On this day - March 1st

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

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

Sun 20 Oct 6:08am  |  hits: 938

As most of you will know by now, there will be no firework display or bonfire this year on November the 5th.But.We are seeking to have the traditional New Years Eve welcome, with the muffled bells of our magnificent St James church ringing out the old year and then, as the clock strikes out the 12th hour of the night, the wonderful firework display over the Square and the new year, 2020...

Wave field In Action
Thu 17 Oct 6:08am  |  hits: 811

Lyceum Square 21 November to 1st DecemberStunning artwork set to light up Cheshire EastWave-Field, a world-famous interactive art installation in the form of illuminated music generating seesaws, is embarking on a tour of the north of England, from October to December.Cheshire East will host it in Lyceum Square, in Crewe, from 21 November until 1 December. This is a free event that will be...

Election logos: Conservatives
Wed 16 Oct 6:09am  |  hits: 799

At a meeting of Eddisbury Conservatives on Tuesday Evening, members were asked to vote on the the followingShould the whip be returned, the Association has confidence in Antoinette — yes or no. Outcome — noEddisbury Conservative Association wish to commence the process of selection of their candidate asap — yes or no. Outcome — yes.In response Antoinette Sandbach has published her...