Lombard Street: A Description of the Money MarketBagehot, Walter
History
Lombard Street: A Description of the Money Market
Bagehot, Walter
Banks and banking -- England -- London; Banks and banking -- Great Britain; Finance -- England -- London; Finance -- Great Britain
told that the father of Pope, the poet, who retired from business in
the City about the time of the Revolution, carried to a retreat in
the country a strong box containing near twenty thousand pounds, and
took out from time to time what was required for household expenses;
and it is highly probable that this was not a solitary case. At
present the quantity of coin which is hoarded by private persons is
so small, that it would, if brought forth, make no perceptible
addition to the circulation. But, in the earlier part of the reign
of William the Third, all the greatest writers on currency were of
opinion that a very considerable mass of gold and silver was hidden
in secret drawers and behind wainscots.
'The natural effect of this state of things was that a crowd of
projectors, ingenious and absurd, honest and knavish, employed
themselves in devising new schemes for the employment of redundant
capital. It was about the year 1688 that the word stockjobber was
first heard in London. In the short space of four years a crowd of
companies, every one of which confidently held out to subscribers
the hope of immense gains, sprang into existence--the Insurance
Company, the Paper Company, the Lutestring Company, the Pearl
Fishery Company, the Glass Bottle Company, the Alum Company, the
Blythe Coal Company, the Swordblade Company. There was a Tapestry
Company, which would soon furnish pretty hangings for all the
parlours of the middle class, and for all the bed-chambers of the
higher. There was a Copper Company, which proposed to explore the
mines of England, and held out a hope that they would prove not less
valuable than those of Potosi. There was a Diving Company, which
undertook to bring up precious effects from shipwrecked vessels, and
which announced that it had laid in a stock of wonderful machines
resembling complete suits of armour. In front of the helmet was a
huge glass eye like that of a Cyclops; and out of the crest went a
pipe through which the air was to be admitted. The whole process was
exhibited on the Thames. Fine gentlemen and fine ladies were invited
to the show, were hospitably regaled, and were delighted by seeing
the divers in their panoply descend into the river and return laden
with old iron and ship's tackle. There was a Greenland Fishing
Company, which could not fail to drive the Dutch whalers and herring
busses out of the Northern Ocean. There was a Tanning Company, which
promised to furnish leather superior to the best that was brought
from Turkey or Russia. There was a society which undertook the
office of giving gentlemen a liberal education on low terms, and
which assumed the sounding name of the Royal Academies Company. In a
pompous advertisement it was announced that the directors of the
Royal Academies Company had engaged the best masters in every branch
of knowledge, and were about to issue twenty thousand tickets at
twenty shillings each. There was to be a lottery--two thousand prizes
Public-domain text, read in full here on John Shaqi.
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