The Origins of the Bank Charter Act, 1844

Horsefield, J. K.

doi:10.2307/2549352

Cited by 17 publications

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“…33 The Bank Charter Act of 1844 (sometimes called Peel's Banking Act because it was passed under the government of Robert Peel) restricted the powers of English banks and gave the Bank of England exclusive note-issuing privileges. See Horsefield (1944). 34 ₤100 in 1825 would correspond to at least ₤8,000 in today's pounds or about $10,000 The median numbers of signatures seems low compared to the descriptions cited above.…”

Section: A Description and Summary Of The Sample Of Billsmentioning

confidence: 88%

Private Money Production without Banks

Gorton¹

2020

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I test the Dang, Gorton, and Holmström (2018) (DGH) theory that the optimal design of private money is debt backed by debt. I do this in the context of English inland bills of exchange (where all parties to the bill were in England), which were used as a medium of exchange during the Industrial Revolution in the north of England in the eighteenth and first half of the nineteenth centuries. These bills circulated via indorsements, committing each indorser's personal wealth to back the bill. A sample of bills from the period 1762-1850 is studied to determine how frequently they changed hands (liquidity/velocity) and to determine how their credibility was established. Some bills were backed by banks and others by the joint liability of indorsers only. I test the DGH theory by asking: Were bank-backed bills more liquid than the joint liability-backed bills?

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Section: A Description and Summary Of The Sample Of Billsmentioning

confidence: 88%

Private Money Production without Banks

Gorton¹

2020

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“…This included mandating measures of financial accountability, commencing in 1826 with the full disclosure of note issues by the Bank of England. The extant literature guided the selection of banking enactments for this study and included those identified as important to the development of early nineteenth-century banking systems in Britain (Horsefield 1944; Collins 1984, 1988; Jones and Aiken 1994; Neal 1998; Barnes and Newton 2018). Table 1 provides a summary of the banking enactments featured within this study.…”

Section: IIImentioning

confidence: 99%

“…We have now had some experience on that point, and may proceed to consider whether the expected advantage has been derived from it; and if anything turns out to show that the alarm was unfounded, whether the Returns, as they are made at present, afford to the public that information which it is intended should be given to them ( Mirror of Parliament , 10 March 1840; see Barrow 1840, p. 1678)The committee declined offering an opinion to the House on the main subject at hand, instead providing access to the evidence collected. However, on the topic of financial accountability witness testimony highlighted an expectation of increased publicity (Horsefield 1944, p. 188). The anticipation was secured by An Act to Make Further Provision Relative to the Returns to be Made by Banks of the Amount of Their Notes in Circulation 1841 with application throughout the United Kingdom.…”

Section: IVmentioning

confidence: 99%

“…The disclosure of capital was an important addition in the development of the financial accountability of banks. With the exception of capital, the financial accountability provisions introduced in the Bank Charter Act 1844 were similar to those already mandated in 1833, but modified to suit a separation of departments (Horsefield 1944, pp. 188–9).…”

Section: IVmentioning

confidence: 99%

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The rise of financial accountability in British joint stock banks: 1825 to 1845

Game

Cullen

Brown

2020

Financial History Review

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This study explores parliamentary reforms related to the financial accountability of banks following the 1825–6 and 1836–7 financial crises in England. An appraisal of nineteenth-century parliamentary Hansard transcripts reveals early banking legislative pursuits. The study observes the laissez-faire and interventionist approaches towards the banking enactments of 1826, 1833 and 1844 that underpin the transformation of financial accountability during this era. The Bank Notes Act 1826 imposed financial accountability on the Bank of England by requiring the mandatory disclosure of notes issued. The Bank Notes Act 1833 extended this requirement to all other banks. The Bank Charter Act 1833 increased the financial accountability of the Bank of England by requiring it to provide an account of bullion and securities belonging to the governor and company, as well as deposits held by the bank. Thereafter, the Joint Stock Banks Act 1844 pioneered the regular publication of assets and liabilities and communication of the balance sheet and profit and loss account to shareholders. State intervention in the financial accountability of banks during the period from 1825 to 1845 appears to have been cumulative.

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“…As emphasized by Bordo and Kydland (1995). Horsefield (1953) notes that the Bank itself had suggested that an explicit escape clause be built into the 1844 Bank Act, but Peel omitted it from the final legislation. The first occasion on which this was done, the financial crisis of October 1847, is studied in depth by Dornbusch and Frenkel (1984).…”

Section: Great Britainmentioning

confidence: 99%

Exchange Rate Stability and Financial Stability

Eichengreen

1998

Ideas for the Future of the International Monetary System

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by the Ford Foundation. It is a research unit of the Institute of International Studies which works closely with the Department of Economics and the Institute of Business and Economic Research. CIDER is devoted to promoting research on international economic and development issues among Berkeley faculty and students, and to stimulating collaborative interactions between them and scholars from other developed and developing countries. INSTITUTE OF BUSINESS AND ECONOMIC RESEARCH Richard Sutch, Director The Institute of Business and Economic Research is an organized research unit of the University of California at Berkeley. It exists to promote research in business and economics by University faculty. These working papers are issued to disseminate research results to other scholars. Individual copies of this paper are available through IBER, 156 Barrows Hall,

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The Origins of the Bank Charter Act, 1844

Cited by 17 publications

References 0 publications

Private Money Production without Banks

Private Money Production without Banks

The rise of financial accountability in British joint stock banks: 1825 to 1845

Exchange Rate Stability and Financial Stability

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