pedient # t the r ino s one of dra5ing #ills pon 1ondon% and 5hen the6 #e,ame d e% pa6ing them #6 other drafts pon the same pla,e 5ith a,, m lated interest and ,ommission0 3 t tho gh the6 had #een a#le #6 this method to raise mone6 as fast as the6 5anted it% 6et% instead of ma7ing a profit% the6 m st ha:e s ffered a loss #6 e:er6 s ,h operation@ so that in the long-r n the6 m st ha:e r ined themsel:es as a mer,antile ,ompan6% tho gh% perhaps% not so soon as #6 the more e8pensi:e pra,ti,e of dra5ing and redra5ing0 The6 ,o ld still ha:e made nothing #6 the interest of the paper% 5hi,h% #eing o:er and a#o:e 5hat the ,ir, lation of the ,o ntr6 ,o ld a#sor# and emplo6% ret rned pon them% in order to #e e8,hanged for gold and sil:er% as fast as the6 iss ed it@ and for the pa6ment of 5hi,h the6 5ere themsel:es ,ontin all6 o#liged to #orro5 mone60 Gn the ,ontrar6% the 5hole e8pense of this #orro5ing% of emplo6ing agents to loo7 o t for people 5ho had mone6 to lend% of negotiating 5ith those people% and of dra5ing the proper #ond or assignment% m st ha:e fallen pon them% and ha:e #een so m ,h ,lear loss pon the #alan,e of their a,,o nts0 The proEe,t of replenishing their ,offers in this manner ma6 #e ,ompared to that of a man 5ho had a 5ater-pond from 5hi,h a stream 5as ,ontin all6 r nning o t% and into 5hi,h no stream 5as ,ontin all6 r nning% # t 5ho proposed to 7eep it al5a6s eH all6 f ll #6 emplo6ing a n m#er of people to go ,ontin all6 5ith # ,7ets to a 5ell at some miles distan,e in order to #ring 5ater to replenish it0 3 t tho gh this operation had pro:ed not onl6 pra,ti,a#le # t profita#le to the #an7 as a mer,antile ,ompan6% 6et the ,o ntr6 ,o ld ha:e deri:ed no #enefit from it@ # t% on the ,ontrar6% m st ha:e s ffered a :er6 ,onsidera#le loss #6 it0 This operation ,o ld not a gment in the smallest degree the H antit6 of mone6 to #e lent0 Bt ,o ld onl6 ha:e ere,ted this #an7 into a sort of general loan offi,e for the 5hole ,o ntr60 Those 5ho 5anted to #orro5 m st ha:e applied to this #an7 instead of appl6ing to the pri:ate persons 5ho had lent it their mone60 3 t a #an7 5hi,h lends mone6 perhaps to fi:e h ndred different people% the greater part of 5hom its dire,tors ,an 7no5 :er6 little a#o t% is not li7el6 to #e more E di,io s in the ,hoi,e of its de#tors than a pri:ate person 5ho lends o t his mone6 among a fe5 people 5hom he 7no5s% and in 5hose so#er and fr gal ,ond ,t he thin7s he has good reason to ,onfide0 The de#tors of s ,h a #an7 as that 5hose ,ond ,t B ha:e #een gi:ing some a,,o nt of 5ere li7el6% the greater part of them% to #e ,himeri,al proEe,tors% the dra5ers and re-dra5ers of ,ir, lating #ills of e8,hange% 5ho 5o ld emplo6 the mone6 in e8tra:agant nderta7ings% 5hi,h% 5ith all the assistan,e that ,o ld #e gi:en them% the6 5o ld pro#a#l6 ne:er #e a#le to ,omplete% and 5hi,h% if the6 sho ld #e ,ompleted% 5o ld ne:er repa6 the e8pense 5hi,h the6 had reall6 ,ost% 5o ld ne:er afford a f nd ,apa#le of maintaining a H antit6 of la#o r eH al to that 5hi,h had #een emplo6ed a#o t them0 The so#er and fr gal de#tors of pri:ate persons% on the ,ontrar6% 5o ld #e more li7el6 to emplo6 the mone6 #orro5ed in so#er nderta7ings 5hi,h 5ere proportioned to their ,apitals% and 5hi,h% tho gh the6 might ha:e less of the grand and the mar:ello s% 5o ld ha:e more of the solid and the profita#le% 5hi,h 5o ld repa6 5ith a large profit 5hate:er had #een laid o t pon them% and 5hi,h 5o ld th s afford a f nd ,apa#le of maintaining a m ,h greater H antit6 of la#o r than that 5hi,h had #een emplo6ed a#o t them0 The s ,,ess of this operation% therefore% 5itho t in,reasing in the smallest degree the ,apital of the ,o ntr6% 5o ld onl6 ha:e transferred a great part of it from pr dent and profita#le to impr dent and nprofita#le nderta7ings0

That the ind str6 of S,otland lang ished for 5ant of mone6 to emplo6 it 5as the opinion of the famo s +r0 1a50 36 esta#lishing a #an7 of a parti, lar 7ind% 5hi,h he seems to ha:e imagined might iss e paper to the amo nt of the 5hole :al e of all the lands in the ,o ntr6% he proposed to remed6 this 5ant of mone60 The =arliament of S,otland% 5hen he first proposed his proEe,t% did not thin7 proper to adopt it0 Bt 5as after5ards adopted% 5ith some :ariations% #6 the F 7e of Grleans% at that time Regent of 2ran,e0 The idea of the possi#ilit6 of m ltipl6ing paper to almost an6 e8tent 5as the real fo ndation of 5hat is ,alled the +ississippi s,heme% the most e8tra:agant proEe,t #oth of #an7ing and sto,7-Eo##ing that% perhaps% the 5orld e:er sa50 The different operations of this s,heme are e8plained so f ll6% so ,learl6% and 5ith so m ,h order and distin,tness% #6 +r0 d 4erne6% in his E8amination of the =oliti,al Refle,tions pon Commer,e and 2inan,es of +r0 d Tot% that B shall not gi:e an6 a,,o nt of them0 The prin,iples pon 5hi,h it 5as fo nded are e8plained #6 +r0 1a5 himself% in a dis,o rse ,on,erning mone6 and trade% 5hi,h he p #lished in S,otland 5hen he first proposed his proEe,t0 The splendid # t :isionar6 ideas 5hi,h are set forth in that and some other 5or7s pon the same prin,iples still ,ontin e to ma7e an impression pon man6 people% and ha:e% perhaps% in part% ,ontri# ted to that e8,ess of #an7ing 5hi,h has of late #een ,omplained of #oth in S,otland and in other pla,es0 The Bank of $ngland is the greatest bank of circulation in $urope. %t was incorporated, in pursuance of an act of &arliament, by a charter under the 'reat (eal, dated the )*th of +uly, ,-./. %t at that time advanced to government the sum of one million two hundred thousand pounds, for an annuity of one hundred thousand pounds; or for 0.-,111 a year interest, at the rate of eight per cent, and 0/111 a year for the expense of management. The credit of the new government, established by the 2evolution, we may believe, must have been very low, when it was obliged to borrow at so high an interest. Bn 16/& the #an7 5as allo5ed to enlarge its ,apital sto,7 #6 an engraftment of 11%001%1&1 10s0 Bts 5hole ,apital sto,7 therefore% amo nted at this time to 1)%)01%1&1 10s0 This engraftment is said to ha:e #een for the s pport of p #li, ,redit0 Bn 16/6% tallies had #een at fort6% and fift6% and si8t6 per ,ent dis,o nt% and #an7 notes at t5ent6 per ,ent0 F ring the great re,oinage of the sil:er% 5hi,h 5as going on at this time% the #an7 had tho ght proper to dis,ontin e the pa6ment of its notes% 5hi,h ne,essaril6 o,,asioned their dis,redit0 Bn p rs an,e of the &th Anne% ,0 &% the #an7 ad:an,ed and paid into the e8,heH er the s m of 1*00%000@ ma7ing in all the s m of 11%600%000 5hi,h it had ad:an,ed pon its original ann it6 of 1/6%000 interest and 1*000 for e8pense of management0 Bn 1&09% therefore% the ,redit of go:ernment 5as as good as that of pri:ate persons% sin,e it ,o ld #orro5 at si8 per ,ent interest the ,ommon legal and mar7et rate of those times0 Bn p rs an,e of the same a,t% the #an7 ,an,elled e8,heH er #ills to the amo nt of 11%&&'%0)& 1&s0 10 1C)d0 at si8 per ,ent interest% and 5as at the same time allo5ed to ta7e in s #s,riptions for do #ling its ,apital0 Bn 1&09% therefore% the ,apital of the #an7 amo nted to 1*%*0)%3*3@ and it had ad:an,ed to go:ernment the s m of 13%3&'%0)& 1&s0 10 1C)d0 36 a ,all of fifteen per ,ent in 1&0/% there 5as paid in and made sto,7 16'6%)0* Bs0 /d0@ and #6 another of ten per ,ent in 1&10% 1'01%**9 1)s0 11d0 Bn ,onseH en,e of those t5o ,alls% therefore% the #an7 ,apital amo nted to 1'%''/%//' 1*s0 9d0 Bn p rs an,e of the 3rd George B% ,0 9% the #an7 deli:ered p t5o millions of e8,heH er #ills to #e ,an,elled0 Bt had at this time% therefore% ad:an,ed to go:ernment 1&s0 10d0 Bn p rs an,e of the 9th George 1% ,0 )1% the #an7 p r,hased of the So th Sea Compan6 sto,7 to the amo nt of 1*%000%000@ and in 1&))% in ,onseH en,e of the s #s,riptions 5hi,h it had ta7en in for ena#ling it to ma7e this p r,hase% its ,apital sto,7 5as in,reased #6 13%*00%0000 At this time% therefore% the #an7 had ad:an,ed to the p #li, 1/%3&'%0)& 1&s0 10 1C)d0@ and its ,apital sto,7 amo nted onl6 to 19%/'/%//' 1*s0 9d0 Bt 5as pon this o,,asion that the s m 5hi,h the #an7 had ad:an,ed to the p #li,% and for 5hi,h it re,ei:ed interest% #egan first to e8,eed its ,apital sto,7% or the s m for 5hi,h it paid a di:idend to the proprietors of #an7 sto,7@ or% in other 5ords% that the #an7 #egan to ha:e an ndi:ided ,apital% o:er and a#o:e its di:ided one0 Bt has ,ontin ed to ha:e an ndi:ided ,apital of the same 7ind e:er sin,e0 Bn 1&*6% the #an7 had% pon different o,,asions% ad:an,ed to the p #li, 111%696%900 and its di:ided ,apital had #een raised #6 different ,alls and s #s,riptions to 110%&90%0000 The state of those t5o s ms has ,ontin ed to #e the same e:er sin,e0 Bn p rs an,e of the *th of George BBB% ,0 )'% the #an7 agreed to pa6 to go:ernment for the rene5al of its ,harter 1110%000 5itho t interest or repa6ment0 This s m% therefore% did not in,rease either of those t5o other s ms0 The di:idend of the #an7 has :aried a,,ording to the :ariations in the rate of the interest 5hi,h it has% at different times% re,ei:ed for the mone6 it had ad:an,ed to the p #li,% as 5ell as a,,ording to other ,ir, mstan,es0 This rate of interest has grad all6 #een red ,ed from eight to three per ,ent0 2or some 6ears past the #an7 di:idend has #een at fi:e and a half per ,ent0 The stability of the Bank of $ngland is equal to that of the British government. 3ll that it has advanced to the public must be lost before its creditors can sustain any loss. 4o other banking company in $ngland can be established by act of &arliament, or can consist of more than six members. %t acts, not only as an ordinary bank, but as a great engine of state. %t receives and pays the greater part of the annuities which are due to the creditors of the public, it circulates exchequer bills, and it advances to government the annual amount of the land and malt taxes, which are frequently not paid up till some years thereafter. %n those different operations, its duty to the public may sometimes have obliged it, without any fault of its directors, to overstock the circulation with paper money. %t likewise discounts merchants5 bills, and has, upon several different occasions, supported the credit of the principal houses, not only of $ngland, but of 6amburg and 6olland. Ipon one o,,asion% in 1&63% it is said to ha:e ad:an,ed for this p rpose% in one 5ee7% a#o t 11%600%000% a great part of it in # llion0 B do not% ho5e:er% pretend to 5arrant either the

greatness of the s m% or the shortness of the time0 Ipon other o,,asions% this great ,ompan6 has #een red ,ed to the ne,essit6 of pa6ing in si8pen,es0 Bt is not #6 a gmenting the ,apital of the ,o ntr6% # t #6 rendering a greater part of that ,apital a,ti:e and prod ,ti:e than 5o ld other5ise #e so% that the most E di,io s operations of #an7ing ,an in,rease the ind str6 of the ,o ntr60 That part of his ,apital 5hi,h a dealer is o#liged to 7eep #6 him nemplo6ed% and in read6 mone6% for ans5ering o,,asional demands% is so m ,h dead sto,7% 5hi,h% so long as it remains in this sit ation% prod ,es nothing either to him or to his ,o ntr60 The E di,io s operations of #an7ing ena#le him to ,on:ert this dead sto,7 into a,ti:e and prod ,ti:e sto,7@ into materials to 5or7 pon% into tools to 5or7 5ith% and into pro:isions and s #sisten,e to 5or7 for@ into sto,7 5hi,h prod ,es something #oth to himself and to his ,o ntr60 The gold and sil:er mone6 5hi,h ,ir, lates in an6 ,o ntr6% and #6 means of 5hi,h the prod ,e of its land and la#o r is ann all6 ,ir, lated and distri# ted to the proper ,ons mers% is% in the same manner as the read6 mone6 of the dealer% all dead sto,70 Bt is a :er6 :al a#le part of the ,apital of the ,o ntr6% 5hi,h prod ,es nothing to the ,o ntr60 The E di,io s operations of #an7ing% #6 s #stit ting paper in the room of a great part of this gold and sil:er% ena#les the ,o ntr6 to ,on:ert a great part of this dead sto,7 into a,ti:e and prod ,ti:e sto,7@ into sto,7 5hi,h prod ,es something to the ,o ntr60 The gold and sil:er mone6 5hi,h ,ir, lates in an6 ,o ntr6 ma6 :er6 properl6 #e ,ompared to a high5a6% 5hi,h% 5hile it ,ir, lates and ,arries to mar7et all the grass and ,orn of the ,o ntr6% prod ,es itself not a single pile of either0 The E di,io s operations of #an7ing% #6 pro:iding% if B ma6 #e allo5ed so :iolent a metaphor% a sort of 5aggon-5a6 thro gh the air% ena#le the ,o ntr6 to ,on:ert% as it 5ere% a great part of its high5a6s into good past res and ,orn-fields% and there#6 to in,rease :er6 ,onsidera#l6 the ann al prod ,e of its land and la#o r0 The ,ommer,e and ind str6 of the ,o ntr6% ho5e:er% it m st #e a,7no5ledged% tho gh the6 ma6 #e some5hat a gmented% ,annot #e altogether so se, re 5hen the6 are th s% as it 5ere% s spended pon the Faedalian 5ings of paper mone6 as 5hen the6 tra:el a#o t pon the solid gro nd of gold and sil:er0 G:er and a#o:e the a,,idents to 5hi,h the6 are e8posed from the ns7illf lness of the ,ond ,tors of this paper mone6% the6 are lia#le to se:eral others% from 5hi,h no pr den,e or s7ill of those ,ond ,tors ,an g ard them0 3n unsuccessful war, for example, in which the enemy got possession of the capital, and consequently of that treasure which supported the credit of the paper money, would occasion a much greater confusion in a country where the whole circulation was carried on by paper, than in one where the greater part of it was carried on by gold and silver. The usual instrument of commerce having lost its value, no exchanges could be made but either by barter or upon credit. 3ll taxes having been usually paid in paper money, the prince would not have wherewithal either to pay his troops, or to furnish his maga7ines; and the state of the country would be much more irretrievable than if the greater part of its circulation had consisted in gold and silver. 3 prince, anxious to maintain his dominions at all times in the state in which he can most easily defend them, ought, upon this account, to guard, not only against that excessive multiplication of paper money which ruins the very banks which issue it; but even against that multiplication of it which enables them to fill the greater part of the circulation of the country with it. The ,ir, lation of e:er6 ,o ntr6 ma6 #e ,onsidered as di:ided into t5o different #ran,hes: the ,ir, lation of the dealers 5ith one another% and the ,ir, lation #et5een the dealers and the ,ons mers0 Tho gh the same pie,es of mone6% 5hether paper or metal% ma6 #e emplo6ed sometimes in the one ,ir, lation and sometimes in the other% 6et as #oth are ,onstantl6 going on at the same time% ea,h reH ires a ,ertain sto,7 of mone6 of one 7ind or another to ,arr6 it on0 The :al e of the goods ,ir, lated #et5een the different dealers% ne:er ,an e8,eed the :al e of those ,ir, lated #et5een the dealers and the ,ons mers@ 5hate:er is #o ght #6 the dealers% #eing ltimatel6 destined to #e sold to the ,ons mers0 The ,ir, lation #et5een the dealers% as it is ,arried on #6 5holesale% reH ires generall6 a prett6 large s m for e:er6 parti, lar transa,tion0 That #et5een the dealers and the ,ons mers% on the ,ontrar6% as it is generall6 ,arried on #6 retail% freH entl6 reH ires # t :er6 small ones% a shilling% or e:en a halfpenn6% #eing often s ffi,ient0 3 t small s ms ,ir, late m ,h faster than large ones0 A shilling ,hanges masters more freH entl6 than a g inea% and a halfpenn6 more freH entl6 than a shilling0 Tho gh the ann al p r,hases of all the ,ons mers% therefore% are at least eH al in :al e to those of all the dealers% the6 ,an generall6 #e transa,ted 5ith a m ,h smaller H antit6 of mone6@ the same pie,es% #6 a more rapid ,ir, lation% ser:ing as the instr ment of man6 more p r,hases of the one 7ind than of the other0 &aper money may be so regulated as either to confine itself very much to the circulation between the different dealers, or to extend itself likewise to a great part of that between the dealers and the consumers. here no bank notes are circulated under ten pounds value, as in 0ondon, paper money confines itself very much to the circulation between the dealers. When a ten po nd #an7 note ,omes into the hands of a ,ons mer% he is generall6 o#liged to ,hange it at the first shop 5here he has o,,asion to p r,hase fi:e shillings< 5orth of goods% so that it often ret rns into the hands of a dealer #efore the ,ons mer has spent the fortieth part of the mone60 Where #an7 notes are iss ed for so small s ms as t5ent6 shillings% as in S,otland% paper mone6 e8tends itself to a ,onsidera#le part of the ,ir, lation #et5een dealers and ,ons mers0 3efore the A,t of =arliament% 5hi,h p t a stop to the ,ir, lation of ten and fi:e shilling notes% it filled a still greater part of that ,ir, lation0 Bn the , rren,ies of ?orth Ameri,a% paper 5as ,ommonl6 iss ed for so small a s m as a shilling% and filled almost the 5hole of that ,ir, lation0 Bn some paper , rren,ies of Jor7shire% it 5as iss ed e:en for so small a s m as a si8pen,e0 Where the iss ing of #an7 notes for s ,h :er6 small s ms is allo5ed and ,ommonl6 pra,tised% man6 mean people are #oth ena#led and en,o raged to #e,ome #an7ers0 A person 5hose promissor6 note for fi:e po nds% or e:en for t5ent6 shillings% 5o ld #e reEe,ted #6 e:er6#od6% 5ill get it to #e re,ei:ed 5itho t s,r ple 5hen it is iss ed for so small a s m as a si8pen,e0 3 t the freH ent #an7r pt,ies

to 5hi,h s ,h #eggarl6 #an7ers m st #e lia#le ma6 o,,asion a :er6 ,onsidera#le in,on:enien,6% and sometimes e:en a :er6 great ,alamit6 to man6 poor people 5ho had re,ei:ed their notes in pa6ment0 Bt 5ere #etter% perhaps% that no #an7 notes 5ere iss ed in an6 part of the 7ingdom for a smaller s m than fi:e po nds0 =aper mone6 5o ld then% pro#a#l6% ,onfine itself% in e:er6 part of the 7ingdom% to the ,ir, lation #et5een the different dealers% as m ,h as it does at present in 1ondon% 5here no #an7 notes are iss ed nder ten po nds< :al e@ fi:e po nds #eing% in most parts of the 7ingdom% a s m 5hi,h% tho gh it 5ill p r,hase% little more than half the H antit6 of goods% is as m ,h ,onsidered% and is as seldom spent all at on,e% as ten po nds are amidst the prof se e8pense of 1ondon0 Where paper mone6% it is to #e o#ser:ed% is prett6 m ,h ,onfined to the ,ir, lation #et5een dealers and dealers% as at 1ondon% there is al5a6s plent6 of gold and sil:er0 Where it e8tends itself to a ,onsidera#le part of the ,ir, lation #et5een dealers and ,ons mers% as in S,otland% and still more in ?orth Ameri,a% it #anishes gold and sil:er almost entirel6 from the ,o ntr6@ almost all the ordinar6 transa,tions of its interior ,ommer,e #eing th s ,arried on #6 paper0 The s ppression of ten and fi:e shilling #an7 notes some5hat relie:ed the s,ar,it6 of gold and sil:er in S,otland@ and the s ppression of t5ent6 shilling notes 5o ld pro#a#l6 relie:e it still more0 Those metals are said to ha:e #e,ome more a# ndant in Ameri,a sin,e the s ppression of some of their paper , rren,ies0 The6 are said% li7e5ise% to ha:e #een more a# ndant #efore the instit tion of those , rren,ies0 Tho gh paper mone6 sho ld #e prett6 m ,h ,onfined to the ,ir, lation #et5een dealers and dealers% 6et #an7s and #an7ers might still #e a#le to gi:e nearl6 the same assistan,e to the ind str6 and ,ommer,e of the ,o ntr6 as the6 had done 5hen paper mone6 filled almost the 5hole ,ir, lation0 The read6 mone6 5hi,h a dealer is o#liged to 7eep #6 him% for ans5ering o,,asional demands% is destined altogether for the ,ir, lation #et5een himself and other dealers of 5hom he # 6s goods0 ;e has no o,,asion to 7eep an6 #6 him for the ,ir, lation #et5een himself and the ,ons mers% 5ho are his , stomers% and 5ho #ring read6 mone6 to him% instead of ta7ing an6 from him0 Tho gh no paper mone6% therefore% 5as allo5ed to #e iss ed # t for s ,h s ms as 5o ld ,onfine it prett6 m ,h to the ,ir, lation #et5een dealers and dealers% 6et% partl6 #6 dis,o nting real #ills of e8,hange% and partl6 #6 lending pon ,ash a,,o nts% #an7s and #an7ers might still #e a#le to relie:e the greater part of those dealers from the ne,essit6 of 7eeping an6 ,onsidera#le part of their sto,7 #6 them% nemplo6ed and in read6 mone6% for ans5ering o,,asional demands0 The6 might still #e a#le to gi:e the tmost assistan,e 5hi,h #an7s and #an7ers ,an% 5ith propriet6% gi:e to traders of e:er6 7ind0 To restrain pri:ate people% it ma6 #e said% from re,ei:ing in pa6ment the promissor6 notes of a #an7er% for an6 s m 5hether great or small% 5hen the6 themsel:es are 5illing to re,ei:e them% or to restrain a #an7er from iss ing s ,h notes% 5hen all his neigh#o rs are 5illing to a,,ept of them% is a manifest :iolation of that nat ral li#ert6 5hi,h it is the proper # siness of la5 not to infringe% # t to s pport0 S ,h reg lations ma6% no do #t% #e ,onsidered as in some respe,ts a :iolation of nat ral li#ert60 3 t those e8ertions of the nat ral li#ert6 of a fe5 indi:id als% 5hi,h might endanger the se, rit6 of the 5hole so,iet6% are% and o ght to #e% restrained #6 the la5s of all go:ernments% of the most free as 5ell as of the most despoti,al0 The o#ligation of # ilding part6 5alls% in order to pre:ent the ,omm ni,ation of fire% is a :iolation of nat ral li#ert6 e8a,tl6 of the same 7ind 5ith the reg lations of the #an7ing trade 5hi,h are here proposed0 A paper mone6 ,onsisting in #an7 notes% iss ed #6 people of ndo #ted ,redit% pa6a#le pon demand 5itho t an6 ,ondition% and in fa,t al5a6s readil6 paid as soon as presented% is% in e:er6 respe,t% eH al in :al e to gold and sil:er mone6@ sin,e gold and sil:er mone6 ,an at an6 time #e had for it0 Whate:er is either #o ght or sold for s ,h paper m st ne,essaril6 #e #o ght or sold as ,heap as it ,o ld ha:e #een for gold and sil:er0 The in,rease of paper mone6% it has #een said% #6 a gmenting the H antit6% and ,onseH entl6 diminishing the :al e of the 5hole , rren,6% ne,essaril6 a gments the mone6 pri,e of ,ommodities0 3 t as the H antit6 of gold and sil:er% 5hi,h is ta7en from the , rren,6% is al5a6s eH al to the H antit6 of paper 5hi,h is added to it% paper mone6 does not ne,essaril6 in,rease the H antit6 of the 5hole , rren,60 2rom the #eginning of the last ,ent r6 to the present time% pro:isions ne:er 5ere ,heaper in S,otland than in 1&'/% tho gh% from the ,ir, lation of ten and fi:e shilling #an7 notes% there 5as then more paper mone6 in the ,o ntr6 than at present0 The proportion #et5een the pri,e of pro:isions in S,otland and that in England is the same no5 as #efore the great m ltipli,ation of #an7ing ,ompanies in S,otland0 Corn is% pon most o,,asions% f ll6 as ,heap in England as in 2ran,e@ tho gh there is a great deal of paper mone6 in England% and s,ar,e an6 in 2ran,e0 Bn 1&'1 and in 1&')% 5hen +r0 ; me p #lished his =oliti,al Fis,o rses% and soon after the great m ltipli,ation of paper mone6 in S,otland% there 5as a :er6 sensi#le rise in the pri,e of pro:isions% o5ing% pro#a#l6% to the #adness of the seasons% and not to the m ltipli,ation of paper mone60 Bt 5o ld #e other5ise% indeed% 5ith a paper mone6 ,onsisting in promissor6 notes% of 5hi,h the immediate pa6ment depended% in an6 respe,t% either pon the good 5ill of those 5ho iss ed them% or pon a ,ondition 5hi,h the holder of the notes might not al5a6s ha:e it in his po5er to f lfil@ or of 5hi,h the pa6ment 5as not e8igi#le till after a ,ertain n m#er of 6ears% and 5hi,h in the meantime #ore no interest0 S ,h a paper mone6 5o ld% no do #t% fall more or less #elo5 the :al e of gold and sil:er% a,,ording as the diffi, lt6 or n,ertaint6 of o#taining immediate pa6ment 5as s pposed to #e greater or less@ or a,,ording to the greater or less distan,e of time at 5hi,h pa6ment 5as e8igi#le0

Some 6ears ago the different #an7ing ,ompanies of S,otland 5ere in the pra,ti,e of inserting into their #an7 notes% 5hat the6 ,alled an Gptional Cla se% #6 5hi,h the6 promised pa6ment to the #earer% either as soon as the note sho ld #e presented% or% in the option of the dire,tors% si8 months after s ,h presentment% together 5ith the legal interest for the said si8 months0 The dire,tors of some of those #an7s sometimes too7 ad:antage of this optional ,la se% and sometimes threatened those 5ho demanded gold and sil:er in e8,hange for a ,onsidera#le n m#er of their notes that the6 Wo ld ta7e ad:antage of it% nless s ,h demanders 5o ld ,ontent themsel:es 5ith a part of 5hat the6 demanded0 The promissor6 notes of those #an7ing ,ompanies ,onstit ted at that time the far greater part of the , rren,6 of S,otland% 5hi,h this n,ertaint6 of pa6ment ne,essaril6 degraded #elo5 the :al e of gold and sil:er mone60 F ring the ,ontin an,e of this a# se $5hi,h pre:ailed ,hiefl6 in 1&6)% 1&63% and 1&6*-% 5hile the e8,hange #et5een 1ondon and Carlisle 5as at par% that #et5een 1ondon and F mfries 5o ld sometimes #e fo r per ,ent against F mfries% tho gh this to5n is not thirt6 miles distant from Carlisle0 3 t at Carlisle% #ills 5ere paid in gold and sil:er@ 5hereas at F mfries the6 5ere paid in S,ot,h #an7 notes% and the n,ertaint6 of getting those #an7 notes e8,hanged for gold and sil:er ,oin had th s degraded them fo r per ,ent #elo5 the :al e of that ,oin0 The same A,t of =arliament 5hi,h s ppressed ten and fi:e shilling #an7 notes s ppressed li7e5ise this optional ,la se% and there#6 restored the e8,hange #et5een England and S,otland to its nat ral rate% or to 5hat the ,o rse of trade and remittan,es might happen to ma7e it0 Bn the paper , rren,ies of Jor7shire% the pa6ment of so small a s m as a si8pen,e sometimes depended pon the ,ondition that the holder of the note sho ld #ring the ,hange of a g inea to the person 5ho iss ed it@ a ,ondition 5hi,h the holders of s ,h notes might freH entl6 find it :er6 diffi, lt to f lfil% and 5hi,h m st ha:e degraded this , rren,6 #elo5 the :al e of gold and sil:er mone60 An A,t of =arliament a,,ordingl6 de,lared all s ,h ,la ses nla5f l% and s ppressed% in the same manner as in S,otland% all promissor6 notes% pa6a#le to the #earer% nder t5ent6 shillings :al e0 The paper , rren,ies of ?orth Ameri,a ,onsisted% not in #an7 notes pa6a#le to the #earer on demand% # t in go:ernment paper% of 5hi,h the pa6ment 5as not e8igi#le till se:eral 6ears after it 5as iss ed@ and tho gh the ,olon6 go:ernments paid no interest to the holders of this paper% the6 de,lared it to #e% and in fa,t rendered it% a legal tender of pa6ment for the f ll :al e for 5hi,h it 5as iss ed0 3 t allo5ing the ,olon6 se, rit6 to #e perfe,tl6 good% a h ndred po nds pa6a#le fifteen 6ears hen,e% for e8ample% in a ,o ntr6 5here interest at si8 per ,ent% is 5orth little more than fort6 po nds read6 mone60 To o#lige a ,reditor% therefore% to a,,ept of this as f ll pa6ment for a de#t of a h ndred po nds a,t all6 paid do5n in read6 mone6 5as an a,t of s ,h :iolent inE sti,e as has s,ar,e% perhaps% #een attempted #6 the go:ernment of an6 other ,o ntr6 5hi,h pretended to #e free0 Bt #ears the e:ident mar7s of ha:ing originall6 #een% 5hat the honest and do5nright Fo,tor Fo glas ass res s it 5as% a s,heme of fra d lent de#tors to ,heat their ,reditors0 The go:ernment of =enns6l:ania% indeed% pretended% pon their first emission of paper mone6% in 1&))% to render their paper of eH al :al e 5ith gold and sil:er #6 ena,ting penalties against all those 5ho made an6 differen,e in the pri,e of their goods 5hen the6 sold them for a ,olon6 paper% and 5hen the6 sold them for gold and sil:er@ a reg lation eH all6 t6ranni,al% # t m ,h less effe,t al than that 5hi,h it 5as meant to s pport0 A positi:e la5 ma6 render a shilling a legal tender for g inea% #e,a se it ma6 dire,t the ,o rts of E sti,e to dis,harge the de#tor 5ho has made that tender0 3 t no positi:e la5 ,an o#lige a person 5ho sells goods% and 5ho is at li#ert6 to sell or not to sell as he pleases% to a,,ept of a shilling as eH i:alent to a g inea in the pri,e of them0 ?ot5ithstanding an6 reg lation of this 7ind% it appeared #6 the ,o rse of e8,hange 5ith Great 3ritain% that a h ndred po nds sterling 5as o,,asionall6 ,onsidered as eH i:alent% in some of the ,olonies% to a h ndred and thirt6 po nds% and in others to so great a s m as ele:en h ndred po nds , rren,6@ this differen,e in the :al e arising from the differen,e in the H antit6 of paper emitted in the different ,olonies% and in the distan,e and pro#a#ilit6 of the term of its final dis,harge and redemption0 ?o la5% therefore% ,o ld #e more eH ita#le than the A,t of =arliament% so nE stl6 ,omplained of in the ,olonies% 5hi,h de,lared that no paper , rren,6 to #e emitted there in time ,oming sho ld #e a legal tender of pa6ment0 =enns6l:ania 5as al5a6s more moderate in its emissions of paper mone6 than an6 other of o r ,olonies0 Bts paper , rren,6% a,,ordingl6% is said ne:er to ha:e s n7 #elo5 the :al e of the gold and sil:er 5hi,h 5as , rrent in the ,olon6 #efore the first emission of its paper mone60 3efore that emission% the ,olon6 had raised the denomination of its ,oin% and had% #6 a,t of assem#l6% ordered fi:e shillings sterling to pass in the ,olon6 for si8 and threepen,e% and after5ards for si8 and eightpen,e0 A po nd ,olon6 , rren,6% therefore% e:en 5hen that , rren,6 5as gold and sil:er% 5as more than thirt6 per ,ent #elo5 the :al e of a po nd sterling% and 5hen that , rren,6 5as t rned into paper it 5as seldom m ,h more than thirt6 per ,ent #elo5 that :al e0 The preten,e for raising the denomination of the ,oin% 5as to pre:ent the e8portation of gold and sil:er% #6 ma7ing eH al H antities of those metals pass for greater s ms in the ,olon6 than the6 did in the mother ,o ntr60 Bt 5as fo nd% ho5e:er% that the pri,e of all goods from the mother ,o ntr6 rose e8a,tl6 in proportion as the6 raised the denomination of their ,oin% so that their gold and sil:er 5ere e8ported as fast as e:er0 The paper of ea,h ,olon6 #eing re,ei:ed in the pa6ment of the pro:in,ial ta8es% for the f ll :al e for 5hi,h it had #een iss ed% it ne,essaril6 deri:ed from this se some additional :al e o:er and a#o:e 5hat it 5o ld ha:e had from the real or s pposed distan,e of the term of its final dis,harge and redemption0 This additional :al e 5as greater or less% a,,ording as the H antit6 of paper iss ed 5as more or less a#o:e 5hat ,o ld #e emplo6ed in the pa6ment of the ta8es of the parti, lar ,olon6 5hi,h iss ed it0 Bt 5as in all the ,olonies :er6 m ,h a#o:e 5hat ,o ld #e emplo6ed in this manner0 A prin,e 5ho sho ld ena,t that a ,ertain proportion of his ta8es sho ld #e paid in a paper mone6 of a ,ertain 7ind might there#6 gi:e a ,ertain :al e to this paper mone6% e:en tho gh the term of its final dis,harge and redemption sho ld depend altogether pon the 5ill of

the prin,e0 Bf the #an7 5hi,h iss ed this paper 5as ,aref l to 7eep the H antit6 of it al5a6s some5hat #elo5 5hat ,o ld easil6 #e emplo6ed in this manner% the demand for it might #e s ,h as to ma7e it e:en #ear a premi m% or sell for some5hat more in the mar7et than the H antit6 of gold or sil:er , rren,6 for 5hi,h it 5as iss ed0 Some people a,,o nt in this manner for 5hat is ,alled the Agio of the #an7 of Amsterdam% or for the s periorit6 of #an7 mone6 o:er , rrent mone6@ tho gh this #an7 mone6% as the6 pretend% ,annot #e ta7en o t of the #an7 at the 5ill of the o5ner0 The greater part of foreign #ills of e8,hange m st #e paid in #an7 mone6% that is% #6 a transfer in the #oo7s of the #an7@ and the dire,tors of the #an7% the6 allege% are ,aref l to 7eep the 5hole H antit6 of #an7 mone6 al5a6s #elo5 5hat this se o,,asions a demand for0 Bt is pon this a,,o nt% the6 sa6% that #an7 mone6 sells for a premi m% or #ears an agio of fo r or fi:e per ,ent a#o:e the same nominal s m of the gold and sil:er , rren,6 of the ,o ntr60 This a,,o nt of the #an7 of Amsterdam% ho5e:er% it 5ill appear hereafter% is in a great meas re ,himeri,al0 A paper , rren,6 5hi,h falls #elo5 the :al e of gold and sil:er ,oin does not there#6 sin7 the :al e of those metals% or o,,asion eH al H antities of them to e8,hange for a smaller H antit6 of goods of an6 other 7ind0 The proportion #et5een the :al e of gold and sil:er and that of goods of an6 other 7ind depends in all ,ases not pon the nat re or H antit6 of an6 parti, lar paper mone6% 5hi,h ma6 #e , rrent in an6 parti, lar ,o ntr6% # t pon the ri,hness or po:ert6 of the mines% 5hi,h happen at an6 parti, lar time to s ppl6 the great mar7et of the ,ommer,ial 5orld 5ith those metals0 Bt depends pon the proportion #et5een the H antit6 of la#o r 5hi,h is ne,essar6 in order to #ring a ,ertain H antit6 of gold and sil:er to mar7et% and that 5hi,h is ne,essar6 in order to #ring thither a ,ertain H antit6 of an6 other sort of goods0 Bf #an7ers are restrained from iss ing an6 ,ir, lating #an7 notes% or notes pa6a#le to the #earer% for less than a ,ertain s m% and if the6 are s #Ee,ted to the o#ligation of an immediate and n,onditional pa6ment of s ,h #an7 notes as soon as presented% their trade ma6% 5ith safet6 to the p #li,% #e rendered in all other respe,ts perfe,tl6 free0 The late m ltipli,ation of #an7ing ,ompanies in #oth parts of the Inited Kingdom% an e:ent #6 5hi,h man6 people ha:e #een m ,h alarmed% instead of diminishing% in,reases the se, rit6 of the p #li,0 Bt o#liges all of them to #e more ,ir, mspe,t in their ,ond ,t% and% #6 not e8tending their , rren,6 #e6ond its d e proportion to their ,ash% to g ard themsel:es against those mali,io s r ns 5hi,h the ri:alship of so man6 ,ompetitors is al5a6s read6 to #ring pon them0 Bt restrains the ,ir, lation of ea,h parti, lar ,ompan6 5ithin a narro5er ,ir,le% and red ,es their ,ir, lating notes to a smaller n m#er0 36 di:iding the 5hole ,ir, lation into a greater n m#er of parts% the fail re of an6 one ,ompan6% an a,,ident 5hi,h% in the ,o rse of things% m st sometimes happen% #e,omes of less ,onseH en,e to the p #li,0 This free ,ompetition% too% o#liges all #an7ers to #e more li#eral in their dealings 5ith their , stomers% lest their ri:als sho ld ,arr6 them a5a60 Bn general% if an6 #ran,h of trade% or an6 di:ision of la#o r% #e ad:antageo s to the p #li,% the freer and more general the ,ompetition% it 5ill al5a6s #e the more so0

