Talk:Stop of the Exchequer

About this article

This is an article about the last time England (as a state) has failed to pay it's national debt on time before failing to repay it's war loans to the U.S. around the time of the great depression (due to Germany in turn being unable to pay its war reparations).

The article is still under construction.

Here is the primary source(s) for this article that I'm using:

English Historical Documents, 1660-1714 By Andrew Browning Contributor Andrew Browning Edition: 2, illustrated Published by Routledge, 1996 ISBN 0415143713, 9780415143714 966 pages

pps.352, 353

128. Proclamation announcing the stop of the Exchequer, 1672 (London Gazette, 4-8 January 1672)

On Tuesday the 2nd instant his Majesty, being present in Council, was pleased to declare that seeing all the princes and states his neightbours were making great pre- parations for war, both by sea and land, his Majesty, for the safety of his government and people, looked upon himself as obliged to make such preparations as might be proportionable for the protection both of the one and the other, and to that end had already given orders for the fitting and preparing a very considerable fleet to be ready against the spring; that by this inevitable necessity, his Majesty considering the great charges that must attend such preparations, and after his serious debateds and best considerations not finding any possibility to defray such unusual expenses by the usual ways and means of borrowing moneys, by reason his revenues were so anticipated and engaged, he was necessitated (contrary to his own inclinations), upon these emergencies and for the public safety at the present, to cause a stop to be made of the payment of any moneys now being or to be brought into his Exchequer, for the space of one whole year ending the last day of December next, unto any person or persons whatsoever by virtue of any warrant, securities or orders, whether registered or not registered therein, and payable within that time, excepting only such payments as shall grow due upon orders on the subsidy, according to the Act of Parliament, and orders and securities upon the fee farm rents, both which are to be proceeded upon as if such a stop had never been made.

And that his Majesty's pleasure and declaration might be speedily and effectually put in execution, his Majesty did order Sir Heneage Finch, knight and baronet, his Attorney General, forthwith to prepare a bill for his royal signature, and so to pass the great seal, thereby requiring and commanding the Lords commissioners of his Treasury immediately to order and direct all and every of the officers of his Majesty's Exchequer to postpone all warrants and orders, whether registered or not registered, and other securities and payments whatsoever (except as before esxcepted) until the last day of December next; and that in the meantime that Lords Commissioners of his Treasury be required and authorized to cause payment to be made of the interest that is or shall grow due, at the rate of six pounds per cent, unto every person that shall have money due to him or them upon such warrants, orders or securities so postponed and deferred, and that the payment of such interest may be justly made the Lords Commissioners of his Treasury are to be authorized and required to cause the debt of every particular person, and the said interest thereof, to be truly stated.

And the Lords of his Majesty's Treasury being further to be ordered to employ and dispose of all the said moneys so stopped and detained, for the preparing, setting forth and payment of his Majesty's fleet, and other public services in order to the preservation and safety of his Majesty's government and defence of his people, as his Majesty shall from time to time order and direct, his Majesty, as far as in him lies, to take away all apprehensions or terror that might possess any of his subjects' spirits, declaring that no person whatsoever shall be defrauded of anything that is justly due to him, nor shall this restraint which his Majesty had been compelled (not being able for the present to find any other expedient) to lay upon such moneys as are or shall be paid into his Exchequer continue longer than the aforesaid last day of December, and that then no new warrants, orders or securities shall intervene to break the course of such payments.

And his Majesty was further graciously pleased to declare that nothing could have urged his Majesty to an act of this nature but such a conjuncture of affairs when all the neighbouring princes and states were making such threatening preparations that his government could not be safe without appearing in the same posture.

pp. 353

129. Letter from Richard Langhorne to Lord Hatton on the stop of the Exchequer, 1672 (British Museum, Additional Manuscripts, 29553, f.358)

Epiphany [6 January] 1672

...I could almost wish your lordship here for one day to see the strange amazement and consternation which is amongst our moneyed men upon this occasion, viz., it being resolved that we must immediately set forth a fleet of 22 sail of good ships (to fetch something from France), and prepare for 60 sail of our best ships to be ready early in the spring. his Majesty sent to the bankers in Lombard Street to advance a considerable sum of present moneys. This they refused. Upon this refusal his Majesty by advice of his Council (where it suffered a long debate) resolved to shut up his Exchequer and make stop of all private moneys, by which means all the moneys charged upon the Exchequer and daily issued to the bankers and private persons is stopped and applied to the public use, and all private payments for the present stayed; just as in the case of a private man who, having mortgaged his estate and put the mortgagee into possession, upon disappointment of a further advance from his mortgagee, is enforced to enter upon his mortgagee by the agreement of his tenants, and make use of his rents to buy bread until he can be otherwise supplied. Upon this stop of the Exchequer the bankers can pay no moneys to their creditors, which are all the moneyed men and all the merchants of London. Bills of exchange from foreign parts accepted here cannot be paid, so it is believed this week will return bills into foreign parts protested to the value of 50,000L., and the next week more, and so onwards. but there is no remedy; the public must be served.

In truth the consternation as to this particular is greater than in Chatham business. And though it is probably at the long run no man shall lose, yet I believe it certain that the trade of bankers is totally destroyed by this accident, for no man will ever hereafter run the like hazards when he shall consider upon what contingency he puts moneys into goldsmiths' hands. But withal I think it is as certain that moneys will run more in specie about the kingdom, and securities upon land, as also the price of land, will be more valuable than of late years since the trade of bankers was in vogue...

I've found some more and will add information based on other material as becomes necessary for the article. As the material in question is copyrighted I will be re-writing the information found there in my own words in order not to violate the author's rights. --I (talk) 03:58, 21 January 2009 (UTC)