Bank Restriction Act 1797
The Bank Restriction Act 1797 was an Act of the Parliament of Great Britain which removed the requirement for the Bank of England to convert banknotes into gold. The period lasted until 1821; the period between these two dates is known as the Restriction period. An increasing number of people were trading their banknotes for gold. Due to the overprinting of banknotes, the Bank of England was losing its supply of gold, due to the gold standard, the value of each banknote was diminishing; the timing of the act, under consideration for a few months owing to runs on banks in Newcastle-upon-Tyne and Durham that had in turn requested monetary support from the Bank of England, was the invasion of Britain on 22–24 February 1797 by French forces in Fishguard. When news of this event, now known as the Battle of Fishguard, became known in London, a much greater run on the Bank of England was feared, had a large number of holders of banknotes attempted to convert them into gold when bullion reserves were reduced.
However, because the total face value of the notes in circulation was exactly twice the actual gold reserves held, this would have bankrupted the Bank, Parliament decided to suspend these'specie payments' with immediate effect. British banknotes were overprinted by the government of William Pitt the Younger after Britain declared war on revolutionary France in 1793. Passing of the Bank Restriction Act released the government from the fear of mass redemption of such convertible banknotes, by the end of the war in 1814, the banknotes in circulation had a face value of £28.4 million, yet was backed by only £2.2 million of gold. However, by 1821, with radical economic policies instigated by Sir Robert Peel, this situation was reversed, with £2,295,360 of notes in circulation being backed by £11,233,390 of bullion, the British government resumed "convertibility" on 1 May 1821. After the passing of the act, Richard Brinsley Sheridan publicly bemoaned the way in which the Bank of England had fallen under the influence of William Pitt the Younger by describing the institution as "An elderly lady in the City, of great credit and long standing who had fallen into bad company".
This in turn led to James Gillray’s famous cartoon entitled Political Ravishment. This cartoon is the origin of the Bank's nickname of "The Old Lady of Threadneedle Street", still in use today. Gold standard Battle of Fishguard Inflation Depreciation Bank of England
A constitution is an aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity, determine how that entity is to be governed. When these principles are written down into a single document or set of legal documents, those documents may be said to embody a written constitution; some constitutions are uncodified, but written in numerous fundamental Acts of a legislature, court cases or treaties. Constitutions concern different levels of organizations, from sovereign countries to companies and unincorporated associations. A treaty which establishes an international organization is its constitution, in that it would define how that organization is constituted. Within states, a constitution defines the principles upon which the state is based, the procedure in which laws are made and by whom; some constitutions codified constitutions act as limiters of state power, by establishing lines which a state's rulers cannot cross, such as fundamental rights.
The Constitution of India is the longest written constitution of any country in the world, containing 444 articles in 22 parts, 12 schedules and 118 amendments, with 146,385 words in its English-language version. The Constitution of Monaco is the shortest written constitution, containing 10 chapters with 97 articles, a total of 3,814 words; the term constitution comes through French from the Latin word constitutio, used for regulations and orders, such as the imperial enactments. The term was used in canon law for an important determination a decree issued by the Pope, now referred to as an apostolic constitution; every modern written constitution confers specific powers to an organization or institutional entity, established upon the primary condition that it abide by the said constitution's limitations. According to Scott Gordon, a political organization is constitutional to the extent that it "contain institutionalized mechanisms of power control for the protection of the interests and liberties of the citizenry, including those that may be in the minority".
Activities of officials within an organization or polity that fall within the constitutional or statutory authority of those officials are termed "within power". For example, a students' union may be prohibited as an organization from engaging in activities not concerning students. An example from the constitutional law of sovereign states would be a provincial parliament in a federal state trying to legislate in an area that the constitution allocates to the federal parliament, such as ratifying a treaty. Action that appears to be beyond power may be judicially reviewed and, if found to be beyond power, must cease. Legislation, found to be beyond power will be "invalid" and of no force. In this context, "within power", intra vires, "authorized" and "valid" have the same meaning. In most but not all modern states the constitution has supremacy over ordinary statutory law, it was never "law" though, if it had been a statute or statutory provision, it might have been adopted according to the procedures for adopting legislation.
Sometimes the problem is not that a statute is unconstitutional, but the application of it is, on a particular occasion, a court may decide that while there are ways it could be applied that are constitutional, that instance was not allowed or legitimate. In such a case, only the application may be ruled unconstitutional; the remedy for such violations have been petitions for common law writs, such as quo warranto. Excavations in modern-day Iraq by Ernest de Sarzec in 1877 found evidence of the earliest known code of justice, issued by the Sumerian king Urukagina of Lagash ca 2300 BC; the earliest prototype for a law of government, this document itself has not yet been discovered. For example, it is known that it relieved tax for widows and orphans, protected the poor from the usury of the rich. After that, many governments ruled by special codes of written laws; the oldest such document still known to exist seems to be the Code of Ur-Nammu of Ur. Some of the better-known ancient law codes include the code of Lipit-Ishtar of Isin, the code of Hammurabi of Babylonia, the Hittite code, the Assyrian code and Mosaic law.
