6 X 10.5 Long Title.P65

Cambridge University Press 978-0-521-19282-8 - The Bank of England 1950s to 1979 Forrest Capie Index More information

Index

Abdullah, Bin Musaid Bin Abdul commodity traders, 324 Rahman, Prince, 565 FCI, 321 Abell, George, 49, 56, 366 Fairfields,325 –6 Abs, Herman, 379 foreign currency , 525 Accepting Houses, IRC, 324 accounts with Bank, 59 property, 527, 569 ARIEL, 666 relation to deposits, 80–1 Bank’s supervision of, 589 Rolls-Royce, 788–9 CCC, 492 secondary banking crisis, 534, 541, credit control, 296 543, 548, 552–3, 558, 564, 569, 581 inter-bank market, 481 other, 207, 795 Rolls-Royce, 787–90 Advisers secondary banking crisis, 536, 539, 548 Bank, 33, 37, 42, 50–1, 55, 58, 75n, 81, sterling brokers, 784–5 92, 129–31, 152, 207, 254, 337, 355, Accepting Houses Committee, 296, 492, 357, 380, 465, 529, 702, 720, 731, 598 744, 803, 824–6, 829 Accountant’s Department, ministerial, 109, 218, 244, 416, 645, location, 40, 68 651, 693, 745, 807 renamed Registrar’s, 826 Treasury, 84, 130, 155, 170, 199, 201, role, 39 213, 238, 490 staff numbers,40 , 61, 351, 361 other, 358, 373, 417, 443, 537, 567, 606, other, 37, 361 678, 698, 738 Administration Department, 361 Adviser(s) to the Governors, 35, 37, 43–4, Advances, 48–9, 50, 55, 196, 254, 335, 380, 439, Bank of England’s, 67, 102, 105, 305, 528, 558, 603, 609 347, 365, 479, 813 Africa, 3–4, 335, 338 Burmah Oil, 793 Agents, 41, 61, 802 cartel, 443 Agnelli, Gianni, 379 clearing banks, 82, 85, 89, 91, 93, 102, Agricultural Mortgage Corporation 109, 119, 252–5, 258, 263, 265, (AMC), 323 268–9, 271, 274–7, 280, 284, 292–5, Akroyd and Smithers, 496 297, 299–300, 427, 431–7, 439, 488, Albania, 11 490, 497, 521, 526 Alford, Roger, 130, 676