BThe 0ct of Pa!liament +y which the Bank was esta+lished is called B0n 0ct fo! g!anting to thei! "aKesties se3e!al )ates and 9$ties $2on T$nnages of Shi2s and Jessels, and $2on Bee!, 0le, and othe! Li,$o!sN fo! sec$!ing ce!tain )ecom2enses and 0d3antages, in the said 0ct mentioned, to s$ch 2e!sons as shall 3ol$nta!ily ad3ance the S$m of &ifteen h$nd!ed tho$sand Po$nds towa!ds ca!!ying on the wa! against &!ance.C 0fte! 3a!io$s a!ticles !efe!!ing to the im2osition of ta es, the 0ct a$tho!ised the !aising of O4,655,555 +y s$+sc!i2tion, the s$+sc!i+e!s fo!ming a co!2o!ation to +e called, BThe *o3e!no! and Com2any of the Bank of England.C (o 2e!son might s$+sc!i+e mo!e than O45,555 +efo!e the 4st of '$ly following, and e3en afte! this date no indi3id$al s$+sc!i2tion might e ceed O65,555. The co!2o!ation was to lend the whole of its ca2ital to the *o3e!nment, and in !et$!n it was to +e 2aid inte!est at the !ate of 7 2e! cent., and O=,555 fo! e 2enses of management, in all O455,555 2e! ann$m. The co!2o!ation was to ha3e the 2!i3ileges of a +ank fo! twel3e yea!s, then the *o3e!nment !ese!3ed the !ight of ann$lling the cha!te! afte! gi3ing one yea!.s notice to the com2any. The co!2o!ation we!e not a$tho!ised to +o!!ow o! owe mo!e than thei! ca2italN if they did so, the mem+e!s +ecame 2e!sonally lia+le in 2!o2o!tion to the amo$nt of thei! stock. The co!2o!ation we!e fo!+idden to t!ade in any me!chandise whate3e!, +$t Bthey we!e allowed to deal in +ills of e change, gold o! sil3e! +$llion, and to sell any wa!es o! me!chandise $2on which they had ad3anced money, and which had not +een !edeemed within th!ee months afte! the time ag!eed $2on.C The s$+sc!i2tion list was o2ened at the "e!ce!s/ Cha2el, then the head,$a!te!s of the co!2o!ation, on Th$!sday, '$ne 64, 4I>=P0fte! this g!eat s$ccess the Cha!te! of 1nco!2o!ation was g!anted on '$ly 6<, 4I>=.C - History of the Bank of England: 1640 to 1903 +y 9!. 0. 0nd!eades, 2. <6H<=

E8,erpts from Taxation in Colonial America #6 Al:in Ra# sh7a% Chapter 10 $p0 )/&-)//BThe mechanism of c!edit esta+lished th!o$gh the Bank of England me!its e 2lanation. 1n "ay 4I>=, the Ways and "eans 0ct g!anted a cha!te! to the Bank of England. The +ank was to lend the go3e!nment O4,655,555 at 7 2e!cent inte!est, a mode!ate !ate gi3en the go3e!nment/s di!e financial st!aits. 1n !et$!n, the +ank was to +e gi3en the 2!i3ilege of !egiste!ing as a KointHstock com2any. This was an eno!mo$s concession +eca$se all othe! +anks we!e !e,$i!ed to o2e!ate as indi3id$als o! 2a!tne!shi2s on the +asis of $nlimited lia+ility to thei! indi3id$al 2!o2!ieto!s. The 2!o2!ieto!s of the Bank of England, in cont!ast, did not face 2e!sonal lia+ility on thei! 2!i3ate f$nds. Thei! !isk was limited to the ca2ital in3ested in the +ank . The +ank enKoyed this ad3antage fo! mo!e than a cent$!y. The newly cha!te!ed +ank was em2owe!ed to do o!dina!y +anking +$siness of !ecei3ing de2osits and c!eating a c!edit c$!!ency. The +ank was +oth a +ank of iss$e and a +ank of de2osit. The o!iginal 2lan 2$t +efo!e a 2a!liamenta!y committee in 4I>E contained an e 2licit !efe!ence to the !ight of note iss$e, +$t this was a 2oint of contention. 0s a !es$lt, the act of 4I>= contains no !efe!ence to +ank notes and only one to +ank +ills. 1t en3isaged that the +ank wo$ld acce2t de2osits and +o!!ow on +ills, +$t that +o!!owing sho$ld ne3e! e ceed the s$m of O4,655,555 at any one time, the amo$nt the +ank wo$ld !aise and lend to the go3e!nment, $nless it +e +y an act of Pa!liament $2on f$nds ag!eed in Pa!liament. 1n this !est!iction, the act a22ea!s to limit the +ill lia+ilities of the +ank to O4,655,555. 1t was not clea! if the +ank co$ld legally owe mo!e than O4,655,555 $2on its notes. Othe! 2!o3isions fo!+ade the 2$!chase of c!own lands o! lending to the C!own witho$t 2a!liamenta!y consent. 0 2e!2et$al f$nd of inte!est, 7 2e!cent on the O4,655,555, 2aya+le to the s$+sc!i+e!s f!om the shi2s/ tonnage and li,$o! d$ties le3ied $nde! the act, was set at O455,555, ta f!ee. (o indi3id$al was 2e!mitted to s$+sc!i+e mo!e than O65,555, and a ,$a!te! of all s$+sc!i2tions was to +e 2aid in 2!om2t cash. 1ndi3id$als we!e to +e 2e!sonally lia+le fo! any de+ts of the +ank e ceeding its ca2ital of O4,655,555. The +ank/s ca2ital of O4,655,555 was s$+sc!i+ed within twel3e days. The s$+sc!i+e!s +ecame a co!2o!ation called the *o3e!no! and Com2any of the Bank of England. Only I5 2e!cent of the sc$+sc!i2tion, O<65,555, was called $2 immeiately +y the go3e!no!s of the +ank. The +ank made its loan to the go3e!nment in installments. On 0$g$st 4, 4I>=, it ga3e the go3e!nment O<65,555 in cash, in a com+ination of d!afts on othe! +anks and O=75,555 in notes $nde! the seal of the +ank, which +ecame known as Bsealed +ank +ills.C 1n !et$!n, the +ank took the go3e!nment/s 2!omise to !e2ay in the fo!m of inte!estH+ea!ing tallies (+onds, o! go3e!nment stock). &!om 0$g$st 66, t!eas$!y o!de!s fo! the s2ending of the money +egan. By yea!/s end, the f$ll s$m had +een ad3anced to the go3e!nment. #owe3e!, as of 'an$a!y 4, 4I>A, the !emaining O=75,555 of sha!eholde!s/ s$+sc!i2tions had not +eeen called in and !emained a3aila+le fo! f$t$!e +anking acti3ities. "o!eo3e!, e3en some of the O<65,555 e isted in the fo!m of s$+sc!i+e!s +onds that the +ank !eckoned, o2timistically, as cash. On !ecei2t of the loan, the go3e!nment $sed the +ank/s notes to 2$!chase s$22lies fo! the a!myPBank of England sealed +ank +ills ass$!ed the king of 2$!chasing 2owe!. The +ank, in t$!n, was g$a!anteed inte!est +y a s2ecific act of Pa!liament. &o! O455,555 in ea!ma!ked ta !e3en$e, the go3e!nment of England co$ld s2end O4,655,555. &o! thei! 2a!t, the +ank/s sha!eholde!s !ecei3ed a di3idend of I 2e!cent in the fi!st half yea!, a do$+leHdigit !et$!n on an ann$ali;ed +asis. The +ank !aised additional ca2ital f!om its acce2tance of de2osits and the ci!c$lation of sealed +ills in addition to those it ga3e the go3e!nment as 2a!t of the o!iginal O4,655,555. "o!e im2o!tant to the 2!ofita+ilty of the +ank and its a+ility to c!eate additional c!edit fo! the go3e!nment and 2!i3ate comme!ce was if its total +o!!owing was limited to O4,655,555 as stated in the act of 4I>=. The go3e!no! of the +ank t!ied +$t failed in 4I>A to negotiate a cla$se in the act that wo$ld 2e!mit an iss$e of sealed +ills in e cess of O4,655,555. 0 co$!t !$ling decla!ed that new +ills co$ld +e iss$ed only as old +ills we!e !eti!ed. #owe33e!, the co$!t !$led that the limit a22lied only to sealed +ills, not to the less fo!mal B!$nning cash notesC of the +ank, which lacked the co!2o!ate seal and we!e me!ely signed +y the cashie!. E cl$ding !$nning cash notes f!om the limit amo$nted to a license to 2!int money, lite!ally cash, s$+Kect to the 2!$dential K$dgement of the +ank/s manage!s. &o!ms we!e 2!inted with +lanks fo! names, amo$nts, and the cashie!/s signat$!e. These cash notes, nicknamed BS2eed/s notesC f!om the name of the cashie!, we!e iss$ed, ci!c$lated f!eely, and we!e acce2ted at f$ll face 3al$e. They we!e deemed as sec$!e as the sealed +ills +acked +y the +ank/s sha!e c2atial and go3e!nment tallies o! loans. The com+ined iss$e of sealed +ills and cash notes ,$ickly e ceeded the a$tho!i;ed s$+sc!i+ed ca2ital and +o!!owing on +ills. C!edit co$ld +e c!eated to the e tent that the 2$+lic acce2ted +ank 2a2e! as good c$!!ency.C

E8,erpts from Taxation in Colonial America #6 Al:in Ra# sh7a% Chapter 10 $p0 )96-)9&-:
1n 'an$a!y 4I<6 the C!own faced +ank!$2tcy, which 2!om2ted a sto2 of the E che,$e!, the f!ee;ing of all !e2ayment fo! a yea! f!om 'an$a!y 4, 4I<6, on O!de!s iss$ed +efo!e 9ecem+e! 47, 4I<4. O!de!s amo$nting to O4,455,555 !ested on the o!dina!y !e3en$e. )e2ayment of O!de!s wo$ld ha3e !ed$ced the C!own/s dis2osa+le income in 4I<6 to O=55,555, an intole!a+ly low le3el. The sto2 tem2o!a!ily !elie3ed !e2ayment of O4,655,555. The memo!y of the sto2, which !$ined se3e!al goldsmiths and othe! small lende!s, was not ,$ickly fo!gotten. 1ts damage const!ained go3e!nment c!edit o2e!ations d$!ing the !emainde! of Cha!les/s !eign and the +!ief !$le of his +!othe!, 'ames. William/s e 2endit$!es in 1!eland and fa! g!eate! milita!y o$tlays in E$!o2e as he in3ol3ed England in what +ecame mo!e than a cent$!yHlong st!$ggle against &!ance on the continent and in 0me!ica !e,$i!ed f$nds a+o3e and +eyond g!ants of Pa!liament. This ci!c$mstance 2!o3ided an o22o!t$nity fo! a g!o$2 of men who 2!o2osed the c!eation of a 2!i3ate, KointHstock +ank that wo$ld ha3e some of the 2owe!s of a national +ank, es2ecially the iss$e of +ank notes. 0fte! disc$ssions +etween the fo$nde!s of the 2!o2osed +ank, the P!i3y Co$ncil in the 2!esence of :$een "a!y, and a committee of Pa!liament, an ag!eement was e3ent$ally !eached in the Ways and "eans 0ct of 4I>= that a$tho!i;ed the c!eation of the Bank of England. The 2!e3io$s system of g!anting c!edit di!ectly to the mona!ch was !e2laced with loans made to the state, with de+t se!3ice g$a!anteed +y s2ecific ta es on acts of Pa!liament. Pa!liament, not the king/s ta collecto!s, g$a!anteed 2$+lic de+t. 1t 2assed the Tonnage 0ct of 4I>= to g$a!antee ann$al inte!est of O455,555 on a loan of O4,655,555 to the go3e!nment made +y the new Bank of England. Pa!liament/s a22!o3al of ea!ma!ked ta es to g$a!antee 2ayment of inte!est on loans to the state c!eated a +ond ma!ket in which indi3id$als co$ld sec$!ely in3est in go3e!nment stock, the English te!m fo! longHte!m go3e!nment +onds. The Bank of England in conK$nction with the Tonnage 0ct ma!ked the +eginning of an official national de+t, which wo$ld g!ow +y lea2s and +o$nds in the eighteenth cent$!y. C!own ac,$iescence in the s$2!emacy of Pa!liament with Pa!liament/s stat$to!y g$a!antee of inte!est and ca2ital !edem2tion t!ansfo!med the 2!e3io$s insec$!ity of lending to the go3e!nment th!o$gh 2e!sonal loans, tallies, and O!de!s with the gene!ally safe in3estment of 2$!chasing go3e!nment +onds. The c!edit !e3ol$tion of 4I>= allowed the go3e!nment of England to li3e +eyond its means - to s2end mo!e than it collected in ta es each yea!. The c!eation of c!edit at low !ates of inte!est ena+led the go3e!nment to engage in lengthy wa!s costing millions of 2o$nds witho$t ha3ing to s$+Kect English ta 2aye!s at once to thei! f$ll cost. 0s de+t and de+t se!3ice 2iled $2, the conse,$ences of steadily !ising ta es wo$ld lead England into wa! with its 0me!ican colonies late! in the eighteenth cent$!y.

E8,erpts from History of the Bank of England #6 Fr0 A0 Andreades $p0 6'-6&The 2lan now was to !aise O4,655,555 to +e lent to the *o3e!nment in !et$!n fo! a yea!ly inte!est of O455,555. The s$+sc!i+e!s to the loan we!e to fo!m a co!2o!ation with the !ight to iss$e notes $2 to the 3al$e of its total ca2ital. The co!2o!ation was to +e called, BThe *o3e!no! and Com2any of the Bank of England.C Pate!son w!ote a 2am2hlet demonst!ating the economic 2!inci2les on which the f$t$!e Bank of England was to !est. #e notes the old mistake Bthat the stam2 o! denomination gi3es o! adds to the 3al$e of money.C The fallacy contained in this was 2ointed o$t +y those who had s$ggested the fo$ndation of the Bank some yea!s ea!lie!. 1ts 2!omote!s had seen that the instit$tion o$ght to +e +ased on the following 2!inci2les% B4. That all money o! c!edit not ha3ing an int!insic 3al$e, to answe! the contents o! denomination the!eof, is false and co$nte!feit, and the loss m$st fall one whe!e o! othe!. B6. That the s2ecies of gold and sil3e! +eing acce2ted, and chosen +y the comme!cial wo!ld fo! the standa!d, o! meas$!e, of othe! effects, e3e!ything else is only acco$nted 3al$a+le as com2a!ed with these. BE. Whe!efo!e all c!edit not fo$nded on the $ni3e!sal s2ecies of gold and sil3e! is im2!actica+le, and can ne3e! s$+sist neithe! safely no! long, at least till some other species of credit e fo!nd o!t and chosen y the trading part of mankind o"er and a o"e or in lie! thereof#C 0fte! desc!i+ing the st!ong 2osition of the Bank and its 2!os2ects of s$ccess, and stating that no di3idend wo$ld +e 2aid witho$t se3e!al months. notice, in o!de! to gi3e the sha!eholde!s the choice of selling o! !etaining thei! sha!es, Pate!son !ema!ks that BThe 2oliticians Pdisting$ish +etween the inte!est of land and trade, as they ha3e lately done +etween that of a king and his 2eo2le,C +$t Bif the 2!o2!ieto!s of the Bank can ci!c$late thei! own f!ndation LsicM of twel3e h$nd!ed tho$sand 2o$nds witho$t ha3ing mo!e than two o! th!ee h$nd!ed tho$sand 2o$nds lying dead at one time with anothe!, this Bank will +e in effect as nine h$nd!ed tho$sand 2o$nds o! a million of f!esh money +!o$ght into the nation.C

E8,erpts from History of the Bank of England #6 Fr0 A0 Andreades $p0 )9-3)There had #een an inter:al of se:en 6ears #et5een the t5o p #li,ations% and d ring this time an e:ent had o,, rred 5hi,h% to E dge #6 other ,o ntries% m st ha:e e8er,ised ,onsidera#le infl en,e on the de:elopment of #an7s in England0 B refer to the ret rn of the .e5s0 The return of the +ews to $ngland. %ts influence on banking. ( The effe,t of the infl 8 of Spanish .e5s on the de:elopment of F t,h ,ommer,e is 5ell 7no5n0 The infl en,e of the .e5s at 4eni,e 5as no less mar7ed0 Bt 5as t5o .e5s 5ho first $in 1*00o#tained the a thorit6 of the Senate to fo nd a #an7 in the stri,t sense of the 5ord0 Their s ,,ess 5as so great that man6 4enetian no#les esta#lished ri:al instit tions0 A# ses follo5ed 5hi,h% ,om#ined 5ith monetar6 diffi, lties% determined the Go:ernment to esta#lish the 3an7 of 4eni,e0 The same infl en,e m st ha:e made itself felt in England0 3 t at 5hat dateK Bn other 5ords% 5hen and for 5hat reason 5ere the .e5s a thorised to ret rn to EnglandK We 5ill pro,eed to ,onsider this H estion@ it is not altogether eas6 to ans5er it0 Bt is ,ertain that as soon as Charles B0 5as dead% the .e5s attempted to ret rn to England0 = #li, opinion 5as not nfa:o ra#le to them% partl6 on a,,o nt of the #i#li,al spirit 5hi,h then pre:ailed% and partl6 #e,a se of the ser:i,es rendered #6 them in ;olland% a ,o ntr6 5hi,h the English of this period ,onstantl6 set #efore them as a model0 Th s Gardiner mentions the p #li,ation of a pamphlet a#o t this time% in 5hi,h in order to pro:e the importan,e of F n7ir7% it is stated that the .e5s 5ere prepared to gi:e L60%000 to L90%000 in ret rn for the toleration of a s6nagog e there% and that s ,h permission 5o ld attra,t all the =ort g ese mer,hants from Amsterdam% from 5hi,h a still greater #enefit 5o ld res lt0 The Amsterdam mer,hants had not e8pe,ted s ,h demonstrations of s6mpath60 The6 too7 the initiati:e% and t5o of them presented a petition in 16*/ to 2airfa8 and the Co n,il% for the re:o,ation of the #anishment of the .e5s0 Another petition is referred to #6 some historians0 Certain .e5s had as7ed for the repeal of the la5s passed against them% and on ,ondition that the 3odleian 1i#rar6 5as made o:er to them% together 5ith permission to ,on:ert St0 =a lMs Cathedral into a s6nagog e% the6 ndertoo7 to pa6 Nsi8 millions of li:resN a,,ording to some% L'00%000 a,,ording to others0 Bt is stated that negotiations 5ere #ro7en off #e,a se the parties ,o ld not agree as to the pri,e% the English Go:ernment as7ing eight millions or L900%0000 Bt is nfort nate as far as ,on,erns the a thenti,it6 of this tale% that the referen,es gi:en #6 the historiansM are inadeH ate or erroneo s% hen,e 5e onl6 refer to it as a , riosit60 These negotiations ,ame to nothing0 +r0 Wolf pro:es ho5e:er% that not5ithstanding this re# ff a n m#er of .e5s esta#lished themsel:es se,retl6 in 1ondon in the time of the Common5ealth0 The sit ation impro:ed still more d ring the =rote,torate0 Crom5ellMs ideas 5ere in ad:an,e of his times% and as +r0 20 ;arrison remar7s% >?o#le 5ere the efforts of the =rote,tor to impress his o5n spirit of toleration on the intoleran,e of his age@ O ;e effe,ti:el6 prote,ted the ! a7ers@ he admitted the .e5s% after an e8p lsion of three ,ent ries@ and he satisfied +a"arin that he had gi:en to Catholi,s all the prote,tion that he dared0A Crom5ell 5as parti, larl6 5ell-disposed to5ards the .e5s% 5ith 5hom he had% a,,ording to +0 G i"ot% fairl6 freH ent dealings0 The6 seem to ha:e done him n mero s ser:i,es0 The .e5s for their part 5ere not na5are of the =rote,tor<s feeling to5ards them% and did their #est to profit #6 it0 Ra##i +anasseh 3en Bsrael too7 the initiati:e in the matter0 This Ra##i 5as a remar7a#le ,hara,ter0 ;e 5as #orn in =ort gal a#o t 160*% # t 5hile still a ,hild he emigrated 5ith his famil6 to ;olland0 There he #e,ame a #rilliant st dent% 5rote #oo7s% and e:en esta#lished the first .e5ish printing press at Amsterdam0 3 t his ,hief efforts 5ere de:oted to impro:ing the lot of his ,o-religionists% and to se, ring their admission into the different E ropean ,o ntries0 Bn parti, lar he tried #6 :ario s means% s ,h as petitions to the =rote,tor% and e:en the dedi,ation of his #oo7% Spes Israelis% to the 3ritish =arliament% to o#tain permission for the .e5s to ret rn to England0 A ,ommission% presided o:er #6 Crom5ell% 5as appointed to ,onsider the H estion0 Bt 5as ,omposed of la56ers% priests and mer,hants0 The de#ates 5ere long-5inded and threatened to #e intermina#le0 Crom5ell ,onseH entl6 dissol:ed the assem#l6% remar7ing that the matter% ,ompli,ated eno gh to start 5ith% no5 appeared more intri,ate than e:er% and that% >altho gh he 5ished no more reasoning% he 6et #egged an interest in their pra6ers0A The ,onferen,e 5as th s 5itho t res lt and +anasseh<s hopes 5ere apparentl6 :ain0 As a matter of fa,t ho5e:er% the .e5s 5ere ta,itl6 allo5ed to li:e in England0 +anasseh re,ei:ed a pension of L100 to ,onsole him for his disappointment0 And three 6ears later% on 2e#r ar6 1'th 16'9% at a re,eption at Whitehall% Crom5ell seems to ha:e gi:en an ass ran,e of his prote,tion to Car:aEal and his ,oreligionists0 Whate:er ma6 #e the tr th a#o t this fatter point% it is pro#a#le that Crom5ell too7 no legislati:e a,tion 5ith regard to the .e5s% # t it is ,ertain that he tolerated their ret rn% and that at the end of the =rote,torate a n m#er of them 5ere li:ing in England0 The6 m st ha:e ta7en an a,ti:e part in trade% for shortl6 after5ards a petition 5as signed #6 n mero s mer,hants ,omplaining that the .e5s 5ere not s #Ee,t to the alien la5% and that in ,onseH en,e the Treas r6 s ffered a 6earl6 loss of L10%0000

'overnors of the Bank of $ngland 8,-./9present:
Sir .ohn ;o #lon $16/*(16/&Sir William S,a5en $16/&(16//?athaniel Ten,h $16//(1&01.ohn Ward $1&01(1&03A#raham ;o #lon $1&03(1&0'Sir .ames 3ateman $1&0'(1&0&2ran,is E6les $1&0&(1&0/Sir Gil#ert ;eath,ote $1&0/(1&11?athaniel Go ld $1&11(1&13.ohn R dge $1&13(1&1'Sir =eter Felme $1&1'(1&1&Sir Gerard Con6ers $1&1&(1&1/.ohn ;anger $1&1/(1&)1Sir Thomas S,a5en $1&)1(1&)3Sir Gil#ert ;eath,ote $1&)3(1&)'William Thompson $1&)'(1&)&; mphr6 +ori,e $1&)&(1&)/Sam el ;olden $1&)/(1&31Sir Ed5ard 3ellam6 $1&31(1&33;oratio To5nshend $1&33(1&3'3r6an 3enson $1&3'(1&3&Thomas Coo7e $1&3&(1&*0Felillers Car#onnel $1&*0(1&*1Stamp 3roo7s#an7 $1&*1(1&*3William 2a57ener $1&*3-1&*'Charles Sa:age $1&*'(1&*&3enEamin 1ong et $1&*&(1&*/William ; nt $1&*/(1&')Ale8ander Sheafe $1&')(1&'*Charles =almer $1&'*(1&'6+atthe5s 3ea,h,roft $1&'6(1&'9+erri,7 3 rrell $1&'9(1&603artholome5 3 rton $1&60(1&6)Ro#ert +arsh $1&6)(1&6*.ohn We6land $1&6*(1&66+atthe5 Clarmont $1&66(1&6/William Cooper $1&6/(1&&1Ed5ard =a6ne $1&&1(1&&3.ames Sperling $1&&3(1&&'Sam el 3ea,h,roft $1&&'(1&&&=eter Ga ssen $1&&&(1&&/Faniel 3ooth $1&&/(1&91William E5er $1&91(1&93Ri,hard ?ea:e $1&93(1&9'George =eters $1&9'(1&9&Ed5ard Farell $1&9&(1&9/+ar7 We6land $1&9/(1&/1Sam el 3osanH et $1&/1(1&/3Godfre6 Thornton $1&/3(1&/'Faniel Giles $1&/'(1&/&Thomas Rai7es $1&/&(1&//Sam el Thornton $1&//(1901.o# +athe5 $1901(190).oseph ? tt $190)(190*3enEamin Winthrop $190*(19063eeston 1ong $1906(1909.ohn Whitmore $1909(1910.ohn =earse $1910(191)William +anning $191)(191*William +ellish $191*(1916.eremiah ;arman $1916(1919George Forrien $1919(19)0Charles =ole $19)0(19)).ohn 3o5den $19))(19)*Corneli s 3 ller $19)*(19)6.ohn 3a7er Ri,hards $19)6(19)9Sam el Fre5e $19)9(1930.ohn ;orsle6 =almer $1930(1933Ri,hard +ee Rai7es $1933(193*.ames =attison $193*(193&Timoth6 A#raham C rtis $193&(193/Sir .ohn Rae Reid $193/(19*1Sir .ohn ;enr6 =ell6 $19*1(19*)William Cotton $19*)(19*'.ohn 3enEamin ;eath $19*'(19*&William Ro#inson Ro#inson $April 19*&-A g st 19*&.ames +orris $19*&(19*/;enr6 .ames =res,ot $19*/(19'1Thomson ;an7e6 $19'1(19'3.ohn Gelli#rand ; ##ard $19'3(19''Thomas +atthias Weg elin $19''(19'&Sheffield ?ea:e $19'&(19'/3onam6 Fo#rPe $19'/(1961Alfred 1atham $1961(1963Kir7man Faniel ;odgson $1963(196';enr6 1an,elot ;olland $196'(196&Thomas ?e5man ; nt $196&(196/Ro#ert Wigram Cra5ford $196/(19&1George 16all $19&1(19&33enEamin 3 ,7 Greene $19&3(19&';enr6 ; ,7s Gi##s $19&'(19&&Ed5ard ;o5le6 =almer $19&&(19&/.ohn William 3ir,h $19&/(1991;enr6 Ri:ersdale Grenfell $1991(1993.ohn Sa nders Gilliat $1993(199'.ames =attison C rrie $199'(199&+ar7 Wil7s Collet $199&(199/William 1idderdale $199/(19/)Fa:id =o5ell $19/)(19/'Al#ert George Sandeman $19/'(19/&; gh Colin Smith $19/&(19//Sam el Ste art Gladstone $19//(1/01A g st s =re:ost $1/01(1/03Sam el ;ope +orle6 $1/03(1/0'Ale8ander 2al,oner Walla,e $1/0'(1/0&William +iddleton Camp#ell $1/0&(1/0/Reginald Eden .ohnston $1/0/(1/11Alfred Cla6ton Cole $1/11(1/13Sir Walter C nliffe $1/13(1/19- $1ord C nliffe from 1/1*Sir 3rien Co7a6ne $1/19(1/)0Sir +ontag Collet ?orman $1/)0-1/**Thomas Si:e5right Catto% 1st 3aron Catto $1/**(1/*/Cameron Co##old $+ar,h 1/*/-30 . ne 1/61- $1ord Co##old from 1/60George Ro5land Stanle6 3aring% 3rd Earl of Cromer $1 . l6 1/61-1/66Sir 1eslie G<3rien $1/66(1/&3Gordon Ri,hardson $1/&3-1/93Ro#in 1eigh-=em#erton $1/93-1//3Sir Ed5ard George $1//3-30 . ne )003Sir +er:6n King $1 . l6 )003-present-

"e!3yn Ding, the *o3e!no! of the Bank of England, attend an inflation meeting in London. (Photo% htt2%88seeke!=54.wo!d2!ess.com8654585686A8ste!lingHfallsHonH+oeHgo3e!no!sHs2eech8)

:$een Eli;a+eth 11 of *!eat B!itain g!eets the *o3e!no! of the Bank of England "e!3yn Ding d$!ing a meeting at B$ckingham Palace in London on "a!ch 6=, 655>. "e!3yn Ding +ecame the fi!st *o3e!no! of the Bank of England to hold 2!i3ate talks with the :$een at he! official !esidence. The "ona!ch and *o3e!no! met to disc$ss the economy following a hike in the Fnited Dingdom.s ann$al !ate of inflation in &e+!$a!y. (*etty 1mages)

B!itain.s Chancello! of the E che,$e! 0listai! 9a!ling (L) walks with (left to !ight) *o3e!no! of the Bank of England "e!3yn Ding, &!ench &inance "iniste! Ch!istine Laga!de and F.S. T!eas$!y Sec!eta!y Timothy *eithne! d$!ing the *65 meeting in #o!sham, England on "a!ch 4=, 655>. "iniste!s f!om the *65 g!o$2 of wealthy and eme!ging co$nt!ies a!e meeting fo! a second day ahead of the *65 s$mmit in 02!il. (Photo +y Pete! "acdia!mid8*etty 1mages)

Chai!man of the &ede!al )ese!3e Ben Be!nanke (left) and *o3e!no! of the Bank of England "e!3yn Ding a!!i3e fo! the dinne! of the *65 &inance "iniste!s. meeting at the *$ildhall in the City of London on Se2tem+e! =, 655>. Wo!ld finance leade!s shifted thei! foc$s f!om c!isis fighting to +anking !efo!m on &!iday as e3idence mo$nted that the wo!st glo+al !ecession in decades was finally d!awing to a close. (Photo +y Pool8*etty 1mages E$!o2e)

B!itain/s T!eas$!y Sec!eta!y 9anny 0le ande! (L), Bank of England *o3e!no! "e!3yn Ding (C) and Chancello! of the E che,$e! *eo!ge Os+o!ne 2ose fo! a 2hotog!a2h at the Lo!d "ayo!.s dinne! to the Banke!s and "e!chants of the City of London at "ansion #o$se in London on '$ne 4I, 6545. The Bank of England will gain new 2owe!s to c$!+ c!edit +inges and 2!e3ent anothe! c!isis as it takes o3e! cont!ol of financial !eg$lation in B!itain, Os+o!ne anno$nced on Wednesday. ()e$te!s)

Bank of England *o3e!no! "e!3yn Ding s2eaks at the Lo!d "ayo!.s dinne! to the Banke!s and "e!chants of the City of London at "ansion #o$se in London on '$ne 4I, 6545. ()e$te!s)

#Kalma! Schacht (left), P!esident of The )eichs+ank, confe!s with "ontag$ (o!man, *o3e!no! of the Bank of England, d$!ing the *e!man financie!.s 3isit to London in &e+!$a!y 4>E7 to e 2o$nd his Scheme fo! the e3ac$ation of the 'ewish 2o2$lation of *e!many $nde! a Ggoods 3o$che!G system. )ef$gees !ecei3ed +y othe! nations wo$ld !ecei3e 3o$che!s f!om the *e!man go3e!nment !e2!esenting the 3al$e of 2a!t of thei! *e!man 2ossessions. The 3al$e of these 3o$che!s wo$ld +e taken o$t in *e!man t!ade. The 2!o2osal was t$!ned down. "any commentato!s called it a G!ansom Scheme.G (Bettmann8CO)B1S)

&ede!al )ese!3e Chai!man 0lan *!eens2an (cente!) meets with the P!esident of the E$!o2ean Cent!al Bank 'eanHCla$de T!ichet (!ight) and *o3e!no! of the Bank of England "e!3yn Ding at the +eginning of the *65 finance ministe!s and cent!al +ank go3e!no!s. meeting in Be!lin on (o3em+e! 4>, 655=. 0ll th!ee men ha3e attended the Bilde!+e!g "eetings at least once. (Photo +y Sean *all$28*etty 1mages)

2ise and ;<all= of the British $mpire

"em+e!s of the &!eemason 2ose fo! a 2hotog!a2h at Windso! Castle in *!eat B!itain. The Ding of S2ain (Ding '$an Ca!los), The P!ince of Wales (P!ince Cha!les), The :$een of the (ethe!lands (:$een Beat!i ), The Ding of (o!way (Ding #a!ald J), Lo!d Ca!!ington, and Lady Thatche! ("a!ga!et Thatche!) ha3e attended Bilde!+e!g meetings in the 2ast. (So$!ce% htt2%88www.almanachdechi3al!y.com8d+685544<8almanachdechi3al!y.com8Q$images8knightso!de!ofga!te!.+m2)

Left to !ight% Ding *eo!ge 1 of *!eat B!itain (left), Ding *eo!ge 111 of *!eat B!itain, and :$een Jicto!ia of *!eat B!itain

The )oyal E change in London in 4<A4

The Ro6al E8,hange and the 3an7 of England in 19'1 $=ainted #6 George $S6dne6- Shepherd-

"1I (Sec!et 1ntelligence Se!3ice) #ead,$a!te!s in London, located o$tside of the City of London. (Photo% &lick!)

The B!itish Pa!liament in London, ne t to the )i3e! Thames. London is the ca2ital of the B!itish Em2i!e, the B!itish Commonwealth, and the Fnited Dingdom of *!eat B!itain. The )othschild family owns and o2e!ates (.". )othschild @ Sons +anking fi!m in London.

