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British Banking School
The British Banking School was a group of 19th century economists from the United Kingdom who wrote on monetary and banking issues. The school arose in opposition to the British Currency School; they argued that currency issue could be naturally restricted by the desire of bank depositors to redeem their notes for gold. According to Jacob Viner the main members of the Banking School were Thomas Tooke, John Fullarton, James Wilson, and J. W. Gilbart. They believed "The amount of paper notes in circulation was adequately controlled by the ordinary processes of competitive banking, and if the requirement of convertibility was maintained, could not exceed the needs of business for any appreciable length of time". Thus they opposed the requirement in the Bank Act of 1844 for a reserve requirement on banknotes. Creation of Banking School versus Currency School During the early and mid 19th century Britain had been plagued economically due to the conversion of currency from gold to a p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Policy
Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency. Monetary policy is a modification of the supply of money, i.e. "printing" more money, or decreasing the money supply by changing interest rates or removing excess reserves. This is in contrast to fiscal policy, which relies on taxation, government spending, and government borrowing as methods for a government to manage business cycle phenomena such as recessions. Further purposes of a monetary policy are usually to contribute to the stability of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies. Monetary ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Banking In The United Kingdom
Banking in the United Kingdom can be considered to have started in the Kingdom of England in the 17th century. The first activity in what later came to be known as banking was by goldsmiths who, after the dissolution of English monasteries by Henry VIII, began to accumulate significant stocks of gold. 17th century Many goldsmiths were associated with The Crown but, following seizure of gold held at the Royal Mint in the Tower of London by Charles I, they extended their services to gentry and aristocracy as the Royal Mint was no longer considered a safe place to keep gold. Goldsmiths came to be known as ‘keepers of running cash’ and they accepted gold in exchange for a receipt as well as accepting written instructions to pay back, even to third parties. This instruction was the forerunner to the modern banknote or cheque. Around 1650, a cloth merchant, Thomas Smith opened the first provincial bank in Nottingham. During 1694 the Bank of England was founded. The Governor and C ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
British Currency School
The British Currency School was a group of British economists, active in the 1840s and 1850s, who argued that the excessive issuing of banknotes was a major cause of price inflation. They believed that, in order to restrict circulation, issuers of new banknotes should be required to hold an equivalent value of gold as a reserve. This concept was also known as convertibility and the currency principle. They argued that prices were mostly based on quantity of currency in circulation, but did acknowledge that prices were also affected by deposits. Therefore, by controlling prices banks could limit outflow of gold. Bullionism controversy The Currency School emerged from the beliefs of the Bullionist group, which was prevalent in the early 1800s. When the French landed on English soil in 1797, financial panic arose in Britain. Due to the 18th century banking system, there was high concern of banking panic, a financial crisis that occurs when many bank runs occur at the same time and pe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Thomas Tooke
Thomas Tooke (; 28 February 177426 February 1858) was an English economist known for writing on money and economic statistics. After Tooke's death the Statistical Society endowed the Tooke Chair of economics at King's College London, and a Tooke Prize. In business, he served several terms between 1840 and 1852 as governor of the Royal Exchange Corporation. Likewise, he served for several terms as chairman of the St Katharine's Docks company. He was also an early director of the London and Birmingham Railway. Life Born at Kronstadt on 29 February 1774, he was the eldest son of William Tooke, at that time chaplain to the British factory there. Thomas began his professional life at the age of fifteen in a house of business at St Petersburg, and subsequently became a partner in the London firms of Stephen Thornton & Co., and Astell, Tooke, & Thornton. He took no serious part in discussion of economic questions until 1819, when he gave evidence before committees of both Houses ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Fullarton (writer)
John Fullarton (c. 1780 – 1849) was a Scottish traveller and writer on the currency. Life Fullarton was the only child of Dr. Gavin Fullarton, who died in 1795, by his wife, the daughter of Alexander Dunlop, professor of Greek in the university of Glasgow. He went to India as a medical officer in the service of the East India Company, became an assistant surgeon in the Bengal Presidency in 1802, but resigned his appointment in 1813. During this period he became the part owner and editor of a newspaper at Calcutta. On leaving the service Fullarton entered the house of Alexander & Co., bankers of Calcutta, as a partner, acquired a fortune in a few years, and returned to England to live. Meantime he had travelled widely over India, and about 1820 made a pioneering tour through the British Empire in the east. In 1823 he purchased Lord Essex's house, 1 Great Stanhope Street, Mayfair. The reform crisis led him to contribute articles to the ''Quarterly Review'' in defence of the Tory ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