853

854 Index

Aliber, Robert, 158 gilt-edged market, 114, 266, 286 Allen, Douglas (Lord Croham) monetary policy, 276–7, 437 CCC, 490 NBPI, 441 Monetary Policy Group (MPG), 646 quantitative targets, 375 report on Bank reorganisation, 824–5, special deposits, 275, 280 831 Stamp Memorial Lecture, 381 sterling, 238, 382–3, 409, 411, 416, sterling, 193, 197, 205, 214, 217, 219, 734–5 239, 242, 383, 414 other, 251–2, 430, 433, 460, 462, 489 other, 187, 212, 298, 353, 593 See also Group on Monetary Policy Artis, Michael, 468 (Allen Group) Åsbrink, Per, 241 Allen, William (Bill), 752n, 754n Assistant to the Governor, 49–50, 213 Allen, Maurice Audit Committee, 37 career, 51, 135 Audit Department, 37, 361 control of bank lending, 84–5, 271, Austin, Robert, 341 274, 281, 293, 297, 307, 430 Australia external, 181, 186, 188, 196, 236, 379–8 sterling balances, 409–10, 413, 733, money supply/DCE, 396–9, 423, 735–6 450–1, 453, 455–6, 464 other, 62, 227, 340, 366, 378, 569 Radcliffe, 100, 129–30 Authorised banks, 557, 564, 566, 569, other, 99n, 266, 291, 344, 442, 462 572, 583, 585, 591, 598, 607, 731 Allied Arab Bank, 564, 568 Altajir Bank, 567–8 Bagehot, Walter, 78, 82 Al Tajir, Mahdi, 567 Bahrain, 733 Althaus, Nigel, 99, 694 Bailey, James, 366 American Chamber of Commerce, 379, Bain, Andrew, 130, 289, 450–1, 454, 807 730 Balance of payments American Civil War, 14 1950s, 153, 173 Amory, Derick Heathcoat, 97–8, 256, 1960s, 13, 170, 173, 176, 179, 195–6, 258, 261–4, 593 201, 207, 209, 215, 222–3, 232, 236, Anderson, Robert B., 161 291, 293, 302 Anderson, Leonall (& Jordan), 464 1970s, 49, 426, 516, 531, 719, 722, 750, Andrews, Kenneth, 809 752, 762 Anglo International Bank, 556n analysis, 22, 396, 402, 417 Annual Report, Bank of England, 40, 62, crises, 13 67, 111, 116, 133, 334, 359–60, 614, DCE, 458, 679 809, 812, 821, 824, 830 devaluation, 245, 376, 380, 381–2, 386 Ansiaux, Hubert, 236, 241 EEA, 141 Arab International Bank, 565 economic growth, 221 Argy, Victor, 398 euromarkets, 183 ARIEL, 666–7 exchange control, 209, 213 Asset ratios, 297–8 exchange rate, 236, 250, 251 Armstrong, Robert (later Lord) historical, 139, 143 Radcliffe, 77n, 88, 100 IMF, 143, 145, 222, 452 other, 437, 460, 467 import surcharge, 209 Armstrong, Sir William inflation,714 Bank Rate, 170–1, 236, 293 interest rates, 102, 284

Index 855

j-curve, 380 Bank of Scotland, 325–6, 329, 505, monetary approach, 243 539–40 monetary policy, 459 Bank Rate Mundell-Fleming, 21 CCC, 509–11, 517 revisions in, 176 crises: Robot, 147, 149 1957, 60, 90, 92, 94, 154, 257–60 support for, 248–9 1961, 171–2, 174, 268, 270–3 sterling balances, 408 1964, 197, 200–2, 221, 292, 299 Ball, Jim, 760 1966, 221, 237–9 Balogh, Thomas,109 , 196, 219, 244 1967 devaluation, 243, 247, 299–300, Banco Italo-Britannica, 43 378, 384, 469 Banca d’Italia, 216 domestic economy, 431, 438, 441 Bank Buildings, 41 external purposes, 78, 139, 169, 174, Bank Charter Act 1844, 59–60, 65, 176, 178–9, 191, 292, 309, 419, 711, 67, 811 773 Bank for International Settlements (BIS) MLR, 509, 680, 683, 686 assistance for sterling, 170, 175, 191, procedure, 37, 58, 60, 63, 118, 122–3, 216, 228, 239–42, 377, 382, 391, 749 125, 134, 260–2 banking supervision, 626, 628 Radcliffe, 128 central bank co-operation, 162–3 US consultation, 193 gold market, 158–62, 190, 395 other, 65, 79–80, 82–3, 86, 88–9, statistics, 186 102–4, 108, 115, 127, 135, 191–4, sterling balances, 222, 374, 405, 407–9, 252, 262, 264, 276 756 see also Bank Rate leak, Minimum swaps, 203, 223–4, 233, 389, 391 Lending Rate view on UK reserves, 194–5 Bank Rate Leak, 37, 47, 76, 91, 96–9, 167, other, 50, 58–9, 62, 234, 423, 426 194, 219, 260, 370 Bank of Canada, 62, 216, 334, 485n, 792 see also Parker Tribunal Bank of England Act 1946, 34, 45, 49, 56, Bank Return, The, 67 61–2, 69, 72, 81, 92, 94, 108, 122, Bank/Treasury relations, see Treasury 255, 352–4, 358, 370, 432–3, 589, Banker, The 780, 821, 823 banking supervision, 610, 623, 633–4 See also Directive (under 1946 Act) clearing bank mergers, 328, 330 and Finances, Bank of England exchange-rate policy, 713 Bank of England Act 1998, 371n, 811n inflation,249 Bank of England Charter, 34, 45, 55 London as an international financial Bank of England Quarterly Bulletin, centre, 781 see Quarterly Bulletin liquidity ratios, 257 Bank of Jamaica, 335n, 337 monetary policy, 662 Bank of London and South America MLR, 511 (BOLSA) NBPI, 446 euromarkets, 185 Radcliffe, 137, 462 George Bolton, 49–50 secondary banking crisis, 545, 562, Maurice Parsons, appointed as 575, 580–1 chairman, 403–4 SCNI report 1970, 360 merger, 330 SCNI report 1976, 810 Bank of Northern Rhodesia, 335n Wilson Committee, 808

