6 x 10.5 Long Title - Cambridge University...

853

Index

Abdullah, Bin Musaid Bin Abdul Rahman, Prince, 565

Abell, George, 49, 56, 366Abs, Herman, 379Accepting Houses,

accounts with Bank, 59ARIEL, 666Bank’s supervision of, 589CCC, 492credit control, 296inter-bank market, 481Rolls-Royce, 787–90secondary banking crisis, 536, 539, 548sterling brokers, 784–5

Accepting Houses Committee, 296, 492, 598

Accountant’s Department, location, 40, 68renamed Registrar’s, 826role, 39staff numbers, 40, 61, 351, 361other, 37, 361

Administration Department, 361Advances,

Bank of England’s, 67, 102, 105, 305, 347, 365, 479, 813

Burmah Oil, 793cartel, 443clearing banks, 82, 85, 89, 91, 93, 102,

109, 119, 252–5, 258, 263, 265, 268–9, 271, 274–7, 280, 284, 292–5, 297, 299–300, 427, 431–7, 439, 488, 490, 497, 521, 526

commodity traders, 324FCI, 321Fairfields, 325–6foreign currency , 525IRC, 324property, 527, 569relation to deposits, 80–1Rolls-Royce, 788–9secondary banking crisis, 534, 541,

543, 548, 552–3, 558, 564, 569, 581other, 207, 795

Advisers Bank, 33, 37, 42, 50–1, 55, 58, 75n, 81,

92, 129–31, 152, 207, 254, 337, 355, 357, 380, 465, 529, 702, 720, 731, 744, 803, 824–6, 829

ministerial, 109, 218, 244, 416, 645, 651, 693, 745, 807

Treasury, 84, 130, 155, 170, 199, 201, 213, 238, 490

other, 358, 373, 417, 443, 537, 567, 606, 678, 698, 738

Adviser(s) to the Governors, 35, 37, 43–4, 48–9, 50, 55, 196, 254, 335, 380, 439, 528, 558, 603, 609

Africa, 3–4, 335, 338Agents, 41, 61, 802Agnelli, Gianni, 379Agricultural Mortgage Corporation

(AMC), 323Akroyd and Smithers, 496Albania, 11Alford, Roger, 130, 676

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Index854

Aliber, Robert, 158Allen, Douglas (Lord Croham)

CCC, 490Monetary Policy Group (MPG), 646report on Bank reorganisation, 824–5,

831sterling, 238, 382–3, 409, 411, 416,

734–5other, 251–2, 430, 433, 460, 462, 489See also Group on Monetary Policy

(Allen Group)Allen, William (Bill), 752n, 754nAllen, Maurice

career, 51, 135control of bank lending, 84–5, 271,

274, 281, 293, 297, 307, 430external, 181, 186, 188, 196, 236, 379–8money supply/DCE, 396–9, 423,

450–1, 453, 455–6, 464Radcliffe, 100, 129–30other, 99n, 266, 291, 344, 442, 462

Allied Arab Bank, 564, 568Altajir Bank, 567–8Al Tajir, Mahdi, 567Althaus, Nigel, 99, 694American Chamber of Commerce, 379,

730American Civil War, 14Amory, Derick Heathcoat, 97–8, 256,

258, 261–4, 593Anderson, Robert B., 161Anderson, Leonall (& Jordan), 464Andrews, Kenneth, 809Anglo International Bank, 556nAnnual Report, Bank of England, 40, 62,

67, 111, 116, 133, 334, 359–60, 614, 809, 812, 821, 824, 830

Ansiaux, Hubert, 236, 241Arab International Bank, 565Argy, Victor, 398ARIEL, 666–7Asset ratios, 297–8Armstrong, Robert (later Lord)

Radcliffe, 77n, 88, 100other, 437, 460, 467

Armstrong, Sir William Bank Rate, 170–1, 236, 293

gilt-edged market, 114, 266, 286monetary policy, 276–7, 437NBPI, 441quantitative targets, 375special deposits, 275, 280Stamp Memorial Lecture, 381sterling, 193, 197, 205, 214, 217, 219,

239, 242, 383, 414other, 187, 212, 298, 353, 593

Artis, Michael, 468Åsbrink, Per, 241Assistant to the Governor, 49–50, 213Audit Committee, 37Audit Department, 37, 361Austin, Robert, 341Australia

sterling balances, 409–10, 413, 733, 735–6

other, 62, 227, 340, 366, 378, 569Authorised banks, 557, 564, 566, 569,

572, 583, 585, 591, 598, 607, 731

Bagehot, Walter, 78, 82Bahrain, 733Bailey, James, 366Bain, Andrew, 130, 289, 450–1, 454, 807Balance of payments

1950s, 153, 1731960s, 13, 170, 173, 176, 179, 195–6,

201, 207, 209, 215, 222–3, 232, 236, 291, 293, 302

1970s, 49, 426, 516, 531, 719, 722, 750, 752, 762

analysis, 22, 396, 402, 417crises, 13DCE, 458, 679devaluation, 245, 376, 380, 381–2, 386EEA, 141economic growth, 221euromarkets, 183exchange control, 209, 213exchange rate, 236, 250, 251historical, 139, 143IMF, 143, 145, 222, 452import surcharge, 209inflation, 714interest rates, 102, 284






Index 855

j-curve, 380monetary approach, 243monetary policy, 459Mundell-Fleming, 21revisions in, 176Robot, 147, 149support for, 248–9sterling balances, 408

Ball, Jim, 760Balogh, Thomas, 109, 196, 219, 244Banco Italo-Britannica, 43Banca d’Italia, 216Bank Buildings, 41Bank Charter Act 1844, 59–60, 65,

67, 811Bank for International Settlements (BIS)

assistance for sterling, 170, 175, 191, 216, 228, 239–42, 377, 382, 391, 749

banking supervision, 626, 628central bank co-operation, 162–3gold market, 158–62, 190, 395statistics, 186sterling balances, 222, 374, 405, 407–9,

756swaps, 203, 223–4, 233, 389, 391view on UK reserves, 194–5other, 50, 58–9, 62, 234, 423, 426

Bank of Canada, 62, 216, 334, 485n, 792Bank of England Act 1946, 34, 45, 49, 56,

61–2, 69, 72, 81, 92, 94, 108, 122, 255, 352–4, 358, 370, 432–3, 589, 780, 821, 823

See also Directive (under 1946 Act) and Finances, Bank of England

Bank of England Act 1998, 371n, 811nBank of England Charter, 34, 45, 55Bank of England Quarterly Bulletin,

see Quarterly BulletinBank of Jamaica, 335n, 337Bank of London and South America

(BOLSA) euromarkets, 185George Bolton, 49–50Maurice Parsons, appointed as

chairman, 403–4merger, 330

Bank of Northern Rhodesia, 335n

Bank of Scotland, 325–6, 329, 505, 539–40

Bank Rate CCC, 509–11, 517crises: 1957, 60, 90, 92, 94, 154, 257–601961, 171–2, 174, 268, 270–31964, 197, 200–2, 221, 292, 2991966, 221, 237–91967 devaluation, 243, 247, 299–300,

378, 384, 469domestic economy, 431, 438, 441external purposes, 78, 139, 169, 174,

176, 178–9, 191, 292, 309, 419, 711, 773

MLR, 509, 680, 683, 686procedure, 37, 58, 60, 63, 118, 122–3,

125, 134, 260–2Radcliffe, 128US consultation, 193other, 65, 79–80, 82–3, 86, 88–9,

102–4, 108, 115, 127, 135, 191–4, 252, 262, 264, 276

see also Bank Rate leak, Minimum Lending Rate

Bank Rate Leak, 37, 47, 76, 91, 96–9, 167, 194, 219, 260, 370

see also Parker TribunalBank Return, The, 67Bank/Treasury relations, see TreasuryBanker, The

banking supervision, 610, 623, 633–4clearing bank mergers, 328, 330exchange-rate policy, 713inflation, 249London as an international financial

centre, 781liquidity ratios, 257monetary policy, 662MLR, 511NBPI, 446Radcliffe, 137, 462secondary banking crisis, 545, 562,

575, 580–1SCNI report 1970, 360SCNI report 1976, 810Wilson Committee, 808






Index856

Bankers Almanac, 598Bankers’ balances

Bank financing, 66–7, 75, 347, 354, 810–1, 813

Bank control, 84monetary base control, 678, 703CCC, 500, 503money markets, 104–5origins, 65payments system, 59

Bankers Club of Chicago, 425Bankers Magazine, The, 137, 462–3Bankhaus Herstatt, 625Banking Act

1979, 588, 611, 617, 629–381987, 638

Banking and Money Markets Supervision (BAMMS), 610–1, 614–6

Banking Bill, 633–4Banking Department, 60, 106, 111, 287,

321, 325, 359, 400, 795, 811–2, 824, 826

separation from Issue Department, 59–60

Banking school, 44, 51Banking Study Group, 443Banking supervision

1950s and 1960s, 62, 588–98action after secondary banking crisis,

605–10Banking Act 1979, 629–38Basle Committee, (also Blunden

Committee, Cooke Committee), 625ff

Basle Concordat, 627ffclubs, 588concordat (Richardson/Healey), 629EC banking directive, 598–605Groupe de Contact, 625informal, 62international co-operation, 625–8legislation, 618fflicensing and supervision of deposit-

taking institutions, white paper, 593–4, 598, 602–33

overseas banks, 595, 598, 614prudential returns, 611–16

self-regulation, 590, 609, 625single-tier, 604two-tier, 604–5, 622, 624, 634, 638see also Discount Office, fringe banks,

secondary banking crisisBanque Commerciale de l’Europe du

Nord, 183Banque de France, 241, 379, 758Banque Pommier, 568Barber, Anthony

Leslie O’Brien, 518monetary policy, 491, 504, 511, 520–2Radcliffe, 127Rolls-Royce, 787, 790other, 324, 570, 593, 606

Barclaycard, 435Barclays Bank

Edward Bates (EBS), 565, 567–8merger with Lloyds, 440merger with Martins Bank, 327–9secondary banking crisis, 535–7,

539–41, 547, 549, 552, 554other, 266, 275, 435, 762

Bardsley, Donald, 532–3Baring crisis 1891, 65, 536, 585Baring Brothers (Barings)

financial advisers to Burmah Oil, 792–3

Rowley Cromer, 168, 226, 379Barnes, Roger

banking supervision, 602–3, 608, 612, 616

Controlling Committee (Lifeboat), 540, 543

Crown Agents, 636EBS Investments, 568

Barron’s Weekly, 544Basle Agreements or Basle Arrangements

1961, 164, 175, 2481968, 416, 428, 732

Basle Committee, see banking supervision

Basle Concordat, 627Batini, Nicoletta, (and Edward

Nelson), 28Baumgartner, Wilfrid, 379Beale, Percival, 51–2






Index 857

Beenstock, Michael, 652Belgium, 189Bell, Geoffrey, 399, 423n, 450Bell, Tom, 219Benelux, 406Benson, Henry (later Lord Benson), 558,

803, 805Berman, Lawrence, 450Bernard, Dallas, 44Beveridge, Lord, 126Bicester, Lord (Vivian Hugh Smith, 1st

Lord Bicester), 47–8, 96Biffen, John, 397Birch, Nigel, 94Blessing, Karl, 214, 240–1, 420–1Bill Office, 39Blunden, George

banking supervision, 610–5, 617–8, 620, 624–6, 633, 781

reorganisation of bank structure, 823–6

secondary banking crisis, 545, 556, 559, 570, 583–5

other, 53, 62, 288, 366, 636, 774, 810–1Blunden/Cooke Committee, 625–6Board of Trade

banking supervision, 63, 591–3, 595–7, 617

clearing bank disclosure, 445–6Fairfields, 326hire purchase, 264, 273, 435other, 88, 115, 198, 329, 344see also Department of Trade,

Department of Trade and IndustryBolton, George

career, 45, 48–50CDFC, 319–20, 326euromarkets, 182, 185floating sterling and convertibility, 147,

155–6view on Bank’s Radcliffe evidence, 101other, 33, 96, 162, 168n, 403

Bond Worth, 806Bonn Conference (1968), 420–2Book of Common Prayer, 833Boothby, Lord, 83, 86, 125, 266Boulter, John, 402, 467

Bowmakers, 535Boyle, Edward, 170Bradman, Don, 366Bradshaw, Edward, 731–2Branches, Bank of England

criticism of rebuilding costs, 359, 816Law Courts, 816–7rebuilding, 347, 351staff numbers, 361, 770other, 38, 41, 61, 336, 354, 356, 802

Brandt, Peter, 565Brau, Ed, 703Brearley, Simon, 612Bretton Woods Agreements, 4, 25,

50, 138–9, 142, 144–5, 158, 164, 187, 249, 373, 422, 707, 710–1, 739, 771

Bridge, Roy career, 32, 52, 153, 403–5devaluation, 199, 218–9, 235, 239,

247–8, 378–80, 431flexible rates, 152, 154–5gold, 158–61, 225nsterling, 165–6, 177, 202, 216–7, 220,

244–5, 384, 386, 389, 415other, 345, 423n, 713, 716

Bridgeman Group, 654–5, 658, 666, 692, 754

Bridgeman, Michael, 654, 693, 754Bridges, Sir Edward, 73, 85–6, 109Brimmer, Andrew, 425British Association for the Advancement

of Science, 344British Bankers’ Association (BBA), 598,

611, 629British Bank of Commerce, 535British Chambers of Commerce, 344British economy

IMF, 177investment, 213openness, 12, 502performance, 6–14, 139, 149, 173, 198,

208, 380–1British Gas Corporation, 727British Linen Bank, 329British Leyland Motor Corporation, 791British Match, 99






