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27 July 1694
Bank of England set up
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The Bank of England is set up to raise cash for foreign wars. It consists
of shareholders who lend the government money – which is called the
National Debt – at interest. The bank first lends £1,200,000
at 8% interest per year – plus a charge of £100,000 for expenses.
The bank is originally set up for 12 years but gets a permanent charter
in 1708. As Chancellor of the Exchequer, Charles Montagu, Earl of Halifax,
helps mastermind this solution to the government's need for money to wage
war in Europe.
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