856 Index

Bankers Almanac, 598 self-regulation, 590, 609, 625 Bankers’ balances single-tier, 604 Bank financing, 66–7, 75, 347, 354, two-tier, 604–5, 622, 624, 634, 638 810–1, 813 see also Discount Office, fringe banks, Bank control, 84 secondary banking crisis monetary base control, 678, 703 Banque Commerciale de l’Europe du CCC, 500, 503 Nord, 183 money markets, 104–5 Banque de France, 241, 379, 758 origins, 65 Banque Pommier, 568 payments system, 59 Barber, Anthony Bankers Club of Chicago, 425 Leslie O’Brien, 518 Bankers Magazine, The, 137, 462–3 monetary policy, 491, 504, 511, 520–2 Bankhaus Herstatt, 625 Radcliffe, 127 Banking Act Rolls-Royce, 787, 790 1979, 588, 611, 617, 629–38 other, 324, 570, 593, 606 1987, 638 Barclaycard, 435 Banking and Money Markets Supervision Barclays Bank (BAMMS), 610–1, 614–6 Edward Bates (EBS), 565, 567–8 Banking Bill, 633–4 merger with Lloyds, 440 Banking Department, 60, 106, 111, 287, merger with Martins Bank, 327–9 321, 325, 359, 400, 795, 811–2, 824, secondary banking crisis, 535–7, 826 539–41, 547, 549, 552, 554 separation from Issue Department, other, 266, 275, 435, 762 59–60 Bardsley, Donald, 532–3 Banking school, 44, 51 Baring crisis 1891, 65, 536, 585 Banking Study Group, 443 Baring Brothers (Barings) Banking supervision financial advisers to Burmah Oil, 1950s and 1960s, 62, 588–98 792–3 action after secondary banking crisis, Rowley Cromer, 168, 226, 379 605–10 Barnes, Roger Banking Act 1979, 629–38 banking supervision, 602–3, 608, 612, Basle Committee, (also Blunden 616 Committee, Cooke Committee), Controlling Committee (Lifeboat), 625ff 540, 543 Basle Concordat, 627ff Crown Agents, 636 clubs, 588 EBS Investments, 568 concordat (Richardson/Healey), 629 Barron’s Weekly, 544 EC banking directive, 598–605 Basle Agreements or Basle Arrangements Groupe de Contact, 625 1961, 164, 175, 248 informal, 62 1968, 416, 428, 732 international co-operation, 625–8 Basle Committee, see banking legislation, 618ff supervision licensing and supervision of deposit- Basle Concordat, 627 taking institutions, white paper, Batini, Nicoletta, (and Edward 593–4, 598, 602–33 Nelson), 28 overseas banks, 595, 598, 614 Baumgartner, Wilfrid, 379 prudential returns, 611–16 Beale, Percival, 51–2