Index858

British Petroleum (BP) sale of shares, 755–6, 797–8Bank’s shares transferred to Treasury

in 1981, 791, 801other, 355, 719see also Burmah Oil

British Steel, 726Brittan, Samuel, 150, 404, 414, 649, 689,

760Britton, Andrew, 458Brookings Institution, 380Brown, A.J., 652Brown, George, 200, 236, 290, 294Browne, Percy, 593–4Bruce-Gardyne, Jock, 397Brunet, Jacques, 241Brunner, Karl, 464Bucks, Michael, 332Bull, Peter A., 220Bull, Peter J., 336, 351, 738Bullion Office, 39Bulwer-Lytton, Hermione, 44Bundesbank, Deutsche, 214, 420–2, 766Bundy, McGeorge, 214Burmah Oil Company

Bank’s rescue operation, 774, 791–7, 829

Bank’s purchase of Burmah’s BP shares, 793–4

legal action against bank by shareholders, 797–801

Burnham, Peter, 149nBurns, Arthur, 749, 757Burns, Terry, 701, 760Burston Finance, 553Butler, Rab, 82–3, 109, 147, 593Byatt, Derrick, 744, 761

Cadbury, Lawrence, 36n, 45, 47, 167n, 369

Cadbury Brothers, 366Cairncross, Alec

devaluation, 196–7, 199, 239, 245, 374exchange controls, 419, 767IMF, 375, 396–7, 453monetary policy, 79, 83, 170, 172,

429n, 450

Radcliffe, 87, 112, 119, 121–2, 134other, 130, 193, 423

Cairncross, Frances, 462Callaghan, James

1964 crisis, 200, 204–51976 crisis, 750–1, 753appointment of O’Brien, 227Bank Rate/MLR, 201–2, 670n, 683,

685decimalisation, 346devaluation, 240–2, 373exchange rate, 745Fairfields, 326gilt-edged market, 691, 693monetary policy, 290–4, 299–302, 305,

439Wilson Committee, 806other, 225, 358, 441, 443, 631, 634, 697,

766Canada

central bank publication, 62floating exchange rate, 148n, 422other, 161, 334, 377, 412, 464n, 677

Capital Agicultural Mortgage Corporation

(AMC), 323Bank of England, 34, 72, 562capital adequacy/ratios, 549, 551,

596–7, 612, 614, 620–1, 623, 727, 820

CDFC, 319–20EEA, 142ICFC, 322–3

Capital gains tax (1965), 292, 493Capital Issues Committee, 551Caplan, Gerald, 531–4, 546–7Carli, Guido, 216, 241Carlisle, Tony, 53n, 130, 432, 453, 647,

649Carrington, Lord, 789Cartel, see clearing banksCassell, Frank, 490, 646n, 652, 741Cassell, Gustav, 27Cash ratio, 28–9, 80, 254, 275, 301, 398,

448–9, 488–9, 502, 675, 677, 689, 695, 832

Cash ratio deposit scheme, 64






Index 859

Cash deposits scheme, 305–10, 438, 484, 486, 488

Catto, Lord, 34, 36, 43, 52, 168Cedar Holdings, 523, 534–5, 537, 539Ceilings on advances

98%, 430–2, 436–7100%, 308, 378, 427–8104%, 428105%, 296, 298, 300–2abandonment, 438as a control, 252, 300–1, 309, 438CCC, 485, 487–8, 490, 501, 508, 514–5disaffection with, 300, 427, 484finance houses, 432loopholes, 435reduction in, 258Regulation Q, 185resumption of, 292, 298other, 377, 443, 461, 479, 519, 521–2,

647–8Central Banking and Information

Department (CBID) created, 128–9, 823disbanded, 361

Central bank co-operation, 162–6, 175, 185, 193, 207, 217, 227, 248

Central banks, Bank of England work for, 37, 59

Central Bank of Nigeria, 337Central Bank of Uganda, 336Central banks, overseas – Bank’s

promotion of, 62, 318, 334–40Central Government Borrowing

Requirement (CGBR), 693Central Policy Review Staff (CPRS),

781–2Central Statistical Office, 131Certificates of Deposit (CDs), 234, 481–2,

520, 529–30, 687, 719, 785Chancellor’s Group on Monetary Policy,

291–2Chartered Institute of Public Finance and

Accountancy, 658nCheap money, 65–6Chemical Bank, 168Chequers, 172, 201Chicago School, 20, 453, 472

Chief Cashier reduction in role, 823–5, 828role, 37, 51, 55, 262, 361, 609see also Jasper Hollom, John Fforde,

John Page, Kenneth Peppiatt, Leslie O’Brien

Chief Cashier’s Office (CCO), 37–8, 55, 298, 304, 486, 668

Churchill, Sir Winston, 36City Code, 331–2City, the

Bank Rate leak, 96, 98Bank’s relationship with, 38, 47, 61,

125, 169, 264, 268, 318, 327–34, 441, 489, 524, 585, 590, 636, 773, 779, 790, 809–10

CCC, 501, 507exchange controls, 210industrial finance, 11, 213, 788–9,

802–6London as an international financial

centre, 82, 137, 226, 331, 333, 339, 345, 440, 755, 780–5, 795

Radcliffe, 117–8, 121relations with HMT, 194, 226sterling, 156, 249, 743other, 11, 53, 63, 168, 186, 271, 807–8see also Rolls-Royce, secondary

banking crisis, Wilson CommitteeCity Liaison Committee, 543, 782, 784City Panel on Takeovers and Mergers,

331, 354City Press, The, 556City University

Graduate Business Centre, 801nother, 685, 764

Clappier, Bernard, 758Clarke, Donald, 323Clarke, Hilton

disclosure, 445exemptions under Protection of

Depositors Act, 594Radcliffe, 104Treasury bill tender, 278, 287other, 32, 52, 130, 296, 305, 590

Clarke, Otto, 147Clarke, William, 96n






Index860

Clearing bank/s cartel, 275, 443, 479, 485–8, 508, 524courted by DTI, 782loan to Government, 762profitability, 445, 585squeeze on profits, 275–6secondary banking crisis, 539–40, 543other, 44, 207, 255, 263, 296, 330, 431,

493, 519,see also, Barclays, cartel, CLCB,

Lloyds, mergers, Midland, National Westminster

Clegg, Sir Cuthbert, 327Clews, Roger, 458Clyde Port Authority, 795nCobbold, Cameron Fromanteel

career, 166–9central bank co-operation, 165, 170,

189, 227, 335–6control of bank lending, 170, 172,

253–7, 268, 593Radcliffe, 77, 83–102, 107–12, 122–4,

128, 132–4sterling, 151, 156, 165other, 32, 41, 42–4, 52, 54, 72–33, 176,

331, 341, 476, 733, 766, 832Coghlan, Richard, 689Cohen Committee (on company law),

445Coleby, Tony, 53n, 484, 564, 667–8, 670,

677, 826‘collective approach’, see convertibilityColwyn Report, 327Commercial bills, 294–5, 297, 434, 479,

499, 507, 585, 718, 833Committee of London Clearing Banks

(CLCB) banking supervision, 598, 611, 629CCC, 491, 503–4, 507disclosure, 446Equity Capital for Industry, 805minimum liquidity ratio, 280–1paper on London as a financial centre,

783reduction in rate of interest on special

deposits, 433

restrictions on advances, 269, 292, 294, 298, 300, 429

secondary banking crisis, 539, 549special deposits, 91, 255, 263–4supplementary special deposits, 521other, 459

Committee of Treasury, 36–7, 47, 72, 110, 123, 260–1, 342–3, 369

Committee of Twenty (C20), 714, 737–40

Commodity market loans, 334–5Commodity markets, 334–5, 768Commodity shunting, 150Common Agricultural Policy, 647Common Market, 5, 12, 180, 379, 407

See also European Economic Community

Commonwealth, the, 39, 50, 59, 62, 63n, 123, 151, 157, 296, 319–20, 338–40, 527, 750

Commonwealth Central Banking Summer School, 339

Commonwealth Development Finance Company (CDFC), 61, 319–21, 323, 326, 354

Companies Act(s) 1948, 67, 445, 560, 591, 593, 620, 7961967, 596–7Other, 528

Competition in banking, 269, 288, 295, 427, 482, 484, 587–8, 593, 634, 637, 674, 687

Competition and Credit Control (CCC) assessment, 522–3bankers’ balances, 811banking supervision, 598–600, 604,

607, 637consultations, 499, 502–7, 676end of, 832gilt-edged market, 394, 492–8, 513,

664–5impact on interest rates, 509, 511,

517–8, 520–1in operation, 508ff, 644–5, 677introduction of, 488, 507liability management, 672–4






Index 861

money market, 288, 498–9origins, 427, 492, 646, 686press reaction to, 501reappraisal, 514–7, 520–1role in the secondary banking crisis,

524–6, 529, 531, 585Rolls-Royce crisis, 788seminar in the Bank, 501–2special deposits, 511, 672–3Treasury reaction, 490–1, 774See also minimum lending rate,

Andrew Crockett, John FfordeCompton, Sir Edmund, 84, 94Comptroller and Auditor General, 73Computers (use in the Bank), 351, 356–7,

815–6Congdon, Tim, 662Conolly, Frederick, 194–5Conservative Government

1970–4, 483, 487, 519, 786n1979–83, 644, 698, 768, 770, 772, 831

Consolidated Goldfields, 767Constitution and structure, Bank of

England, 34–42, 57, 101, 108–10, 779–80

Consumer Credit Bill, 602, 607Continental Illinois, 767Contingency plans (for sterling)

Androcles, 414Bootstrap, 414Brandon, 414, 418Brutus, 413, 415Conqueror, 414Cranmer, 413, 416Galileo, 414Hecuba, 411, 413–4, 416, 418Orestes, 414Palinurus, 414Priam, 413, 416Proteus, 414Telemachus, 413

Controls consumer credit control, 461, 483–4,

491, 508, 651import, 151, 428, 430lliquidity control, 614

price, 16, 651, 712ratio control, 298, 485, 699use of, 3, 81–3, 85, 89, 119, 174, 221,

252–3, 256, 262–3, 292, 296, 298, 307, 309, 427, 432, 437, 439, 467, 482–5, 489, 491, 500, 519, 521–3, 525–6, 588, 651, 686–8, 699, 773, 781

see also advances, ceilings, exchange control, hire purchase

Controlling Committee, see LifeboatConvertibility

1947, 139, 146, 2491958, 145, 154, 156–7‘collective approach’, 150debate in the 1950s, 143–4, 147,

149–52, 155eurodollar market, 183exchange controls, 172George Bolton, 49gold convertibility, 49interwar years, 140, 145–6sterling balances, 22, 414US dollar, 388, 422see also Robot plan

Cooke and Bull report (on sterling), 220Cooke, Peter

banking supervision, 570, 584, 603, 614–5, 629–32, 634

City Panel, 331–2‘Cooke and Bull’ report, 220Cooke Committee (Basle Committee

of Supervisors), 625, 627–8decimalisation, 345nKahn Report, 219other, 782, 826

Coombs, Charles Bridge, 404euromarkets, 184exchange market ‘bear squeeze’, 215,

217gold, 161, 188–9international exchange rates, 418sterling, 193, 201–3, 209, 215–6sterling devaluation, 240–1, 378, 421swaps, 166






Index862

Coombs, Herbert, 226Co-operative Wholesale Society (CWS),

530–1Cooper Brothers & Lybrand, 327, 555–6,

611, 788–9, 803Cooper, Patrick Ashley, 43, 45Cooper, Richard, 380Coopey, Richard, 323Copisarow, Alcon, 356–7Cork, Kenneth, 537Cornhill Consolidated, 544Cornwall Equities, 563Corpus Christi College, Cambridge, 33,

44‘Corset’, see Supplementary Special

DepositsCounterparts approach, 28–9, 401, 649,

679Court of Directors

appointment process, 36, 369Bank Rate leak, 95–6, 98–9decision on Bank Rate, 36, 63, 123–4,

260–1Radcliffe, 109, 115, 122–3remuneration, 55–6responsibilities and role, 34–5, 47–8,

584, 590, 776structure and composition, 35–6, 45–7,

359, 366–71see also Bank Rate leak, executive

directors, part-time directorsCoutts, 48, 595Coyne, James E., 134nCramp, Tony, 130, 398, 449–50Craik, Ian, 612Crawford, Malcolm, 751–2Credit counterparts, 28Credit policy, 296, 307, 429, 433Credit restraint, 268Credit squeeze, 86, 255, 423, 431, 436Credit Trading Bill, 62, 592Crick, Leslie, 380Cripps, Stafford, 44Crisis, 1976 sterling

Crawford letter, 751–2IMF mission and negotiations, 752ffJune 1976 standby, 658, 749

letter of intent, 645, 671, 683, 756, 760Nigerian selling, 743, 746pressure on sterling in March, 742–6recovery from, 697, 759–66see also sterling balances

Crockett, Andrew CCC, 488–90career, 130, 338IMF seminar, 396, 458money, 398, 401–2, 463–4, 468‘The importance of money’, 452, 464

Croham, Lord see Douglas AllenCromer, Rowley (3rd Earl of Cromer)

Bank Rate, 193, 197, 271, 277, 293banking system, 330–1, 440, 445, 594career, 166–8, 366, 518ceilings, 292, 296, 298, 300euromarkets, 187, 424, 760gilt-edged market operations, 282,

284–6liquidity ratio, 280–1special deposits, 272, 274, 294sterling

1961, 170, 172, 175, 176, 2681964, 199–2081965, 214, 216–8other, 199, 211, 222–3

Treasury bill tender syndicate, 278other, 64, 128, 132, 178, 270, 278,

290–1, 324–5, 336, 352, 441, 443, 476, 828–9

Croom-Johnson, see Crown AgentsCrosland, Anthony, 87, 329Crouch, Robert L., 136, 289, 398, 448–9Crown Agents

Croom-Johnson, 636–7, 830–1Fay Report, 529, 635–6move into banking business, 527–9secondary banking crisis, 553–6,

569–70, 581Stevenson Report, 528, 635, 830–1

Crowther Report (on consumer credit), 491, 602

Cuban missile crisis, 180, 285Cubbage, Michael, 341Cuckney, John, 554–5Currency boards, 335