B$ckingham Palace in London (Photo% &lick!)

The B!itish Em2i!e consisted of 2!esentHday Fnited States of 0me!ica, Canada, 1!eland, #ong Dong, 1ndia, Pakistan, Bangladesh, B$!ma, S!i Lanka, Seychelles, "aldi3es, (e2al, Bh$tan, Singa2o!e, "alaysia, B!$nei, 0$st!alia, (ew Realand, So$th 0f!ica, Rim+a+we, (ige!ia, *hana, Denya, Tan;ania, Fganda, Botswana, Ram+ia, *am+ia, "o;am+i,$e, "alawi, Lesotho, Swa;iland, Came!oon, Sie!!a Leone, "a$!iti$s, Cy2!$s, "alta, 1s!ael, 'o!dan, 1!a,, D$wait, ?emen, Bah!ain, :ata!, Egy2t, S$dan, no!the!n Somalia, *i+!alta!, Pa2$a (ew *$inea, Solomon 1slands, &iKi, Tonga, Weste!n Samoa, *$yana, Beli;e, Ba!+ados, &alkland 1slands, Cayman 1slands, Easte! 1sland, T!inidad @ To+ago, Saint DittsH(e3is, 0ntig$a and Ba!+$da, Saint Jincent and the *!enadines, Be!m$da, 'amaica, and Bahamas.

Bri i!" Ea! India C#m$an% & Bri i!" India

East 1ndia #o$se in Leadenhall St!eet, London as d!awn +y Thomas #osme! She2he!d, c.474<. The East 1ndia #o$se was the head,$a!te!s of the B!itish East 1ndia Com2any. B!itish East 1ndia Com2any is officially known as B*o3e!no! and Com2any of "e!chants of London t!ading with the East 1ndiesC.

Left% "a2 of 1ndia in the ea!ly 4755s. B!itish East 1ndia Com2any cont!olled a f!action of 1ndia, incl$ding the city of Bom+ay ("$m+ai). )ight% The &lag of the B!itish East 1ndia Com2any. This flag was $sed as the official sym+ol of the B!itish East 1ndia Com2any f!om 4<5< to 4754.

1ord Ro#ert Cli:e meets 5ith 3ritish ,olla#orator and Bndian prin,e +ir .afar $f ll name +ir + hammed .afar Ali Khan- after the 3attle of =lasse6 $=alashi% West 3engal-% near Cal, tta% Bndia% on . ne )3% 1&'&0 The 3ritish East Bndia Compan6 5aged a ,o p dMetat against the ?a5a# $Go:ernor- of 3engal% an Bndian pro:in,e% in an attempt to gain additional trade pri:ileges and a,,ess to BndiaMs treas r60 The ,o p dMetat 5as planned #6 mem#ers of the #oard of dire,tors of the 3ritish East Bndia Compan6 months prior to the 3attle of =lasse60 $=ainting #6 2ran,is ;a6man% ,ir,a 1&6)-

The go:ernment ho se in 2t0 St0 George% +adras% eastern Bndia% in 190*

Colored aH atint of Sepo6s $Bndian infantr6men- of the 3ritish East Bndia Compan6 in formation o tside the ?orth Entran,e Gf Tippoo<s =ala,e at 3angalore in 190*0

B!itish East 1ndia Com2any cont!ol of 1ndia +etween 47E< and 47A<

0n o2i$m godo$n (sto!eho$se) in Patna, 1ndia, a city located on the *anges )i3e! no!thwest of Calc$tta nea! (e2al, in ci!ca 474=. Patna was the cente! of the B!itish East 1ndia Com2any o2i$m ind$st!y. The B!itish East 1ndia Com2any !elied on o2i$m to 2$!chase Chinese silk and tea and ac,$i!e Chinese gold and sil3e!.

Left 2ainting% The 1ndian )e+ellion of 47A< (also known as the Se2oy )e+ellion o! 1ndian Wa! of 1nde2endence) wo$ld fo!ce the B!itish go3e!nment to administe! 1ndia di!ectly as a B!itish c!own colony and te!minate B!itish East 1ndia Com2any/s 2!esence in 1ndia. )ight 2ainting% LakshmiH+ai, the )ani (:$een) of 'hansi, was one of the leading fig$!es of the 1ndian )e+ellion of 47A<N she was killed in action d$!ing a +attle with the B!itish a!my on '$ne 4<H47, 47A7.

"e!cena!ies (Bsoldie!sC) of the B!itish East 1ndia Com2any. The 2ainting ill$st!ates how the B!itish East 1ndia Com2any maintained Bse!3icemenC who we!e allied to the go3e!nment and !e2!esented B!itish inte!ests.

The O2i$m Wa! (47E>H47=6). The B!itish go3e!nment $nde! :$een Jicto!ia waged wa! against the "anch$!ian Chinese Em2i!e in an attem2t to allow B!itish me!chants to sell o2i$m in China. The "anch$!ian Chinese Em2i!e (Ch/ing 9ynasty) ceded #ong Dong to *!eat B!itain in 47=6 and allowed B!itish me!chants to esta+lish a t!ading 2ost (BconcessionC) in Shanghai.

Left 2ict$!e% 0 B!itishH1ndian fo!ce attacks the *ha;ni fo!t d$!ing the &i!st 0fghan Wa! in 47E> )ight 2ict$!e% 0!tistic de2iction of 0fghan t!i+esmen sla$ghte!ing B!itish and 1ndian t!oo2s d$!ing the &i!st 0ngloH0fghan Wa! in 47=6. The &i!st 0ngloH0fghan Wa! lasted f!om 47E> to 47=6. The B!itish East 1ndia Com2any fea!ed )$ssian enc!oachment and coloni;ation of 0fghanistan and !e,$ested that the B!itish a!my occ$2y 0fghanistan. The B!itish a!my inflicted mass cas$alties and dest!oyed 2a!ts of Da+$l (2!esentHday ca2ital of 0fghanistan) +efo!e withd!awing f!om 0fghanistan in 47=6. The Second 0ngloH0fghan Wa! occ$!!ed f!om 47<7 to 4775.

*o3e!no!sH*ene!al and Jice!oys of 1ndia

1eft: 1ord C r"on QGeorge ?athaniel C r"on% 1st +arH ess C r"on of KedlestonR $19//-1/0'Right: R f s Bsaa,s% 1st +arH ess of Reading $1/)1-1/)6-0 R f s Bsaa,s 5as a 3ritish .e5ish politi,ian0

1eft: 2reeman 2reeman-Thomas% 1st +arH ess of Willingdon $1/31-1/36Right: Charles .ohn Canning% 1st Earl Canning Q4is,o nt CanningR $Go:ernor-General of Bndia% 19'6-196)-

B!itish E 2$lsion of the #ighland Scots (4<=I)

The B!itish a!my defeated Scottish !e+els at the Battle of C$lloden in 02!il 4<=I afte! the Scots attem2ted to o3e!th!ow the #o$se of #ano3e! and !esto!e the #o$se of St$a!t. "any Scottish families left Scotland and mig!ated to the (o!th 0me!ican continent to a3oid 2e!sec$tion +y the B!itish a!my and the #o$se of #ano3e!. 0ct of P!osc!i2tion (4<=<) 0n act fo! the mo!e effect$al disa!ming the highlands in ScotlandN and fo! the mo!e effect$al sec$!ing the 2eace of the said highlandsN and fo! !est!aining the $se of the highland d!essN and fo! f$!the! indemnifying s$ch 2e!sons as ha3e acted in the defence of #is "aKesty.s 2e!son and go3e!nment, d$!ing the $nnat$!al !e+ellionN and fo! indemnifying the K$dges and othe! office!s of the co$!t of K$dicia!y in Scotland, fo! not 2e!fo!ming the no!the!n ci!c$it in "ay, one tho$sand se3en h$nd!ed and fo!ty si N and fo! o+liging the maste!s and teache!s of 2!i3ate schools in Scotland, and cha2lains, t$to!s and go3e!no!s of child!en o! yo$th, to take the oaths to his "aKesty, his hei!s and s$ccesso!s, and to !egiste! the same. Whe!eas +y an act made in the fi!st yea! of the !eign of his late maKesty Ding *eo!ge the &i!st, of glo!io$s memo!y, intit$led, 0n act fo! the mo!e effect$al sec$!ing the 2eace of the highlands in Scotland, it was enacted, That f!om and afte! the fi!st day of (o3em+e!, which was in the yea! of o$! Lo!d one tho$sand se3en h$nd!ed and si teen, it sho$ld not +e lawf$l fo! any 2e!son o! 2e!sons (e ce2t s$ch 2e!sons as a!e the!ein mentioned and desc!i+ed) within the shi!e of 9$n+a!tain, on the no!th side of the wate! of Le3en, Sti!ling on the no!th side of the !i3e! of &o!th, Pe!th, Dinca!din, 0+e!deen, 1n3e!ness, (ai!n, C!oma!ty, 0!gyle, &o!fa!, Bamff, S$the!land, Caithness, Elgine and )oss, to ha3e in his o! thei! c$stody, $se, o! +ea!, +!oad swo!d o! ta!get, 2oigna!d, whinge!, o! d$!k, side 2istol, g$n, o! othe! wa!like wea2on, othe!wise than in the said act was di!ected, $nde! ce!tain 2enalties a22ointed +y the said actN which act ha3ing +y e 2e!ience +een fo$nd not s$fficient to attain the ends the!ein 2!o2osed, was f$!the! enfo!ced +y an act made in the ele3enth yea! of the !eign of his late "aKesty, intit$led, 0n act fo! the mo!e effect$al disa!ming the highlands in that 2a!t of *!eat B!itain called ScotlandN and fo! the +ette! sec$!ing the 2eace and ,$iet of that 2a!t of the kingdomN and whe!eas the said act of the ele3enth yea! of his late "aKesty +eing, so fa! as it !elated to the disa!ming of the highlands, to contin$e in fo!ce only d$!ing the te!m of se3en yea!s, and f!om thence to the end of the ne t session of 2a!liament, is now e 2i!edN and whe!eas many 2e!sons within the said +o$nds and shi!es still contin$e 2ossessed of g!eat ,$antities of a!ms, and the!e, with a g!eat n$m+e! of s$ch 2e!sons, ha3e lately !aised and ca!!ied on a most a$dacio$s and wicked !e+ellion against his "aKesty, in fa3o$! of a 2o2ish 2!etende!, and in 2!osec$tion the!eof did, in a t!aite!o$s and hostile manne!, ma!ch into the so$the!n 2a!ts of this kingdom, took 2ossession of se3e!al towns, !aised cont!i+$tions $2on the co$nt!y, and committed many othe! diso!de!s, to the te!!o! and g!eat loss of his "aKesty.s faithf$l s$+Kects, $ntil, +y the +lessing of *od on his "aKesty.s a!ms, they we!e s$+d$ed% now, fo! 2!e3enting !e+ellion, and t!aite!o$s attem2ts in time to come, and the othe! mischiefs a!ising f!om the 2ossession o! $se of a!ms, +y lawless, wicked, and disaffected 2e!sons inha+iting within the said se3e!al shi!es and +o$ndsN +e it enacted +y the Ding.s most e cellent maKesty, +y and with the ad3ice and consent of the lo!ds s2i!it$al and tem2o!al, and commons, in this 2!esent 2a!liament assem+led, and +y the a$tho!ity of the same, That f!om and afte! the fi!st day of 0$g$st, one tho$sand se3en h$nd!ed and fo!ty si , it shall +e lawf$l fo! the !es2ecti3e lo!ds lie$tenants of the se3e!al shi!es a+o3e !ecited, and fo! s$ch othe! 2e!sons as his maKesty, his hei!s o! s$ccesso!s shall, +y his o! thei! sign man$al, f!om time to time, think fit to a$tho!i;e and a22oint in that +ehalf, to iss$e, o! ca$se to +e iss$ed o$t, lette!s of s$mmons in his "aKesty.s name, and $nde! his o! thei! !es2ecti3e hands and seals, di!ected to s$ch 2e!sons within the said se3e!al shi!es and +o$nds, as he o! they, f!om time to time, shall think fit, the!e+y commanding and !e,$i!ing all and e3e!y 2e!son and 2e!sons the!ein named, o! inha+iting within the 2a!tic$la! limits the!ein desc!i+ed, to +!ing in and deli3e! $2, at a ce!tain day, in s$ch s$mmons to +e 2!efi ed, and at a ce!tain 2lace the!ein to +e mentioned, all and sing$la! his and thei! a!ms and wa!like wea2ons, $nto s$ch lo!d lie$tenant, o! othe! 2e!son o! 2e!sons a22ointed +y his "aKesty, his hei!s, of s$ccesso!s, in that +ehalf, as afo!esaid, fo! the $se of his "aKesty, his hei!s o! s$ccesso!s, and to +e dis2osed of in s$ch manne! as his "aKesty, his hei!s o! s$ccesso!s shall a22ointN and if any 2e!son o! 2e!sons in s$ch s$mmons mentioned +y name, o! inha+iting within the limits the!ein desc!i+ed, shall, +y the oaths of one o! mo!e c!edi+le witness o! witnesses, +e con3icted of ha3ing o! +ea!ing any a!ms, o! wa!like wea2ons, afte! the day 2!efi ed in s$ch s$mmons, +efo!e any one o! mo!e of his "aKesty.s K$stices of the 2ease fo! the shi!e o! stewa!t!y whe!e s$ch offende! o! offende!s shall !eside, o! +e a22!ehended, o! +efo!e the K$dge o!dina!y, o! s$ch othe! 2e!son o! 2e!sons as his "aKesty, his hei!s o! s$ccesso!s shall a22oint, in manne! he!ein afte! di!ected, e3e!y s$ch 2e!son o! 2e!sons so con3icted shall fo!feit the s$m of fifteen 2o$nds ste!ling, and shall +e committed to 2!ison $ntil 2ayment of the said s$mN and if any 2e!son o! 2e!sons, con3icted as afo!esaid, shall !ef$se o! neglect to make

2ayment of the afo!esaid s$m of fifteen 2o$nds ste!ling, within the s2ace of one calenda! month f!om the date of s$ch con3iction, it shall and may +e lawf$l to any one o! mo!e of his "aKesty.s K$stices of the 2eace, o! to the K$dge o!dina!y of the 2lace whe!e s$ch offende! o! offende!s is o! a!e im2!isoned, in case he o! they shall K$dge s$ch offende! o! offende!s fit to se!3e his maKesty as a soldie! o! soldie!s, to ca$se him o! them to +e deli3e!ed o3e! (as they a!e he!e+y em2owe!ed and !e,$i!ed to do) to s$ch office! o! office!s +elonging to the fo!ces of his "aKesty, his hei!s o! s$ccesso!s, who shall +e a22ointed f!om time to time to !ecei3e s$ch men, to se!3e as soldie!s in any of his maKesty.s fo!ces in 0me!icaN fo! which 2$!2ose the !es2ecti3e office!s who shall !ecei3e s$ch men, shall, then ca$se the a!ticles of wa! against m$tiny and dese!tion to +e !ead to him o! them in the 2!esence of s$ch K$stices of the 2eace, o! K$dge o!dina!y, who shall so deli3e! o3e! s$ch men, who shall ca$se an ent!y o! memo!ial the!eof to +e made, togethe! with the names of the 2e!sons so deli3e!ed o3e!, with a ce!tificate the!eof in w!iting, $nde! his o! thei! hands, to +e deli3e!ed to the office!s a22ointed to !ecei3e s$ch menN and f!om and afte! !eading of the said a!ticles of wa!, e3e!y 2e!son so deli3e!ed o3e! to s$ch office!, to se!3e as a soldie! as afo!esaid, shall +e deemed a listed soldie! to all intents and 2$!2oses, and shall +e s$+Kect to the disci2line of wa!N and in case of dese!tion, shall +e 2$nished as a dese!te!N and in the case s$ch offende! o! offende!s shall not +e K$dged fit to se!3e his maKesty as afo!esaid, then he o! they shall +e im2!isoned fo! the s2ace of si calenda! months, and also $ntil he o! they shall gi3e s$fficient sec$!ity fo! his o! thei! good +eha3io$! fo! the s2ace of two yea!s f!om the gi3ing the!eof. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That if, afte! the day a22ointed +y any s$mmons fo! the deli3e!y $2 of a!ms in 2$!s$ance of this act, any a!ms, o! wa!like wea2ons, shall +e fo$nd hidden o! concealed in any dwelling ho$se, +a!n, o$tHho$se, office, o! any othe! ho$se whatsoe3e!, +eing the !esidence o! ha+itation of o! +elonging to any of the 2e!sons s$mmoned to deli3e! the $2 a!ms as afo!esaid, the tenant o! 2ossesso! of s$ch dwellingHho$se, o! of the dwellingHho$se to which s$ch +a!n, office, o! o$tHho$se +elongs, +eing the!eof con3icted in manne! a+o3eHmentioned, shall +e deemed and taken to +e the ha3e! and conceale! of s$ch a!ms, and +eing the!eof con3icted in manne! a+o3eHmentioned, shall s$ffe! the 2enalties he!e+y a+o3e enacted against conceale!s of a!ms, $nless s$ch tenant o! 2ossesso!, in whose ho$se, +a!n, o$tHho$se, office, o! othe! ho$se +y them 2ossessed, s$ch a!ms shall +e fo$nd concealed, do gi3e e3idence, +y his o! he! making oath, o! othe!wise to the satisfaction of the said K$stices of the 2eace, K$dge o!dina!y, o! othe! 2e!son a$tho!i;ed +y his "aKesty, +efo!e whom he o! she shall +e t!ied, that s$ch a!ms we!e so concealed and hid witho$t his o! he! knowledge, 2!i3ity, o! conni3ance. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That if any 2e!son who shall ha3e +een con3icted of any of the a+o3e offences of +ea!ing, hiding, o! concealing a!ms, cont!a!y to the 2!o3isions in this act, shall the!eafte! 2!es$me to commit the like offence a second time, that he o! she +eing the!eof con3icted +efo!e any co$!t of K$sticia!y o! at the ci!c$it co$!ts, shall +e lia+le to +e t!ans2o!ted to any of his "aKesty.s 2lantations +eyond the seas, the!e to !emain fo! the s2ace of se3en yea!s. 0nd fo! the mo!e effect$al e ec$tion of this 2!esent act, +e it f$!the! enacted +y the a$tho!ity afo!esaid, That it shall +e lawf$l to his "aKesty, his hei!s o! s$ccesso!s, +y his o! thei! sign man$al, f!om time to time, to a$tho!i;e and a22oint s$ch 2e!sons as he o! they shall think 2!o2e!, to e ec$te all the 2owe!s and a$tho!ities +y this act gi3en to one o! mo!e K$stice o! K$stices of the 2eace, o! to the K$dge o!dina!y, within thei! !es2ecti3e K$!isdictions, as to the a22!ehending, t!ying, and con3icting s$ch 2e!son o! 2e!sons who shall +e s$mmoned to deli3e! $2 thei! a!ms, in 2$!s$ance of this act. 0nd to the end that e3e! 2e!son o! 2e!sons, named o! conce!ned in s$ch s$mmons, may ha3e d$e notice the!eof, and to 2!e3ent all ,$estions conce!ning the legality of s$ch notice, it is he!e+y f$!the! enacted +y the a$tho!ity afo!esaid, That s$ch s$mmons notwithstanding the gene!ality the!eof, +e deemed s$fficient, if it e 2!ess the 2e!son o! 2e!sons that a!e commanded to deli3e! $2 thei! wea2ons, o! the 2a!ishes, o! the lands. limits, and +o$nding of the !es2ecti3e te!!ito!ies and 2laces, whe!eof the inha+itants a!e to +e disa!med as afo!esaidN and that it shall +e a s$fficient and legal e ec$tion o! notice of the said s$mmons, if it is affi ed on the doo! of the 2a!ish ch$!ch o! 2a!ish ch$!ches of the se3e!al 2a!ishes within which the lands (the inha+itants whe!eof a!e to +e disa!med) do lie, on any S$nday, +etween the ho$!s of ten in the fo!enoon, and two in the afte!noon, fo$! days at least +efo!e the day 2!efi ed fo! the deli3e!ing $2 of the a!ms, and on the ma!ket c!oss of the head +$!gh of the shi!e o! stewa!t!y, within which the said lands lie, eight days +efo!e the day a22ointed fo! the said deli3e!y of a!msN and in case the 2e!son o! 2e!sons em2loyed to affi the said s$mmons on the doo!s of the se3e!al 2a!ish ch$!ches, o! any of them, shall +e inte!!$2ted, 2!e3ented, o! fo!ci+ly hinde!ed f!om affi ing the said s$mmons on the doo!s of the said ch$!ches, o! any of them, $2on oath the!eof made +efo!e any of his "aKesty.s K$stices of the 2eace, the s$mmons affi ed on the ma!ket c!oss of the said head +$!gh of the shi!e o! stewa!t!y as afo!esaid, shall +e deemed and taken to +e a s$fficient notice to all the 2e!sons commanded the!e+y to deli3e! $2 hei! a!ms, within the t!$e intent and meaning, and fo! the 2$!2oses of this act. 0nd to the end that the!e may +e s$fficient e3idence of the e ec$tion, o! notice gi3en of the s$mmons fo! disa!ming the se3e!al 2e!sons and dist!icts, as afo!esaid, +e it f$!the! enacted +y the a$tho!ity afo!esaid, That $2on the ela2sing of the said se3e!al days to +e 2!efi ed fo! the deli3e!ing $2 a!ms, the 2e!son o! 2e!sons em2loyed to fi the s$mmons, as a+o3e mentioned, on the ma!ket c!oss of the head +$!ghs of any shi!e o! stewa!t!y, shall, +efo!e any one of his "aKesty.s K$stices of the 2eace fo! the said shi!e o! stewa!t!y, make oath, that he o! they did t!$ly e ec$te and gi3e notice of the same, +y affi ing it as afo!esaidN and the 2e!son o! 2e!sons em2loyed to affi the said s$mmons on the doo!s of the 2a!ish ch$!ch o! 2a!ish ch$!ches, shall make oath in the same manne!, and to the same effect, o! othe!wise shall swea! that he o! they we!e inte!!$2ted, 2!e3ented, o! fo!ci+ly hinde!ed f!om affi ing the said s$mmons as afo!esaidN which oaths, togethe! with co2ies o! d$2licates of the s$mmons, to which they se3e!ally !elate, shall +e deli3e!ed to the she!iff o! stewa!d cle!k of the se3e!al shi!es o! stewa!t!ies within which the 2e!sons intended to +e disa!med do li3e and !eside, who shall ente! the same in +ooks, which he and they is and a!e he!e+y !e,$i!ed to kee2 fo! that 2$!2oseN and the said +ooks in which the ent!ies a!e so made, o! e t!acts o$t of the same, $nde! the hand of the she!iff o! stewa!d cle!k, shall +e deemed and taken to +e f$ll and com2lete e3idence of the e ec$tion of the s$mmons, in o!de! to the con3ictions of the 2e!sons who shall neglect and !ef$se to com2ly with the same. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That if any s$ch she!iff o! stewa!d cle!k neglect o! !ef$se to make s$ch ent!y as is a+o3e mentioned, o! shall !ef$se to e hi+it the +ooks containing s$ch ent!ies, o! to gi3e e t!acts of the same, +eing the!eto !e,$i!ed +y any 2e!son of 2e!sons who shall ca!!y on any 2!osec$tions in 2$!s$ance of this act, the cle!k so neglecting o! !ef$sing shall fo!feit his office, and shall likewise +e fined in the s$m of fifty 2o$nds ste!lingN to +e !eco3e!ed $2on a s$mma!y com2laint +efo!e the co$!t of session, fo! the $se of his "aKesty, his hei!s o! s$ccesso!s. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That it shall and may +e lawf$l to and fo! the lo!d of any of the shi!es afo!esaid, o! the 2e!son o! 2e!sons a$tho!ised +y his "aKesty, his hei!s o! s$ccesso!s, as afo!esaid, to s$mmon the 2e!son o! 2e!sons afo!esaid to deli3e! $2 his o! thei! a!ms, in manne! a+o3e mentioned, o! to and fo! any K$stice of the 2eace of the !es2ecti3e shi!es a+o3e mentioned, o! to s$ch 2e!son o! 2e!sons as shall +e a$tho!ised +y his "aKesty, his hei!s o! s$ccesso!s, fo! t!ying offences against this act, to a$tho!ise and a22oint

s$ch 2e!son o! 2e!sons as they think fit to a22!ehend all s$ch 2e!son o! 2e!sons as may +e fo$nd within the limits afo!esaid, ha3ing o! wea!ing any a!ms, o! wa!like wea2ons, cont!a!y to law, and fo!thwith to ca!!y him o! them to some s$!e 2!ison, in o!de! to thei! +eing 2!oceeded against acco!ding to law. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That it shall and may +e lawf$l to and fo! his "aKesty, his hei!s and s$ccesso!s, +y wa!!ant $nde! his o! thei! !oyal sign man$al, and also to and fo! the lo!d lie$tenant of any of the shi!es afo!esaid, o! the 2e!son o! 2e!sons a$tho!i;ed +y his maKesty to s$mmon the 2e!son o! 2e!sons afo!esaid to deli3e! $2 thei! a!ms, o! any one o! mo!e K$stices of the 2eace, +y wa!!ant $nde! his o! thei! hands, to a$tho!i;e and a22oint any 2e!son o! 2e!sons to ente! into any ho$ses, within the limits afo!esaid, eithe! +y day o! +y night, and the!e to sea!ch fo!, and to sei;e all s$ch a!ms as shall +e fo$nd cont!a!y to the di!ection of this act. P!o3ided, That if the a+o3eHmentioned sea!ch shall +e made in the nightHtime, that is to say, +etween s$n setting and s$n !ising, it shall +e made in the 2!esence of a consta+le, o! of some 2e!son 2a!tic$la!ly to +e named fo! that 2$!2ose in the wa!!ant fo! s$ch sea!ch, and if any 2e!sons, to the n$m+e! of fi3e o! mo!e, shall at any time assem+le togethe! to o+st!$ct the e ec$tion of any 2a!t of this act, it shall and may +e lawf$l to and fo! e3e!y lo!d lie$tenant, de2$ty lie$tenant, o! K$stice of the 2eace whe!e s$ch assem+ly shall +e, and also to and fo! e3e!y 2eace office within any s$ch shi!e, stewa!t!y, city, +$!gh, o! 2lace whe!e s$ch assem+ly shall +e, and likewise to and fo! all and e3e!y s$ch othe! 2e!son o! 2e!sons, as +y his "aKesty, his hei!s o! s$ccesso!s, shall +e a$tho!i;ed and a22ointed in that +ehalf as afo!esaid, to !e,$i!e the aid and assistance of the fo!ces of his "aKesty, his hei!s o! s$ccesso!s, +y a22lying to the office! commanding the said fo!ces (who is he!e+y a$tho!i;ed, im2owe!ed, and commanded to gi3e s$ch aid and assistance acco!dingly) to s$22!ess s$ch $nlawf$l assem+ly, in o!de! to the 2$tting this act in d$e e ec$tionN and also to sei;e, a22!ehend, and disa!m, and they a!e he!e+y !e,$i!ed to sei;e, a22!ehend, and disa!m s$ch 2e!sons so assem+led togethe!, and fo!thwith to ca!!y the 2e!sons so a22!ehended +efo!e one o! mo!e of his "aKesty.s K$stices of the 2eace of the shi!e o! 2lace whe!e s$ch 2e!sons shall +e so a22!ehended, in o!de! to thei! +eing 2!oceeded against, fo! s$ch thei! offences, acco!ding to lawN and if the 2e!sons so $nlawf$lly assem+led, o! any of them, o! any othe! 2e!son o! 2e!sons s$mmoned to deli3e! $2 his o! thei! a!ms in 2$!s$ance of this act, shall ha22en to +e killed, maimed, o! wo$nded in the dis2e!sing, sei;ing, o! a22!ehending, o! in the endea3o$!ing to dis2e!se, sei;e, o! a22!ehend, +y !eason of thei! !esisting the 2e!sons endea3o$!ing to dis2e!se, sei;e, and a22!ehend themN then all and e3e!y s$ch lo!d lie$tenant, K$stice o! K$stices of the 2eace, o! any 2eace office! o! office!s, and all and e3e!y 2e!son o! 2e!sons, a$tho!i;ed and a22ointed +y his "aKesty, his hei!s o! s$ccesso!s, in that +ehalf, as afo!esaid, and all 2e!sons aiding and assisting him, them, o! any of them, shall +e f!eed, discha!ged, and idemnified, as well against the Ding.s maKesty, his hei!s and s$ccesso!s, as against all and e3e!y othe! 2e!son and 2e!sons. of, fo!, o! conce!ning the killing, maiming, o! wo$nding any s$ch 2e!son o! 2e!sons so $nlawf$lly assem+led, that shall +e killed, maimed, o! wo$nded as afo!esaid. 0nd +e it enacted +y the a$tho!ity afo!esaid, That if any action ci3il o! c!iminal, shall +e +!o$ght +efo!e any co$!t whatsoe3e!, against any 2e!son o! 2e!sons fo! what he o! they shall lawf$lly do in 2$!s$ance o! e ec$tion of this act, s$ch co$!t shall allow the defendant the +enefit of discha!ge and idemnity a+o3e 2!o3ided, and shall f$!the! disce!n the 2$!s$e! to 2ay to the defende! the f$ll and !eal e 2ences that he shall +e 2$t to +y s$ch action o! 2!osec$tion. P!o3ided ne3e!theless, and +e it enacted +y the a$tho!ity afo!esaid, That no 2ee!s of this !ealm, no! thei! sons, no! any mem+e!s of 2a!liament, no! any 2e!sons o! 2e!sons, who, +y the act a+o3e !ecited of the fi!st yea! of his late "aKesty, we!e allowed to ha3e o! ca!!y a!ms, shall +y 3i!t$e of this act +e lia+le to +e s$mmoned to deli3e! $2 thei! a!ms, o! wa!like wea2onsN no! shall this act, o! the a+o3e c!eited act, +e const!$ed to e tend to incl$de o! hinde! any 2e!son, whom his "aKesty, his hei!s o! s$ccesso!s, +y licence $nde! his o! thei! sign man$al, shall 2e!mit to wea! a!ms, o! who shall +e licenced to wea! a!ms +y any w!iting o! w!itings $nde! the hand and seal, o! hands and seals of any 2e!son o! 2e!sons a$tho!i;ed +y his "aKesty, his hei!s o! s$ccesso!s, to gi3e s$ch licence, f!om kee2ing, +ea!ing, o! wea!ing s$ch a!ms, and wa!like wea2ons as in s$ch licence o! licences shall fo! that 2$!2ose +e 2a!tic$la!ly s2ecified. 0nd to the end that no 2e!sons may +e disco$!aged f!om deli3e!ing $2 thei! a!ms, f!om the a22!ehension of the 2enalties and fo!feit$!es which they may ha3e inc$!!ed, th!o$gh thei! neglecting to com2ly with the di!ections of the said act of the fi!st yea! of his late "aKesty.s !eign, +e it f$!the! enacted +y the a$tho!ity afo!esaid, that f!om and afte! the time of affi ing any s$ch s$mmons as afo!esaid, no 2e!son o! 2e!sons !esiding within the +o$nds the!ein mentioned, shall +e s$ed o! 2!osec$ted fi! his o! thei! ha3ing, o! ha3ing had, +ea!ing, o! ha3ing +o!ne a!ms at any time +efo!e the se3e!al days to +e 2!efi ed o! limited +y s$mmons as afo!esaid, fo! the !es2ecti3e 2e!sons and dist!icts to deli3e! $2 thei! a!msN +$t if any 2e!son o! 2e!sons shall !ef$se o! neglect to deli3e! $2 thei! a!ms in o+edience to s$ch s$mmons as afo!esaid, o! shall afte!wa!ds +e fo$nd in a!ms, he and they shall +e lia+le to the 2enalties and fo!feit$!es of the stat$te a+o3e !ecited, as well as to the 2enalties of this 2!esent act. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That one moiety of the 2enalties im2osed +y this act, with !es2ect to which no othe! 2!o3ision is made, shall +e to the dis2osal of the K$stices of the 2eace, K$dge o!dina!y, o! othe! 2e!son a$tho!i;ed +y his "aKesty as afo!esaid, +efo!e whom s$ch con3ictions shall ha22en, 2!o3ided the same +e a22lied towa!ds the e 2ence inc$!!ed in the e ec$tion of this act. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That the a+o3e 2!o3isions in this act shall contin$e in fo!ce fo! se3en yea!s, and f!om thence to the end of the ne t session of 2a!liament, and no longe!. 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That f!om and afte! the fi!st day of 0$g$st, one tho$sand se3en h$nd!ed and fo!ty se3en, no man o! +oy, within that 2a!t of *!eat B!iton called Scotland, othe! than shall +e em2loyed as office!s and soldie!s in his "aKesty.s fo!ces, shall on any 2!etence whatsoe3e!, wea! o! 2$t on the clothes commonly called #ighland Clothes (that is to say) the 2laid, 2hili+eg, o! little kilt, t!owse, sho$lde! +elts, o! any 2a!t whatsoe3e! of what 2ec$lia!ly +elongs to the highland ga!+N and that no ta!tan, o! 2a!tlyHcolo$!ed 2laid o! st$ff shall +e $sed fo! g!eat coats, o! fo! $22e! coatsN and if any s$ch 2e!son shall 2!es$me, afte! the said fi!st day of 0$g$st, to wea! o! 2$t on the afo!esaid ga!ments o! any 2a!t of them, e3e!y s$ch 2e!son so offending, +eing con3icted the!eof +y the oath of one o! mo!e c!edi+le witness o! witnesses +efo!e any co$!t of K$sticia!y, o! any one o! mo!e K$stices of the 2eace fo! the shi!e o! stewa!t!y, o! K$dge o!dina!y of the 2lace whe!e s$ch offence shall +e committed, shall s$ffe! im2!isonment, witho$t +ail, d$!ing the s2ace of si months, and no longe!N and +eing con3icted fo! a second offence +efo!e a co$!t of K$sticia!y o! at the ci!c$its, shall +e lia+le to +e t!ans2o!ted to any of his "aKesty.s 2lantations +eyond the seas, the!e to !emain fo! a s2ace of se3en yea!s. 0nd whe!eas +y an act made in this session of 2a!liament, intit$led, 0n act to indemnify s$ch 2e!sons as ha3e acted in defence of his "aKesty.s 2e!son and go3e!nment, and fo! the 2!ese!3ation of the 2$+lick 2eace of his kingdom, d$!ing the time of the 2!esent $nnat$!al