Index 857

Beenstock, Michael, 652 Bowmakers, 535 Belgium, 189 Boyle, Edward, 170 Bell, Geoffrey,399 , 423n, 450 Bradman, Don, 366 Bell, Tom, 219 Bradshaw, Edward, 731–2 Benelux, 406 Branches, Bank of England Benson, Henry (later Lord Benson), 558, criticism of rebuilding costs, 359, 816 803, 805 Law Courts, 816–7 Berman, Lawrence, 450 rebuilding, 347, 351 Bernard, Dallas, 44 staff numbers,361 , 770 Beveridge, Lord, 126 other, 38, 41, 61, 336, 354, 356, 802 Bicester, Lord (Vivian Hugh Smith, 1st Brandt, Peter, 565 Lord Bicester), 47–8, 96 Brau, Ed, 703 Biffen, John,397 Brearley, Simon, 612 Birch, Nigel, 94 Bretton Woods Agreements, 4, 25, Blessing, Karl, 214, 240–1, 420–1 50, 138–9, 142, 144–5, 158, 164, Bill Office, 39 187, 249, 373, 422, 707, 710–1, Blunden, George 739, 771 banking supervision, 610–5, 617–8, Bridge, Roy 620, 624–6, 633, 781 career, 32, 52, 153, 403–5 reorganisation of bank structure, devaluation, 199, 218–9, 235, 239, 823–6 247–8, 378–80, 431 secondary banking crisis, 545, 556, flexible rates, 152, 154–5 559, 570, 583–5 gold, 158–61, 225n other, 53, 62, 288, 366, 636, 774, 810–1 sterling, 165–6, 177, 202, 216–7, 220, Blunden/Cooke Committee, 625–6 244–5, 384, 386, 389, 415 Board of Trade other, 345, 423n, 713, 716 banking supervision, 63, 591–3, 595–7, Bridgeman Group, 654–5, 658, 666, 692, 617 754 clearing bank disclosure, 445–6 Bridgeman, Michael, 654, 693, 754 Fairfields,326 Bridges, Sir Edward, 73, 85–6, 109 hire purchase, 264, 273, 435 Brimmer, Andrew, 425 other, 88, 115, 198, 329, 344 British Association for the Advancement see also Department of Trade, of Science, 344 Department of Trade and Industry British Bankers’ Association (BBA), 598, Bolton, George 611, 629 career, 45, 48–50 British Bank of Commerce, 535 CDFC, 319–20, 326 British Chambers of Commerce, 344 euromarkets, 182, 185 British economy floating sterling and convertibility,147 , IMF, 177 155–6 investment, 213 view on Bank’s Radcliffe evidence,101 openness, 12, 502 other, 33, 96, 162, 168n, 403 performance, 6–14, 139, 149, 173, 198, Bond Worth, 806 208, 380–1 Bonn Conference (1968), 420–2 British Gas Corporation, 727 Book of Common Prayer, 833 British Linen Bank, 329 Boothby, Lord, 83, 86, 125, 266 British Leyland Motor Corporation, 791 Boulter, John, 402, 467 British Match, 99

