history+of+money

=A History of Money from Ancient Times to the Present Day=


 * ~ c 9000 - 6000 BC ||~  ||
 * Cattle and plant products such as grain, come to be used as money in many different societies. Cattle are probably the oldest of all forms of money. ||
 * ~ c. 3000 - c. 2000 BC ||~ Development of Banking in Mesopotamia ||
 * Banking originates in Babylonia out of the activities of temples and palaces which provided safe places for the storage of valuables. Initially deposits of grain are accepted and later other goods including cattle, agricultural implements, and precious metals. p 49 ||
 * ~ c. 2575 BC ||~ Construction of the Great Pyramid at Giza ||
 * ~ c. 2250- c. 2150 BC ||~ Cappadocian rulers guarantee quality of silver ingots ||
 * Silver Ingots were used as money ||
 * ~ c. 1200 BC ||~ Cowries used as money in China ||
 * The Chinese character for "money" originally represented a cowrie shell. Cowries have been used as money in many different places at different periods. In parts of Africa they were used for this purpose as recently as the middle of the 20th century. p 35-36,54-55 ||
 * ~ c. 1000-500 BC ||~ Tool currencies adopted in China ||
 * Metal tools were used as money in China ||
 * ~ c. 950 BC ||~ Queen of Sheba visits Solomon and they exchange gifts ||
 * ~ c. 640 - c. 630 BC ||~ The first true coins produced in Lydia ||
 * The earliest coins made in Lydia, Asia Minor, consisted of electrum, a naturally occurring amalgam of gold and silver. p 61-63 ||
 * ~ c. 600 BC ||~ Pythius operates as a merchant banker in Asia Minor ||
 * Pythius is the first banker in the area of Greece and Asia Minor of whom we have records. ||
 * ~ c. 600-300 BC ||~ Round, base metal coins invented in China ||
 * The date is uncertain but these were probably at least roughly contemporary with the development of coinage in the West, and possibly much earlier. Being made of base metal the Chinese coins were of relatively low value and therefore inconvenient for expensive purchases. p 55 ||
 * Aegina (c. 595 BC), Athens (c. 575 BC), and Corinth (c. 570 BC) start to mint their own coins. Prior to the introduction of coinage the Athenians had used iron spits or elongated nails as money. p 45,64,74 ||
 * ~ c. 550 BC ||~ Lydians produce separate gold and silver coins ||
 * These cumbersome bronze bars are later superseded by coins which are much more convenient. p 88 ||
 * ~ 269 BC ||~ Regular issues of silver coins are minted by the Romans and widely circulated ||
 * ~ 118 BC ||~ Leather money issued in China ||
 * This consists of pieces of white deerskin, about one foot square, with a value of 40,000 //cash//. (The //cash// was the name of a base metal coin). p 180 ||
 * ~ 30 BC - 14 AD ||~ Reign of Augustus Caesar ||
 * ~ 30 BC - 14 AD ||~ Reign of Augustus Caesar ||


 * ~ c. 30 AD ||~ Christ drives the money changers out of the Temple in Jerusalem ||
 * Jesus overturns the money changers' tables (Matthew 21.12). To gentiles the practice of money changers conducting their business in and around temples and other public buildings would have seemed commonplace. The Greek bankers or //trapezitai// derived their name from their tables just as the English word //bank// comes from the Italian //banca// for bench or //counter//. p 72 ||


 * ~ c. 1020 ||~ Quantity of Chinese paper money reaches an excessive level ||


 * ~ 1160 ||~ Emperor Kao Tsung reforms the Chinese paper currency ||
 * Earlier issues have been excessive and so have become almost worthless. Therefore Kao Tsung replaces them with a new issue. p 181 ||
 * ~ c. 1160-c. 1200 ||~ English wooden tallies evolve into instruments of credit ||
 * Tallies were wooden sticks originally used as receipts. Notches whose sizes represented a particular sum of money would be cut into the stick which would then be split down the middle. One part would be kept by the creditor, the other by the debtor. Sometimes the loans were fictitiously swollen to get round the prohibition of usury. During the 12th century the English Exchequer starts issuing tallies as a form of credit. Tallies were not finally abolished until 1826. p 147-152, 663 ||
 * ~ 1166 ||~ Henry II levies a tax to support the Crusades ||
 * This is the first of a series of taxes levied by Henry over the years with the same objective. The Templars and Hospitallers act as his bankers in the Holy Land. p 156 ||
 * ~ 1166 ||~ Hyperinflation in China ||
 * The nominal value of the official paper note issues reaches 43,600,000 ounces of silver. In addition there are various local note issues. p 181 ||
 * ~ 1185 ||~ Henry II levies a new //Crusading Tax// ||
 * A levy of sixpence in the pound on all movable property is imposed along with a 1 per cent tax on all incomes whether from land or any other source. p 156 ||
 * ~ 1187 ||~ Battle of Hattin ||
 * Henry II's eastern account contains approximately 20,000 pounds of silver but he does not allow anyone to spend it until after Saladin's crushing victory over the Crusaders. p 156 ||
 * ~ 1188 ||~ The //Saladin Tithe// ||
 * Henry extends the provisions of the crusading tax of 1185 and attempts to speed up the assessment process by introducing self-assessment. p 157 ||
 * ~ 1189-1199 ||~ Reign of Richard I ||
 * On ascending the throne Richard immediately begins to "privatise" the monarchy's assets to raise money for the 3rd Crusade which starts in 1190. On his return through Europe he is taken prisoner, sold to Emperor Henry VI and then held for ransom. p 157 ||
 * ~ 1194 ||~ Richard released after being ransomed for £100,000 ||
 * The speed with which the money is raised is a sign of England's prosperity. p 157 ||
 * ~ 1215 ||~ The //Magna Carta// signed ||
 * Among its provisions were restrictions on the right of the king to raise taxes without the consent of the Barons. p 158 ||
 * ~ 1232-1253 ||~ Gold coins are issued by several Italian states ||
 * Under the influence of Byzantine and Arab coinage Messina and Brindisi (1232), Florence (1252) and Genoa (1253) issue gold coins. The type minted in Florence, the //florin//, becomes widely copied in other parts of Europe. p 124 ||
 * ~ 1236 ||~ First Mongol issues of paper money ||
 * The Mongol empire, which now includes China, issues paper money on a moderate scale. p 181 ||
 * ~ 1260 ||~ Kublai Khan's first issue of paper money ||
 * By this time the note circulation has reached a substantial level. p 181 ||
 * ~ 1275 ||~ Edward I forbids the Jews to exact usury ||
 * The resulting shortage of money leads to an increase in clipping and a decline in the quality of the coinage. The Jews get blamed and suffer wholesale arrests in 1278 and expulsion from England in 1290. p 143 ||
 * ~ 1275-1292 ||~ Marco Polo lives in China ||
 * From his subsequent account of his //Travels//, Europe learns of paper money. p 181 ||
 * ~ 1279-1281 ||~ Edward I issues 3 new coins ||
 * The halfpenny, farthing, and groat (4 pence). The first two meet the demand for low-denomination coinage at a time when a penny would be a typical whole day's pay. p 143 ||
 * ~ 1282 ||~ The first recorded //Trial of the Pyx// ||
 * A public test of the purity of gold and silver coins, which continues in Britain to this day. p 144-146 ||
 * ~ 1283 ||~ Statute of Burnell ||
 * This introduces a central registrar of large credit transactions in England. p 172 ||
 * ~ 1294 ||~ Paper money issued in Persia ||
 * This disastrous experiment lasts barely two months and is confined to the city of Tabriz. Subsequently Rashid al Din, prime minister of Persia round about this time, describes both printing and paper money in his //History of the World.//p 182 ||
 * ~ 1299 ||~ Statute of Stepney on Bad Money ||
 * The importation of debased coins into England is forbidden and restrictions on the export of silver bullion and coins are introduced. These provisions are strengthened in 1351. p 163 ||


 * ~ 1319-1331 ||~ Parts of India and Japan issue paper money ||
 * These are short-lived imitations of Chinese currency. p 182 ||
 * ~ 1337 - 1453 ||~ Hundred Years War between England and France ||
 * In the early stages of the war the net balance of ransom, loot, bounty and plunder favours the English. Later, when the tide began to turn new, unpopular taxes are introduced to finance the English war effort. p 164-165 ||
 * ~ 1344 ||~ The Weight of the Penny is Reduced ||
 * To reduce the temptations offered to illegal exporters of coin, the weight of the penny, which has remained almost unchanged for 200 years, is slightly reduced. p 164 ||
 * ~ 1348-1350 ||~ The Black Death ravages Europe ||
 * This is followed by several other outbreaks of plague over the next hundred years, causing a reduction in the size of the population and a collapse in economic growth. p 159-161 ||
 * ~ 1351 ||~ Statute of Labourers ||
 * This stipulates the maximum rates of pay in England at pre-plague levels for the main occupations and restricts mobility of labour. p 162 ||
 * ~ 1351 ||~ Another Reduction in the Weight of the Penny ||
 * Edward III makes a more substantial reduction than the one he made in 1344. p 164 ||
 * ~ 1351 ||~ Restrictions on the Export of English Bullion and Coins ||
 * Anxieties over the unofficial drain of gold and silver bullion and coinage to the Continent cause the government to tighten the provisions of the Statute of Stepney 1299, but without much effect. p 163 ||
 * ~ 1352 ||~ The Statute of Purveyors ||
 * The English parliament is unhappy about the reductions in the weight of the penny and expresses the hope that the king will no more tamper with the coinage than with the standards of weights and measures. p 164 ||
 * ~ 1355 ||~ Nicole Oresme's //De Origine Natura Jura et Mutationibus Monetarum// is published ||
 * Oresme, the greatest economic thinker of the Middle Ages, argues that the quantity of precious metal in circulation determines the value of the currency. Later, in 1370, he becomes chaplain and adviser to King Charles V of France. p 228-229 ||
 * ~ 1356 ||~ Battle of Poitiers ||
 * King John II of France is captured by the English who demand a ransom of 3 million crowns (£500,000) but in the end they accept a little less than half the amount. Part of the ransom is used in building Windsor Castle. p 165 ||
 * ~ 1377-1399 ||~ Reign of Richard II ||
 * In 1377 Richard II imposes an unpopular flat rate poll tax followed by similar taxes in 1379 and 1381. p 159, 166-167 ||
 * ~ 1381 ||~ The Peasants' Revolt ||
 * The uprising, belatedly caused in large part by anger at the poll tax, is suppressed. p 167 ||
 * ~ 1381 ||~ Richard Aylesbury opposes ban on the export of bullion ||
 * He argues that a legal ban is unnecessary provided total commodity exports at least balance imports. p 225 ||
 * ~ 1401 ||~ Bank of Barcelona founded ||
 * p 233 ||
 * ~ 1403 ||~ Charging interest on loans is ruled legal in Florence ||
 * Despite the traditional Christian prohibition of usury, Italian banks such as the Lombards, who have agents in the main economic centres of Europe, have been making charges for loans. The lawyer and theologian Lorenzo di Antonio Ridolfi wins a case which legalises interest payments by the Florentine government. p 219-220 ||
 * ~ 1407 ||~ Bank of St George, Genoa, founded ||
 * p 548 ||
 * ~ 1440 ||~ Gutenberg invents the modern printing press ||
 * Although Europe already knew of the use of paper money in China, the printing press design is subsequently modified, by Leonardo da Vinci among others, for use in minting coins nearly two centuries before printed banknotes are produced in the West. p 178-179 ||
 * ~ 1448 ||~ Hyperinflation in China ||
 * The Ming note nominally worth 1,000 //cash// has a market value of only three. p 183 ||
 * ~ c. 1450 ||~ Portuguese start voyages along the coast of Africa ||
 * In the 14th and 15th centuries Europe suffers from a "Great Bullion Famine." This is partially alleviated as the Portuguese open up a new route for sub-Saharan gold via Ghana and Mali. p 175,176,186 ||
 * ~ 1452-1519 ||~ Life of Leonardo da Vinci ||
 * Among Leonardo's drawings are designs for a press to produce more uniform coins quickly using a water driven mill. This innovation is widely adopted and the new money is termed //milled money//. p 178-179 ||
 * ~ 1453 ||~ Fall of Constantinople ||
 * The capture of Constantinople by the Ottoman Turks and the disruption caused to existing trade routes is a motivating factor in the subsequent European voyages of exploration. p 174,176 ||
 * ~ c. 1455 ||~ China abandons paper money ||
 * There are no known references to paper money being in circulation after this date. Thus after well over 500 years of experience with paper currencies, during which there have been repeated episodes of inflation and currency reform, China ceases to use paper money. p 183 ||
 * ~ 1455-1485 ||~ The Wars of the Roses ||
 * By the end of these wars the English currency has suffered badly from wear and tear, clipping and counterfeiting of coins. p 173,190 ||
 * ~ 1487 ||~ Fuggers Bank founded in Augsburg ||
 * The increased availability of gold from Africa and later, after the discoveries of Columbus, the Caribbean, raises the relative value of silver and consequently the Fuggers profit greatly by financing European silver mines. p 186,552 ||
 * ~ 1489 ||~ Henry VII slashes Mint charges and issues the first gold sovereigns ||
 * By reducing the mint charges Henry encourages people to bring gold and silver to the mints, causing a huge increase in their output of coins in the following years. Up to 1489 the English pound has simply been a unit of account. Now, with the issue of the sovereign, it is also a coin. p 191 ||
 * ~ 1492 ||~ Columbus discovers America ||
 * In less than a decade after Columbus's first voyage the size of the world known to Europeans is more than doubled. Within a generation it is more than trebled. However, the discovery of highly profitable new trade routes to the already well-known trading centres of India and China is a more important motivation than the discovery of new lands. p 175-176,185 ||
 * ~ 1494 ||~ First book on double entry bookkeeping is published in Italy ||
 * Double entry bookkeeping has been in use for probably well over a century in Italy before the publication of the //Summa de Arithmetica, Geometrica, Proportioni et Proportionalita// by Friar Luca Pacioli. p 234-236 ||
 * ~ 1498 ||~ Proclamation against "Roman" coins ||
 * During the Wars of the Roses good domestic currency was extremely rare in England and use was made of illegally imported European and Irish coinage, almost all of which was also grossly underweight. By this proclamation Henry VII tries to prohibit the use of groats and half-groats issued by the Holy Roman Emperor. p 192 ||
 * ~ 1498 ||~ Vasco da Gama reaches India ||
 * The development of new, long-distance trade routes involving new modes of transport as a result of the voyages of Vasco da Gama and Columbus stimulates the development of capital and foreign exchange markets, and the use of bills of exchange. The pooling of resources to reduce the risks of trade with far-away destinations leads to the development of new experimental forms of equity capital from which the joint-stock company eventually evolves. p 176-177 ||