Index 863

Currency and Bank Notes Act, 60Cycles, 9–10, 208

Daane, J. Dewey, 240–1Dahrendorf, Ralf, 807Daily Mail, 168Daily Mirror, 233, 355, 365–6, 531Daily Telegraph, The, 83, 97, 118Dalton, Hugh, 34, 43–4, 109, 133Daniell, Peter, 474n, 492–7, 497, 500Dascombe, Arthur, 96–8Davenport, Nicholas, 117Davies, Denzil, 630, 632–3Davies, Gavyn, 693Davies, Howard, 369Davies, Jack, 366Dawkins, Douglas, 767–70, 826Day, Professor Alan, 150–1Day, Robin, 169Dealing and Accounts Office, 39, 52, 152,

160Dear money, 83Debden, see Printing WorksDebt management

objectives, 107–8and monetary policy, 115, 126, 135–6,

251–2, 466–7, 687, 692Radcliffe, 113other, 291see also gilt-edged market

Decimalisation, 343–6Deflation, 15, 82, 135, 377–8, 719Deflationary measures, 209, 224, 265,

299, 378, 421, 430De L’Isle, Lord, 537Dell, Edmund, 741, 745–6, 794De Moubray, Guy, 62, 286, 339, 357,

448–9, 450nDeming, Fred, 420nDeming Group, 420Denmark, 418Department of Economic Affairs (DEA),

130, 238, 290Department of Trade

banking supervision legislation, 617, 620London and County Securities, 546Slater Walker, 560

Department of Trade and Industry (DTI), banking supervision legislation, 506,

602, 604, 606–7London as a financial centre, 782other, 325, 506

Deposit insurance, 618, 620Deposit-taking institutions, 578, 596,

602–3, 605, 607, 613, 618–9, 622–3, 633

Deputy Governor see Humphrey Mynors, Jasper Hollom,

Kit McMahon, Leslie O’Brien, Maurice Parsons

Deutsche Bank, 379Deutsche mark (DM), see West GermanyDevaluation

1949, 145, 147, 198, 249, 372French, 1948, 145, 196

1958, 1961969, 418, 420

FU committee, 217–8, 237j-curve, 372Labour opposed, 248planning for, 217ff, 223, 225prospect of further, 380, 382, 412–3, 715talk of in 1964, 198, 203–4, 206, 208,

211, 214–5Devaluation, 1967

aftermath, 372, 378–80, 382, 393, 420announcement, 243, 374as solution, 372associated measures, 241, 308, 396,

402, 406–7, 412balance of payments, 376Bank’s view, 199, 223, 237, 373, 377BIS view, 241consequences, 333fears of further, 378–80, 382, 413floating, 237forward intervention, 244, 731, 745gilts and money markets, 460, 477Gold Pool, 393inevitability, 235–6, 239, 241j-curve, 372money supply, 397reserves, 389, 391, 406, 407, 412sterling crisis, 198






Index864

sterling holders, 373, 405support for sterling, 228, 239–40, 243timing, 239, 243, 247US view, 241War Book, 218other, 403–4, 482

Dibbs, Alex, 533–4Dicks-Mireaux, Leslie, 130, 357, 397,

458–9, 463, 468Dillon, Douglas, 177, 188Directive (under 1946 Act), 81–2, 92,

432–3Disclosure, by clearing banks, 67, 354,

393, 441–2, 444–7, 551Discount houses

asset portfolios, CCC, 499, 502, 516control of credit, 295–6, 430discount market, 102–4MLR, 516–7, 683role, 79–80, 82, 104, 287–9, 305, 309,

477–8, 482and short-maturity gilts, 497supervision of, 62, 589, 594other, 38, 59, 130, 374, 446

Discount Office end of, 361, 609–10secondary banking crisis, 526, 542,

569, 578work of, 38, 62, 104, 278, 296, 305, 434,

479, 590–1, 596–7, 599, 601, 605–7, 611, 616

Discount market, 58, 82, 100, 103–4, 118, 239, 277–8, 295, 299, 305, 434, 478, 482, 498, 502–3, 515, 517, 585, 683, 697, see also London Discount Market Association

Dividend Pay and Loans Office, 39Dollar, Canadian, 422Dollar, US

Burmah Oil, 792–6certificates of deposit, 481convertibility, 386devaluation, 161, 164, 422–3, 710, 717defence of, 249dollar holdings, 217, 228, 233–5, 276,

383, 386, 419, 422

dollar standard, 144euromarkets, 182–6, 191, 479, 762gold anchor, 157gold market, 394gold reserves, 138gold shortage, 138IMF, 165international reserve, 395pressure on, 138, 372, 379, 415, 716–7,

761price of gold, 158, 160–1, 187, 189,

395, 710stabilization fund, 141sterling area, 146sterling balances, 409, 735, 736support for, 421, 717swaps, 166UK devaluation, 147, 196, 203, 213,

243other, 708, 715, 717, 719, 721, 733

Domestic credit expansion (DCE) 1968–70, 376, 399–402, 452–3, 456–60,

463, 4661976 target, 645, 659, 671, 679, 755apparent death of, 649article in the Quarterly Bulletin, 452gilt sales, 670IMF, 463IMF Seminar, 396, 398, 452–3, 458Polak, Jacques, 396, 398, 401, 456, 459other, 482, 489, 494, 667, 692, 704, 748,

754, 831see also money supply

Donoughue, Bernard, 745Dow, Christopher

career, 647exchange rate, 712n, 720, 763–4, 765monetary base control, 689monetary policy, 648, 653–7, 677, 686other, 119, 381, 615, 775–6, 778, 825–6

Down, Alastair, 792, 794, 799–800Downey, Gordon, 552Downing Street, 199, 202, 215Draconis, 670, 751Drawing Office, 39, 332, 598Dresdner Bank, 762Duck, Nigel, 675, 688–9Dyson, Jim, 540

Devaluation (cont.)






Index 865

Eagle Star Insurance Company, 533–4, 553Earmarking, 159nEBS Investments (EBSI), 568Eccleston, Harry, 342Economica, 450Economic Intelligence Department (EID)

formation of, 128, 823reorganisation, 357, 361other, 129, 363, 397, 439, 451, 454, 460,

481, 486, 648, 689, 705, 824Economic Journal, 448, 651, 688Economic Trends, 232, 456, 458Economist, The, 98, 105, 154, 158, 159n,

226–7, 501, 507, 527, 536, 623, 658Economists

Bank, 51, 54, 99, 128–9, 134, 447, 452, 653, 706, 826

devaluation, 214financial stability, 424Treasury, 199, 213, 716Keynesian, 20long haired, 474Radcliffe, 87–8, 90, 100, 110–1, 116–7,

119–20, 124, 128, 184other, 2, 6, 27, 33, 135, 148, 459, 463,

501, 668, 676, 754, 760, 777, 779E. D. Sassoon Banking Corporation, 569Edward Bates and Sons/Holdings, 525,

556, 564–8, 571, 581, 615see also EBS Investments

Eichengreen, Barry, 142, 245Einzig, Paul, 184Eire, 340Elasticity pessimism, 712Electricity Council, 535, 727Emminger, Otmar, 420, 422Equity Capital for Industry Limited

(ECI), 804–6Erskine, Murray, 569Establishment Department, 37, 39, 357,

361Eton College, 42, 47, 98, 130, 560Euro-currency market, 374, 423, 426,

584, 731Eurodollar borrowing, by HMG, 727,

736, 763Eurodollars, 50, 183–6, 424–6, 439, 479,

516

Euromarkets, 182–7, 423–6European Economic Community (EEC)

banking directive, see banking supervision

committee of twenty, 737European Union, 4exchange control, 767, 769Groupe de Contact, see banking

supervisionharmonisation of monetary

instruments, 648–9, 678IMF Special Drawing Rights, 420monetary base control, 689negotiations over UK entry, 180, 237,

284, 390, 406, 418sterling in the 1970s, 711, 714, 717Treaty of Rome, 4–5

European Free Trade Area (EFTA), 12European Monetary Union (EMU)/

European Monetary System (EMS), 764, 766, 769

European Payments Union (EPU), 50, 144, 148, 151, 157, 163

European Union, see European Economic Community

Evening News, The, 430, 808Evening Standard, 260, 271Exchange control

abolition, 766, 772–3, 783Alec Cairncross, 419authorised banks, 591Bank’s management of, 38–9, 41, 50,

57, 59, 108, 122, 210, 338Bank staff employed, 40, 59, 212, 361,

611Bank’s view on, 172, 173, 210–2costs of management, 67, 73, 74, 212,

347, 351, 353, 359Exchange Control Act 1947, 39, 59, 591Hayek, 212in support of sterling/reserves, 767Kahn, 220overseas investment, 213Radcliffe, 116relaxation, 768SCNI, 358sterling area, 146, 711sterling contingency plans, 44, 415, 418






Index866

SSDs, 700–1use of, 21, 59, 151, 157, 172, 174, 191,

206, 209–12, 223, 333, 372, 391, 406, 418, 713, 719, 731

Exchange control, other countries, 141, 144, 248

Exchange Control and Overseas, 38–9Exchange Control Department, creation

of, 361Exchange Equalisation Account (EEA)

Bank’s management, 38, 57, 59, 108, 707

costs of management, 67, 73, 352–3, 359, 812

purpose and operation, 22, 60–1, 141–2, 206, 219, 358, 712, 731

Exchange Rate 1979 Conservative government, 831Committee of Twenty, 8, 737Common Agricultural Policy, 648depreciation, 149, 740–1devaluation, 237, 245effective rate, 708, 736exchange controls, 767fixed rates, 21–2, 137, 416, 422, 447,

710, 737, 765fixed vs. floating, 237flexible rates, 21, 151, 237, 416IMF, 749, 756inflation, 19, 137, 760, 764management, 11, 18misalignment, 2and monetary policy, 19, 684–5, 705,

742ff, 760, 773parity, 139, 148pegged rates, 5, 19, 21–2, 25, 139ff,

143, 145, 147, 152, 173, 251, 396, 426, 508, 711–2, 714, 737, 765

policy, 22, 105, 691, 705, 711, 712ff, 732, 740, 741–2, 749, 763, 764, 831

real rates, 709, 763regimes, 19, 139, 417–8, 423responsibility between Bank and

Treasury, 19, 707, 712stabilisation, 684sterling balances, 222, 405, 735–6

wider bands, 22, 154, 472, 767see also floating exchange rate, forward

intervention, snakeExecutive Director, UK, IMF (and

alternate), 167–8, 178, 336, 377, 738, 741

Executive Directors, Bank of England remuneration, 56, 365role, 32, 37, 48–9, 361, 366, 369, 777,

809, 823–5SCNI, 359, 369–70

Exim Bank/Eximbank, 203, 215, 235n

Fabian Society, 809Facial hair, 49Fairfields (Fairfield Shipbuilding and

Engineering Co), 325–6, 333, 353–4Fairfield Rowan, 326Farrant, Richard, 616, 633Faulkner, Eric, 491–2, 518, 530, 549, 787Fay, Judge Edgar, 529, 635–6Fay Report, see Crown AgentsFederal Reserve/Fed

FOMC, 209, 418sterling devaluation, 243, 247, 249, 378swap facilities, 197, 203, 222, 228, 377,

383–4other, 25, 27, 51, 140, 159n, 161, 165–6,

193, 214, 234, 242, 369, 417–8, 424, 426, 456, 712, 738, 749, 777

Federal Reserve Bank of New York (FRBNY), 160, 162, 188, 465, 749

Federal Reserve Bulletin, 90Feldman, Marty, 474Fenton, Roy

working party on re-fixing sterling, 714–5

other, 333, 336–7, 379, 405, 731Ferras, Gabriel, 222Fforde, John

Bank of England Annual Report, 133Bank of England independence, 177Bank of England Quarterly Bulletin,

131Bank Rate, 92, 171, 238, 428banking supervision, 63, 590, 592,

600–8, 612, 617, 619–21, 630, 637

Exchange control (cont.)






Index 867

banking system, 330–1, 439, 440career, 51, 701–2, 826cash deposits scheme, 307–8, 439ceilings, 300, 309, 428–9, 432–4, 521clearing banks’ disclosure, 446CCC, 485–90, 494–5, 505–6, 514DCE, 402gilt-edged market operations, 302,

469–74, 477, 494, 497–8, 669, 691–3Grand Old Duke of York, 669industrial finance, 791, 806Keogh, 580, 590MLR, 509, 669–70money, 451, 463, 669–70money market operations, 305, 477–9,

502monetary policy, 649, 655–6, 687, 689,

695–6, 698, 703monetary targets, 658–9, 687–8public relations, 777Radcliffe, 85, 100reserve asset ratio, 675reserve currency, 182, 406Rolls-Royce, 488, 787–8secondary banking crisis, 549, 559, 637special deposits, 301sterling, 408, 715–6other, 44, 94, 130, 165, 237–8, 380, 397,

405, 437, 600, 636, 676, 695, 782, 799, 807

Fiat money, 5Fiduciary issue, 60, 340, 505Figgures, Frank, 410, 432, 437, 473, 490Films, about the Bank, 76n, 776Finances, Bank of England

bankers’ balances, 66–7, 75, 347, 354, 810–1, 813

capital, 34, 72, 562cash ratio deposit scheme, 64charges to government, 64, 73–5,

351–4, 813–4‘dividend’ payment to HMT, 72, 347,

351, 353–4, 774, 812, 819–20, 830expenditure, 41n, 67–70, 72, 74, 347,

351, 354, 359, 810–3, 815–7income, 61, 64–8, 72, 346–7, 354, 359,

811, 813–4, 817

profits, 67, 69–72, 74–6, 351–4, 359, 774, 810–12, 817–22

reserves, 67–8, 70, 72, 347, 353–4, 359, 795, 811–2, 817, 819–21

Finance Corporation for Industry (FCI), 320–4, 354, 540, 803–4

Finance For Industry (FFI), 322, 804Finance houses, 62, 269–70, 297–8, 302,

330, 430, 432, 485–6, 491–2, 500, 506, 522, 578, 593, 598–9, 612

Finance Houses Association (FHA), 270, 429n, 432, 492, 506, 593–5, 612–3, 629

Financial Times, 14, 127–8, 360, 544–5, 551, 649, 678, 686, 689, 768, 770

Finch, David 1976 crisis, 748–9, 752–5monetary base control, 659, 676, 678,

703Finvest, 528First Arabian Corporation, 565–6First National City Bank, 481First National Finance Corporation

