In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys services; the measure of inflation is the inflation rate, the annualized percentage change in a general price index the consumer price index, over time. The opposite of inflation is deflation. Inflation affects economies in various negative ways; the negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing unemployment due to nominal wage rigidity, allowing the central bank more leeway in carrying out monetary policy, encouraging loans and investment instead of money hoarding, avoiding the inefficiencies associated with deflation.
Economists believe that the high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth. Today, most economists favor a steady rate of inflation. Low inflation reduces the severity of economic recessions by enabling the labor market to adjust more in a downturn, reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy; the task of keeping the rate of inflation low and stable is given to monetary authorities. These monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, through the setting of banking reserve requirements.
Rapid increases in the quantity of money or in the overall money supply have occurred in many different societies throughout history, changing with different forms of money used. For instance, when gold was used as currency, the government could collect gold coins, melt them down, mix them with other metals such as silver, copper, or lead, reissue them at the same nominal value. By diluting the gold with other metals, the government could issue more coins without increasing the amount of gold used to make them; when the cost of each coin is lowered in this way, the government profits from an increase in seigniorage. This practice would increase the money supply but at the same time the relative value of each coin would be lowered; as the relative value of the coins becomes lower, consumers would need to give more coins in exchange for the same goods and services as before. These goods and services would experience a price increase. Song Dynasty China introduced the practice of printing paper money to create fiat currency.
During the Mongol Yuan Dynasty, the government spent a great deal of money fighting costly wars, reacted by printing more money, leading to inflation. Fearing the inflation that plagued the Yuan dynasty, the Ming Dynasty rejected the use of paper money, reverted to using copper coins. Large infusions of gold or silver into an economy led to inflation. From the second half of the 15th century to the first half of the 17th, Western Europe experienced a major inflationary cycle referred to as the "price revolution", with prices on average rising sixfold over 150 years; this was caused by the sudden influx of gold and silver from the New World into Habsburg Spain. The silver spread throughout a cash-starved Europe and caused widespread inflation. Demographic factors contributed to upward pressure on prices, with European population growth after depopulation caused by the Black Death pandemic. By the nineteenth century, economists categorized three separate factors that cause a rise or fall in the price of goods: a change in the value or production costs of the good, a change in the price of money, a fluctuation in the commodity price of the metallic content in the currency, currency depreciation resulting from an increased supply of currency relative to the quantity of redeemable metal backing the currency.
Following the proliferation of private banknote currency printed during the American Civil War, the term "inflation" started to appear as a direct reference to the currency depreciation that occurred as the quantity of redeemable banknotes outstripped the quantity of metal available for their redemption. At that time, the term inflation referred to the devaluation of the currency, not to a rise in the price of goods; this relationship between the over-supply of banknotes and a resulting depreciation in their value was noted by earlier classical economists such as David Hume and David Ricardo, who would go on to examine and debate what effect a currency devaluation has on the price of goods. The adoption of fiat currency by many countries, from the 18th century onwards, made much larger variations in the supply of money possible. Rapid increases in the money supply have taken place a number of times in countries experiencing political crises, produ
Conservative Party (UK)
The Conservative Party the Conservative and Unionist Party, is a centre-right political party in the United Kingdom. The governing party since 2010, it is the largest in the House of Commons, with 313 Members of Parliament, has 249 members of the House of Lords, 18 members of the European Parliament, 31 Members of the Scottish Parliament, 12 members of the Welsh Assembly, eight members of the London Assembly and 8,916 local councillors; the Conservative Party was founded in 1834 from the Tory Party—the Conservatives' colloquial name is "Tories"—and was one of two dominant political parties in the nineteenth century, along with the Liberal Party. Under Benjamin Disraeli it played a preeminent role in politics at the height of the British Empire. In 1912, the Liberal Unionist Party merged with the party to form the Conservative and Unionist Party. In the 1920s, the Labour Party surpassed the Liberals as the Conservatives' main rivals. Conservative Prime Ministers — notably Winston Churchill and Margaret Thatcher — led governments for 57 years of the twentieth century.
