Note 1 — Chapter XIV

[On the 12th of November a letter was addressed to the Governors of the Bank of England by Lord Palmerston and Sir George Cornewall Lewis, the Chancellor of the Exchequer, empowering the Bank to exceed the limits prescribed by the Bank Act of 1844 (if necessary) to meet the demands for discount and advances on approved security. This measure was rendered necessary by the extensive failures which had recently taken place, and the severe pressure on the money market. On the 4th November discount had advanced to 9 per cent. The Issue Department made over to the Banking Department two millions in excess of the statutable amount, of which about one million was advanced to the public. On the 1st December the whole amount was repaid. Parliament was summoned to pass a Bill of Indemnity, and public confidence was restored.]