On this day - March 1st

Home » Latest News » On this day - March 1st
Default

Nationalisation of the Bank of England

The post-war Labour government was to be one of the most significant of the 20th century, its innovations including the creation of the NHS and nationalisation of the Bank of England. The latter event crystallised what had been happening for years, the Bank's steady retreat from ordinary commercial operations and its metamorphosis into a body acting in the public interest having been overseen and accelerated by long-serving Governor Montagu Norman, who worked in that role from 1920 to 1944.

The Bank of England Act came into effect on March 1st 1946, and took all the stock of the Bank of England into public ownership in order to: "make provision with respect to the relations between the Treasury, the Bank of England and other banks."

With this action the Bank of England, founded (somewhat ironically) by the Scot William Paterson, which from the outset was set up to lend to the government, became an arm of that government rather than an ally. In some ways the bank had already been a quasi-governmental body, given the monopoly of issuing bank notes in England and Wales (though not Scotland and Northern Ireland).

No change as dramatic would happen to the organisation until May 1997, when another Labour government decided to give the Old Lady of Threadneedle Street the power to set interest rates in Britain, removing that power from political hands.

Your question — in which year was the Bank of England founded?

Click here for the answer

The Bank of England was founded in 1694

popular recent storiesAlso in the news

Village centre
Tue 21 Jan 6:08am  |  hits: 1,007

Rest of the World Cut OffThere have been numerous reports in chatbox and elsewhere about failures in the telephone system (both landline and mobile) throughout the village and surrounding area.Broadband seems to be unaffected.The best description of the problem might be this one from chatboxWe seem to have a Russian Roulette phone service although Internet seems okay. Sometimes we get a...

Adam Lovatt trial
Fri 24 Jan 6:09am  |  hits: 991

Jury fails to reach verdict in Adam Lovatt manslaughter trialAdam Lovatt deathA jury has failed to reach a verdict in a trial of two men charged with the manslaughter over the death of devoted Audlem dad Adam Lovatt.Samuel Thorpe, 24, of Annions Lane, Wybunbury, and Nicholas Hill, 36, of Moorsfield Avenue, Audlem had been on trial at Liverpool Crown Court.But following the 11-day...

St.James Church
Tue 21 Jan 6:09am  |  hits: 879

Rescue St James ChurchI am launching an appeal to help with the fabric of this marvellous and so iconic a building here, dominating the village. The subject of what must be thousands of photographs, postcards and paintings. And such a beautiful edifice. Major repairs are needed and with the full permission of our Vicar, Helen Chantry and the Audlem PCC, this new call for help is to be...