Positioned on the centre-right of British politics, the Conservative Party is ideologically conservative. Different factions have dominated the party at different times, including One Nation Conservatives and liberal conservatives, while its views and policies have changed throughout its history; the party has adopted liberal economic policies—favouring free market economics, limiting state regulation, pursuing privatisation—although in the past has supported protectionism. The party is British unionist, opposing both Irish reunification and Welsh and Scottish independence, supported the maintenance of the British Empire; the party includes those with differing views on the European Union, with Eurosceptic and pro-European wings. In foreign policy, it is for a strong national defence; the Conservatives are a member of the International Democrat Union and the Alliance of Conservatives and Reformists in Europe and sit with the European Conservatives and Reformists parliamentary group. The Scottish, Northern Irish and Gibraltan branches of the party are semi-autonomous.
Its support base consists of middle-class voters in rural areas of England, its domination of British politics throughout the twentieth century has led to it being referred to as one of the most successful political parties in the Western world. The Conservative Party was founded in the 1830s. However, some writers trace its origins to the reign of Charles II in the 1670s Exclusion Crisis. Other historians point to a faction, rooted in the 18th century Whig Party, that coalesced around William Pitt the Younger in the 1780s, they were known as "Independent Whigs", "Friends of Mr Pitt", or "Pittites" and never used terms such as "Tory" or "Conservative". Pitt died in 1806. From about 1812 on the name "Tory" was used for a new party that, according to historian Robert Blake, "are the ancestors of Conservatism". Blake adds that Pitt's successors after 1812 "were not in any sense standard-bearer's of true Toryism"; the term "Conservative" was suggested as a title for the party by a magazine article by J. Wilson Croker in the Quarterly Review in 1830.
The name caught on and was adopted under the aegis of Sir Robert Peel around 1834. Peel is acknowledged as the founder of the Conservative Party, which he created with the announcement of the Tamworth Manifesto; the term "Conservative Party" rather than Tory was the dominant usage by 1845. The widening of the electoral franchise in the nineteenth century forced the Conservative Party to popularise its approach under Edward Smith-Stanley, 14th Earl of Derby and Benjamin Disraeli, who carried through their own expansion of the franchise with the Reform Act of 1867. In 1886, the party formed an alliance with Spencer Compton Cavendish, Lord Hartington and Joseph Chamberlain's new Liberal Unionist Party and, under the statesmen Robert Gascoyne-Cecil, Lord Salisbury and Arthur Balfour, held power for all but three of the following twenty years before suffering a heavy defeat in 1906 when it split over the issue of free trade. Young Winston Churchill denounced Chamberlain's attack on free trade, helped organize the opposition inside the Unionist/Conservative Party.
Balfour, as party leader, followed Chamberlain's policy introduced protectionist legislation. The high tariff element called itself "Tariff Reformers" and in a major speech in Manchester on May 13, 1904, Churchill warned their takeover of the Unionist/Conservative party would permanently brand it as: A party of great vested interests, banded together in a formidable confederation. Two weeks Churchill crossed the floor and formally joined the Liberal Party. )He rejoined the Conservatives in 1925.) In December, Balfour lost control of his party, as the defections multiplied. He was replaced by Liberal Prime Minister Henry Campbell-Bannerman who called an election in January 1906, which produced a massive Liberal victory with a gain of 214 seats. Liberal Prime Minister H. H. Asquith enacted a great deal of reform legislation, but the Unionists worked hard at grassroots organizing. Two general elections were held in one in January and one in December; the two main parties were now dead equal in seats.