858 Index

British Petroleum (BP) Radcliffe, 87, 112, 119, 121–2, 134 sale of shares, 755–6, 797–8 other, 130, 193, 423 Bank’s shares transferred to Treasury Cairncross, Frances, 462 in 1981, 791, 801 Callaghan, James other, 355, 719 1964 crisis, 200, 204–5 see also Burmah Oil 1976 crisis, 750–1, 753 British Steel, 726 appointment of O’Brien, 227 Brittan, Samuel, 150, 404, 414, 649, 689, Bank Rate/MLR, 201–2, 670n, 683, 760 685 Britton, Andrew, 458 decimalisation, 346 Brookings Institution, 380 devaluation, 240–2, 373 Brown, A.J., 652 exchange rate, 745 Brown, George, 200, 236, 290, 294 Fairfields,326 Browne, Percy, 593–4 gilt-edged market, 691, 693 Bruce-Gardyne, Jock, 397 monetary policy, 290–4, 299–302, 305, Brunet, Jacques, 241 439 Brunner, Karl, 464 Wilson Committee, 806 Bucks, Michael, 332 other, 225, 358, 441, 443, 631, 634, 697, Bull, Peter A., 220 766 Bull, Peter J., 336, 351, 738 Canada Bullion Office,39 central bank publication, 62 Bulwer-Lytton, Hermione, 44 floating exchange rate, 148n, 422 Bundesbank, Deutsche, 214, 420–2, 766 other, 161, 334, 377, 412, 464n, 677 Bundy, McGeorge, 214 Capital Burmah Oil Company Agicultural Mortgage Corporation Bank’s rescue operation, 774, 791–7, (AMC), 323 829 Bank of England, 34, 72, 562 Bank’s purchase of Burmah’s BP shares, capital adequacy/ratios, 549, 551, 793–4 596–7, 612, 614, 620–1, 623, 727, legal action against bank by 820 shareholders, 797–801 CDFC, 319–20 Burnham, Peter, 149n EEA, 142 Burns, Arthur, 749, 757 ICFC, 322–3 Burns, Terry, 701, 760 Capital gains tax (1965), 292, 493 Burston Finance, 553 Capital Issues Committee, 551 Butler, Rab, 82–3, 109, 147, 593 Caplan, Gerald, 531–4, 546–7 Byatt, Derrick, 744, 761 Carli, Guido, 216, 241 Carlisle, Tony, 53n, 130, 432, 453, 647, Cadbury, Lawrence, 36n, 45, 47, 167n, 649 369 Carrington, Lord, 789 Cadbury Brothers, 366 Cartel, see clearing banks Cairncross, Alec Cassell, Frank, 490, 646n, 652, 741 devaluation, 196–7, 199, 239, 245, 374 Cassell, Gustav, 27 exchange controls, 419, 767 Cash ratio, 28–9, 80, 254, 275, 301, 398, IMF, 375, 396–7, 453 448–9, 488–9, 502, 675, 677, 689, monetary policy, 79, 83, 170, 172, 695, 832 429n, 450 Cash ratio deposit scheme, 64

Index 859

Cash deposits scheme, 305–10, 438, 484, Chief Cashier 486, 488 reduction in role, 823–5, 828 Catto, Lord, 34, 36, 43, 52, 168 role, 37, 51, 55, 262, 361, 609 Cedar Holdings, 523, 534–5, 537, 539 see also Jasper Hollom, John Fforde, Ceilings on advances John Page, Kenneth Peppiatt, Leslie 98%, 430–2, 436–7 O’Brien 100%, 308, 378, 427–8 Chief Cashier’s Office (CCO),37 –8, 55, 104%, 428 298, 304, 486, 668 105%, 296, 298, 300–2 Churchill, Sir Winston, 36 abandonment, 438 City Code, 331–2 as a control, 252, 300–1, 309, 438 City, the CCC, 485, 487–8, 490, 501, 508, 514–5 Bank Rate leak, 96, 98 disaffection with,300 , 427, 484 Bank’s relationship with, 38, 47, 61, finance houses, 432 125, 169, 264, 268, 318, 327–34, 441, loopholes, 435 489, 524, 585, 590, 636, 773, 779, reduction in, 258 790, 809–10 Regulation Q, 185 CCC, 501, 507 resumption of, 292, 298 exchange controls, 210 other, 377, 443, 461, 479, 519, 521–2, industrial finance,11 , 213, 788–9, 647–8 802–6 Central Banking and Information London as an international financial Department (CBID) centre, 82, 137, 226, 331, 333, 339, created, 128–9, 823 345, 440, 755, 780–5, 795 disbanded, 361 Radcliffe, 117–8, 121 Central bank co-operation, 162–6, 175, relations with HMT, 194, 226 185, 193, 207, 217, 227, 248 sterling, 156, 249, 743 Central banks, Bank of England work for, other, 11, 53, 63, 168, 186, 271, 807–8 37, 59 see also Rolls-Royce, secondary Central Bank of Nigeria, 337 banking crisis, Wilson Committee Central Bank of Uganda, 336 City Liaison Committee, 543, 782, 784 Central banks, overseas – Bank’s City Panel on Takeovers and Mergers, promotion of, 62, 318, 334–40 331, 354 Central Government Borrowing City Press, The, 556 Requirement (CGBR), 693 City University Central Policy Review Staff (CPRS), Graduate Business Centre, 801n 781–2 other, 685, 764 Central Statistical Office, 131 Clappier, Bernard, 758 Certificates of Deposit (CDs),234 , 481–2, Clarke, Donald, 323 520, 529–30, 687, 719, 785 Clarke, Hilton Chancellor’s Group on Monetary Policy, disclosure, 445 291–2 exemptions under Protection of Chartered Institute of Public Finance and Depositors Act, 594 Accountancy, 658n Radcliffe, 104 Cheap money, 65–6 Treasury bill tender, 278, 287 Chemical Bank, 168 other, 32, 52, 130, 296, 305, 590 Chequers, 172, 201 Clarke, Otto, 147 Chicago School, 20, 453, 472 Clarke, William, 96n