In 621 BC, a scribe named. In 594 BC, the ruler of Athens, created the new Solonian Constitution, it eased the burden of the workers, determined that membership of the ruling class was to be based on wealth, rather than by birth. Cleisthenes again
Panic of 1893
The Panic of 1893 was a serious economic depression in the United States that began in 1893 and ended in 1897. It affected every sector of the economy, produced political upheaval that led to the realigning election of 1896 and the presidency of William McKinley. One of the causes for the Panic of 1893 can be traced back to Argentina. Investment was encouraged by Baring Brothers. However, the 1890 wheat crop failure and a coup in Buenos Aires ended further investments. In addition, speculations collapsed in South African and Australian properties; because European investors were concerned that these problems might spread, they started a run on gold in the U. S. Treasury. Specie was considered more valuable than paper money. During the Gilded Age of the 1870s and 1880s, the United States had experienced economic growth and expansion, but much of this expansion depended on high international commodity prices. To exacerbate the problems with international investments, wheat prices crashed in 1893. One of the first clear signs of trouble came on February 20, 1893, twelve days before the inauguration of U.
S. President Grover Cleveland, with the appointment of receivers for the Philadelphia and Reading Railroad, which had overextended itself. Upon taking office, Cleveland dealt directly with the Treasury crisis and convinced Congress to repeal the Sherman Silver Purchase Act, which he felt was responsible for the economic crisis; as concern for the state of the economy deepened, people rushed to withdraw their money from banks, caused bank runs. The credit crunch rippled through the economy. A financial panic in London combined with a drop in continental European trade caused foreign investors to sell American stocks to obtain American funds backed by gold; the People's Party known as the'Populists', was an agrarian-populist political party in the United States. From 1892 to 1896, it played a major role as a left-wing force in American politics, it drew support from angry farmers in the South. It was critical of capitalism banks and railroads, allied itself with the labor movement. Established in 1891 as a result of the Populist movement, the People's Party reached its zenith in the 1892 presidential election, when its ticket, composed of James B. Weaver and James G. Field, won 8.5% of the popular vote and carried five states, the 1894 House of Representatives elections, when it won nine seats.
Built on a coalition of poor, white cotton farmers in the South and hard-pressed wheat farmers in the Plains states, the Populists represented a radical crusading form of agrarianism and hostility to elites, banks and gold. The Free Silver movement arose from a synergy of mining interests. Farmers sought to invigorate the economy and thereby end deflation, forcing them to repay loans with valuable dollars. Mining interests sought the right to turn silver directly into money without a central minting institution; the Sherman Silver Purchase Act of 1890, while falling short of the Free Silver movement's goals, required the U. S. government to buy millions of ounces of silver above what was required by the 1878 Bland–Allison Act. People attempted to redeem silver notes for gold; the statutory limit for the minimum amount of gold in federal reserves was reached and U. S. notes could no longer be redeemed for gold. Investments during the time of the panic were financed through bond issues with high interest payments.
Rumors regarding the National Cordage Company's financial distress caused its lenders to call in their loans and NCC went into bankruptcy receivership as a result. The company, a rope manufacturer, had tried to corner the market for imported hemp; as demand for silver and silver notes fell, the price and value of silver dropped. Holders worried about a loss of face value of bonds, many became worthless. A series of bank failures followed, the Northern Pacific Railway, the Union Pacific Railroad and the Atchison, Topeka & Santa Fe Railroad failed; this was followed by the bankruptcy of many other companies. According to high estimates, about 17%–19% of the workforce was unemployed at the panic's peak; the huge spike in unemployment, combined with the loss of life savings kept in failed banks, meant that a once-secure middle-class could not meet their mortgage obligations. Many walked away from built homes as a result; as a result of the panic, stock prices declined. Five hundred banks closed, fifteen thousand businesses failed, numerous farms ceased operation.
