The security officers of the Bank of England were busy in their daily work when a letter from a mysterious letter came their way. The letter was not an ordinary one but something that made officers go weak in their knees. The mysterious sender wanted to reveal a secret about the prestigious institution. He asked the officers to meet him inside the gold vault. The very vault that was shielded with high security. How was he going to reach inside the vault? The officers decided to meet him not knowing a big surprise that was awaiting them.
Began With A Defeat
The Bank of England was founded when the nation’s navy got defeated. There was a Battle of Beachy Head that included dozens of warships taking place on 10 July 1690. It was during the Nine Yetjars’ War- France when France made Dutch and their English allies bite the dust. The French navy sent many ships of enemies to defeat without losing one of their own.
Stronger And Better
It was after that England shifted its focus on making its navy strong enough to face any war. Clearly, they were going to make their new navy stronger than the previous one that made them lose the Battle of Beachy Head. But there was a problem.
No Fund
The plan was ready but they had no fund to invest in its execution. The government led by William III failed to borrow the required £1.2 million ($1.5 million). It was then the government came up with a big plan.
End Of Money Issues
So in order to fight the money issue, the government founded The Bank of England in 1694. The lenders could contribute the money to the bank with cash. They would get bank notes against government bonds. And in less than a couple weeks, William III managed to gather £1.2 million required to make the navy of country stronger.
Citizen Fund
The Bank of England happened to be country’s big turning point. It motivated the citizens to fund the industries that would help in strengthening their navy. The part of this initiative was to boost the agricultural growth of the country and along with that getting started with the ironworks that gave material for manufacturing of ships.
Historical Union
The Kingdoms of England and Scotland united in 1707 and emerged as the Kingdom of Great Britain. Consequently, with an ever-growing industry and helping bank, this newly built state turned out to be very powerful.