by James Grant
and Bank of England, xxiii
on election bribery, 210
on foreign investment, 246–47
and journalists, 239
political apprenticeship in, 208
and voting franchise, 193
House of Lords, Bagehot’s analysis of, 185, 189
Howe, Julia Ward, “The Battle Hymn of the Republic,” 129
Hubbard, John G., 166
Hume, Joseph, xxviii
Huskisson, William, 6
Hutton, Richard Holt:
Bagehot’s friendship with, 16, 36–37, 65, 85, 230
and Bagehot’s papers, 287
on Bagehot’s writings, 80, 90–91
as Economist editor, 100, 101, 107, 114, 124, 132
and Spectator, 16, 114, 126, 127n, 129, 191n
and UCL seat in Parliament, 230, 231
writing style of, 100–101
Imperial Mercantile Credit Association, 165n
India:
James Wilson’s post in, 107–11, 113
mutiny in, 68, 84, 107, 109, 135–36
sea lane to, 260
silver exports to, 86n
Inns of Court, London, 25, 35
Inquirer, The, 56, 248
“Amicus” writings in, 41–45
Inquiry into the Causes of Money Panics (Smith), 173
interest rates:
and Bank of England, xxi, xxviii, 28, 29, 48, 69, 76, 139, 266
cycles in, 47, 49, 68, 142, 153, 154, 159, 176, 177
discount rate, xxv, xxix, 29, 74, 149, 248
and foreign exchange, xxviii, 142, 254
and gold standard, xxi
Goschen on, xv, 139–42, 154
and limited liability, 140, 142
vs. risks, 247
and speculation, 243
Treasury bonds, xxvi
and U.S. Civil War, 132–34
and usury law, xx
International Financial Company, 142
International Land Credit Company, 142
investments:
bubbles, xxvii, 26–31, 125n, 221, 248, 253, 265
bull and bear markets, 27n, 247, 262
“finance” companies, 142, 143–53, 157, 159, 166
international, 30, 75, 140, 141–42, 246–62
margin of security in, 247, 271
mortgage vs. bill of exchange, 172–73
railroad shares, 27–28
speculative, 26–31, 69, 81, 138, 143–44, 145–46, 243–44, 273
Investors Monthly Manual, 285
Irish potato famine (1845–1846), 31, 74
Irish Protestant Church, 231
Ismail, Khedive of Egypt, 248, 249, 256, 257, 259–60, 261–62
Januarius, Saint, 220
Jefferson, Thomas, 15
Jeffrey, Francis, 61
Jenkins, Roy, 118
Jevons, William Stanley, 98n, 230, 237
Johnson, Samuel, 103
Joint Stock Companies Act (1844), 26, 122
Joint Stock Companies Act (1856; amended 1857, 1858), 195
Joint Stock Discount Company, 157–59
Jones, Frederick, xxviii, xix, xxx
Jones, Loyd & Co., 72, 280n
Joubert, M., 261
J. S. Morgan & Co., 250
Keightley, Thomas, 102, 103
Keynes, John Maynard, 277–78, 287
King, Henry S., 240
King, W. T. C., 144, 146
Kinnaird, Lady, 86
Kynaston, David, 164n
laissez-faire, 32, 87, 113, 139
Lancashire, textile industry in, 48, 153, 181, 202
Landsdowne, Lord, 229
Langport, Somerset, 1–2
eighteenth-century folkways in, 8
religions in, 7–8
as transportation hub, 8
Leeds Banking Company, 157n
lender of last resort:
Bank of England as, xiv, 167–70, 171, 174–75, 186, 266, 267, 268, 278, 279, 280
idea of, xiv, 281, 294
Lesseps, Ferdinand de, 254
Leveson-Gower, George, 235
Levy-Lawson, Edward, 238–39
Lewes, George Henry, 184n, 186
Lewis, Sir George Cornewall, 97, 102, 107, 108, 201, 237
on Bagehot’s writing, 80
as chancellor of the exchequer, 70, 76, 128
death of, 120
and Peel’s Act, 71, 77, 162
Lewis, Mary Anne, 222n
Lidderdale, William, 281
Liebling, A. J., xv
Lieven, Princess, xxvi
limited liability, 138–43, 195, 267, 276
Limited Liability Act, 143
Lincoln, Abraham, 124, 125, 126, 129–32, 135–36, 184
Liverpool, Lord, xxix
