ABSTRACT
This chapter examines more closely the causes of widespread bankruptcies between 1795 and 1826. It also examines the causes and course of the crisis, attempting to identify the factors responsible for the trade boom which preceded it, to assess the significance of Bank of England policy both before and during the crisis and to explain the timing and location of the widespread bankruptcies which it produced. The logical explanation of the increase is that commercial and industrial activity was more extensive during the last thirty years of the century than before and that bankruptcy statistics were in some way sensitive to that activity. The chapter considers three domestic series, the first of which – wheat prices – may have influenced domestic demand, and the second and third of which – the yield on consols and Bank of England discounts – probably affected the level of economic activity generally.
