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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BANKING FACILITIES upon the attention of the country by the recurrence of A-D.1776 commercial crises. There was wide-spread and severe disaster in 1825, The was failure of Spain to retain her hold over her colonies had iar opened up Mexico and Spanish South America as fields for 7 18% the sale of English goods, and the investment of English capital. This gave rise to a sudden development of mining speculation’, and a large exportation of English manufactures; while there was also a considerable response on the part of the English public to the demands of the new republican government for loans for public purposes’. As a conse- quence a rapid drain of gold began, and the Bank failed to check it by contracting its issues; since large quantities of paper were put into circulation by the country banks, and merchants were compelled to realise, there was an inflation of prices. After credit had thus unduly expanded, the Bank decided that a sudden change of policy was necessary, and in May 1825 contracted its issues. Alarm spread, and many of the country banks were unable to meet their engagements, or honour the notes which they had issued; a deficiency of the circulating medium was in consequence brought about. [t became impossible to borrow money on any terms? and numerous important firms failed; but the Bank had been able to hold its own, partly by utilising £1 notes; bullion began to come from France; and the Bank, by issuing freely as soon as the worst was over, replaced the gap in the circu- lating medium that had been caused by the discredit of the ih led aotes of country banks. renewed The disasters of the time were alleged to be due to the oousmer the policy which had been pursued in granting a monopoly to mpsegely the Bank of England, as against other companies. This was Puke, 323 + McLeod, Theory and Practice of Banking, 1. 110. ¢ The conversion of the English debt in 1824 and reduction of interest on 4 per cent. stock to 83 per cent. caused investors to look out for foreign securities that offered higher rates. Ib. m. 108. 8 The usury laws, which rendered interest above 59/, illegal, proved an obstacle to prevent lenders from offering money at the high rates which the state of the market justified. Jb. 112. ¢ This was Lord Liverpool's opinion: “ What was the system in existence at present? Why the most rotten, the most insecure, the very worst in every respect that could possibly be conceived. Any petty tradesman, any grocer or

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