Liverpool and Manchester Railway, xxvi-xxvii
Lombard Street (Bagehot), xiv, 178, 188, 271–77, 279, 283, 286
and gold standard, 272, 273n, 277, 281
and Hankey, 163, 186, 276
and modern banking, 278
on nature of panics, 276
purpose of, 276
title of, 272
London and Westminster Bank, 138, 268
London Joint Stock Bank, 138
Long, George, 17–18
Louis-Napoleon, president of France, 39–45
Lowe, Robert, later Viscount Sherbrooke, 97, 102, 194–200, 246
as chancellor of the exchequer, 232, 266, 267
on free markets, 196
and Liberal Party, 186, 193, 196–97, 229, 231
and limited-liability legislation, 267
and reform debates, 193n, 197–99, 200, 202, 203, 204n, 224
and UCL seat in Parliament, 229–30, 231, 232
as Viscount Sherbrooke, 196
Loyd, Lewis, 72
Lubbock, Sir John, 102, 230, 279
Macadam roads, 27
Macaulay, Thomas Babington, 120, 288
MacGregor, Gregor, xxvi
Mackay, Charles, 125
Maconochie, Alexander, 57
Maine, Sir Henry Sumner, 237, 240
Malden, Henry, 17n
Malthus, Rev. Thomas Robert, 154, 240
Manchester, and Bagehot’s run for election, 205–8, 230n, 237
Manchester Guardian, 21, 206
Marlowe, Christopher, 58
Marshall, Alfred, 239, 287
Marx, Karl, xv, 48, 70n, 99
Masson, David, The Life of John Milton, 102–3
McClellan, George B., 129
McCoan, J. Carlile, Egypt Under Ismail, 257, 258–59
McCullogh, John R., 32n, 78
McGovern, William Montgomery, “From Luther to Hitler,” 241n
Merchant Taylors’ Company, 226
Metaphysical Society, 233
Metternich, Prince [Klemens von], xxvi, 67
Mexico, investments in, xxvi
Meynieux family, 38–39
Mill, James, 154, 182
Mill, John Stuart, 32n, 154, 193n, 287
early years of, 182
on election bribery, 210
Principles of Political Economy, 37n, 186–87
on rationalism, 187
Representative Government, 187
on social class, 182–83, 200–201
standing for Parliament, 181–83, 184, 187
on suffrage, 191–92, 200, 227–28
Millwall Ironworks Company, 158
Milton, John, 59, 102–5
Aeropagitica, 103
Paradise Lost, 102, 103
Moltke, Helmuth von, 243
monetary foundation, xviii, xxi, xxx
Monetary Panics and their Remedy (Gassiot), 173
money:
British supply of, xix, 272
cash, 274n
and central banks, 264
and credit, xviii, 175, 176, 264, 269, 273
currency, xv, xx, 25
as gold and silver, xv, xviii, xxvi, 175, 263–64
international (gold), 68,
270
as measure of capital, 47
movement of, 33, 274
as power, 272
ready, 173
in two places at once, 277
universality of “paper money,” 263, 264
value of, xxiii-xxiv
and wealth, xix
Money Market Review, 108–9, 153, 258–59n
moral hazard, 71, 77, 78
Moreton, James, 8
Morgan, Forrest, 292
Morgan, J. P., 250
Morgan, Junius Spencer, 250
Morley, John, 186, 287
Morning Post, 90
Morris, William, 290
mortgages, 143, 279
Napoleon Bonaparte, xx, 39
Napoleonic Wars, 47, 63
National Review:
Bagehot’s essays in, 61, 79, 80, 89, 90, 95, 102, 113, 116, 120, 142
critical reviews in, 90–91
founding of (1855), 90
National Westminster Bank (NatWest), 280
Navigation Acts, 118, 200
Newcastle, Duke of, 118
Newman, John Henry, 237
Newmarch, William, 228
New York Tribune, xv, 70n
Norfolk, Duke of, 19
Norman, George W., 76, 143, 167, 170, 175, 263–66, 273, 278
Norman, Montagu, 167, 277–78
Northcote, Sir Stafford, 289, 290
O’Connell, Daniel, 22
Ohio Life and Trust Company, 67–68
Old Lady of Threadneedle Street, see Bank of England
On the Probable Fall in the Value of Gold (Chevalier), 97
Order in Council (1797), xvii