(FNFC), 533–5, 546–8, 552–3, 572Fiscal agent, 177Fisher, Irving, 27, 78Fisher, John, 50, 58, 254Fleming, Marcus, 21–2Flemming, John, 826Floating exchange rate

1950s discussion, 146–56breakdown of Bretton Woods, 422,

710nCCC, 508devaluation, 218–9, 237–8, 372, 379exchange control, 419exchange-rate policy, 708, 712–3, 715,

718, 742, 765forward exchange, 730gilts, 513interwar, 142, 146managed, 140, 142monetary policy, 704–5, 721, 831Radcliffe, 87schemes for, 181, 187, 196sterling area, 405, 413–8theory, 6, 22, 721






Index868

Foot, Michael, 698, 704Forbes, Archibald, 429, 491–2, 503–4,

538, 787–8Ford, Gerald (US President), 753Ford Motor Credit Company, 296Foreign banks in London, 226, 269, 328,

492, 612, 780–1, 784Foreign-currency Bonds, 757–8Foreign-currency borrowing, 210, 391,

721, 723, 726–7, 757–8Foreign Exchange Committee (FEC), 784Foreign Exchange and Currency Deposit

Brokers’ Association (FECDBA), 784–5

Foreign Exchange Division (see Gold and Foreign Exchange Office)

Foreign exchange intervention 1968–71, 384–9, 415–61970s, 712, 714–5, 720, 722–3, 761,

763, 7671976, 740, 743, 746–8, 750policy, 764, 772, 773spot intervention, 732other, 174, 684, 711, 739see also forward intervention, swaps,

sterling crisesForeign exchange markets

bear squeeze, 215, 217, 220closed, 712, 717forward market, 107, 157, 198, 205–6,

730, 732Roy Bridge comments, 245, 713state of/conditions in, 191, 203, 206–8,

412, 417, 420, 477, 530, 717, 750, 760

tactics, 174, 731–2, 746–7other, 58, 177, 489, 707, 722, 809see also forward intervention, Foreign

Exchange Committee, swapsForeign exchange reserves

adequacy, 174, 195, 382balance of payments, 13, 139, 174, 250composition, 188, 389–91contingency planning, 413devaluation, 243, 382dollar portfolio, 228, 233–5euromarkets, 183

exchange controls, 59, 209exchange rate in 1970s, 707, 715,

718–20, 745–6, 749floating rate, 219, 415forward intervention, 205–6, 245, 732increases in, 179, 191, 220, 382, 386,

388, 419, 720–1, 760, 762–3, 772manipulation of, 166, 229–33, 235,

373, 389, 721–3pressure on, 153–4, 175–6, 202, 205,

215–6, 224, 236–8, 243, 383, 720Robot, 148sterling area, 145, 378, 407–9, 411, 413,

714, 734–5other, 28, 59, 207–8, 732, 771See also Cecil King, Gold Pool, swaps

Forsyth, John, 669nForth Port Authority, 795nForward intervention

1964–67, 205–6, 244–5, 731, 7731970s, 731–2oversold position, 236, 244–5profits/losses, 244–5view of Radcliffe, 206

Fowler, Henry, 215–6, 383, 421France

Bank courses, 340Bonn meeting 1968, 420–2capital controls, 769devaluation 1948, 145devaluation, 1957, 153devaluation 1958, 196devaluation 1969, 386, 418economic planning, 290Gold Pool, 189, 225, 394–5sterling agreements, 412, 758support for sterling, 215–7wine, 415other, 14, 142, 180, 568, 692

Franklin National Bank, 625Franks, Sir Oliver (later Lord Franks)

candidate for Governor, 167–8Radcliffe, 88other, 91, 255, 264, 268–9

Fraser, Ian, 806Fratianni, Michele, 678French Revolution, 14






Index 869

Freshfields, 606, 798Friedman, Milton, 20, 23, 136, 142, 186,

402, 417n, 447, 451, 468, 474, 676, 751

Frimpong-Ansah, Jonathan, 738Fringe banks, 278, 525–8, 534, 537, 544,

547, 554, 570, 575, 578–80, 599, 605–7, 611, 613, 637

Fringe Banks Standing Committee, 535–6

Fry, Richard, 99n, 219FU Committee, see devaluationFunctions, Bank of England, 56–64, 101,

589

Gaitskell, Hugh, 109, 110nGalpin, Rodney

banking supervision, 590, 600, 606, 610, 612, 615, 621

Crown Agents, 554, 636Edward Bates, 565, 567restructuring of Bank, 826secondary banking crisis, 533, 546Slater Walker, 558Treasury bill syndicate, 498–9Wallace Brothers, 571

Gatekeeper, 63Geddes, Reay

Industrial Reorganisation Committee, 324

Shipbuilding Inquiry, 325–6General Agreements to Borrow (GAB),

164, 175, 181, 201, 374, 403General Agreement on Tariffs and Trade

(GATT), 3, 50, 151Germany, see West GermanyGeorge, Edward (Eddie, later Lord), 56,

693, 695, 698, 702, 738, 826Gerrard and Reid, 589Gilbert, Milton, 222Gilletts, 130Gill, Malcolm, 53, 220, 612, 620, 629–30,

830Gilmour, Ian, 147nGilt-edged market

ARIEL, 666–7Bank’s views in 1960s, 471–5

CCC, 484, 488–9, 492–6, 497–9, 500–1, 508, 513–4

conversions, 105, 113criticism of Bank, 448, 662Fforde’s views on, 470–1Grand Old Duke of York, 669interest rates, 282–6maturity profile, 283, 303–4, 475, 496ministerial interest in, 691–4market tactics, 1960s, 265–8, 302–4,

468–77, 492–3market tactics, 1970s, 664–70origins, 104–7over-subscription, 303, 694–5Radcliffe, 89, 102, 107–8, 114, 116tap stocks, 106–7, 285, 302, 469–71,

476, 497, 500, 660, 668, 689, 694Watling Street, battle/siege of, 694–5other, 48, 58, 102, 194, 251, 263, 274,

280, 381, 399–400, 460, 467, 520, 680, 699–700, 703, 774, 809, 824, 826

See also debt managementGlyn Mills, 47, 329, 366, 595Godber, Lord, 319Gold, Joseph, 164Gold and Foreign Exchange Office, 713Gold convertibility, 138Gold market, London, 158–9, 161–2,

180–1, 188–90, 224, 374, 383, 393–5Gold Pool

collapse, 145, 372, 374, 392, 393–6earmarking, 159nFrench withdrawal, 225, 394–5operation, 162, 187–90, 224–5, 248gold reserves,

Gold robbery, 60nGold standard, 15, 25, 78, 105, 138,

140–1, 143–4, 784Goldman, Samuel, 193, 211, 308, 446, 507Goldsmith, James, 559–60, 562Gonville and Caius College, Cambridge,

519Goode, Richard, 375, 381Goodhart, Charles

career, 130, 172CCC, 491, 521






Index870

DCE, 399, 400, 453, 456, 457, 458gilt-edged market, 668, 689monetary policy, 646, 647, 655, 656,

676–8, 686monetary targets, 657, 658, 671, 687monetary base control, 676, 688, 754money supply, 455, 467, 649, 652, 679‘The importance of money’, 452, 464–6Radcliffe, 117reserve asset ratio, 674, 675SSDs, 521, 674, 687other, 357, 398, 399, 455, 459, 460, 464,

468, 469, 654, 668, 670, 673, 676, 696, 698, 701, 704, 721, 767, 807, 826

Goodhart’s law, 400nGoodson, Harry, 496Gordon, Charles, 535, 580Gordon Riots, 63Gore Browne, Tommy, 494Gorton, John, (Australian prime

minister), 410Goschen Rule, 191, 192nGovernment Bonds, see gilt-edgedGovernment Broker

CCC, 492–7, 500, 513evidence given to Radcliffe, 101, 107–8role, 63, 106, 265, 469–71, 473–4, 689other, 99, 102, 662, 666, 694see also Mullens & Co.

Government budget constraint, 20–1Governor

appointment, 48, 52, 369remuneration, 55–6, 363also see Cameron Cobbold, Gordon

Richardson, Leslie O’Brien, Rowley Cromer

Graduate recruitment, 41, 53–4, 130, 363, 366, 447

Grafftey-Smith, Jeremy ‘Jinx’, 569Graham, Andrew, 807Graham, Stuart, 540, 549Great Depression, 2, 79, 140, 142, 183n,

234nGreece, 11Greenwells, 458, 676

Griffiths, Brian, 289, 462, 502, 685n, 698–9, 810

Grindlays Bank, 760Group of Ten (G10), 214–6, 242, 375,

419, 421, 426, 614–5, 625, 710, 737, 762

Group on Monetary Policy, 437, 465, 467, 485–6

Guardian, The, 525nGuernsey, 300, 562Guevara, Che (Ernesto), xix Guilder, 422Guindey, Guillaume, 159Gurkha Regiment, 63nGuth, Wilfried, 379Guy Butler & Co., 287

Hall, Frank, 600, 602Hall, Richard, 335n, 526Hall, Robert, 84–5, 88, 94, 121, 135, 155,

170, 172Hallett, Richard, 335n, 716, 718, 788Halsbury, Lord, 345, 366Halsbury Committee, 345, 366Hambro, Charles, 43, 45, 47, 110, 124,

330, 369, 425, 560Hambro, Jack, 43Hambros (Bank), 47, 533, 560, 564, 566,

730Hamburger, Michael, 468Hanbury-Williams, John, 44–5, 47, 110,

168, 369Hancock, David, 768Hansard, 134Hansen, Alvin, 2Harcourt, Lord, 88, 124, 167Harrod, Roy, 119–20, 135, 161, 168, 186,

380Harmood Banner, 532Haslam, Eric, 335, 338, 378Haw Par, 558–9Hawker, Cyril, 49, 56, 113, 263, 445Hayek, Friedrich von, 78n, 211Hayes, Alfred, 160–1, 168, 193, 235,

240–1Healey, Denis

1976 crisis, 749–51, 753, 755

Goodhart, Charles (cont.)






Index 871

Burmah rescue, 792, 797, 800eurodollar loan, 727exchange rate, 742, 744–5gilts, 684, 691–2money supply, 654, 657–9, 679MLR, 670, 683proposed banking legislation, 622Slater Walker, 563special deposits/SSDs, 660, 688view of economics, 702other, 519, 523, 829

Heasman, Roy, 128–9, 220, 298, 357Heath, Edward

gilt-edged market, 513relationship with Leslie O’Brien, 518,

787other, 520, 521n, 523, 645

Heath Government, 523, 526, 644, 788, 804

see also Conservative government, 1970–4

Hedley-Miller, Mary, 391, 752Henderson, David, 20Henderson, Hubert, 135Henry Thornton Lecture, 764Herstatt

failure, 548, 625and foreign exchange losses, 730–1

Hill Samuel exposure to Herstatt failure, 731failed merger with Slater Walker, 559other, 532

Hire purchase controls refrigerators, 273other, 83, 108, 113, 170, 209, 252, 258,

262–5, 268–9, 273, 292, 294, 296, 378, 430, 435, 491, 522, 535, 647

Hirsch, Fred, 249, 420nHoar, Stanley, 319Hollom, Sir Jasper

assistance to commodity traders, 333Bank of England finances 75, 353–4,

820–2Bank of England Quarterly Bulletin, 132banking supervision, 301banking system, 329, 445–66Burmah Oil, 793–801

career, 32, 52, 826, 829CCC, 485, 496, 507credit control, 292, 296, 308, 435Crown Agents, 528, 554, 636gilt-edged market operations, 114, 302,

304, 473–5, 496, 498illness of Maurice Parsons, 404industrial finance, 319, 804liquidity ratio, 279–81Mersey Docks and Harbour Board, 791money, 397, 508money market operations, 276, 288–9,

299, 499Rolls-Royce, 787SCOOP, 529, 530secondary banking crisis, 535–42, 549,

557, 560, 572, 584, 654special deposits, 263, 275use of Bank Rate, 238, 294Wilson Committee, 807other, 97, 100, 197, 343, 353, 358, 380,

415, 437, 448, 716, 801, 808–10Holtrop, Marius, 28, 216, 222, 379Hong Kong, 409, 558, 735, 750Hongkong and Shanghai Banking

Corporation, 337Hooley, Frank, 562, 577Hoover, Herbert (US President), 234nHotson, Anthony, 698Houblon, Sir John, 99n, 226Houblon Tankard, 99Houblon-Norman Fund, 51, 129House of Commons, 133, 356, 376, 699,

755Houthakker, Hendrik, 417Hove Conference (seminar), 459, 461–4Howe, Geoffrey

exchange control, 768–70Minister of Trade, 606other, 698–701, 765, 832

Hydro Conduit Corporation, 767Hyperinflation, 2

Iklé, Max, 165, 216Import controls, see controlsIncomes and Corporation Taxes Act 597,

1970






Index872

Incomes policy Bank’s view, 270, 291, 508, 653pay pause, 270scepticism about value, 223used in effort to control inflation, 137,

174, 249, 252, 283, 284, 373, 644, 651, 697, 705, 716, 741

Independence, Bank of England Bank’s finances, 64, 811–2, 819, 822banking supervision, 618, 773case for 16, 21, 26, 169exchange rate, 744, 746interest rates, 225, 685London as financial centre, 774nineteenth century, 773Radcliffe, 109, 114, 121reconsideration of in 1970s, 775–6,

778–9secondary banking crisis, 584threats to, 359, 482tradition of, 34Wilson, 370

