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CONTENTS*
CHAPTER
OF THE BANK CHARTER AOT OF 1844
[ 1819.,*
en*.
fAyfe
J. Foundatioi of the Bank of England ...... 20'
2. Suspension of Cash Payments in 17>7 2/>
Doctrine of the Bullion Eeport .....*. 20(5
3. Stoppage of payments in 207
4. Eesnmption of Cash payments in 1821 . 207
5. Drain of G-old in 1824-25 . 208
6. Great drain of Gold in 1839 ....... 208
7. Rise and Doctrine of a new school of Currency Theorists . . 2(>tt
Lord Overstone points out the radical defect of tho Bank principle
of 1832 209
8. Their doctrines adopted by Sir Robert Pool in 1844 . . 200
The Bank Act doea not carry out tli i 8 , .
Theory 210
Arithmetical errors of the Bank Act . . . . * ,211
9. Failure of the Bank Act in April 1847 . * . . . 212
10. Causes of this failure .214
New Principle of the . . .
Currency
. * , , 21ft
11. Universal adoption of this . . . , .
Principle .217
12. On the Causes which compelled the Suspension of tho Bank Act,
in 1847, 1857, and 1866 ........ 210
Two Theories as to the proper action of the Batik in a Monetary
Crisis ,210
Examples of Monetary Crises 220
The Restrictive Theory has always failed in a Monetary Crisis . 226
The Restrictive Theory adopted by Law in 1844 . . , 227
^Failure of this Theory in 1847, 1867, and 1866 . . . . 228
failure of this Theory in Italy, Germany, and America . . 229
13. Differences of Principle between the Doctrines of the Bullion
Report and the framers of the Act of 1819 and the Doctrines of
the framers of the Act of 1844
2SO
14 Examination of the Arguments alleged for maintaining the Bank
Act. ...'...."
.
. 2,11
.^
Amount of force in these arguments .282
, . . . ,
An excessive restriction of Credit causes and produce a run for
/ Gold * . . 23fi
^Thornton's prediction verified in 1847, 1857, and I860 . , 23fi
The Doctrines of the Bullion Report on the Principlefl of a Pajmr
Currency are completed by adopting the RATIS of DIHCOUMT a
the supreme power for carrying them into effect . .
Constitution of the Directorate of the Bank of Kagland . , 237
^.'l?