!e+ellion, and she!iffs and othe!s who ha3e s$ffe!ed esca2es, occasioned the!e+y, f!om 3e atio$s s$its and 2!osec$tions, it is enacted, That all 2e!sonal actions and s$its, indictments, info!mations, and all molestations, 2!osec$tions, and 2!oceedings whatsoe3e!, and K$dgements the!e$2on, if any +e, fo! o! +y !eason of any matte! o! thing ad3ised, commanded, a22ointed, o! done d$!ing the !e+ellion, $ntil the thi!tieth day of 02!il, in the yea! of o$! lo!d one tho$sand se3en h$nd!ed and fo!ty si , in o!de! to s$22!ess the said $nnat$!al !e+ellion, o! fo! the 2!ese!3ation of the 2$+lick 2eace, o! fo! the se!3ice o! safety of the go3e!nment, shall +e discha!ged and made 3oidN and whe!eas it is also !easona+le, that acts, done fo! the 2$+kick se!3ice, since the said thi!tieth day of 02!il, tho$gh not K$stifia+le +y the st!ict fo!ms of law, sho$ld +e K$stified +y act of 2a!liamentN +e it enacted +y the a$tho!ity afo!esaid, That all 2e!sonal action and s$its, indictments and info!mations, which ha3e +een o! shall +e commenced o! 2!osec$ted, and all molestations, 2!osec$tions, and 2!oceedings whatsoe3e!, and K$dgements the!e$2on, if any +e, fo! o! +y !eason of any act, matte!, o! thing ad3ised, commanded a22ointed, o! done +efo!e the twenty fifth day of '$ly in the yea! of o$! Lo!d one tho$sand se3en h$nd!ed and fo!ty si , in o!de! to s$22!ess the said $nnat$!al !e+ellion, o! fo! the 2!ese!3ation of the 2$+lick 2eace, o! fo! the safety o! se!3ice of the go3e!nment, shall +e discha!ged and made 3oidN and that e3e!y 2e!son, +y whom any s$ch act, matte!, o! thing shall ha3e +een so ad3ised, commanded, a22ointed, o! done fo! the 2$!2osed afo!esaid, o! any of them, +efo!e the said fi3e and twentieth day of '$ly, shall +e f!eed, ac,$itted, and indemnified, as well against the Ding.s maKesty, his hei!s and s$ccesso!s, as against all and e3e!y othe! 2e!son and 2e!sonsN and that if any action o! s$it hath +een o! shall +e commenced o! 2!osec$ted, within that 2a!t of *!eat B!itonN called England, against any 2e!son fo! any s$ch act, matte!, o! thing so ad3ised, commanded, a22ointed, o! done fo! the 2$!2oses afo!esaid, o! any of them, +efo!e the said twenty fifth day of '$ly, he o! she may 2lead the gene!al $se, and gi3e this act and the s2ecial matte! in e3idenceN and if the 2laintiff o! 2laintiffs shall +ecome nons$it, o! fo!+ea! f$!the! 2!osec$tion, o! s$ffe! discontin$anceN o! if a 3e!dict 2ass against s$ch 2laintiff o! 2laintiffs, the defendant o! defendants shall !eco3e! his, he! o! thei! do$+le costs, fo! which, he she o! they shall ha3e the like !emedy, as in cases whe!e costs +y law a!e gi3en to defendantsN and if s$ch action o! s$it hath +een o! shall +e commenced o! 2!osec$ted in that 2a!t of *!eat B!iton, called Scotland, the co$!t, +efo!e whom s$ch action o! s$it hath +een o! shall +e commenced o! 2!osec$ted , shall follow to the defende! the +enefit of the discha!ge and indemnity a+o3e 2!o3ided, and shall f$!the! disce!n the 2$!s$e! to 2ay the defende! the f$ll and !eal e 2ences that he of she shall +e 2$t to +y s$ch action o! s$it. 0nd whe!eas +y an act 2assed in the si th yea! of he! late "aKesty :$een 0nne, intit$led, 0n act fo! !ende!ing the $nion of the two kingdoms mo!e enti!e and com2leteN it is, amongst othe! things, enacted, That ci!c$it co$!ts shall +e holden in that 2a!t of the $nited kingdom called ScotlandN in a manne!, and at the 2laces mentioned in the said actN and whe!e +y the late $nnat$!al !e+ellion, the co$!se of K$stice in Scotland has +een so inte!!$2ted, as !ende!ed it im2!actica+le to gi3e $2 and t!ansmit 2!esentments, in s$ch d$e time as 2!osec$tions might the!e$2on commence, +efo!e the no!the!n ci!c$it, to +e holden in "ay this 2!esent yea!, whe!e+y the!e a22ea!ed a necessity of s$2e!seding the said ci!c$itN +e it the!efo!e enacted +y the a$tho!ity afo!esaid, That the K$dges of the co$!t of K$sticia!y, and all and e3e!y othe! 2e!son and 2e!sons the!ein conce!ned, a!e he!e+y indemnified fo! thei! not 2e!fo!ming the said ci!c$it, as +y the fo!ecited act they we!e o+liged to doN any thing in the same act, o! in any othe! law o! stat$te to the cont!a!y notwithstanding. 0nd whe!eas a do$+t hath a!isen with !es2ect to the shi!e of 9$n+a!tain, what 2!oof the!eof was intended to +e disa!med +y the fi!st !ecited act made in the fi!st yea! of his late "aKesty Ding *eo!ge, and intended to +e ca!!ied into f$!the! e ec$tion +y the 2!esent actN +e it enacted +y the a$tho!ity afo!esaid, That s$ch 2a!ts of the said shi!e of 9$n+a!tain, as lie $2on the east, west and no!th sides of Lochlomond, to the no!thwa!d of that 2oint whe!e the wate! of Le3en !$ns f!om Lochlomond, a!e and we!e intended to +e disa!med +y the afo!esaid act, and a com2!ehended and s$+Kect to the di!ections of this act. And whereas it is of great importance to prevent the rising generation being educated in disaffected or rebellious principles, and although sufficient provision is already made by law for the due regulation of the teachers in four universities, and in the publick schools authorized by law in the royal burghs and country parishes in Scotland, it is further necessary, that all persons who take upon them to officiate as masters or teachers in private schools, in that part of Great Briton called Scotland, should give evidence of their good affection to his Majesty s person and government! be it therefore enacted by the authority aforesaid, "hat from and after the first day of #ovember, in the year of our $ord one thousand seven hundred and forth si%, it shall not be lawful for any person in Scotland to keep a private school for teaching &nglish, $atin, Greek, or any part of literature, or to officiate as a master or teacher in such school! or any school for literature, other than those in universities, or established in the respectively royal burghs, by publick authority, or the parochial schools settled according to law, or the schools maintained by the society in Scotland for propogating christian knowledge, or by the general assemblies of the church of Scotland, or committees thereof, upon the bounty granted by his Majesty, until the situation and description of such private school be first entered and registered in a book, which shall be provided and kept for that purpose by the clerks of the several shires, stewartries, and burghs in Scotland, together with a certificate from the proper officer, of every such master and teacher having 'ualified himself, by taking the oaths appointed by law to be taken by persons in offices of publick trust in Scotland! and every such master and teacher of a private school shall be obliged, and is hereby re'uired, as often as prayers shall be said in such school, to pray, or cause to be prayed for, in e%press words his Majesty, his heirs and successors, by name, and for all the royal family! and if any person shall, from and after the said first day of #ovember, presume to enter upon, or e%ercise the function or office of a master or teacher of any such private school as shall not have been registered in manner herein directed, or without having first 'ualified himself, and caused the certificate to be registered as above mentioned! or in case he shall neglect to pray for his Majesty by name, an all the royal family, or to cause them to be prayed for as herein directed! or in case he shall resort to, of attend divine worship in any episcpal meeting(house not allowed by law! every person so offending in any of the premisses, being thereof lawfully convicted before any two or more justices of the peace, or before any other judge competent of the place summarily, shall for the first offence, suffer imprisonment for the space of si% months! and for the second, or any subse'uent offence, being thereof lawfully convicted before the court of justiciary, or in any of the circuit courts, shall be adjudged to be transported, and accordingly shall be transported to some of his Majesty s plantations in America for life! and in case any person adjudged to be so transported shall return into, or be found in Great Briton, then every such person shall suffer imprisonment for life) 0nd +e it f$!the! enacted +y the a$tho!ity afo!esaid, That if any 2a!ent o! g$a!dian shall 2$t a child o! child!en $nde! his ca!e to any 2!i3ate school that shall not +e !egiste!ed acco!ding to the di!ections of this act, o! whe!eof the 2!inci2al maste! o! teache! shall not ha3e !egiste!ed the ce!tificate of his ha3ing ,$alified himself as he!ein di!ected, e3e!y s$ch 2a!ent o! g$a!dian so offending, and +eing the!eof lawf$lly con3icted +efo!e any two o! mo!e K$stices of the 2eace, o! +efo!e any othe! K$dge com2etent of the 2lace s$mma!ily, shall, fo! the s2ace of th!ee months. So$!ce% htt2%88www.elect!icscotland.com8histo!y8othe!82!osc!i2tionQ4<=<.htm

+ap of S,ottish ,lans $families- in the S,ottish ;ighlands and 1o5lands

British *mperialism in #orth America, Africa, and Asia in the +,--s and +.--s

The B!itish 0!my fights against the &!ench me!chants and thei! (ati3e 0me!ican (1ndian) allies d$!ing the &!ench and 1ndian Wa! (4<A=H4<IE). The B!itish Em2i!e (led +y B!itish East 1ndia Com2any) ac,$i!ed &!ench te!!ito!y east of the "ississi22i )i3e!, incl$ding :$e+ec. The B!itish East 1ndia Com2any, with the assistance of Ding *eo!ge 111 of *!eat B!itain, attem2ted to consolidate its cont!ol o3e! the colonies afte! 4<IE.

3ritish Troops land at 3oston ;ar#or in 1&69% fi:e 6ears after the ,on,l sion of the 2ren,h and Bndian War0 $,olored reprod ,tion of 1&69 engra:ing #6 =a l Re:ere-

Left 2ict$!e% 0me!ican colonists in Boston ta!!ed and feathe!ed B!itish ta collecto!s d$!ing the 4<I5s and ea!ly 4<<5s. )ight 2ict$!e% "em+e!s of the B!itish Pa!liament, on +ehalf of the Bank of England and the B!itish East 1ndia Com2any, 2assed The Stam2 0ct of 4<IA (also known as 9$ties in 0me!ican Colonies 0ct of 4<IA), Townshend 0cts of 4<I<, and the Tea 0ct of 4<<E in an attem2t to fo!ce the colonists to 2ay thei! fai! sha!e of de+t that was acc$m$lated d$!ing the &!ench and 1ndian Wa! and to fo!ce the colonists to acce2t the Bank of England +ank notes as the official c$!!ency instead of the colonial money that was widely $sed in the 4E English colonies.

>3 t in the s6stem of la5s 5hi,h has #een esta#lished for the management of o r Ameri,an and West Bndian ,olonies% the interest of the home ,ons mer has #een sa,rifi,ed to that of the prod ,er 5ith a more e8tra:agant prof sion than in all o r other ,ommer,ial reg lations0 A great empire has #een esta#lished for the sole p rpose of raising p a nation of , stomers 5ho sho ld #e o#liged to # 6 from the shops of o r different prod ,ers all the goods 5ith 5hi,h these ,o ld s ppl6 them0 2or the sa7e of that little enhan,ement of pri,e 5hi,h this monopol6 might afford o r prod ,ers% the home ,ons mers ha:e #een # rdened 5ith the 5hole e8pense of maintaining and defending that empire0 2or this p rpose% and for this p rpose onl6% in the t5o last 5ars% more than t5o h ndred millions ha:e #een spent% and a ne5 de#t of more than a h ndred and se:ent6 millions has #een ,ontra,ted o:er and a#o:e all that had #een e8pended for the same p rpose in former 5ars0 The interest of this debt alone is not only greater than the whole extraordinary profit which it ever could be pretended was made by the monopoly of the colony trade, but than the whole value of that trade, or than the whole value of the goods which at an average have been annually exported to the colonies. %t cannot be very difficult to determine who have been the contrivers of this whole mercantile system; not the consumers, we may believe, whose interest has been entirely neglected; but the producers, whose interest has been so carefully attended to; and among this latter class our merchants and manufacturers have been by far the principal architects. Bn the mer,antile reg lations% 5hi,h ha:e #een ta7en noti,e of in this ,hapter% the interest of o r man fa,t rers has #een most pe, liarl6 attended to@ and the interest% not so m ,h of the ,ons mers% as that of some other sets of prod ,ers% has #een sa,rifi,ed to it0A ( Wealth of Nations #6 Adam Smith% 3oo7 *% Chapter 9

The Boston "assac!e on "a!ch A, 4<<5. B!itish soldie!s m$!de!ed 0me!ican colonists on +ehalf of the B!itish East 1ndia Com2any, the Bank of England, and the #o$se of #ano3e!.

The Boston Tea Pa!ty was held in Boston on 9ecem+e! 4I, 4<<E. The B!itish Pa!liament im2osed ta es on tea and othe! me!chandises to 2ay fo! e 2enses !elated to the &!ench and 1ndian Wa! and to s$+sidi;e the B!itish East 1ndia Com2any, a co!2o!ation a$tho!i;ed +y the #o$se of #ano3e! to esta+lish t!ading 2osts (colonies) in 1ndia, 0f!ica, and (o!th 0me!ica.

6eads of (tate in ,**-

King 2rederi,7 BB of =r ssia $2rederi,7 the GreatReign% 31 +a6 1&*0 ( 1& A g st 1&96

Empress Catherine BB of R ssia $Catherine the GreatReign% / . l6 1&6) ( 1& ?o:em#er 1&/6

King George BBB of the Inited Kingdom Reign% )' G,to#er 1&60 ( )/ .an ar6 19)0

King 1o is SB4 of 2ran,e Reign% 10 +a6 1&&* ( )1 Septem#er 1&/)

King Charles BBB of Spain Reign% 10 A g st 1&'/ ( 1* Fe,em#er 1&99

King Christian 4BB of Fenmar7 Reign% 1* .an ar6 1&66 ( 13 +ar,h 1909

King G sta: BBB of S5eden Reign% 1) 2e#r ar6 1&&1 ( )/ +ar,h 1&/)

.oseph BB% ;ol6 Roman Emperor Reign% 19 A g st 1&6' ( )0 2e#r ar6 1&/0

King .oseph B of =ort gal Reign% 31 . l6 1&'0 ( )* 2e#r ar6 1&&&

King 4i,tor Amade s BBB of Sardinia QT rinR Reign% )0 2e#r ar6 1&&3 ( 16 G,to#er 1&/6

Al:ise Gio:anni +o,enigo Foge of 4eni,e $1&63-1&&9?ote: =aolo Renier 5as the Foge of 4eni,e $1&&/-1&9/-

2rederi,7 ?orth% )nd Earl of G ilford $1ord ?orth=rime +inister of Great 3ritain $)9 .an ar6 1&&0 ( )) +ar,h 1&9)and Chan,ellor of the E8,heH er $11 Sept0 1&6& ( )& +ar,h 1&9)-

A#d l ;amid B S ltan of the Gttoman Empire and Caliph of Bslam Reign% .an ar6 )1% 1&&* ( April &% 1&9/

!ianlong Emperor $Chien-l ng Emperor-% Emperor of China Reign% 9 G,to#er 1&3' ( / 2e#r ar6 1&/6

To7 ga5a Behar Edo Shog n Reign% 1&60-1&96

1eopold BB% Grand F 7e of T s,an6 Q2loren,eR Reign% 19 A g st 1&6' ( )) . l6 1&/0

King 2erdinand BBB of Si,il6 Q=alermoC?aplesR Reign% 6 G,to#er 1&'/ ( 9 Fe,em#er 1916-

=ope =i s 4B Reign% 1' 2e#r ar6 1&&' ( )/ A g st 1&//

King =eter BBB of =ort gal Reign% )* 2e#r ar6 1&&& ( )' +a6 1&96

StanisTa5 A g st =oniato5s7i% King of =oland Reign% 1&6*-1&/'

This 2ainting de2icts the fo!ces of B!itish "aKo! *ene!al Cha!les Co!nwallis, 4st "a!,$ess Co!nwallis (4<E7H475A) (who was not himself 2!esent at the s$!!ende!), s$!!ende!ing to &!ench and 0me!ican fo!ces afte! the Siege of ?o!ktown (Se2tem+e! 67, 4<74HOcto+e! 4>, 4<74) d$!ing the 0me!ican )e3ol$tiona!y Wa! on Octo+e! 4>, 4<74. The Fnited States go3e!nment commissioned T!$m+$ll to 2aint 2at!iotic 2aintings, incl$ding this 2iece, fo! them in 474<, 2aying fo! the 2iece in 4765.

O!iginal ca2tion% B0 J1EW of the BO"B0)9"E(T of &o!t "c#en!y, nea! Baltimo!e, +y the B!itish fleet taken f!om the O+se!3ato!y $nde! the Command of 0dmi!als Coch!ane @ Cock+$!n on the mo!ning of the 4Eth of Se2t 474= which lasted 6= ho$!s @ th!own f!om 4A55 to 4755 shells in the (ight attem2ted to land +y fo!cing a 2assage $2 the fe!!y +!anch +$t we!e !e2$lsed with g!eat loss.C

The death of Ca2tain 'ames Cook at Dealakek$a Bay, #awaii on 4= &e+ 4<<> 1n% G0 Collection of Joyages !o$nd the Wo!ld ... Ca2tain Cook.s &i!st, Second, Thi!d and Last Joyages ....G Jol$me J1, London, 4<>5, 2age 4>I>. (Photo% htt2%88www.2hotoli+.noaa.go38li+!a!y8li+!547>.htm)

The &o$nding of 0$st!alia on 6I 'an$a!y 4<77, +y Ca2tain 0!th$! Philli2 ).(. Sydney Co3e. 0n o!iginal 4>E< oil sketch +y 0lge!non Talmadge

The 2all of Admiral ;oratio ?elson d ring the 3attle of Trafalgar on )1 G,to#er 190'

3ritish Ca#inet +em#ers d ring the War of 191)

2obert Banks +enkinson, )nd $arl of 0iverpool =rime +inister of the Inited Kingdom $. ne 9% 191)(April /% 19)&-@ 1eader of the ;o se of 1ords $1903-1906% 190&-19)&-

4icholas >ansittart, ,st Baron Bexley Chan,ellor of the E8,heH er $+a6 1)% 191)(.an ar6 31% 19)3-

2obert (tewart, )nd ?arquess of 0ondonderry 80ord Castlereagh: 2oreign Se,retar6 QSe,retar6 of State for 2oreign AffairsR $191)-19))-@ 1eader of the ;o se of Commons $191)-19))-

illiam ?anning 8,*-@9,A@B:% Go:ernor of the 3an7 of England $191)-191*-% Fep t6 Go:ernor of the 3an7 of England $1910-191)-% Fire,tor of the 3an7 of England $1&/)-1910% 191*-1931-@ =resident of 1ondon 1ife Ass ran,e $191&-@ +em#er of =arliament $1&/*-19)0% 19)1-1930- $=ainting: 33C$So r,e: http:CC5550histor6ofparliamentonline0orgC:ol meC1&/0-19)0Cmem#erCmanning-5illiam-1&63-193'-

&ield "a!shal 0!th$! Wellesley, 4st 9$ke of Wellington, a22ea!s at the Battle of Wate!loo in Belgi$m in '$ne 474A. "he /uke of 0ellington served as the 1rime Minister of Great Britain from +.2. to +.3- and for less than a month in +.34)

<rom the 'rassy #noll in 0ondonC 0one 'unman or &atsyD
The Assassination of 3ritish =rime +inister Spen,er =er,e:al in the ;o se of Commons in 1ondon on +a6 11% 191)

Spen,er =er,e:al $?o:em#er 1% 1&6)(+a6 11% 191)=rime +inister of the Inited Kingdom of Great 3ritain $G,to#er *% 190/(+a6 11% 191)-% Chan,ellor of the E8,heH er $+ar,h )6% 190&(+a6 11% 191)-% and Attorne6 General for England and Wales $190)-1906-

;%Em !ust a patsyF= British &rime ?inister (pencer &erceval was assassinated by a ;lone gunman= in the 6ouse of Commons in 0ondon on ?ay ,,, ,A,). 3ritish # sinessman .ohn 3ellingham $left- shoots =rime +inister =er,e:al in the ,hest 5ith a pistol inside the ;o se of Commons in 1ondon on the e:ening of +a6 11% 191)0 .ohn 3ellingham% 5ho spent se:eral 6ears in a R ssian prison% 5as tried and ,on:i,ted for m rder% and 3ellingham 5as e8e, ted #6 hanging in 1ondon on +a6 19% 191)0 The ar of ,A,), a war fought between 'reat Britain and the "nited (tates of 3merica, lasted from +une ,A, ,A,) to <ebruary ,A, ,A,B.

Why Spencer Perceval Had to Die by 3ndro 0inklater G review
There is an intrig ing ne5 theor6 on 3ritain<s onl6 prime ministerial assassination% 5hi,h too7 pla,e )00 6ears ago toda6 36 .ohn 3arrell The G ardian% 2rida6 11 +a6 )01) 0*000 EFT ;igh on a 5all in Westminster A##e6% in an6thing # t pride of pla,e% is Ri,hard Westma,ott<s mon ment to Spen,er =er,e:al% 5ho% )00 6ears ago toda6% 5as shot dead in the ;o se of Commons% the onl6 3ritish prime minister so far to ha:e died #6 assassination0 The memorial 5as Nere,ted #6 the =rin,e Regent and parliamentN% and perhaps it 5o ld ha:e #een gi:en a more prominent position if the prin,e had not #een a late and rel ,tant s pporter of =er,e:al<s ministr60 ;is straitla,ed e:angeli,al premier had #een espe,iall6 nhelpf l in the matter of =rin,ess Caroline% the notorio s s pposed ad lteress0 Reasona#l6 eno gh% =er,e:al regarded her as m ,h more sinned against than sinning and% #6 some s7illf l moral #la,7mail% had for,ed the prin,e to re,ei:e her again as his 5ife0 3 t then again% had the mon ment #een more :isi#le% its oddl6 am#ig o s message 5o ld ha:e #een more a575ardl6 legi#le0 Bt ,onsists in part of a relief depi,ting the s,ene a moment after the shooting0 =er,e:al% dead or d6ing% is s pported #6 t5o of his politi,al allies in the ,ampaign for the a#olition of the sla:e trade0 Gathered ro nd are :ario s other politi,ians% sho,7ed and sorro5f l@ # t it is the assassin% .ohn 3ellingham% 5ho ,ommands o r attention0 Taller than e:er6one else% he has the #earing of a man ,ons,io s of ha:ing performed an a,t of shining :irt e% a good deed in a na ght6 5orld0 ;e is nder arrest% # t ,learl6 has no intention of es,aping% is H ite 5illing to ta7e responsi#ilit6 for 5hat he has done0 Bt is hard to es,ape the ,on,l sion that Westma,ott% or the prin,e% or =er,e:al<s s ,,essor% 1ord 1i:erpool% 5as s ggesting that #et5een the pio s =er,e:al and his ,old-#looded assassin there 5as something to #e said on #oth sides0 The p #li, 5as less fairminded0 3ritain 5as in deep re,ession% for 5hi,h =er,e:al 5as #lamed@ the ne5s of his m rder 5as greeted 5ith E #ilation all o:er 1ondon% and soon all o:er 3ritain0 3ellingham% for the 5ee7 of life he had left% #e,ame a ,ele#rit6% almost a hero0 Bn front of the relief lies a larger s, lpt re of =er,e:al dead% and at his head sits the allegori,al fig re of =o5er% mo rning her protPgP% 5ho had e8er,ised his offi,e 5ith the tter single-mindedness of one 5ho 7no5s that there is no alternati:e to his poli,ies0 N;e 5as a #itter perse, tor%N remar7ed his politi,al opponent 1ord ;olland% Nof s ,h politi,al and religio s prin,iples as he% 5itho t m ,h painf l inH ir6 or dispassionate refle,tion% disappro:ed0N At =er,e:al<s feet stand t5o more allegori,al fig res% 5eeping for his death0 Gne of them is Tr th% Nn da :eritasN% stripped to the 5aist to sho5 that she has nothing to hide% # t #6 a E di,io s positioning of her left arm managing to hide that nothing from s0 Andro 1in7later #elie:es that the f ll tr th a#o t the assassination has al5a6s #een hidden% and has 5ritten this #oo7 to e8plain 5h6 =er,e:al had to die0 Bn the pro,ess he offers a fas,inating a,,o nt of =er,e:al<s enigmati,all6 simple ,hara,ter and ,raft6 politi,s0 3ellingham insisted there 5as no m6ster6 a#o t 5hat he had done% no se,ret a,,ompli,e% no moti:e other than the one he 5as onl6 too 5illing to de,lare% to e:er6one% at length: e:en on the s,affold% standing on the trapdoor 5ith the rope a,t all6 ro nd his ne,7% he started e8plaining it to the ,haplain of ?e5gate0 ;e 5as a mer,hant from 1i:erpool 5ho had #e,ome in:ol:ed in the trade 5ith R ssia% and at the port of Ar,hangel% no5 7no5n as Ar7hangels7% had #een imprisoned for a fra d he did not ,ommit0 ;e lost there#6 a s m amo nting to man6 h ndreds of tho sands of po nds in toda6<s mone60 ;e had appealed for help to the 3ritish am#assador in St =eters# rg% 5ho passed the ,ase on to the ,ons l% 5ho did little to help0 Th s% 5hen e:ent all6 released and #a,7 in 3ritain% 3ellingham regarded the go:ernment as morall6 #o nd to indemnif6 him for his losses@ the f t re of his 5ife and ,hildren depended on the re,o:er6 of the amo nt he had lost0 %t was the right of every man, Bellingham believed, to petition parliament for the redress of grievances, but &erceval insisted that the government had no obligation to recompense him, and refused to receive his petition. G#:io sl6 eno gh% or so it seemed to 3ellingham% his onl6 remaining ,han,e of a remed6 5as to 7ill the prime minister0 ;e had no personal gr dge against =er,e:al@ to 7ill him 5o ld #e a simple a,t of E sti,e@ and 5hen at his trial he e8plained the reasons for his a,tion% he 5o ld of ,o rse #e a,H itted and indemnified0 ;is ,o nsel pleaded that he 5as insane% # t 3ellingham 5o ld ha:e none of it: in his position% an6one 5o ld ha:e done 5hat he did0 The la5 offi,ers% determined to hang 3ellingham in short order% p t him on trial a 5ee7 after the 7illing0 The6 did not 5ant to 5aste time loo7ing for a,,ompli,es% and agreed 5ith 3ellingham that he 5as H ite sane0 The6 prod ,ed e:iden,e to sho5 ho5% 5ee7s #efore% he had #o ght pistols% had a se,ret po,7et made in his ,oat to ,on,eal one of them% and had sat in the p #li, galler6 of the Commons% st d6ing =er,e:al so there 5o ld #e no ,han,e of 7illing the 5rong man0 S rel6 these 5ere the a,tions of a sane man a,ting 5ith mali,e aforetho ghtK ?ot so% replied 3ellingham: he had ,ertainl6 a,ted 5ith foretho ght% li7e an e8e, tioner% # t not 5ith mali,e0 ;e 5as no m rderer0

1in7later does not do #t that 3ellingham 5as sin,ere in insisting that he had a,ted alone% and for the reasons he ga:e0 3 t 3ellingham% he s ggests% 5as also the n7no5ing instr ment of more po5erf l for,es% 5ith :astl6 more to gain than 3ellingham #6 the death of =er,e:al0 The arg ment that s stains this ,laim is ingenio s and almost ,on:in,ing0 =er,e:al 5as shot on the da6 the Commons 5as de#ating a motion #6 ;enr6 3ro gham to res,ind the notorio s Norders in ,o n,ilN% the ,hief plan7 in =er,e:al<s poli,6 for the defeat of ?apoleon0 Bn 1906 ?apoleon had attempted to impose the N,ontinental s6stemN% 5hi,h for#ade the allies of 2ran,e% and the nations ,onH ered #6 ?apoleon% to trade 5ith 3ritain and Breland0 The orders in ,o n,il 5ere =er,e:al<s retaliation: as 5ell as #anning trade 5ith 2ran,e and its allies% the6 for#ade ne tral nations to trade 5ith 2ran,e% and ga:e the 3ritish na:6 the pretended right to #oard all ne tral ships in sear,h of goods destined for 2ran,e0 ?apoleon responded 5ith de,rees against ne tral ships sailing to IK ports% and the IS ena,ted an em#argo on trade 5ith all the #elligerent nations0 By the end of ,A,,, a deep recession and credit crunch had settled over $urope and 4orth 3merica. The value of British exports and imports had fallen by *BH. 0iverpool was especially hard9hit, for it had lost much by the collapse of the slave trade and was now hugely dependent on trade with the "(, half of which passed through its port. That trade too had no5 ,ollapsed% and 5ith it the in,reasingl6 :al a#le stream #et5een R ssia and the States% 5hi,h also 5ent thro gh 1i:erpool from Ar,hangel% the onl6 R ssian port 2ran,e ,o ld not #lo,7ade0 Bn Washington there 5ere ,alls for 5ar 5ith 3ritain% 5hi,h ,ame% after =er,e:al<s death% in 191)0 Bn 3ritain there 5ere demands from mer,hants% shippers% man fa,t rers and 5or7ers for the orders in ,o n,il to #e res,inded0 2e5 do #ted that =er,e:al 5o ld resist% and that the orders 5o ld sta6 in pla,e ntil ?apoleon 5as defeated or =er,e:al ,eased to #e prime minister ( #oth apparentl6 distant prospe,ts0 When 3ro gham proposed his motion% =er,e:al sta6ed a5a6% # t 5as noisil6 s mmoned to the Commons to defend his poli,6% and 5as on his 5a6 to the ,ham#er 5hen 3ellingham shot him at point-#lan7 range0 A month later 1ord 1i:erpool% of all appropriate titles% #e,ame prime minister% the orders in ,o n,il Ne:aporatedN% and the e,onom6 #egan to re,o:er0 Bellingham had been in 0ondon since +anuary, attempting to present his petitions and then preparing the assassination. By the end of that month he was flat broke, but from <ebruary, his accounts suggest, he was reasonably flush. 0inklater believes that he was being funded by two men, closely associatedC Thomas ilson, a 0ondon merchant and banker to the trade with 2ussia, and $lisha &eck, an 3merican businessman resident in 0iverpool, men with fortunes to lose if the orders in council continued in force, and with every reason to wish &erceval dead. Gne or #oth ma6 ha:e #een emplo6ing 3ellingham% in a small 5a6% as their agent@ #oth 5o ld pro#a#l6 ha:e heard him de,lare that if =er,e:al did not ma7e him proper restit tion% he 5o ld 7ill the premier0 3oth had e:er6 reason to f nd 3ellingham ntil he 5as dri:en to ma7e his attempt% 5itho t 3ellingham e:er nderstanding ho5 the6 5ere sing him0 1in7later<s e:iden,e for this a,,o nt is intrig ing% tho gh here and there it has to depend on ,onEe,t res that% in the spa,e of a page or so% are 5ished into hard fa,ts0 ;is ,ase is impossi#le to pro:e% # t too pla si#le and too m ,h f n to ignore0

.ohn 3arrell<s The Spirit of Despotism In!asions of "ri!acy in the #$%&s is p #lished #6 GI=0
So r,e: http:CC5550theg ardian0,omC#oo7sC)01)Cma6C11C5h6-spen,er-per,e:al-andro-lin7later-re:ie5

A pamphlet on the Trial of .ohn 3ellingham

Crimean

ar, %mperial $xpansion, I The 2ise of the 2othschilds

0ionel 4athan de 2othschild $1909-19&/- is introd ,ed in the ;o se of Commons on )6 . l6 19'9 #6 1ord .ohn R ssell and +r0 A#el Smith0 $A painting #6 ;enr6 3arra d0 19&)- $The Roths,hild Ar,hi:e-

Left to !ight% B!itish P!ime "iniste! BenKamin 9is!aeli, B!itish P!ime "iniste! Jisco$nt Palme!ston L#en!y 'ohn Tem2leM, and Ba!on Lionel (athan de )othschild of London

The C!imean Wa!, which lasted f!om 47AE to 47AI, was fo$ght +etween the )$ssian Em2i!e and the allied E$!o2ean and T$!kic 2owe!s B!itish Em2i!e, &!ench Em2i!e, and Ottoman Em2i!e. (Painting% %he &iege of &e"astopol +y &!an; )o$+a$d (4>5=).

0ngloHR$l$ Wa! in 47<>

3ritish =rime +inister 3enEamin Fisraeli $si8th from left-% German6Ms Chan,ellor Gtto :on 3ismar,7 $,enter-% R ssian delegates% and T r7ish delegates attend the Congress of 3erlin in 3erlin% German6 from . ne 13% 19&9 to . l6 13% 19&90

The Be!lin Confe!ence on 0f!ica (also known as Congo Confe!ence) takes 2lace in Be!lin, *e!many in 477=. E$!o2ean colonial 2owe!s met in Be!lin to disc$ss the E$!o2ean coloni;ation and occ$2ation of the 0f!ican continent. *!eat B!itain esta+lished its colonies in 2!esentHday So$th 0f!ica, Rim+a+we, Ram+ia, "alawi, Egy2t, S$dan, Denya, Tan;ania, and (ige!ia.