The unemployment rate hit 25% in Pennsylvania, 35% in New York, 43% in Michigan. Soup kitchens were opened to help feed the destitute. Facing starvation, people chopped wood, broke rocks, sewed by hand with needle and thread in exchange for food. In some cases, women resorted to prostitution to feed their families. To help the people of Detroit, Mayor Hazen S. Pingree launched "Pingree's Potato Patch," which were community gardens for farming; the Sherman Silver Purchase Act of 1890 along with the protectionist McKinley Tariff of that year, has been blamed for the panic. Passed in response to a large overproduction of silver by western mines, the Sherman Act required the U. S. Treasury to purchase silver using notes backed by either gold. President Grover Cleveland
History of the United States (1918–1945)
The history of the United States from 1918 through 1945 covers the post-World War I era, the Great Depression, World War II. After World War I, the U. S. did not join the League of Nations. In 1920, the manufacture, sale and export of alcohol was prohibited by an amendment to the United States Constitution. Possession of liquor, drinking it, was never illegal; the overall level of alcohol consumption did go down, however and local governments avoided aggressive enforcement. The federal government was overwhelmed with cases, so that bootlegging and speakeasies flourished in every city, well-organized criminal gangs exploded in numbers, finances and influence on city politics. Widespread domestic-terrorist attacks from radicals, like the 1920 Wall Street Bombing and the 1919 United States anarchist bombings created concern for most Americans, sparked the first Red Scare. Although most Americans decried the attacks, many citizens in the labor and socialist movements were growing frustrated with the growing level of income inequality during that time.
There was a huge economic spur. Culture wars between fundamentalist Christians and modernists became more intense, as demonstrated by prohibition, the KKK, the publicized Scopes Trial in which a teacher was fined for teaching evolution but the prosecution was made to look foolish; the nation enjoyed a period of sustained prosperity, 1921–1929. Agriculture went through a bubble in soaring land prices that collapsed in 1921, that sector remained depressed. Coal mining was shrinking. Otherwise most sectors prospered. Construction flourished as office buildings, paved roads, new housing was evident everywhere. Automobile production soared, the nation's homes and cities were electrified. Prices were stable, the Gross Domestic Product grew until 1929, when the financial speculation bubble burst as Wall Street crashed. In foreign policy President Wilson helped found the League of Nations but the U. S. never joined it, as the Congress was reluctant to give up its constitutional role in declaring war. The nation instead took the initiative to disarm the world, most notably at the Washington Conference in 1921–22.
Washington stabilized the European economy through the Dawes Plan and the Young Plan. The Immigration Act of 1924 was aimed at stabilizing the traditional ethnic balance and limiting the total inflow; the act blocked Asian immigrants, providing no means for them to get in. The Wall Street Crash of 1929 and the ensuing Great Depression led to government efforts to restart the economy and help its victims; the recovery, was slow. The nadir of the Great Depression was 1933, recovery was rapid until the recession of 1938 proved a setback. There were no major new industries in the 1930s that were big enough to drive growth the way autos and construction had been so powerful in the 1920s. GDP surpassed 1929 levels in 1940. By 1939, isolationist sentiment in America had ebbed, after the stunning fall of France in 1940 to Nazi Germany the United States began rearming itself and sent a large stream of money and military supplies to Britain and the Soviet Union. After the sudden Japanese Attack on Pearl Harbor, the United States entered the war against Imperial Japan, Fascist Italy, Nazi Germany, known as the "Axis Powers".
Italy surrendered in 1943, Germany and Japan in 1945, after massive devastation and loss of life, while the US emerged far richer and with few casualties. The United States was in turmoil throughout 1919; the huge number of returning veterans could not find work, something the Wilson administration had given little thought to. After the war, fear of subversion resumed in the context of the Red Scare, massive strikes in major industries and violent race riots. Radicals bombed Wall Street, workers went on strike in Seattle in February. During 1919, a series of more than 20 riotous and violent black-white race-related incidents occurred; these included the Chicago and Elaine Race Riots. A phenomenon known as the Red Scare took place 1918–1919. With the rise of violent Communist revolutions in Europe, leftist radicals were emboldened by the Bolshevik Revolution in Russia and were eager to respond to Lenin's call for world revolution. On May 1, 1919, a parade in Cleveland, protesting the imprisonment of the Socialist Party leader, Eugene Debs, erupted into the violent May Day Riots.
A series of bombings in 1919 and assassination attempts further inflamed the situation. Attorney General A. Mitchell Palmer conducted the Palmer Raids, a series of raids and arrests of non-citizen socialists, radical unionists, immigrants, they were charged with planning to overthrow the government. By 1920, over 10,000 arrests were made, the aliens caught up in these raids were deported back to Europe, most notably the anarchist Emma Goldman, who years before had attempted to assassinate industrialist Henry Clay Frick. A popular Tin Pan Alley song of 1919 asked, concerning the United States troops returning from World War I, "How Ya Gonna Keep'em Down on the Farm?". In fact, many did not remain "down on the farm"; the average distance moved was only 10 miles. Few went to the cities with over 100,000 people. However, agriculture became mechanized with widespread use of the tractor, other heavy equipment, superior techniques disseminated through County Agents, who were employed by state agricultural colleges and funded by the Federal government.
