Bank of England established

Question 1

Bank of England established:

Date

Answer 1

1694

Question 2

Bank of England established:

Summary

Answer 2

Bank of England was thought up by the Whig Chancellor, Charles Montagu, and supported by many Whigs but opposed by leading Tories.

From William’s point of view, the Bank was an essential way in which he could attract large numbers of investors who would deposit small amounts to be lent to the government, although the system was only possible as it had the backing of an Act of Parliament.

Question 3

Bank of England established:

Significance

Answer 3

Bank of England example of the long-term borrowing that has kept government afloat ever since.

The creation of the Bank of England represented a victory for those who supported the unlimited possibilities of economic growth based on a system of credit.

Question 4

Bank of England established:

Marxist view

Answer 4

Parliamentary control of finance through BofE as move that benefitted only the propertied classes- Hill:

• Government borrowing was now under the direct control of the MPs, who were the representatives of the tax-paying classes.
• Hill argued that this led to a situation where monied interest played an important role in politics, and no future political faction or party could hope for sustained success without the support of the financiers in the City of London.