India, 44, 52, 87n, 147, 154, 568, 758Industrial and Commercial Finance

Corporation (ICFC), 320, 322–4, 354, 802–4

see also FCI, FFI (3i)Industrial finance, 318, 774, 801–4, 808,

826Industrial Finance Unit (IFU), 774, 803Industrial Reorganisation Corporation

(IRC), 324–5, 354, 786, 803–4Inflation

1950s, 82–3, 86, 137, 1541960s, 5, 23, 373, 6451970s, 483–4, 510, 513–4, 645–6, 648Bank’s finances, 354, 583clearing banks’ capital, 551control, 21, 93, 252, 256, 258, 467, 831cost-push, 6, 173, 270, 291, 466, 652devaluation, 378, 402exchange rate, 137, 144, 154, 173,

714–6, 720, 764expectations, 22, 24–6, 154, 283, 469,

645, 648euromarkets, 374, 423fixed exchange rate, 22, 422

hyperinflation, 2incomes policy, 249, 270, 291, 644,

651, 653interest rates, 283, 310, 468, 513, 662monetary policy, 6, 16, 19, 402–3,

653–4, 678, 698–9money growth, 25, 79, 463, 508, 522,

652, 657–9, 832output, 7, 16sources, 83, 124, 137, 508, 705stagflation, 6, 10, 484unemployment, 20, 23, 26, 373, 751United States, 158, 395, 705other, 15, 21, 26, 179, 226, 261, 267,

282, 365, 394, 468, 526, 547, 662, 668–9, 693, 701, 703, 811

Inland Revenue, 597, 782Institute of Bankers, 57, 339, 578Institute of Bankers in Scotland, 671nInstitutional Shareholders Committee

(ISC), 802Inter-bank market, 287, 479–81, 516, 520,

529, 675, 780, 785Inter-Bank Research Organisation

(IBRO), 781Interest Bearing Eligible Liabilities

(IBELs), 522, 649, 659, 674, 687–8, 700

Interest Equalisation Tax (United States), 185

Interest rates Bank setting, 118, 126, 225, 438banks’ cartel, 500Bank’s finances, 347, 354CCC, 491, 508, 513–5, 520–3controls, 25, 29–30euromarkets, 183expectations, 398, 669, 689fringe banks, 525, 529, 534gilts, 105, 106, 473–4, 477, 496, 689inter-bank, 520interest-rate policy, 104–5, 118, 137,

284, 309–10, 376, 399, 470, 477, 482, 490, 644–6, 684–5, 704, 717

international differential, 193, 222, 239, 261, 276, 761, 767

international cooperation, 171, 228






Index 873

investment, 82, 135, 199, 647, 720long-term, 19, 105, 112, 267, 470monetary analysis, 19–20monetary policy, 19, 25, 51, 66, 427,

438, 477, 653–4, 680–7money, 24, 79, 136, 450, 653, 662, 687,

697, 700Radcliffe, 112, 135, 199, 461, 466real, 86, 126, 402short-term 104, 486, 489, 672–3, 686structure, 105, 112, 135–6, 283, 297sterling, 22, 105, 205, 647, 684, 720,

744see also Bank Rate, Minimum Lending

RateInternational Clearing Union, 143International monetarism, 15, 760International Monetary Fund (IMF)

1976 crisis and negotiations, 657–62, 737–48

beginnings, 3, 139, 143–5Bank of England account, 39ceilings on lending, 298, 302, 429conditionality, 178, 372–81, 450–9, 715Committee of Twenty, 737–8DCE targets, 396–401, 462devaluation 1967, 235ff, 374euromarkets, 186exchange rate, 139floating rates, 379, 715foreign exchange reserves, 379, 715General Agreements to Borrow, 164,

374Gilts, 381, 470, 474–5, 660gold price, 160, 162gold crisis, 393international monetary system, 181,

187, 736memorandum of understanding, 399monetary base control, 659, 675, 689monetary targets, 703, 762oil facility, 719, 737Robot, 148, 150secondments to, 49–51, 62, 167–8,

336–7seminars, 397–400, 455, 458, 464–5,

470–2

Smithsonian, 711Special Drawing Rights, 420, 719staff Papers, 28sterling balances, 407, 417, 436, 736sterling convertibility, 157support for sterling, 165, 170, 174–81,

191, 197–8, 209, 228, 241, 248, 715International monetary reform, 419–23,

714, 717see Committee of Twenty, Bonn

Conference, SDRsIran, borrowing from, 727Irish leak, 434–5Irmler, Heinrich, 420Israel-British Bank, 548, 625Issue Department, 60, 67, 90, 106–8,

113–4, 141, 302–3, 469–70, 492, 675, 793–5, 801, 811

Issue Department deposits, 675Italy, 11, 145, 189, 241, 340, 717, 769

J-curve, 380Jacobsson, Per, 164, 177–8, 187, 337, 345nJacomb, Sir Martin, 580James, Henry, 657nJapan,

support for sterling, 240, 377, 412other, 4, 11–2, 157, 738

Jay, Douglas, 125, 127, 198, 290Jay, Peter, 125, 410, 454, 474, 662n, 751n,

760Jenkin, Patrick, 799Jenkins Committee (on Company Law),

445Jenkins, Hugh, 537Jenkins, Roy

Brutus, 415controls on bank lending, 431, 436, 438DCE, 400–1disclosure of central bank assistance,

393gilt-edged market, 474–5SCNI, 358sterling, 373, 376, 382other, 329, 421

Jessel, D.C.G., 478Joge, Sven, 408






Index874

John Brown and Co., 403Johnian Society, 702Johns, Douglas, 590nJohnson, Burton, 537Johnson, H.G. (Harry), 111, 417, 459–60,

462–3Johnson, Lyndon B. (US President), 193,

199, 214–5, 240, 242, 420Johnson Matthey failure, 583n, 638Joint Standing Committee (JSC), 784–5Jones, Aubrey, 291, 379, 441–2, 651Jones, William, 88Jordan, Jerry, 464J.P. Morgan, 168

Kafka, Alexandre, 738Kahn, Lord,

Report on sterling 1966, 219–20Report on sterling 1971, 220costs of sterling crises, 228, 243, 245

Kaldor, Nicholas, 105, 218–9, 238, 396, 651Kearton, Sir Frank, 324Kennedy, John F. (US President), 160,

162, 181, 276Kennington, Ivor, 560Kent, Pen, 752Keogh, James (Jim)

blame for the secondary banking crisis, 579–80, 590, 605, 609–10, 830

Crown Agents, 528, 636Fringe banks, 526, 578–9, 637Fringe Banks Standing Committee,

535–6London and County, 532–4Slater Walker, 557Wallace Brothers, 569other, 305, 434, 540, 545, 606, 788

Keswick, William, 45, 96–7Keynes, John Maynard (Lord), 50, 79–80,

110, 119, 135, 143, 181, 453Keynesian economics, 6, 19–21, 23, 44,

79–80, 134, 381, 454, 647, 696, 712Keyser Ullman, 533–4, 548Kidder Peabody, 168Kindersley, Lord (Robert) (1st Baron

Kindersley), 45, 47, 96–7, 99, 166, 366

King, Cecil claim that Leslie O’Brien was sacked,

518claim to have been offered post of

Governor, 227reserves and resignation, 233, 366,

379–80value of payment to non-executive

directors, 56King, Wilfred, 120, 257Kinross, John, 323Kings Arms Yard, 41Kirbyshire, John, 53n, 380, 670, 738Knobl, Adalbert, 703Knowles and Foster, 204Kondratieff cycle, 10Korean War, 3, 13Kuwait, 409, 733, 735Kynaston, David, 538n, 572, 771

Labour Government 1945–50, 341964–70, 198, 207, 225, 233, 248, 250,

324, 440, 443, 8121974–79, 712, 742, 770

Laidler, David, 468Latin America, 3, 380, 415Law Courts Branch, 41, 590n, 816–7Lawson, Nigel, 768, 770Layton, Derrick, 720Lazards, 96, 806Lee, Sir Frank

Bank Rate, 261, 272exchange control, 173gilt-edged market, 266–7, 284Gold Pool, 189special deposits, 262, 264other, 47n, 130, 172, 276, 352–3

Legh, Piers, 211–2Leigh-Pemberton, Robert (Robin), 567,

638Lender of last resort, 1, 24, 30, 57, 65, 78,

82, 503, 585–8, 799Lend Lease, 50, 143Letter of Intent

1965, 4501967, 374–6, 397






Index 875

1969, 4001976, 645, 671, 756, 760

Leutweiler, Fritz, 408Lever, Harold

gilt-edged market, 691–2money, 397, 670, 679other, 410, 806

Leyland Motors, 556Liability management, 672–4Libya, 258, 413Lifeboat, see secondary banking crisisLiquidity ratio, 27–8, 81, 84–5, 89, 94–5,

252, 254, 257, 278–82, 297, 301, 309, 399, 437, 448, 485–6, 488–9, 507, 524, 585, 648

Lithiby, John, 50Littler, Geoffrey, 738, 749, 754, 821Lloyd, Charles, 96Lloyd, Selwyn, 172, 268, 270, 272–3, 284,

345Lloyds & BOLSA International, 330Lloyds Bank

bank mergers, 327–8, 440Rolls-Royce, 787–8, 790secondary banking crisis, 530, 535,

539–40, 552other, 55, 88, 219, 266, 491, 740

Lloyds Bank Review, 154Lloyds Lugano, 548, 625Local authority money markets, 301, 479,

481, 507, 781, 813Local authorities/authority, 108, 203, 391,

723Loehnis, Anthony, 776–8, 825–6Lombard Banking, 595Lombard Street, 192nLondon, see City, theLondon and County Securities, 523,

531–5, 545–6, 552, 581, 605London Business School, 652, 701, 706,

760London Discount Market Association

(LDMA) CCC, 492, 497, 499credit control, 295devaluation, 477–8MLR, 515

money market operations, 299, 685Treasury bill tender, 103, 278, 287–8,

502–3other, 474, 666see also, discount market, and money

marketLondon Gazette, 67London School of Economics (LSE), 51,

81, 87, 120, 130, 358, 369, 676, 807London Stock Exchange, 63, 105, 239,

332, 492, 496–7, 510, 532, 535, 566, 666–7, 806

Lovell, Arnold, 396, 453Luce, John, 53n, 439, 448, 529Luxembourg, 565, 625, 766Lyall, William, 540

M3- see money growthMacdonald, Donald, 216MacDougall, Donald, 149, 199, 437MacGillivray, Greville, 337MacLeod, Iain, 376Macmillan Committee, 83, 85, 87, 111,

135–6, 318, 399Macmillan, Harold

monetary policy, 81, 93, 172, 265, 284Radcliffe, 83, 122sacks the Chancellor, 270, 273other, 84, 96, 167, 193

Machine Tool Trades Association, 258Mais Lecture, 685, 764Mais, Lord, 685nMcDowall, Jack, 439Makins, Sir Roger, 86, 100, 108, 123, 157,

262McKinsey & Co, 355–8Mallett, David, 568, 612nMalta, 413Malaysia, 409, 411–3, 733Management consultants, see McKinseyManagement Development Division, 357Management Services Department, 357Manchester Guardian, The, 99,

see also The GuardianMandel, Hans, 216Manila, 750Manser, William, 248–9






Index876

Mansion House speeches October 1958, 156October 1959, 128October 1967, 442October 1968, 454–5October 1969, 402October 1970, 467October 1973, 646, 802, 804October 1975, 654October 1976, 670reproduced in the Bulletin, 132other, 169, 402

Marshall Plan, 3, 143–5, 183Martin, William Chesney, 161, 165, 168,

193–4, 214, 240–2, 378, 419Martins Bank, 327–9Matthews, Pat, 533–4Maudling, Reginald, 181, 270, 273, 282,

592Masonic Lodge, 56Meade, James, 146, 148, 150, 251, 416–7Medens Trust, 535Meltzer, Allan, 78–9, 712Mercantile Credit, 535, 580Merger of Issue and Banking Department

suggested, 811Mergers

clearing banks, 327–31, 439–40, 485, 545

FCI/ICFC, 322, 324, 804other, 318, 324, 559, 590see also City Panel

Merriman, Hugh, 496Mersey Docks and Harbour Board

(MDHB), 790–1Messina conference, 150MIAS property group, 592Middleton, Peter, 652, 696Midland Bank

acquires stake in Montagu Trust, 330CCC, 491, 501euromarkets, 183Knowles and Foster, 204Rolls-Royce, 787–8, 790secondary banking crisis, 535, 538–40,

549, 552, 567other, 44, 266, 327, 698, 829

Midland Bank Review, 86

Minimum Lending Rate (MLR) abandoned, 686introduction, 509, 510operation as formula, 515–17, 520,

523, 531, 680operation as administered rate, 680,

688, 694, 697, 699, 701, 718review of arrangements, 679–85sterling, 718, 743, 744, 747, 751, 759,

761other, 648, 660, 669–70, 672, 675, 832

Minimum Sterling Proportions (MSPs) see sterling balances

Mishkin, Frederic, 25Mitchell, Derek, 75–8, 188, 720, 727, 734,

738, 748, 753McMahon, Billy, 410McMahon, Christopher (Kit)

Bank independence, 777–9career, 130, 207, 405, 829CCC, 486, 490, 495, 501devaluation, 237–8, 240exchange control, 767–9exchange rate, 715–6, 718, 740, 744,

747–8, 751–2, 754, 760–1, 764forward operations, 732monetary targets, 458, 653monetary union, 766money, 397, 399, 437, 450–1, 454–5,

464, 468‘Operation of monetary policy since

Radcliffe’, 460–3sterling contingency planning, 379,

413–6sterling agreements and balances,

407–8, 410, 735–6, 757–8view on ceilings, 298other, 291, 335, 396, 425, 619, 701, 727,

738, 763, 825, 830–1Modigliani, Franco, 451Monetarism, 466, 676, 696, 703

see also international monetarismMonetarist, 22, 28, 464, 645, 652–3, 655,

657, 677, 702–3, 760, 779Monetary aggregates

broad money, 29, 78, 453, 523M1, 424, 467, 653, 677, 679, 687,

695–6, 700, 703






Index 877

M3/£M3, 17, 28, 423, 452, 467, 483, 508–9, 520–2, 647–9, 653–8, 667, 670–4, 678–9, 700, 761, 832

M5, 696monetary base, 17, 21–2, 29, 78, 80,

449, 675–8, 688–9, 696, 698–9narrow money, 458, 467

Monetary base control, 675, 688–9, 698–9Monetary Control, green paper, 832Monetary Control Review, 692, 696Monetary Policy