860 Index

Clearing bank/s restrictions on advances, 269, 292, 294, cartel, 275, 443, 479, 485–8, 508, 524 298, 300, 429 courted by DTI, 782 secondary banking crisis, 539, 549 loan to Government, 762 special deposits, 91, 255, 263–4 profitability, 445, 585 supplementary special deposits, 521 squeeze on profits, 275–6 other, 459 secondary banking crisis, 539–40, 543 Committee of Treasury, 36–7, 47, 72, 110, other, 44, 207, 255, 263, 296, 330, 431, 123, 260–1, 342–3, 369 493, 519, Committee of Twenty (C20), 714, see also, Barclays, cartel, CLCB, 737–40 Lloyds, mergers, Midland, National Commodity market loans, 334–5 Westminster Commodity markets, 334–5, 768 Clegg, Sir Cuthbert, 327 Commodity shunting, 150 Clews, Roger, 458 Common Agricultural Policy, 647 Clyde Port Authority, 795n Common Market, 5, 12, 180, 379, 407 Cobbold, Cameron Fromanteel See also European Economic career, 166–9 Community central bank co-operation, 165, 170, Commonwealth, the, 39, 50, 59, 62, 63n, 189, 227, 335–6 123, 151, 157, 296, 319–20, 338–40, control of bank lending, 170, 172, 527, 750 253–7, 268, 593 Commonwealth Central Banking Radcliffe, 77, 83–102, 107–12, 122–4, Summer School, 339 128, 132–4 Commonwealth Development Finance sterling, 151, 156, 165 Company (CDFC), 61, 319–21, 323, other, 32, 41, 42–4, 52, 54, 72–33, 176, 326, 354 331, 341, 476, 733, 766, 832 Companies Act(s) Coghlan, Richard, 689 1948, 67, 445, 560, 591, 593, 620, 796 Cohen Committee (on company law), 1967, 596–7 445 Other, 528 Coleby, Tony, 53n, 484, 564, 667–8, 670, Competition in banking, 269, 288, 295, 677, 826 427, 482, 484, 587–8, 593, 634, 637, ‘collective approach’, see convertibility 674, 687 Colwyn Report, 327 Competition and Credit Control (CCC) Commercial bills, 294–5, 297, 434, 479, assessment, 522–3 499, 507, 585, 718, 833 bankers’ balances, 811 Committee of London Clearing Banks banking supervision, 598–600, 604, (CLCB) 607, 637 banking supervision, 598, 611, 629 consultations, 499, 502–7, 676 CCC, 491, 503–4, 507 end of, 832 disclosure, 446 gilt-edged market, 394, 492–8, 513, Equity Capital for Industry, 805 664–5 minimum liquidity ratio, 280–1 impact on interest rates, 509, 511, paper on London as a financial centre, 517–8, 520–1 783 in operation, 508ff, 644–5, 677 reduction in rate of interest on special introduction of, 488, 507 deposits, 433 liability management, 672–4