 * ~ 1452-1519 ||~ Life of Leonardo da Vinci ||
 * Among Leonardo's drawings are designs for a press to produce more uniform coins quickly using a water driven mill. This innovation is widely adopted and the new money is termed //milled money//. p 178-179 ||
 * ~ 1500-1540 ||~ Huge supplies of New World gold reach Spain ||
 * On average between 1,000 and 1,500 kg. of gold reach Spain each year during this period. Initially these supplies are obtained by plunder, especially from the Aztecs and Incas, and later by applying new mining methods to the New World gold deposits. p 176,186-187 ||
 * ~ 1504-1507 ||~ Large-scale exports of manillas from Portugal to West Africa ||
 * During this short period alone a single trading station on the Guinea coast imports 287,813 manillas. (A manilla is a metal anklet, bracelet or front section of a necklace, usually made of copper or brass, used for money which can be conveniently and ornamentally carried on the person). p 45-46 ||
 * ~ 1504 ||~ Henry VII issues shilling coins ||
 * Up to this time the English shilling has simply been a unit of account. p 191 ||
 * ~ 1511 ||~ The Protestant Reformation begins ||
 * Although Luther, Calvin and Zwingli condemned traditional forms of usury they weakened the church's power and influence over economic affairs. Later on in England, Henry VIII, after breaking with Rome, legalises the charging of interest and seizes monastic property. p 193-194,220-221 ||
 * ~ 1519-1521 ||~ Cortés conquers Mexico ||
 * Before the arrival of the Spaniards the Aztecs and Mayas used gold dust (kept in transparent quills) and cocoa beans (kept for large payments in sacks of 24,000) as money. p 47 ||
 * ~ 1519 ||~ Minting of //Thalers// begins in Joachimsthal in Bohemia ||
 * This coin made from locally-mined silver is known as the //Joachimsthaler//, or //thaler// for short, from its place of origin, and is widely imitated. The Anglicised form of the name, //dollar//, is later used for the Spanish peso and the Portuguese eight-real piece which circulate widely in North America both before and after the United States gains its independence. p 459 ||
 * ~ 1526 ||~ Nicholas Copernicus writes his //Treatise on Debasement// ||
 * With many provinces of his native Poland, and other parts of Europe, suffering from debasement the great astronomer argues that it is the total number of coins in circulation, rather than the weight of metal they contain, that determines the level of prices and the buying power of the currency. p 230 ||
 * ~ 1532 ||~ Pizarro lands in Peru and begins the conquest of the Incas ||
 * [|The Incas] were unique in reaching a high degree of civilization without the use of money even though they possessed huge amounts of gold and silver. The more rigid a state's planning system the less the need for money. p 47 ||
 * ~ 1534-1540 ||~ Dissolution of the Monasteries ||
 * Henry VIII seizes control of the property of the monasteries, partly to promote the Reformation in England but mainly because of his need to find money for the defence of the realm. p 193-194 ||
 * ~ 1540-1640 ||~ The Price Revolution in Europe ||
 * Europe, including Britain, experiences a prolonged period of inflation, partly because of the huge influx of gold and silver from the Spanish colonies in America and partly because the increase in population is not matched by an increase in the output of the economy. Compared with many earlier and later inflations this hardly deserves being described as a //revolution//. p 211-217 ||
 * ~ 1542-1551 ||~ The Great Debasement ||
 * Henry VIII debases the coinage of England as a means of raising revenue. In Ireland the debasement started earlier, in 1536, and does not finish until 1560. p 197-202 ||
 * ~ 1545 ||~ Henry VIII legalises interest charges on loans ||
 * An upper limit of 10% per annum is set. p 221 ||
 * ~ 1545 ||~ Discovery of an enormous source of silver in Potosi ||
 * This is a mountain of silver, 6 miles in circumference, in what later becomes Bolivia. p 187 ||
 * ~ 1551-1574 ||~ Thomas Gresham works in Holland ||
 * During these years Gresham lives, on and off, in Antwerp learning the arts of large-scale lending and borrowing as well as foreign exchange. The skills he acquires equip him to become one of the leading advisers of Elizabeth I. p 232 ||
 * ~ 1553 ||~ The first English joint stock company is founded ||
 * This is the Russia Company which is the product of the search for the North-East passage to Asia. p 235 ||
 * ~ 1560 ||~ Elizabeth I begins the reform of England's debased coinage ||
 * This is a first step towards the complete replacement of the debased coinage she inherited from her predecessors. Thomas Gresham, after whom //Gresham's law// ("bad money drives out good") is named, is an influential adviser. The debased coins are recalled and melted down and the base and precious metals separated. The recoinage programme is completed in 1561. p 202-206 ||
 * ~ 1563 ||~ Discovery of mercury deposits at Huancavelica ||
 * These deposits enable silver to be extracted from Potosi by the mercury amalgam process already used in silver mines in Mexico. Thereafter huge supplies of silver are sent to Europe and China. p 188 ||
 * ~ 1566 ||~ The Royal Exchange is built ||
 * This shows the new importance of banking, and particularly foreign exchange dealing, in England. p 232 ||
 * ~ 1568 ||~ First inland joint-stock companies in England founded ||
 * These are the Mines Royal and the Mineral and Battery. German metalworkers are prominent in the development of both. p 235 ||
 * ~ 1577-1580 ||~ Francis Drake's circumnavigation of the globe ||
 * The booty seized from the Spaniards (estimated at between £300,000 and £1,500,000) has been described by Keynes as //the fountain and origin of British Foreign Investment//. p 213 ||
 * ~ 1585 ||~ Bank of Genoa founded ||
 * p 233 ||
 * ~ 1587 ||~ Francis Walsingham attempts to delay the Spanish Armada by economic warfare ||
 * Walsingham's agents reputedly corner large numbers of bills drawn on Genoan banks in order to delay the build up of resources to equip the Spanish Armada which sets sail against England the next year. p 232 ||
 * ~ 1587 ||~ Banco di Rialto, Venice, founded ||
 * p 233 ||
 * ~ 1597 ||~ Spanish exports of silver to China reach a peak ||
 * In this year 345,000 kg. of Peruvian/Bolivian and Mexican silver are shipped from Acapulco to China via Manilla. p 189 ||
 * ~ 1599 ||~ The Dutch attempt to corner the pepper market ||
 * Pepper has a high value-to-weight ratio especially at times of real or artificial scarcity. On some rare occasions it is worth even more than its weight in gold. The Dutch action prompts the formation of the London East India Company the following year. p 184-185 ||
 * ~ 1540-1640 ||~ The Price Revolution in Europe ||
 * Europe, including Britain, experiences a prolonged period of inflation, partly because of the huge influx of gold and silver from the Spanish colonies in America and partly because the increase in population is not matched by an increase in the output of the economy. Compared with many earlier and later inflations this hardly deserves being described as a //revolution//. p 211-217 ||
 * ~ 1600 ||~ The London East India Company is founded ||
 * Imports from India subsequently cause a drain of precious metals from England to India. p 226-227,236,239 ||
 * ~ 1601 ||~ Poor Law introduced in England ||
 * The aim is to establish a national pattern for parishes to copy in dealing with the problems of the destitute, which have become more obvious since the dissolution of the monasteries, 1534-1540. p 215 ||
 * ~ 1602 ||~ Dutch East India Company founded ||
 * This company provides the financial backing for Dutch competition with England in the Far East for control of the pepper market. p 548 ||
 * ~ 1609 ||~ Bank of Amsterdam is founded ||
 * This public bank is established to provide a superior and more controlled service than that available from private bankers. Later its example inspires the establishment of the Bank of England. p 233,549 ||
 * ~ 1609 ||~ (Public) Bank of Barcelona founded ||
 * Holland and Britain are not the only countries to adopt the new banking practices which originated in Italy. p 552 ||
 * ~ 1613 ||~ Lord Harington issues copper farthings under licence ||
 * As a result of the lack of low denomination coinage in England token coins, mainly of lead, are produced by as many as 3,000 unofficial minters who pay the king nothing. The licence James I issues to Lord Harington stipulates that half the profits are to go to the king. p 208,209 ||
 * ~ 1615 ||~ First balance of trade and balance of payments calculations ||
 * The calculations for England by Sir Lionell Cranfield and Mr. Wolstenholme are referred to by Sir Francis Bacon in an essay written in 1616 (though not published until 1661). p 227 ||
 * ~ 1616 ||~ Bank of Middelburg founded ||
 * Banking continues to spread in the Netherlands. p 552 ||
 * ~ 1619 ||~ Hamburg Girobank founded ||
 * Publicly owned banks increasingly complement older, private banks. p 552 ||
 * ~ 1619 ||~ Tobacco begins to be used as currency in Virginia ||
 * Barely a dozen years after its introduction to Virginia tobacco starts being used as currency and this use continues for nearly 200 years. p 458 ||
 * ~ 1621 ||~ Edward Misselden's //Circle of Commerce or Balance of Trade// is published ||
 * Misselden, who is the first to use the term //balance of trade// in print, argues (like Aylesbury 240 years earlier - in 1381) that bullion outflows do not matter if trade is balanced. p 227 ||
 * ~ 1621 ||~ The Act Against Usury ||
 * The maximum legal rate of interest in England is reduced to 8% per annum. p 221 ||
 * ~ 1621 ||~ Bank of Delft founded ||
 * Banking continues to spread in the Netherlands. p 552 ||
 * ~ 1621 ||~ Dutch West India Company founded ||
 * This company provides the financial backing for Dutch competition with England for a foothold in the New World. p 548 ||
 * ~ 1621 ||~ Bank of Nuremburg founded ||
 * The trend continues towards publicly owned banks which complement the older private banks. p 552 ||
 * ~ 1633-1672 ||~ The Rise of the goldsmith-bankers ||
 * Some British goldsmiths, by dealing in foreign and domestic coins and by letting their safes be used for deposits of valuables, gradually evolve into bankers. p 251 ||
 * ~ 1633 ||~ The earliest extant English goldsmith's note is issued ||
 * Goldsmith's notes come to be used not only as receipts for reclaiming deposits but also as evidence of ability to pay. p 251 ||
 * ~ 1634-1637 ||~ Tulip mania in Holland ||
 * The high prices commanded by tulips with unusual patterns and colours encourages the general public to take part in speculative deals. A nationwide mania develops and sends the prices of bulbs soaring but when the bubble bursts they drop to one-twentieth, or less, of levels prevailing a few days earlier. p 549-551 ||
 * ~ 1634 ||~ //Ship money// taxes increased by Charles I ||
 * These taxes, introduced to raise money for the build-up of the English navy, prove extremely unpopular. p 210-211 ||
 * ~ 1635 ||~ Bank of Rotterdam founded ||
 * The spread of banking in the Netherlands continues. p 552 ||
 * ~ 1637 ||~ Wampum becomes legal tender in Massachusetts ||
 * This is only for sums up to one shilling. Wampum is a type of shell used by the native Americans as currency and adopted by the settlers. p 40 ||
 * ~ 1640 ||~ Charles I forcibly purchases the East India Company's pepper stock ||
 * Owing to his disputes with parliament over taxation, which lead ultimately to the English Civil War, Charles I is short of money. He compels the East India Company to sell him its entire stock of pepper on two years' credit and immediately sells it at a loss for ready cash, solving his short-term by adding much more to his medium-term debts. p 239-240 ||
 * ~ 1640 ||~ Seizure of the mint by Charles I ||
 * In another move to solve his financial problems Charles I seizes the mint and keeps one third of the bullion for six months. p 240 ||
 * ~ c. 1640 ||~ Reduction in silver imports causes slump in Chinese economy ||
 * China has become dangerously dependent on New World supplies of silver for its currency. Supplies from this source start to dry up with disastrous consequences for the late Ming economy. p 189 ||
 * ~ 1642-1651 ||~ English Civil War ||
 * The war is fought because parliament disputes the king's right to levy taxes without its consent. The use of goldsmith's safes as secure places for people's jewels, bullion and coins had increased after the seizure of the mint by Charles I in 1640 and increases again with the outbreak of the Civil War. This accelerates the tendency of some goldsmiths to become bankers and development of that aspect of their business continues after the war is over. p 250 ||
 * ~ 1643 ||~ Massachusetts raises limit on wampum as legal tender ||
 * The limit is raised to £2. p 40 ||
 * ~ 1645 ||~ Paris mint is fully mechanised and starts production of milled coins ||
 * With the replacement of the ancient technique of hammering coins, minting has become fully mechanised. Improved productivity is not the only advantage. The milled edges prevent clipping and cutting and make counterfeiting more difficult. p 241-242 ||
 * ~ 1652-1684 ||~ John Hull's unofficial mint operates in Massachusetts ||
 * The mint coins threepences, sixpences and //pine-tree// shillings all of which contain about three-quarters of the silver in their newly minted English equivalents but about as much as most of the old, worn coins in circulation. p 459 ||
 * ~ 1656 ||~ Bank of Sweden founded ||
 * Its charter authorizes it to accept deposits, grant loans and mortgages, and issue bills of credit. p 552 ||
 * ~ 1659 ||~ The ealiest extant British cheque is issued ||
 * This is an order to the London goldsmiths Morris and Clayton to pay a Mr Delboe £ 400. p 250-251 ||
 * ~ c. 1660 ||~ Goldsmiths' receipts become banknotes ||
 * Because goldsmiths' notes are accepted as evidence of ability to pay they are a convenient alternative to handling coins or bullion. The realisation by goldsmiths that borrowers would find them just as convenient as depositors marks the start of the use of banknotes in England. p 251 ||
 * ~ 1661 ||~ Bank of Sweden issues notes ||
 * It becomes the first chartered bank in Europe to do so. p 552 ||
 * ~ 1661 ||~ Wampum ceases to be legal tender in New England ||
 * However it continues to be used as currency in other parts of America for another 200 years. p 40 ||
 * ~ 1663 ||~ First British Guineas produced ||
 * This is a new milled coin, initially worth £1, using gold from west Africa, hence the name //guinea//. p 242,244 ||
 * ~ 1664 ||~ Construction of the New York citadel paid for in wampum ||
 * Stuyvesant arranges a loan worth over 5,000 Dutch gilders in wampum to pay the wages of workers constructing the citadel. p 40,458 ||
 * ~ 1666 ||~ Act for the Encouragement of Coinage ||
 * English mint charges are abolished and replaced by import duties on wine, beer, cider, spirits and vinegar. p 243 ||
 * ~ 1668 ||~ Pepys refers to banknotes in his diary ||
 * In his entry for 29 February he mentions sending his father a note for £600 issued by a goldsmith. p 251 ||
 * ~ 1672 ||~ First state issues of copper coinage in England ||
 * There had been occasional licensed issues by private minters since 1613. The attractive new, milled coinage with the image of Britannia, tends to disappear from circulation, in accordance with Gresham's law, though not as quickly as the new silver coins do, while the existing badly worn, unattractive hammered coins and tokens continue to be used. p 243 ||
 * ~ 1672 ||~ Charles II introduces the //Stop of the Exchequer// ||
 * The goldsmiths refuse to lend more money to the king who has already borrowed huge sums and therefore he prohibits most payments from the exchequer, initially for a year and later indefinitely. In the late 1670s and the 1680s several of his largest creditors go bankrupt. p 251-254 ||
 * ~ 1681 ||~ First public note-issuing //bank// founded in Massachusetts ||
 * In this context the term //bank// means simply a batch of bills of credit issued for a temporary period. This example is followed subsequently in other British colonies in North America. p 461 ||
 * ~ 1682 ||~ Sir William Petty's //Quantulumcunque concerning Money// published ||
 * Petty, a founder of Britain's Royal Society, argues that banking will provide a major stimulus to the English economy and world trade. p 238 ||
 * ~ 1688 ||~ The Glorious Revolution in England ||
 * William of Orange and his wife Mary are made jointly sovereign by parliament after James II flees to France. Political and economic power is in the process of shifting from the monarch to the moneyed classes and thus the financial and constitutional revolutions are closely and causally intertwined. p 244, 254, 280-281 ||
 * ~ 1689-1697 ||~ War of the League of Augsburg against Louis XIV of France ||
 * The English government has difficulty in raising enough money for the prosecution of the war by taxation and borrowing from the goldsmiths. p 256,258 ||
 * ~ 1690 ||~ The Massachusetts Bay Colony issues official paper money ||
 * These notes are used to pay soldiers returning from an expedition to Quebec. They can be used to pay taxes and are accepted as legal tender. Other colonies subsequently copy the example of Massachusetts. p 460-461 ||
 * ~ 1693 ||~ The English Parliament passes the //Tontine Act// ||
 * This act, based on the ideas of the Italian adviser to the French court, Lorenzo Tonti, marks the beginning of the English national debt. The //tontine// is a scheme for raising money on a long-term basis by weighting rewards in favour of the longest lasting contributors. p 263 ||
 * ~ 1694 ||~ Bank of England is founded ||
 * The main purpose of the Act founding the Bank is to raise money for the War of the League of Augsburg by taxation and by the novel device of a permanent loan on which interest would be paid but the principal would not be repaid. p 238,258-262 ||
 * ~ 1695 ||~ Bank of Scotland is founded ||
 * The first joint-stock bank in Europe solely dependent on private capital and wholly unconnected with the state. p 238,272-273 ||
 * ~ 1696 ||~ The Million or Lottery Act ||
 * The English government attempts to raise £1 million by issuing 100,000 shares of £10 at 10% with the possibility of sharing a total of £40,000 to be put up each year as lottery prizes. The target is not reached and the money is used as subscriptions to the capital of the Million Bank which becomes an investment fund for government securities. p 260,263-264 ||
 * ~ 1696 ||~ The Great Recoinage ||
 * England's silver coins, many of which are worn or clipped, are replaced by new, full-weight silver coins. p 244-246 ||
 * ~ 1696 ||~ The Ingrafting of the Tallies ||
 * Following the failure of the attempt to create a National Land Bank, which damages confidence in financial institutions, and a shortage of cash caused by the Great Recoinage, there is a collapse in the value of government tallies. The Bank of England helps the government out by taking up most of the tallies which are //ingrafted// into the Bank's capital stock. In return the Treasury agrees to pay 8% interest on the tallies. p 261 ||
 * ~ 1698 ||~ Coins form less than half the English money supply ||
 * Davenant, a contemporary writer, estimates that the total value of coins in circulation is less than that of tallies, bills, banknotes etc. Increasingly the power of money creation is passing from the King, in charge of the mint, to the London money market and provincial banks. Political and constitutional power is also affected by this transfer of financial power. p 278-281 ||
 * ~ 1699-1727 ||~ Sir Isaac Newton is Master of the Mint ||
 * During Newton's period in charge the emphasis of the mint's work changes from coining silver to coining gold. p 247 ||