The Unionists had more popular votes but the Liberals kept control with a coalition with the Irish Parliamentary Party. In 1912, the Liberal Unionis
A rosé is a type of wine that incorporates some of the color from the grape skins, but not enough to qualify it as a red wine. It may be the oldest known type of wine, as it is the most straightforward to make with the skin contact method; the pink color can range from a pale "onion-skin" orange to a vivid near-purple, depending on the varietals used and winemaking techniques. There are three major ways to produce rosé wine: skin contact, saignée, blending. Rosé wines can be made still, semi-sparkling or sparkling and with a wide range of sweetness levels from dry Provençal rosé to sweet White Zinfandels and blushes. Rosé wines can be found all around the globe; when rosé wine is the primary product, it is produced with the skin contact method. Black-skinned grapes are crushed and the skins are allowed to remain in contact with the juice for a short period two to twenty hours; the must is pressed, the skins are discarded rather than left in contact throughout fermentation. The longer that the skins are left in contact with the juice, the more intense the color of the final wine.
When a winemaker desires to impart more tannin and color to a red wine, some of the pink juice from the must can be removed at an early stage in what is known as the Saignée method. The red wine remaining in the vats is intensified as a result of the bleeding, because the volume of juice in the must is reduced, the must involved in the maceration becomes more concentrated; the pink juice, removed can be fermented separately to produce rosé. The simple mixing of red wine into white wine to impart color is uncommon, is discouraged in most wine growing regions in France, where it is forbidden by law, except for Champagne. In Champagne, several high-end producers do not use this method but rather the saignée method; when the first wine labeled as a rosé was produced is not known but it is likely that many of the earliest red wines made were closer in appearance to today's rosés than they would be to modern red wines. This is because many of the winemaking techniques used to make today's darker, more tannic red wines were not practiced in ancient winemaking.
Both red and white wine grapes were pressed soon after harvest, with little maceration time, by hand, feet or sack cloth creating juice, only pigmented. After the development of newer, more efficient wine presses, many ancient and early winemakers still preferred making the lighter colored and fruitier style of wines. There was an understanding, as early as the time of the Ancient Greeks and Roman winemakers, that harder pressing and letting the juice "sit" for a period with the skins would make darker, heartier wines but the resulting wines were considered too harsh and less desirable; this sentiment lasted well into the Middle Ages, when the pale clarets from Bordeaux were starting to gain the world's attention. To the powerful English market the most prized clarets were, according to wine historian Hugh Johnson, the vin d'une nuit or "wine of one night" which were pale-rosé colored wines made from juice, allowed only a single night of skin contact; the darker wine produced from must that had longer skin contact were known as the vin vermeilh was considered to be of much lesser quality.
In the early history of Champagne the wines produced from this region during the Middle Ages were nothing like the sparkling white wines associated with the region today. Instead they were pale red and pinkish with some Champenois winemakers using elderberries to add more red color to the wines as they competed with the wines of Burgundy for the lucrative Flemish wine trade. In the 16th and 17th century, the region achieved some acclaim for their "white" wines made from Pinot noir grapes but rather than being white these wines were instead a pale "greyish pink", reminiscent of a "partridge's eye" and earned the nickname Œil de Perdrix—a style of rosé still being produced in Switzerland. In the late 17th century, the Champenois learned how to better separate the skins from the must and produce white wine from red wine grapes; as Champenois moved towards producing sparkling wines, they continued to produce both sparkling and still rosés by means of blending a small amount of red wine to "color up" an made white wine.
The depth of color was dependent on the amount red wine added with the red wine having more influence on the resulting flavor of the wine if added in larger volumes. The history of rosé would take a dramatic turn following the conclusion of World War II when two Portuguese wine producer families both released sweet sparkling rosés to the European and American markets; these wines and Lancers, would go to set record sales in Europe and the US and dominate the Portuguese wine industry for most of the 20th century but their popularity has declined in the recent years of the 21st century. While they still have a presence in the European and US markets, the trend towards traditional, drier rosés as well as the development of American "blush" wines like White Zinfandel have cut into their market shares. In the early 1970s, demand for white wine exceeded the availability of white wine grapes, so many California producers made "white" wine from red grapes, in a form of saignée production with minimal skin contact, the "whiter" the better.
