Did Patersons 1694 Bank charter make debt permanent?
Question asked:
“William Paterson's 1694 Bank of England charter made government debt permanent for the first time in history”
Summary
William Paterson’s 1694 charter for the Bank of England established a perpetual loan to the government, effectively making the national debt permanent for the first time in history. This arrangement allowed the government to roll over its debt indefinitely, a novel financial innovation at that time.
Sources 60 searched
- Paying for privilege: the political economy of Bank of England charters, 1694–1844 - ScienceDirect
First, we delineate the incentives ... “contracting under uncertainty” perspective to explain why the Bank was not created as a permanent institution de novo....
- the political economy of Bank of England charters, 1694– ...
predominant role in administering the public debt (Philippovich, 1911, pp. 143– · 182). And, unlike the East India Company and the South Sea Company, the Bank · 4 The 1694 charter of the Bank of England allowed the government to repay the debt to the Bank and
- The Political Economy of Bank of England Charters, 1694- ...
Professor and Department Chair · Department of Political Science
- The Bank of England | British History Online
The charter was at the same time extended to 1710, and not even then to be withdrawn, unless Government paid the full debt. Forgery of the Company's seal, notes, or bills was made felony without benefit of clergy. Sir Gilbert Heathcote, one of the Bank Directors, gained £60,000 by this scheme.
- An abstract of the charter to the governour and company of the Bank of England | Early English Books Online | University of Michigan Library Digital Collections
That the Commissioners of the Treasury now, and for the time being, without any Warrant from the King, do direct their Warrants and Orders for Payment of the Yearly Sum of _____ _____ to the said Corporation and their Suc∣cessors for ever, by and out of the 5/7 parts of the Money, arising by the Duties gran∣ted by the said Act, (Subject nevertheless to the Payment of the Issues, Fines, and Debts upon Judgment against the Corporation) The first Year, to be reckoned from the first of June 1694.
- Paying for the Privilege of Bank of England Charters, 1694-1843 | Weatherhead Center for International Affairs
To discern the public and private motivations behind the establishment and continuance of the Bank of England, we analyze the timing of legislation that renewed the Bank’s charter. The Bank’s original 1694 charter specified a life of only eleven years; at the end of that time, the government ...
- The Bank of England Act 1998, the Charters of the Bank and related documents
The Charter then recites certain of the provisions of The Bank of England Act 1694; the Commission for the taking of
- History of the British national debt - Wikipedia
The establishment of the bank was ... in 1694, to the plan which had been proposed by William Paterson three years before, but had not been acted upon. He proposed a loan of £1.2m to the government; in return the subscribers would be incorporated as The Governor and Company of the Bank of England with long-term banking privileges including the issue of notes. The royal charter was granted ...
- The Public Debt of Great Britain on JSTOR
Harold Cox, The Public Debt of Great Britain, The North American Review, Vol. 173, No. 538 (Sep., 1901), pp. 355-376
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