 * ~ 1699-1727 ||~ Sir Isaac Newton is Master of the Mint ||
 * During Newton's period in charge the emphasis of the mint's work changes from coining silver to coining gold. p 247 ||
 * ~ 1700 ||~ Collapse of the Darien Company ruins Scotland's trade hopes ||
 * The Scottish company was intended to set up a colonial entrepot at Darien in Panama. The impact of its failure on Scotland's attempts to develop its overseas trade proves a powerful motivating factor in the Act of Union with England in 1707. p 274 ||
 * ~ 1704 ||~ Promissory Notes Act ||
 * This confirms the legality in England of goldsmith's notes as //negotiable//, i.e. payable to the bearer rather than to a named person. p 251 ||
 * ~ 1705 ||~ John Law publishes //Money and Trade Considered// ||
 * After travelling widely on the Continent, Law returns to his native Scotland and publishes //Money and Trade Considered: With a Proposal for Supplying the Nation with Money.// He argues that metallic money is unreliable in quality and quantity. Bank notes issued and managed by a public bank would remove the brakes on the economy. He is probably the world's first Keynesian; but compare Sir William Petty, 1682. p 553 ||
 * ~ 1707 ||~ Act of Union of England and Scotland ||
 * Among the provisions of the act is a stipulation that the United Kingdom should have a uniform coinage - a single currency symbolising and cementing a //united kingdom.// During the 3 years of recoinage in Scotland the shortfall in currency is made up by the issue of notes by the Bank of Scotland. p 274-275 ||
 * ~ 1708 ||~ Britain sets American colonies' exchange rate for Spanish dollar ||
 * The British parliament specifies that 6 shillings should be the maximum rate any of the colonies should use for the Spanish peso or dollar which is widely used as currency by the colonists. However the Act has little effect. p 459-460 ||
 * ~ 1713 ||~ John Law returns to France ||
 * His ideas were rejected in Britain but in France he gets the chance to put them into effect. p 553 ||
 * ~ 1715 ||~ Duke of Orleans becomes Regent of France ||
 * French public finance is in a parlous state after the wars and extravagance of Louis XIV. State promissory notes fall to a quarter of their nominal value within a year. In desperation the Duke turns to John Law. p 554 ||
 * ~ 1715 ||~ North Carolina makes 17 different forms of money legal tender ||
 * All the British colonies in North America tend to suffer from a dearth of the official British coinage. Consequently they use a variety of substitutes including wampum, copied from the native inhabitants, tobacco and other natural commodities, and Spanish and Portuguese coins. The importance of these substitutes varies according to location. p 38,457 ||
 * ~ 1716 ||~ John Law creates France's first public bank ||
 * To economize on the use of precious metals Law establishes a note-issuing bank, Law & Co. or the Banque Generale. In contrast to the state's short-term paper Law's banknotes appreciate in value. p 554 ||
 * ~ 1718 ||~ French Regent reorganizes Law's bank ||
 * Law's bank becomes the Banque Royale and is given a new charter placing the lucrative note-issuing business more directly under the control of the Regent. p 554 ||
 * ~ 1719-1720 ||~ The Mississippi Bubble ||
 * The Mississippi Company had been set up to exploit the wealth of French colonies, especially in Louisiana. In 1719 it is also given a monopoly of trade with the East Indies and China and a speculative boom in the value of its shares ensues. The boom, combined with the over-issue of notes by the Banque Royale, leads to a drain of precious metals from France to London. Law's enemies persuade the Regent to dismiss him from his post as Minister of Finance, the bank stops payment and the boom collapses. The debacle sets back the development of banking in France by about 100 years. p 264,268,278,554-555 ||
 * ~ 1719-1720 ||~ The South Sea Bubble ||
 * Contemporary with the Mississippi Bubble a speculative boom takes place in the shares of the South Sea Company, originally set up to break the Spanish monopoly of trade with Central and South America, after it proposes to take over the National Debt. Numerous other companies are set up to take advantage of the speculative mania. The sudden collapse of the boom leads to changes in company law which affect the future development of banking in both Britain and America. p 264-266 ||
 * ~ 1722 ||~ Unsuccessful attempt to alleviate Ireland's chronic shortage of low-value coins ||
 * The lack of small money in Ireland has grown to such an extent that manufacturers are obliged to pay their employees in cards signed upon the back, to be exchanged afterwards for money. In August 1722 minting of copper halfpence and farthings for Ireland begins by William Wood in Bristol but ceases after protesters in Ireland demand that the country should have its own mint. Consequently the Irish poor are left to suffer for many years from their own promissory cards. p 246-247 ||
 * ~ 1722 ||~ Royal Prussian Seehandlung founded ||
 * The first German state bank is created for the purpose of stimulating foreign trade. p 566 ||
 * ~ 1723 ||~ First issue of notes by the Pennsylvania Land Bank ||
 * These are secured by mortgages on the property of the bank owners. p 461 ||
 * ~ 1727 ||~ The Royal Bank of Scotland is founded ||
 * The Royal Bank introduces a "cash-credit" system allowing certain applicants for loans to withdraw cash as required, interest being paid only on the amount withdrawn. This is copied by other banks in Scotland and then in England and is the origin of the //overdraft//. p 275-276 ||
 * ~ 1727 ||~ Tobacco notes become legal tender in Virginia ||
 * Certificates attesting to the quality and quantity of tobacco deposited in public warehouses circulate more conveniently than the actual leaf, already used as money for over a century, and these notes are made legal tender. p 458 ||
 * ~ 1729 ||~ Benjamin Franklin's //Modest Enquiry into the Nature and Necessity of a Paper Currency// ||
 * Following the publication of this work Franklin is awarded the contract for printing the Pennsylvania Land Bank's third issue of notes. p 461 ||
 * ~ 1741 ||~ British Parliament decides that the Boston Land Bank is illegal ||
 * The Land Bank or Manufactory Scheme is ruled to contravene the Bubble Act of 1720 which is retrospectively extended to cover the colonies. p 462 ||
 * ~ 1749-1751 ||~ Pelham reduces the burden of the British national debt ||
 * Henry Pelham, the British prime minister, takes advantage of low market rates of interest to reduce interest payments on the national debt from 4% to 3½% in 1749 and 3% in 1750, and replaces a whole series of annuities by a single 3% consolidated stock or //consols// in 1751. p 269-270 ||


 * ~ 1749-1751 ||~ Pelham reduces the burden of the British national debt ||
 * Henry Pelham, the British prime minister, takes advantage of low market rates of interest to reduce interest payments on the national debt from 4% to 3½% in 1749 and 3% in 1750, and replaces a whole series of annuities by a single 3% consolidated stock or //consols// in 1751. p 269-270 ||
 * ~ c. 1750- ||~ The Industrial Revolution in Britain ||
 * In the mid-eighteenth century, at the start of the Industrial Revolution there are barely a dozen banking houses in England and Wales outside the London area. p 285 ||
 * ~ 1752 ||~ Britain forbids New England colonies from issuing new bills of credit ||
 * In addition, Parliament insists that all outstanding issues be promptly redeemed at maturity. p 462 ||
 * ~ 1759 ||~ General Wolfe captures Quebec ||
 * During his campaign he complains about being hampered by lack of funds. Similarly inflation is blamed for the lack of funds which led to the defeat of General Braddock in 1755. Consequently the British government decides to increase taxation in America, thus spurring the Revolution. p 459-460 ||
 * ~ 1760 ||~ Wampum factory opened in New Jersey ||
 * Demand for wampum as currency, and later ornament, remains strong. In the factory steel drills are used to make the holes that are used for stringing the shells together. This increases output of wampum enormously causing inflation. The factory remains in production for 100 years. p 39-40,458,640 ||
 * ~ 1762 ||~ Barings Bank founded ||
 * When Barings goes bankrupt in 1995 it is Britain's oldest merchant bank. p 346 ||
 * ~ 1764 ||~ Britain forbids all its American colonies to issue paper money as legal tender ||
 * This punishes the colonies that had been careful not to over-issue paper money as well as those that had been irresponsible. The only exception is for strictly military purposes. "No law ... could be more equitable", wrote Adam Smith, "than the act of parliament so unjustly complained of in the colonies." (p 348 of the //Wealth of Nations//). Adam Smith was in favour of paper money but against it having the status of legal tender. p 463 ||
 * ~ 1765 ||~ Royal Giro and Loan Bank founded by Frederick the Great ||
 * This is Germany's first note issuing bank. It later becomes the Bank of Prussia and later still, the Reichsbank. p 566 ||
 * ~ 1766 ||~ Benjamin Franklin fails to persuade British parliament to allow use of paper money in America ||
 * While in London Franklin tries unsuccessfully to persuade Parliament of the case for a general issue of colonial paper money. p 461-462 ||
 * ~ 1768 ||~ Russia's first two public banks established ||
 * They are created by Catherine the Great to finance Russia's war with the Ottoman Empire (Turkey). p 553 ||
 * ~ 1770 ||~ London Clearing House created ||
 * The clearing house is set up by private bankers. Joint stock banks, country banks, and the Bank of England are not admitted until many years later. p 321-322 ||
 * ~ 1770 ||~ Rhode Island's paper money rendered worthless by hyperinflation ||
 * Many of the British colonies in North America have over-issued notes causing inflation but Rhode Island is the worst. p 461 ||
 * ~ 1771 ||~ The first of the German Landschaften created in Silesia ||
 * The Landschaften are state cooperatives which grant mortgages, and other credit based on land, for the improvement of agriculture. Other Landschaften are established in the 1770s and 1780s. p 566 ||
 * ~ 1772 ||~ Scotland has a nationwide banking network ||
 * By this time 31 banks are operating in Scotland with branches and agencies covering most of the country. Thus Scotland is the first country in the world to establish an almost nationwide system of branch banking. p 276 ||
 * ~ 1772 ||~ Scottish banking crisis ||
 * The Ayr Bank, which rashly issued large quantities of notes backed with the wealth, based on land, of its owners, collapses along with 13 private bankers. This confirms the more conservative practices of the older Scottish banks. p 277-278 ||
 * ~ 1775 ||~ First British building society formed ||
 * Richard Ketley, an inn proprietor in Birmingham, and a group of his customers and friends form a society for saving money for building and purchasing houses for their own occupation. p 326 ||
 * ~ 1775-1783 ||~ The American Revolution or War of Independence ||
 * The American Congress, and individual states. finance their war effort overwhelmingly by printing money. This eventually leads to hyperinflation rendering the //continentals// worthless - but the Revolution is successful. p 464-465 ||
 * ~ 1776 ||~ Adam Smith defends paper money ||
 * In his //Wealth of Nations// he draws attention to the benefits of paper money in stimulating business both in Scotland and in the American colonies. p 463 ||
 * ~ 1776-1793 ||~ Caisse d'Escompte, France's second public note-issuing bank, founded ||
 * This is the first to be established in Paris since the failure of John Law's venture. After 10 successful years it starts to grant too many loans to the government, accompanied by excessive note issues and is forced into liquidation. p 555 ||
 * ~ 1778 ||~ Savings bank established in Hamburg ||
 * This is one of the earliest in Europe and gives rise to a handful of similar banks in north Germany by the end of the eighteenth century. p 333,570 ||
 * ~ c. 1780-1810 ||~ Rapid spread of country banking in England and Wales ||
 * By 1810 the total number of licensed and unlicensed banks is probably over 800. In most cases their founders have strong ties with particular industries or trades and the banks meet the need of small workshops, mines etc. for working capital. Without these banks the Industrial Revolution would have been strangled in its infancy. p 286-291 ||
 * ~ 1780 ||~ Bank of Pennsylvania founded ||
 * This is the first American bank to be established since the declaration of independence from Britain. It is basically a temporary means of raising funds for the American army which is in a desperate financial situation. p 469 ||
 * ~ 1782 ||~ Bank of North America begins operations ||
 * It was granted a charter by Congress the previous year. It fulfils a wide range of banking functions and is a great commercial success. p 469 ||
 * ~ 1783 ||~ Unpaid soldiers prevented from looting the Bank of North America ||
 * This stimulates opposition to the bank, as much of the public sympathises with the soldiers, and the legality of the bank is later challenged by Pennsylvania's representatives. p 471 ||
 * ~ 1783 ||~ Act for the abolition of the British Treasury Tallies ||
 * The act lays down that the wooden tallies are to be abolished on the death of the last of the Exchequer Chamberlains operating the system. p 663 ||
 * ~ 1784 ||~ Bank of New York and Bank of Massachusetts both open ||
 * The Bank of New York is the oldest existing US bank (at the time of writing in 1996) p 469 ||
 * ~ 1785 ||~ Bank of America's Congressional charter is revoked ||
 * However the bank subsequently acquires a new charter from the state government of Delaware. p 471 ||
 * ~ 1786-1787 ||~ Shay's Rebellion in Massachusetts ||
 * Captain Shay leads a rebel force of debtors, disaffected farmers and ex-soldiers to try and secure debt relief, issues of paper money, and other reforms. The rebellion is put down. p 466 ||
 * ~ 1786 ||~ US Confederation Congress passes the Mint Act ||
 * The intention is to meet a currency shortage - but only a few tons of copper coins are minted. p 467 ||
 * ~ 1787-1817 ||~ Privately-issued tokens become common in Britain ||
 * By the end of the 18th century there is a severe shortage of copper and silver coins in Britain so that many firms have difficulty in obtaining enough currency to pay wages. This leads to a growth in payments in kind, use of foreign coins, and unofficial tokens. The token manufactures greatly expand the amount of currency available. p 292-296 ||
 * ~ 1789 ||~ The French Revolution ||
 * The revolutionary government seizes church lands and using them as security issues //assignats//, bonds carry 5% interest. However the interest is soon abandoned and the assignats become simply inconvertible, state-issued paper money notes. p 555 ||
 * ~ 1789 ||~ US Constitution gives Congress power over money creation ||
 * The States are not allowed to coin money, issue bills of credit or make anything except gold and silver legal tender. p 466 ||
 * ~ 1790 ||~ Schaaffenhausen founded in Cologne ||
 * Later this private bank becomes Germany's first joint-stock bank in 1848. p 566 ||
 * ~ 1791 ||~ Bank of the United States receives a 21 year charter ||
 * Because of opposition to the bank and fears that it would contravene the Constitution, Washington is going to use his veto but is persuaded not to by Alexander Hamilton. p 472 ||
 * ~ 1792-1815 ||~ French Revolutionary and Napoleonic Wars ||
 * The pressures of war cause many changes in the financial systems of both France and Britain. p 297-298,556 ||
 * ~ 1792 ||~ US Coinage Act ||
 * The Dollar is adopted as the unit of account, based on a bimetallic standard, subdivided into 100 cents. Foreign coins are supposed to lose their status as legal tender within 3 years of the US coins coming into circulation. p 467-468 ||
 * ~ 1793-1801 ||~ Britain sends more than £15 million to its allies ||
 * This is to support them in the war against France. p 297 ||
 * ~ 1793 ||~ The Bank Indemnity Act ||
 * This act gives the directors of the Bank of England legal immunity for loans to the government. This enables the British government to borrow much larger sums for the war against France. p 297-298 ||
 * ~ 1793 ||~ Friendly Societies Act ||
 * Societies for encouraging saving by the poor are made exempt from the provisions of the Bubble Act. The importance of the protection given by the Friendly Societies Act increases after the passage of the Anti-Combination Acts of 1799 and 1800 which are intended to prevent the development of subversive movements in Britain inspired by the French Revolution. p 322-323 ||
 * ~ 1794 ||~ US Mint Starts Operations ||
 * The Mint in Philadelphia is the first purpose-built structure authorized by the United States. p 467 ||
 * ~ 1795 ||~ Hyperinflation in France ||
 * The total nominal value of the assignats in circulation reaches 20 billion livres. Riots in Paris pave the way for the rise of Napoleon. p 556 ||
 * ~ 1796 ||~ Caisse des Comptes Courants founded ||
 * This short-lived bank is absorbed by the Bank of France in 1800. p 555 ||
 * ~ 1796 ||~ France replaces the assignats by a gold-based currency ||
 * This has the effect of drawing bullion back from Britain. p 298 ||
 * ~ 1797 ||~ Matthew Boulton given contract for minting copper coins ||
 * Because tokens had become common the British government decides that the free market could probably supply copper currency better than the Royal Mint. The initial contract is for 50 tons of two-penny and one-penny pieces. Boulton's partnership with James Watt results in the use of steam-powered machinery for producing 4,200 tons of copper coins eventually. p 293-294 ||
 * ~ 1797 ||~ Bank of England notes are made inconvertible ||
 * The provisions of the Bank Restriction Act are initially expected to be of very short duration but it is 24 years before convertibility is restored. p 298 ||
 * ~ 1797 ||~ Spanish dollars are overstamped for circulation in Britain ||
 * As a result of a desperate shortage of silver coins the Bank of England issues altered foreign coins from its reserves. Half a million pounds worth of Spanish dollars issued by King Charles IV are overstamped with a small engraving of George III. However the issue fails because overstamping is also applied unofficially to the plentiful supplies of light or base Spanish dollars. p 294 ||
 * ~ 1797 ||~ US extends legal tender status to Spanish dollars indefinitely ||
 * Because of a slight over-valuation of silver little gold is brought to the Mint. Also users hold on to the new silver coins preferring to pass on the older, duller Spanish ones. Consequently there is a shortage of both US gold and silver coins. p 468 ||
 * ~ 1797 ||~ Caisse d'Escompte founded ||
 * This bank is absorbed by the Bank of France in 1803. p 555 ||
 * ~ 1798 ||~ The Rothschilds expand into Britain ||
 * The Rothschilds banking house originated in medieval Frankfurt on Main. In 1798 Nathan Rothschild is sent to Manchester to deal in the cotton industry. His banking operations grow rapidly during the Napoleonic Wars, making full use of his family's international network of couriers. p 347 ||
 * ~ 1799 ||~ William Pitt introduces income tax ||
 * This new tax raises considerable sums. During the war the British prime minister also increases revenue by broadening the range of indirect taxes as much as possible. p 298 ||
 * ~ c. 1799 ||~ Use of tokens, foreign coins etc. in Britain probably exceeds that of official coins ||
 * By the turn of the century the total supply and velocity of circulation of tokens, foreign coins, and other substitutes probably exceeds that of official coins of the realm. Some of the chief engravers at the Royal Mint make a good profit from selling new designs (not the official ones) to the token manufacturers. p 293 ||


