The Industrial Revolution

Bibliographic data

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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LAISSEZ FAIRE 40) ies but for unlooked-for difficulties which arose during the month of February 1797. and poli In December 1796, the French expedition which had Si of “" been prepared for the invasion of Ireland was dispersed, but threatening the mere attempt created a sense of insecurity which was felt in all parts of the country and especially on the coasts. The excitement among the neighbouring farmers caused a run on the bank at Newcastle, and the Bank of England was quite unable to meet the demands for cash which came upon it from all quarters. The Directors were obliged in self-defence to curtail their issues; and as private bankers found it necessary to take a similar course, the mercantile community were put to the greatest straits in order to meet their engagements. Still, in spite of all efforts at retrench- ment, the reserve at the Bank fell so low, that Pitt con- sented to issue an order suspending the obligation of the Bank to pay its notes in coin. When relieved from this necessity, the Bank was able to lend more freely and thus 694 hat the Bank had to suspend sash payments, 25th day of February last £17,597,280; and that the result is, that there was on the 25th day of February last a surplus of effects belonging to the Bank beyond the Amount of their Debts, amounting to the sam of £3,326,890, exclusive of the above-mentioned permanent Debt of £11,686,800 due from Government. «And Your Committee further represent, that since the 25th of February last considerable Issues have been made by the Bank in Bank Notes, both upon Government Securities and in discounting Bills, the particulars of which could not immediately be made up; but as those Issues appear to Your Committee to have been made upon corresponding securities, taken with the usual care and attention, the actual Balance in favour of the Bank did not appear to Your Committee to have been thereby diminished.” First Report, reprinted in Reports, a. p. 120. \ «Your Committee find, that in consequence of this apprehension, the farmers suddenly brought the produce of their lands to sale, and carried the notes of the Dountry Banks, which they had collected by these and other means, into those banks {or payment; that this unusual and sudden demand for Cash reduced the several Banks at Newcastle to the necessity of suspending their payments in specie, and of availing themselves of all the means in their power of procuring a speedy supply of Cash from the metropolis; that the effects of this demand on the New- castle Banks, and of their suspension of payments in Cash, soon spread over various parts of the country, from whence similar applications were consequently made to the metropolis for Cash; that the alarm thus diffused, not only occasioned an increased demand for Cash in the country, but probably a disposition in many to hoard what was thus obtained; that this call on the metropolis, through what- ever channels, directly affected the Bank of England, as the great repository of Oash, and was in the course of still further operation upon it, when stopped by the Minute of Council of the 26th of February.” Third Eeport, in Reports, XI. pp. 121-2.

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