Did William Paterson 1694 Bank of England 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
The 1694 charter granted to the Bank of England by William Paterson established the bank as a temporary institution with an eleven‑year term and a provision allowing the government to repay its loan and dissolve the charter thereafter. It did not make government debt permanent, nor was it the first instance of permanent government debt.
Sources 60 searched
- Paying for privilege: the political economy of Bank of England charters, 1694–1844 - ScienceDirect
The Bank of England was established by Parliament in 1694 as an explicitly temporary institution, which could be dissolved upon one year’s notice after the 11-year life guaranteed by its initial charter had passed.
- the political economy of Bank of England charters, 1694– ...
Fig. 2. Government debt to the chartered companies as a share of the funded debt, 1694–1786.
- The Political Economy of Bank of England Charters, 1694- ...
Professor and Department Chair · Department of Political Science
- Paying for the Privilege of Bank of England Charters, 1694-1843 | Weatherhead Center for International Affairs
To discern the public and private ... charter specified a life of only eleven years; at the end of that time, the government could exercise an option to repay its loan to the Bank and dissolve the charter....
- 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
And if 1200000 l. or a Moiety, or greater part thereof, be not paid into the Exchequer, by the first of January 1694, then the Subscribers shall have only af∣ter the Rate of 8 per Cent. per Ann. And the Commissioners of the Treasury are required without any Warrant from the King to pay the ...
- 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 · Subscriptions under the said Act; and the evidence submitted that the necessary sums had been subscribed: and proceeds:
- Managing the UK National Debt 1694-2017∗ Martin Ellison† Andrew Scott‡
The starting date for UK government debt is widely seen as 1694 when King William III used a syndicate of · merchants to sell debt to finance the Nine Years’War.3 This syndicate went on to become the Bank of England
- The Bank of England | British History Online
The goldsmiths, who detested the corporation that had broken in on their system of private banking, now tried to destroy the new company. They plotted, and on the same day they crowded to Grocers' Hall, where the Bank was located from 1694 to 1734, and insisted on immediate payment—one goldsmith alone demanding £30,000.
- History of the British national debt - Wikipedia
This syndicate soon evolved into the Bank of England, eventually financing the military campaigns of the Duke of Marlborough and later imperial conquests. The establishment of the bank was devised by Charles Montagu, in 1694, to the plan which had been proposed by William Paterson three years ...
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