 * ~ c. 1780-1810 ||~ Rapid spread of country banking in England and Wales ||
 * By 1810 the total number of licensed and unlicensed banks is probably over 800. In most cases their founders have strong ties with particular industries or trades and the banks meet the need of small workshops, mines etc. for working capital. Without these banks the Industrial Revolution would have been strangled in its infancy. p 286-291 ||
 * ~ 1787-1817 ||~ Privately-issued tokens become common in Britain ||
 * By the end of the 18th century there is a severe shortage of copper and silver coins in Britain so that many firms have difficulty in obtaining enough currency to pay wages. This leads to a growth in payments in kind, use of foreign coins, and unofficial tokens. The token manufactures greatly expand the amount of currency available. p 292-296 ||
 * ~ 1792-1815 ||~ French Revolutionary and Napoleonic Wars ||
 * The pressures of war cause many changes in the financial systems of both France and Britain. p 297-298,556 ||
 * ~ 1793-1801 ||~ Britain sends more than £15 million to its allies ||
 * This is to support them in the war against France. p 297 ||
 * ~ c. 1800-1860 ||~ Five hundred fold depreciation of the cowrie in Uganda ||
 * When cowrie shells are first introduced to Uganda at the end of the eighteenth century two are sufficient to purchase a woman. Thereafter the wholesale importation of cowries causes inflation with the result that by 1860 one thousand cowries are needed for such a purchase. p 35,640 ||
 * ~ 1800 ||~ The Bank of France is founded ||
 * France gains a national bank over a century after England, Holland and Sweden. p 556 ||
 * ~ 1800 ||~ Number of banks in the US reaches 29 ||
 * Their number has increased from just 4 in 1790, despite fears that the Bank of the United States would enjoy monopoly powers preventing the rise of new banks. p 473 ||
 * ~ 1802 ||~ Barings buys 2,220 shares in the Bank of the United States ||
 * The number of British shareholders grows in the years leading up to the date when the bank's charter is due for renewal. p 473 ||
 * ~ 1803 ||~ The Louisiana Purchase doubles the size of the United States ||
 * Napoleon, being short of cash, offers to sell Louisiana to the United States for 15 million dollars. Two British banks, Barings and Hopes, agree to lend the money to the US government and, despite the wars, transfer it to Napoleon. p 346 ||
 * ~ 1804 ||~ Full-weight Spanish coins are re-issued by the Bank of England ||
 * Matthew Boulton is employed to erase completely the existing design on full-weight Spanish coins and stamp them as //Bank of England Five Shilling Dollars//. p 294 ||
 * ~ 1804 ||~ Bank of England issues token silver coins ||
 * These are light-weight, as opposed to full-bodied coins, for 3s. and for 1s. 6d. p 294 ||
 * ~ 1806 ||~ President Jefferson suspends the minting of silver coins ||
 * This is because of the tendency of these new coins to disappear from circulation, as an unintended consequence of the US 1792 Coinage Act. p 468 ||
 * ~ 1806 ||~ Bank of Bengal founded ||
 * For hundreds of years before the creation of the first formal, western-style banks, financial services have been provided in India by castes such as the Multanis, Marwari and Pathans who provide credit, collect deposits and arrange trading deals through bills of exchange or //hundi//. The Bank of Bengal is the first of the so-called //presidential banks// to be established during British rule to supplement the internal money supply of India. p 620-622 ||
 * ~ 1809-1831 ||~ Ohio State government issues paper warrants as currency ||
 * Warrants for 5, 10 and 20 dollars are used as currency in Ohio because of the shortage of coins. p 468 ||
 * ~ 1810 ||~ Royal Mint equipped with steam-powered machinery ||
 * Matthew Boulton who was responsible for constructing the Mint's new manufactory died a year before its completion. Boulton had previously supplied steam-powered machinery to mints in Russia, Spain, Denmark, Mexico and India. p 294 ||
 * ~ 1810 ||~ Start of the savings bank movement in Britain ||
 * Although there had been earlier examples of savings banks in Britain and on the continent, the Rothwell Savings Bank established by Henry Duncan as a bank for the poor becomes widely imitated not only in Britain but also France and Holland. p 332-333 ||
 * ~ 1810 ||~ Bullion Report by the House of Commons Select Committee ||
 * The Report from the Select Committee of the House of Commons on the High Price of Bullion blames the inflation taking place during the Napoleonic Wars on the creation of an excessive amount of credit, principally by the Bank of England and recommends that the Bank's notes be made fully convertible after two years, whether or not the war is over. p 223,299-303 ||
 * ~ 1811 ||~ Parliament rejects the proposal to restore convertibility of notes ||
 * The government argues successfully that to restore convertibility would imperil the British war effort. p 302 ||
 * ~ 1811 ||~ Bank of the United States' charter is not renewed ||
 * Public opposition to British shareholders, suspicion that the bank is exceeding its constitutional powers, and opposition from those who believe that banking should be controlled by the states not the Federal government, are responsible for the demise of the bank. p 473-474 ||
 * ~ 1812-1814 ||~ War between the United States and Britain ||
 * Inflation takes off in the United States. This is only partly because of the war. Without the restraining hand of the Bank of the United States there is a huge increase in the number of banks issuing notes with very little specie backing. This experience swings opinion in favour of creating a new national bank. p 474 ||
 * ~ 1816-1818 ||~ Prussia abolishes all internal customs ||
 * Other German states, with varying speeds, follow its example prior to the formation of a full customs union (Zollverein) between nearly all of them in 1834. p 567 ||
 * ~ 1816 ||~ //Second// Bank of the United States founded ||
 * The bank begins the task of restoring the convertibility of paper notes. It also restrains other banks from making excessive issues of notes. p 474-476 ||
 * ~ 1816 ||~ Privy Council recommends establishment of the gold standard ||
 * This proposal is accepted and, in accordance with a related proposal, a new British one pound coin made of gold, the //sovereign//, is produced. p 303 ||
 * ~ 1817 ||~ Act to suppress tokens passed by the British Parliament ||
 * An earlier bill in 1812 was unsuccessful. The 1817 Act does make certain exemptions, e.g. tokens issued by Poor Law unions are allowed until 1821 by which time the supply of official coinage has increased sufficiently to make tokens redundant. p 296 ||
 * ~ 1817-1852 ||~ Bank of France discount rate remains almost unchanged ||
 * During this time it is fixed at 4% except during the revolutionary troubles of 1848. p 558 ||
 * ~ 1818-1819 ||~ Various US states levy taxes on the branches of the Second Bank ||
 * The //Second// Bank of the United States refuses to pay these taxes and wins its case in the Supreme Court. p 476-477 ||
 * ~ 1820 ||~ Last British silver pennies are minted ||
 * This is nearly 1,100 years after the first English silver pennies, though silver continues to be used for higher value coins for another 100 years. p 207 ||
 * ~ 1821 ||~ Restoration of convertibility of Bank of England notes ||
 * This is two years earlier than the target date set by the 1819 Act for the Resumption of Cash Payments and completes the establishment of the gold standard in practice as well as in law. p 303 ||
 * ~ 1822 ||~ The Société Général founded in Belgium ||
 * The bank plays a vigorous role in Belgium's industrial revolution, the first of any country on the European mainland. p 558 ||
 * ~ 1824 ||~ Parliament rejects decimalization of British currency ||
 * Further proposals made in 1853, 1857 and 1918 are also rejected before the Halsbury Report of 1963 is accepted and put into effect in 1971. p 442 ||
 * ~ 1824 ||~ Illinois declares all branches of the Second Bank illegal ||
 * This decision is overturned by the US Supreme Court. p 477 ||
 * ~ 1824 ||~ Clearing system developed by Boston banks ||
 * The Suffolk Bank of Boston, in co-operation with 6 other local banks, begins the development of a system of clearing inter-bank accounts. p 476 ||
 * ~ 1825-1826 ||~ Banking crisis in England ||
 * During the year 60 banks fail. To alleviate the liquidity shortage caused by the financial panic the Bank of England issues one pound notes and the Royal Mint steps up the production of sovereigns. p 306 ||
 * ~ 1826 ||~ Banking reforms introduced in England and Wales ||
 * The bank crisis is blamed on small, weak country banks issuing too many small denomination notes. Parliament bans the issue of notes of less than £5 in England and Wales but not, after protests, in Scotland. Parliament also allows the creation of new joint-stock banks outside a 65 mile radius of central London and also permits the Bank of England to set up regional branches. p 307-308 ||
 * ~ 1826 ||~ Sir Walter Scott defends small Scottish banknotes ||
 * Under the pseudonym of Malchai Malagrowther, the novelist Sir Walter Scott writes a series of letters for the //Edinburgh Weekly Journal// demonstrating the superiority of the Scottish banking system and the disastrous consequences that would follow the abolition of small denomination notes. Because of the protests by Scott and others parliament decides that the ban on such notes should apply in Scotland. p 308 ||
 * ~ 1826 ||~ Death of the last British Exchequer Chamberlain ||
 * Upon his death the Treasury Tallies are abolished in accordance with the Act of 1783. Later the redundant tallies are returned to the House of Commons, an action that has disastrous consequences in 1834. p 663 ||
 * ~ 1828 ||~ Andrew Jackson elected President of the USA ||
 * Jackson has been suspicious of banks ever since he read the history of the South Sea Bubble. p 476 ||
 * ~ 1829 ||~ New York State passes Safety Fund Act ||
 * This tightens up conditions for chartering banks and contains provisions foreshadowing later developments in deposit insurance. p 476 ||


