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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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