chapter  2
THE BANK RESTRICTION PERIOD 1797-1821
Pages 30

War with France, which was declared in January 1793, produced a severe commercial crisis, in which the government intervened with advances of Exchequer bills to traders in distress. But events soon resumed a fairly normal course, and it was not until 1795 that serious banking difficulties began. These difficulties fall into two phases, a foreign drain of gold and then, after this had been stemmed, a run on the banks at home.