3ritish Fignitaries d ring World War B

1ord Walter Roths,hild% 1ord Arth r .0 3alfo r% 1ord George ?athaniel C r"on% 1ord Alred +ilner% 1ord Ro#ert Ce,il

Fa:id 1lo6d George% Gen0 .an Christian Sm ts% Winston Ch r,hill% R f s Bsaa,s% Sir William Wiseman =rominent 3ritish Fignitaries d ring World War B:
Ding *eo!ge J of *!eat B!itain Lionel Walte! )othschild, 6nd Ba!on )othschild 9a3id Lloyd *eo!ge 0nd!ew Bone! Law Lo!d 0!th$! '. Balfo$! Lo!d *eo!ge (athaniel C$!;on, 4st "a!,$ess C$!;on of Dedleston Lo!d 0lf!ed "ilne! Lo!d )o+e!t Cecil *en. 'an Ch!istian Sm$ts Winston Ch$!chill "a$!ice P.0. #ankey Si! #e!+e!t Sam$el Waldo!f 0sto!, 6nd Jisco$nt 0sto! William *. 0. O!ms+yH*o!e (Ba!on #a!lech) 'ohn 0. Simon (Jisco$nt Simon) Si! 0!th$! SteelH"aitland Leo2old 0me!y #e!+e!t 0l+e!t La$!ens &ishe! )$f$s 1saacs, 4st "a!,$ess of )eading &!ede!ick Thesige! (Jisco$nt Chelmsfo!d) Edwin Sam$el "ontag$ Phili2 #. De!! (Lo!d Lothian) *eoff!ey 9awson Si! 'ohn #an+$!yHWilliams Si! *eo!ge "ansfield SmithHC$mming Si! William Wiseman, 45th Ba!onet Ding of the Fnited Dingdom of *!eat B!itain ("ay I, 4>45-'an$a!y 65, 4>EI) Ba!on )othschild LPee!age of the Fnited DingdomM (4>4AH4>E<) P!ime "iniste! of *!eat B!itain (9ecem+e! <, 4>4IHOcto+e! 66, 4>66) Chancello! of the E che,$e! (02!il 46, 4>57H"ay 6A, 4>4A) Chancello! of the E che,$e! (9ecem+e! 45, 4>4IH'an$a!y 45, 4>4>) &o!eign Sec!eta!y of *!eat B!itain (4>4IH4>4>) Leade! of the #o$se of Lo!ds (4>4IH4>6=)N &o!eign Sec!eta!y of *!eat B!itain (4>4>H4>6=) "iniste! Witho$t Po!tfolio (4>4IH4>47)N Sec!eta!y of State fo! Wa! (02!il 47, 4>47H'an$a!y 45, 4>4>) "iniste! of Blockade (4>4IH4>47)N "em+e! of Pa!liament (4>5IH4>6E) 9efense "iniste! of So$th 0f!ica (4>45H4>65)N "iniste! Witho$t Po!tfolio LB!itainM (4>4<H4>4>) "iniste! of "$nitions ('$ly 4<, 4>4<H'an$a!y 45, 4>4>) Sec!eta!y of the Ca+inet (4>4IH4>E7) "em+e! of Pa!liament (4>56H4>47, 4>6>H4>EA)N Postmaste! *ene!al of the Fnited Dingdom (4>45H4>4=, 4>4AH4>4I) "em+e! of Pa!liament (4>45H4>4>)N "em+e! of the #o$se of Lo!ds (4>4>H4>A6) "em+e! of Pa!liament (4>45H4>E7) "em+e! of Pa!liament (4>5IH4>47, 4>66H4>=5) "em+e! of Pa!liament (4>45H4>EA) "em+e! of Pa!liament (4>45H4>==) "em+e! of Pa!liament (4>4IH4>6I)N P!esident of the Boa!d of Ed$cation (4>4IH4>66) B!itish 0m+assado! to the Fnited States (4>47H4>4>)N Lo!d Chief '$stice of England (4>4EH4>64) Jice!oy of 1ndia (02!il =, 4>4IH02!il 6, 4>64) Sec!eta!y of State fo! 1ndia ('$ly 4<, 4>4<H"a!ch 4>, 4>66) Edito! of %he Ro!nd %a le (4>45H4>4I) Edito! of %he %imes of London (4>46H4>4>, 4>66H4>=4) Chief of the B!itish "ilita!y "ission to )$ssia (4>4=H4>4<) Chief of the Sec!et 1ntelligence Se!3ice L"1IM (4>5>H4>6E) Chief of B!itish 1ntelligence Office in F.S.0. (4>4<)N Pa!tne! of D$hn, Loe+ @ Co. (4>6>H4>I6)

The Bmperial War Ca#inet of 1/1& Gro p =ortrait in 1ondon in 1/1&0 2ront ro5% left to right: +r0 Arth r ;enderson% 1ord +ilner% 1ord C r"on% +r0 3onar 1a5% =rime +inister Fa:id 1lo6d George% Sir Ro#ert 3orden% +r0 W0 20 +asse6% Gen0 .an Christian Sm ts0 +iddle ro5% left to right: Sir S0=0 Sinha% +aharaEa of 3i7aner% Sir .0 +eston% +r0 A sten Cham#erlain% 1ord Ro#ert Ce,il% +r0 Walter 1ong% Sir .oseph Ward% Sir George =arle6% +r0 Ro#ert Rogers% +r0 .0F0 ;a"en0 3a,7 ro5: Capt0 10S0 Amer6% Adm0 .elli,oe% 1t0 Col0 Sir +a ri,e ;an7e6% +r0 ;enr6 1am#ert% and +aEor Storr0 $Bmage: U ; lton-Fe ts,h Colle,tionCCGR3BS-

3ritish politi,ians d ring World War BB% left to right: ?e:ille Cham#erlain% Winston Ch r,hill% and Anthon6 Eden

The B!itish Wa! Ca+inet 2ose fo! a g!o$2 2o!t!ait in London on (o3em+e! 7, 4>E>, d$!ing the +eginning of Wo!ld Wa! 11. Left to !ight, standing% #ome Sec!eta!y, Si! 'ohn 0nde!sonN "iniste! witho$t Po!tfolio, Lo!d #ankeyN Sec!eta!y of State fo! Wa!, "!. Leslie #o!eHBelishaN &i!st Lo!d of the 0dmi!alty, "!. Winston Ch$!chillN Sec!eta!y of State fo! 0i!, Si! Dingsley WoodN Sec!eta!y of State fo! 9ominion 0ffai!s, "!. 0nthony EdenN and Sec!eta!y to the Wa! Ca+inet, Si! Edwa!d B!idges. Seated, left to !ight% &o!eign Sec!eta!y, Lo!d #alifa N Chancello! of the E che,$e!, Si! 'ohn SimonN P!ime "iniste!, "!. (e3ille Cham+e!lainN Lo!d P!i3y Seal, Si! Sam$el #oa!eN and "iniste! fo! CoHo!dination fo! 9efence, Lo!d Chatfield. (1mage% S #$ltonH9e$tsch Collection8CO)B1S)

The Wa! Ca+inet and ministe!s 2ose in a s2ecial 2hotog!a2h taken at (o. 45 9owning St!eet in London on Octo+e! 4I, 4>=4. Left to !ight (Sitting)%H "!. E!nest Be3in, Lo!d Bea3e!+!ook, Si! 0nthony Eden, "aKo! C. 0ttlee, Si! Winston Ch$!chill, Si! 'ohn 0nde!son, "!. 0!th$! *!eenwood and Si! Dingsley Wood. (Standing)% H Si! 0!chi+ald Sinclai!, "!. 0 J 0le ande!, Lo!d C!an+o$!ne, "!. #e!+e!t "o!!ison, Lo!d "oyne, Ca2tain "a!gesson, and "!. B!endan B!acken. (1mage% S #$ltonH9e$tsch Collection8CO)B1S)

British *mperialism in the Middle &ast

B!itish Colonial Sec!eta!y Winston Ch$!chill a22ea!s with othe! B!itish dignita!ies at the Cai!o Confe!ence of 4>64 in Cai!o, Egy2t. B!itish #igh Commissione! to Palestine #e!+e!t Sam$el is seated to Ch$!chill/s !ight. T.E. Law!ence (Law!ence of 0!a+ia) a22ea!s on the second !ow, fo$!th f!om !ight. *!eat B!itain Badministe!edC the c!own colonies of Egy2t, Palestine (1s!ael), T!ansKo!dan ('o!dan), "eso2otamia (1!a,), 0den (?emen), D$wait, and S$dan. The Ottoman Em2i!e go3e!ned the "iddle East, incl$ding the te!!ito!ies of what a!e now 1!a,, Sy!ia, Le+anon, 'o!dan, and 1s!ael +efo!e Wo!ld Wa! 1. *!eat B!itain con,$e!ed the 0!a+ic 2a!t of the "iddle East f!om the Ottoman T$!ks d$!ing Wo!ld Wa! 1. &!ance Badministe!edC Le+anon and Sy!ia while *!eat B!itain Badministe!edC "eso2otamia (1!a,) and Palestine ('o!dan and 1s!ael). The B!itish go3e!nment 2a!titioned its c!own colony of Palestine into two colonies in 4>6EN the te!!ito!y of Palestine east of the 'o!dan )i3e! +ecame T!ansKo!dan while the te!!ito!y of Palestine west of the 'o!dan )i3e! !emained Palestine. The B!itish go3e!nment wo$ld install Emi! 0+d$llah as the new king of the 2$22et state of T!ansKo!dan in 4>6E. Ding &aisal 1 of 1!a, was the Ding of the 0!a+ Dingdom of Sy!ia f!om "a!ch 44, 4>65 $ntil he was de2osed +y the &!ench a!my on '$ly 6A, 4>65. Ding &aisal 1 of 1!a, was the Ding of 1!a, f!om 0$g$st 6E, 4>64 $ntil his death in Be!n, Swit;e!land on Se2tem+e! 7, 4>EE. Ding &aisal 1 of 1!a, died of a hea!t attackN Ding &aisal 1 of 1!a, was a lifelong smoke! of ciga!ettes.

Emi! &aisal (late! Ding &aisal 1 of 1!a,) and his delegates a22ea! at the Pa!is Peace Confe!ence in 4>4>. &!om left to !ight% )$st$m #aide!, ($!i asHSaid, Emi! &aisal, Ca2tain Pisani (+ehind &eisal), T.E. Law!ence, &eisal/s sla3e (name $nknown), and Ca2tain Tahsin :ad!i.

The new e!a in Palestine. The a!!i3al at the 4>65 Cai!o Confe!ence of Si! #e!+e!t Sam$el, #.B.". high commissione!, etc. Col. T.E. Law!ence (BLaw!ence of 0!a+iaC) (left), Emi! 0+d$llah, 0i! "a!shal Si! *eoff!ey Salmond and Si! Wyndham 9eedes. (Photo% Li+!a!y of Cong!ess)

Emi! 0+d$llah (late! Ding 0+d$llah 1 of 'o!dan) stands +eside Si! #e!+e!t Sam$el (47<>H4>IE), the B!itish #igh Commissione! of Palestine, at the 'e!$salem Confe!ence in 'e!$salem, B!itish Palestine on "a!ch 67, 4>64. The man on the fa! !ight is Winston Ch$!chill, Sec!eta!y of State fo! the B!itish colonies. 0lso a22ea!ing in the 2hoto a!e "!s. Ch$!chill, "!s. Sam$el, *ene!al *hale+ Pasha Sha/alan, Colonel &$/ad Sleem, and Colonel 0!ef 0lH#assan. The B!itish go3e!nment installed Emi! 0+d$llah as Ding of the 2$22et state of T!ansKo!dan in 4>6E. The B!itish go3e!nment 2a!titioned its c!own colony of Palestine into two colonies in 4>6EN the Palestine te!!ito!y east of the 'o!dan )i3e! +ecame T!ansKo!dan while the Palestine te!!ito!y west of the 'o!dan )i3e! !emained Palestine.

1ist of ;igh Commissioners to the 3ritish +andate of BraH: Sir =er,6 Va,hariah Co8 $1 G,to#er 1/)0 ( * +a6 1/)3Sir ;enr6 Ro#ert Con5a6 Fo##s $* +a6 1/)3 ( G,to#er 1/)9Sir Gil#ert 2al7ingham Cla6ton $G,to#er 1/)9 ( 11 Septem#er 1/)/Sir 2ran,is ;enr6 ; mphr6s $3 G,to#er 1/)/ ( 3 G,to#er 1/3)1ist of ;igh Commissioners to the 3ritish +andate of =alestine: Sir ;er#ert 1o is Sam el $1 . l6 1/)0 (30 . ne 1/)'Sir Gil#ert 2al7ingham Cla6ton $a,ting- $1/)';er#ert Charles Gnslo5 =l mer% 3aron =l mer $)' A g st 1/)' ( A g st 1/)9Sir ;arr6 Charles 1 7e $a,ting- $A g st 1/)9 ( 6 Fe,em#er 1/)9Sir .ohn Ro#ert Chan,ellor $6 Fe,em#er 1/)9 ( 1/31+ar7 Ait,hison Jo ng $a,ting- $1/31-1/3)Sir Arth r Grenfell Wa ,hope $1/3) ( Septem#er 1/3&William Fenis 3attershill $a,ting- $Septem#er 1/3& ( +ar,h 1/39Sir ;arold Alfred +a,+i,hael $3 +ar,h 1/39 ( 3 Septem#er 1/**.ohn Standish S rtees =rendergast 4ere7er% 4is,o nt Gort $3 Septem#er 1/** ( )1 ?o:em#er 1/*'Sir Alan Gordon C nningham $)1 ?o:em#er 1/*' ( 1* +a6 1/*9-

B!itish t!oo2s ente! Baghdad on "a!ch 44, 4>4<. The 0!a+s of Baghdad and (aKaf (a city in the 2!o3ince of "eso2otamia, late! 1!a,) !e3olted against B!itish !$le in 4>65 $ntil the B!itish go3e!nment s$22!essed the !e3olt $sing ai!2lanes.

Ding 1+n Sa$d of Sa$di 0!a+ia (left) meets with Si! Pe!cy Co , the B!itish #igh Commissione! of 1!a,. (Photo% ' (eace %o End 'll (eace +y 9a3id &!omkin)

B!itish &ield "a!shal Edm$nd 0llen+y ente!s 'e!$salem on 9ecem+e! 44, 4>4<, afte! ca2t$!ing the city f!om the Ottoman T$!ks.

T#E B0L&OF) 9ECL0)0T1O( )oreign *ffice +o"em er ,nd- 191. /ear 0ord Rothschild1 ha"e m!ch pleas!re in con"eying to yo!- on ehalf of His 2a3esty4s 5o"ernment- the follo$ing declaration of sympathy $ith 6e$ish 7ionist aspirations $hich has een s! mitted to- and appro"ed y- the Ca inet# CHis 2a3esty4s 5o"ernment "ie$ $ith fa"o!r the esta lishment in (alestine of a national home for the 6e$ish peopleand $ill !se their est endea"o!rs to facilitate the achie"ement of this o 3ect- it eing clearly !nderstood that nothing shall e done $hich may pre3!dice the ci"il and religio!s rights of e8isting non96e$ish comm!nities in (alestine- or the rights and political stat!s en3oyed y 6e$s in any other co!ntry#: 1 sho!ld e gratef!l if yo! $o!ld ring this declaration to the kno$ledge of the 7ionist )ederation# ;o!rs sincerely'rth!r 6ames Balfo!r

3aron Edmond de Roths,hild meets 5ith Sir ;er#ert Sam el% the first 3ritish ;igh Commissioner of =alestine0 $So r,e: "ictorial History of Israel #6 .a,o# A0 R #in and +e6er 3ar7ai-

1ord Arth r .ames 3alfo r :isits Tel A:i: in 1/)00 3ritish .e5ish Vionist leader Chaim Wei"mann is seen standing to the left of 1ord 3alfo r0 $So r,e: "ictorial History of Israel #6 .a,o# A0 R #in and +e6er 3ar7ai-

A map of 3ritish =alestine d ring the 1/)0s0 The 3ritish go:ernment partitioned its >mandateA of 3ritish =alestine in 1/)3@ 3ritish =alestine east of the .ordan Ri:er #e,ame TransEordan 5hile 3ritish =alestine 5est of the .ordan Ri:er remained 3ritish =alestine0

Sir ;er#ert Sam el $left- 5as a 3ritish .e5ish politi,ian% a +em#er of =arliament% and a Vionist 5ho ser:ed as the ;igh Commissioner of =alestine from . l6 1% 1/)0 to . ne 30% 1/)'0 Sir ;er#ert Sam el ,hose ;aE Amin Al-; sseini as the Grand + fti of .er salem in 1/)1@ ;aE Amin Al-; sseini 5as a ?a"i ,olla#orator d ring World War BB0 The =alestine Ensign $right- 5as flo5n #6 ships registered in the 3ritish +andate territor6 from the late 1/)0s ntil 1/*90

Sir ;arold Alfred +a,+i,hael 5as the ;igh Commissioner of the 3ritish +andate of =alestine from +ar,h 3% 1/39 to Septem#er 3% 1/**0 $=hoto: 1i#rar6 of Congress-

A =alestinian passport from the era of 3ritish +andate for =alestine $=hoto: http:CCen05i7ipedia0orgC5i7iC2ile:3ritishD+andateD=alestinianDpassport0Epg-

This 2hotog!a2h was 2$+lished in Ba!net Lit3inoffTs +ook <ei=mann: 0ast of the (atriarchs.

Chaim Wei;mann talks to Lo!d #e!+e!t Sam$el. This 2hoto was 2$+lished in Ba!net Lit3inoffTs +ook <ei=mann: 0ast of the (atriarchs.

3ritish troops o#ser:e 3aghdad% BraH on . ne 11% 1/*10 The 3ritish arm6 in:aded BraH #eginning on +a6 )% 1/*1 to o:erthro5 the pro-?a"i BraHi =rime +inister Rashid Ali al-Gailani and to se, re the oil fields in BraH0 $=hoto: ?o0 E 3*6* from the Bmperial War + se m ,olle,tion-

The 3ritish arm6 $a#o:e- and the So:iet Red Arm6 in:ade Bran #eginning on A g st )'% 1/*1% E st t5o 5ee7s after 3ritish =rime +inister Winston Ch r,hill met 5ith I0S0 =resident 2ran7lin Felano Roose:elt a#oard ;+S "rince of Wales in ?e5fo ndland0 3ritain and So:iet Inion pro,eeded to remo:e Shah Re"a =ahla:i on Septem#er 16% 1/*1 and installed the ShahMs son +ohammad Re"a =ahla:i $the >ShahA 5ho 5o ld e:a, ate to Ameri,a in 1/&/-0 3ritain and So:iet Inion in:aded Bran to se, re a s ppl6 line from the =ersian G lf to So:iet R ssia and to se, re BranMs oil for Allied militar6 needs0 $So r,e: Catherine 1egrand% .a,H es 1egrand: Shah-i Bran0 Creati:e = #lishing Bnternational $2arsi edition-% +inneton7a% +? 1///% S0 *10 BRCRR- http:CCen05i7ipedia0orgC5i7iC2ile:3rtitishtroopsiran0Epg

B!itish P!ime "iniste! Winston Ch$!chill has a dinne! with Ding 1+n Sa$d at the 0$+e!ge #otel on Lake Da!o$n nea! Cai!o, Egy2t in &e+!$a!y 4>=A.

"he /ecline of the British &mpire

)$ins of +$ildings stand in the city of 9$+lin, 1!eland, following the Sinn &ein )e3olt in 4>4I. 1!eland was a te!!ito!y of the Fnited Dingdom of *!eat B!itain Land 1!elandM in 4>4I. 1!eland was Binde2endentC (and a mem+e! of the B!itish Commonwealth) in 4>64N 1!eland +ecame an inde2endent !e2$+lic in 4>=>. *!eat B!itain anne ed 1!eland in 4755. (SSean Se ton Collection8CO)B1S)

B!itish t!oo2s a!med with machine g$ns and !ifles stand +ehind a mo3ea+le +a!!icade com2osed of ho$sehold f$!nit$!e and which co$ld easily +e 2$shed fo!wa!d, in a st!eet in the cent!al section of 9$+lin, 1!eland on "ay 44, 4>4I d$!ing the Easte! )e+ellion (Sinn &ein )e3olt). (S Bettmann8CO)B1S)

9$+lin Post Office +$!ned o$t +y B!itish a!tille!y when 1!ish nationalists sei;ed cont!ol of it d$!ing the Easte! F2!ising in 4>4I. (Time Life)

Sinn &ein Leade!s 2ose fo! a g!o$2 2hoto at &i!st 9ail Ei!eann in 1!eland 'an$a!y 64, 4>4>. Left to !ight, 4st !ow% La$!ence *inell, "ichael Collins (leade! of the 1!ish )e2$+lican 0!my), Cathal B!$gha, 0!th$! *!iffiths (fo$nde! of Sinn &ein), Eamon de Jale!a (2!esident of the 1!ish )e2$+lic), Co$nt Pl$nkett, Eoin "ac(eill, William Cosg!a3e, E!nest BlytheN 6nd !ow% P.'. "oloney, Te!ence "cSwiney (Lo!d "ayo! of 9$+lin), )icha!d "$lcahy, 'ose2h O.9ohe!ty, '. O."ahoney, 'ames 9olan, '.P. "c*$innes, Pat!ick O.Deeffe, "ichael Staines, 'ose2h "c*!ath, 9!. B!yan C$sack, Liam de )oiste, W. Coli3et, )e3. &athe! "ichael O.&lanagan (3iceH2!esident of Sinn &ein)N E!d !ow% Pete! Wa!d, 0. "cCa+e, 9esmond &it;*e!ald, 'ose2h Sweeney, 9!. #ayes, C. Collins, Pad!aig O."aille, '. O."a!a, B!yan O.#iggins, Seam$s B$!ke, De3in O.#igginsN =th !ow% '. "c9onagh, Sean "acEnteeN Ath !ow% P. Beasely, )o+e!t Ba!ton, Pete! *alliganN Ith !ow% Phili2 Shanahan, Sean Etchingham. (S #$ltonH9e$tsch Collection8CO)B1S)

The &o$! Co$!ts in 9$+lin, 1!eland +$!n on '$ly 46, 4>66 afte! 1!ish &!ee State t!oo2s fi!ed $2on it to d!i3e o$t 1!ish )e2$+lican !e+els, who occ$2ied it in 2!otest o3e! the t!eaty with the Fnited Dingdom. The +$!ning of the &o$! Co$!ts !es$lted in the loss of many im2o!tant doc$ments and !eco!ds. (S Bettmann8CO)B1S)

&o!me! B!itish P!ime "iniste! 9a3id Lloyd *eo!ge and (a;i *e!many/s dictato! 0dolf #itle! 2ose fo! a 2hotog!a2h on the O+e!sal;+$!g d$!ing *eo!ge.s second 3isit with #itle! on '$ne <, 4>EI. (a;i *e!man &o!eign "iniste! 'oachim 3on )i++ent!o2 is seen standing in the !ea! +etween 0dolf #itle! and 9a3id Lloyd *eo!ge.

B!itish P!ime "iniste! (e3ille Cham+e!lain (left) shakes hands with 0dolf #itle! in "$nich, *e!many in Se2tem+e! 4>E7.

(a;i *e!many/s &ield "a!shal #e!mann *oe!ing (left) smiles as 1taly/s fascist dictato! Benito "$ssolini shakes hands with *!eat B!itain/s P!ime "iniste! (e3ille Cham+e!lain in "$nich, *e!many on Se2tem+e! E5, 4>E7 as eade!s f!om 1taly, *e!many, England, and &!ance gathe! afte! the signing of the "$nich 0g!eement which allowed (a;i *e!man anne ation of the S$detenland (C;echoslo3akia). (#$ltonH9e$tsch Collection8CO)B1S)

Pa!tici2ants stand togethe! at the "$nich Confe!ence in "$nich, *e!many on Se2tem+e! 6>, 4>E7. B!itish P!ime "iniste! (e3ille Cham+e!lain, &!ench P!ime "iniste! Edo$a!d 9aladie!, 1taly/s dictato! Benito "$ssolini, and 0dolf #itle! concl$ded ag!eements a$tho!i;ing the (a;i *e!man anne ation of the S$deten a!ea of C;echoslo3akian te!!ito!y. &!om left to !ight% Cham+e!lain, 9aladie!, #itle!, "$ssolini and the 1talian &o!eign "iniste! Co$nt *alea;;o Ciano. 1n the +ackg!o$nd, 3on )i++ent!o2 and 3on Wei;sUcke!. (Photo% htt2%88adolfhitle!+est2ict$!es.+logs2ot.com8sea!ch8la+el8"VCEVBCnichV65Confe!ence)

Left% B!itish P!ime "iniste! (e3ille Cham+e!lain talks to 1taly/s fascist dictato! Benito "$ssolini while 0dolf #itle! signs a t!eaty. )ight% B!itish P!ime "iniste! (e3ille Cham+e!lain wa3es to the c!owd at #eston 0i!2o!t nea! London on Se2tem+e! E5, 4>E7 and anno$nces, BPeace in o$! TimeC, afte! !et$!ning f!om signing the "$nich 0g!eement the 2!e3io$s day.

$So r,e: "ictorial History of Israel #6 .a,o# A0 R #in and +e6er 3ar7ai-

! een Eli"a#eth BB of Great 3ritain $left- and Emperor of Ethiopia ;aile Selassie ride in an open ,arriage in 1ondon on G,to#er 1'% 1/'*0 $U 3ettmannCCGR3BS-

! een Eli"a#eth BB of Great 3ritain $,enter- appears 5ith =resident of Ken6a .omo Ken6atta $right- and his 5ife in ?airo#i% Ken6a on +ar,h 19% 1/&)0 Ken6a% a former 3ritish ,olon6% #e,ame an independent nation on Fe,em#er 1)% 1/630 The ,olon6 of Ken6a 5as initiall6 esta#lished #6 3ritish East Afri,a Compan60 $=hoto #6 1i,hfieldCGett6 Bmages-

=resident of Ghana K5ame ?7r mah $left- dan,es 5ith ! een Eli"a#eth BB of Great 3ritain at the State ;o se in A,,ra% Ghana in 1/610

Sir Charles Arden-Clar7e $,enter-% the Q3ritishR Go:ernor of the Gold Coast $A g st 11% 1/*/ (+ar,h 6% 1/'&- and Go:ernor-General of Ghana $+ar,h 6% 1/'&(. ne )*% 1/'&-% and =rime +inister of Ghana K5ame ?7r mah appear at the ,eremonies mar7ing Ghana<s independen,e from Great 3ritain on +ar,h 6% 1/'&0 $Gett6 Bmages-

Police office!s ,$estion a ci3ilian d$!ing the "alayan Eme!gency on 02!il 6E, 4>=>. The "alayan Eme!gency was a B!itish antiHComm$nist co$nte!ins$!gency cam2aign that occ$!!ed f!om 4>=7 to 4>I5. 0 g!o$2 of ethnic Chinese !e+els in B!itish "alaya, led +y Chin Peng, attem2ted to esta+lish a Comm$nist state $ntil the B!itish a!my $nde!mined thei! effo!ts th!o$gh com+ination of K$ngle wa!fa!e, 2sychological o2e!ations, and food cont!ol. Si! #en!y *$!ney, the B!itish #igh Commissione! in "alaya, was killed in an am+$sh on Octo+e! I, 4>A4. (Photo% BBC #$lton Pict$!e Li+!a!y, (o. E=4>>E>)

B!itish P!ime "iniste! "a!ga!et Thatche! (left) meets with Singa2o!e/s P!ime "iniste! Lee D$an ?ew in 02!il 4>7A. Singa2o!e is a fo!me! B!itish colony and a fo!me! 2!o3ince of B!itish "alaya. (Photo +y Pete! 'o!dan88Time Life Pict$!es8*etty 1mages)

Brish Rep #li,an Arm6 $BRA- mem#ers are pinned do5n #6 3ritish g nfire in 1/&)0 $So r,e: Gilles =eress - +agn m =hotos% G r Times% p0 ')/-

The res lts of an BRA atta,7 on Gld 3ond Street in 1ondon in 1/&'0 $; lton Fe ts,hCG r Times% p0 '*/-

2rom the Grass6 Knoll in ?e5 Felhi: 0one 'unman or &atsyD
The Assassination of +ahatma Gandhi in ?e5 Felhi% Bndia on .an ar6 30% 1/*9

The ne5 :i,ero6 of Bndia% 1ord +o nt#atten% and his 5ife% 1ad6 +o nt#atten% meet 5ith +ohandas K0 >+ahatmaA Gandhi at their ho se in ?e5 Felhi% 3ritish Bndia in 1/*&0 ?ahatma 'andhi was assassinated by a 6indu nationalist on +anuary @1, ,./A. Great 3ritain s pported the partition of Bndia and =a7istan@ #oth Bndia and =a7istan has fo ght o:er the territor6 of Kashmir at least three times sin,e 1/*&0 $CGR3BSC; lton-Fe ts,h Colle,tion-

0one gunman or patsyDC ?ath ram Godse $1/10-1/*/- at his trial for the m rder of +ahatma Gandhi

Gandhi Smriti $then 3irla ;o se-% 5here +ahatma Gandhi 5as assassinated #6 a >lone g nmanA in ?e5 Felhi% Bndia on .an ar6 30% 1/*90 Great 3ritain re,ogni"ed the independen,e of Bndia and =a7istan on A g st 1'% 1/*&0

+ohandas K0 >+ahatmaA Gandhi $left- appears 5ith Bndian independen,e a,ti:ist and ?a"i German ,olla#orator S #has Chandra 3ose $right- at the Bndian ?ational Congress ann al meeting in 1/390

1ord and 1ad6 +o nt#atten meet 5ith +ohammed Ali .innah $,enter-% the f t re leader of =a7istan% in 1/*&0

.a5aharlal ?ehr $left- appears 5ith +ahatma Gandhi in 1/*)0

"ahatma *andhi leads the Bsalt ma!chC to the sea in B!itish 1ndia in 4>E5. The Salt "a!ch to 9andi +egan on "a!ch 46, 4>E5N "ahatma *andhi a!!i3ed in 9andi, 1ndia on 02!il A, 4>E5. *andhi enco$!aged the 1ndian 2eo2le to +oycott the B!itish salt ta altogethe! +y 2!od$cing thei! own salt and sell thei! salt on the B+lack ma!ketC in defiance of B!itish 1m2e!ial ta laws. The B!itish colonial a!my in 1ndia 3iolently s$22!essed the Bsalt ma!chC +y killing many 1ndians and censo!ing the 2!ess. The Salt "a!ch wo$ld lead to the Ci3il 9iso+edience "o3ement th!o$gho$t B!itish 1ndia.

1ndian leade! "ohandas B"ahatmaC *andhi !eads ne t to a s2inning wheel at his home in 1ndia in 4>=I. (Photo% "a!ga!et Bo$!keHWhite8Time Life)

3ritish mo nted poli,e ,harge a ,ro5d in Cal, tta% Bndia in .an ar6 1/31 ,ommemorating an earlier ,all to independen,e from 3ritain% f rther ad:an,ing +ahatma Gandhi<s independen,e ,ampaign0

+ohammad Ali .innah $left-% =resident of the + slim 1eag e and the first politi,al leader of independent =a7istan% meets 5ith +ahatma Gandhi in 3om#a6% Bndia in Septem#er 1/**0

+ahatma Gandhi attends the 1ondon Conferen,e on Bndia in 1/310 $=hoto: 33C ; lton =i,t re 1i#rar6% 1ondon-

9elegates stand togethe! at the *!eate! East 0sia Confe!ence in Tokyo, 'a2an on (o3em+e! A, 4>=E. #ideki ToKo is standing at cente!. 1ndia/s 2!oH0 is !e+el S$+has Chand!a Bose is standing on the fa! !ight. (So$!ce% 'a2anese +ook GShowa #isto!y Jol.44% )oad to Catast!o2heG 2$+lished +y "ainichi (ews2a2e!s Com2any.)

Bndian g erilla fighter S #has Chandra 3ose meets 5ith Adolf ;itler at the Rei,h Chan,eller6 in 3erlin% German6 on +a6 )/% 1/*)0 $=hoto: 3 ndesar,hi:CGerman 2ederal Ar,hi:eshttp:CC,ommons05i7imedia0orgC5i7iC2ile:S #hasDChandraD3oseDandDAdolfD;itlerD)/D+a6D1/*)0Epg

1ndian g$e!illa fighte! S$+has Chand!a Bose (second f!om left) meets with (a;i SS chief #ein!ich #immle! (!ight) in (a;i *e!many in 4>=E. (Photo% B$ndesa!chi38*e!man &ede!al 0!chi3es)

1ndia/s antiHcolonial !e+el S$+has Chand!a Bose (second f!om !ight) sits +eside (a;i SS Chief #ein!ich #immle! d$!ing a meeting in (a;i *e!many in 4>=E. (Photo% *e!man &ede!al 0!chi3es)

1ndia/s 2olitical acti3ist S$+hash Chand!a Bose (left) meets with and "ohammad 0li 'innah. 'innah was the fo$nde! of inde2endent Pakistan and se!3ed as the fi!st *o3e!no!H*ene!al of Pakistan f!om 4>=< $ntil his death on Se2tem+e! 44, 4>=7. Bose !e2o!tedly died on 0$g$st 47, 4>=A in a 2lane c!ash o3e! the island of Taiwan sho!tly afte! 'a2an s$!!ende!ed.

1ndia claims the enti!e 2!incely state of 'amm$ and Dashmi! +ased on an inst!$ment of accession signed in 4>=<. Pakistan claims 'amm$ and Dashmi! +ased on the maKo!ity "$slim 2o2$lation of the state, while Comm$nist China claims the Shaksam Jalley and 0ksai Chin.

Pakistani t!oo2s ca2t$!e Dhem Da!an (1ndia) d$!ing the 4>IA 1ndiaHPakistan Wa! (Second Dashmi! Wa!). The Pakistan 0!my ca2t$!ed Dhem Da!an town and damaged the histo!ic Sikh g$!dwa!a.

)hodesian B1nde2endenceC and the B$sh Wa! (4>I=H4><>)

1an Smith, the P!ime "inste! of )hodesia, a!!i3es at the Commonwealth )elations Office in London fo! the fi!st wo!king session in the new Whitehall negotiation a+o$t his co$nt!y/s f$t$!e. 1an Smith had a team of Ca+inet colleag$es with him fo! his talks with "!. Bottomley, B!itain/s Commonwealth Sec!eta!y. (S Bettmann8CO)B1S)

1an Smith (7 02!il 4>4> - 65 (o3em+e! 655<), the P!ime "iniste! of )hodesia and a known white s$2!emacist and English gentleman, fi!es his 2istol d$!ing the )hodesian B$sh Wa! (4>I=H4><>). The )hodesian B$sh Wa! e!$2ted +etween 1an Smith/s whiteHdominated )hodesian go3e!nment and 0f!ican !e+els led +y )o+e!t "$ga+e and 'osh$a (komo.

)hodesian +$!ea$c!ats watch 1an Smith, the P!ime "iniste! of the B!itish colony of )hodesia, signs the BFnilate!al 9ecla!ation of 1nde2endenceC (F91) in Salis+$!y, )hodesia on (o3em+e! 44, 4>IA. (Photo% S Bettmann8CO)B1S)

)hodesia/s P!ime "iniste! 1an Smith (cente!) s2eaks at a 2!ess confe!ence on (o3em+e! 4<, 4>IA with his info!mation ministe! Piete! Denyon 3an de! Byl (left), and his de2$ty info!mation ministe! 'ack #owa!d at his side. B!itish P!ime "iniste! #a!old Wilson claimed that 1an Smith/s attem2t to !e2lace B!itain/s go3e!no! in )hodesia, Si! #$m2h!ey *i+es, was an Bact of t!eason.C (Photo% S Bettmann8CO)B1S)

9owntown Salis+$!y (2!esentHday #a!a!e) in the B!itish colony of So$the!n )hodesia (2!esentHday Rim+a+we) in 4>A>.

0nothe! 3iew of downtown Salis+$!y, So$the!n )hodesia. Salis+$!y (late! #a!a!e) was the ca2ital of )hodesia f!om 4>IA to 4><> and ca2ital of Rim+a+we )hodesia f!om 4><> to 4>75.

2irst Street in Salis# r6% Rhodesia $no5 ;arare% Vim#a#5e-% )1 A g st 1/&0% in,l ding a large #ran,h of 20 W0 Wool5orth department store0 $=hoto: http:CC5550fli,7r0,omCphotosCallhailsC393/63*66&CinCphotostream-

Salis# r6% Rhodesia on )0 A g st 1/&0@ +ei7les ;otel% o:erloo7ing Ce,il SH are% is on the left0 $=hoto: http:CC5550fli,7r0,omCphotosCallhailsC3906/6&&''CinCphotostream-

&ollowing a long t!adition, at the O2ening of Pa!liament the go3e!nment and o22osition mem+e!s ente! the cham+e! in 2ai!s, led +y the P!ime "iniste!, The #on. 1an 9. Smith and the Leade! of the O22osition, "!. '.". *ondo.

)hodesian soldie!s (incl$ding nati3e 0f!icans) 2ose fo! a g!o$2 2hoto d$!ing the B$sh Wa! (4>I=H4><>) in so$the!n 0f!ica.