 * ~ c. 1800-1860 ||~ Five hundred fold depreciation of the cowrie in Uganda ||
 * When cowrie shells are first introduced to Uganda at the end of the eighteenth century two are sufficient to purchase a woman. Thereafter the wholesale importation of cowries causes inflation with the result that by 1860 one thousand cowries are needed for such a purchase. p 35,640 ||
 * ~ 1832 ||~ Capital punishment for forging banknotes abolished in Britain ||
 * The maximum penalty for forgery is reduced from death to transportation for life (e.g. exile to Australia). p 307-308 ||
 * ~ 1832 ||~ President Jackson vetoes early renewal of the //Second// Bank's charter ||
 * In the presidential election the same year Jackson defeats Henry Clay, a supporter of the Second Bank. The result makes the Bank's demise certain. p 477 ||
 * ~ 1833-1834 ||~ Robert Owen's trade unions issue //Labour Notes// in Britain ||
 * The National Labour Exchange created by Robert Owen and his followers issues paper money in the form of //labour notes// to the value of one, two or five hours redeemable at designated stores but the experiment comes to an end with the failure of the Grand National Trades Union. p 322,324 ||
 * ~ 1833 ||~ Bank of England notes are made legal tender in England and Wales ||
 * The Bank Charter Act does this in order to discourage other banks from requesting that Bank of England notes be exchanged for gold at the hint of trouble. Bills of exchange up to 3 months are removed from the ambit of the usury laws by the same act. p 309,310 ||
 * ~ 1833 ||~ Jackson removes US government deposits from the Second Bank ||
 * Instead the deposits are placed in selected State Banks which come to be known as //pet banks//. p 477 ||
 * ~ 1834 ||~ Houses of Parliament destroyed by burning tallies ||
 * After the death of the last Exchequer Chamberlain in 1826 the redundant tallies are stored in the House of Commons. In 1834 to save space and economize on fuel the tallies are thrown into the heating stoves but they burn so fiercely that the fire spreads and destroys the Houses of Parliament. p 663 ||
 * ~ 1834 ||~ The Zollverein of the German States ||
 * A customs union is formed as a first step in unifying the currencies, weights and measures of the previously independent 39 German states. p 443,566-567 ||
 * ~ 1834 ||~ US Coinage Act ||
 * This makes a slight reduction in the value of silver relative to gold in order to encourage more gold to be brought to the mint. However, it hastens the disappearance of much of the remaining silver in circulation. p 481 ||
 * ~ 1835 ||~ East India Company authorized to issue rupees ||
 * Up to this time India has had 25 varieties of indigenous rupees but after the East India Company is authorized to issue its own rupee it comes to be accepted as the standard in India and abroad. At the same time the silver rupee is given legal tender status but gold coins lose that privilege. p 622 ||
 * ~ 1836 ||~ President Jackson issues his //Specie Circular// ||
 * The circular lays down that future purchases of government land must be paid in gold or silver, or their strict equivalent, rather than in local notes or promises to pay. This has the effect of swelling the US government's coffers with specie. p 479 ||
 * ~ 1836 ||~ Number of German savings banks reaches 280 ||
 * The rate of growth in their numbers increased after the end of the Napoleonic Wars in 1815. p 570 ||
 * ~ 1837 ||~ US States acquire legal power to issue paper money ||
 * This reverses attempts to uphold the constitutional denial of the power of the states to //emit bills//. p 480 ||
 * ~ 1837 ||~ //Free Banking// movement triumphs in Massachusetts ||
 * The //free banking// movement claims that citizens have a right to set up banks rather than being dependent on a privilege granted by the state. The State of Massachusetts passes an act in accordance with these principles. p 480 ||
 * ~ 1837 ||~ US banking crisis ||
 * The uncontrolled, chaotic expansion of banking in the US is slowed, then partly reversed by a financial crisis in which every bank is forced to suspend specie payment of notes. The crisis leads to a depression in the economy which lasts until 1843. p 480,483-484 ||
 * ~ 1838 ||~ Dresden convention fixes the exchange rate between the thaler and gulden ||
 * The Prussian thaler is used mainly in northern Germany and the gulden in the south. A fixed rate of 4:7 is adopted. p 567 ||
 * ~ 1838 ||~ Caisse Général du Commerce et de l'Industrie founded ||
 * The bank is created to support French industry and commerce but it has only a troubled, ten year existence. p 559 ||
 * ~ 1840 ||~ US establishes an independent Treasury ||
 * Its powers are more firmly established by a later act in 1846. Without a central bank the US Treasury has to carry out its own banking operations, relying as far as possible on specie for government payments and receipts. p 479 ||
 * ~ 1840 ||~ Bank of Bombay founded ||
 * This is the second of the //presidential banks// to be established during British rule to supplement the internal money supply of India. p 622 ||
 * ~ c. 1840-1844 ||~ Currency School versus Banking School ||
 * With hundreds of banks issuing notes in Britain in uncoordinated fashion the value of the currency is difficult to control. A controversy arises between the //currency school// which believes that gold and Bank of England notes are the only real money and the //banking school// which believes that notes are just one among many forms of money. p 310-313 ||
 * ~ 1841 ||~ The //Second// Bank of the United States crashes ||
 * By this time it is simply a private bank and no longer a national institution. When it ran into difficulties during the 1837 crisis it was still the largest bank in the world, but it finally crashes in 1841. p 484 ||
 * ~ 1842 ||~ Oriental Bank founded in India ||
 * This is an //exchange bank// established for financing external trade and foreign exchange, from which the //presidency banks// are debarred by their charters. p 622 ||
 * ~ 1843 ||~ Chartered Bank founded in India ||
 * This is another //exchange bank// for financing external trade and foreign exchange. p 622 ||
 * ~ 1843 ||~ Bank of Madras founded ||
 * This is the third of the //presidential banks// to be established during British rule to supplement the internal money supply of India. p 622 ||
 * ~ 1844 ||~ Bank Charter Act passed in Britain ||
 * This Act combines most of the rules demanded by the //currency school// with just a few of the discretionary powers demanded by the //banking school// for commercial banks, but these powers are mostly grabbed by the Bank of England. p 313-315 ||
 * ~ 1846 ||~ Royal Giro and Loan Bank becomes the Bank of Prussia ||
 * It was founded in 1765 by Frederick the Great and was Germany's first note-issuing bank. Later, in 1875, it becomes the Reichsbank. p 566 ||
 * ~ 1846 ||~ Germany's first rural credit co-operatives are founded ||
 * Friedrich Wilhelm Raiffeisen starts the movement. p 570 ||
 * ~ 1846 ||~ Minimum legal banknote size in France still too high for most purposes ||
 * Up until 1846 the minimum legal denomination is 250 francs, or more than a month's wages for the average worker. In the following years it is gradually reduced. p 557 ||
 * ~ 1847-1848 ||~ Numerous local banks fail in France ||
 * Only in Paris has the Bank of France enjoyed a monopoly of note issues since its foundation. The rest of the country is largely dependent on the note issues and bill discounting of local banks, many of which are weak. p 556 ||
 * ~ 1847 ||~ The Woolwich, Britain's first **//permanent//** building society, is registered ||
 * Previous building societies were temporary associations which terminated when all members had purchased houses. The Woolwich, which was actually founded a few years before its official registration, is the first permanent building society and thereafter permanent societies quickly become the norm. p 327 ||
 * ~ 1847 ||~ Railway Mania in Britain reaches a peak ||
 * This increases the need for liquidity and strengthens feelings that the 1844 Bank Charter Act is far too restrictive. One of the reasons that railways are attractive to investors is that before limited liability becomes more generally permitted, shareholders are liable for the debts of their companies without limit, except in cases where the company has a royal charter or, as in the case of many railway companies, is specifically authorized by act of parliament. p 317-317 ||
 * ~ 1848 ||~ Bank of France is given a nationwide monopoly of note issues ||
 * The national bank is given a monopoly of note issuing to fill the gap left by the failure of numerous local banks. The Bank of France also begins to develop a large network of branches in different parts of the country. p 556 ||
 * ~ 1848 ||~ Schaaffenhausen is reconstituted as Germany's first joint-stock bank ||
 * The banking house of Schaaffenhausen in Cologne runs into difficulties and is reconstituted as a joint-stock company with the help of the Prussian state which acts in order to save the bank's industrial customers from the consequences of its failure. p 568 ||
 * ~ 1848 ||~ Gold Rush in California ||
 * The discovery of gold in California leads in the following decade to a massive increase in the production of gold coins by the mint with the result that in practice the US moves away from bimetallism towards a gold standard. p 481 ||
 * ~ 1850-1914 ||~ Huge amounts of capital are exported from Britain ||
 * Huge amounts of British capital are invested abroad, especially after 1890, in the United States, parts of the British Empire, and Argentina. The total reaches billions of pounds. Britain's later economic problems may be partly due to the neglect of British industry by the banks during this period. p 348-352 ||
 * ~ 1850 ||~ Number of German savings banks reaches 1,200 ||
 * The pace of savings bank formation has accelerated since the mid-1830s. p 570 ||
 * ~ 1850 ||~ Germany's first industrial credit co-operatives are founded ||
 * Herman Schultz-Delitzsch inspires the movement. p 570 ||
 * ~ 1850 ||~ National Bank of Belgium founded ||
 * Later, in 1882, the National Bank of Belgium serves as a model for the Bank of Japan. p 582 ||
 * ~ 1851 ||~ Gold discovered in Australia ||
 * Along with the discovery in California 3 years earlier this leads to a huge expansion in the world's supplies of gold for money. p 482 ||
 * ~ 1852-1872 ||~ New French banks support economic development ||
 * The Crédit Mobilier, founded in 1852, is the first effective major French bank to be established specifically for providing funds for industry and infrastructure. It is followed by many other new banks in the next two decades. Despite the failure of the Crédit Mobilier in 1867 these banks channel savings into essential investments in transport, communications, agriculture and industry. p 559 ||
 * ~ 1853 ||~ Association for the Prevention of Counterfeiting founded in the USA ||
 * During the 1850s many thousands of different types of banknotes, both genuine and counterfeit, are in circulation causing considerable problems for bankers and traders. p 481 ||
 * ~ 1853 ||~ US Subsidiary Coinage Act ||
 * The silver content of half-dollars, quarters and dimes is reduced by about 7% making it no longer worthwhile to sell them to silver metal dealers. Therefore the new coins remain in circulation. p 481 ||
 * ~ 1856 ||~ The Mercantile Bank becomes the first note-issuing bank in Singapore and Malaya ||
 * This London-registered bank expands from its Indian base to Malaya and Singapore. p 626 ||
 * ~ 1857 ||~ The Münzverein, German coinage union ||
 * Different German states use different currencies, e.g. the thaler in the north and the gulden in the south. The Münzverein is a step towards the wider acceptance of different currencies. p 566-567 ||
 * ~ 1857 ||~ US removes legal tender status from all foreign coins ||
 * By this time coins are merely the small change of commerce. p 468,481 ||
 * ~ 1857 ||~ World-wide banking crisis starts in the US ||
 * In the month of October 1,415 US banks are forced to suspend specie payments. Because of huge European, especially British, investment in the US the effects are felt on the other side of the Atlantic. In Germany many of the new idustrial banks founded in the early 1850s fail. However recovery from the crisis is rapid. p 484-485,568 ||


 * ~ c. 1800-1860 ||~ Five hundred fold depreciation of the cowrie in Uganda ||
 * When cowrie shells are first introduced to Uganda at the end of the eighteenth century two are sufficient to purchase a woman. Thereafter the wholesale importation of cowries causes inflation with the result that by 1860 one thousand cowries are needed for such a purchase. p 35,640 ||
 * ~ 1850-1914 ||~ Huge amounts of capital are exported from Britain ||
 * Huge amounts of British capital are invested abroad, especially after 1890, in the United States, parts of the British Empire, and Argentina. The total reaches billions of pounds. Britain's later economic problems may be partly due to the neglect of British industry by the banks during this period. p 348-352 ||
 * ~ 1852-1872 ||~ New French banks support economic development ||
 * The Crédit Mobilier, founded in 1852, is the first effective major French bank to be established specifically for providing funds for industry and infrastructure. It is followed by many other new banks in the next two decades. Despite the failure of the Crédit Mobilier in 1867 these banks channel savings into essential investments in transport, communications, agriculture and industry. p 559 ||
 * ~ 1860-1921 ||~ Number of banks in the US increases by over 19 times ||
 * During the same period bank numbers fall in other advanced countries but in the US a peak of nearly 30,000 is reached in 1921. p 490-491 ||
 * ~ 1860 ||~ Crédit Agricole founded ||
 * Its primary function is the supply of credit for French agriculture. The Crédit Agricole develops into one of the world's largest banks. (During the early 1980s it was the largest, and in 1991 the sixth largest). p 560 ||
 * ~ 1860 ||~ The Russian State Bank established ||
 * Two public banks had been established by Catherine the Great in 1768 to finance her wars with the Ottoman Empire (Turkey), but in 1860 a proper state bank with wider functions is belatedly established. p 553 ||
 * ~ 1861-1865 ||~ The US Civil War ||
 * The Confederacy finances its war effort mainly by printing money. In addition to the Confederate notes, the States, railway, insurance and other companies also issue notes. The resulting hyperinflation renders Confederate paper worthless. By comparison inflation in the North is relatively moderate as the Union government raises very substantial sums of money by taxation and borrowing. p 485-488 ||
 * ~ 1861 ||~ US Congress suspends convertibility of notes into specie ||
 * Priority in the use of gold and silver is given to government purposes as a result of the war. p 486 ||
 * ~ 1861 ||~ Post Office Savings Bank founded in Britain ||
 * The widespread geographic coverage of the post offices and their long opening hours makes them very convenient as savings bank branches. The government too gains since the savings are under the control of the Treasury and come to provide Gladstone's government with large funds at a low rate of interest. p 336-337 ||
 * ~ 1862 ||~ US Legal Tender Act and the issue of //Greenbacks// ||
 * The United States Treasury starts issuing notes that are not convertible into silver or gold but are legal tender for all purposes except payment of customs duties and interest on government securities. p 488-489 ||
 * ~ 1862 ||~ Tax placed on US state bank notes ||
 * The rate is set at 2%. p 489 ||
 * ~ 1864 ||~ US National Bank Act ||
 * This amends and expands the provisions of the Currency Act of the previous year. Any group of five or more persons are allowed to set up a bank, subject to certain minimum capital requirements. As these banks are authorized by the Federal, not the State governments, they are known as //national banks//. To secure the privilege of note issue they have to buy government bonds and deposit them with the Comptroller of the Currency. p 489 ||
 * ~ 1865-1926 ||~ The Latin Monetary Union ||
 * This comprises France, Italy, Belgium, Switzerland, and later Greece. The gold and silver coins of each country are legal tender throughout the union. The union has faded away by the 1920s before its formal ending. p 443,492-493,557 ||
 * ~ 1865 ||~ French law on cheques simplified ||
 * French businesses have tended to prefer notes to bank deposits and cheques. The law is simplified to encourage greater use of cheques. p 557 ||
 * ~ 1865 ||~ Hong Kong and Shanghai Bank founded ||
 * Ever since it has been the main bank of issue in Hong Kong. In the 1980s it was still responsible for about 80% of the colony's note circulation (the other 20% being supplied by the Chartered Bank) and by 1990 the Hong Kong Banking Group is the 13th largest in the world. p 626-627 ||
 * ~ 1865 ||~ US Contraction Act ||
 * By the end of the Civil War the //Greenbacks// are only worth half as much in gold as their nominal value. Under the terms of this act the government begins to withdraw them from circulation. p 494 ||
 * ~ 1866 ||~ Tax on US state bank notes is raised to 10% ||
 * The state bank notes are taxed out of existence and replaced by the //national bank notes// which are of uniform design, apart from the name of the particular bank. Despite the demise of their notes the tax does not lead to the disappearance of the state banks. p 489 ||
 * ~ 1867 ||~ International Monetary Conference in Paris ||
 * An attempt is made to widen the area of common currencies based on French gold and silver 10 and 5 franc coins. The US, being on a bimetallic standard, sends representatives. p 493 ||
 * ~ 1867 ||~ Singapore makes dollars from Hong Kong, Mexico, Bolivia and Peru legal tender ||
 * In the British colonies of Malaya and Singapore the official currency is the Indian rupee but the general public keep their accounts and make most of their payments, including taxes, in dollars and cents. Therefore in 1867 the public's preferences are recognised when legal tender status is given to various foreign coins. p 625 ||
 * ~ 1868 ||~ US halts withdrawal of the //Greenbacks// ||
 * Their withdrawal was exacerbating a depression in the economy. In the following years some increases in Greenback circulation are made. p 494 ||
 * ~ 1868 ||~ Meiji restoration in Japan ||
 * Japan's isolationist policy is ended. As a result the few pre-Meiji banking organisations set up by the Zaibatsu family groups prove completely inadequate to meet the needs of liberalized trade. p 581-582 ||
 * ~ 1870-1893 ||~ Plentiful silver supplies cause fall in value of Indian and other Asian currencies ||
 * After 1870 there is a vast increase in the amount of silver coming on to world markets because of new mines and the demonetization of silver as Germany, Scandinavia and other countries switch to the gold standard. As a result the undebased silver coinage of India, and the currencies of China, Japan and south east Asia, countries comprising half the world's population, suffer an unprecedented fall in value. p 622 ||
 * ~ 1870-1872 ||~ Huge increase in the number of German joint-stock banks ||
 * No fewer than 107 are founded in this period. p 569 ||
 * ~ 1870-1871 ||~ Franco - Prussian War ||
 * The victorious Germans force France to pay a huge indemnity of 5 billion francs. The money is raised easily by a loan which is more than 10 times oversubscribed. This experience partly explains French reliance on borrowing in preference to taxation in the First World War and French insistence on German reparations afterwards. p 561 ||
 * ~ 1871 ||~ Germany becomes a united country ||
 * The German states unite and adopt the Mark as their common currency and base it on the gold standard. p 356,567-568 ||
 * ~ 1871 ||~ Japanese Currency Act ||
 * A national mint is established at Osaka and the decimal system of yen and sen is introduced. p 582 ||
 * ~ 1872 ||~ Japanese National Bank Act ||
 * American rules serve as a model for Japanese commercial banks. p 582 ||
 * ~ 1872 ||~ Paris Clearing House created ||
 * This is over 100 years after the creation of the London Bankers' Clearing House. The backwardness of French banking prior to the second half of the 19th century has retarded the country's economic development. p 559 ||
 * ~ 1873-1924 ||~ The Scandinavian Monetary Union ||
 * Denmark, Sweden and Norway form a monetary union similar to the Latin one but with gold as the standard for their currency. p 356,443 ||
 * ~ 1873-1886 ||~ The //Great Depression// in Britain ||
 * The British economy is in decline relative to those of the US and Germany. One effect of the so-called depression is to cause doubts about the merits of the gold standard. p 353,493 ||
 * ~ 1873 ||~ Dai-Ichi Bank founded in Japan ||
 * The Dai-Ichi Bank is set up by the government with the support of some of the larger Zaibatsu banks. It is the first bank to be created under the terms of the 1872 Act. p 582 ||
 * ~ 1873 ||~ US Coinage Act ||
 * The silver dollar ceases to be the standard of value. Thus the US is virtually on the gold standard, in practice if not in law. p 494 ||
 * ~ 1873 ||~ Bank panic in the US and Germany ||
 * Lacking a central bank or lender of last resort able and willing to supply sufficient liquidity to quell crises in their early stages the US proves prone to bank panics. As in 1857 the panic spreads across the Atlantic and causes many bank failures in Germany. p 498-499 ||
 * ~ 1874 ||~ Singapore makes the Japanese yen and US dollar legal tender ||
 * This is in addition to the other foreign coins granted legal tender status in 1867. p 626 ||
 * ~ 1875 ||~ Bank of Prussia becomes the German Reichsbank ||
 * On becoming the national bank of the whole of Germany it absorbs and replaces the note issues of about 30 other state banks with its own notes. p 443,567-568 ||
 * ~ 1875 ||~ Scottish Institute of Bankers founded ||
 * This is the world's first bankers' institute. In the last couple of decades of the 19th century many trained young bankers from Britain, especially from Scotland, take up positions in overseas banks. p 360 ||
 * ~ 1875 ||~ Greenback Party formed in the US ||
 * It aims to at least secure and preferably increase //Greenback// circulation. p 494 ||
 * ~ 1875 ||~ US Resumption Act ||
 * This is intended to restore the convertibility of banknotes into gold. Full redemption is promised by 1 January 1879. p 494 ||
 * ~ 1876 ||~ Canadian Indian Act bans the potlatch ||
 * The potlatch, a ritualized form of barter involving competitive gift exchange that is widely used by various Indian tribes, is banned by the Canadian government. p 11 ||
 * ~ 1876 ||~ Japanese Bank Act revised ||
 * The regulations are altered to make them more appropriate for Japanese conditions. This leads to a surge in the formation of new banks. p 582 ||
 * ~ 1876 ||~ Mistsui Bank founded in Japan ||
 * The new bank is based on the exchange bureau run by the Mitsui family as part of their Zaibatsu (family-based) trading empire. p 583 ||
 * ~ 1878 ||~ Greenback Party returns 14 members to Congress ||
 * A compromise between the Party and its opponents fixes the Greenback circulation at its existing level, halting the previous trend to scarcer, dearer money. p 494 ||
 * ~ 1878 ||~ US Bland-Allison Act ||
 * The silver lobby pushes through this act forcing the US Treasury to buy between $2 million and $4 million of silver each month for coinage and fixes the relative prices the mint pays for gold and silver. p 495 ||
 * ~ 1878 ||~ France abandons bimetallism and in practice adopts the gold standard ||
 * By the end of the 1870s the gold standard has become an international standard with London as the world's main financial centre. p 356 ||
 * ~ 1879 ||~ Institute of Bankers (England and Wales) founded ||
 * This is 4 years after its Scottish counterpart. Soon there is a brain-drain of young bankers from Britain to other parts of the world. p 360 ||
 * ~ 1879 ||~ //Limping bimetallism// in the Latin Monetary Union ||
 * Vast increases in the world's supplies of first silver and later gold unsettle the Latin Union's bimetallic policies and only gold coins are universally accepted throughout the Union. p 493 ||
 * ~ 1879 ||~ Number of Japanese banks reaches 153 ||
 * The growth in numbers is a result of the 1876 Act. p 582 ||


