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28-881: The Bank Charter Act 1844 ( 7 & 8 Vict. c. 32), sometimes referred to as the Peel Banking Act of 1844 , was an Act of the Parliament of the United Kingdom , passed under the government of Robert Peel , which restricted the powers of British banks and gave exclusive note-issuing powers to the central Bank of England . It is one of the Bank of England Acts 1694 to 1892 . Until the mid-nineteenth century, commercial banks in Britain and Ireland were able to issue their own banknotes, and notes issued by provincial banking companies were commonly in circulation. Under

56-620: A century, until the Acts of Union 1800 merged the separate British and Irish Parliaments into a single Parliament of the United Kingdom with effect from 1 January 1801. Following the Treaty of Union in 1706, Acts of Union ratifying the Treaty were passed in both the Parliament of England and the Parliament of Scotland, which created a new Kingdom of Great Britain. The Acts paved the way for

84-432: A group of his ministers, the foremost of whom was Sir Robert Walpole , and by the end of his reign in 1727 the position of the ministers – who had to rely on Parliament for support – was cemented. George I's successor, his son George II , continued to follow through with his father's domestic policies and made little effort to re-establish monarchical control over the government which was now in firm control by Parliament. By

112-563: A result of the Act, as provincial banking companies merged to form larger banks, they lost their right to issue notes. The English private banknote eventually disappeared, leaving the Bank of England with a monopoly of note issue in England and Wales. The last private bank to issue its own banknotes in England and Wales was Fox, Fowler and Company in 1921. The Bank Notes (Scotland) Act 1845 adopted

140-523: A year later was more lenient, allowing banks in Scotland to issue more than their 1845 circulation amount, as long as the additional circulation was backed pound-for-pound with gold reserves at head office. Merging banks were also allowed to combine their issues. Today three commercial banks in Scotland and three in Northern Ireland continue to issue their own sterling banknotes , regulated by

168-416: Is cited as "39 & 40 Geo. 3 c. 67", meaning the 67th act passed during the session that started in the 39th year of the reign of George III and which finished in the 40th year of that reign. Note that the modern convention is to use Arabic numerals in citations (thus "41 Geo. 3" rather than "41 Geo. III"). Acts of the last session of the Parliament of Great Britain and the first session of the Parliament of

196-802: The Middle Ages , so that in many "rotten" and "pocket" boroughs seats could be bought, while major cities remained unrepresented, except by the Knights of the Shire representing whole counties. Reformers and Radicals sought parliamentary reform, but as the French Revolutionary Wars developed the British government became repressive against dissent and progress towards reform was stalled. George II's successor, George III , sought to restore royal supremacy and absolute monarchy, but by

224-605: The United Kingdom and thus beginning the process of centralizing banknote issuance. The Act was a victory for the British Currency School , who argued that the issue of new banknotes was a major cause of price inflation . Although the Act required new notes to be backed fully by gold or government debt , the government retained the power to suspend the Act in case of financial crisis, and this in fact happened several times: in 1847 and 1857, and during

252-475: The list of acts of the Parliament of England and the list of acts of the Parliament of Scotland . For acts passed from 1707 to 1800, see the list of acts of the Parliament of Great Britain . See also the list of acts of the Parliament of Ireland . For acts of the devolved parliaments and assemblies in the United Kingdom, see the list of acts of the Scottish Parliament , the list of acts of

280-607: The "rotten boroughs" to London and the counties were defeated in the House of Commons by 248 votes to 174. In the wake of the French Revolution of 1789, Radical organisations such as the London Corresponding Society sprang up to press for parliamentary reform, but as the French Revolutionary Wars developed the government took extensive repressive measures against feared domestic unrest aping

308-417: The 1844 Act, bullionism was institutionalized in Britain, creating a ratio between the gold reserves held by the Bank of England and the notes that the Bank could issue, and limited the issuance by English and Welsh banks of non-gold-backed Bank of England notes to up to £14 million. The Act also placed strict curbs on the issuance of notes by the country banks, barring any new "banks of issue" in any part of

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336-444: The 1866 Overend Gurney crisis . Also, while the act restricted the supply of new notes, it did not restrict the creation of new bank deposits , and these would continue to increase in size over the course of the 19th century. Bank deposits are sums of money that a bank, backed by considerable collateral, may choose to deposit in the holder’s account as a loan which requires repayment with interest. The money comes into existence when

364-637: The Bank of England. The Banking Act 2009 abolished the "weekly return" of the number of banknotes issued by the Bank of England: "Section 6 of the Bank Charter Act 1844 (Bank to produce weekly account) shall cease to have effect". The Cambridge economic historian Charles Read has argued that this legislation reduced Britain's fiscal capacity to pay for humanitarian relief during the Great Famine in Ireland (1845–1852), and that it also made