Land dist!i+$tion and owne!shi2 in (B!itish) )hodesia in the ea!ly 4><5s

2hodesian Jemocracy and the Constitution
)hodesia has a w!itten Constit$tion designed to $2hold the democ!atic !ights of all he! 2eo2les, and it ens$!es that the f!anchise shall +e o2en to mem+e!s of all !aces on e,$al te!ms. The 4>I4 Constit$tion, $2on which the 4>IA 1nde2endence Constit$tion was +ased, was acce2ted +y a !efe!end$m afte! a confe!ence whe!e all !aces and all 2olitical 2a!ties we!e !e2!esented. The confe!ence was con3ened +y the )hodesia *o3e!nment, and the delegates met in Salis+$!y $nde! the chai!manshi2 of the then B!itish Sec!eta!y of State fo! Commonwealth 0ffai!s, "!. 9$ncan Sandys. The 2!ima!y o+Kect of the confe!ence was to find a way of o2ening $2 gen$ine 2a!tici2ation in the go3e!nment of the co$nt!y to all !aces while at the same time maintaining standa!ds. To this end, the confe!ence !eKected $ni3e!sal s$ff!age, +$t !ecommended a system whe!e+y any+ody, !ega!dless of !ace, who co$ld confo!m to ce!tain minimal standa!ds, was entitled to a 3ote. The 3oting ,$alifications laid down we!e standa!d fo! all 2eo2le, !ega!dless of !ace . This was the system in !elation to the main common !oll, designated as the G0G !oll. &o! the +enefit of those who might not yet +e a+le to 2!od$ce the necessa!y ,$alifications fo! the G0G !oll (altho$gh the!e was and is nothing to sto2 any+ody in his o! he! own time ac,$i!ing these ,$alifications +y selfHim2!o3ement) a f$!the! de3elo2ment was the c!eation of a GBG !oll with somewhat easie! ,$alifications. The 2osition today is that 2eo2le of any !ace may ,$alify fo! eithe! !oll. The G0G !oll co3e!s the co$nt!y.s A5 no!mal constit$encies. The GBG !oll co3e!s 4A s2ecially c!eated electo!al dist!icts (fo! all 2!actical 2$!2oses, 4A 3e!y la!ge constit$encies into which the whole co$nt!y has +een geog!a2hically di3ided). Still f$!the! de3elo2ment in all this was a system of Gc!oss infl$encesG +etween the two 3oting !olls (eithe! way, the !es$lts on one !oll +eing infl$enced +y the !es$lts on the othe!) intended to c$!+ !acialism in 2olitical contests. S0&E*F0)9 &O) 0LL )#O9ES10(S Both the 9ecla!ation of )ights and the Constit$tional Co$ncil a!e designed to safeg$a!d the legitimate inte!ests of all )hodesians. The 9ecla!ation of )ights ass$!es the f$ndamental !ights and f!eedoms of e3e!y 2e!son in )hodesia whate3e! his !ace, t!i+e, 2lace of o!igin, 2olitical o2inion, colo$! o! c!eed, to% (a) life, li+e!ty, sec$!ity of 2e!son, the enKoyment of 2!o2e!ty, and the 2!otection of the lawN (+) f!eedom of conscience, of e 2!ession, and of assem+ly and associationN and (c) !es2ect fo! his 2!i3ate and family life. 1f any 2e!son alleges that any of the 2!o3isions of the 9ecla!ation a!e +eing cont!a3ened in !elation to him, he may a22ly to the 022ellate 9i3ision of the #igh Co$!t fo! !ed!ess. 1f the case is !ega!ded as a 2!o2e! and s$ita+le test case, the costs may +e cha!ged against !e3en$e. 1n te!ms of the 4>I4 Constit$tion (o3e!whelmingly acce2ted +y the electo!ate in a !efe!end$m in 4>I6) and also of the 4>IA Constit$tion% • (o one is +a!!ed f!om the 3ote +y !eason of !ace% • 0ny !egiste!ed 3ote!, !ega!dless of !ace, may stand fo! Pa!liamentN • "eas$!es to thwa!t !acially disc!iminato!y legislation a!e 2a!t of the law. The Constit$tional Co$ncil is headed +y a Chai!man who has long +een a K$dge of s2ecified S$2e!io! Co$!ts, o! is a !eti!ed ad3ocate o! atto!ney of the #igh Co$!t of )hodesia of not less than 4A yea!s. standing. The 44 elected mem+e!s m$st incl$de at least two E$!o2eans, two 0f!icans, one 0sian, one 2e!son of the Colo$!ed comm$nity and two 2e!sons who a!e eithe! ad3ocates o! atto!neys of the #igh Co$!t of )hodesia of not less than 45 yea!s. standing. The 2!esent Co$ncil has a mino!ity of E$!o2eans. "em+e!s a!e elected at th!eeHyea!ly inte!3als +y an electo!al college com2osed of 2e!sons of high standing in the co$nt!y, incl$ding the P!esident of the Co$ncil of Chiefs. The Constit$tional Co$ncil m$st conside! e3e!y Bill 2!esented to the Legislati3e 0ssem+ly, and if the Co$ncil conside!s that any 2!o3ision of the Bill wo$ld +e inconsistent with the 9ecla!ation of )ights, it s$+mits to the Office! 0dministe!ing the *o3e!nment an ad3e!se !e2o!t. The Constit$tion may +e amended +y a twoHthi!ds maKo!ity in Pa!liament. The 9ecla!ation of )ights is one of the s2ecially ent!enched sections, which !e,$i!es a twoHthi!ds affi!mati3e 3ote and, at a s$+se,$ent sitting, a twoHthi!ds affi!mati3e 3ote fo! the add!ess which m$st +e 2!esented to the Office! 0dministe!ing the *o3e!nment fo! assent. T#E &)0(C#1SE

The f!anchise in )hodesia confe!s Ge,$alityG $2on all who ac,$i!e the necessa!y standa!ds, !ega!dless of thei! !ace. The standa!ds fo! the f!anchise a!e closely co!!elated with standa!ds in othe! s2he!esN and they a!e essential to the contin$ance of the ci3ili;ation which 2!os2e!s all )hodesia.s inha+itants. "eanwhile the *o3e!nment contin$es to st!ain its !eso$!ces in !aising the ed$cational and economic le3els of the 0f!icans, to ena+le them to 2lay a f$lle! 2a!t. Those who a!e e cl$ded f!om the 3ote a!e e cl$ded solely +y 3i!t$e of fact that they ha3e not demonst!ated the necessa!y me!it o! a+ility. The!e is no s2ecial 2!i3ilege !ese!3ed to the E$!o2eans o! any othe! section of the 2o2$lation. The f!anchise is fo! 3ote!s of all !aces !egiste!ed on one of two !olls and e tends to all citi;ens aged 64 yea!s o! o3e!, !esident in the co$nt!y fo! mo!e than two yea!s, s$+Kect to ce!tain 2!o2e!ty, income o! ed$cational ,$alifications. Of the Legislati3e 0ssem+ly of IA mem+e!s, A5 a!e elected to !e2!esent constit$encies +y the mo!e highly ,$alified 3ote!s of the G0G !oll, whilst 4A, !e2!esenting electo!al dist!icts. a!e elected +y the 3ote!s with lowe! ,$alifications on the GBG !oll. Both constit$encies and electo!al dist!icts co3e! the enti!e co$nt!y and the decision as to which !oll a 2e!son ,$alifies fo!, o! stands fo! Pa!liament on. is in no way de2endent on !ace. The 2!actical effect of the new f!anchise is to gi3e a GBG !oll 3ote to a la!ge n$m+e! of 2eo2le, mainly 0f!icans, who did not ,$alify at all $nde! the old singleH!oll system. ((othing 2!e3ents anyone with the necessa!y ,$alifications f!om en!olling as G0G !oll 3ote!s.) Each mem+e! of the electo!ate can cast two 3otes, one fo! his choice of candidate in the constit$ency, and one fo! his choice in the o3e!la22ing electo!al dist!ict in which he li3es. By a system of c!ossH3oting the G0G !oll 3ote!s can infl$ence the !es$lt of a GBG !oll contest, and vice versa. This is designed to +!oaden the a22eal of candidates to 3ote!s on +oth !olls. G0G )oll (a) 1ncome of O<>6 o! owne!shi2 of 2!o2e!ty of 3al$e of O4,IA5N o! (+) 1ncome of OA67 o! owne!shi2 of 2!o2e!ty of 3al$e of O4,455 and com2letion of a co$!se .of 2!ima!y ed$cationN o! (c) 1ncome of OEE5 o! owne!shi2 of 2!o2e!ty of 3al$e of OAA5 and fo$! yea!s. seconda!y ed$cationN o! (d) 022ointment to the office of Chief o! #eadman. GBG )oll (a) 1ncome of O6I= o! owne!shi2 of 2!o2e!ty of the 3al$e of O=>AN o! (+) 1ncome of O4E6 o! owne!shi2 of 2!o2e!ty of the 3al$e of O6<A and two yea!s. seconda!y ed$cationN o! (c) O3e! E5 yea!s of age and income of O4E6 o! owne!shi2 of 2!o2e!ty of 3al$e of O6<A and 2!ima!y ed$cationN o! (d) O3e! E5 yea!s of age and income of O4>7 o! owne!shi2 of 2!o2e!ty of 3al$e of OE7AN o! (e) D!aal heads with a following of 65 o! mo!e heads of familiesN o! (f) "iniste!s of !eligion. P!o3ision is made fo! a 2e!son 2aying fo! 2!o2e!ty +y instalments to ,$alify fo! the GBG !oll. 0 ma!!ied woman is deemed to ha3e the same means ,$alifications as he! h$s+and if she does not ,$alify in he! own !ight. (This a22lies to one wife only H a necessa!y 2!o3ision as 2olygamy is still 2!actised +y many 0f!icans.) She has, of co$!se, also to f$lfil the othe! a22!o2!iate ,$alifications he!self. 0n 0f!ican news2a2e! has stated that had 0f!ican nationalists taken ad3antage of the f!anchise o22o!t$nities a3aila+le, they wo$ld today ha3e +een the official o22osition 2a!ty in Pa!liament. Fnde! the Constit$tion, the 0f!icans will attain GmaKo!ity !$leG K$st as soon as they demonst!ate thei! fitness. +y ,$alifying fo! the 3ote in s$fficient n$m+e!s. The!e is no legal im2ediment to a )hodesian of any !ace +ecoming P!ime "iniste!, "em+e! of Pa!liament, '$dge of the #igh Co$!t, #ead of a *o3e!nment 9e2a!tment o! 2!actising in any 2!ofession. 0ttainment of these 2ositions is 2$!ely a ,$estion of me!it and ,$alifications. O22o!t$nities fo! ad3ancement in all s2he!es a!e a3aila+le to all !aces. (Jal$e of O is as in 4>I5s)

;ome
So$!ce% htt2%88www.!hodesia.me.$k8F91Constit$tionand&!anchise.htm

2hodesian %nsurgency
#6 =rofessor .0R0T0 Wood
"he 1hysical Setting Rim+a+we (once )hodesia o!, mo!e acc$!ately, So$the!n )hodesia) is sit$ated in the so$the!n limits of 0f!ica.s inte!Ht!o2ical ;one, +etween latit$des 4A5E5.S and 665E5.S. Some =A5 miles (<6A km) long f!om no!th to so$th and A65 miles (7EA km) wide, its a!ea is 4A5 E55 s,$a!e miles (E7> 555 s,.km). 1t is !o$ghly the si;e of the state of "ontana. The climate com2!ises two seasons% hot wet s$mme!s (Octo+e! th!o$gh to "a!ch) and d!y mild winte!s. 1n the high altit$des the!e a!e a n$m+e! of f!osty nights. The long ann$al d!o$ght means most !i3e!s d!y $2 and the!efo!e a!e not $sed fo! comm$nication. Boundaries5 4. #orth5 the f!ontie! with Ram+ia is +o$nded +y the g!eat Ram+e;i )i3e! and Lake Da!i+a. 02a!t f!om two +!idges, at Jicto!ia &alls and Chi!$nd$, and the dam wall at Da!i+a, c!ossing can only +e effected +y +oat. 6. &ast5 the f!ontie! with "o;am+i,$e was o!iginally dema!cated +y a se!ies of s$!3eyo!s. 2egs and a low wi!e fence. "$ch of this +o!de! wo$ld late! +e flanked +y a fenced antiH2e!sonnel minefield. E. South5 the f!ontie! with So$th 0f!ica is +o$nded +y the Lim2o2o )i3e! which, +eing mostly d!y fo! m$ch of the yea!, is easily c!ossed. =. 0est5 the semiHa!id f!ontie! with Botswana. This was o2en to easy 2enet!ation ac!oss the low wi!e fence linking the s$!3eyo!s. 2egs. The!e a!e fo$! main to2og!a2hical a!eas% 1hysical Setting 4. "he &astern 6ighlands5 a na!!ow +elt of mo$ntains and high 2latea$ (the (yanga and J$m+a "o$ntains, the "elsette! F2lands and the Chimanimani "o$ntains, I555H7A55 feet high) along the easte!n +o!de!, ma!king the +o!de! with "o;am+i,$e and the edge of 0f!ica.s g!eat inte!io! ta+leland. The !ainfall he!e is the highest and the winte!s the coldest. 6. "he 6ighveld H at altit$des of =555HA555 feet (4665H4A6A m) H 2!o3ides the wate!shed fo! the !i3e!s which flow no!th to the Ram+e;i )i3e! and so$th to the Lim2o2o )i3e!. 1t lies in a long +elt of land f!om so$th and west of B$lawayo to no!th and east of #a!a!e. 1t is the most 2!od$cti3e fa!ming a!ea, 2a!tic$la!ly in the !ed soils of the a!c no!th of #a!a!e. 1t is hilly with g!eat swee2s of g!anite hills. The 3egetation is t!ee sa3annah H with cano2ies s2!eading $2 to 655 feet and with si foot high dense g!ass co3e! +oth of which make o+se!3ation diffic$lt. E. "he Middleveld flanks the #igh3eld on +oth sides H at altit$des of E555H=555 feet (>4AH4665 m) H and is na!!ow in 2laces and wide in othe!s. &o! e am2le, no!th of B$lawayo it 2!o3ides an e tensi3e 2latea$ +o!de!ing on the Ram+e;i Bassin. The !ain is s2a!se! +$t 3egetation is t!ee sa3annah with tho!n t!ees +eginning to 2!edominate. =. "he $owveld H +etween 4A55HE555 feet and flanking the middle3eld H com2!ises, in the no!th, the so$the!n flanks of the Ram+e;i Jalley and, in the so$th, the no!the!n flanks of the +!oad Sa+iHLim2o2o Jalley. The 3egetation is dominated +y tho!ny s2ecies, !es2onding to the semiHa!id conditions. "he &conomy and Society With a 2o2$lation of a22!o imately th!ee million in 4>IA, )hodesia had a mi ed economy as well as a mi ed and !acially seg!egated society. The economy was +ased on to+acco, mai;e and cattle fa!ming, the mining of as+estos, gold, coal, ch!ome, co22e!, co+alt, lithi$m and othe!s and some man$fact$!ing which wo$ld e 2and and di3e!sify to meet the challenges of sanctions, incl$ding s$22lying the Sec$!ity &o!ces with modified 3ehicles and some wea2ons. 0 maKo! weakness was the need to im2o!t moto! f$el and amm$nition. This wo$ld +e e 2loited +y So$th 0f!ica when it s$ited he!. The economy was so2histicated eno$gh to s$stain me!chant +anks, a stock e change and the like. Some <555 white fa!me!s fa!med comme!cially while most othe! 6<5,555 whites li3ed in the towns. The 0f!ican 2o2$lation of 6.AW million mostly li3ed in the !ese!3ed t!i+al a!eas, li3ing off s$+sistence fa!ming, with a22!o imately A55,555 li3ing in townshi2s s$!!o$nding the white towns. By 4>75 the 0f!ican 2o2$lation was some I million while the white 2o2$lation was !a2idly declining th!o$gh emig!ation to some >5,555. 7ommunications

4. )oads% a legacy of the &ede!ation of )hodesia and (yasaland was high standa!d ta! !oads on the main t!$nk !o$tes. )oads elsewhe!e we!e di!t and 3a!ied in ,$ality. The !oad t!affic was 3$lne!a+le to attack, incl$ding mining, and meas$!es s$ch as mine detection and a!med con3oys we!e im2lemented. 6. )ailways% the!e was a longHesta+lished !ail netwo!k, se!3ing the co$nt!ies to the no!th as well. This was to +e s$22lemented in the 4><5s +y a new line f!om *welo to So$th 0f!ica. The !ailways we!e 3$lne!a+le to attack. E. 0i!% The!e was a national ai!line which was s$22lemented +y flights f!om So$th 0f!ica and "o;am+i,$e. 1n the latte! 2a!t of the wa!, the S0"H< was to 2ose a 2!o+lem which local ingen$ity attem2ted to co$nte!. =. Telecomm$nications% the!e was a mode!n inf!ast!$ct$!e. 8ealities of the 8hodesian *nsurgency 1n com+ating thei! ins$!gency, the )hodesians ac,$i!ed a fea!some !e2$tation. The fo!me! (0TO commande!, Si! Walte! Walke!, in a lette! to The Times of London in 'an$a!y 4><7, w!ote%

.....the!e is no do$+t that )hodesia now has the most 2!ofessional and +attle wo!thy a!my in the wo!ld today fo! this 2a!tic$la! ty2e of wa!fa!e.. Walke! was not enti!ely del$ded H the )hodesian sec$!ity fo!ces we!e +attleHha!dened, !eso$!cef$l and da!ing. =5 555 of thei! o22onents died at a cost of 4,<EA )hodesian dead H a !atio of 6E%4. With 4 =55 men only in the field on the a3e!age day, they co$ld not $s$ally m$ste! the classic E%4 !atio in attack. 0fte! 4><I, the )hodesian sec$!ity fo!ces we!e se!io$sly o$tHn$m+e!ed. Time and again, little mo!e than a !einfo!ced com2any fa! f!om home wo$ld take on defensi3e 2ositions held +y h$nd!eds, sometimes tho$sands of thei! o22onents. On O2e!ation 9ingo, at Chimoio, "o;am+i,$e, in (o3em+e! 4><<, 4IA S0S and )hodesian Light 1nfant!y 2a!at!oo2s K$m2ed into a cam2 com2le holding > 555H45 555 ins$!gents of whom A 555 we!e killed. #owe3e!, )hodesia as a CO1( model is an anach!onism, sim2ly +eca$se the s2ectacle of a ,$a!te! of a million white 2eo2le t!ying to !etain 2olitical dominance o3e! AHI million is $nlikely to !eocc$! in the nea! f$t$!e in 0f!ica. &.W. de Dle!k of So$th 0f!ica had the wit to !ealise that he had to concede 2owe! +efo!e he was faced with a f$llH+lown ins$!gency. The!e is m$ch to +e lea!nt f!om the histo!y of the )hodesian co$nte!Hins$!gency effo!t. B$t, $ntil a 2olitical sol$tion was fo$nd in 4><7H 4><>, it was only e3e! a !eacti3e containment of a !e+ellion +ased in the !$!al a!eas. Befo!e 4><7 the ins$!gents of the Rim+a+we 0f!ican (ational Fnion (R0(F) of )o+e!t *a+!iel "$ga+e and the Rim+a+we 0f!ican Peo2le.s Fnion (R0PF) of his !i3al, 'osh$a (komo, held the initiati3e. Psychological wa!fa!e was im2ossi+le $ntil the!e was a means to win the s$22o!t of the 2eo2le. The )hodesian 2olitical st!$ct$!e was o+solete in the e!a of decolonisation when selfHdete!mination, +elo3ed of P!esident Wood!ow Wilson, had +ecome a c!eed. 1n sho!t, +efo!e 0f!ican maKo!ity !$le was not only conceded +$t im2lemented in 4><7H4><>, the co$nte!Hins$!gency co$ld not +e won. The 2oint made +y )o+e!t Ta+e! in The Wa! of &lea is that the co$nte!H!e3ol$tiona!y has to dest!oy the 2!omise of the !e3ol$tion +y 2!o3ing that it is $n!ealistic. 1n the )hodesian case, that was im2ossi+le while the totally o$tHn$m+e!ed whites denied the 0f!ican maKo!ity f$ll !ights. The )hodesians ado2ted +old tactics, o2ting fo! a 3e!sion of the .FSH2!efe!!ed. model of co$nte!Hins$!gency, !athe! the .t!aditional. a22!oach most often em2loyed in histo!y. The often +!$tal methods of the .t!aditional model. to diss$ade the !$!al 2o2$lation f!om s$22o!ting the ins$!gents we!e $nacce2ta+le to the )hodesians +eca$se thei! stat$s as o$tcasts made them ca$tio$s a+o$t o$t!aging wo!ld o2inion. The .t!aditional model. was also !$led ina22!o2!iate +eca$se it im2lies the li+e!al $se of !eso$!ces when the )hodesians had to conse!3e thei! sca!ce assets ($nlike thei! o22onents) and +eing s$!!o$nded +y safe ha3ens fo! thei! enemies, meant that the )hodesians co$ld not em2loy static defence. The .FSH2!efe!!ed model. 2!esc!i+es 2olitical de3elo2ment, social !efo!m, the $se of !$!al selfHdefence militias and high mo+ility fo!ces. 1t also ca!!ies a high financial 2!ice which e3ent$ally cont!i+$ted to the 2!ess$!e on )hodesia to sec$!e a 2olitical settlement. The )hodesians de3elo2ed .&i!e &o!ce. o! the $se of helico2te!s as g$nshi2s and t!oo2 t!ans2o!ts to en3elo2 ins$!gent g!o$2s 3e!tically and eliminate them. &i!e &o!ce was highly s$ccessf$l +$t too little attention was 2aid to a3oiding inK$!ing the !$!al 2eo2le o! of damaging thei! 2!o2e!ty. 0s will +e seen, militias we!e em2loyed at the end with some s$ccess. Befo!e then, howe3e!, the!e was no one to consolidate afte! &i!e &o!ce had won g!o$nd. The essential economic de3elo2ment to s$stain the 2a!allel im2!o3ement in the life of the 2eo2le flagged and 2olitical change was delayed too long. On the !e3ol$tiona!y side, #e!+e!t Chite2o, the assassinated R0(F leade!, ado2ted the co!!ect st!ategy in 4><=. #e and R0(L0 had s$fficient e te!nal finance, aid, wea2ons and yo$ng men to t!ain to st!etch the go3e!nment.s !eso$!ces +y c!eating s$fficient 2!ess$!e to fo!ce the sec$!ity fo!ces to de2loy o3e! the whole co$nt!y. To do this the go3e!nment wo$ld ha3e to mo+ilise la!ge n$m+e!s of ci3ilians, ca$sing se!io$s 2!o+lems in ind$st!y, comme!ce and ag!ic$lt$!e and the!e+y 2sychologically dest!oying the mo!ale of the whites. The s2!eading of the wa! afte! 4><I, com+ined with othe! facto!s, did c!eate s$ch conditions, ind$cing whites to emig!ate and fo!cing them to !ecognise 2olitical !ealities. ?et, we m$st not +e misled fo!, in 4>75, the most 3$lne!a+le of whites, the fa!me!s, we!e still on the land e ce2t in the !emote! 2a!ts of the easte!n +o!de!.

The moment came with the election of the "$;o!ewa *o3e!nment in 02!il 4><> when 0f!ican maKo!ity !$le was a !eality and s$ccess in the co$nte!Hins$!gency +ecame 2ossi+le. 1n the e3ent it was a close !$n thing, 1 +elie3e. The )hodesians, $sing ai! 2owe!, ai! mo+ility and thei! ha!dened t!oo2s, came nowhe!e nea! defeat. They lost at the confe!ence ta+le. Thei! o22onents in R0(L0 had a mass of illH t!ained cad!es +ent !eally on 2oliticising the masses +$t had no ca2acity fo! 2ositional wa!fa!e. (komo.s Rim+a+we Peo2le.s )e3ol$tiona!y 0!my +ased its st!ategy on a last min$te th!$st +y con3entional fo!ces. That th!$st ne3e! mate!ialised. 1nstead, +y 4><> its fo!ces in )hodesia we!e locked in a ci3il wa! with R0(L0 which $nde!lay the ins$!gency and which "$ga+e, with (o!th Do!ean aid, +!$tally c!$shed afte! inde2endence in the ea!ly 4>75s. The !eal accom2lishment of R0(L0 was 2olitical. 1ts cam2aign ens$!ed that "$ga+e wo$ld win the fi!st election. 0t the Lancaste! #o$se settlement confe!ence in London in the second half of 6><>, the commande! of the Rim+a+we 0f!ican (ational Li+e!ation 0!my (R0(L0) 'osiah Tongoga!a conceded to 1an Smith and &!ancis Rindoga (a ministe! in the *o3e!nment of Bisho2 "$;o!ewa), that the wa! was a stalemate. 0fte! Tongoga!a.s death in 4>75, his s$ccesso!, )e (hongo, went f$!the!. (hongo was a 2a!t of the ceaseHfi!e commission and told a fellow mem+e! that R0(L0 wo$ld ha3e +een ha!d 2!essed to get th!o$gh the ne t d!y season +eca$se the )hodesian fo!ces had c$t his lines of comm$nications and, +y taking the wa! into "o;an+i,$e, had so $2set his &)EL1"O hosts that they wo$ld a+andon him. The )hodesian &i!e &o!ce was killing his leade!s and t!ained men at a !ate than he co$ld !e2lace them while the )hodesian a$ ilia!y fo!ces we!e +eginning to s$22lant his men in thei! !ef$ges amongst the t!i+es. We will !et$!n to these iss$es +$t fi!st it is necessa!y to esta+lish the !oots of the ins$!gency. "he African grievances ( the underpinning of the insurgency The go3e!nments s$22lied the f$ndamentals of the ins$!gency +y c!eating 0f!ican g!ie3ances. The main g!ie3ances we!e th!eefold% 4. $and) 0f!icans. land was in3aded and the !ights of the in3ade!s confi!med +y con,$est. To E$!o2ean eyes the land in 47>5 was 3i!t$ally em2ty. To the 655,555 0f!icans, $nocc$2ied land was !ese!3ed fo! h$nting. The Com2any 2!oclaimed t!i+al !ese!3es H whe!e the 0f!icans li3ed comm$nally $nde! the loose cont!ol of thei! chiefs. 1n the 4>6E Constit$tion the !ights to the !ese!3es we!e made inaliena+le. 1n 4>6A the whites we!e gi3en !ights to 2$!chase E4 million ac!es o$tside the !ese!3es and $nde! the 4>E4 Land 022o!tionment 0ct a f$!the! => million ac!es, incl$ding the $!+an a!eas. The 0ct offe!ed the one million 0f!icans <.= million ac!es +y cont!ast. The!e was no white land h$nge! H +y 4>IA, whites had 2$!chased only E6 million ac!es of the designated land. ?et they came to see the Land 022o!tionment 0ct as thei! "agna Ca!ta H as the g$a!antee of thei! dominance. 1n 4>E4 the 0f!icans had ade,$ate land +$t not fo! long. The 0f!ican 2o2$lation g!ew +y =A times in the 2e!iod 47>5H4>>5 H f!om 655 555 to > million +y 4>>5. By cont!ast the white 2o2$lation g!owth of A55 H 6<A 555 lagged fa! +ehind and !elied hea3ily on immig!ation (+$t a selecti3e immig!ation 2olicy designed to a3oid the .2oo! white. 2!o+lem e 2e!ienced +y So$th 0f!ica). (ot only we!e the !ese!3es too small +$t the ageHold cattle c$lt$!e and fa!ming methods e ha$sted the soil. 0ttem2ts +y the *o3e!nment to 2!otect the soil, incl$ding destocking, only foste!ed !esentment. ?et, des2ite the o3e!c!owding, most 0f!icans !emained in the t!i+al a!eas $ntil the 4>I5s H fo!cing comme!cial fa!ming, mining and ind$st!y to !ec!$it fo!eign la+o$!, mainly f!om "alawi. The hyd!oHelect!ic dam at Da!i+a, fo! e am2le, was +$ilt with fo!eign la+o$! in the 4>A5s. 6. &mployment5 gi3en thei! late 1!on 0ge stat$s in 47>5 all that the 0f!icans co$ld offe! was $nskilled la+o$!. This stat$s was not im2!o3ed +y !acial legislation which fo!+ade 0f!ican wo!ke!s Koining t!ade $nions and e cl$ded them f!om skilled em2loyment e3en when ,$alified. Change only came in the &ede!al e!a when the economy e 2anded and seg!egation laws we!e 2!og!essi3ely !e2ealed. E. African education) Like em2loyment, ed$cation was seg!egated and m$ch mo!e was s2ent on the few white child!en than on the many 0f!icans. The whites we!e gi3en classical B!itish schooling while the 0f!icans enKoyed 2!ima!y and t!ade ed$cation. Only afte! 4>=A was seconda!y schooling a3aila+le to 0f!icans. Th$s "$ga+e.s gene!ation ed$cated themsel3es th!o$gh co!!es2ondence schools and then attended &o!t #a!e Fni3e!sity in So$th 0f!ica. 1n the &ede!al e!a, m$ltiH!acial $ni3e!sity ed$cation was 2!o3ided +$t ed$cation !emained seg!egated $ntil 4><>. "he 8oots of 9/*5 /ominion Status or :ederation #a3ing go3e!ned So$the!n )hodesia s$ccessf$lly fo! 6A yea!s, in 4>=< the whites +elie3ed that they had ea!ned dominion stat$s. They we!e +lissf$lly $nawa!e that B!itain was +ent on !et!eating f!om the Em2i!e and not on ac,$i!ing anothe! whiteHled 9ominion. The So$the!n )hodesians had a n$m+e! of choices. They co$ld Koin So$th 0f!ica +$t this had +een !eKected in 4>66 and few still ad3ocated it. &$!the!Hmo!e, the B!itish La+o$! *o3e!nment was $nlikely to sanction it. The alte!nati3e was to seek dominion stat$s o! to amalgamate o! fede!ate with (o!the!n )hodesia and (yasaland in the e 2ectation c!eating a new B!itish dominion. Fnification with the no!the!n te!!ito!ies had often +een ad3anced +y% the So$the!n )hodesians had ne3e! +een enth$siasticN the 0f!icans of all th!ee te!!ito!ies had +een ca$tio$sly s$s2icio$s and the B!itish La+o$! *o3e!nment had +eg$n in "a!ch 4>=I to decolonise.

Th$s it is s$!2!ising that Clement 0ttlee.s *o3e!nment !es2onded to demands fo! $nity f!om the leade! of the $nofficial mem+e!s in the (o!the!n )hodesian Legislati3e Co$ncil, )oy Welensky, and f!om So$the!n )hodesia.s 2!ime ministe!, Si! *odf!ey #$ggins. Both as2i!ed to c!eate a g!eat new dominion. Welensky !eKected di!ect B!itish !$le while #$ggins ho2ed to sha!e in the no!th.s co22e! +oom. Welensky and #$ggins 2!o2osed amalgamation $nde! the So$the!n )hodesia Constit$tion. This was $n2alata+le to the B!itish +eca$se% in the 2ostHwa! wo!ld, no B!itish *o3e!nment co$ld a+andon 0f!icans in a 2!otecto!ate to local white cont!olN (o!the!n 0f!ican o2inion $nion with the seg!egated so$th and fea!ed 2e!2et$al white hegemony. (onetheless, $nde! 2!ess$!e f!om Welensky and #$ggins, in 4>=I the B!itish *o3e!nment c!eated the inte!Hgo3e!nmental Cent!al 0f!ica Co$ncil to coo!dinate mig!ant la+o$!, ci3il a3iation and hyd!oHelect!ic 2owe!. 1n Octo+e! 4>=7 it conceded that a fede!ation of )hodesia and (yasaland was 2ossi+le. 1n late 4>A4 afte! th!ee confe!ences, it made a fo!mal commitment to fede!ation. The disting$ished B!itish histo!ian, Lo!d Blake, has desc!i+ed the conse,$ent fede!ation of a selfHgo3e!ning colony and two di!ectly !$led and administe!ed B!itish 2!otecto!ates as .an a+e!!ation of histo!y H a c$!io$s de3iation f!om the ine3ita+le co$!se of e3ents, a +ackwa!d eddy in the !i3e! of time.. Why did 0ttlee.s *o3e!nment do this when 0f!ican o2inion was so o22osedX The!e a!e 3a!io$s answe!s. 1t was shocked +y the t!i$m2h of 0f!ikane! nationalism in the So$th 0f!ican election of 67 "ay 4>=7 and saw the &ede!ation as a li+e!al co$nte!2oise to 0f!ikane!H state. "is!eading thei! 2olitical mood, it also fea!ed that the So$the!n )hodesian whites might Koint So$th 0f!ica. 0fte! the B!itish s2y, Dla$s &$chs, had so$!ed 0ngloH0me!ican !elations in the n$clea! field, B!itain needed So$the!n )hodesia.s ch!ome, lithi$m and othe! mine!als fo! the 2!od$ction of he! own atomic +om+. Lastly, &ede!ation wo$ld +e economically 3ia+le and !elie3e B!itain of the financial +$!den of (yasaland. The &ede!ation had a fatal flaw. The most c!$cial a!ea of administ!ation, that of the 0f!ican affai!s, was left in te!!ito!ial hands +eca$se B!itain wo$ld not !elin,$ish he! !ole as 2!otecto!. This meant that (o!the!n )hodesian and (yasaland 0f!icans we!e $ltimately !$led +y London and So$the!n )hodesian 0f!icans +y Salis+$!y. 9i3e!gent 2olicies we!e g$a!anteed. 1n 2a!tic$la!, London did not see fede!ation as inte!!$2ting the ma!ch of (o!the!n )hodesia and (yasaland in ste2 with the Em2i!e towa!ds democ!atic selfHgo3e!nment +ased on $ni3e!sal ad$lt s$ff!age. The 0f!ican nationalists ,$ickly e 2loited this anomaly, demanding immediate change. The S$e; de+acle of 4>AI so$nded the knell of Em2i!e, +$t the new B!itish P!ime "iniste!, #a!old "acmillan, waited to sec$!e his 2osition in the .ne3e! had it so good. election of 4>A>, then li,$idated the Em2i!e as fast as he co$ld. Te!!ito!ies we!e !$shed to inde2endence afte! +!ief e 2e!iences of selfHgo3e!nment. 1n the 2!ocess, (yasaland (the least de3elo2ed te!!ito!y of the &ede!ation) was allowed to secede in 4>I6. (o!the!n )hodesia.s secession te!minated the &ede!ation.s sho!t life on E4 9ecem+e! 4>IE. Beca$se selfHdete!mination was an $n,$estioned c!eed in the 2ostHwa! wo!ld, the )hodesias and (yasaland sim2ly sw$ng o$t of Blake.s .+ackwa!d eddy. into the mainst!eam of histo!y. Southern 8hodesia and *ndependence ("he growth of African #ationalism The 0f!ican nationalists in So$the!n )hodesia came a 2oo! thi!d to Banda of (yasaland and Da$nda of (o!the!n )hodesia in the effo!t to +!eak the &ede!ation. 1t was mo!e diffic$lt fo! the so$the!n nationalists to infl$ence B!itain +eca$se she did not di!ectly go3e!n So$the!n )hodesia. Sho!t of s$s2ending the 4>6E Constit$tion, the!e was little that she co$ld do fo! them. The no!the!n 0f!icans had +een the 3ang$a!d of 0f!ican nationalism f!om the o$tset, s2onso!ing t!ade $nionism and !aising the le3els of 2olitical awa!eness and agitation within So$the!n )hodesia. The So$the!n )hodesian 0f!icans, +ette! 2!o3ided fo! +y thei! go3e!nment than thei! no!the!n +!othe!s, we!e a2athetic afte! the +loody $2!isings of 47>IH47>< and a +!ief a!med !e+ellion +y the Shona chief "a2onde!a in 4>55. The!eafte!, they eschewed 3iolence and 2olitical 2!otest $ntil the 4>A5s, misleading the whites into +elie3ing that they we!e enti!ely content with thei! lot. The!e we!e only halfH hea!ted attem2ts to 2oliticise them +efo!e 4>E> incl$ding the fo!mation of the 0f!ican (ational Cong!ess. 0fte! 4>=A the!e we!e small s$ccesses H a st!ike in 4>=A sec$!ed 0f!ican !ailway wo!ke!s an inc!ease in 2ay and !ecognition fo! thei! $nion. The fee+le 0f!ican (ational Cong!ess was !es$scitated +y the )e3e!end Thomson Samkange in B$lawayo. The!e was a halfHhea!ted gene!al st!ike in 4>=7. Then in 4>A4 the *o3e!nment annoyed the !$!al maKo!ity +y the !igo!o$s im2lementation of soil conse!3ation meas$!es $nde! the Land #$s+and!y 0ct. This !eaction at last ga3e the 0f!ican nationalists a chance of infl$ence in the t!i+al !ese!3es whe!e the maKo!ity of the 2o2$lation li3ed and whe!e hithe!to the t!i+al chiefs and the (ati3e 9e2a!tment held sway. The !ese!3es +ecame the +attleg!o$nd of the ins$!gency. Co2ying thei! (yasaland and (o!the!n )hodesian co$nte!2a!ts, the So$the!n )hodesian 0f!ican nationalists in 4>AI ado2ted a new militancy and +egan the st!$ggle which wo$ld end at Lancaste! #o$se in 4><>. They so$ght likely s$22o!te!s ('osh$a (komo o2ened links with the So3iets as ea!ly as 4>AI). they e 2loited 0f!ican o$t!age at the Land #$s+and!y 0ct and c!eated the militant City ?o$th Leag$e in Salis+$!y (late! the 0f!ican (ational ?o$th Leag$e). Thei! fi!st s$ccess was a +$s +oycott in Salis+$!y in Se2tem+e! 4>AI which led to a night of 3iolence, gi3ing So$the!n )hodesia he! fi!st taste of ci3il commotion in almost si ty yea!s. They me!ged the ?o$th Leag$e in Se2tem+e! 4>A< with the 0f!ican (ational Cong!ess to c!eate a national mo3ement with (komo as its 2!esident. The !eHin3igo!ated 0(C challenged the a$tho!ity of the So$the!n )hodesian *o3e!nment and th!eatened the inte!nal 2eace +y enco$!aging the flo$ting of the law, intimidation, +oycotts, the e to!tion of money.

