1694 – 1907 Early Modern Era
1694 Foundations of Modern Central Banking
The Bank of England, established on July 27, 1694, by William Paterson and others, was created to finance the war against France under King William III. With an initial capital of £1.2 million and a royal charter, it became the model for modern central banking, issuing banknotes, managing government debt and setting interest rates to stabilise the economy. Acting as a lender of last resort, it provided liquidity during financial crises, promoting financial stability. The Bank’s role facilitated the Industrial Revolution by creating a stable financial environment, encouraging investment, and effectively managing public debt. It also developed the gilts market and contributed to making London a global financial hub. Over time, it shaped fiscal and monetary policies, controlling inflation and ensuring long-term economic stability. The Bank’s influence extended globally, inspiring the creation of other central banks and shaping modern financial systems.
This stained glass style artwork captures the historical significance and enduring legacy of the Bank of England. The piece vividly depicts the founding moment in 1694 with William Paterson presenting the royal charter, flanked by early shareholders and 17th-century financial symbols. The central section showcases the Bank’s iconic building, symbolising its role as a central bank, seamlessly integrating images of banknotes, coins, and ledgers. The right side illustrates the Bank’s long-term impact through scenes of the Industrial Revolution, including factories, railways, and modern financial symbols like the stock market and global trade icons.
1720 Speculation, Regulation and Reform
The South Sea Bubble of 1720 was a major financial crisis in Britain, arising from the speculative frenzy surrounding the South Sea Company, which was established to manage the national debt and granted a trade monopoly in Spanish South America. Initial success and rampant speculation drove the company’s stock price from £100 to over £1,000 before collapsing in autumn 1720, leading to widespread financial ruin and economic disruption. The bubble’s burst highlighted the need for better financial regulation, resulting in the Bubble Act of 1720, and instilled investor caution. It exposed the risks of privatising government debt, leading to reforms in debt management and financial oversight. Despite its immediate negative impact, the crisis spurred financial innovation and contributed to the development of a more regulated financial system. The South Sea Bubble remains a historical example of the dangers of speculative mania and the importance of robust market regulation.
This digital artwork depicts the dramatic rise and fall of the South Sea Bubble of 1720. The piece seamlessly blends key historical elements, starting with the soaring stock prices and bustling activity of investors against the South Sea Company building. The central focus captures the bubble’s burst with crashing stock prices and panicked investors, symbolising financial ruin. On the left, the British Parliament is shown implementing regulatory measures, while the right side poignantly portrays the economic aftermath.
1825 Crisis and Resilience
The Panic of 1825, often considered the first modern stock market crash, was a significant financial crisis that had far-reaching effects on the UK economy. Fueled by an economic boom and speculative investments in newly independent Latin American countries, the collapse was precipitated by overextended credit and a sudden loss of confidence in these ventures. The crisis led to numerous bank failures, a dramatic stock market crash, and severe economic contraction. The Bank of England’s intervention as a lender of last resort was crucial in stabilising the financial system. The panic prompted regulatory changes, a shift towards more cautious investment practices, and increased public awareness of the risks associated with speculative bubbles. The event underscored the importance of policies.
This artwork depicts the Panic of 1825 through a harmonious and detailed visual narrative. The piece flows from a vibrant left section representing the economic boom with bright colours and intricate designs, to a chaotic middle section with darker, fragmented patterns symbolising financial collapse and panic, and finally to a calming right section with balanced tones illustrating recovery and stability. Key elements include architectural details for prosperity, jagged lines and distressed figures for the collapse, and orderly designs with a depiction of the Bank of England for the recovery.
1846 The Impact of the Corn Laws Repeal
The Abolition of the Corn Laws in 1846 was a pivotal event in British history, marking a shift towards free trade. Prompted by economic pressures, political campaigns by the Anti-Corn Law League, and the humanitarian crisis of the Irish Potato Famine, the repeal was championed by Prime Minister Sir Robert Peel. The immediate effects included lower food prices and enhanced industrial growth, benefiting the working class and reducing labour costs for employers. However, domestic farmers faced increased competition, leading to agricultural innovation. Politically, the repeal caused a split in the Conservative Party and demonstrated the power of public opinion in shaping policy. Socially, it improved living standards for the urban poor and reinforced free trade as a driver of economic prosperity and social progress.
This digital artwork, capturing the Abolition of the Corn Laws in 1846, showcases vibrant scenes of political debate, the Irish Potato Famine, and the resulting free trade and industrial growth. Central figures like Sir Robert Peel, urban workers, and farmers are depicted with dignity, seamlessly blending into a cohesive narrative. Motifs of grain, trade ships, and factories highlight the economic and social transformation.
1873 – 1896 The Long Depression
The Long Depression of 1873-1896 was a period of significant economic stagnation that began with the financial panic of 1873, triggered by bank and stock market collapses. It was characterized by deflation, high unemployment, and widespread bank failures, leading to prolonged economic hardship in Europe and North America. The depression saw falling prices, particularly in agriculture, causing widespread bankruptcies. Social unrest and labour strikes were common, prompting the rise of labour movements and political advocacy for economic reforms. This period also highlighted the limitations of the gold standard and laissez-faire policies, influencing future economic and financial reforms, and laying the groundwork for technological and industrial advancements that spurred later growth.
This image captures the essence of the Long Depression from 1873 to 1896, blending narrative of economic hardship and resilience. On the left, the Panic of 1873 is symbolised by collapsing banks and a descending trend line, leading into the middle section where overexpanded railroads and industries are depicted through broken tracks and towering smokestacks. The right side poignantly portrays a struggling farmer amidst barren fields, representing the plummet in agricultural prices. Above, labour movements and protests are vividly illustrated with raised fists and banners, while the top section features ships and trading routes, indicating the era’s global trade struggles. The muted and sombre colour palette, intricate design, and harmonious composition evoke the period’s economic challenges.
1907 Lessons from Financial Panic
The Panic of 1907 was a stark reminder of the interconnectedness of the global financial system. For the UK, it resulted in immediate financial market declines, pressures on the banking sector, and disruptions in trade. In the long term, it influenced financial policy and regulatory reforms, underscoring the importance of robust financial oversight and international cooperation in maintaining economic stability. The crisis also reinforced the critical role of central banks in managing financial crises and providing stability to the financial system.
This artwork serves as a testament to the enduring legacy of the Panic of 1907, capturing the complexity and interconnectedness of global financial markets through the timeless medium of stained glass. The scene transitions seamlessly from the collapse of the Knickerbocker Trust Company in the foreground, through the pivotal intervention by J.P. Morgan in the middle ground, to the ripple effects reaching the UK in the background. The vibrant colours and harmonious flow are designed to convey the emotions and significant impact of the crisis.
