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This section is from the book "The English Manual Of Banking", by Arthur Crump. Also available from Amazon: The English manual of banking.

Discount And Loan Business. Continued

It is not difficult to understand that the available supply of money can by such operations be not only withdrawn from the market, but to a large extent entirely lost. In the meantime the importation and consumption of luxuries is artificially stimulated, whereby more money has to be sent abroad at a time when its market value is necessarily rising. It is nothing more than the old familiar process by which we get for a time high discount rates, rendered often extreme by those whose business it is to afford pecuniary assistance to trade requiring help themselves in consequence of their ill-judged operations. Overtrading, in a word, exhausts the available means for carrying all trade on, and raises for the time its value; while the antithesis of overtrading, or stagnation which follows it throws floating capital out of employment, and, increasing in volume with returning confidence, it naturally falls by degrees to the extreme point of cheapness.

Annexed are the Bank of England Rates of Discount from 1694, the year of its foundation, to the date of the publication of this work :

1694.-August	8	.............	6
,,	30	..............	4 1/2
Oct.	24	............	6
1695.-Jan.	16	.............	6
,,	,,	...............	4 1/2*
,,	,,	.............	3*
May	19	...............	3
1704.-Feb.	28	.................	4*
,,	,,	...............	5*
1710.-June	22	.................	5
1716.-July	26	..................	4
1719.-April	30	..............	5
1720.-Oct.	27	..................	5
1722.-Aug.	23	...................	4
1742.-Oct.	18	...................	5*
,,	,,	..................	4*
1745.-Dec.	12	................	5-
1746.-May	1	......................	4*
,,	,,	........................	5*
1773.-May	13	.................	5
1822.-June	20	..................	4
1825.-Dec.	13	................	5
1827.-July	5	..................	4
1836.-July	21	....................	4 1/2
Sep.	1	.................	5
1838.-Feb.	15	.................	4
1839.-May	16	................	5
June	20	..................	5 1/2
Aug.	1	.................	6
1840.-Jan.	23	................	5
Oct.	15	....................	5
1841.-June	3	........................	5
1842.-April	7	.....................	4
1844.-Sep.	5	...................	2 1/2*
,,	,,	...................	3*
1845.-March	13	.................	2 1/2
Oct.	16	..................	3
Nov.	6	........................	3 1/2
1846.-Aug.	27	........................	3

1847.-Jan.	14	................	3 1/2
,,	21	................	4
April	8	................	5
,,	15	................	5
Aug.	5	................	5 1/2
From this period down to the date when the next change was made the rates varied according to the currency of the bills.
Oct.	25	................	8
. Nov.	27	................	7
Dec.	2	................	6
,,	23	................	5
1848.-Jan.	27	................	4
June	15	................	3 1/2
Nov.	2	................	3
1849.-Nov.	22	................	2 1/2
1850.-Dec.	26	................	3
1852.-Jan.	1	................	2 1/2
April	22	................	2
1853.-Jan.	6	................	2 1/2
,,	20	................	3
June	2	................	3 1/2
Sep.	1	................	4
,,	15	................	4 1/2
,,	29	................	5
1854.-May	11	................	5 1/2
Aug.	3	................	5
1855.-April	5	................	4 1/2
May	3	................	4
June	14	................	3 1/2
Sep.	6	................	4
,,	13	................	4 1/2
,,	27	................	5
Oct.	4	................	5 1/2
,,	18	................	6
,,	,,	................	7
1856.-May	22	................	0

* According to the nature of the bills.

1856.-May	29	.......................	5
June	26	......................	4 1/2
Oct.	1	.....................	5
,,	6	....................	6
,,	,,	.....................	7
Nov.	13	......................	7
Dec.	4	.......................	6 1/2
,,	18	................	6
1857.-April	2	....................	6 1/2
June	18	....................	6
July	16	....................	5 1/2
Oct.	8	...................	6
,,	12	...................	7
,,	19	...................	8
Nov.	5	....................	9
,,	9	..................	10
Dec.	24	.......................	8
1858.-Jan.	7	..................	6
,,	14	..................	5
,,	28	...................	4
Feb.	4	.....................	3 1/2
,,	11	..................	3
Dec.	9	...................	2 1/2
1859.-April	28	...................	3 1/2
May	5	....................	4 1/2
June	2	...................	3 1/2
,,	9	.................	3
July	14	................	2 1/2
1860.-Jan.	19	...................	3
,,	31	.....................	4
March	29	.....................	4 1/2
April	12	................	5
May	10	.....................	4 1/2
,,	24	.....................	4
Nov.	8	.....................	4 1/2
,,	13	....................	5
,,	15	....................	6
,,	29	.....................	5
Dec.	31	...................	6
1861.-Jan.	7	....................	7
Feb.	14	..................	8
March	21	...................	7
April	4	.............	6
,,	11	...............	5
May	16	................	6
Aug.	1	................	5
,,	15	........................	4 1/2