392-490: The English nobility. Most candidates for the House of Commons were identified as Whigs or Tories , but once elected they formed shifting coalitions of interests rather than dividing along clear party lines. At general elections the vote was restricted in most places to property owners, in constituencies which were out of date and did not reflect the growing importance of manufacturing towns or shifts of population, so that in

420-534: The Northern Ireland Assembly , and the list of acts and measures of Senedd Cymru ; see also the list of acts of the Parliament of Northern Ireland . The number shown after each act's title is its chapter number. Acts passed before 1963 are cited using this number, preceded by the year(s) of the reign during which the relevant parliamentary session was held; thus the Union with Ireland Act 1800

448-660: The United Kingdom are both cited as "41 Geo. 3". Some of these acts have a short title . Some of these acts have never had a short title. Some of these acts have a short title given to them by later acts, such as by the Short Titles Act 1896 . The fourth session of the 14th Parliament of the United Kingdom , which met from 1 February 1844 until 5 September 1844. Parliament of Great Britain List of parliaments of Great Britain The Parliament of Great Britain

476-411: The bank creates the deposit, and when the loan is paid off, the money disappears from the bank’s balance sheet. While a loan is effectively a cash advance provided by the bank to the customer, in the long term the effect of unrestricted creation of bank deposits (money) can lead to inflation in the markets into which that money is channelled, such as the property market through banks' mortgage lending. As

504-573: The democratic and egalitarian ideals of the French Revolution and progress toward reform was stalled for decades. In 1801, the Parliament of the United Kingdom was created when the Kingdom of Great Britain was united with the Kingdom of Ireland to become the United Kingdom of Great Britain and Ireland under the Acts of Union 1800 . Monmouthshire (One County constituency with two members and one single member Borough constituency)

532-612: The electors of Westminster. This included calls for the six points later adopted by the Chartists . The American War of Independence ended in defeat for a foreign policy that sought to prevent the thirteen American colonies from breaking away and forming their own independent nation , something which George III had fervently advocated, and in March 1782 the king was forced to appoint an administration led by his opponents which sought to curb royal patronage. In November of 1783, he took

560-404: The enactment of the treaty of Union which created a new parliament, referred to as the 'Parliament of Great Britain', based in the home of the former English parliament. All of the traditions, procedures, and standing orders of the English parliament were retained, although there is no provision for this within the treaty; furthermore, the incumbent officers and members representing England comprised

588-403: The end of his reign the position of the king's ministers – who discovered that they needed the support of Parliament to enact any major changes – had become central to the role of British governance, and would remain so ever after. During the first half of George III's reign, the monarch still had considerable influence over Parliament, which itself was dominated by the patronage and influence of

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616-486: The end of the 18th century the monarch still had considerable influence over Parliament, which was dominated by the English aristocracy, by means of patronage , but had ceased to exert direct power: for instance, the last occasion on which royal assent was withheld was in 1708 by Queen Anne , even this being done only at the request of her ministers. At general elections the vote was restricted to freeholders and landowners, in constituencies that had changed little since

644-523: The financial crises of 1847, 1857 and 1866 worse than they would otherwise have been. (More traditional explanations for the UK Government's decisions to withhold relief and intervention are given in the article about the famine.) 7 %26 8 Vict. Note that the first parliament of the United Kingdom was held in 1801; parliaments between 1707 and 1800 were either parliaments of Great Britain or of Ireland ). For acts passed up until 1707, see

672-525: The new parliament was, and remains, a contentious issue. After the Hanoverian King George I ascended the British throne in 1714 through the Act of Settlement of 1701 , real power continued to shift away from the monarchy. George was a German ruler, spoke poor English, and remained interested in governing his dominions in continental Europe rather than in Britain. He thus entrusted power to

700-664: The opportunity to use his influence in the House of Lords to defeat a bill to reform the Honourable East India Company , dismissed the government of the day, and appointed William Pitt the Younger to form a new government. Pitt had previously called for Parliament to begin to reform itself, but he did not press for long for reforms the king did not like. Proposals Pitt made in April 1785 to redistribute seats from

728-404: The overwhelming majority of the new body. It was not even considered necessary to hold a new general election. While Scots law and Scottish legislation remained separate, new legislation was thereafter to be enacted by the new parliament, with the exception of that pertaining to private right which could only legislated on for the "evident utility" of the people. England's de facto prominence in

756-403: The rotten and pocket boroughs seats in parliament could be bought from the rich landowners who controlled them, while major cities remained unrepresented. Reformers like William Beckford and Radicals beginning with John Wilkes called for reform of the system. In 1780, a draft programme of reform was drawn up by Charles James Fox and Thomas Brand Hollis and put forward by a sub-committee of

784-562: Was formed in May 1707 following the ratification of the Acts of Union by both the Parliament of England and the Parliament of Scotland . The Acts ratified the treaty of Union which created a new unified Kingdom of Great Britain and created the parliament of Great Britain located in the former home of the English parliament in the Palace of Westminster , near the City of London . This lasted nearly

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