James Wilson (businessman)
James Wilson (3 June 1805 – 11 August 1860) was a Scottish businessman, economist, and Liberal politician who founded ''The Economist'' weekly and the Chartered Bank of India, Australia and China, which merged with Standard Bank in 1969 to form Standard Chartered.''James Wilson'' by Ruth Dudley Edwards in Oxford DNB He was the first Finance Member of the Viceroy's Executive Council from December 1859 until his death in August 1860. Sent there to put order into the chaos that followed the "Sepoy Mutiny" of 1857, he presented India's first budget, and was responsible for the government accounting system, Pay Office, and audit, apart from government paper currency, Indian Police, a Military Finance Commission, and a Civil Finance Commission. Early life Wilson was born in Hawick in the Scottish Borders. His Quaker father William Wilson owned a hat manufactury, and his ancestors were local sheep farmers. He was the fourth of fifteen children, of whom ten reached adulthood. His mo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
James William Gilbart
James William Gilbart (1794–1863) was an English banker and author. Life He was the General Manager of the London and Westminster Bank 1833–1859, one of the first joint-stock banks in England. His work and frequently updated books such as his ''Practical Treatise on Banking'' (1827) were eventually widely adopted to improve the British banking systems and laid the foundations of the modern publicly owned retail bank and Building Society movement. It was Gilbart who standardised the modern spelling of the word ''cheque'' in his book ''Practical Treatise on Banking'', and formalised this in subsequent legislation. Some claim that the spelling was derived from early notes issued by Goldsmiths of London. Gilbart was made a Fellow of the Royal Society in 1846. He never married, and devoted much of his life to banking, writing, and his societies. He died at his home at Brompton Crescent, London and is buried in a Gothic Revival Grade II-listed mausoleum at West Norwood Cemete ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank Charter Act 1844
The Bank Charter Act 1844 (7 & 8 Vict. c. 32), sometimes referred to as the Peel Banking Act of 1844, was an Act of Parliament, Act of the Parliament of the United Kingdom, passed under the government of Robert Peel, which restricted the powers of British banks and gave exclusive note-issuing powers to the central Bank of England. It is one of the Bank of England Acts 1694 to 1892. Purpose Until the mid-nineteenth century, commercial banks in Britain and Ireland were able to issue their own banknotes, and notes issued by provincial banking companies were commonly in circulation. Under the 1844 Act, bullionism was institutionalized in Britain, creating a ratio between the gold reserves held by the Bank of England and the notes that the Bank could issue, and limited the issuance by English and Welsh banks of non-gold-backed Bank of England notes to up to £14 million. The Act also placed strict curbs on the issuance of notes by the country banks, barring any new "banks of issue" ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Schools Of Economic Thought
In the history of economic thought, a school of economic thought is a group of economics, economic thinkers who share or shared a common perspective on the way economy, economies work. While economists do not always fit into particular schools, particularly in modern times, classifying economists into schools of thought is common. Economic thought may be roughly divided into three phases: premodern (Greco-Roman, History of India, Indian, Persian Empire, Persian, Caliphate, Islamic, and Imperial era of Chinese history, Imperial Chinese), early modern (mercantilist, physiocrats) and modern (beginning with Adam Smith and classical economics in the late 18th century, and Karl Marx and Friedrich Engels, Friedrich Engels' Marxian economics in the mid 19th century). Systematic economic theory has been developed mainly since the beginning of what is termed the modern era. Currently, the great majority of economists follow an approach referred to as mainstream economics (sometimes called 'o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic History Of The United Kingdom
The economic history of the United Kingdom relates the economic development in the British state from the absorption of Wales into the Kingdom of England after 1535 to the modern United Kingdom of Great Britain and Northern Ireland of the early 21st century. Scotland, England, and Wales shared a monarch from 1601 but their economies were run separately until they were unified in the 1707 Act of Union. Ireland was incorporated in the United Kingdom economy between 1800 and 1922; from 1922 the Irish Free State (the modern Republic of Ireland) became independent and set its own economic policy. Great Britain, and England in particular, became one of the most prosperous economic regions in the world between the late 1600s and early 1800s as a result of being the birthplace of the industrial revolution that began in the mid-eighteenth century. The developments brought by industrialization resulted in Britain becoming the premier European and global economic, political, and military ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