1861.-Aug.	29	.....................	4
Sep.	19	.......................	3 1/2
Nov.	7	.......................	3
1862.-Jan.	9	..........................	2 1/2
May	22	...................	3
July	10	....................	2 1/2
,,	24	......................	2
Oct.	30	.....................	3
1863.-Jan.	15	...................	4
,,	28	....................	5
Feb.	19	......................	4
April	23	.....................	3 1/2
,,	30	.....................	3
May	16	........................	3 1/2
,,	21	.....................	4
Nov.	2	.........................	5
,,	5	.........................	6
Dec.	2	.......................	7
,,	3	.....................	8
,,	24	......................	7
1864.-Jan.	20	.......................	8
Feb.	11	....................	7
,,	25	......................	6
April	16	.......................	7
May	2	.....................	8
,,	5	.................	9
,,	19	....................	8
,,	26	.....................	7
June	16	......................	6
July	25	.......................	7
Aug.	4	.....................	8
Sep.	8	.....................	9
Nov.	10	....................	8
,,	24	.....................	7
Dec.	15	......................	6
1865.-Jan.	12	-................	5 1/2
,,	26	................	5
March	2	................	4 1/2
,,	30	....................	4
May	4	....................	4 1/2
,,	25	.....................	4
June	1	...................	3 1/2
,,	15	.................	3
July	27	.....................	3 1/2
Aug.	3	..................	4
Sep.	28	..................	4 1/2
Oct.	2	..............................................	5

1865.-Oct.	5	......................	6
,,	7	...................	7
Nov.	23	..................	6
Dec.	28	....................	7
1866.-Jan.	4	................	8
Feb.	22	.................	7
March	15	.................	6
May	3	.................	7
,,	8	................	8
,,	11	.................	9
,,	12	...................	10
Aug.	16	..................	8
,,	23	...................	7
,,	30	...................	6
Sep.	6	....................	5
,,	27	...................	4 1/2
Nov.	8	..................	4
Dec.	20	...............	3 1/2
1867.-Feb.	7	................	3
May	30	................	2 1/2
July	25	..................	2
1868.-Nov.	19	...................	2 1/2
Dec.	3	..................	3
1869.-April	1	..................	4
May	6	...................	4 1/2
June	10	...................	4
,,	24	......................	3 1/2
July	15	....................	3
Aug.	19	..................	2 1/2
Nov.	4	.................	3
1870.-July	21	...................	3 1/2
,,	23	................	4
,,	28	.................	5
Aug.	4	.................	6
,,	11	.............	5 1/2
,,	18	................	4 1/2
,,	25	.................	4
Sep.	1	..................	3 1/2
,,	15	.................	3
,,	29	...................	2 1/2
1871.-March	2	...................	3
April	13	.................	2 1/2
June	15	..................	2 1/2
July	13	...................	2
Sep.	21	................	3
,,	28	...............	4
Oct.	7	............	5

1871-Nov.	16	.....................	4
,,	30	...................	3 1/2
Dec.	14	...................	3
1872.-April	4	..................	3 1/2
,,	11	...................	4
May	9	...................	5
,,	30	.................	4
June	13	..................	3 1/2
,,	20	..................	3
July	18	................	3 1/2
Sep.	18	...................	4
,,	26	................	4 1/2
Oct.	3	..................	5
,,	10	.................	6
Nov.	9	................	7
,,	28	...................	6
Dec.	12	.................	5
1873.-Jan.	9	.................	4 1/2
,,	23	..................	4
,,	30	..................	3 1/2
March	26	.................	4
May	7	...................	4 1/2
,,	10	...............	5
,,	17	..............	6
June	4	................	7
,,	12	.....................	6
July	10	................	5
,,	17	..................	4 1/2
,,	24	...............	4
,,	31	................	3 1/2
Aug.	21	..............	3
Sept.	25	.............	4
,,	29	..................	5
Oct.	14	..................	6
,,	18	.................	7
Nov.	1	...............	8
,,	7	................	9
,,	20	.................	8
,,	27	....................	6
Dec.	4	....................	5
,,	11	..................	4 1/2
1874.-Jan.	8	.................	4
,,	15	.................	3 1/2
April	30	.................	4
May	28	................	3 1/2
June	4	.................	3
,,	18	.....................	2 1 / 2

1874.-July	30	...................	3
Aug.	6	..................	4
,,	20	................	3 1/2
,,	27	................	3
Oct.	15	................	4
Nov.	16	................	5
,,	30	...............	6
1875.-Jan.	7	................	5
,,	14	.................	4
,,	28	.................	3
Feb.	18	...................	3 1 / 2
July	8	...................	3

1875.-July	29	.......................	2 1/2
Aug.	12	....................	2
Oct.	7	...................	2 1/2
,,	14	...................	3 1/2
,,	21	..................	4
Nov.	18	..................	3
Dec.	30	...................	4
1876.-Jan.	6	..................	5
,,	27	.................	4
March	23	...................	3 1/2
April	6	...................	3
,,	20	..................	2

Continue to:

prev: Chapter IX. Discount And Loan Business
Table of Contents
next: Chapter X. Credit

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		Discount And Loan Business. Continued

Discount And Loan Business. Continued

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Discount And Loan Business. Continued

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