 * ~ 1850-1914 ||~ Huge amounts of capital are exported from Britain ||
 * Huge amounts of British capital are invested abroad, especially after 1890, in the United States, parts of the British Empire, and Argentina. The total reaches billions of pounds. Britain's later economic problems may be partly due to the neglect of British industry by the banks during this period. p 348-352 ||
 * ~ 1860-1921 ||~ Number of banks in the US increases by over 19 times ||
 * During the same period bank numbers fall in other advanced countries but in the US a peak of nearly 30,000 is reached in 1921. p 490-491 ||
 * ~ 1865-1926 ||~ The Latin Monetary Union ||
 * This comprises France, Italy, Belgium, Switzerland, and later Greece. The gold and silver coins of each country are legal tender throughout the union. The union has faded away by the 1920s before its formal ending. p 443,492-493,557 ||
 * ~ 1870-1893 ||~ Plentiful silver supplies cause fall in value of Indian and other Asian currencies ||
 * After 1870 there is a vast increase in the amount of silver coming on to world markets because of new mines and the demonetization of silver as Germany, Scandinavia and other countries switch to the gold standard. As a result the undebased silver coinage of India, and the currencies of China, Japan and south east Asia, countries comprising half the world's population, suffer an unprecedented fall in value. p 622 ||
 * ~ 1873-1924 ||~ The Scandinavian Monetary Union ||
 * Denmark, Sweden and Norway form a monetary union similar to the Latin one but with gold as the standard for their currency. p 356,443 ||
 * ~ 1873-1886 ||~ The //Great Depression// in Britain ||
 * The British economy is in decline relative to that of the US and Germany. One effect of the Depression is to cause doubts about the merits of the gold standard. p 353,493 ||
 * ~ 1880 ||~ Mitsubishi and Yasuda Banks founded in Tokyo ||
 * These are both Zaibatsu banks based on existing family trading empires. By 1912 the Yasuda Bank has absorbed 17 other banks. p 583 ||
 * ~ 1880 ||~ Yokohama Specie Bank founded ||
 * This is the first of a number of special banks established to assist the growth of the Japanese export trade. p 583-584 ||
 * ~ 1881 ||~ Postal Orders are introduced in Britain ||
 * These are an immediate success and although they are introduced instead of Post Office notes which would have competed with commercial banknotes, the postal orders are nevertheless used as currency in some areas for the next 10 years and are made legal tender after the outbreak of the First World War. p 338 ||
 * ~ 1882 ||~ Bank of Japan founded ||
 * After a careful study of European central banks - the Americans do not have one at this time - the Japanese decide that the National Bank of Belgium is peerless and it is chosen as a model for Japan's national bank. p 582 ||
 * ~ 1883 ||~ Austria establishes the world's first postal giro system ||
 * Subsequently this example is widely followed in other European countries and Japan. For a more detailed account of the history of giro systems see Davies, Glyn. National Giro : modern money transfer/ foreword by James Callaghan. London : Allen and Unwin, 1973. 246p ISBN 0 04 332054 6p 584 ||
 * ~ 1886 ||~ Gold and Silver Commission considers replacing Britain's gold standard ||
 * The Commission is asked to advise the government how best to overcome the fall in prices caused by the Great Depression. Two famous economists, Alfred Marshall and F.Y. Edgeworth, recommend //symmetallism// where the legal standard would consist of a fixed weight of both gold and silver but nothing comes of this suggestion. p 493 ||
 * ~ 1890 ||~ First Barings crisis ||
 * Barings have become heavily involved in financing British investment in South America, especially Argentina. After the failure of one deal and a revolution in Argentina, Barings is within 24 hours of bankruptcy when it is saved by support from the Bank of England and all the main City of London banks. p 346 ||
 * ~ 1890 ||~ China issues silver coins ||
 * Up to this time China has rarely used precious metal coins, its normal coins being base metal //cash// of a design unchanged since ancient times. p 56 ||
 * ~ 1890 ||~ US Sherman Act ||
 * This obliges the Treasury to buy 4.5 million ounces of silver each month. p 495 ||
 * ~ 1890 ||~ Cheques account for 90% by value of financial transactions in the US ||
 * The supply of the main source of money in the US is not subject to uniform rules but to the regulations of the different state and federal authorities responsible for banks. p 489-490 ||
 * ~ 1891-1901 ||~ Number of Japanese savings banks increases twentyfold ||
 * By 1901 the total is 441. Up from a score ten years earlier. p 583 ||
 * ~ 1892 ||~ Liberator Building Society fails in Britain ||
 * The Liberator had become involved in speculative deals, lending money secured only by second or third mortgages. It is brought down by the failure of the London and General Bank and in turn the Liberator brings down a number of other building societies. p 329-330 ||
 * ~ 1893 ||~ Bank panic in the US ||
 * A bank panic, similar to the one 20 years earlier, breaks out. Bank clearing houses use //clearing house certificates// for settling inter-indebtedness, leaving the precious notes and gold available for their fearful personal customers. p 499 ||
 * ~ 1893 ||~ US silver purchase laws cancelled ||
 * The abundance of silver on the world market enables gold to be purchased in the US at favourable rates, leading to a gold drain. Fearing that supplies of gold will be insufficient to back note circulation President Cleveland cancels the silver purchase laws. p 495 ||
 * ~ 1893 ||~ Herschell Report on India's silver currency ||
 * In accordance with the recommendations of the committee set up because of the fall in the value of the Indian rupee, the British authorities close Indian mints to the free coinage of silver. The resulting reduction in the circulation of rupees raises their exchange value and it is stabilized at 15 rupees to the gold sovereign, preparing the way for a move towards the gold standard. p 622-623 ||
 * ~ 1894-1895 ||~ Sino-Japanese War ||
 * By the conclusion of the war Japan has acquired sufficient gold reserves to make possible the replacement of its traditional silver standard by the gold standard two years later. p 582 ||
 * ~ 1894 ||~ Building Societies Act ||
 * This act is the outcome of a parliamentary inquiry into the fall of the Liberator. It forbids advances on second or subsequent mortgages, increases the powers of the Chief Registrar of Building Societies, and prevents new societies from allocating mortgages by ballot. p 330 ||
 * ~ 1894 ||~ Bank of British West Africa founded ||
 * The first bank to be created in Britain's west African colonies starts operations in Lagos. Branches are also opened in Accra, Gold Coast (Ghana) in 1896 and Freetown, Sierra Leone in 1898. p 601 ||
 * ~ 1894 ||~ British //dollars// minted for colonies in the Far East ||
 * Most of the British dollars are minted in Bombay. p 626 ||
 * ~ 1895 ||~ Sumitomo Bank founded in Osaka ||
 * This Japanese bank is founded by an existing Zaibatsu trading organization. p 585 ||
 * ~ 1896 ||~ Hypothec Banking Act in Japan ||
 * This provides umbrella legislation under which a number of industrial and agricultural banks are set up. p 584 ||
 * ~ 1896 ||~ William Jennings Bryan runs for the US Presidency ||
 * Bryan is a very vigorous supporter of bimetallism and opponent of the gold standard but he loses the election to the Republican candidate William McKinley. p 496 ||
 * ~ 1897 ||~ Japan officially adopts the gold standard ||
 * Following the successful conclusion of the Sino-Japanese War two years earlier Japan has accumulated sufficient gold reserves to make the transition from the silver to the gold standard. p 582 ||
 * ~ 1897 ||~ Hypothec Bank of Japan founded ||
 * This is the first bank to be established under the Hypothec Law of the previous year. The bank provides farmers and entrepreneurs with long-term loans. p 584 ||
 * ~ 1898 ||~ Fowler Report on Indian Currency ||
 * The reduction in the circulation of rupees after 1893 and the high rates of interest needed to maintain its value have led to complaints that trade is being strangled. The Fowler Committee recommends renewed issues of gold sovereigns and half sovereigns as part of the move towards the gold standard. p 623 ||
 * ~ 1899 ||~ Bank of Japan completes replacement of other banks' note issues ||
 * The Bank of Japan's notes are fully convertible into gold. All other notes cease to be legal tender. p 582 ||
 * ~ 1899 ||~ Hokkaido Colonial Bank founded ||
 * It is established to strengthen the economy of the northern Japanese province of Hokkaido. p 584 ||

