Search results
Results from the WOW.Com Content Network
The British credit crisis of 1772–1773, also known as the crisis of 1772, or the panic of 1772, was a peacetime financial crisis which originated in London and then spread to Scotland and the Dutch Republic. [1] It has been described as the first modern banking crisis faced by the Bank of England. [2]
Crisis of 1763, started in Amsterdam, begun by the collapse of Johann Ernst Gotzkowsky and Leendert Pieter de Neufville's bank, spread to Germany and Scandinavia; British credit crisis of 1772-1773 in London and Amsterdam, begun by the collapse of the bankers Neal, James, Fordyce and Down.
Alexander Fordyce (7 August 1729 [2] – 8 September 1789) was a Scottish banker, centrally involved in the bank run on Neale, James, Fordyce and Down which led to the credit crisis of 1772. He fled abroad and was declared bankrupt, but in time he used the profits from other investments to cover the losses. [3]
Neale, James, Fordyce and Down was a London banking house, established in 1757 by Henry Neale (1713 - 1773), William James, Alexander Fordyce and Richard Down (1734 - 1814). [1] Its collapse in June 1772 precipitated a major banking crisis which included the collapse of almost every private bank in Scotland, and a liquidity crisis in the two ...
10 June – credit crisis of 1772 is triggered when, following the flight of their partner Alexander Fordyce to France, the London banking house of Neal, James, Fordyce and Down (which has been speculating in East India Company stock) suspends payment.
By June 1772 the bank had issued £1.2 million through advances and bills of exchange, around two thirds of the currency of Scotland. [2] [4] Douglas, Heron & Company relied for credit on the London bank Neal, James, Fordyce and Down, which collapsed in the crisis of 1772. Heavily in debt and unable to meet demands for cash on its banknotes ...
British credit crisis of 1772–1773 – started in London and Amsterdam, begun by the collapse of the bankers Neal, James, Fordyce, and Down. War of American Independence Financing Crisis (1776) (United States) – The French monarchy went deeply into debt to finance its 1.4 billion livre support for the colonial rebels; Spain invested 700 ...
The crisis deepened when the Bank of England suspended specie payments on February 25, 1797 under the Bank Restriction Act 1797. The bank's directors feared insolvency when English account holders, who were nervous about a possible French invasion, began withdrawing their deposits in sterling rather than bank notes.