Everything Everywhere Daily The Bank of England
Aug 11, 2025
In the late 17th century, King William III faced a dire financial crisis due to wars with France. Out of necessity, the proposal for the Bank of England emerged, revolutionizing how the crown could fund itself. This bank not only provided financial aid but also laid the groundwork for modern banking practices. The podcast dives into its historical evolution, exploring how the institution transformed from a wartime lender to a cornerstone of the UK’s financial system, influencing global finance along the way.
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State-Backed Bank Solution
- William Patterson proposed a public corporation to lend the crown and issue banknotes.
- The plan deliberately linked a new bank's fortunes to the English state.
Rapid Fundraising For War
- Investors raised £1.2 million in 12 days to fund William III's war effort.
- They received 8% interest plus exclusive rights to issue banknotes.
Charter Gave Market Control
- In 1708 Parliament barred banks with more than six partners to block large rivals.
- That legal restriction helped entrench the Bank of England's dominance.