"he $iberal 8esponse to African militancy The fi!st !es2onse to the 0f!ican nationalists 2!od$ced a ca+inet !e3olt in ea!ly 4>A7 against the So$the!n )hodesian P!ime "iniste!, *a!field Todd. 0 fo!me! missiona!y, Todd +egan well, modifying the common !oll in Octo+e! 4>A< to att!act mo!e 0f!ican 3ote!s in the ho2e of sec$!ing 0f!ican mem+e!s of 2a!liament fo! the fi!st time. The 0f!icans igno!ed him and the 0f!ican nationalists wanted only $ni3e!sal s$ff!age. 0ltho$gh the 2olicy of m$lti!acial 2a!tne!shi2 had +een ado2ted, Todd then antagonised the whites +y seeking to !emo3e the 1mmo!ality 0ct, +y his association with white li+e!als assisting the 0(C, +y his dominee!ing style of leade!shi2 and othe! facto!s. #is Ca+inet !e+elled in ea!ly 4>A7. Thei! !emo3al of Todd shook 0f!ican +elief in white li+e!alism. Todd late! th!ew in his lot with (komo and s$22o!ted R0PF th!o$gh the coming st!$ggle. Todd.s !e2lacement, Si! Edga! Whitehead, a fellow !efo!me!, was awkwa!d, deaf, 2oo!Hsighted and $nma!!ied, and also soon ala!med the 3ote!s. Sensing that the &ede!ation might +e sho!tHli3ed, he as2i!ed to see So$the!n )hodesia gain 3i!t$al selfHgo3e!nment as a f$lly m$ltiH!acial democ!acy, !eady fo! inde2endence. To this end he com+ined !efo!m with sec$!ity meas$!es to c$!+ 0f!ican $n!est. 1f his 2olicy looked like the ca!!ot and the stick, it was $nHintentional. Whitehead !emo3ed many seg!egation 2!actices incl$ding em2loyment +$t he co$ld do nothing a+o$t ed$cation H +eca$se white ed$cation was &ede!al H and when he th!eatened to a+olish the Land 022o!tionment 0ct and 2!omised to ha3e a maKo!ity of 0f!icans in his ca+inet, he was 3oted o$t in 4>I6. #is 3ote!s lacked his confidence in m$ltiH!acialism as the im2e!ial e 2e!iments in 0f!ica a!o$nd them degene!ated. The Belgian Congo colla2sed into +loody chaos. They had little confidence in 0f!ican !$le o! 2oliticians as they watched the 3iolence at home in the 0f!ican townshi2s whe!e the nationalists st!o3e to +$ild s$22o!t +y fai! means and fo$l. Whitehead.s !efo!m co$ld ne3e! satisfy the demand fo! selfHdete!mination. 1n any case he did not ha3e the o22o!t$nity to com2lete his 2!og!amme of !efo!m. Whitehead did achie3e a g!eate! meas$!e of a$tonomy fo! So$the!n )hodesia in his lengthy negotiations with the B!itish f!om 4>A> to 4>I4 +$t he did not sec$!e the ,$asiHdominion stat$s he had 2!omised. (&$ll dominion stat$s, of co$!se, im2lied the end of &ede!ation.) By midH'an$a!y 4>I4 a constit$tional fo!m$la was acce2ted +y e3e!yone, incl$ding (komo, +$t with the e ce2tion of the white o22osition 9ominion Pa!ty. The constit$tion contained a mechanism, th!o$gh two !olls and c!ossH3oting, to ens$!e a g!owing 0f!ican infl$ence in 2a!liament. This fo!m$la was acce2ted +y a !efe!end$m of the electo!ate in 4>I4. 1f (komo had st$ck to his 2!omise he co$ld ha3e +een Rim+a+we.s fi!st 2!esident and the ins$!gency might not ha3e ha22ened. Whitehead.s effo!t to !efo!m gene!ated a coalition of white o22osition in 4>I6. The 9ominion Pa!ty and indi3id$al mem+e!s f!om othe! 2a!ties, incl$ding 1an 9o$glas Smith, came togethe! to fo!m the )hodesian &!ont, led +y Winston field. The )hodesian &!ont defeated Whitehead in 4>I6. The 2otential 2o2$la!ity of Whitehead.s m$lti!acial ideals !efo!ms also 2!o3oked 3iolent 0f!ican nationalist o22osition. #e was fo!ced to !es2ond +$t his actions only dee2ened the 0f!icans. sense of g!ie3ance. 0fte! +anning the 0(C in &e+!$a!y 4>A> th!o$gh decla!ing an eme!gency, he +!o$ght in sec$!ity 2owe!s of 2!e3enti3e detention, +anning and the like witho$t the need to !eso!t to eme!gency 2owe!s. #is 0f!ican o22onents sim2ly fo!med anothe! 2a!ty, the (ational 9emoc!atic Pa!ty ((9P), in 9ecem+e! 4>A> and demanded total emanci2ation. 1n midH4>I5 the (9P.s demands fo! 2owe! 2!o3oked 3iolence in Salis+$!y and B$lawayo and the a!!est of leade!s. Whitehead.s !es2onse was to st!engthen his 2olice fo!ce, the B!itish So$th 0f!ica Police (BS0P) and to esta+lish a la!ge m$ltiH!acial 3ol$ntee! 2olice !ese!3e. Contin$ing 3iolence +!ed inc!eased militancy and the (9P, +y then led +y 'osh$a (komo, demanded immediate maKo!ity !$le. Jiolence in Octo+e! 4>I5 was se!io$s eno$gh fo! the 2olice to lose thei! en3ia+le !eco!d of not ha3ing killed anyone in the co$!se of thei! d$ties that cent$!y. Se3en 0f!icans died in 2!olonged $n!est. Whitehead int!od$ced the Law and O!de! ("aintenance) Bill which g!eatly inc!eased 2olice 2owe!s and laid down hea3y 2enalties fo! a!son, stoning and intimidation. The Bill.s !ece2tion was so $ni3e!sally hostile that the Chief '$stice of the &ede!ation, Si! )o+e!t T!edgold, !esigned and 2!o2osed to head a national go3e!nment. Whitehead modified the Bill +$t it !emained d!aconian. #e also acce2ted the 0f!ican nationalists at his negotiations. Beca$se Whitehead and the B!itish igno!ed (komo.s !e2$diation of the new constit$tion in ea!ly 4>I4, the (9P decided to contin$e its !esistance. "o!e diso!de! 2!o3oked Whitehead to +an the (9P in 9ecem+e!, whe!e$2on, Dnomo c!eated the Rim+a+we 0f!ican Peo2le.s Fnion (R0PF) 2ledged to sec$!e maKo!ity !$le. 0 yea! late!, in 9ecem+e! 4>I6, Whitehead was o$sted in the fi!st election $nde! the new constit$tion. The sense of o$t!age engende!ed +y the new laws and 2!omises of Whitehead.s o22onents, the )hodesian &!ont, to defend the Land 022o!tionment 0ct, to !eKect 0f!ican domination and to o+tain inde2endence, only con3inced the nationalists that the only 2ath to thei! goals was th!o$gh 3iolent !e3ol$tion. Th!ee months +efo!e the election H in ea!ly Se2tem+e! H a .*ene!al Ched$. of the Rim+a+we Li+e!ation 0!my 2!oclaimed the .Rim+a+we )e3ol$tion. and o!de!ed 0f!icans to Koin his a!my. The!e was an o$t+!eak of sa+otage and a!son (incl$ding setting fi!e to the BS0 Com2any.s fo!ests nea! "elsette!). Whitehead +anned R0PF and decla!ed that it wo$ld not +e allowed to !ea22ea! in anothe! g$ise. (komo, who was o$t of the co$nt!y, set $2 R0PF as an e te!nal 2a!ty in 9a!Hes Salaam $nde! the ca!e of the )e3e!end (da+aningi Sithole. The!e followed detentions, 2olice !aids and the fi!st $nco3e!ing of stocks of e 2losi3es and wea2ons, incl$ding s$+Hmachine g$ns and handHg$ns. 4 5>= 2e!sons we!e a!!ested. The wa! of li+e!ation, o! .Chim$!enga., co$ld +e said to ha3e dated f!om this moment.

"he Advent of the 8hodesian :ront The )hodesian &!ont.s fi!st 2!io!ity in 4>IE was to sec$!e inde2endence, a!g$ing with the B!itish that the 4>I4 constit$tion with mino! adK$stments co$ld se!3e as a +asis fo! inde2endence +eca$se it did not +a! e3ent$al 0f!ican domination. 1t was logical, the &!ont a!g$ed, that, as the no!the!n te!!ito!ies we!e mo3ing !a2idly to inde2endence, So$the!n )hodesia, +eing the most e 2e!ienced in selfH go3e!nment, sho$ld do likewise. The B!itish, howe3e!, co$ld not contem2late gi3ing a te!!ito!y inde2endence on any othe! +asis than ad$lt s$ff!age. ?et they ke2t holding o$t the ho2e that something slightly less than maKo!ity !$le wo$ld s$ffice +$t wo$ld ne3e! gi3e &ield 2!ecise conditions fo! inde2endence. The t!$th was that they !ega!ded white !$le, whate3e! its 3al$e, as an anach!onism in the +!a3e new days of inde2endent 0f!ica and they wo$ld not ha;a!d offending the 0f!oH0sian mem+e!s of the Commonwealth and the Fnited (ations +y s$staining it. Concent!ating on dismantling the &ede!ation and gi3ing inde2endence to (o!the!n )hodesia and (yasaland, the B!itish stalled &ield with 3ag$e insin$ations that So$the!n )hodesia wo$ld +e .looked afte!.. &ield.s fail$!e to make 2!og!ess +!o$ght 1an Smith to 2owe! in 02!il 4>I=. #is o22onents 2!es$med that $nilate!al action was now intended. Smith.s ad3ent was g!eeted with !iots in the 0f!ican townshi2s o3e! the detention of (komo and othe!s. P!io! to that, in 4>IE, a !es$!gence of $!+an 3iolence had +een ,$elled +y mandato!y death sentences fo! 2et!ol +om+ing. Then in 0$g$st 4>IE, the 0f!ican nationalist mo3ement s2lit with Sithole leading the Rim+a+we 0f!ican (ational Fnion (R0(F), lea3ing (komo with the !$m2 which he called the Peo2le.s Ca!etake! Co$ncil (R0PF in inte!nal g$ise) $ntil it, too, was +anned. R0(F 2!om2tly dis2atched yo$ng men fo! g$e!!illa t!aining in China. The fi!st of the te!!o! killings was the m$!de! at "elsette! of P.'.0. O+e!hol;e! in '$ly 4>I=. The!e was mino! $!+an $n!est +$t the new *o3e!nment so$ght to sec$!e the !$!al a!eas +y enhancing the image of the t!i+al leade!s and !$!al co$ncils. The!e was no 2!og!ess on the inde2endence iss$e. 0 B!itish gene!al election was d$e in 4>I= and "acmillan.s !e2lacement as 2!ime ministe!, Si! 0le 9o$glasH#ome, was !el$ctant to take a decision which might +!eak the Commonwealth. The B!itish La+o$! Pa!ty was e3en mo!e hostile to )hodesian &!ont as2i!ations, lea3ing Smith with only the 2!os2ect of $nilate!al action on inde2endence o! constit$tional change to +!ing in 0f!ican maKo!ity !$le. The idea of F91 was not new. 1t had +een th!eatened +y #$ggins and Welensky in the !ecent 2ast when the B!itish had thwa!ted them. The 2olitical $nce!tainty made a settlement im2e!ati3e +$t Smith faced only !e+$ff. &o! the fi!st time since its ince2tion, So$the!n )hodesia was not in3ited to the ann$al Commonwealth P!ime "iniste!s Confe!ence whe!e the 0f!oH0sians +egan to dictate te!ms. This d!ew mo!e th!eats of F91. 1n Se2tem+e! 4>I= 9o$glasH#ome said he wo$ld acce2t the 4>I4 Constit$tion as a fo!m$la fo! inde2endence if Smith co$ld 2!o3e that the maKo!ity of the inha+itants of )hodesia we!e in fa3o$! of it. Smith.s !es2onse was to hold a !efe!end$m on the iss$e and to con3ene an inda+a of t!i+al chiefs and headmen, a!g$ing that, as eight of ten 0f!icans li3ed in the t!i+al a!eas and as the mem+e!shi2 of the 0f!ican nationalist 2a!ties had +een concent!ated in the towns, the chiefs !eflected t!i+al o2inion. Both 2!od$ced !es$lts fa3o$!a+le to Smith +$t we!e !eKected +y the new La+o$! *o3e!nment of #a!old Wilson which was elected on the 4A Octo+e!. Wilson wo$ld not, and 2e!ha2s (gi3en his na!!ow maKo!ity in the Commons) co$ld not, allow the 2e!2et$ation of white !$le. Stiff wa!nings f!om Wilson, halfHhea!ted negotiations, the fail$!e of the B!itish to offe! anything +eyond si +asic 2!inci2les fo! inde2endence offe!ed Smith nothing to sell to his electo!ate. By 44 (o3em+e! 4>IA Smith and Wilson we!e so fa! a2a!t that Smith had nothing left to do +$t to decla!e F91. "he 7onse'uences of 9/* B!itain !ecoiled in ange!s at this fi!st !e+ellion +y a B!itish te!!ito!y since the 0me!ican !e3ol$tion. Wilson da!ed not !isk the $se of fo!ce, des2ite 3ocife!o$s demands f!om the 0f!icans, +eca$se of his small maKo!ity and the 2ossi+ility that his fo!ces wo$ld not fight. 1nstead, Wilson a22lied sanctions and +acked them +y de2loying two ca!!ie! task fo!ces to c$t off )hodesia.s s$22ly of oil. Late!, to sec$!e inte!national coHo2e!ation, Wilson sec$!ed selecti3e Fnited (ations. mandato!y sanctions in 4>II and made them total in 4>I7. On the s$!face the wo!ld coHo2e!ated with Wilson, +$t $nde!neath its t!ade with )hodesia contin$ed th!o$gh false +ills of lading, +a!te! and othe! means. The effects of sanctions we!e !ed$ced +y tight management of the economy. To+acco g!owing contin$ed, often s$+sidised, +$t the fa!me!s di3e!sified and fed the g!owing 2o2$lation. Local s$+stit$tes !e2laced im2o!ts whe!e 2ossi+le. )hodesia had a+$ndant coal +$t no moto! f$el so im2o!ted s$22lies we!e eked o$t with s$ga!Hde!i3ed ethanol. )ifle and othe! amm$nition was not man$fact$!ed +$t ai!c!aft +om+s we!e. Small a!ms +egan to +e made +$t most wea2ons had to +e 2$!chased a+!oad o! ca2t$!ed. &$el, a!ms and amm$nition constit$ted )hodesia.s 0chilles.heel and wo$ld +e e 2loited when So$th 0f!ica.s 2!ime ministe!, B.'. Jo!ste!, wanted his way. Sanctions we!e also ne$t!alised +y the coHo2e!ation of )hodesia.s neigh+o$!s, Po!t$g$eseH!$led "o;am+i,$e and So$th 0f!ica. (eithe! !ecognised )hodesia +$t +oth ke2t he! !o$tes o2en to the sea, and, in So$th 0f!ica.s case, s$22lied many of he! wants and late! 2!o3ided he! with aid to kee2 he! a!mies in the field. )hodesia.s economy e3en g!ew $ntil the midHse3enties when c!i22ling d!o$ght, wo!ld de2!ession, high oil 2!ices, the cost of wa! and the loss of "o;am+i,$e as an ally, im2osed se3e!e st!ains. (e3e! se3e!e eno$gh, nonetheless, to fo!ce a s$!!ende!. 1f )hodesia co$ld weathe! sanctions, the!e had to +e a 2olitical settlement. The )hodesians clea!ly $nde!stood the constit$tional iss$e co$ld not +e !esol3ed on a +attlefield. F91 was $nacce2ta+le to the wo!ld and any settlement wo$ld +e in3alid in inte!national law $ntil B!itain sanctioned it. B!itain wo$ld not shift he! g!o$nd on maKo!ity !$le. 0nything less was $nacce2ta+le at home and, in addition she wo$ld not ha;a!d the Commonwealth fo! )hodesia o! he! standing with the Fnited (ations. 0cco!dingly f!om 4>II to 4><> the!e we!e almost contin$al 2olitical negotiations. The!e we!e talks in 4>II and 4>I7 +etween Smith and the B!itish on the wa!shi2s, Tige! and &ea!less, and e3en a settlement in 4><6 which was thwa!ted +y the 0f!ican nationalists, led

+y Bisho2 "$;o!ewa, !eKecting it. The B!itish lost inte!est +$t the So$th 0f!icans, wo!!ied +y the conse,$ences of the co$2 in Po!t$gal in 4><=, 2!essed Smith into f$tile negotiations with the 0f!ican nationalists in 4><= and 4><A. The int!od$ction of 2!ess$!e f!om the Fnited States, in the 2e!son of #en!y Dissinge!, com+ined with g!owing economic 2!o+lems and a widening of the wa!, +oth conse,$ences of "o;am+i,$e.s hostility, led Smith to acce2t maKo!ity !$le as an immediate 2!os2ect. To 2e!s$ade him, So$th 0f!ica c$t his f$el and amm$nition s$22lies and !emo3ed 3ial helico2te! 2ilots. 0llH2a!ty talks followed in *ene3a in 9ecem+e! 4><I +$t failed +eca$se of m$t$al int!ansigence. Smith then d!ew "$;o!ewa, Sithole (+y then o$sted f!om R0(F +y "$ga+e) and a t!i+al 2a!ty into a settlement on the +asis of maKo!ity !$le. So$th 0f!ica s$22o!ted Smith.s settlement of E "a!ch 4><7 +$t the wo!ld !ef$sed to !ecognise the new constit$tion o! the new 2!ime ministe!, "$;o!ewa, and his go3e!nment which was elected in 02!il 4><>. "a!ga!et Thatche! was the key to s$ch !ecognition +$t she allowed he!self to +e 2e!s$aded to offe! instead a f$!the! attem2t at settlement. S$ch a settlement was fo!thcoming f!om the confe!ence at Lancaste! #o$se. The B!itish ho2ed that it wo$ld 2!od$ce a coalition of inte!nal 2a!ties and the !e3ol$tiona!y mo3ements +$t instead it allowed "$ga+e to win. "he African #ationalist *nsurgents The ;imbabwe African #ational $iberation Army <;A#$A= of R0(F and the ;imbabwe 1eople s $iberation Amy <;*18A= of R0PF +ased thei! cam2aigns on thei! inte!2!etations of "a! istHLeninist !e3ol$tiona!y theo!y of +loody !e3ol$tion. R1P)0 took ad3ice f!om thei! So3iet inst!$cto!s in fo!m$lating its 3e!sion. R0(L0 had Chinese inst!$cto!s +$t ne3e! act$ally 2!og!essed 3e!y fa! th!o$gh the "aoist 2hases of !e3ol$tion. Fnlike R1P)0, R0(L0 was inca2a+le of mo$nting a con3entional th!eat. 1t had masses of illHdisci2lined and +a!ely t!ained g$e!!illas and was $na+le to sei;e and !etain an o+Kecti3e. T!aining standa!ds we!e so low that many cad!es did not clean thei! !ifles. (eithe! mo3ement was a+le to engende! !eal s$22o!t amongst the $!+an 2o2$lations, s2a!ing the )hodesian sec$!ity fo!ces an $!+an ins$!gency. *ood 2olice wo!k, +ased on intelligence, stam2ed o$t any $!+an th!eat. The ins$!gency was a !$!al one with +oth mo3ements attem2ting to sec$!e 2easant s$22o!t and to !ec!$it fighte!s while ha!assing the administ!ation and the white inha+itants. Fnlike the townHdewelle!s, the !$!al whites faced dange! and many we!e killed +$t in 4><> the!e we!e still I 555 white fa!me!s on the land e3en tho$gh it was sim2le eno$gh to d!i3e them off it. They we!e 3$lne!a+le e3e!y time they left the homestead. R0(L0, in the end, was 2!esent on a mo!e o! less 2e!manent +asis in o3e! half the co$nt!y and in addition was fighting a ci3il wa! against R1P)0 des2ite the $nion of thei! 2olitical 2a!ties afte! 4><7. 1t was R0(L0.s intention to occ$2y the g!o$nd, s$22lant the administ!ation in !$!al a!eas and then mo$nt the final con3entional cam2aign. R1P)0, on the ad3ice of "oscow, +$ilt $2 its con3entional fo!ces H moto!ised with So3iet a!mo$!ed 3ehicles H in Ram+ia, intending to tea! the 2!i;e of 3icto!y f!om R0(L0.s g!as2. R1P)0.s con3entional th!eat in the e3ent was to dist!act the )hodesians f!om the 2!ima!y task of d!astically setting +ack, if not defeating, R0(L0.s am+itions. So R1P)0 ke2t a light 2!esence within )hodesia, !econnoite!ing, kee2ing contact with the 2easants (and s2a!!ing with R0(L0 when they met). R0(L0, aided +y its &)EL1"O 0llies, +o!e the +!$nt of the &i!e &o!ce and the e te!nal cam2 attacks while esta+lishing themsel3es amongst the !$!al 2eo2le. Beca$se "$ga+e and his 2a!ty won the election it has +een ass$med that he had $ni3e!sal s$22o!t among the Shona. R0(L0 concent!ated on the 2oliticisation of the !$!al a!eas $sing fo!ce, 2e!s$asion, ties of kinshi2 and e3en the infl$ence of the s2i!it medi$ms. (onetheless, the !elief when R0(L0 elements de2a!ted o! we!e d!i3en o$t was 2al2a+le. 0nd mode!n !esea!ch H +y (o!ma D!ige!, fo! e am2le H has shown that in a!eas, to s$!3i3e, R0(L0 had to te!!o!ise. This was ce!tainly t!$e afte! the "$;o!ewa election in 02!il 4><> when the !$!al 2eo2le defied R0(L0.s o!de!s to the cont!a!y and t$!ned o$t in g!eat n$m+e!s to 3ote. The !es$lt of the election st$nned the cad!es $ntil Thatche!.s !ef$sal to !ecognise its o$tcome enhea!tened them. To !egain cont!ol, R0(L0 !et$!ned to te!!o!ism. (one of this im2lies that the )hodesian &!ont *o3e!nment had any chance of !etaining e3en the 2assi3e acce2tance of the t!i+al 2eo2le. "$;o;ewa, howe3e!, gi3en inte!national !ecognition, had e3e!y 2!os2ect of engende!ing s$22o!t and loyalty. "he 8hodesian Security :orces The sec$!ity fo!ces, incl$ding the 2olice, had as ea!ly as 4>AI !ecognised that the maKo! 2!o+lem conf!onting them was 0f!ican $n!est. Th$s the sec$!ity fo!ces t!ained and 2!e2a!ed fo! co$nte!Hins$!gency at home as well as !einfo!cing B!itish effo!ts in "alaya and st$dying the co$nte!Hins$!gency effo!t against the "a$ "a$ in Denya. The 0!my de3oted half its t!aining to co$nte!Hins$!gency, while the 0i! &o!ce fo!med a co$nte!Hins$!gency s,$ad!on. Beca$se ins$!gency essentially challenges the law, the 2olice took the lead with the milita!y in s$22o!t. Th$s the co$nte!Hins$!gency cam2aign +egan on a low key, led +y the BS0P. B$t inc$!sions of !elati3ely la!ge a!med g!o$2s (initially f!om Ram+ia) into $n2o2$lated a!eas, !e,$i!ed milita!y not 2olice !eaction. To fight the co$nte!Hins$!gency wa!, )hodesia em2loyed 2!ofessional se!3icemen of all !aces and !einfo!ced them with consc!i2ted national se!3icemen (se!3ing si months initially) and te!!ito!ial and !ese!3e fo!ces d!awn f!om the white, colo$!ed (mi ed !ace) and 0sian 2o2$lations. The!e was an eightHs,$ad!on 0i! &o!ce with a do;en #awke! #$nte! fighte!H+om+e!s, a handf$l of de #a3iland Jam2i!e fighte!H +om+e!s, English Elect!ic Can+e!!a +om+e!s, a do;en o! so t!ans2o!t ai!c!aft, n$m+e!s of light s$22o!t ai!c!aft and A5Hodd 0lo$ette 111 and 0g$staHBell 65I helico2te!s.

The 0!my com2!ised an a!mo$!ed ca! !egiment, an a!tille!y !egiment, a !eg$la! white infant!y +attalion (the )hodesian Light 1nfant!y), a !eg$la! +lack !egiment (the )hodesian 0f!ican )ifles) which wo$ld g!ow to th!ee o3e!Hst!ength +attalions. The!e was a s,$ad!on, and late! a !egiment, of S2ecial 0i! Se!3ice and the $no!thodo and cont!o3e!sial, if highly s$ccessf$l, 4 755 Selo$s Sco$ts. 0nothe! e 2e!imental !egiment, the *!ey Sco$ts, !e3i3ed the a!t of $sing ho!ses in +$sh wa!fa!e. The!e we!e enginee!ing, signals, se!3ice, intelligence, 2sychological action, milita!y 2olice and medical $nits in s$22o!t of the f!ontHline t!oo2s. The administ!ati3e tail was commenda+ly lean. The white, colo$!ed and 0sian national se!3icemen we!e to +e fo$nd in all these $nits as well as in a se!ies of inde2endent infant!y com2anies. The te!!ito!ial and !ese!3e t!oo2s 2!o3ided eight +attalions of the )hodesia )egiment as well as se!3ing in a 3a!iety of othe! co!2s. 02a!t f!om thei! no!mal com2lement of $nifo!med and 2lainHclothes 2e!sonnel se!3ing 1 2olice stations th!o$gho$t )hodesia, the BS0P s$22lied the S2ecial B!anch (SB) which came $nde! the Cent!al 1ntelligence O!ganisation which had +een c!eated in 4>IE to coo!dinate intelligence gathe!ing and to s$22ly e3al$ation th!o$gh its B!anch 4 which dealt with inte!nal matte!s and B!anch 6 which dealt with e te!nal affai!s incl$ding !$nning agents. The intelligence gathe!ing was assisted +y the BS0P g!o$nd co3e!age. To !einfo!ce the milita!y, the BS0P de2loyed a +attalionHsi;ed 2a!aHmilita!y s$22o!t $nit and small antiHte!!o!ist $nits (P0TF). Ci3ilian 3ol$ntee!s, +oth +lack and white, se!3ed in the Police )ese!3e, manning !oad +locks, g$a!ding fa!ms, +!idges etc. and 2!o3iding esco!ts fo! ci3ilian con3oys. The dist!ict administ!ation, 1nte!nal 0ffai!s, a!med thei! staff and $nde!took simila! f$nctions while contin$ing to go3e!n the t!i+al a!eas. The milita!y !ole was e3ent$ally taken o3e! +y the *$a!d &o!ce. The white 2a!tHtime se!3icemen we!e de2loyed +y com2any !athe! than +attalion +$t this did not lessen the dis!$2tion of thei! li3es. This, 2l$s +o!edom, discomfo!t, some dange! and a+o3e all the lack of a ce!tain 2olitical f$t$!e, swelled the !anks of the yo$ng whites emig!ating. By 4><> the dis2e!sion of thei! man2owe! meant that some !ese!3e infant!y com2anies co$ld m$ste! less than thi!ty whites fo! a de2loyment (the n$m+e!s +eing made $2 +y 0f!ican 2!ofessional soldie!s). The 2e!fo!mance in the field was $ndiminished +y and la!ge and +eing ne3e! defeated in the field, mo!ale !emained high. The )hodesian fo!ces +elie3ed themsel3es to +e an elite fo!ce and, 2e!ha2s, they we!e. 0nd it is wo!th !emem+e!ing that eighty 2e! cent of milita!y and 2olice man2owe! was 0f!ican. &!om 4>I<H4><= the )hodesian fo!ces we!e !einfo!ced +y the e,$i3alent of a +attalion of So$th 0f!ican 2olicemen de2loyed as infant!ymen, helico2te! and othe! 2ilots and late! +y )ecce commandos and 2a!at!oo2e!s. )hodesian 1ns$!gency H Pa!t 6 )et$!n to "ain Page

8hodesian *nsurgency by 1rofessor >)8)") 0ood The wa! di3ided into 2hases !o$ghly aligned to the 2olitical e3ents. 1hase *5 +?@@(+?,2) By this time Ram+ia was inde2endent and offe!ed a safe ha3en to +oth R0PF and R0(F. The mo3ements so$ght to send in g!o$2s to 2!o2agate the !e3ol$tion on the $nso2histicated ass$m2tion that the 0f!ican 2eo2le we!e !eady to !ise and assist them in d!i3ing o$t the whites. R0PF in 2a!tic$la! was dealt an almost fatal +low +y making the mistake of seeking to c!eate +ase a!eas in wild co$nt!y f!om which to sally o$t. 1n t!ansit to these a!eas, the infilt!ato!s had to c!oss the ha!sh Ram+e;i Jalley whe!e the Tonga 2eo2le we!e inhos2ita+le to them. Thei! t!acks and thei! +ases we!e fo$nd and attacked o! the infilt!ato!s inte!ce2ted +y the )hodesian sec$!ity fo!ces. The com2leteness of thei! defeat de2!essed the ins$!gents. mo!ale while it ga3e the )hodesian sec$!ity fo!ces solid g!o$nding in KointH se!3ice o2e!ations th!o$gh the 'OC system of command and cont!ol which ma imised local effo!t e3en if the!e was mo!e incohe!ence at highe! le3els. 1t also allowed the honing of small $nit tactics with the fo$! man .stick. o! halfHsection +eing ado2ted as the +asic fo!mation. One !eason was that fo$! was the n$m+e! that the 0lo$ette 111 helico2te! co$ld ca!!y. Each .stick. was commanded +y a co!2o!al ca!!ying a J#& !adio and an &( <.I6mm !ifle ((0TO). The co!2o!al had $nde! him an "0* gene!al 2$!2ose machineHg$nne! and two !iflemen, one of whom t!ained as a medic. O$t in the +$sh, the co!2o!al had an a$tonomy and !es2onsi+ilities not known in many a!mies at that le3el. 1t was a .Co!2o!al.s Wa!. fo! he had immediate command on the g!o$nd and took the initiati3e in many instances. The )hodesians de3elo2ed t!acking skills, de3ising the t!acke! com+at $nits of fo$! to fi3e men. They im2!o3ed thei! ai!HtoH g!o$nd coHo2e!ation and comm$nication H in the 2!ocess a+andoning the 2lodding 0!my !adio 2!oced$!e. They went o3e! the +o!de! to assist the Po!t$g$ese with &)EL1"O and to sto2 R0(L0 infilt!ation so$th of the Ram+e;i. The )hodesian *o3e!nment made the mistake in this initial 2hase of the wa! of failing to e 2and the 0!my with additional 0f!ican infant!y +attalions. By 4><> the!e we!e only th!ee and the last one had +a!ely +een fo!med. The!e we!e always mo!e 0f!ican !ec!$its than co$ld +e accommodated, and the additional +attalions co$ld ha3e lessened the callH$2 facto! on white mo!ale. These +attalions

wo$ld ha3e needed white office!s +$t the!e was m$ch $n$sed white leade!shi2 2otential in the white $nits. The )hodesian sec$!ity fo!ces we!e also l$lled into thinking that thei! o22onents wo$ld always cond$ct the ins$!gency in s$ch a di!ect manne!. Th$s they we!e illH2!e2a!ed in that !es2ect fo! what was to come. These we!e good yea!s fo! )hodesians, howe3e!. They we!e winning all the +attles and co$nte!ing sanctions. 1hase 2) +?,2(+?,4) E 2loiting the atmos2he!e of heightened 2olitical agitation afte! the 0f!ican !eKection of the 0ngloH)hodesian settlement of 4><6 and &)EL1"O.s s$ccess against the Po!t$g$ese so$th of the Ram+e;i, R0(L0 2enet!ated the no!thHeaste!n a!ea whe!e the t!i+al !ese!3es we!e close to the +o!de!. &)EL1"O ga3e R0(L0 what logistical s$22o!t it co$ld and had offe!ed the same to R1P)0 +$t (komo was not inte!ested. R0(L0 made ca!ef$l 2!e2a!ation fo! thei! coming cam2aign% 2olitHicising the !$!al 2eo2le in thei! "aoist fashion, esta+lishing local committees, contact men, feede!s, sec$!ity 2!oced$!es, and infilHt!ation and e it !o$tes. They !ec!$ited 2o!te!s, cached a!ms and the like. They di3ided the co$nt!y into 2!o3inces, named afte! the adKacent "o;am+i,$e 2!o3inces, and secto!s named afte! t!i+al he!oic fig$!es. Thei! +asic $nit was a section of ten to twel3e men, incl$ding a 2olitical commissa!, who wo$ld esta+lish a do;en o! mo!e +ase cam2s in an a!ea in o!de! to kee2 on the mo3e. The $nits, assem+ling in nea!+y "o;am+i,$e in g!o$2s of 65HE5, wo$ld only infilt!ate when the s$+3e!ted a!ea had +een 2!e2a!ed and contact men we!e in 2lace. R0(L0 eschewed cent!alisation of command, 2e!ha2s, +eca$se it was im2!actical. The $nit commande!s we!e chosen and dismissed +y 2o2$la! 3ote at section, detachment, secto! and 2!o3incial le3el. Comm$nications we!e +y co$!ie! and lette! (a system which the )hodesians wo$ld e 2loit). 0 section wo$ld ha3e a wide a!ea to e 2loit, 3isiting a ci!cle of +ase cam2s in t$!n to 2oliticise the nea!+y 2o2$lation, to feed, and to 2lan attacks on local ta!gets. 1n o!de! not to f!ighten !ec!$its, )hodesian fi!e2owe! was not disc$ssed. Th$s a fi!st contact co$ld +e t!a$matic to the new cad!es and cont!i+$ted to thei! 2oo! 2e!fo!mance in fi!e fights. #a3ing esta+lished a 2!esence, the R0(F cad!es (led +y )e (hongo) attacked a white fa!m, 0ltena &a!m, on 6E 9ecem+e! 4><6. The )hodesians we!e now conf!onted with the 2!o+lem of thei! enemy li3ing among thei! own kind. The !es2onse had many facets. The system of Koint command was tested and im2!o3ed +y 2sychological wa!fa!e was neglected. Pe!ha2s this was +eca$se the wa! co$ld not +e won while the whites we!e in 2olitical cont!ol. 1n addition, the )hodesians did not $nde!stand K$st how se!io$s R0(L0.s 2enet!ation of the no!thHeast was and we!e slow to e3ol3e a co$nte!Hins$!gency st!ategy. (e3e!theless, )hodesians had fo$ght in "alaya and ado2ted a lesson lea!nt the!e and in Denya. The !$!al 2eo2le we!e mo3ed into 2!otected 3illages, designed to c$t the ins$!gents off f!om thei! s$22lies of food and comfo!t and to enco$!age the loyalty of the !$!al 2eo2le +y 2!otecting them and 2!o3iding them with new se!3ices. These 3illages we!e ne3e! ade,$ately 2oliced o! 2!otected and the 2eo2le we!e not in3ol3ed in thei! management o! 2e!s$aded of thei! necessity. The ch!onic sho!tage of finance 2!ecl$ded 2!o2e! de3elo2ment of the 3illages. They we!e often const!$cted too fa! f!om the 2easants. fields and most im2o!tant of all took the 2eo2le away f!om the +$!ial sites of thei! ancesto!s which they 3ene!ated. 0 key facto! which was igno!ed was that in "alaya the conce2t had wo!ked +eca$se it 2!otected a "alayan maKo!ity against a Chinese mino!ity, whe!eas in )hodesia the ins$!gents we!e sons of the 3illage. 0 f$!the! mistake was not to sta!t +y esta+lishing the PJs in the less affected a!eas !athe! than the most s$+3e!ted. 0ttem2ts at food cont!ol we!e +y and la!ge ineffecti3e and in late! yea!s wo$ld incl$de the $se of defoliants on c!o2s in a!eas f!om which the 2easants had +een !emo3ed. So inade,$ate was the administ!ation of the PJs that R0(L0 often $sed them as 2laces of safe ha3en. The PJ system was dismantled in 4><7 as a 2olitical mo3e designed to +oost the !e2$tation of Bisho2 "$;o!ewa. Ent!$sted with the intelligence f$nction the 2olice, with the assistance of 1nte!nal 0ffai!s, so$ght to $nco3e! the identity of the ins$!gents, $sing $nifo!med and 2lainHclothed men. The 0!my c!ossHg!ained the co$nt!yside looking fo! t!acksN am+$shed infilt!ation !o$tesN and e3ol3ed the conce2t of &i!e &o!ce in 4><=. &i!e &o!ce, $sing helico2te!s, +ackH$2 3ehicles and s$22o!t t!oo2s, was an e 2ensi3e tool +$t it soon yielded im2!essi3e !es$lts. The s2ecial fo!ces had two initial !oles% the S0S went o3e! the +o!de! to find incoming g!o$2s and s$22liesN while the new and highly sec!et Selo$s Sco$ts +egan to de3elo2 the a!t of 2se$do wa!fa!e, $sing disg$ises to 2enet!ate R0(L0 g!o$2s and eliminate them o! to g$ide &i!e &o!ce to them. The 0!my +egan to lay a +a!!ie! of mines along the +o!de! to dete! infilt!ation o! at least to channel it. 0t fist it laid a classical +o!de! minefield 6A mete!s wide +$t, +eca$se the!e we!e not eno$gh t!oo2s to dominate it o! at least monito! it, the conce2t was changed to a width of anything +etween 7 H E5 kilomet!es with 2!ess$!e mines s$22lementing 2lo$ghsha!es. E3ent$ally the length was 4 =55 kilomet!es, the longest milita!y o+stacle in the wo!ld o$tside the *!eat Wall of China. The minefield had its c!itics and has left a te!!i+le legacy to Rim+a+we +$t R0(L0 was to estimate that it had s$ffe!ed 7 555 cas$alties in t!ansit ac!oss the mines. R0(L0 (and R1P)0 to a ce!tain e tent), t!ied to 2a!alyse the )hodesian effo!t and economy +y 2lanting So3iet antiHtank landmines in the !oads. &!om 4><6H4>75 the!e we!e 6 A5= 3ehicle detonations of landmines (mainly So3iet T"=Is), killing IE6 2eo2le and inK$!ing = =45. The mining of !oads inc!eased as the wa! intensifiedN indeed the inc!ease f!om 4><7 (7>= mines o! 6.== mines we!e detonated o! !eco3e!ed a day) +y 6EE.<V in 4><> (6 57> mines o! A.<6 mines a day). 1n !es2onse, the )hodesians coHo2e!ated with the So$th 0f!icans to de3elo2 a !ange of mine 2!otected 3ehicles. They +egan +y !e2lacing ai! in ty!es with wate! which a+so!+ed some of the +last and !ed$ced the heat of the e 2losion. They 2!otected the +odies with steel deflecto! 2lates, sand+ags and mine con3eyo! +elting. J sha2es dis2e!sed +last. 9eaths in s$ch 3ehicles +ecame $n$s$al e3ents. The de3elo2ment has led to the !ema!ka+le So$th 0f!ican "am+a and (yala wheeled light t!oo2 ca!!ie!s. 0 )hodesian enginee! in3ented the Pookie mine detection 3ehicle H a wo!d fi!st. The Pookie was +$ilt o$t of JW 2a!ts and $sed wide &o!m$la One !acing ty!es (gi3ing light g!o$nd 2!ess$!e) and "ilton elect!onic metal detecto!s. 1t t!a3elled ahead of a con3oy, detecting mines at s2eed. 1n all the Pookie set off only nine mines (some of them