1950s, 66, 76, 77, 83, 84, 85, 90, 92, 106, 447

1960s, 460, 461, 463, 479, 5881970s, 649, 653, 655, 658, 671, 685,

695–9, 701, 702, 772, 773Banks, 485, 487Bank’s independence, 169, 508, 773,

775–8Bank’s role, 58, 64, 79, 109, 110, 466CCC, 427, 498, 500, 508, 511, 514–6,

598–9, 685controls, 255, 300, 661debt management, 61, 80, 82, 112, 115,

137, 495exchange rate, 19, 22, 64, 156, 173, 251,

402, 426, 447, 679, 704, 760external, 61, 684exchange controls, 769, 771euromarkets, 423–4, 426fiscal policy, 176, 653HMT, 35, 437–8, 458, 465, 467, 487,

646–7, 702implementation, 26–7, 57, 165, 309,

648indicators, 457, 655–6monetary aggregates, 452, 458, 657, 687monetary analysis, 19, 21, 144, 426,

447, 679, 704money supply, 467, 526, 645, 648, 679,

689Radcliffe, 64, 83–4, 88–9, 101–4,

115–27, 133, 136–7, 252, 588–9United States, 144, 484see also controls

Monetary Policy Group (MPG), 646, 654–5, 666

Monetary Review Committee, 646

Monetary targets, adopted in 1976, 452, 644–5, 657, 671discussion in 1975, 657early use of phrase in Bank, 458other, 684ff

Moneylenders Acts, 596, 602Money markets,

Bank’s operations, 102, 286, 289, 304, 305, 309, 674, 687, 703, 780

Banking supervision, 609, 610CCC, 485, 486, 496, 502, 509, 510, 520Crown Agents, 554, 555devaluation, 469, 477, 478Discount Office, 38discount houses, 482FCI, 540local authority, 479origins, 104overnight lending, 299, 305, 477–9Radcliffe, 107secondary banking crisis, 524ff, 545,

548, 553, 569, 581, 784other, 49, 165, 468, 660, 704, 826see also Certificates of Deposit,

discount market, inter-bank, and local authority

Money multiplier, 17, 27–9, 398, 644Money Study Group, 463n, 468, 501, 674Money supply (and money stock),

Bank, 449, 450, 454, 459, 460, 463, 662CCC, 514control of, 30, 80, 91, 93, 95, 106, 452,

465, 474, 496, 521, 651, 652, 676, 679, 699, 769, 832

definition, 396, 398, 453, 467DCE, 396, 401, 402, 452, 453, 457–60,

467, 494determination, 451effects of, 400, 453, 454, 455, 457eurocurrency, 423exchange rate, 684fixed exchange rate, 22gilts, 399, 496, 502, 513, 692growth of, 397, 401, 449, 453, 467, 493,

494, 516, 519, 580, 652, 657, 658, 703, 705, 716

HM Treasury, 95, 136IMF, 376, 428, 472






Index878

indicators, 650monetary analysis, 19–24, 30monetary policy, 461process, 28, 30Radcliffe, 118, 126, 136, 448sterling, 670target, 357, 466, 468, 645, 646, 653–6,

671, 679, 699, 701, 704United States, 423other, 15, 21, 520See also domestic credit expansion and

monetary policyMonopoly and Mergers Commission,

328–9, 443Montagu, Samuel, 330Montagu Trust, see Midland BankMoorgate Mercantile, 535Morgan, George, 366, 695, 761Morgan, Victor, 120, 449Morgan Grenfell, 47, 88, 518Morgan Guaranty, 792Morgan Stanley, 168Morrison, Jack, 537Morrison, Michael, 698Morse, Jeremy

1968 Bonn meeting, 421banking system, 439, 441–2, 445career, 207, 828–9Committee of Twenty, 738–40domestic monetary policy, 292–3,

296–8, 433money, 465sterling balances, 407–8, 411sterling contingency planning, 413,

416, 418sterling policy, 240–2, 374, 379–80,

397, 714other, 324–5, 336, 353–4, 366, 405, 518

Moscow Narodny Bank, 183, 296Mudd, Douglas, 424Mullens, William H. J. de W., 101Mullens and Co., 106, 492–5

see also Government BrokerMundell, Robert, 142Mundell-Fleming model, 20–2Museum, Bank of England, 39–40

Mynors, Humphrey 1957 crisis, 91–2, 94Bank of England Annual Report, 133Bank of England finances, 72, 75, 353Bank Rate, 172, 194, 258, 261, 276career, 32, 44–5City Panel, 331–2FCI, 321–2, 326, 804liquidity ratio, 281Quarterly Bulletin, 131–2Radcliffe, 87, 100–1, 123–4, 129self-penned obituary, 33special deposits, 253–4, 263, 272sterling as reserve currency, 181other, 48–9, 51–5, 96–8, 160, 167n,

193, 195, 266, 273, 425, 448

NAIRU, 20, 26Napoleonic Wars, 13–4National Bank, 125National Bank of Abu Dhabi, 567National Bank of Belgium, 236, 422National Bank of Libya, 335nNational Bank of New Zealand, 530National Board for Prices and Incomes

(NBPI) established, 290–1Report on bank dividends, charges,

and services, 441–3, 446National Coal Board, 535, 727National Commercial Bank of Scotland,

329National debt, 39, 74, 88, 105, 112, 137,

359, 461, 473, 812National Debt Commissioners, 58National Discount, 589National Economic Development

Council (NEDC), 130, 191, 290National Giro, 443National Incomes Commission (NIC), 270National Institute of Economic and Social

Research (NIESR) McMahon complaints in 1976, 754predictions of balance of payments

deficits, 195, 428–9sterling depreciation in 1977, 760other, 119, 130, 647

Money supply (and money stock) (cont.)






Index 879

Nationalisation Bank of England, 34–6, 43, 47, 69,

75–6, 118, 773banks, 806, 808see also, Bank of England Act 1946 steel

National Loan Act, 61National Plan, 290National Provincial, 91, 327–8, 545National Union of Mineworkers, 88, 520National Water Council, 727National Westminster Bank

Edward Bates, 567forward exchange operations, 730merger of National Provincial and

Westminster Banks, 328rumours of insolvency, 551–2SCOOP, 530secondary banking crisis, 535–5,

539–41, 545, 549, 565Neale, Alan, 738Neatby, Howard, 535Nederlandsche Bank, 28Neild, Robert, 199–200, 218Nelson, Edward, 28Neo-orthodoxy, 136Netherlands, 189, 358n, 433New Change, 41, 68, 332, 694, 770, 816,

825New Zealand, 340, 378, 409, 735New classical economics, 19New orthodoxy, 80, 119, 136–7, 289, 448News Chronicle, 97New York stock market, 141New York Times, 161Newlyn, Walter, 398, 448, 502Niemeyer, Otto, 36, 81, 253, 344Nigeria

sterling crisis 1976, 737, 743, 746other, 333, 337

Nixon, Richard (US President), 417, 422, 788

Noakes, Jim, 746Non-executive Directors, see part-time

DirectorsNorman, Montagu

impact on the bank, 32, 44, 125, 359, 447, 832

and industry, 318, 320, 326, 774other, 42–3, 45, 49, 52, 88, 141, 153,

168, 212, 226, 334–5, 338, 404, 410, 773, 784

Norman, Peter, 770North Atlantic Treaty Organisation

(NATO), 420–1Northern Commercial Trust, 553Northern Ireland

exchange control, 41banks, 264, 505–6, 509n

North of Scotland Hydro Electric Board, 727

North Sea oil, 722, 761, 764, 769, 792–3, 795, 808

Norway, 418Note issue, 57–61, 65, 67, 73, 318, 340–3,

356, 449, 505see also Scottish note issue

Nuffield College, Oxford, 51, 119, 826Nurkse, Ragnar, 142, 251

O’Brien, Professor D.P., 523O’Brien, Leslie, (later Lord O’Brien of

Lothbury) Bank note design, 341, 342Bank of England finances, 75, 352–3,

812Bank Rate, 63, 92, 171, 258, 260, 271,

283, 293, 431, 438banking supervision, 592–4, 610, 638banking system, 327–30, 441, 445–7career, 52, 207, 227, 518certificates of deposit, 481City Panel, 231–2CCC, 490–2, 501, 504, 507, 514controls on bank lending, 269, 273,

299, 430, 432, 436, 439decimalisation, 343–4devaluation, 197, 204, 223, 237,

239–41, 377euromarkets, 185, 425economic intelligence, 54formal directive under 1946 Act, 432G10 Bonn meeting, 1968, 421gilt-edged operations, 107, 113–4, 267,

285, 302, 473–6, 494, 496






Index880

gold price, 394incomes policy, 291industrial finance, 319, 321–4, 804liquidity ratio, 280–1London as an international financial

centre, 780, 782McKinsey, 354–7money market operations, 277–8,

288–9, 299, 477–8nature of the Bank, 52Parsons, 153, 403–4Radcliffe, 100–1, 111Reference Library, 816Rolls-Royce, 786–90SCNI, 358, 360special deposits, 253, 255, 263, 268–9,

275, 280, 511Sports Club, 56, 351sterling 1972 float, 711exchange rate, 716support operations, 215–6, 236, 382,

383bear squeeze, 217sterling balances, 222, 410, 733training schemes, 54other, 32, 53, 81, 84, 130, 172, 244, 291,

326, 369, 397, 460–2, 529, 580, 636, 739, 830

Observer, The, 223, 462–3, 805–6Off-shore banking

Irish leak, 434–5Oil

facility, 719, 741price rises, 6, 520, 531, 644, 707, 719,

737, 739, 741, 756–7, 772producers’ cartel (OPEC), 6, 520, 756

Official Sterling Area (OSA), see sterling area

Old Lady (of Threadneedle Street), 117, 358, 637, 777, 833

Old Lady, The, 365, 580Old orthodoxy, 136, 258Open market operations, 19, 23, 27, 30,

57, 78, 80, 83, 104, 136, 252, 398, 427, 461, 468, 502, 509, 522, 646, 672, 689

Operation Twist, 112n, 304nOperational research, 55Oppenheimer, Peter, 502Organisation for Economic Co-operation

and Development (OECD), 130, 165, 248, 381, 647, 760, 769, 775, 778

OECD countries, 3, 6, 9, 17, 19, 483–4, 678, 741

Organisation for European Economic Co-operation (OEEC), 138, 150, 163

Organisation of Petroleum Exporting Countries (OPEC), see oil

Ossola, Rinaldo, 420nOssola group, 419–20Ottawa Conference 1932, 142Overnight lending, see money marketOverseas and Foreign Office, 39Overseas Bankers Club, 780Overseas banks, 59, 295, 439, 446, 481,

578, 595, 598, 614Overseas Department

becomes part of CBID, 128created in 1957, 39re-established in 1964, 361secondments, 336other, 52, 163, 211, 337, 363, 484, 761

Padmore, Sir Thomas, 94Page, John

banking supervision, 599, 607, 609career, 53, 62CCC, 486–9, 504–6, 514, 516gilt-edged market, 494–5, 497–9, 662,

666, 668–9, 694monetary policy, 308, 657n, 660, 670–2MLR, 508–11, 515, 679–80, 683reduction in role, 823–6, 828, 830SSDs, 521, 649, 673, 678other, 530, 564, 570, 636, 726, 777, 779,

788, 808–9, 811Paish, Frank, 118, 120, 130Pakenham, Lord, 125–6Pakistan, 195Paraguay, 377Parker Tribunal, see Bank Rate leakParkin, Michael, 468, 502Parlours, 40, 45, 298, 537, 540

O’Brien, Leslie (cont.)






Index 881

Parsons, Maurice BOLSA, 330, 403career, 32, 49–50, 56, 207, 226–7,

403–4devaluation, 196, 219, 247–8exchange control, 173, 211floating rate, 152–3gold, 159n, 161–2, 188, 190nsterling, 157, 164, 177, 197, 408, 415other, 101, 130, 184, 204, 254, 273, 338,

369, 405, 423n, 429, 446Part, Sir Antony, 782Part-time Directors

background and duties, 47–8, 56Bank Rate, 96–8, 123, 127Radcliffe, 110, 114–5SCNI, 359, 369–70Wilson Committee, 370

‘Pay pause’, 172, 270Payton, Stanley, 335n, 337, 735, 761Peacock Committee, 36, 50Peacock, Edward, 43, see also Peacock

CommitteePeake, Sir Harold, 431Peat Marwick Mitchell, 560Peddie, Peter, 798Pember and Boyle, 694Pepper, Gordon, 458, 463, 502, 676, 689,

698–9Peppiatt, Hugh, 606Peppiatt, Kenneth, 48–50, 56, 254, 477Peston, Maurice, 468Pethwick-Lawrence, Lord, 125, 127, 266Phillips, A.W. (Bill), 22–3,

see also Phillips curvePhillips, C.A., 27Phillips curve, 22–3, 373, 466, 651Picquet (Military guard), 63–4Piercy, Lord, 43, 323Pilkington Brothers, 47, 366Pitblado, David, 178Pliatzky, Leo, 199Plowden, Lord, 807Pöhl, Karl Otto, 748n, 766Polak, Jacques, 164, 181, 396, 398, 402,

456, 459Policy Committee, 356, 390, 714Polwarth, Lord, 505

Ponto, Jurgen, 762Poole, William, 677, 704Portal, Lord, 343Portals, 342–3Portsmore, Frederick, 152Portugal, 11, 147nPosner, Michael, 238, 242, 396, 437, 454,

457, 468, 754nPost Office, 58, 344, 355, 443Powell, Enoch, 120Powell, Frederick, 50Premises, Bank

Bank Buildings, 41Finsbury Circus, 40Governor’s flat, 41New Change, 40–1, 68, 332, 81619 Old Jewry, 41Old Street, 40Regent Arcade House, 40Threadneedle Street (Head Office), 38,

