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1) He would grant Patterson and his associates a charter which would name them "The Bank of England," and
2) This bank shall have the "sole and exclusive right" to issue notes to the fullest extent of its capital. The people were having a problem with their gold and silver coins of which the bankers quickly came to the rescue. The solution is aptly described by Professor Carroll Quigley in his book, Tragedy and Hope: • ...for generations men had sought to avoid the one drawback of gold, its heaviness, by using pieces of paper to represent specific pieces of gold. Today we call such pieces of paper "gold certificates." Such a certificate entitled its bearer to exchange it for pieces of gold on demand, but in view of convenience of paper, only a small fraction of certificate holders ever did make such demands. It early became clear that gold need be held on hand only to the amount needed to cover the fraction of certificates likely to be presented for payment; accordingly the rest of the gold could be used for business purposes, or, what amounts to the same thing. A volume of certificates could be issued greater than the volume of gold reserved for payment....Such an excess volume of paper claims against reserves we now call bank notes. In effect, this creation of paper claims greater than the reserves available means that bankers were creating money out of nothing...