The French national debt rises from 28 billion to 151 billion francs and the note issue increases over 6-fold. p 562 Germany relies more on borrowing, particularly short-term, and less on taxation than Britain. Consequently its policy is more inflationary. p 572 Japan's industry is greatly stimulated by the war. By 1918 Japan has passed from being a debtor to a creditor country. p 584 ||
 * ~ 1850-1914 ||~ Huge amounts of capital are exported from Britain ||
 * Huge amounts of British capital are invested abroad, especially after 1890, in the United States, parts of the British Empire, and Argentina. The total reaches billions of pounds. Britain's later economic problems may be partly due to the neglect of British industry by the banks during this period. p 348-352 ||
 * ~ 1860-1921 ||~ Number of banks in the US increases by over 19 times ||
 * During the same period bank numbers fall in other advanced countries but in the US a peak of nearly 30,000 is reached in 1921. p 490-491 ||
 * ~ 1865-1926 ||~ The Latin Monetary Union ||
 * This comprises France, Italy, Belgium, Switzerland, and later Greece. The gold and silver coins of each country are legal tender throughout the union. The union has faded away by the 1920s before its formal ending. p 443,492-493,557 ||
 * ~ 1873-1924 ||~ The Scandinavian Monetary Union ||
 * Denmark, Sweden and Norway form a monetary union similar to the Latin one but with gold as the standard for their currency. p 356,443 ||
 * ~ 1891-1901 ||~ Number of Japanese savings banks increases twentyfold ||
 * By 1901 the total is 441. Up from a score ten years earlier. p 583 ||
 * ~ 1900 ||~ US Gold Standard or Currency Act ||
 * The great increase in America's stock of gold leads to abandonment of bimetallism. The act also halves the minimum capital requirement for the smallest national banks, thus stimulating an increase in their numbers, and raises the limitations on the issue of notes. p 497 ||
 * ~ 1900 ||~ Bank of France has representation in 411 towns, including 120 full branches ||
 * Owing to its very extensive network of branches and offices, commercial banks have not developed as vigorously as their British and German counterparts. p 556-557 ||
 * ~ 1900 ||~ Industrial Bank of Japan founded ||
 * Its purpose is to provide long-term loans and debentures to assist the mining and metallurgical industries in particular. p 584 ||
 * ~ 1901 ||~ Number of Japanese banks reaches a peak of 1,867 ||
 * Thereafter amalgamation and mergers reduce the number. p 583 ||
 * ~ 1902 ||~ Straits Settlement (Singapore) dollar introduced ||
 * This is intended as a replacement for the foreign coins which are demonetized two years later. p 626 ||
 * ~ 1903 ||~ French coins and notes are still far more important than bank deposits ||
 * Bank deposits form only a tenth of the French money supply whereas coins account for half. Bank note circulation is 8 times as high as the Bank of England's issues and the Bank of France's gold reserves are even higher than its note issues. p 557-558 ||
 * ~ 1904 ||~ Foreign coins lose legal tender status in Singapore ||
 * The demonetization of Mexican and other foreign dollars simplifies cash transactions. p 626 ||
 * ~ 1906 ||~ Switzerland and Japan establish postal giro systems ||
 * They are the first countries to follow the example of Austria which established the world's first postal giro system in 1883. p 584 ||
 * ~ 1907 ||~ International bank crisis starts in New York ||
 * Unlike earlier US panics which tended to start in weak country banks, this one starts in the trust companies in New York. They are not members of the clearing system that might have been able to prevent the crisis snowballing. Hundreds of American banks fail. In contrast Britain weathers the storm with ease and this motivates proposals for a system of central banks in the US. p 361,498-502 ||
 * ~ 1908 ||~ US Aldrich-Vreeland Act ||
 * As a response to the panic of the previous year this allows groups of a minimum of 10 national banks to form National Currency Associations to issue temporary currency. The act also sets up a National Monetary Commission which authorizes 42 separate reports, most of which contain studies of foreign banking systems. p 501 ||
 * ~ 1909-1911 ||~ Lloyd George anticipates the British welfare state ||
 * As chancellor of the exchequer Lloyd George introduces a revolutionary series of budgets. In order to finance welfare benefits the taxation system is made much more progressive, efficient and buoyant - just in time to finance the First World War. Warfare engulfs welfare. p 367 ||
 * ~ c. 1910 ||~ Horses still used as money by the Kirghiz in the Russian Empire ||
 * The Kirghiz people in central Asia have long used horses as their main monetary unit and store of value. Sheep are used as subsidiary units and small change is given in lambskins. p 42 ||
 * ~ 1911 ||~ US Postal Savings system established ||
 * Because of opposition from the commercial banks the postal savings system does not develop in a substantial way. p 501 ||
 * ~ 1911 ||~ Issues of silver coins in British west Africa exceed those in Britain ||
 * The annual amount of silver issued increases from an average of £24,426 in the 5 years up to 1890 to £847,850 which exceeds the amount currently being issued for use in the United Kingdom. p 601 ||
 * ~ 1912 ||~ West African Currency Board (WACB) established ||
 * The WACB is set up to be responsible for the issue of currency in the British colonies of Nigeria, the Gold Coast (Ghana), Gambia, Togoland and the British Cameroons. The main form of currency produced is silver coins. Gold coins quickly vanish from circulation to be used as ornaments while bank notes are used mainly by traders and government agents. p 602-603 ||
 * ~ 1912 ||~ China ceases minting its traditional //cash// coins ||
 * After a couple of millennia use of these traditional Chinese base metal coins comes to an end. p 56 ||
 * ~ 1913 ||~ Chamberlain Report on Indian Currency and Finance ||
 * The report includes a memorandum from one of its members, J.M. Keynes, arguing that there is no need for the internal circulation of gold in India. He also points out that India's strong habits of acting as a //sink of the precious metals// pose deflationary dangers not only to India itself but also to Europe. p 623 ||
 * ~ 1913 ||~ Pujo Committee Report on the powers of the US //money trust// ||
 * The committee, established the previous year, reports that power over money and credit is concentrated in just a few hands. It signals an end to laissez-faire in US banking. p 501 ||
 * ~ 1913 ||~ US Federal Reserve System established ||
 * Instead of a single central bank, like the First and Second Bank of the United States, 12 Federal Reserve districts are established each with its own reserve bank. All national banks have to become members of the system and the state banks are given conditional permission to join. Banks are also allowed to establish branches abroad. p 501-502,524 ||
 * ~ 1913 ||~ Number of German savings banks reaches 3,133 ||
 * Their total assets are more than double those of the commercial banks. p 570 ||
 * ~ 1913 ||~ Number of industrial credit co-operatives in Germany reaches 1,500 ||
 * By this time they have well over 800,000 individual members and outstanding credits of over 1.5 billion marks. p 570 ||
 * ~ 1914 ||~ Number of rural credit co-operatives in Germany reaches 17,000 ||
 * Their growth has mushroomed since the first one was set up by Friedrich Wilhelm Raiffeisen in 1846. p 570 ||
 * ~ 1914 ||~ German Reichsbank has over 100 main branches ||
 * In addition it has 4,000 sub-offices. Thus the Reichsbank's regional representation is far stronger than that of the Bank of England in Britain. p 571 ||
 * ~ 1914-1918 ||~ First World War ||
 * Despite the huge revenues raised from taxation the British national debt rises tenfold. The government fails to use its bargaining power, as the only really massive borrower in wartime, to get money at low rates of interest. p 367-373
 * ~ 1914 ||~ New British notes issued and gold is withdrawn from circulation ||
 * New one pound and 10 shilling notes are issued by the Treasury, not the Bank of England, and postal orders and Scottish and Irish banknotes are made legal tender. The success of the new notes allows banks to withdraw gold gradually from internal circulation, thus putting a quiet end to the gold standard. p 369-370 ||
 * ~ 1917 ||~ The world's first billion pound loan is raised ||
 * Within 6 weeks of the issue of the third War Loan by the British government the money is raised. p 372 ||
 * ~ 1917 ||~ US enters 1st World War ||
 * As a result the national debt increases from about $1 billion in 1916 to $25 billion in 1920. p 504 ||
 * ~ 1918 ||~ French Giro established ||
 * As France makes relatively small use of cheque payments at the time of the giro's foundation, this system of money transfer fulfils unmet needs and grows rapidly. By the time Britain's giro is established 50 years later the French one is the largest in the world. p 561 ||
 * ~ 1919 ||~ US Edge Act to promote foreign banking indirectly permits bank branches ||
 * This amendment to the Federal Reserve Act allows the chartering of corporations for the purpose of engaging in international or foreign banking. Despite the legal prohibition of branch banking these corporations can be set up anywhere, including other states in the US. p 524,538 ||


 * ~ 1860-1921 ||~ Number of banks in the US increases by over 19 times ||
 * During the same period bank numbers fall in other advanced countries but in the US a peak of nearly 30,000 is reached in 1921. p 490-491 ||
 * ~ 1865-1926 ||~ The Latin Monetary Union ||
 * This comprises France, Italy, Belgium, Switzerland, and later Greece. The gold and silver coins of each country are legal tender throughout the union. The union has faded away by the 1920s before its formal ending. p 443,492-493,557 ||
 * ~ 1873-1924 ||~ The Scandinavian Monetary Union ||
 * Denmark, Sweden and Norway form a monetary union similar to the Latin one but with gold as the standard for their currency. p 356,443 ||
 * ~ 1920 ||~ Keynes publishes his //Economic Consequences of the Peace// ||
 * He argues against German war reparations and in favour of mutual cancellation of Allied war debts. p 376-377,518 ||
 * ~ 1920 ||~ Japanese economy enters a chronic depression ||
 * By 1920 the boom generated by the First World War has petered out and a depression starts. p 585 ||
 * ~ 1921 ||~ Note issuing by commercial banks in England ceases ||
 * Fox, Fowler & Co. of Wellington, Somerset, the last note-issuing country bank in England and Wales is taken over by Lloyds. However Scottish banks continue to issue their own notes. p 320,375 ||
 * ~ 1921 ||~ The Imperial Bank formed in India ||
 * It is formed by the merger of the three presidency banks. The Imperial Bank performs some of the functions of a central bank and so some of the relevant recommendations of the Chamberlain Report of 1913 are partly and belatedly put into effect. p 623-624 ||
 * ~ 1922-1923 ||~ Germany suffers from hyperinflation ||
 * The situation gets so bad that wages are paid as frequently as twice a day to give people a chance to spend them before the notes lose their value. Other countries agree to ease the burden of war reparations. A new, interim currency, the Rentenmark, secured on mortgages on land and industrial property, restores stability. p 377,572-574 ||
 * ~ 1923 ||~ Tokyo earthquake ||
 * On 1 September an earthquake kills around 140,000 people and devastates large parts of Tokyo and its port, Yokohama. The Bank of Japan coordinates the activities of the main banks to finance reconstruction. p 585 ||
 * ~ 1924 ||~ Germany adopts the Reichsmark and returns to the gold standard ||
 * The Reichsmark, which replaces the Rentenmark, has a value equivalent to the pre-war gold mark. p 574 ||
 * ~ 1924 ||~ US Federal Reserve System adopts easy money policy ||
 * The decision is taken in order to combat a decline in business activity and to encourage international capital flows. This action helps Britain to import enough gold to return to the gold standard the following year. p 506 ||
 * ~ 1925-1926 ||~ Florida land boom ||
 * Massive speculation in land in Florida is halted by devastating hurricanes in September 1926. Subsequently the interest of speculators moves to the stock market. p 508 ||
 * ~ 1925 ||~ Britain returns to the gold standard ||
 * Keynes argues that the value of sterling has been fixed at an unsustainably high rate. p 375,378 ||
 * ~ 1926 ||~ General Strike in Britain ||
 * The over-valued pound and the attempt to reduce prices and wages to compete overseas provoke a general strike. p 379 ||
 * ~ 1927 ||~ New York Federal Reserve Bank cuts rediscount rate ||
 * The rate is cut from 4% to 3½% partly in order to help Britain to stay on the gold standard. However the supply of credit is eased just as a speculative boom is starting on the stock market. p 509 ||
 * ~ 1927 ||~ Canadian ban on potlatches is strengthened ||
 * The 1876 act proscribing potlatches has proved ineffective and therefore a new act stipluating maximum and minimum prison sentences is passed. p 12 ||
 * ~ 1927 ||~ Japanese financial crisis started by a run on the Bank of Taiwan ||
 * Taiwan became a Japanese colony in 1895 and therefore the crisis spreads to Japan. As many as 37 Japanese banks are closed, at least temporarily. p 585 ||
 * ~ 1927 ||~ Japanese Banking Act ||
 * This act, passed in response to the crisis of the same year, tightens up the definition of a bank and prohibits banks from engaging in non-banking business. p 585-586 ||
 * ~ 1928 ||~ France returns to the gold standard ||
 * Silver convertibility is no longer guaranteed, ending France's attachment to bimetallism. Gold convertibility is only for wholesale transactions of a minimum of 215,000 francs. p 562 ||
 * ~ 1928-1929 ||~ Stock Market boom in US ||
 * The Fed takes no effective action to stop the boom getting out of control. p 509 ||
 * ~ 1929 ||~ The Great Crash ||
 * The New York stock market crashes on 24 October. The Fed, whose easy money policy stoked the boom, now tightens credit causing a slump in the US economy. p 509-510 ||
 * ~ 1929-1930 ||~ The Great Depression ||
 * Widespread bank failures and the surviving banks' curbs on lending cause businesses of all kinds to go bankrupt. The US net national product falls by over half. p 510 ||
 * ~ 1930 ||~ Bank for International Settlements founded ||
 * Its initial task is to help with reparations and with large financial transfers for reconstruction. Later it plays a key role as a forum for central bankers. p 378 ||
 * ~ 1931 ||~ Report of the Central Banking Enquiry Committee in India ||
 * The Imperial Bank, which performs some of the functions of a central bank, is not allowed to issue notes, which have been a government monopoly since 1861. The Committee accepts the case for the creation of a proper central bank. p 624 ||
 * ~ 1931 ||~ Macmillan Report on Finance and Industry ||
 * The committee tends to side with bankers in the dispute over whether or not the banks are doing enough for British industry and criticises other countries for not adhering to the rules of the gold standard. However, it emphatically points to a lack (henceforth famous as the //Macmillan Gap//) in the long-term finance available for small and medium firms. p 376,379-380 ||
 * ~ 1931 ||~ Failure of the Austrian Creditanstalt Bank ||
 * A number of bank failures in Germany ensue and the resulting large international currency movements trigger off Britain's decision to abandon the gold standard. p 381,575 ||
 * ~ 1931 ||~ Därmstadter and National Bank collapses ||
 * As a result of the crisis German banks cut back on lending, leading to a steep rise in unemployment. p 575 ||
 * ~ 1931 ||~ US and France hold 75% of world's gold stock ||
 * This figure is reached by September. During the previous 6 weeks over £200 million worth of gold was withdrawn from London. p 562 ||
 * ~ 1931 ||~ Britain abandons the gold standard ||
 * This marks the beginning of the move from classical to Keynesian economics. The Commonwealth (except Canada), Ireland, Scandinavia, Iraq, Portugal, Thailand, and some South American countries follow Britain off gold. p 380-382,387,604 ||
 * ~ 1931 ||~ Japan abandons the gold standard ||
 * Japan's military actions along the Manchurian border with China frighten foreign creditors into withdrawing gold and are therefore partly responsible for the decision to abandon the gold standard in December. p 586 ||
 * ~ 1932-1941 ||~ Japan enjoys strong economic growth ||
 * Reflation and competitive devaluation stimulate production and exports with the result that Japan recovers rapidly form the world slump of the 1930s and is able to devote increasing resources to rearmament. p 586 ||
 * ~ 1932 ||~ Bank rate as a policy tool is abandoned by the Bank of England ||
 * Until the financial crisis the Bank of England has sought to control the monetary system by varying the interest rate it charges. After June 1932 bank rate remains unchanged for nearly 20 years, apart from a brief period just before and after the outbreak of the Second World War. p 380,388 ||
 * ~ 1932 ||~ The //Great Conversion// reduces the burden of Britain's national debt ||
 * The rate on over £2,000 million of loan stock is reduced from 5% to 3½%. Cheap money, and the effect of the world slump in reducing investment opportunities abroad, lead to a housing boom and investment in new industries, helping Britain to make a relatively early recovery from the Depression. p 384-386 ||
 * ~ 1932 ||~ Ottawa Agreement on Commonwealth Preference in Trade ||
 * This provides a more stable basis for trade arrangements than can be obtained elsewhere and strengthens the attractions of membership of the sterling area. p 605 ||
 * ~ 1932 ||~ President Hoover sets up the Reconstruction Finance Corporation ||
 * Its purpose is to provide emergency financing for US financial institutions and to help agriculture, commerce and industry. p 511 ||
 * ~ 1932 ||~ US Federal Home Loan Banks created ||
 * Eleven of these banks are set up to provide housing finance. p 511 ||
 * ~ 1933-1938 ||~ Housing boom in Britain ||
 * The bulk of construction takes place in the Midlands, London and the South East where most of the new, light industries are being established. p 386 ||
 * ~ 1933 ||~ Adolf Hitler becomes German Chancellor ||
 * The social turmoil resulting from mass unemployment leads to Hitler's installation as Chancellor. Thereafter Germany's financial system and the economy in general are geared to rearmament. p 575 ||
 * ~ 1933 ||~ Roosevelt becomes US President and launches his //New Deal// ||
 * Roosevelt's first action is to declare a national bank holiday closing every bank in the US. After a week the Federal Reserve Banks reopen and later other banks are allowed to reopen if investigators declare them solvent. This restoration of confidence in the financial system is a necessary preliminary to the New Deal involving aid to industry and agriculture. p 511-515 ||
 * ~ 1933 ||~ US Home Owners Loan Corporation created ||
 * Like the Federal Home Loans Banks created the previous year this institution is intended to combat the depression by stimulating the building industry. p 511 ||
 * ~ 1933 ||~ US Agricultural Adjustment Act ||
 * Existing financial institutions are given greater resources and their efforts coordinated through the Farm Credit Association. The Thomas Amendment to the Act authorizes an increase in note circulation, a reduction in the dollar's gold value, and promotes and subsidizes official purchases of silver. p 511-512 ||
 * ~ 1933 ||~ US Federal Deposit Insurance Corporation created ||
 * Through payments of a small premium by practically all banks a fund is set up to guarantee repayment of customers' deposits. p 513 ||
 * ~ 1933 ||~ National Bank of Nigeria founded ||
 * This is one of only 3 indigenous banks to be founded in Nigeria before 1945. The other two fail after only a short period. p 611 ||
 * ~ 1934 ||~ US Gold Reserve Act ||
 * The official price of gold is raised from $20.67 to $35 per ounce, a substantial devaluation of the dollar, and the internal circulation of gold is ended. p 514-515 ||
 * ~ 1934 ||~ US Silver Purchase Act ||
 * The Act obliges the government to buy large quantities of silver. This raises its price in world markets to such an extent that China is forced off its silver standard and many other countries demonetize their silver currencies. Thus in the long run the Act reduces the demand for silver, contrary to the intention of its supporters. p 515 ||
 * ~ 1934 ||~ German Banking Act ||
 * This establishes a national Banking Supervisory Board authorized to license every bank. p 575 ||
 * ~ 1935 - c.1970 ||~ Continuous moderate inflation in Britain ||
 * The general level of prices rises every year but at a moderate rate. p 395-396 ||
 * ~ 1935 ||~ US Banking Act ||
 * The changes this makes in the Federal Reserve System have the effect of shifting power away from New York and the Federal Reserve Districts towards Washington. p 513-514 ||
 * ~ 1935 ||~ Reserve Bank of India begins operations ||
 * India's central bank is modelled on the Bank of England. p 624 ||
 * ~ c. 1935 ||~ Cowries still used as money in Nigeria ||
 * Their use in fairs in rural areas is not uncommon before the Second World War but declines rapidly afterwards. p 35,608 ||
 * ~ 1936 ||~ France abandons the gold standard ||
 * The French government's policy of a strong franc is undermined by competitive devaluation. After abandoning the gold standard France continues to be the centre of a Franc bloc including most of the non-German European countries south of Scandinavia until the Second World War. p 443,562-563 ||
 * ~ 1936 ||~ Tripartite Agreement between Britain, France and the US on exchange rates ||
 * The aim of the agreement is to stabilize exchange rates. It falls apart with the advent of the Second World War. p 563 ||
 * ~ 1938 ||~ US Federal National Mortgage Association created ||
 * The Association, known as //Fanny Mae//, increases the availability of finance for housing. p 511 ||
 * ~ c. 1938 ||~ Cattle still used as money in parts of Africa ||
 * Even scrawny cattle are highly valued because of their monetary functions. Overgrazing resulting from attachment to cattle as a store of value continues to cause environmental problems as late as the 1980s. p 43 ||