Index 861

money market, 288, 498–9 price, 16, 651, 712 origins, 427, 492, 646, 686 ratio control, 298, 485, 699 press reaction to, 501 use of, 3, 81–3, 85, 89, 119, 174, 221, reappraisal, 514–7, 520–1 252–3, 256, 262–3, 292, 296, 298, role in the secondary banking crisis, 307, 309, 427, 432, 437, 439, 467, 524–6, 529, 531, 585 482–5, 489, 491, 500, 519, 521–3, Rolls-Royce crisis, 788 525–6, 588, 651, 686–8, 699, 773, seminar in the Bank, 501–2 781 special deposits, 511, 672–3 see also advances, ceilings, exchange Treasury reaction, 490–1, 774 control, hire purchase See also minimum lending rate, Controlling Committee, see Lifeboat Andrew Crockett, John Fforde Convertibility Compton, Sir Edmund, 84, 94 1947, 139, 146, 249 Comptroller and Auditor General, 73 1958, 145, 154, 156–7 Computers (use in the Bank), 351, 356–7, ‘collective approach’, 150 815–6 debate in the 1950s, 143–4, 147, Congdon, Tim, 662 149–52, 155 Conolly, Frederick, 194–5 eurodollar market, 183 Conservative Government exchange controls, 172 1970–4, 483, 487, 519, 786n George Bolton, 49 1979–83, 644, 698, 768, 770, 772, 831 gold convertibility, 49 Consolidated Goldfields,767 interwar years, 140, 145–6 Constitution and structure, Bank of sterling balances, 22, 414 England, 34–42, 57, 101, 108–10, US dollar, 388, 422 779–80 see also Robot plan Consumer Credit Bill, 602, 607 Cooke and Bull report (on sterling), 220 Continental Illinois, 767 Cooke, Peter Contingency plans (for sterling) banking supervision, 570, 584, 603, Androcles, 414 614–5, 629–32, 634 Bootstrap, 414 City Panel, 331–2 Brandon, 414, 418 ‘Cooke and Bull’ report, 220 Brutus, 413, 415 Cooke Committee (Basle Committee Conqueror, 414 of Supervisors), 625, 627–8 Cranmer, 413, 416 decimalisation, 345n Galileo, 414 Kahn Report, 219 Hecuba, 411, 413–4, 416, 418 other, 782, 826 Orestes, 414 Coombs, Charles Palinurus, 414 Bridge, 404 Priam, 413, 416 euromarkets, 184 Proteus, 414 exchange market ‘bear squeeze’, 215, Telemachus, 413 217 Controls gold, 161, 188–9 consumer credit control, 461, 483–4, international exchange rates, 418 491, 508, 651 sterling, 193, 201–3, 209, 215–6 import, 151, 428, 430l sterling devaluation, 240–1, 378, 421 liquidity control, 614 swaps, 166