Osler, Timothy, 16
Ottoman Empire, 248
Overend, Gurney & Co., 76, 81, 144–62
average earnings of, 145, 150
Bagehot’s views on, 154–57, 159, 160–62
Bankers Magazine essay on, 152–53
and Bank of England, 148–49, 160, 166, 167, 266
bankruptcy of, 145, 158
and Black Friday, 160–62, 165, 179, 237
divisions within, 149
downward spiral of, 146, 147, 158, 177
failure of, 161–62, 165–66, 168, 247, 249, 266, 272, 273–74, 284
fraudulent dealings of, 146–48, 152
as limited-liability joint-stock company, 150–52
management incompetency of, 158–59
public offering of, 150–53
speculative loans of, 145–46, 148, 159
Overstone, Samuel Jones Loyd, Lord, 154, 273, 280n
and Bagehot’s essays, 170, 171, 175, 285
on interest rates, 68–69
and limited liability, 142–43
as “Mercator,” 68, 71–72
and Panic of 1857, 72–73, 76–78, 80–81, 95
and Peel’s Act, 71, 74, 78, 80, 81, 142, 265
theory of economic seasons, 95
Oxford, Edward de Vere, 17th Earl of Oxford, 58
Oxford Union Society, 118, 201
Oxford University, 117
Page, Richard, 52
Palgrave, F. T., 184
Pall Mall Gazette, 245, 260
Palmerston, Henry John Temple, 3rd Viscount:
Bagehots’ support of, 11
and foreign investment, 258
government of, 65, 70n, 107, 114, 120, 128, 195, 199
panic:
Bagehot’s definition of, 179, 276
how to avoid, 278
Panic of 1825:
bank failures in, xxx
and Bank of England, xiii-xvi, xvii, xxii, xxviii-xxxi, 167, 266
and foreign exchange, xxx
parliamentary hearings on, xxii-xxiii
and run on banks (1797), xvii, xxviii-xxix, xxx
and Stuckey’s bank, xxxi, 2
Times (London) article about, xxiii, xxviiin
Panic of 1847, 74, 165, 167, 266, 274
Panic of 1857, 68–69, 75–81, 153, 165, 265, 266, 274
Bagehot’s writings on, 91, 92–93
Overstone on, 72–73, 76–78, 80–81, 95
Parliamentary hearings on, 77
post-panic finance, 95, 164
Panic of 1866, see Black Friday
Panic of 1873, 254
Paraguay, investments in, 253, 258
Parliamentary Bank Act, 82
Parr’s Bank, 280
Patton, George, 212, 214, 215, 216–17, 219
Paxton, Joseph, 38
Pease, Joseph, 167
Peel, Sir Robert the Elder, as factory owner, xxiv
Peel, Sir Robert the Younger:
Bagehot’s essay on, 90
and Bank Charter Act, see Peel’s Act
and Corn Laws, 21, 31
Economist on, 31, 32
and monetary question, xxiv, 25
as prime minister, 18, 25–26, 118, 222
Peel’s Act (Bank Charter Act):
and Bank of England, 28, 30, 71–72, 142, 279–80
and Bank Rate, 165
enacted 1844, 26, 30
importance of, 71–74, 80
and interest rates, 28
on issuance of bank notes, 121, 168, 174, 264, 265, 274
opponents of, 31, 32, 70–71, 78, 79, 122, 142–43, 162, 170, 265
parliamentary review of, 70
purpose of, 32, 71, 73, 142
supporters of, 32, 71, 74, 142, 265
suspension of, 74, 77–81, 162, 165, 177, 220, 274, 275
Peru:
guano deposits in, 251–52
investments in, xxvi, 250–52, 258
Peto, Sir S. Morton, 177
Physics and Politics (Bagehot), 185, 234, 240–45, 248, 254
Pitt, William the Elder, fortune of, 2
Pitt, William the Younger:
Bagehot’s essay about, 113
depicted in cartoon, xixn
as Prime Minister, xvii, 6, 59
Plymouth Bank, xxviii
Poe, Edgar Allan, “The Murders in the Rue Morgue,” 105
Pole, Thornton & Co., xxviii
Political Economy Club, 100, 154, 263
Ponzi, Charles, 246
pound:
convertibility of, 31, 74, 77, 265
gold value of, xviii, xix, xx, 71
legal definition of, xix, 71
Poyais, Principality of, fraudulent investment in, xxvi
Preston, Lancashire, labor strike in, 48