In 1975, Sutter Home's "White Zinfandel" wine experienced a stuck fermentation, a problem in which the yeast goes dormant, or in some cases di
Sir John Alan Redwood is a British Conservative Party politician, Member of Parliament for Wokingham in the county of Berkshire. He was Secretary of State for Wales in Prime Minister John Major's Cabinet, was twice an unsuccessful challenger for the leadership of the Conservative Party in the 1990s, he served in the Shadow Cabinets of William Hague and Michael Howard, has remained a backbencher since then. Redwood is a veteran Eurosceptic, described in 1993 as a "pragmatic Thatcherite", he was the co-chairman of the Conservative Party's Policy Review Group on Economic Competitiveness until 2010. He has the role of Chief Global Strategist of investment management company Charles Stanley & Co Ltd. Redwood is a long-term critic of the European Union, a member of the Eurosceptic pressure group Leave Means Leave, he supported Brexit in the 2016 EU Referendum. John Redwood was born in Dover, the second child of William Redwood, an accountant and company secretary, his wife, Amy Emma, the manageress of a shoe shop.
He had an elder sister, who died as a baby in 1949. He grew up in a council house, describes his family buying their own house as a "big breakthrough" for the family. Redwood was educated at Kent College, before reading a Bachelor of Arts in History at Magdalen College and obtaining a DPhil in 1975 from the University of Oxford where he was a postgraduate student of All Souls College, Oxford, his thesis investigated fear of atheism in England from the restoration to the publication of Alciphron by George Berkeley. He was elected a fellow by examination at All Souls in 1972 which led to a distinguished fellowship, he was an Oxfordshire County Councillor between 1973 and 1977, the youngest at the age of 21 when elected, stood in the Peckham by-election of October 1982 where he lost to Harriet Harman. From 1983 onwards, he headed up Margaret Thatcher's policy unit, where he was one of the champions of privatisation. Redwood became MP for Wokingham in June 1987. Redwood was made a Parliamentary Under-Secretary of State in July 1989 for Corporate Affairs at the Department of Trade and Industry.
In November 1990, he was promoted to Minister of State. Redwood became Minister for Local Government and Inner Cities after the 1992 General Election, where he oversaw the abolition of the Community Charge, known as the "Poll Tax", its replacement with the Council Tax. Redwood has voted against key LGBT rights questions, being opposed to attempts to reduce the age of consent for homosexuality in both 1994 and 1999, choosing to vote to keep Section 28 in November 2003 and being opposed to same-sex marriage, he voted for the reintroduction of capital punishment in 1988, 1990 and 1994. Redwood has stated: "I have never spoken or written against civil partnerships and gay marriage and am not proposing any change to current laws. I regard the debate about capital punishment as being over and do not support its reintroduction. I never spoke or wrote in its favour." In the Government reshuffle of May 1993, Redwood was appointed to the cabinet as Secretary of State for Wales. He deferred several road widening schemes which would have endangered the environment of rural areas in Wales.
In February 1995, he was at loggerheads with the Countryside Council for Wales, because he had decided to cut its grant by 16%. He launched a scheme to provide more funding for popular schools with high numbers of applicants and concentrated extra expenditure on health and education services, away from administrative overheads. Redwood gained a somewhat haughty reputation with apparent disregard for national feeling. Redwood committed a memorable gaffe in 1993, when he attempted to mime to the Welsh national anthem at the Welsh Conservative Party conference, when he did not know the words. Redwood subsequently learned the anthem but, in August 2007, an unconnected news story on Redwood was illustrated with the same clip; this resulted in Conservative activists filing complaints, as a result the BBC apologised to Redwood for airing the dated footage. When John Major called upon his critics to "put up or shut up" and tendered his resignation to allow for a leadership challenge, Redwood resigned from the Cabinet, stood against Major in the subsequent party leadership election on 26 June 1995.
