Bagehot

  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