t
permitted the issue of one pound notes for ten years longer, _i.e._,
to 1833.

Trade immediately revived. Labour became abundant, and everyone,
high or low, in the country, felt immediate relief and benefit.
Unfortunately, with the return to prosperity came the usual unwise
rebound in public feeling. Everything became _couleur de rose_. The
wildest joint stock enterprises were projected. Capital, obtained on
easy terms of credit, was forced into every branch of commerce. Trade
was pushed beyond legitimate requirements. Imports of cotton, wine,
and silk increased so far beyond their usual amount, that the rates
of exchange turned against this country. The Bank of England, in
self-defence, "put on the screw." Money invested in distant countries,
in speculative operations, was now badly wanted at home. Suspicion
arose, and confidence was shaken. Merchants, in default of their
usual help from bankers, suspended payment. Bankers themselves, having
depended upon the return of their former advances, were in great
peril. Alarm having become general, there was a simultaneous run for
gold throughout the country, with the result that in a very short time
seventy-nine banks stopped payment, of which no fewer than fifty-nine
became bankrupt. The whole kingdom was in a frightful state of
consternation. Failure followed failure in rapid succession. The
whole circulation of the country was deranged, and at the beginning of
December, 1825, the Bank of England stock of cash amounted only to a
very few thousand pounds.

Ministers were called together in haste, and Cabinet Councils were
daily held. It was decided to issue two millions sterling of Exchequer
bills, upon which the bank was authorised to issue an equal amount of
notes. The bank was also "recommended" to make advances of a further
sum of three millions, upon the security of produce and general
merchandise.

At this moment a fortunate discovery was made which did more to allay
the excitement than the measures just mentioned. The bank had ceased
to issue one pound notes six years before, and it was thought that
they had all been destroyed. Accidentally, and most opportunely,
when things were at the worst, one of the _employes_ of the Bank, in
searching a store-room, found a case of the L1 unissued notes, which
had escaped observation at the time of the destruction. They were at
once issued to the public, by whom they were hailed with delight, as
the first "bit of blue" in