lty. The severity of these in the case of banking is intensified by
the vast number of interests affected. These, on the one hand, are
world-wide in their scope, on the other they touch every home in the
country. The stringency of such a time in England has since the passing of
the act of 1844 been greatly enhanced by a doubt being sometimes felt as to
whether a relaxation of the act of 1844 would be allowed. In any case, some
little time must elapse before the assent of the ministers of the crown to
the request of the Bank of England can be known. Since 1844 there have been
five periods of pressure,--during 1847, 1857, 1866, 1870 and 1890. Of these
in three, 1847, 1857 and 1866, the difficulties reached panic.

The crisis of 1847 was brought on by the speculation in railway enterprise
which had gone on since 1845. So little had the anxieties of the autumn
been anticipated that the bank rate of discount was 3% on the 1st of
January. It was raised to 3-1/2% on the 14th and to 4% on the 21st. It
became 5% on 8th April, 5-1/2% on 5th August, 6% on 30th September and 8%
on 25th October. This was the highest. It was lowered to 7% on 22nd
November, on 2nd December to 6% and on 23rd December to 5%. An announcement
was made on the 1st of October that no advances would be made on public
securities. This was followed by general anxiety and alarm.

The reserve of the bank was rapidly reduced to a very low ebb.

_Bank of England Reserve of Specie._
1847, 16th October .... L3,070,000
" 23rd October .... 1,990,000
" 30th October .... 1,600,000

Meanwhile the anxiety and alarm prevailing were causing a general hoarding
of coin and bank notes, and it really appeared not unlikely that the
banking department of the Bank of England might be compelled to stop
payment while there was more than L6,000,000 of specie in the issue
department. The chancellor of the exchequer (Sir C. Wood, afterwards Lord
Halifax) was urged by many deputations and remonstrances to relax the Bank
Act, but he declined. At last, on the 22nd or 23rd of October, some of the
leading city bankers had an interview with the prime minister (Lord John,
afterwards Earl, Russell), and on their explaining the necessities of the
position, the desired relaxation was given. The official letter (25th
October) recommended "the directors of the Bank of England, in the present
emergency, to enlarge the amount of their discounts and advances upon
approved secur