Note 7 — THIRTY YEARS OF LIBERAL LEGISLATION.

For a few days during the panic consequent on the Mutiny at the Nore, the 3 per cents were at 45, but they soon rose and ranged from 55 to 58. The interest of money never exceeded 5 per cent., and indeed it could not, as the usury laws were then in operation. The issue of one pound notes in sufficient numbers by the Bank of England, after February 1797, soon relieved the distress, extinguished the panic, and brought us triumphantly through the war. The following are the rates of interest and amount of bullion in the Bank of England for thirty years past, which shows how little low interest has to do with the plentiful stores of the precious metals:—

Bullion. Rate of Discount.

1815.—28thFebruary£2,037,000 Five per cent.

1816.—29thFebruary4,641,000 Five per cent.

1820.—29thFebruary4,911,000 Five per cent.

1826.—28thFebruary2,460,000 Five per cent.

1832.—29thFebruary5,293,000 Four per cent.

1837.—28thFebruary4,077,000 Five per cent.

1839.—October2,522,000 Six per cent.

1840.—25thFebruary4,311,000 Five per cent.

1847.—13thNovember9,258,520 Eight per cent. min.

The rate of eight per cent. has not been charged by the Bank of England before for upwards of a century and a quarter.