re made in these years, referring to monetary
transactions.

On the 12th of January there is an entry stating "the Government will
lend the merchants five millions of Exchequer Bills, and the Bank
directors have agreed to advance the money. They will not fund till
June or July, and then only five or six millions." "This," Mr
Montefiore thinks, "is much in favour of stocks."

One of his acquaintance died suddenly at this time, an unfortunate
event which he considered was the fatal result of large speculations.

"These two years," the historian says, "were characterised by an
extraordinary activity in all departments of trade and commerce. Mr
Huskisson, a minister who was a high authority on commercial matters,
originated several important measures, especially those relating to
the repeal of all duties on goods passing between Great Britain and
Ireland, an alteration in the duties affecting the silk manufacture,
and the repeal of the combination laws and of the law against the
emigration of artisans; while the Executive formed commercial
treaties, on the reciprocity system, with various countries in Europe,
and, acknowledging the independence of the revolted Spanish colonies
in America, drew them as additional customers into the British market.

Capital now so far exceeded the ordinary means of its employment, that
many joint-stock companies were formed as a means of giving it a wider
scope. Some of these associations professed objects which were by long
established usage the proper business of individuals alone, and others
involved hazardous and visionary projects to be carried into effect in
remote countries. The depressed state of trade in 1821 and 1822 had
led to a diminished importation and production of goods, and was
succeeded by an advance of prices in 1823. The consequence was a
sudden and unusually large demand and a powerful reaction of supply,
which did not cease till production had far exceeded the bounds of
moderation.

Through the facilities afforded by a large issue of paper money, the
delusion was kept up longer than it would otherwise have been. The
first symptom of something wrong was the turning of the exchange
against England. A diminution of issues at the bank followed.
Merchants began to experience difficulties in meeting pecuniary
obligations. Then took place a run upon the banks, some of which, both
in London and the country, were obliged to stop payment. Between
October 1825 and February 18