|Bank of England|
The central bank of the country, nationalized in 1946 by the Labour Government. It was originally a finance company founded by a Whig government. The goldsmiths of the City of London deposited their gold by tradition with the Treasthe Treasury and confiscated the gold. The the Treasury and confiscated the gold. The credit of thc government was ruined from then on. The depositors devised a new scheme for banking their gold: they formed a company. To induce subscriptions, the subscribers were to be known as the Governor and Company of the Bank of England. £1,200,000 was raised at 8 per cent. the government, lending it money and help the government, lending it money and helping it to raise a national debt. In return, it received from the government three important privileges: (1) it was the government's banker; (2) for some time it had a monopoly of limited liability; (3) it was the sole joint stock company allowed to issue bank notes in England. At one time private bankers could issue notes. but today the Bank has a complete monopoly.
|Reference: The Penguin Business Dictionary, 3rd edt.|