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Function of gold coins in shortage of cash. During crisis 1825
The Bank first did not dare at the help to ordinary banks, however after approximately
Week has changed the position on opposite, widely having opened
The doors for crediting of banks. It helped not only gold, but also,
As banknotes with face value in 5 pounds were inconvenient in the small
Time going in circulation only during especially stipulated periods.
The fault for crisis of 1825 has been assigned to ordinary banks with their issue of the small
Bills. From seven or, let us assume, eight hundreds banks existing at that time
Approximately 150 have gone bankrupt during the period between 1810 and 1825 Then in England
There was a movement in support of the permission of creation of other joint-stock banks,
Except Bank of England. At the heart of this opinion the belief that lay
Consisting of a maximum of six partners private enterprises were too small
For steady functioning also that the joint-stock companies would appear much
More strongly and more reliably. That circumstance that to the financial was especially underlined
Activity small groups not skilled have not been simply freely admitted
Businessmen: in the conditions of existing laws these groups in general were
Unique it was authorised to whom to be engaged in bank business, and, receive
The same permission concerns with more solid financial maintenance, weak
Banks would appear are inevitably superseded from the market. The leader of movement for
Joint-stock banks Thomas Dzhoplin (Thomas Joplin), whose lampoon has acted,
Left in 1822 Scotland ", "The General Principles and Present Practice of Banking in
England, urged to pay attention on exclusively successful
Functioning of the Scottish system and which later has headed activity
On creation of Neshnl Provinshial Benk (National Provincial Bank). Bank of England
Fiercely objected to such offers, declaring in quality
Counterargument about the readiness to open in a province own branches.
The lord Liverpool (Lord Liverpool) and its colleagues minded that the offer
Bank open branches cannot to satisfy need of the country. By the way,
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