In 1919, Woodrow Wilson campaigned for the U. S. to join the new League of Nation
Thomas Jefferson was an American statesman, lawyer and Founding Father who served as the third president of the United States from 1801 to 1809. He had served as the second vice president of the United States from 1797 to 1801; the principal author of the Declaration of Independence, Jefferson was a proponent of democracy and individual rights motivating American colonists to break from the Kingdom of Great Britain and form a new nation. Jefferson was of English ancestry and educated in colonial Virginia, he graduated from the College of William & Mary and practiced law, with the largest number of his cases concerning land ownership claims. During the American Revolution, he represented Virginia in the Continental Congress that adopted the Declaration, drafted the law for religious freedom as a Virginia legislator, served as the 2nd Governor of Virginia from 1779 to 1781, during the American Revolutionary War, he became the United States Minister to France in May 1785, subsequently the nation's first secretary of state under President George Washington from 1790 to 1793.
Jefferson and James Madison organized the Democratic-Republican Party to oppose the Federalist Party during the formation of the First Party System. With Madison, he anonymously wrote the controversial Kentucky and Virginia Resolutions in 1798 and 1799, which sought to strengthen states' rights by nullifying the federal Alien and Sedition Acts; as president, Jefferson pursued the nation's shipping and trade interests against Barbary pirates and aggressive British trade policies. He organized the Louisiana Purchase doubling the country's territory; as a result of peace negotiations with France, his administration reduced military forces. He was reelected in 1804. Jefferson's second term was beset with difficulties at home, including the trial of former vice president Aaron Burr. American foreign trade was diminished when Jefferson implemented the Embargo Act of 1807, responding to British threats to U. S. shipping. In 1803, Jefferson began a controversial process of Indian tribe removal to the newly organized Louisiana Territory, he signed the Act Prohibiting Importation of Slaves in 1807.
Jefferson, while a planter and politician, mastered many disciplines, which ranged from surveying and mathematics to horticulture and mechanics. He was an architect in the classical tradition. Jefferson's keen interest in religion and philosophy led to his presidency of the American Philosophical Society. A philologist, Jefferson knew several languages, he corresponded with many prominent people. His only full-length book is Notes on the State of Virginia, considered the most important American book published before 1800. After retiring from public office, Jefferson founded the University of Virginia. Although regarded as a leading spokesman for democracy and republicanism in the era of the Enlightenment, Jefferson's historical legacy is mixed; some modern scholarship has been critical of Jefferson's private life, pointing out the contradiction between his ownership of the large numbers of slaves that worked his plantations and his famous declaration that "all men are created equal." Another point of controversy stems from the evidence that after his wife Martha died in 1782, Jefferson fathered children with Martha's half-sister, Sally Hemings, his slave.
Despite this, presidential scholars and historians praise his public achievements, including his advocacy of religious freedom and tolerance in Virginia. Jefferson continues to rank among U. S. presidents. Thomas Jefferson was born on April 13, 1743, at the family home in Shadwell in the Colony of Virginia, the third of ten children, he was of English, Welsh and was born a British subject. His father Peter Jefferson was a surveyor who died when Jefferson was fourteen. Peter Jefferson moved his family to Tuckahoe Plantation in 1745 upon the death of William Randolph, the plantation's owner and Jefferson's friend, who in his will had named him guardian of his children; the Jeffersons returned to Shadwell in 1752, where Peter died in 1757. Thomas inherited 5,000 acres of land, including Monticello, he assumed full authority over his property at age 21. Jefferson began his childhood education beside the Randolph children with tutors at Tuckahoe. Thomas' father, was self-taught, regretting not having a formal education, he entered Thomas into an English school early, at age five.
In 1752, at age nine, he began attending a local school run by a Scottish Presbyterian minister and began studying the natural world, for which he grew to love. At this time he began studying Latin and French, while learning to ride horses. Thomas read books from his father's modest library, he was taught from 1758 to 1760 by Reverend James Maury near Gordonsville, where he studied history and the classics while boarding with Maury's family. During this period Jefferson came to know and befriended various American Indians, including the famous Cherokee chief, who stopped at Shadwell to visit, on their way to Williamsburg to trade. During the two years Jefferson was with the Maury family, he traveled to Williamsburg and was a guest of Colonel Dandridge, father of Martha Washington. In Williamsburg the young Jefferson met and came to admire Patrick Henry, eight ye
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