Enlightenment · Europe · Politics

1694

Bank of England Founded

July 27, 1694

A Scottish financier named William Paterson persuaded the cash-strapped English government to charter a joint-stock bank that would lend the king money in exchange for the right to issue banknotes. The Bank of England, with eight hundred shareholders, began operations in Mercers' Hall. Modern public debt was invented, and the financial architecture that would fund Britain's rise to global power was in place.