redit.(1852)

(M927)

At the time when this resolution was passed the king was expected home
from the continent, whither he had gone in May last. During his absence
there had occurred a monetary crisis--the first since the establishment of
the Bank of England--which, after causing for several months a great amount
of distress, was destined to be succeeded by a long period of unbroken
prosperity. An Act had recently been passed for calling in all clipt money
and substituting milled money in its stead,(1853) and the crisis was
brought about by the old money being called in before the new money was
ready for issue. Saturday, the 2nd May, was practically the last day clipt
money was received by the exchequer. Three days later the stock of milled
money in the coffers of the Bank of England at Grocers' Hall had run out,
and the governor of the Bank, Sir John Houblon, who happened at the time
to be also lord mayor, had to propitiate the numerous claimants for the
new money by offering them part payment in the old coin and the rest in
the new as soon as it was minted.(1854)

(M928)

Towards the end of July matters became worse. In spite of the
extraordinary activity displayed by the Mint authorities, at the Tower and
in divers parts of the country, the supply had not equalled the demand,
yet a large sum of money was now imperatively demanded for payment of the
army on the continent. The king himself had written to say that unless the
money was forthcoming his troops were ready to mutiny or desert. Nothing
less than a million would satisfy the requirements of the army in
Flanders, a like sum was wanted for the navy, whilst half that amount was
necessary for the army in England.(1855) How was this enormous sum to be
raised? It was thought that the City might vote something towards it, but
the Chamberlain declared that any proposal for a loan at that time would
with difficulty be carried into execution owing to the scarcity of
money.(1856) Some private individuals, however, managed to raise L200,000
for the king, whilst others, like Sir Josiah Child, Charles Duncombe and
Sir Joseph Herne, were prepared to stand security for L300,000 more, which
the Dutch were ready to advance. After long deliberation the Bank of
England agreed (15 Aug.) to advance another L200,000.(1857) These sums
sufficed for the more immediate wants of the king, and allowed time for
the issue of the new currency.

(M929)

The campaign of 1696 had been ca