The 1783 proposal for a readymade note at the Bank of England

2021 ◽  
pp. 1-26
Author(s):  
David M. Batt
Keyword(s):  
Paper Money ◽  
Bank Of England ◽  
The Government ◽  
Private Banking ◽  
Unique Relationship

This article analyses the 1783 proposal to issue readymade notes to the Bank of England's private banking customers. Prior to 1783, I argue that there were two broad categories under which the Bank issued its notes into circulation: (1) notes which were issued to government in relation to the Bank's role as facilitator of the fiscal revenues of state, and (2) notes which were issued to its private banking customers. The readymade note was a form of paper money which the Bank had previously been issuing only to government and, unlike the notes which the Bank originally issued to its private banking customers, was made out in advance of its being issued into circulation. I argue that the transformation suggested in the 1783 proposal was made possible by the unique relationship which the Bank had always had with the government, and I will make three observations based on identifying how this transformation took place.

scholarly journals Art. X.—An Account of the Paper Currency and Banking System of Fuhchowfoo

1852 ◽  
Vol 13 ◽  
pp. 179-189 ◽  
Author(s):  
H. Parkes
Keyword(s):  
Ming Dynasty ◽  
Banking System ◽  
Bad Faith ◽  
Regular Paper ◽  
Paper Money ◽  
Paper Currency ◽  
Complete Failure ◽  
The Late Ming Dynasty ◽  
The Government

Among the various wonderful inventions, marking the astonishing advances which the Chinese had so early made towards civilization, is that of Paper-Money, which dates as far back as the year 119 before our era. The cause that led to its introduction was the low state of the finances of the Government, who, after various other experiments, issued at last regular paper assignats, which, from the ponderous nature of the rude coin then in use, and the security that the warranty of government afforded, soon obtained extensive circulation. The government who had thus introduced this new currency, made it an object of much legislation; and various were the schemes that were started and remoulded, in the hope of permanently establishing its use. But the numerous intestine wars, and the repeated subversion of dynasties that followed, tended seriously to detract from the credit of the government; and thus, owing to its bad faith, and the excessive issues, a complete failure of the system was the result, after a lapse of five centuries having been spent in unsuccessful attempts to establish it. Government paper-money seems to have disappeared in the early part of the late Ming dynasty; and the Manchus, on their accession, never attempted to revive its use. To Klaproth we are indebted for very elaborate researches on this interesting and oft-discussed subject.

Part I Financial Markets, 3 UK Central Banking and Financial Stability

2021 ◽  
Author(s):  
Morton Guy ◽  
Marsh Andrew
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Central Banking ◽  
Debt Management ◽  
National Debt ◽  
Legal Tender ◽  
Bank Of England ◽  
The Government ◽  
The Uk ◽  
William Iii

This chapter talks about the Bank of England as the UK's central bank, which was established in 1694 by a Charter granted by King William III and Queen Mary II under the authority of an Act of Parliament. It explains the principal object of the Act in creating the Bank as a vehicle for raising money for the government. It also discusses how the Bank was closely associated with the raising and management of the national debt since its inception, which is a function that the Bank retained until the creation of the UK Debt Management Office (DMO) in 1998. This chapter highlights how the Bank raised money by issuing of banknotes, which became widely used as a convenient means of making large—value payments. It points out that the Bank of England notes were not formally legal tender until 1833.

Quid

Virtual Words ◽  
2010 ◽  
Author(s):  
Jonathon Keats
Keyword(s):  
Space Station ◽  
Publication Date ◽  
Old Irish ◽  
Space Tourism ◽  
Paper Money ◽  
Bank Of England ◽  
The Galaxy ◽  
New Space ◽  
The Many ◽  
Family Vacation

Of the many challenges facing tourism in space, one of the least obvious is the problem of intergalactic monetary exchange. Far more pressing to the nascent industry are issues such as extraterrestrial transportation and gravity-free accommodations. Charles Simonyi’s twelve-day trip to the International Space Station in 2007 cost him $25 million, more than the budget of an average family vacation. Yet years before even the most optimistic technophiles expect space tourism to be more than a fifteen-minute suborbital joyride on Virgin Galactic, a currency has been established, initially trading on Travelex for $12.50. It’s called the quid. Quid is an acronym for “quasi-universal intergalactic denomination.” Of course it’s also an appropriation of British slang for the pound sterling, and it is this association with the common term for a familiar item that gives it resonance, an evocative word for a provocative concept. One might have expected the new space money to repurpose the official name of an existing currency. The British and French have preferred that strategy when they’ve colonized other countries, and even Douglas Adams, for all his creativity, fell upon the formula when he coined the Altairian dollar in The Hitchhiker’s Guide to the Galaxy. But colonization robs a place of its exoticism. And if space tourism has any purpose, it’s escapism in extremis. Unlike the pound or the dollar, the quid has no inherent allegiances. The word has also been used at various stages as slang for the shilling, the sovereign, and the guinea, as well as the euro and the old Irish punt. Even the origin is “obscure,” according to the Oxford English Dictionary, which cites a characteristic early use of the word in Thomas Shadwell’s Squire of Alsatia: “Let me equip thee with a Quid.” The 1688 publication date of Shadwell’s play overrules one popular folk etymology, which claims that quid is short for Quidhampton, location of a mill that produced paper money for the Bank of England. The Bank of England wasn’t established until 1694.

scholarly journals Danger to the Old Lady of Threadneedle Street? The Bank Restriction Act and the regime shift to paper money, 1797–1821

2019 ◽  
Vol 24 (2) ◽  
pp. 390-426 ◽  
Author(s):  
Patrick K O'Brien ◽  
Nuno Palma
Keyword(s):  
Monetary Policy ◽  
Regime Shift ◽  
Unconventional Monetary Policy ◽  
Paper Money ◽  
Bank Of England ◽  
Term Data

Abstract The Bank Restriction Act of 1797 was the unconventional monetary policy of its time. It suspended the convertibility of the Bank of England's notes into gold, a policy that lasted until 1821. The current historical consensus is that it was a result of the state's need to finance the war, France’s remonetization, a loss of confidence in the English country banks, and a run on the Bank of England’s reserves following a landing of French troops in Wales. We argue that while these factors help us understand the timing of the suspension, they cannot explain its success. We deploy new long-term data that leads us to a complementary explanation: the policy succeeded thanks to the reputation of the Bank of England, achieved through a century of prudential collaboration between the Bank and the Treasury.

