History 1.1 Flashcards
(15 cards)
What year was the Bank of England established?
1694
By 1784 how many banks were there excluding London ?
119
By 1808, how many banks were there?
800
Goldsmiths
the first recognised bankers in Britain, people chose to deposit their gold in return for receipts or bills of exchange
How did the Goldsmiths help develop industrialisation?
transactions were made easier and safer which led to businesses accessing funds more effectively so that they could become better established. It encouraged further dealings and mutual growth
When were banks granted permission to issue bank notes?
1797
why were bank notes good idea?
it promoted the development of personal banking and gave employers an effective way of paying wages from a central fund
Why was personal banking and banks in other counties fundamental to economic development ?
It offered a clear and identifiable way to manage money
Why was the growth in banking limited?
The clause within the Bank of England Charter denied the right of note issue to banks with more then 6 members . This prevented the creation of larger joint-stock banks and kept banking on a localised scale.
What is a Joint-stock-bank?
a bank owned by several people each with shares in the banks capital - these individuals were only liable for debts up to the value of their shares and not the full amount in the bank
When was the cap removed on banks?
1826
How did banking facilitate the growing economy that industrialisation was promoting?
as banks grew in size they became more stable and investors became more confident with the protection that joint-stock status gave them. With increased stability, they were able to mange much greater sums of money and operate on a national scale. They established a financial network that spanned the country
When did an Act of Parliament permit joint stock banks to issue cheques?
1833
How did issuing cheques help the economy?
the speed of commercial transaction dramatically increased
it promoted more timely business practises
What was the result of issuing cheques?
banks became the easiest and most efficient way to do business
