Bank Restriction Act of 1797
Categories: Banking, Regulations, Econ
A bit of ancient history: The Bank Restriction Act 1797 was the act by the Parliament of Great Britain to remove the requirement for the Bank of England to convert bank notes into gold. The period lasted until 1821...then the convertibility requirement was restored. Bank notes were good as gold again. Since then, credit got weaker. Europe became a second world entity, and the world now revolves its credit systems on a handshake and a wink that the borrower will in fact, some day…pay.