Page:A colonial autocracy, New South Wales under Governor Macquarie, 1810-1821.djvu/190

which had long been advocated by Macquarie but opposed by the Colonial Office.^[1] Now, however, without further consultation with Downing Street, Macquarie went straight ahead. The project was mooted in November, and the foundation of the Bank of New South Wales was decided upon at a meeting held on 22nd of that month, 1816. Macquarie granted a Charter of Incorporation, and in 1817 the bank opened for ordinary business and for the issue of notes.^[2] In 1820 it had a capital of £20,000 in shares of £100 each, of which 120 were paid up and the shares stood at par. The expectations of the founders had been fulfilled and the circulating medium of the Colony for the first time placed on a satisfactory basis.

Macquarie granted the charter for seven years with "the usual rights and privileges of a corporation … provided the same shall meet … the approbation of His Royal Highness the Prince Regent".^[3] This was the only support lent by the Government, except that after 1819 the colonial revenues were deposited with it.

The Governor considered that his Commission empowered him to grant the charter and Wylde agreed with him. The latter based his opinion on the fact that the Commission "allowed the Governor to raise boroughs, create turn-pikes and tolls, impose port duties and imposts, and determine from time to time the legal tender, regulate the value of the sterling medium and of the public money and interest thereon, establish and direct public markets, and to dispose at discretion of the Crown lands of the territory".^[4] But Wylde would gladly have made a reference home upon the question before taking any steps had he not thought the delay likely to hasten the "almost inevitable final consequences of such a fictitious capital and circulating medium". Only by the establishment of a bank could the colonial currency be checked. An attempt had indeed been made to check it, but had met with signal

1. D. 2, 29th March, 1817. R.O., MS. See also Ds. of 1810 and 1811. H.R., VII., especially 30th April, 1810.
2. The notes were of value of 2s. 6d., 5s., 10s., £1 and £5. See D. above. In 1821 notes in circulation amounted to £5,902. See Bigge's Report, III.
3. D. 2, 29th March, 1817. R.O., MS.
4. Wylde to Goulburn. Enclosure to D. 26, 1st September, 1820. R.O., MS. Macquarie had done these things, but many of them were not justified by his Commission.