Section II. Uncertainties in the public sector forecast

2003 ◽  
Vol 183 ◽  
pp. 41-42 ◽  
Keyword(s):  
Public Sector ◽  
Current Account ◽  
Important Variable ◽  
Output Growth ◽  
Forecast Errors ◽  
The Public ◽  
Inflation Forecasts ◽  
Error Range ◽  
Bank Of England ◽  
The Government

All forecasts are hedged around with uncertainties, and for some time we have been publishing error bands on our forecasts. The National Institute was the first mainstream forecaster to provide an indication of the chances that two key forecast variables, output growth and inflation, would be in particular ranges. The error ranges we used were calculated from past forecast errors and on the assumption (consistent with the data) that these errors were normally distributed. Shortly after we began publishing our probability bands, the Bank of England started to provide its own indication of the error range for its inflation forecasts and, some time later, for its projection of output growth. The Treasury, by contrast, provides no indication of the chance that the Government current account will be in any particular range although this is arguably the most important variable discussed in the Pre-budget Report.

scholarly journals RETHINKING OF FINANCE STABILITY :

2019 ◽  
Vol 2 (1) ◽  
pp. 15-22 ◽  
Author(s):  
Suryaning Bawono ◽  
Silvi Asna Prestianawati
Keyword(s):  
Exchange Rates ◽  
Quantitative Method ◽  
Ordinary Least Squares ◽  
Paper Money ◽  
Crude Oil Prices ◽  
The World ◽  
Digital Money ◽  
The Government ◽  
The Stability ◽  
The Impact

We are attempting to review the stability of the internal exchange rates of paper money and gold and to examine the effects of the mysterious anti-crypto money policy. We used the ordinary least squares quantitative method to compare the resilience of the internal values of gold and USD against inflation and the charts to see the impact of anti-crypto money policy along with the resilience of gold and USD against the turbulence of internal exchange rate stability. When viewed from R-squared and Adjusted R-squared inflation can be said no significant effect on world crude oil prices with USD as a means of payment. So the world oil turbulence is influenced by another variable that is more significant than inflation. This paper has contribution to the government in monetary side to derive the digital money regulation in order to secure the digital transaction.

The Massachusetts Paper Money of 1690

2009 ◽  
Vol 69 (4) ◽  
pp. 1092-1106 ◽  
Author(s):  
Dror Goldberg
Keyword(s):  
Systematic Study ◽  
Legal Tender ◽  
Political Constraints ◽  
Probability Of Survival ◽  
Paper Money ◽  
The Government

Modern currency originates in the inconvertible, legal tender paper money that Massachusetts devised in 1690. The circumstances that led to its creation are more complex than the typical story of wartime specie shortage. Due to temporary political constraints of that turbulent period, the currency could be neither backed by land nor imposed on anyone, as was then standard. Instead, it had to be disguised from England as a simple, private-seeming IOU. By pleasing both its pay-demanding troops and England, the government maximized its probability of survival subject to the constraints. “Monetary innovation, the development of new forms of money, has not received much systematic study from economic historians.”1

scholarly journals National Digital Currency as a Factor of the Russia’s Economic Revival

2019 ◽  
Vol 12 (1) ◽  
pp. 30-36 ◽  
Author(s):  
V. V. Grigoriev
Keyword(s):  
Legal Framework ◽  
Domestic Economy ◽  
Goods And Services ◽  
Paper Money ◽  
Advantages And Disadvantages ◽  
Digital Currency ◽  
Blockchain Technology ◽  
Current State ◽  
The Government ◽  
Definition Of

The past decade has highlighted the increasing role of virtual electronic digital currency in the financial sphere. This currency is now performing the functions of investment, storage and accumulation rather than solely the function of measuring the value of goods and services. Thus, the virtual digital currency has come to implement all basic functions of paper money.The purpose of the paperwas to put forward the thesis of the feasibility of introduction in Russia of a new virtual national digital currency operating on the basis of the blockchain technology, which will significantly revitalize the domestic economy. The paper provides the definition of the virtual digital currency and its types, discusses its advantages and disadvantages, gives a brief overview of the experience of using this currency in Russia and abroad, shows the current state of cost capitalization of the virtual digital currency and describes the legal framework for the virtual digital currency application. The paperconcludesthat rather than forbidding the crypto currency, there are all the reasons to arrange the issue and circulation of an officially accepted type of a virtual national digital currency that would give a powerful impetus to the development of all spheres of the country’s economy. Special attention is paid to the mechanism of the national digital currency operation with the government participation. Every citizen will be able to get a salary in a few seconds, buy everything he wants, invest in any project. Records of transactions in the user’s personal digital electronic purse will completely relieve him of paperwork. It is important to note that blockchain protocols do not allow transaction canceling or compulsory change of ledger entries. This means that all transactions will become safe and anonymous, and anonymity cannot be violated if only by illegal operations. This will suit all law-abiding citizens of the country. The advantages of the national digital currency will ensure its wide circulation in the country and lead to significant shrinking of the “gray” and “dark” cryptocurrency markets and revival of the domestic economy.

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