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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Banks would appear are inevitably superseded from the market.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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