ABSTRACT
After the crisis of 1857, as after that of 1847, the relief of tension came quickly. On the 18th November, 1857, the first Bank return after the rise of Bank rate to 10 per cent. and the suspension of the fiduciary limit showed a reserve of £1,553,000. Since the securities in the Issue Department had been increased by £2,000,000, the limit had in reality been exceeded by £447,000. By the 23rd December, the reserve had risen to £7,971,000 and the fiduciary issue was reduced within its statutory limits. Bank rate was reduced from 10 per cent, to 8, and thereby, under the terms laid down by the Government, the right to exceed the limit was surrendered.