The US national debt, which was only $16 billion in 1930, reaches a peak of $269 billion in 1946 but this borrowing is also made at very low interest rates. Whereas the economies of most European countries are devasted the US gross national product rises substantially. p 515-516 Revenue raised from taxation (48% of government expenditure) and the resources of the occupied countries, together with a compulsory price freeze, enable the German authorities to suppress inflation until near the war's end. p 575 In Japan the financial, administrative and industrial powers of the Zaibatsu are strengthened as they form the economic heart of the military machine. p 587 ||
 * ~ 1932-1941 ||~ Japan enjoys strong economic growth ||
 * Reflation and competitive devaluation stimulate production and exports with the result that Japan recovers rapidly form the world slump of the 1930s and is able to devote increasing resources to rearmament. p 586 ||
 * ~ 1935 - c.1970 ||~ Continuous moderate inflation in Britain ||
 * The general level of prices rises every year but at a moderate rate. p 395-396 ||
 * ~ 1939-1945 ||~ The Second World War ||
 * Keynesian policies are successfully put to the test as the British government borrows larger sums than ever before at lower interest rates than in the First World War and other wars. From being a large creditor to, mainly poorer, Commonwealth countries Britain becomes a large debtor. p 389-391,605
 * ~ 1944-1971 ||~ The Bretton Woods agreement ||
 * The agreement, reached at Bretton Woods in New Hampshire, USA, envisages a system of convertible currencies, fixed exchange rates, and free trade. New financial institutions are to be established; the International Monetary Fund and the International Bank for Reconstruction and Development. Plans for an International Trade Organization fail as they are not ratified by the US Congress but they pave the way for the General Agreement on Tariffs and Trade (GATT). p 21,444-445,516 ||
 * ~ 1944-1960 ||~ Prolonged high inflation in France ||
 * Following the Liberation in August 1944 economic controls are lifted step-by-step, releasing previously suppressed inflation. p 563-564 ||
 * ~ 1944-1946 ||~ Hungary suffers from the world's worst ever hyperinflation ||
 * Hungary's monetary system destroys itself as note issues increase from 12,000 million until at its maximum it comes to a figure containing 27 digits. By July 1946 the 1931 gold pengo is worth 130 trillion paper pengos. p 19,397 ||
 * ~ 1945-1955 ||~ Banking boom and crash in Nigeria ||
 * Between 1945 and 1948 145 banks are registered followed by a similar number in the next 4 years. However their growth is unregulated and owing to inexperience, incompetence, nepotism and corruption by 1955 all but 3 indigenous banks have failed. p 611,612 ||
 * ~ 1945-1948 ||~ Germany suffers from hyperinflation ||
 * Owing to the devastation of the war Germany experiences hyperinflation for the second time in a generation. In the official markets ration cards and permits are more important than currency while on the black market cigarettes, soap, tinned beef and chocolate serve as currency. p 443,576 ||
 * ~ 1945-1948 ||~ Anti-monopoly and decentralization laws affect Japanese banks ||
 * The American occupying forces pass laws to break up the Zaibatsu by separating their banking activities from their industrial bases. They also close down a number of the special banks, such as the Yokohama Specie Bank, and insist on the separation of //commercial// and //investment// banking. p 588 ||
 * ~ 1945 ||~ Bank of France and the four largest deposit banks nationalised ||
 * At the same time a rigid separation between deposit and investment banks is enforced. p 563-564 ||
 * ~ 1946 ||~ US Employment Act ||
 * This act is evidence of the power of Keynesian philosophy. p 531 ||
 * ~ 1947 ||~ The Marshall Plan or European Recovery Programme ||
 * General George Marshall proposes a huge programme to assist reconstruction in war-torn Europe. The programme goes ahead the following year. West Germany is later included among the recipients. p 393,516,519,576 ||
 * ~ 1947 ||~ IMF, IBRD and GATT start functioning ||
 * The International Monetary Fund and the International Bank for Reconstruction and Development, both of which are established as a result of the Bretton Woods agreement start functioning and the General Agreement on Tariffs and Trade, which also inspired by the agreement, holds its first meeting. p 517-518 ||
 * ~ 1948 ||~ Organization for European Economic Cooperation formed ||
 * Its initial purpose is to distribute Marshal aid effectively. It also broadens the existing bilateral payments systems into wider multilateral clearings. p 444 ||
 * ~ 1948 ||~ Germany replaces the Reichsbank by autonomous Landesbanks ||
 * Each province has its own central bank. Their activities are coordinated by the Bank Deutscher Lä in Frankfurt. p 576 ||
 * ~ 1948 ||~ Germany replaces the Reichsmark by the Deutschemark ||
 * Simultaneously the freeze on prices and wages and most of the rationing system are abolished. These reforms lay the foundations for the West German economic miracle. p 443,576-577 ||
 * ~ 1948 ||~ Reserve Bank of India nationalized ||
 * After independence in 1947 the banking system is reorganised to fit its Indian environment. p 624 ||
 * ~ 1948 ||~ Industrial Finance Corporation founded in India ||
 * Its goal is to provide medium- and long-term finance to industrialists unable to get such funds from normal banking services. p 624 ||
 * ~ 1949 ||~ Britain devalues and starts an international realignment of exchange rates ||
 * Britain devalues the pound from $4.30 to $2.80 i.e. by about 30% against the dollar. This sparks off a major international realignment of exchange rates in which most other countries also devalue their currencies against the dollar. Britain's action reduces the value of sterling assets held by other Commonwealth countries and stimulates moves towards financial and political independence in the remaining colonies. p 393,598,606 ||
 * ~ 1949 ||~ Manillas withdrawn from circulation in Britain's west African colonies ||
 * Even after the Second World War the United African Company found it necessary to trade in manillas (currency worn as ornament) but, after a long struggle, they are officially withdrawn in 1949. p 46,600 ||
 * ~ 1949 ||~ Economic reforms in Japan ||
 * The US abandons the idea of exacting war reparations and instead supplies aid to Japan, like that given to Europe under the Marshall plan. At the same time rationing is abolished, runaway inflation brought under control, the budget balanced, and a single exchange rate for the yen, at 360 to the dollar, established. p 519,588 ||
 * ~ 1950-1970 ||~ Japanese economic miracle ||
 * Average annual growth in the 1950s is 9.2%, comfortably exceeding an ambitious plan for doubling the average income in a decade. In the 1960s growth is even higher, averaging 10.7% annually. p 589 ||
 * ~ 1950-1958 ||~ The European Payments Union ||
 * This is set up by the Organization for European Economic Co-operation. The 15 members can mutually offset deficits and surpluses up to the limits of their quotas which are set according to their share of world trade. By 1958 most European currencies are sufficiently convertible for the payments union to be terminated. p 445 ||
 * ~ 1950-1953 ||~ The Korean War ||
 * The Japanese economy is boosted as the country benefits from being the main Asiatic base for supplies to the United Nations forces in Korea. p 588 ||
 * ~ 1950 ||~ Export Bank founded in Japan ||
 * This is established to finance exports as part of Japan's efforts to rebuild the economy after the Second World War. In 1952 it becomes the Export-Import Bank. p 588 ||
 * ~ 1950 ||~ The European Coal and Steel Community established ||
 * This is the first step towards the creation of the European Economic Community. p 445 ||
 * ~ 1951 ||~ Bank rate restored as a policy instrument in Britain ||
 * During the era of the gold standard the Bank of England could successfully control the monetary system by varying bank rate. However, when the policy is used again in the 1950s it is much less successful. p 394,399 ||
 * ~ 1951 ||~ British colonies' sterling balances exceed £1,000 million ||
 * Whereas the independent Commonwealth countries had managed to reduce their sterling balances those of the colonies are still increasing with the result that the British economy is benefiting at the expense of poorer countries. p 606 ||
 * The authorities encourage mergers and amalgamation among smaller banks to strengthen the banking system. The number of //reporting banks// declines from 517 in 1952 to reach its low point of 90 in 1967. p 624 ||
 * ~ 1954 ||~ First attempt to create a money market in west Africa ||
 * This triggers off the development of modern monetarism. p 429 ||


 * ~ c. 1960- ||~ The Population Explosion becomes a matter of increasing concern ||
 * The rapid increase in the world's population, especially in the Third World, hampers the attempts of the poorest nations to escape from their poverty and adds to inflationary pressures, which tend to be far worse in developing countries than industrial ones, as well as exacerbating environmental problems. p 5-9,43,593-597 ||
 * ~ c. 1960 ||~ Primitive money largely superseded ||
 * By the 1960s primitive forms of money, e.g. cowrie shells and manillas, that were still in widespread circulation only a few decades earlier have virtually disappeared from use in most countries, with a few minor exceptions (e.g. the use of fei stones in Yap). The replacement of primitive by modern money, together with the move from subsistence to market economies, means that the lives of more people are directly affected by monetary policy. p 8,36,600 ||
 * ~ c. 1965 ||~ Fei stone currency still in use in Yap ||
 * Despite the inroads of coins and banknotes the use of fei stones as currency in the central Pacific islands of Yap has still not completely disappeared by the mid-1960s. These stones, varying in size from saucers to millstones were quarried in Palau, 260 miles from Yap, or the even more distant Guam. p 37 ||
 * ~ 1971 ||~ Britain decimalises its currency ||
 * Instead of 12 pence in a shilling and 20 shillings in a pound, the pound is divided into 100 new pence. p 442 ||


 * ~ c. 1960- ||~ The Population Explosion becomes a matter of increasing concern ||
 * The rapid increase in the world's population, especially in the Third World, hampers the attempts of the poorest nations to escape from their poverty and adds to inflationary pressures, which tend to be far worse in developing countries than industrial ones, as well as exacerbating environmental problems. p 5-9,43,593-597 ||
 * ~ 1965-1987 ||~ Rapid expansion of US banks abroad ||
 * From 13 US banks with a total of about 200 foreign branches the numbers increase to about 200 banks with around 800 branches. The growth is temporarily interrupted by the stock market crash of 1987. p 525 ||
 * ~ 1969-1983 ||~ Number of banking offices in India increases five-fold ||
 * The government's attempts to control rural moneylenders result in such a shortage of credit in many villages that agricultural output falls. The authorities react by stimulating the growth of cooperatives and the formation of bank branches in villages. The number of banking offices increases from 8,262 to 42,016. p 624-625 ||
 * ~ 1978-1980 ||~ 2nd OPEC oil price shock ||
 * OPEC doubles the price of oil between 1978 and 1980. This leads to an increase in interest rates, pushes industrial countries into a deep recession, and is a contributing factor in the Third World debt crisis of the 1980s and 1990s. p 633-634 ||
 * ~ 1979-1990 ||~ Thatcherism in Britain ||
 * Margaret Thatcher greatly strengthens the commitment to monetarism. Manufacturing industry is badly affected but the financial sector is strengthened. The average rate of inflation is actually higher than during the Keynesian era from 1934-1976. p 431-441 ||
 * ~ 1980 - ? ||~ Third World debt crisis ||
 * During the 1970s many developing countries borrow large sums, many of the loans being at variable rates from commercial banks which are very eager to lend money after their coffers are swollen by money from OPEC countries following the oil price hike in 1974. When interest rates rise in the industrial world in an effort to curb inflation, the debts of many developing countries start to rise beyond their capacity to repay them. p 21,629-636 ||
 * ~ 1980 ||~ US Depository Institutions Deregulation and Monetary Control Act ||
 * Some banks have been seeking to evade restrictions by leaving the Federal Reserve System. Under this act all deposit-taking institutions are to be subject to the Federal Reserve System's reserve requirements in a planned, seven year programme. p 532 ||
 * ~ 1980 ||~ Poland is unable to meet its debt obligations ||
 * A few members of the Soviet bloc, like many Third World countries, are affected by the developing international debt crisis. Poland's creditors agree to a rescheduling of its debt obligations but western bankers rapidly withdraw funds from other eastern European countries. p 633 ||
 * ~ 1982 ||~ Mexican debt crisis ||
 * A crisis caused by massive flight of capital from Mexico to the USA is tackled by loans from the US government, the New York Federal Reserve Bank, the IMF and the Bank for International Settlements. However the Mexican crisis triggers off a flight of capital from other heavy Latin American borrowers such as Argentina, Brazil and Venezuela. p 633-634 ||
 * ~ 1982 ||~ US Garn-St Germain Act ||
 * The powers of the Savings and Loan Associations (thrifts) are widened and as a result the thrifts begin to diversify their assets. p 533,540 ||
 * A run on thrifts in Ohio and Maryland leads to the insolvency of their state-chartered deposit insurance agencies. p 534 ||
 * ~ 1985 ||~ EEC agrees to a //Single European Act// ||
 * The aim is to create, by the end of 1992, a unified economic area in which goods, services, people and capital would be able to move freely. p 448 ||
 * ~ 1986 ||~ Federal Savings and Loan Insurance Corporation declared insolvent ||
 * Large losses by thrifts in Texas and elsewhere lead to the FSLIC's insolvency. p 534 ||
 * ~ 1986 ||~ British building societies get new banking powers ||
 * The Building Society Act gives them greater freedom, allowing them to become public limited companies if they wish. For some this is a first step towards becoming fully fledged banks. p 428-429 ||
 * ~ 1986 ||~ London Stock Exchange's //Big Bang// ||
 * The Stock Exchange is opened up to new competitors and at the same time a new system of automated operations is introduced. These changes coincide with a great boom. p 433 ||
 * ~ 1988 ||~ 15 countries have debts greater than their GNP ||
 * ~ 1990 ||~ Japanese banks are the largest in the world; US has none in the top 20 ||
 * ~ 1992 ||~ European single market comes into effect ||
 * ~ 1994 ||~ Sumitomo Bank, the world's biggest, makes a loss ||
 * This is the first time in 50 years that any of the largest Japanese banks have declared a loss. p 670 ||
 * ~ 1995 ||~ By value over 90% of all transactions in the US are made electronically ||
 * ~ 1999 ||~ European single currency is created ||