40, 42, 63, 340, 816Tokenhouse Yard/Kings Arms Yard, 41

Press and the Bank, 50, 669, 774–5, 777–8Bank Rate leak, 96, 98City issues, 204, 330, 332–3, 805conduct of monetary policy, 114, 453,

473–4, 493, 501, 686, 695reactions to the Radcliffe report,

117–9, 121–2, 127perks for Bank staff, 365–6secondary banking crisis, 544–5, 551,

580, 605sterling, 156, 200, 223, 421, 713, 732,

760other, 358, 442

Press Officer, 50, 366, 695, 761, 777Pressnell, Leslie, 122, 150, 358Preston, George, 160, 185, 215, 383, 408Prevention of Fraud (Investments) Act

1958, 591, 597Price controls, 16, 651, 712Price, Lionel, 401, 468, 677n, 703, 741Price Waterhouse, 560, 566, 568, 570Prideaux, John, 549, 552Principal of the Discount Office, 62–3,

524, 590–1, 609see also Clarke, and Keogh






Index882

Printing Works, 37, 39–42, 68, 131–2, 340–1, 356, 361, 816

Profitability, see clearing banks, Bank finances

Property boom, 524, 526–7, 531, 580controls on lending, 269, 292, 519, 660secondary banking crisis, 528, 534–5,

547–8, 552–5, 557, 564, 566, 569–71, 585

Protection of Depositors Act 1963, 506, 536, 594–7, 607–8, 617, 619

Prudential Assurance, 551, 553Prudential returns, see banking

supervisionPsychological warfare, 194, 243, 309Public-choice analysis, 26Public sector borrowing, 251, 284, 727,

755Public Sector Borrowing Requirement

(PSBR), 28–9, 200, 400, 653, 655, 657–8, 662, 679, 687, 689, 692, 696–7, 700, 705, 748, 752–3, 755, 797–8

Qatar and Dubai Currency Board, 335nQuantity theory, 19–20, 27, 135, 450Quarterly Bulletin, Bank of England

Cameron Cobbold’s view, 90HM Treasury, 132–3introduction, 116, 131–2‘The importance of money’, 452unpublished article on central bank

assistance, 392–3unpublished article on money supply,

451, 454, 464–5Other, 58, 208, 305, 308, 358, 394, 401,

425, 452, 456–8, 461–2, 464, 467, 525, 598, 624–5, 627, 647, 649, 671, 689, 693, 695, 698, 708, 763, 809

Quinn, Brian, 695, 763, 776, 828

Radcliffe Committee announcement, 57assessment, 134–7background and appointment, 64, 77,

83

Bank of England Annual Report 62Bank of England response, 128–34Bank Rate, 90, 122, 123, 171, 194, 199,

201, 252, 260, 431, 509Bank/Treasury relations, 61, 108–10,

113, 122banking supervision 588, 592Cameron Cobbold’s private letter to

Radcliffe, 88–90constitution and functions of the Bank,

48, 57, 350, 360, 369, 370credit counterparts, 28debt management, 107, 112, 113, 252,

265, 267, 303, 471, 472economists’ reaction, 117, 118, 119,

448eurodollar market, 409evidence, 77, 100–2, 111foreign exchange market, 784forward intervention, 206giro bank, 443liquidity/ratio, 257, 278, 398, 399, 448monetary policy, 124, 135–7, 291, 297,

309, 398, 464, 466, 479openness, 115–6Parker inquiry, 97–9political reaction, 124–7, 265press reaction, 116–8, 127–8report and recommendations, 112–16special deposits, 253–6statistics, 55, 447ten years after, 459–63, 479Treasury bill tender, 277, 278, 286witnesses, 417other, 49, 76, 91, 93, 94, 167, 260, 358,

431, 440, 442, 501, 773, 775, 779, 806, 809

see also Bank Rate leak, part-time directors, statistics, monetary policy

Radcliffean view, 135, 194, 375Ralli Brothers, 557Rasminsky, Louis, 216Raw, Charles, 528Raw, Rupert, 196, 408, 410, 412, 528Rawlinson, Anthony, 738Reaction functions, 26–7Reading, Brian, 130






Index 883

Reconstruction Finance Corporation, 233–4

Rees-Mogg, William, 151–2, 410, 416, 545, 652

Regulation, see banking supervisionRegulation Q, 183, 185, 481Reichsbank, 214Reid, Margaret, 544–5, 581, 589, 638n,

731nRe-intermediation, 515, 523, 701Reorganisation, Bank Republic of Ireland, 409Reserve assets, 31, 489, 500, 503–4, 506,

515, 552, 565, 644, 672Reserve ratio, 29–30, 309, 485, 488–9,

500–1, 506–7, 674–7Reserves, banking

Bank of England, 67–8, 70, 72, 347, 353–4, 359, 795, 811–2, 817, 819–21

cash, 30, 136, 398, 449clearing bank, 65, 79, 104, 106, 136hidden reserves/disclosure, 441–2,

444–5, 591Reserves, see foreign exchange reservesReserve-asset ratio, 500, 503–4, 506–7,

511, 598–9, 644, 672, 674, 695–6, 699–700, 832

Reserve Bank of New Zealand, 134n, 334

Revelstoke Committee, 47nRevell, Jack, 623Reynolds News, 98, 117, 127Rhodesia, Southern, 5, 210, 770Rhodesia and Nyasaland, Bank of, 337Richardson, Gordon (later, Lord

Richardson of Duntisbourne) 1976 sterling crisis, 745, 749, 755banking supervision, 604–8, 615, 618,

622, 628, 630–4Burmah Oil, 792, 799–800career, 366, 518–9, 829–30Crown Agents, 554, 555, 636directional guidance, 520exchange control, 768foreign currency borrowing, 726, 762,

763industrial finance, 774, 791, 802–5

monetary policy, 646, 654–8, 660, 670–1, 676, 684–6, 688, 691, 696, 699

role/organisation of Bank, 776, 823–31secondary banking crisis, 536, 538–9,

543, 572, 577, 579, 581, 583–5Slater Walker, 559, 563Wallace Brothers, 569, 571Wilson Committee, 807–8other, 331, 338, 370, 521, 693, 730, 740,

777, 809–10, 821Rickatson-Hatt, Bernard, 50Rickett, Sir Dennis, 152, 157, 173,

188–90, 240, 291, 326, 441Ritchie, Alec, 540Robarts, David, 91, 254–5, 263, 281, 429,

433Robens, Lord, 357, 807Robertson, Dennis, 51, 119, 137, 251Robbins, Lord, 87, 94–5, 117, 119, 126–7,

148n, 153–4, 254, 462‘Robot’ Plan, 147–9, 152n, 416Roll, Eric, 193, 226, 366Rolls-Royce, 488, 774, 784–90, 801–2Roman law, 601Room 1 and Room 2, 38Roosa bonds, 222, 383Roosa, Robert, 177, 188, 193Rootham, Jasper, 50, 53–4, 182, 184, 213,

405Rothschilds, 446n, 560Round tripping, 520Rowan, Sir Leslie, 147, 154Royal Bank, 329Royal Bank of Canada, 792Royal Bank of Scotland, 329, 539–40Royal Insurance, 168Royal Mint, 344–6Rueff, Jaques, 406Rumins, John, 358, 581, 809, 821Runciman, Robert, 540Ryrie, William (Bill), 225, 394, 414, 676,

741, 752, 757

St Lukes, see Printing WorksSachs, Jeffrey, 142Sadd, Sir Clarence, 43






Index884

Sanderson, Basil, 45, 47–8, 369Sangster, John, 709, 731–2, 739, 743, 759,

761, 826Samuelson, Paul, 23Sarabex Ltd, 785Sargent, J.R. (Dick), 150, 698Saudi Arabia

Saudi Arabian Monetary Agency (SAMA), 723–7

sterling balances, 737Savery test, 613nSaving, Thomas, 704Sayers, Richard

attempt by Bank to appoint him, 51Radcliffe Committee, 87, 100, 105, 108,

119–20, 122views on role of central banks, 25, 57,

134, 226other, 36–7, 45, 53, 62, 130, 135–6,

141n, 339, 449, 464–5Schedule 8 (Companies Act 1948), 445,

591, 594–6, 598, 620Scheduled Territories, 59, 210, 711Schiller, Karl, 420–2Schmidt, Helmut, 753, 765–6Scholey, David, 797–8Schroders, 366, 518–9, 580, 776,

803, 825Schwartz, Anna, 23, 447Schwegler, Walter, 216Schweitzer, Pierre-Paul, 240–2, 374–5,

459Scottish clearing banks

CCC, 492, 504–5control on advances, 301ICFC, 322, 804special deposits, 256–7, 263–4, 273,

293, 299, 438–9, 511Scottish Co-Operative Wholesale Society

(SCOOP), 529–31, 581, 785Scottish note issue, 504–5

Letters of Malachi Malagrowther, 505nScrimgeours, 798SEANZA, 340Seccombe, Marshall & Campion, 103Secondary banking crisis, 524ff.

blame, 578–81

Control Committee (Lifeboat), 538–41, 564, 578, 581

cost of operations, 580–3Lifeboat, 538–9reasons for Bank’s involvement, 581–2relations with HM Treasury, 552, 557,

584The City, 533–5, 545, 548, 555, 558,

562, 581, 586other, 523see also banking supervision, Crown

Agents, Edward Bates, fringe banks, SCOOP, Select Committee on Nationalised Industries, Slater Walker, Wallace Brothers

Secondments (to/from Bank of England) academics, 129–30, 447, 449, 485, 826overseas, 49, 62, 335–6, 338, 723other, 612, 776, 830

Secrecy Bank of England, 26, 65, 67, 72, 76, 98,

160, 260, 359, 489, 590, 811bankers’ balances, 65contingency planning (sterling), 217,

411, 413foreign currency borrowing, 726gold, 189, 225nreserves, 141, 224Robot, 148Radcliffe, 90, 116sterling balances, 410

Secretary’s Department, 37, 39, 361Section 123 banks, 526, 532, 572, 578,

596–9, 602, 607, 612Section 127 banks, 572, 597–8Securities Management Trust (SMT),

323–4Select Committee on Nationalised

Industries (SCNI) 1970, 358–601976, 809–101978, 810–11banking supervision, 354, 622–3Bank’s finances and accounts, 67, 354,

447, 810–13, 819–21fringe benefits, 365–6monetary policy after Radcliffe, 462






Index 885

non-Executive directors, 369–70secondary banking crisis, 525, 575,

581, 583other, 318, 706, 775–6, 831see also Treasury and Civil Service

CommitteeSelective employment tax (SET), 292, 298Selwyn, James, 54, 355Shawcross, Lord, 332–3Shell (oil), 234, 355, 719, 792–4Sheppard, David, 675, 688–9Shipbuilding Inquiry Committee

(Geddes), 325–6Shukri, Sabih, 567Siepmann, Harry, 37, 48–9, 163, 212Singapore, 336, 409, 412–3, 558, 579n, 733Skinner, Clarence, 410Skinner, Dennis, 525nSlater, Jim, 556–60Slater Walker Limited (SWL), 525, 557–64Slater Walker Securities Limited (SWSL),

556–64Smallwood, John, 336Smith, William, 540Smith, Michael Babington, 45, 47Smith, Sir Reginald Verdon, 88Smithsonian Agreement

effective rate, 709, 720, 736, 740, 747, 763

other, 388, 422, 710, 733Snake, The, 711–2, 714, 733, 750, 765–6Solomon, Robert, 243, 394, 419, 738–9Solow, Robert, 23Somerset, David, 53, 337, 568, 678, 795,

800, 826South Africa

gold, 159–60, 187, 394other, 340, 344n, 345, 412

South African Reserve Bank (SARB), 158–60, 334

South East Asia, 448, 569Southard, Frank, 162, 177Southern Rhodesia, 5, 210, 770Soviet Union, 3, 5, 187, 340, 394Special buyer, 102–3Special Deposits

and Bank Rate, 262, 271, 293

called First, 263–51960, 2641961, 172, 1761965, 209, 293, 2941966, 2991970, 438, 4671972, 5111973, 511, 516, 517, 520, 522, 7181976, 660

CCC, 485, 488, 490, 496, 499, 500, 502–9

debate about use, 170, 268, 269, 272, 273, 437, 438, 646

design, 253–7effectiveness, 274–5, 292, 297, 309,

449, 700fringe banks, 552interest payable on, 257interest payable halved, 433liquidity ratio, 279–81Radcliffe, 111, 121, 253, 255, 256released

1962, 272–4, 2821977, 660

‘release and recall’, 672reverse special deposits, 675wider application/change in use, 301,

302, 307, 308, 309other, 132, 252, 265, 529, 832see also SSDs

Special Drawing Rights (SDRs), 181, 374, 384, 408, 420, 719, 738–9, 741, 755

Spectator, The, 117Sports Club (Roehampton), 42, 56, 351Stagflation, 6, 10, 484Staff, Bank of England

costs, 68, 73, 769, 815numbers, 40, 59, 68, 129, 212, 340, 351,

356, 361, 363, 611, 815overstaffing, 32, 131, 363, 411pay and benefits, 55–6, 365–6pensions, 68–9, 72, 365, 811, 815, 817recruitment, 53, 363, 365supplementary staff, 54ntraining, 53–4see also secondments






Index886

Stamp, Max, 50Stamp Memorial Lecture

Cameron Cobbold, 773William Armstrong, 381, 462

Standard Bank, 49, 571–2Standard Chartered Bank, 570–1, 746Standby arrangements

1961 IMF, 177–8, 1801964 IMF, 198, 201, 2041967 IMF, 241–3, 372, 374–5, 377–8,

382–31969 IMF, 400–11975 IMF, 740–11976 IMF, 749, 751, 755–7Other, 195, 197, 227, 240, 248, 450,

716–7, 719Standing Committees, Bank of England,

36–7, 47Stanton, A.H., 478Statistics

Cromer’s view, 440monetary, 398–9, 423, 646, 702needs for improved provision, 54–5Radcliffe, 77, 90, 98, 100, 110–13,