In the ballot held on 4 July 1995, Redwood received 89 votes, around a quarter of the Parliamentary Party. Major received 218 votes, or two thirds of the parliamentary party vote; the newspaper The Sun had declared its support for Redwood in the run up to the leadership contest, running the front page headline "Redwood versus Deadwood". When Major resigned as party leader after the General Election defeat of May 1997, Redwood stood in the resulting election for the leadership, was again defeated. After being defeated in the third round with 38 votes to Kenneth Clarke's 64 and William Hague's 62, Redwood backed Clarke against Hague. Redwood was subsequently appointed Shadow Secretary of State for Trade and Industry by the victorious William Hague, he was appointed Shadow Secretary of State for the Environment and the Regions in June 1999, but dropped in a mini reshuffle in February 2000, being succeeded by Archie Norman. Under Michael Howard, he was appointed Shadow Secretary of State for Deregulation.
Redwood is a veteran Eurosceptic. A critic of the Euro before its launch, Redwood suggested that the Eurozone should "break up" in 2011, proposed that the United Kingdom should give up its veto in return for the ability to opt
Governor of the Bank of England
The Governor of the Bank of England is the most senior position in the Bank of England. It is nominally a civil service post, but the appointment tends to be from within the bank, with the incumbent grooming his or her successor; the Governor of the Bank of England is Chairman of the Monetary Policy Committee, with a major role in guiding national economic and monetary policy, is therefore one of the most important public officials in the United Kingdom. According to the original charter of 27 July 1694 the bank's affairs would be supervised by a Governor, a Deputy Governor, 24 directors. In its current incarnation, the Bank's Court of Directors has 12 members, of whom five are various designated executives of the Bank; the 120th and current Governor is the Canadian Mark Carney, appointed in 2013. He is the first non-Briton to be appointed to the post, but made a commitment to the Prime Minister to take up British citizenship. Chief Cashier of the Bank of England Deputy Governor of the Bank of England List of Governors of the Bank of England
Consumer price index
A Consumer Price Index measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index, it is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index the real value of wages, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI, along with the population census, is one of the most watched national economic statistics; the index is computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure, such as food, shoes, each of, in turn a weighted average of sub-sub-indices.
At the most detailed level, the elementary aggregate level, detailed weighting information is unavailable, so indices are computed using an unweighted arithmetic or geometric mean of the prices of the sampled product offers. These indices compare prices each month with prices in the price-reference month; the weights used to combine them into the higher-level aggregates, into the overall index, relate to the estimated expenditures during a preceding whole year of the consumers covered by the index on the products within its scope in the area covered. Thus the index is a fixed-weight index, but a true Laspeyres index, since the weight-reference period of a year and the price-reference period a more recent single month, do not coincide. Ideally, the weights would relate to the composition of expenditure during the time between the price-reference month and the current month. There is a large technical economics literature on index formulas which would approximate this and which can be shown to approximate what economic theorists call a true cost-of-living index.
Such an index would show how consumer expenditure would have to move to compensate for price changes so as to allow consumers to maintain a constant standard of living. Approximations can only be computed retrospectively, whereas the index has to appear monthly and, quite soon. In some countries, notably in the United States and Sweden, the philosophy of the index is that it is inspired by and approximates the notion of a true cost of living index, whereas in most of Europe it is regarded more pragmatically; the coverage of the index may be limited. Consumers' expenditure abroad is excluded. Saving and investment are always excluded, though the prices paid for financial services provided by financial intermediaries may be included along with insurance; the index reference period called the base year differs both from the weight-reference period and the price-reference period. This is just a matter of rescaling the whole time-series to make the value for the index reference-period equal to 100.
