In this video I’m going to be focusing on some important background information in respect of the beginnings of the Bank of England.
Historical context is crucial to gaining a proper understanding of this operation.
The Monarchy vs the Financiers
There’s a very interesting history regarding the relationship between the Monarchy and the Financiers operating in Britain throughout the 17th century. This relationship can be split into three stages and characterized as being a rivalry, then a capitulation and a collusion. So let’s look at these three stages one by one.
The rivalry - Queen Elizabeth I
The rivalry began at the beginning of the 17th century with Queen Elizabeth I issuing a decree in 1600 making base metal coins minted by the Royal Mint legal tender.
Up until that point the Financiers had, to all intents and purposes, been in charge of the creation of money by dint of the fact that they were producing coins and bank notes.
The Royal decree therefore effectively removed the ability to create currency from the hands of the Financiers. They were no longer in control of the money supply. Needless to say, this move displeased them immeasurably.
The Financiers then set about trying to regain control. They counter-attacked by funding Cromwell and the Parliamentarian cause. To my mind, this has to be considered as a factor which contributed to outbreak of the English Civil Wars – the conflict between the Parliamentarians and the Royalists - which began in 1642.
The ability of monied men to influence importance events in history can not be dismissed as negligible. Money can be turned into a weapon of sorts and used for whatever nefarious purposes so desired. Money was “weaponized” to use a modern day term.
Parliamentarians waged a successful campaign. In 1649, Charles I was captured, charged with treason and beheaded. The Monarchy died with his death and Britain became a Republic – albeit only briefly.
the capitulation - Charles II
In 1660 the Monarchy was restored and Charles II became King, but the Financiers made sure that his powers were limited. His wings were very much clipped.
The Coinage Act of 1666 abolished “siegnorage” - the right of the king to mint a nation’s money. This was a huge step in the Financiers regaining control of the money supply because it meant that anyone with any gold could go to a National Mint and ask for the gold to be made into coins.
The collusion – “William of Orange”
Then in 1689 Prince William of Orange of Holland was crowned king, becoming William III. His claim to the throne of England came via the lineage of his mother who was the daughter of the Charles I.
One noteworthy thing to say about Prince William of Orange was that his invasion of England, the so called “Glorious Revolution”, had backing from Dutch Financiers – most famous of which was Fracisco Lopes Suasso who lent William 2 million Guilders and is alleged to have said, “If thou art victorious, I know you will return it to me.”