115–6, 121, 128, 130, 132Statistical banks, 526, 598–9, 613Steel industry

denationalisation, 61FCI, 320–2foreign currency borrowing, 726renationalisation, 321–2, 441

Stein, Herbert, 417Stenham, Cob, 537Sterling

after Second World War, 143Burmah Oil, 795bear squeeze, 215, 217, 220decimalisation, 344–5float of 1972, 509, 513, 711–2, 733forward sterling, 245, 731guaranteed sterling, 215, 222, 240–2,

409, 734international currency, 147, 152, 155,

249, 273, 783reserve currency, 155, 175, 181–2, 196,

249, 389, 406–7, 417, 426, 757role in international monetary system,

222

security sterling, 179, 210ntransferable sterling, 150, 157US co-operation (Deming group), 420other, 35, 101, 160, 180, 191, 256, 272,

276, 284, 290, 418, 441, 755, 771See also contingency plans,

convertibility, forward intervention, sterling balances, sterling crises

Sterling Agreements Basle arrangements, 164, 175, 248, 407Basle facility, 411–2, 733–4

Sterling Area overseas sterling area (OSA), 405–8,

733–7non sterling area (NSA), 222

Sterling Area Working Party, 380, 405, 407, 714

Sterling Balances burden, 88, 139, 145–8, 155, 175,

181–2, 191, 374, 426, 707, 772Australia, 409–10, 413, 733, 735–6Bahrain, 733guarantees, 407–9, 411–3, 417, 713,

733–7, 745, 757Hong Kong, 409, 735India, 147, 154Ireland, Republic of, 409, 711, 735Kuwait, 409, 733, 735Libya, 413Malta, 413minimum sterling proportions (MSPs),

409, 413, 734–6Malaysia, 409, 411–3, 733New Zealand, 409, 735official, 720, 734, 737, 756–8private, 732, 756, 758–9renegotiation 1970s, 732–7, 752Robot, Singapore, 409, 412–3, 733Third Group Arrangements, 713,

756–9Yemen, 411other, 207, 215, 221–3, 383see also sterling agreements, sterling

areaSterling bloc, 146Sterling crises

1957, 91, 92–5, 153–4, 170, 183






Index 887

1961, 139, 165–6, 169–72, 175–80, 2681964, 194–206, 271–2, 277, 2921965–66, 207–17, 220–1, 223–4, 298–9other, 249–50, 404, 414, 732see also devaluation, crisis 1976

sterling,Stern Group, 547, 554Stevens, Sir John, 49–50, 56, 161, 185,

207, 226, 236, 518Stevenson Committee, see Crown AgentsStevenson, Sir Matthew, 528Stewart, Michael, 207Stewart, Walter, 37Stock and Bond services, 67, 74, 347, 351Stockholm Agreement, 384Stock market, 1970s peak and collapse,

526, 532, 551Stolper-Samuelson, 741nStone, Jonathan, 799Stone, Reynolds, 342Stop-go, 191, 208, 290Stopper, Edwin, 241Strikes,

docks, 238, 240, 711miners, 719newspaper, 474seamen, 750other, 14

SUERF, 450Suez, 145, 153, 237, 249Sun, The, 501, 686Sunday Telegraph, The, 543, 805Sunday Times, The, 360, 528, 572, 686,

751Sunderland, David, 554–5, 636nSupervision, see banking supervisionSupplementary Special Deposits (SSDs)

abandonment, 769, 832‘corset’, 521, 659, 687–8, 700–1, 769introduction, 521–3operation, 648–9, 659, 672–4, 677,

687–8, 700, 703Support operations/packages (sterling),

see standbys, Basle AgreementsSuzuki, Hideo, 738Swaps (foreign exchange), 164–6, 175,

203, 227, 233, 236, 320, 382–3, 721–2, 732, 760, 773

Swiss franc, 204, 758Swiss Guyerzeller Zurmont Bank, 330Swiss National Bank (SNB), 165, 241Swiss watches, 415Switzerland, 6, 60n, 161, 165, 171,

185, 189, 216, 233, 239–40, 625, 676, 710

Sykes Memorial Lecture, 638Syndicated tender, 103, 277–8, 287–9,

498–9, 502

Tarzan, 825nTaylor, Peter, 358, 809–10, 819Tew, Brian, 245, 396, 420, 443, 448Thatcher, Margaret, 698, 829Thackstone, Harold, 330Thomson, John, 281, 292, 328Thompson-McCausland, Lucius, 50, 152,

182, 184, 396nThorneycroft, Peter

1957 crisis, 91–5, 269Radcliffe, 86–7, 90, 109–10, 120special deposits, 253–5sterling, 154unable to sack the Governor, 94

Thornton, Henry, 24, 78Thornton, Michael,

career, 129money, 375–6, 397–9, 454, 457,

459–61, 464, 647other, 100, 129n, 807

Thornton, Ronald, 366Thorpe, Jeremy, 532, 534Times, The, 64, 96–7, 120–1, 168, 199,

217, 357, 384, 404, 410, 415, 454, 463, 474, 501, 534, 537, 544, 652, 662, 678

Third Group Arrangements, see sterling balances

Threadneedle Street, 337–8, 358, 460, 782, 825

Three-day week, 549Time inconsistency, 26Toniolo, Gianni, 189, 225nTownend, John, 468Trade Protectionism, 2, 13Trades Union Congress (TUC), 88, 109,

651, 755






Index888

Treasury, Her Majesty’s (HMT) 1956 working party, 84–5Bank Rate, 93, 170, 200, 260–2, 271–2,

276, 294Bank finances, 61, 69, 72–5, 351–3,

774, 813–4, 817, 819–22, 830banking supervision, 589, 591–5, 598,

600, 602, 607, 617, 619–24, 629–32, 636–7

Burmah Oil, 791, 793–4, 801CCC, 486–7, 489–96, 498–9, 503–4,

506, 508–9cash deposits, 308ceilings, 300, 428, 432, 435–67City of London, The, 779, 782clearing banks, 328crisis measures, 170–2, 176, 202Crown Agents, 529, 555, 830decimalisation, 344–5devaluation, 196–7, 199, 217–8, 237–8EEA, 59–61, 141–2, 707, 731euromarkets, 423nexchange control, 173, 210–3, 419,

767–9exchange rate, 150–2, 154–6, 414–7,

707, 709, 713, 716–8, 740–6, 748, 750, 760–1, 764

forward intervention, 206, 244–5, 732gilt-edged market, 114, 283, 285–6,

470, 472–3, 475–6, 513, 662, 670, 691–3, 695n

gold pool, 188, 190, 225hire-purchase, 268, 273IMF, 381, 396–7, 453, 455, 458–9, 753joint seminars, 291Khan Report, 219–20liquidity ratio, 81, 84, 281–2minimum lending rate, 510, 516, 675,

679, 683money market, 516monetary policy, 30, 136, 252, 437,

465–6, 646monetary targets, 645, 654–5, 671, 679,

705, 831–2money supply/DCE, 399–400, 450,

453–9, 463, 467, 651–2, 671, 696, 698–9

NBPI, 441–3Radcliffe, 83, 86, 88, 91, 101, 108–10,

114–6, 120–4, 127–8, 132, 135, 459–62

relationship with Bank, 34–5, 57–62, 75–6, 81–2, 94–5, 98, 108–10, 114–6, 120–4, 127–8, 133, 157, 369, 427, 482, 773–5, 778–80, 822

reserve asset ratio, 674reserves/reserve currency, 155, 181,

234–5, 383, 391, 413, 722–3Robot, 147secondary banking crisis, 552, 554,

556, 560, 562, 583–4special deposits, 253–5, 262, 273–4,

293, 297, 301, 512, 673SCNI, 358–60, 812sterling balances, 407, 409–11, 733–6Treasury bill tender, 103, 286–7other, 48, 129–30, 176–7, 270, 290,

324–5, 381, 392–3, 445–6, 647–8, 701, 706, 721, 754n, 756, 791

Treasury bills 63-day, 289–90charge for Bank’s management, 73–4CCC, 504, 507, 510, 516–7devaluation, 477EEA, 141–2holdings of discount market, 482operations, 21, 30, 80–2, 85, 102, 105,

111, 136, 254, 286, 295, 304–5, 398, 477–9

tender, 37, 102–4, 277–8, 286–9, 502–3, 510, 675, 680, 683, 744

Treasury bill rate, 66, 94, 135–6, 275–7, 288, 299, 307, 476, 479, 481, 485–6, 498, 510–11, 517–8, 680, 697

other, 210n, 257, 448, 476, 585See also discount market, minimum

lending rateTreasury and Civil Service Select

Committee, 831Treasury Certificates (United States), 234Treasury Deposit Receipts (TDRs), 94,

253–4Treasury Office, 38Treaty of Rome, 5, 12






Index 889

Tribune, 97, 117Triffin, Robert, 187, 406Triffin Plan, 163nTrinity College, Cambridge, 47, 51,

130Tri-partite Agreement, 142Triumph Investment Trust, 535, 544, 551,

553Tuesday Club, 242Tuke, Anthony, 549Tüngeler, Johannes, 421Twentieth Century Banking, 535

Unemployment, 2, 13–4, 20, 23, 26, 142, 174, 258, 276, 373, 483, 529, 651–2, 705, 751, 753

United Dominions Trust (UDT), 547–8, 552–3, 572

UDT vs Kirkwood, 596United Drapery, 533–4United States, (also US and America)

Burmah Oil, 792–4, 796Commission on Money and Credit, 86dollar securities, 175, 195, 233–5domestic economy, 15, 372, 424, 484,

705, 712, 765economic/monetary theory,

development, 23, 26, 80, 447, 450, 461, 464, 468, 645, 677

EMU, 766Euromarkets, 183–6, 188–9, 424–6gold, 138, 157–8, 160–2, 187–90, 393n,

394–5international monetary system, 140,

142–5, 150, 420–2, 737–8interest rates, 112n, 193–4, 276, 304nand sterling, 139, 151, 166, 196–7, 199,

201, 203, 207, 213–5, 217, 223–5, 236, 239–42, 249, 379, 383, 407, 411–2, 414–5, 715, 749, 751, 761–2, 767

US devaluation, 389, 394, 413other, 3–5, 12, 16, 23, 28, 31, 51, 62,

129, 141, 162, 168, 226, 240, 328, 331, 341n, 355, 358n, 380, 415, 417–8, 434, 481–2, 493, 496–7, 544, 563, 675, 692, 710, 717, 730, 738,

757–8, 761, 767, 771, 778, 780, 783, 786, 789, 797

also see dollar, Federal Reserve, Regulation Q

United States Treasury, 143, 157–8, 160–3, 177, 190n, 214–5, 234, 240, 383, 412, 737, 757, 760

Urwick, Orr and Partners, 355

Valentine, Michael, 798Van Lennep, Jonkheer Emile, 408Vaughan, Evan, 540Vavasseur, J.H., 544Vietnam War, 5Volcker, Paul, 412, 418, 737, 739, 757

Walker, David exchange rate policy, 740–1, 764Kahn Report, 220monetary base control, 688–9, 698other, 753, 776, 826

Walker, Peter, 557Wallace Brothers, 556, 568–72, 615Walters, Sir Alan, 129, 464, 645Warburgs, 797–8War Loan stock, 105War Loan conversion, 105–6Washington, 80, 130, 143–4, 154, 160–1,

164, 167–8, 177, 193, 201, 207, 226–7, 240–1, 337, 382–3, 395, 417, 422, 458, 676, 710, 730, 738, 754, 789

Washington initiative, 213–7Wass, Sir Douglas

1976 crisis, 745–7, 753, 755, 762, 768secondary banking crisis, 562–3, 584view on monetary targets, 679, 702other, 602, 606, 620, 683, 782

Watling Street, battle/siege of, see gilt-edged market

Wedd Durlacher, 496Weissmuller, Alberto, 825–6Welfare Insurance, 565Werner Report, 711West Germany

economy, 2, 4, 6, 11, 144Deutsche mark (DM), 420–2






Index890

Deutsche mark (DM) revaluation, 164, 169, 414, 418, 420–2, 717, 753, 758, 762

gold, 157, 189sterling, 208, 216–7, 241, 413, 748nother, 141, 185, 195, 240, 320, 340, 342,

403, 548, 625, 692, 730, 756, 765–7Westminster Bank, 55, 328, 545White, Harry Dexter, 143White, William, 483Whitmore, Francis, 583Whittome, Alan

disclosure, 445gilt-edged market operations, 285–6at IMF, 660, 748, 752–5other, 53n

Whyte, G.T., 553Wild, Sidney, 534, 535–6, 540Wiles, Chris, 460Williams and Glyn’s Bank, 329, 535,

539–40, 762Williams Deacon’s Bank, 329William Stern, see Stern GroupWilson, Harold

appointment of O’Brien, 226–7Bank Rate leak, 96currency speculators, 219monetary policy, 256, 294, 299Radcliffe, 88, 90

Rowley Cromer, 201–3, 221, 225–6sterling crisis, 198–201, 205, 215, 242other, 109, 291, 370, 415, 523, 745, 830See also Wilson Committee

Wilson Committee, 370–1, 452, 525, 578, 583, 696, 806–9

Wincott, Harold, 120Window dressing, 165–6, 383, 503, 546Winton, John, 328Witteveen, Johannes, 719, 754, 759Wood, Gilbert

coining the term ‘the Corset’, 659nother, 53n, 467, 673

Wood, Geoffrey, 424, 699, 767nWoods, Sir John, 88Woodroofe, Sir Ernest, 537Woolgar, Eric, 219Working Party 3 (WP3), 165, 242, 248,

381World Bank, 43, 143, 163n, 168, 240Worswick, G.D.N. (David), 88, 651

Yield curve, see interest rates, structureYen, 413, 717, 758Yeo, Edwin, 757

‘Z’ accounts, 107nZambia, 378Zawadzki, Krzysztof, 398Zijlstra, Jelle, 240, 749, 766

West Germany (cont.)






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