The Industrial Revolution

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Monograph

Identifikator:: 1027928145

URN:: urn:nbn:de:zbw-retromon-159926

Document type:: Monograph

Author:: Cunningham, William http://d-nb.info/gnd/128907487

Title:: The Industrial Revolution

Place of publication:: Cambridge

Publisher:: The University Press

Year of publication:: 1922

Scope:: xxii S., S. 404-886

Digitisation:: 2021

Collection:: Economics Books

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592 LAISSEZ FAIRE To some extent the difficulties of private traders were due, not to the conditions of commerce, but to the state of public credit, and the extraordinary demands of the Government apon the resources of the Bank of England. This comes out very clearly in the financial history of the four years which followed 1793. At that time Pitt succeeded in carrying a measure, which had been intended to protect the Directors in meeting the convenience of the Government, but which really gave the ministers of the day irresponsible control over the management of the Bank. In the original Act which created the Bank, the legislature had been careful to provide against the lending of money to Government without the permission of Parliament; but a practice had grown up of advancing sums to the ministry, which might amount to £20,000 or £30,000 at a time, in payment of bills of exchange. The Directors how- ever had some doubts as to the legality of the practice; and endeavoured to procure an Act of Indemnity for these trans- actions in the past, as well as powers to continue them to a ohile Pitt limited amount such as £50,000. Pitt succeeded in passing sower of the Bill without any specified limitation, and he was therefore porrowing le to draw on the Bank as freely as he chose, trusting to the unwillingness of the Directors to dishonour his bills. In December 1794, the Directors began to find themselves in a position of great difficulty, as their reserve was very low? A.D. 1776 —1850. 1 This was partly due to the war expenses abroad which were estimated at £32,810,977 for the years 1793-7, and partly to the advancing of loans to the Emperor and the King of Prussia. Third Report from Committee of Secrecy, in Reports, x1. 122. There was also an internal drain. “In addition to these causes of actual expence, your Committee think proper to advert to various circum- stances, which may contribute either to the delay of the due return of commercial dealings, or require enlarged means of circulation in the country. Of this nature are, the habit of the British merchant to give longer credit to the Foreign merchant than he receives in return; the change of the course of trade since the Var, and the opening of new accounts with mew customers; the circuitous remittance of money from various parts, in consequence of interruptions in the means of direct communication, and the state of some of the countries from which sonsiderable remittances are due: To these are to be added the increase of domestic commerce, the increase of manufactures for home consumption, the general spirit of internal improvement in agriculture, and in the formation of sanals and other public works: To these may also be added, as producing a further aecessity for a greater quantity of circulating medium, other causes of a different nature, and in other respects of an opposite tendency, and particularly the increased price of freight, shipping, insurance, demurrage, and a variety of other articles, generally affecting the trade of the country, both in its former and in its

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