ABSTRACT
In 1870 the paper currency of the UK was comprised of Bank of England notes and commercial bank notes. During 1914 to 1928 the Treasury also issued notes through the Bank of England. Country banks, in existence in England from 1716, and Scottish banks also issued their own notes. The English banks increased in number from the 1780s with industrialization and wartime expansion, especially when convertibility was suspended. The depression years of 1819 to 1821 were associated with the Bank's restriction of its note issue and accumulation of gold in preparation for convertibility, and its behaviour possibly intensified the panic of 1825. Under the 1844 Bank Charter Act, the Issue Department of the Bank of England was separated from the Banking Department. Henceforth, all Banks of the England notes had to be backed by bullion kept in the Issue Department.