Price, Bonamy, 113, 139
Price, Edwin Plumer, 218
Prichard, Dr. (teacher), 10
Principles of Banking, Its Utility and Economy, The (Hankey), 164, 174, 175–78, 272, 278, 279–81
Principles of Political Economy (Mill), 37n, 186–87
Prospective Review, 32
Bagehot’s essays in, 56, 58
Proudhon, Pierre-Joseph, 43
Pynsent, Burton, 2
Quarterly Review, 90
Quekett, William, 7, 9
railroad shares, 37n, 68
burst bubble of, 29, 265
debentures, 28
speculation in, 27–29, 31, 67, 74, 165
Reeve, Henry, 67
Reform Act (1832), 19, 95–96, 180, 182, 201, 202, 210, 231, 288, 294
Reform Act (1867), 141, 184, 227–28, 236, 273
Reform League, 224
Remington typewriter, introduction of, 180
Representation of the People Act (1867), 224n
Representative Government (Mill), 187
Reynolds, John Stuckey, 3
Reynolds, Sir Joshua, 83
Reynolds, Mary Bagehot, 3
Ricardo, David, xxiv, 19, 32n, 33, 154, 182, 265, 287
Richards, John B., xxii
Robins, George Upton, 216
Robinson, Crabbe, 23
Robinson, W. R., 30
Romilly, Sir Samuel, 63
Roscoe, Sir Henry, 17
Roscoe, William Caldwell, 16, 36–37
Rothschild, Baron Lionel de, 260–61
Rothschild, Nathan, xxix
Rowe, Adam, 130n
Royal Bank of Scotland (RBS) Group, 178, 280
Royal British Bank, 138
Royal Mint, and Panic of 1825, xxix
Royal Society fellows, 102
Ruskin, John, 228
Russell, Lord John, 74, 203, 229, 258
Russell, John Scott, 47
Russo-Turkish War (1877–88), 227
S & G Stuckey & Co., see Stuckey’s Banking Company
St. Peter’s Field, Manchester (“Peterloo”), massacre (1819), xxiv–xxv
Salmon, Mr. (Stuckey’s employee), 55–56
Sanderson, Sandeman & Co., 77
Santo Domingo, investment in, 247, 250, 253, 258
Saturday Review, 103n, 117n, 165n, 206
Sawtell, George H., 4, 5, 13
Schumpeter, Joseph, 245
Scott, Sir Walter, 6, 59, 60, 93, 102
Scott, Rev. William, 103n
scrip, 27
Senior, Nassau, 41
Seward, William H., 129
Shaftesbury, Earl of, 197
Shakespeare, William, 58–61, 90
“Venus and Adonis,” 58–59
Shelley, Sir John Villiers, 208–9, 213, 219
Shelley, Percy Bysshe, 23, 105
silkworms, investing in, xxvii
silver, as small change, xviii
Slave Emancipation Act (1833), 163
slavery:
Bagehot’s views on, 124, 126–27, 130–31, 134, 241
and Emancipation Proclamation, 129–32
and U.S. Civil War, 124, 126–32, 181, 183
Smith, Adam, 19, 31, 32n, 287–88
The Wealth of Nations, 276, 287
Smith, John Benjamin, Inquiry into the Causes of Money Panics, 173
Smith, Sydney, 61, 63
Social Statistics (Spencer), 99
Society for the Diffusion of Useful Knowledge, 15
South America, investments in, xxvi, xxvii-xxviii
Southey, Robert, 4
sovereigns, xix, xxi, xxix, 274n
Spain, investment in, 255–56
Spectator, 16, 114, 126, 127n, 129, 191
Spencer, Herbert, 240
Social Statistics, 99
Stanley, Lord, 230, 237
State in its Relations to the Church, The (Gladstone), 119, 120
Statesman, 90
steam power, 27, 68
Stephen, Fitzjames, 230
Stephenson, George, 27
stock market:
and Bank of England, 28, 267
bull and bear markets, 27n, 142, 158
speculation in, 26–31
Stuckey, Julia, 6
Stuckey, Samuel, founder of Stuckey’s bank, 3, 6
Stuckey, Squire of Branscombe, 6
Stuckey, Vincent, 72
on “bankers mortal; banks live forever,” 51, 178
death of, 30
and Julia, 6
in Langport society, 5–6
and Panic of 1825, xxxi
and Pitt, 6
and Stuckey’s bank, xix, xxiii, xxvii, 6, 22n, 51, 53, 55, 274n
Stuckey-Bagehot barges, 8
Stuckey family, 3–6
and Bagehot family, 3