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The Bank relation, eventually, there was a further strengthening of a position
The last in bank sphere of the country.
Soon after the beginning of the French war of Pitg has been compelled to address in Bank for
Loans. However the Law on Bank from 1694 forbade it delivery of credits
To the government without the Parliament sanction. During long time the small
Loans nevertheless were made in exchange for the bonds of exchequer which are written out on
Bank; however legality of such practice has been recognised by rather doubtful.
In this connection in 1793 the Bank has submitted the application on acceptance of the certificate to the government,
Which would provide clearing of Bank of responsibility for loans, already
Given out by then, and, besides, would resolve to it this sort of conducting
Activity in the future, the truth, with a condition of its deduction in the defined
Pitt has immediately spent the certificate through Parliament, however, rather providently
Has lowered in him point with exact instructions of quantitative limits of a loan, that
Most, having compelled, eventually, Bank to be reconciled with any scales
The governmental appetites. By 1795 such crediting has appeared
So superfluous that its consequences began to be shown in exchange rates, and
The status of reserves of Bank began to inspire strong alarm; in this situation council
Directors has directed to the government the application where the request to Pitt contained
To moderate the requirements shown to Bank. Simultaneously the Bank has reduced
Service of private clients. Pitt, however, undertook all efforts, that
To stimulate loans of Bank to the government. About former neglect to the small
To banknotes it has been forgotten less than 5 pounds - in 1777 and issue of bills with face value less than 1 pound was
It is forbidden in 1775: in 1795 were for the first time
Monetary payments under Bank bills, in the reference have been let out one- and
The stop of payments of a cash under bills has been proclaimed by the government
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