Annually revised weights are a desirable but expensive feature of an index, for the older the weights the greater is the divergence between the current expenditure pattern and that of the weight reference-period. Consumer Price Index = Market Basket of Desired Year Market Basket of Base Year × 100 or CPI 2 CPI 1 = Price 2 Price 1 Where 1 is the comparison year and CPI1 is an index of 100. Alternatively, the CPI can be performed as CPI = updated cost base period cost × 100; the "updated cost" is divided by that of the initial year multiplied by one hundred. Many but not all price indices are weighted averages using weights that sum to 1 or 100. Example: The prices of 85,000 items from 22,000 stores, 35,000 rental units are added together and averaged, they are weighted this way: Housing: 41.4%, Food and Beverage: 17.4%, Transport: 17.0%, Medical Care: 6.9%, Other: 6.9%, Apparel: 6.0%, Entertainment: 4.4%. Taxes are not included in CPI computation. C P I = ∑ i = 1 n C P I i × w e i g h t i ∑
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker, still one of the bankers for the Government of the United Kingdom, it is the world's eighth-oldest bank, it was owned by stockholders from its foundation in 1694 until it was nationalised in 1946. The Bank became an independent public organisation in 1998, wholly owned by the Treasury Solicitor on behalf of the government, but with independence in setting monetary policy; the Bank is one of eight banks authorised to issue banknotes in the United Kingdom, has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland. The Bank's Monetary Policy Committee has a devolved responsibility for managing monetary policy; the Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances", but such orders must be endorsed by Parliament within 28 days.
The Bank's Financial Policy Committee held its first meeting in June 2011 as a macroprudential regulator to oversee regulation of the UK's financial sector. The Bank's headquarters have been in London's main financial district, the City of London, on Threadneedle Street, since 1734, it is sometimes known as The Old Lady of Threadneedle Street, a name taken from a satirical cartoon by James Gillray in 1797. The road junction outside is known as Bank junction; as a regulator and central bank, the Bank of England has not offered consumer banking services for many years, but it still does manage some public-facing services such as exchanging superseded bank notes. Until 2016, the bank provided personal banking services as a privilege for employees. England's crushing defeat by France, the dominant naval power, in naval engagements culminating in the 1690 Battle of Beachy Head, became the catalyst for England rebuilding itself as a global power. England had no choice. No public funds were available, the credit of William III's government was so low in London that it was impossible for it to borrow the £1,200,000 that the government wanted.
To induce subscription to the loan, the subscribers were to be incorporated by the name of the Governor and Company of the Bank of England. The Bank was given exclusive possession of the government's balances, was the only limited-liability corporation allowed to issue bank notes; the lenders would give the government cash and issue notes against the government bonds, which can be lent again. The £1.2m was raised in 12 days. As a side effect, the huge industrial effort needed, including establishing ironworks to make more nails and advances in agriculture feeding the quadrupled strength of the navy, started to transform the economy; this helped the new Kingdom of Great Britain – England and Scotland were formally united in 1707 – to become powerful. The power of the navy made Britain the dominant world power in the late 18th and early 19th centuries; the establishment of the bank was devised by Charles Montagu, 1st Earl of Halifax, in 1694. The plan of 1691, proposed by William Paterson three years before, had not been acted upon.
58 years earlier, in 1636, Financier to the king, Philip Burlamachi, had proposed the same idea in a letter addressed to Sir Francis Windebank. He proposed a loan of £1.2m to the government. The royal charter was granted on 27 July through the passage of the Tonnage Act 1694. Public finances were in such dire condition at the time that the terms of the loan were that it was to be serviced at a rate of 8% per annum, there was a service charge of £4,000 per annum for the management of the loan; the first governor was Sir John Houblon, depicted in the £50 note issued in 1994. The charter was renewed in 1742, 1764, 1781; the Bank's original home was in Walbrook, a street in the City of London, where during reconstruction in 1954 archaeologists found the remains of a Roman temple of Mithras. The Bank moved to its current location in Threadneedle Street in 1734, thereafter acquired neighbouring land to create the site necessary for erecting the Bank's original home at this location, under the direction of its chief architect Sir John Soane, between 1790 and 1827.
When the idea and reality of the national debt came about during the 18th century, this was managed by the Bank. During the American war of independence, business for the Bank was so good that George Washington remained a shareholder throughout the period. By the charter renewal in 1781 it was the bankers' bank – keeping enough gold to pay its notes on demand until 26 February 1797 when war had so diminished gold reserves that – following an invasion scare caused by the Battle of Fishguard days earlier – the government prohibited the Bank from paying out in gold by the passing of the Bank Restriction Act 1797; this prohibition lasted until 1821. The 1844 Bank Charter Act tied the issue of notes to the gold reserves and gave the Bank sol