command detonated). One o2e!ato! was killed. AA5 mines we!e detected and disa!med in the o2en !oads. 0 +icycle mo$nted 3e!sion of the Pookie was made fo! clea!ing +$sh ai!st!i2s afte! ai!c!aft hit mines when ta iing. The So3iet ad3ise!s so$ght fo! n$llify the Pookie +y switching to nonHmetallic mines (T"B0 444 +akelite mines). The )hodesians co$nte!ed with disHinfo!mation claiming that new cylind!ically sha2ed metal detecto!s co$ld analyse the density of the soil and find the T"B0. The So3iets seemed to +e taken in. 1n fact, the cylind!ical sha2e was designed to !ed$ce 3i+!ation. The 0i! &o!ce !efined and im2!o3ed its coo2e!ation with g!o$nd fo!ces H incl$ding t!acking f!om the ai!, s2otting cam2s +y tellHtale .c!a22ing 2atte!ns.. 1t s2onso!ed the 2!od$ction of a sing$la!ly lethal !ange of ai!c!aft wea2ons H the &!antan, 0l2ha and *olf +om+s and the $nde!H$sed flechette,and othe! de3ices s$ch as !adioHacti3ated ta!get ma!ke!s and the .!oad !$nne!. o! a +$gged 2o!ta+le comme!cial t!ansisto! !adio !ecei3e!. These we!e left whe!e the ins$!gents wo$ld ac,$i!e them. When the !adio as switched off, to listen to ai!c!aft o! othe! noise, the !adio t!ansmitted a signal on which &i!e &o!ce co$ld home in on. 1hase 35 +?,4(+?,, 0ltho$gh +y the end of 4><=, the )hodesians and thei! So$th 0f!ican 2olice allies had !ed$ced the n$m+e! of ins$!gents to I5 and has confined them to a !emote co!ne! in the no!thHeast, the So$th 0f!ican *o3e!nment decided that the game was $2 and that Smith m$st +e fo!ced into a settlement. The !eason was that the milita!y co$2 in Po!t$gal in 02!il 4><= had +!o$ght &)EL1"O to 2owe! and the!e+y had gi3en R0(L0 the whole of "o;am+i,$e as a safe ha3en. &)EL1"O also th!eatened to c$t half of )hodesia.s s$22ly lines to the sea. The So$th 0f!icanHd!i3en 2eace talks and ceaseHfi!e in 9ecem+e! 4><= failed, the So$th 0f!icans withd!ew thei! 2olice and the wa! intensified with R0(L0 inc!easingly $sing the safe ha3en of "o;am+i,$e which meant they co$ld 2enet!ate the whole of the easte!n +o!de!. 1n 4><I, afte! "o;am+i,$e had th!own in its lot o2enly with "$ga+e and R0(F, )hodesia was fo!ced to inc!ease the se!3ice commitments of its citi;ens and to o2en new +!igade o2e!ational a!eas H O2e!ations Th!ashe! (in the east), )e2$lse (in the so$thHeast) and to deal with the lesse! th!eat of R1P)0, now $sing Botswana, Tangent (in the west). R0(L0 s2!ead o$t among the Shona 2eo2le attem2ting to 2oliticise them +y fai! means o! fo$l. R1P)0, on the othe! hand, 2!efe!!ed to !ec!$it fighte!s and wo$ld only e e!t se!io$s 2!ess$!e o$t of Botswana and Ram+ia in 4><<. The inc!eased th!eat 2!o3oked the )hodesians, in the fo!m of the S0S, Selo$s Sco$ts, and, on occasions, othe! $nits, to +egin !aiding g$e!!illa cam2s and comm$nications des2ite So$th 0f!ican 2!ess$!e to kee2 the wa! o$t of "o;am+i,$e. The fi!st maKo! !aid in 0$g$st 4><I was on (yad;onia, a R0(L0 cam2, whe!e the Selo$s Sco$ts in 3ehicles $sed s$+te!f$ge to 2enet!ate the cam2 and killed 4 655 inmates. This +!o$ght a wo!ld o$tc!y and ga3e Jo!ste! an e c$se to 2$llHo$t his helico2te! 2ilots and to 2$t 2!ess$!e on Smith th!o$gh Dissinge! to concede maKo!ity !$le. E te!nal missions, on a lesse! scale, contin$ed. 1nte!nally, 3a!io$s esta+lished techni,$es we!e !efined. By ea!ly 4><< &i!e &o!ce had +een !einfo!ced +y newly t!ained 2a!at!oo2e!s ca!!ied in C=< 9akotas to s$22lement the heli+o!ne t!oo2s. (ew $nits came into +eing. The )hodesian 1ntelligence Co!2s, fo!med in 4><A, s$22lemented the intelligence effo!t. 1ncl$ded in its accom2lishments was the 2!od$ction of $2HtoHtheHmin$te com+at ma2s $sing o3e!lays. The intelligence effo!t, howe3e!, !emained too f!agmented and too 2olice o!iented. 0 Psychological Wa!fa!e Fnit was fo!med, +$t faced an im2ossi+le task $ntil 2olitical change had +een w!o$ght. The *!ey Sco$ts +!o$ght +ack the mo$nted infant!y tactics of the Boe! Wa! which we!e effecti3e in flat +$sh co$nt!y. The *$a!d &o!ce was fo!med to defend the s2!eading 2!otected 3illages. The economic, 2olitical and sec$!ity diffic$lties led Smith to attem2t to im2!o3e the Koint se!3ice command and cont!ol, and to eliminate some of the Kealo$sies the!ein, +y fo!ming in "a!ch 4><< a "inist!y of Com+ined O2e!ations 2lacing the ci3ilian and milita!y wa! effo!t $nde! a single commande!, Lie$tenant *ene!al Walls. This, and the inc!easing decla!ation of ma!tial law in affected dist!icts, did tighten $2 the wa! effo!t. B$t the mo3e was mo!e a com2!omise than a !ationalisation and its s$ccess was limited. S$2!eme command of a co$nte!Hins$!gency effo!t in a colony with an e ec$ti3e go3e!no! is one thing +$t in a co$nt!y with a democ!atic system is anothe!. Can a milita!y s$2!emo coe ist with an elected 2!ime ministe!X The )hodesian wa! effo!t !emained !eacti3e and lacking in a cohe!ent st!ategy. B$t then again, the milita!y co$ld only contain the wa! H any sol$tion had to +e a 2olitical one. 1hase 45 +?,,(+?,?) 1n this 2e!iod Smith so$ght and sec$!ed the inte!nal 2olitical settlement which +!o$ght in maKo!ity !$le, 3otes fo! all, and Bisho2 "$;o!ewa as P!ime "iniste!. The !es2onse f!om R0(F and R0PF was an attem2t at 2olitical and milita!y $nity which ended in +itte! inte!Hfaction fighting. 1n addition, R0(L0 intensified the wa! at g!eat cost to themsel3es. (komo.s R1P)0 2osed the g!eatest th!eat in a con3entional sense +$t thei! +ase was in Ram+ia ac!oss the Ram+e;i )i3e!. They lacked a +!idgehead ac!oss the !i3e! and had long 3$lne!a+le lines of comm$nication. R0(L0 had se3e!e logistical 2!o+lems and lacked the mo!ale, the disci2line and the t!aining fo! 2ositional wa!fa!e. (eithe! fo!ce had ade,$ate !ese!3es o! ai! s$22o!t and, +eing !i3als, when they met in )hodesia they fo$ght. Within the co$nt!y, R1P)0 was mo!e diffic$lt to find in the mo!e s2a!sely 2o2$lated west. R1P)0 infilt!ato!s, $nlike R0(L0, t!a3elled in small g!o$2s and ca!!ied food, co3e!ing g!eat distances witho$t att!acting attention +eca$se they did not ha3e to 3isit 3illages en !o$tes.

The )hodesians s$ffe!ed not only f!om the inc!eased fighting +$t f!om the loss of man2owe! as whites +egan to emig!ate at the !ate of 6 555 a month. The ea!ly fail$!e to e 2and the 0f!ican +attalions was +eing !ectified +$t the Sec$!ity &o!ces co$ld not e 2and at a !ate to match the g!owth of the n$m+e!s of ins$!gents and wo$ld soon +e o$tn$m+e!ed in the field e ce2t at times of total mo+ilisation. E3en so the wa! effo!t im2!o3ed with enth$siastic So$th 0f!ican s$22o!t and, 2e!ha2s +eca$se the!e was some 2!os2ect of s$ccess in the 2olitical field, at last, in 4><7, the )hodesians 2!od$ced a st!ategy which in3ol3ed

4. 6.

P!otecting .Jital 0sset *!o$nd. containing economic assets s$ch as mines, f$el d$m2s, facto!ies, key fa!ming a!eas, +!idges, !ailways and the like. 9enying R0(L0 the .*!o$nd of Tactical 1m2o!tance. (in othe! wo!ds the t!i+al lands) as a +ase f!om which to mo$nt attacks on c!$cial assets +y

o o
E. =.

inse!ting la!ge n$m+e!s of a$ ilia!ies into this a!ea to assist in the !eHesta+lishment of the ci3il administ!ation and to dest!oy the links +etween the ins$!gents and thei! 2olitical s$22o!te!s. They wo$ld deny the g!o$nd to R0(L0. $sing the c!$cial st!ategic mo+ility of &i!e &o!ce and high density t!oo2 o2e!ations against R0(L0 infested a!eas.

2!e3enting inc$!sions th!o$gh +o!de! cont!ol. !aiding neigh+o$!ing co$nt!ies, 2a!tic$la!ly "o;am+i,$e and Ram+ia, to dis!$2t R0(L0.s and R1P)0.s command and cont!ol, to dest!oy +ase facilities, amm$nition and food s$22lies, to ha!ass the !einfo!cements, and to ham2e! mo3ement +y ae!ial +om+a!dment, mining and am+$shing of !o$tes.

The inno3ation of a$ ilia!y fo!ces loyal to the inte!nal 0f!ican national 2a!ties was a fo!m$la fo! s$ccess, a ge!m of an idea which most of the )hodesian sec$!ity esta+lishment did not ha3e the imagination to g!as2 and instead !ecoiled at thei! illHdisci2line. The 45 555 a$ ilia!ies, $sing identical tactics to R0(L0 and li3ing amongst the t!i+esmen, +egan to deny the ins$!gents the +$sh. &o! the fi!st time the )hodesians had fo!ces to occ$2y the g!o$nd that the &i!e &o!ce was winning. &i!e &o!ce +ecame mo!e deadly +$t the o2e!ational demands on the fo!ces we!e e cessi3e. Pa!at!oo2e!s fo$nd themsel3es K$m2ing o2e!ationally e3e!y day, with th!ee o2e!ational K$m2s as a !eco!d H something no othe! 2a!at!oo2e!s had e3e! done. When e te!nal cam2s we!e attacked, the sho!tage of s$ita+le ai!c!aft, 2ilots and t!ained 2e!sonnel often meant that the attacking fo!ces we!e se!io$sly o$tn$m+e!ed as has al!eady +een mentioned. "any attacks we!e mo$nted, e3en on the o$tski!ts of L$saka in Ram+ia. The !aiding fo!ces we!e not yet allowed to st!ike at economic ta!gets +eca$se the *o3e!nment was loathe to e cite the o$tside wo!ld. "ost of the e te!nal effo!t was, nat$!ally, !econnaissance +y the S0S and twoHman teams f!om the Selo$s Sco$ts. B$t an addend$m to these effo!ts was the s2onso!ing +y the C1O of the antiH&)EL1"O !esistance mo3ement, the )esistencia (ational "oYam+i,$e ()E(0"O), which +egan to weaken &)EL1"O and allow the )hodesians g!eate! f!eedom of action. 1hase A5 +?,? April ( March +?.The election of "$;o!ewa was a st$nning defeat fo! R0(L0 and R1P)0 who had o!de!ed the 2o2$lation not to 3ote only to +e defied +y a I6V 2oll of the newly enf!anchised 2o2$lation. The )hodesian sec$!ity fo!ces mo+ilised I5 555 men (e3e!y man they co$ld m$ste!) to 2!otect the election and to e!adicate the th!eat to it. With the hel2 of So$th 0f!ican !einfo!cements, 6E5 ins$!gents we!e killed in the th!ee days of the election and IA5 in all in 02!il. The ins$!gents went to g!o$nd o! s$!!ende!ed. The R0(L0 commande!s left the co$nt!y fo! o!de!s and fo! si weeks thei! men did nothing. The wa! 3i!t$ally sto22ed. 1f, afte! +eing elected in "ay, "a!ga!et Thatche! had st$ck to he! 2a!ty.s election 2!omise to !ecognise "$;o!ewa.s election and to s$22o!t him (as she wo$ld "$ga+e in 4>75), histo!y co$ld ha3e +een 3e!y diffe!ent. With 2o2$la! s$22o!t at home and legitimacy in inte!national law, "$;o!ewa.s *o3e!nment might ha3e defeated "$ga+e and (komo. Thatche! changed he! mind, the m$!de!s in the t!i+al a!eas inc!eased as the ins$!gents so$ght to !easse!t thei! infl$ence, and the mo!ale of the sec$!ity fo!ces and the 2$+lic sank. By this time "$ga+e and (komo had ente!ed a ma!!iage of con3enience fo! the 2$!2oses of the confe!ence and to o3e!th!ow "$;o!ewa. Thei! $nity had long +een 2!essed on them +y the O0F and the aid dono!s. ?et thei! a!mies, R0(L0 and R1P)0, wo$ld not t!ain togethe! and, when they met in the field, they fo$ght e3en mo!e +itte!ly. Thei! st!ategies also diffe!ed ma!kedly. R1P)0.s st!ategy, as has +een disc$ssed, was to !o+ R0(L0 of 3icto!y at a decisi3e moment. R1P)0 de2loyed th!ee tho$sand men in )hodesia as a 3ang$a!d 2!e2a!ing the way fo! the con3entional a!my. R0(L0 !es2onded with an offensi3e into "ata+eleland which R1P)0 co$nte!ed +y 2enet!ating the t!i+al a!eas in no!thHwest "ashonaland, th!eatening Salis+$!y f!om the no!th. R1P)0 was confident that it co$ld !eco3e! any g!o$nd lost in "ata+eleland when the time was !i2e. (komo ho2ed, in addition, to dominate the 2a!tne!shi2 with "$ga+e.

#owe3e!, the )hodesian sec$!ity fo!ces, $sing thei! ai! 2owe! and 2a!at!oo2e! assets in 4><>, dest!oyed R1P)0.s m$nitions and sto!es in Ram+ia, and, +y +lowing +!idges, limited its a+ility to mo3e and de2loy. R0(L0, with some 45 555 t!ained men within )hodesia, 2e!sisted in its effo!t to sec$!e 2olitical cont!ol of the Shona t!i+es. 9es2ite those n$m+e!s, +y Se2tem+e! 4><> R0(L0 was in di!e st!aits in the o2inion of its commande!, )e (hongo, +eca$se of &i!e &o!ce, the e te!nal !aids, the $nease of the host co$nt!y, and the effect of the de2loyment of the a$ ilia!ies. (hongo +elie3ed that R0(L0 wo$ld ha3e fo$nd it diffic$lt to get th!o$gh the ne t d!y seasons of midH4>75. Peace came none too soon fo! R0(L0. To com2lement the wa! effo!t afte! the inte!nal settlement of 4><7, the )hodesian 2oliticians had to 2!esent a $nited f!ont to the wo!ld and attain inte!national !ecognition and the !aising of sanctions. They failed. The )hodesian a22!oach to st!ategy lacked essential fle i+ility. While the sec$!ity fo!ces st!o3e to contain the sit$ation in e 2ectation of a 2olitical sol$tion, thei! milita!y st!ategy was not tied in closely eno$gh with the 2olitical effo!t. The )hodesian 2oliticians +y 4><> had di3ided o2enly, while the Pat!iotic &!ont a22ea!ed $nited. E3e!ything on Thatche!.s 2!omise of !ecognition. Once she chose the Lancaste! #o$se sol$tion, "$;o!ewa.s *o3e!nment had few 2olitical o2tions left and it was essential fo! it to im2!o3e its 2osition +y milita!y means, $sing the st!ategic mo+ility of the sec$!ity fo!ces to e 2loit the sit$ation in the neigh+o$!ing co$nt!ies. Pe!ha2s +eca$se of B!itish 2e!s$asion, this did not ha22en. 1n Ram+ia, P!esident Da$nda was host to some 6A 555 fighting men f!om R1P)0, SW0PO and the So$th 0f!ican 0(C. #is a!my was o$tn$m+e!ed and these fo!eign a!mies th!eatened Ram+ia.s 2olitical sta+ility. R1P)0.s con3entionallyHt!ained a!my was g!owing in si;e +$t, to s$cceed in an in3asion of )hodesia, R1P)0 had to esta+lish a +!idgehead ac!oss the Ram+e;i. They also needed ai! s$22o!t to allow thei! a!mo$! and infant!y to s$!3i3e and to kee2 thei! s$22ly line o2en. (komo was ha3ing 2ilots t!ained +$t Da$nda knew that thei! a22ea!ance wo$ld lead to the dest!$ction of his ai!fields. The )hodesians fo!estalled R1P)0. They sank the fe!!y ac!oss the Ram+e;i at Da;ang$la and dest!oyed +oats along the !i3e! and in Lake Da!i+a. Late! in 4><> they mo$nted a coHo!dinated attack on the seconda!y +!idges in so$the!n Ram+ia and c$t Da$nda.s !ailway line to Tanganyika +y +lowing the Cham+eshi )i3e! +!idge. They left the two +!idges o3e! the Ram+e;iat Jicto!ia &alls and Chi!$nd$. Left with only lines of comm$nication !$nning th!o$gh )hodesia, Da$nda was at "$;o!ewa.s me!cy. Ram+ia was t!$ly a f!ontHline state, !ight in the fi!ing line. By midH4><>, &)EL1"O in "o;am+i,$e was totally committed to s$22o!ting R0(L0. R0(L0 $sed &PL" s$22lies while &PL" !otated E55 men into )hodesia to +olste! R0(L0. The sto!ing of R0(L0 a!ms +!o$ght a switch +y the )hodesians f!om attacking the t!ansit cam2s, as they had done since in 4><I with deadly effect, to thei! 0i! &o!ce dest!oying &)EL1"O a!mo$!ies. The s$ccess of this effo!t fo!ced &)EL1"O to mo3e thei! +$lk stocks +ack o$t of !each to the coast, knowing that e3en the )hodesians wo$ld hesitate to +om+ "a2$to. "o;am+i,$e, fea!f$l of So$th 0f!ican inte!3ention, had to 2$t $2 with a contin$o$s )hodesian 2!esence in he! 2!o3inces. The )hodesians mined the !oads to slow $2 the !es$22ly of the R0(L0 fo!ces within )hodesia and the!e+y ca$sed n$me!o$s ci3ilians cas$alties. By this means they fo!ced R0(L0 to c$!tail thei! o2e!ations +eca$se of diffic$lties of +!inging in !einfo!cements, amm$nition, wea2ons and s$22lies. The )hodesian effo!t, howe3e!, failed to dete! &PL" f!om s$22o!ting and !einfo!cing R0(L0. 1n Se2tem+e! 4><>, when the confe!ence at Lancaste! #o$se was $nde!way, the )hodesian fo!ces enKoyed a change of fo!t$ne which allowed them to add to the 2!ess$!e on "o;am+i,$e +eing a22lied +y )E(0"O which was o2e!ating effecti3ely in the "anica, Sofala and Tete P!o3inces, att!acting many !ec!$its f!om within &)EL1"O. )E(0"O, g!eatly assisted +y the )hodesians, sco!ed a n$m+e! of s$ccesses, attacking the )e3$e 9am, the Bei!a f$el fa!m and c$tting !oad and !ail links. The new 2!ess$!e came o$t of !eaction to a th!eat to )hodesia.s lifeline to So$th 0f!ica H the )$ttengaHtoHBeit B!idge !ailway line. &ea!ing that &PL"8R0(L0 fo!ces massing at "a2ai K$st so$th of )hodesia.s so$the!n +o!de! wo$ld +e $sed to assist R0(L0 in esta+lishing a .li+e!ated ;one., the )hodesian and So$th 0f!ican !aide!s on .O2e!ation F!ic. c$t fi3e maKo! +!idges dee2 in "o;am+i,$e, incl$ding the !ail +!idge ac!oss the Lim2o2o )i3e! at Ba!!agem. The main &PL" +ases in the a!ea we!e s$+Kected to ai!st!ikes. 0t the cost of some cas$alties, O2e!ation F!ic d!o3e &PL" f$!the! onto the defensi3e, se3e!ely damaged thei! comm$nications and s$22lies, and 2!e3ented R0(L0 f!om consolidating thei! hold on the t!i+al a!eas on the +o!de!. The aim was not to damage the "oam+ican economy +$t the !aid, as well as delaying the mo3ement of wa! mate!ial fo!wa!d, also c$t the main food g!owing a!ea off f!om its ma!kets. The $2shot was that Samo!a "achel was des2e!ately keen to see a settlement in )hodesia and he 2e!s$aded a somewhat !el$ctant "$ga+e to attend the Lancaste! #o$se confe!ence. The com+ination of 2olitical and milita!y 2!ess$!es had wo!ked +$t "$;o!ewa.s *o3e!nment failed to 2$!s$e this st!ategy. 1n (o3em+e!, O2e!ation "anacle was cancelled when the t!oo2s we!e on the sta!t line. "anacle wo$ld ha3e dest!oyed e3e!y maKo! +!idge in the Tete, Sofala, and "anica P!o3inces, c$tting R0(L0.s s$22ly lines. 0s well as f$!the! $2setting "achel, it wo$ld ha3e g!a3ely weakened R0(L0 and the!efo!e "$ga+e. The 2olitical st!ategists, tho$gh, we!e o$t of ste2 with the milita!y and "anacle was a+o!ted on the ad3ice of Den &lowe!, the )hodesian chief of intelligence, lea3ing the milita!y do$+ting the loyalty of &lowe!. The B!itish wo!ked ha!d and skillf$lly at the Lancaste! #o$se Confe!ence to di3ide "$;o!ewa.s delegation and s$cceeded. "$;o!ewa offe!ed concessions to a22ea! !easona+le and to get the confe!ence o3e! fast in o!de! to ha3e an ea!ly election +efo!e R0(F and R0PF co$ld esta+lish thei! s$22o!t amongst the electo!ate. 1nstead, he sho$ld ha3e co2ied the Pat!iotic &!ont and delayed to allow his fo!ces to st!engthen his hand. The Pat!iotic &!ont 2!olonged the confe!ence to ena+le thei! inte!nal 2a!ties to eme!ge legitimately and to +$ild $2 thei! s$22o!t. 9elay also was $sed to 2!e3ent the )hodesian fo!ces f!om gaining the st!ategic ascendancy. 0s they dallied, 2olitical 2!ess$!e f!om the

B!itish meant that the 2!og!amme of e te!nal !aids was c$!tailed and e3ent$ally cancelled. 9elay also allowed R0(L0 and R1P)0 to !eco$2 thei! losses. )$ssia int!$ded and +egan to s$22ly R1P)0 with wa! s$22lies in +$lk. The st!ategy of delay 2e!fectly s$ited the conditions and fatally weakened "$;o!ewa.s 2osition. The Pat!iotic &!ont $sed the th!eat of withd!awal to gain concessions +$t, with Ram+ia and "o;am+i,$e insisting that they settle, these th!eats so$nded hollow. The Pat!iotic &!ont.s gain was that it !etained its f!eedom of action which "$;o!ewa did not. The B!itish d!o3e th!o$gh thei! sol$tion. "ost diffic$lt to a!!ange was a ceaseHfi!e, +$t in the end a 2lan fo! the gathe!ing of the ins$!gents into assem+ly 2oints and the monito!ing of them +y a B!itishHled and dominated Commonwealth fo!ce was acce2ted. Fntil a go3e!nment had +een elected, a go3e!no!, Lo!d Soames, was to e e!cise e ec$ti3e and legislati3e 2owe!. Smith 2!edicted that the o$tcome wo$ld +e a t!ansfe!ence of 2owe! to "$ga+e. The B!itish and e3e!yone else 2inned thei! ho2es on a h$ng election and a coalition which wo$ld feat$!e "$;o!ewa, (komo and Smith. 1t is c$!io$s that the "$;o!ewa *o3e!nment acce2ted the ceaseHfi!e a!!angement witho$t any ade,$ate mechanism to 2!e3ent the ine3ita+le 3iolations. &$!the!mo!e, the assem+ly 2oint a!!angements fa3o$!ed the Pat!iotic &!ont. R1P)0 $sed the ceaseHfi!e to esta+lish a se!ies of hea3ily defended st!ong 2oints to constit$te the +!idgehead fo! the fo!ce with which they ho2ed to !eco3e! the initiati3e f!om "$ga+e. R0(L0 igno!ed the !est!aints im2osed +y the ceaseHfi!e. They ke2t a significantly la!ge 2!o2o!tion of thei! fo!ces o$tside the assem+ly 2oints while sending in m$Ki+as (yo$ng s$22o!te!s) to make $2 the n$m+e!s e 2ected. R0(L0 infilt!ated 7 555 g$e!!illas into the easte!n +o!de! a!ea alone. They +!o$ght in la!ge ,$antities of a!ms and amm$nition and cached them nea! the assem+ly 2oints. 1nside the assem+ly 2oints the m$Ki+as we!e gi3en intensi3e t!aining. Th$s R0(L0 managed to !eHstock with a!ms and amm$nition and to t!e+le the st!ength of its fo!ces inside the co$nt!y. The g$e!!illas o$tside the assem+ly 2oints went to wo!k on the 2o2$lation to ens$!e 3icto!y at the 2olls. The 2lan wo!ked. The Commonwealth fo!ces we!e too weak to inte!3ene and the!e was nothing that "$;o!ewa.s *o3e!nment co$ld do +$t 2!otest to the B!itish *o3e!no!, Lo!d Soames, afte! he a!!i3ed in ea!ly 9ecem+e!. Soames !eKected demands fo! the dis,$alification of "$ga+e.s R0(F(P&) o! the decla!ation of the !es$lt as n$ll and 3oid. *ene!al Walls a22!oached "!s Thatche! +$t was igno!ed. The signs of what was going to ha22en we!e clea! e3en if few of '$ga+e.s o22onents wanted to +elie3e them. (eithe! "o;o!ewa.s F0(C no! Dnomo.s P&(R0PF) co$ld hold meetings in the Jicto!ia P!o3ince o! in "ashonaland East. The B!itish, howe3e!, had come so fa! that they we!e not 2!e2a!ed to t$!n +ack. They wo$ld 2!etend that what had ha22ened was fo! the +est. "$ga+e.s t!$m2 ca!d was to th!eaten to contin$e the wa!. When the election was held "$ga+e, to his e3ident s$!2!ise and the dismay of his o22onents, was the o$t!ight winne! with A< seats. Sec$!ing only th!ee seats, "$;o!ewa was ecli2sed, Sithole was eliminated, gaining none, and (komo only sec$!ed 65 in his t!aditional a!eas of s$22o!t. The whites we!e taken a+ack +eca$se they had tho$ght that "$;o!ewa stood as good a chance as any. &$!the!mo!e, the white males, called $2 to 2!otect the election, had +een ass$!ed +y *ene!al Walls and his senio! office!s that "$ga+e wo$ld not +e allowed to take 2owe! e3en if he won the election. #e wo$ld +e eliminated, it was hinted, in a co$2. 0s has since +een !e3ealed the demise of the R0(L08R1P)0 command was 2lotted with 2!ecision and assa$lts on the assem+ly 2oints 2lanned and, in one case, !ehea!sed. On the day the election !es$lt was anno$nced, = "a!ch 4>75, key 2oints we!e sei;ed +y )hodesian fo!ces +$t the o!de! to act ne3e! came. Whethe! .good sense. 2!e3ailed o! do$+te!s hesitated, is not known. Office!s t!ained in the B!itish t!adition, and f!om B!itish stock, a!e 3i!t$ally 2!og!ammed against illegal action. 1t is something that they ne3e! contem2late. The conse,$ences of a co$2, of co$!se, a!e incalc$la+le. E3en with the elimination of the leade!shi2 wo$ld a !e2lacement 0f!ican leade! ha3e +een fo$ndX 0nd the wo!ld was ha!dly likely to acce2t him. 1nstead, Soames em+!aced "$ga+e as the winne! and the Commonwealth "onito!ing &o!ce e t!icated itself !a2idly f!om its e 2osed and dange!o$s 2osition in the middle. The whites we!e left to 3ote with thei! feet, lea3ing the 0f!icans to end$!e "$ga+e.s +$ngling .scientific socialism. and all that it entails. $essons $earned 7ommand and 7ontrol5 The!e was a 2olitical fail$!e to 2!o3ide the se!3ices with a 2!o2e!ly $nified and integ!ated command of all the nation.s !eso$!ces. The highe! le3els of Koint command we!e ne3e! 2!o2e!ly !eHo!ganised +$t on the g!o$nd the 'OC system ens$!ed tight coHo!dination of effo!t +etween the 3a!iety of fo!ces and agencies. *ntelligence5 Time and !eso$!ces a!e ne3e! wasted on the gathe!ing and e 2loitation of intelligence. The!e was not eno$gh e 2loitation of intelligence gained o! eno$gh effo!t 2$t into the gathe!ing of intelligence. The gathe!ing of intelligence was handled +y too many agencies and its analysis was not cent!ed in Como2s.s hands +$t in those of the C1O who we!e essentially 2olicemen. C!$cial intelligence often did to !each the !ight 2eo2le. On the othe! hand, intelligence o2e!ato!s we!e in the field and wo$ld e amine a field of action immediately. $eadership5 The !eg$la! a!my had +eg$n as a staff co!2s esta+lished +y the 2olice fo!ce and had !etained, $ntil &ede!al days, one $nfo!t$nate cha!acte!istic H anyone Koining it, Koined as a co!2o!al and then !ose th!o$gh the !anks. This st$ltified the intellect$al de3elo2ment of the a!my. Only in 4>AA did the &ede!al 0!my sent 4>Hyea!Holds to Sandh$!st. Th$s the highe! echelons of the a!my in the si ties com2!ised fo!me! co!2o!als, incl$ding *ene!al Walls. The !es$lt was that the leade!shi2 was $ndisting$ished and

$nimaginati3e in cont!ast with the K$nio! leade!s f!om the !ank of maKo! down. 1an Smith made the mistake of not $nde!standing this and int!$ding to 2!omote on me!it !athe! than on time se!3ed. The decent!alisation of command, e3en to the co!2o!als, howe3e!, was commenda+le +eca$se it sa3ed $nnecessa!y delays. The local commande! co$ld act and then !e2o!t. The!e is the o+3io$s fail$!e to 2!o3ide ea!ly a 2olitical system which co$ld $nite the 2eo2le of the land and this inhi+ited 2sychological o2e!ations. 0 c!$cial fail$!e was not to take into acco$nt the needs and feelings of the 0f!ican 2o2$lation in the 2!osec$tion of the wa!, 2a!tic$la!ly when im2lementing ci3ic action 2!og!ammes s$ch as the 2!otected 3illages and food cont!ol. Too often milita!y action not only alienated the !$!al 2eo2le f!om the *o3e!nment +$t also 2$t them in Keo2a!dy, facing !e2!isals f!om the ins$!gents. This made it diffic$lt to win o3e! the 2eo2le when the !ight to 3ote was finally gi3en to them. 1n attem2ting to ado2t the .FS 2!efe!!ed model., the )hodesians demonst!ated that, in the end, a system of go3e!nment will only s$!3i3e if it has the s$22o!t of the go3e!ned. They showed also that a s$ccessf$l CO1( cam2aign e,$ally has to ha3e that s$22o!t. What is needed is cla!ity in the 2olitical aim, incl$ding the a+ility to win the s$22o!t of the 2eo2le. 0 national aim is needed and a clea! st!ategy to o+tain it. S$ccess in CO1( does not de2end on $nlimited finances. The )hodesians ma imised the !eso$!ces they had. 1t was !a!e that an asset was wasted. *!o$nd gained, +y &i!e &o!ce action, fo! e am2le, needs the!eafte! a sec$!ity fo!ce 2!esence which the a$ ilia!ies s$22lied towa!ds the end to a limited e tent. The a$ ilia!ies we!e an initial s$ccess and maintained a s$fficient le3el of th!eat to wo!!y se!io$sly the R0(L0 hie!a!chy. The mistake made was not to contin$e to !ec!$it in the t!i+al a!eas, t!ain the !ec!$its and send them +ack to thei! a!eas to 2!o3ide 2!otection. 1nstead, the $nem2loyed f!om the towns we!e inc!easingly !ec!$ited and then de2loyed whe!e they had no local affinities. When wea2ons a!e $sed, they ha3e to ma imise the enemy.s cas$alties and minimise those of ci3ilians so that the 2o2$lation is not alienated. Th$s t!aining sho$ld em2hasise ma!ksmanshi2 with all wea2ons H incl$ding the deli3e!y of wea2ons like na2alm. The )hodesian &!antan co$ld +e deli3e!ed 2!ecisely, fo! e am2le. The Pookie, the 2se$do g!o$2s, the *!ey Sco$ts 2!o3e that lessons f!om othe! e!as can +e 3al$a+le. 1n the a!ea of s2ecial o2e!ations, the )hodesians 2!o3ed themsel3es mo!e than e,$al to the task with com+ined ai! and g!o$nd fo!ces wo!king $2 a close !a22o!t. ?et the s2ecial fo!ces we!e too often di3e!ted f!om the tasks which a!e 2!o2e!ly thei!s to s$22lying st!ike fo!ces fo! cam2 attacks, fo! e am2le, and the like. By concent!ating on tactics and s$!2!ise H at which they showed +!illiance H the )hodesians fo!got st!ategy. ?et they still came close to winning. '.).T. Wood 9$!+an So$th 0f!ica 6= "ay 4>>A So$!ce% htt2%88www.!hodesia.nl8wood4.htm

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