862 Index

Coombs, Herbert, 226 letter of intent, 645, 671, 683, 756, 760 Co-operative Wholesale Society (CWS), Nigerian selling, 743, 746 530–1 pressure on sterling in March, 742–6 Cooper Brothers & Lybrand, 327, 555–6, recovery from, 697, 759–66 611, 788–9, 803 see also sterling balances Cooper, Patrick Ashley, 43, 45 Crockett, Andrew Cooper, Richard, 380 CCC, 488–90 Coopey, Richard, 323 career, 130, 338 Copisarow, Alcon, 356–7 IMF seminar, 396, 458 Cork, Kenneth, 537 money, 398, 401–2, 463–4, 468 Cornhill Consolidated, 544 ‘The importance of money’, 452, 464 Cornwall Equities, 563 Croham, Lord see Douglas Allen Corpus Christi College, Cambridge, 33, Cromer, Rowley (3rd Earl of Cromer) 44 Bank Rate, 193, 197, 271, 277, 293 ‘Corset’, see Supplementary Special banking system, 330–1, 440, 445, 594 Deposits career, 166–8, 366, 518 Counterparts approach, 28–9, 401, 649, ceilings, 292, 296, 298, 300 679 euromarkets, 187, 424, 760 Court of Directors gilt-edged market operations, 282, appointment process, 36, 369 284–6 Bank Rate leak, 95–6, 98–9 liquidity ratio, 280–1 decision on Bank Rate, 36, 63, 123–4, special deposits, 272, 274, 294 260–1 sterling Radcliffe, 109, 115, 122–3 1961, 170, 172, 175, 176, 268 remuneration, 55–6 1964, 199–208 responsibilities and role, 34–5, 47–8, 1965, 214, 216–8 584, 590, 776 other, 199, 211, 222–3 structure and composition, 35–6, 45–7, Treasury bill tender syndicate, 278 359, 366–71 other, 64, 128, 132, 178, 270, 278, see also Bank Rate leak, executive 290–1, 324–5, 336, 352, 441, 443, directors, part-time directors 476, 828–9 Coutts, 48, 595 Croom-Johnson, see Crown Agents Coyne, James E., 134n Crosland, Anthony, 87, 329 Cramp, Tony, 130, 398, 449–50 Crouch, Robert L., 136, 289, 398, 448–9 Craik, Ian, 612 Crown Agents Crawford, Malcolm, 751–2 Croom-Johnson, 636–7, 830–1 Credit counterparts, 28 Fay Report, 529, 635–6 Credit policy, 296, 307, 429, 433 move into banking business, 527–9 Credit restraint, 268 secondary banking crisis, 553–6, Credit squeeze, 86, 255, 423, 431, 436 569–70, 581 Credit Trading Bill, 62, 592 Stevenson Report, 528, 635, 830–1 Crick, Leslie, 380 Crowther Report (on consumer credit), Cripps, Stafford,44 491, 602 Crisis, 1976 sterling Cuban missile crisis, 180, 285 Crawford letter, 751–2 Cubbage, Michael, 341 IMF mission and negotiations, 752ff Cuckney, John, 554–5 June 1976 standby, 658, 749 Currency boards, 335

Index 863

Currency and Bank Notes Act, 60 Department of Trade and Industry (DTI), Cycles, 9–10, 208 banking supervision legislation, 506, 602, 604, 606–7 Daane, J. Dewey, 240–1 London as a financial centre,782 Dahrendorf, Ralf, 807 other, 325, 506 Daily Mail, 168 Deposit insurance, 618, 620 Daily Mirror, 233, 355, 365–6, 531 Deposit-taking institutions, 578, 596, Daily Telegraph, The, 83, 97, 118 602–3, 605, 607, 613, 618–9, 622–3, Dalton, Hugh, 34, 43–4, 109, 133 633 Daniell, Peter, 474n, 492–7, 497, 500 Deputy Governor Dascombe, Arthur, 96–8 see Humphrey Mynors, Jasper Hollom, Davenport, Nicholas, 117 Kit McMahon, Leslie O’Brien, Davies, Denzil, 630, 632–3 Maurice Parsons Davies, Gavyn, 693 Deutsche Bank, 379 Davies, Howard, 369 Deutsche mark (DM), see West Germany Davies, Jack, 366 Devaluation Dawkins, Douglas, 767–70, 826 1949, 145, 147, 198, 249, 372 Day, Professor Alan, 150–1 French, 1948, 145, 196 Day, Robin, 169 1958, 196 Dealing and Accounts Office,39 , 52, 152, 1969, 418, 420 160 FU committee, 217–8, 237 Dear money, 83 j-curve, 372 Debden, see Printing Works Labour opposed, 248 Debt management planning for, 217ff, 223, 225 objectives, 107–8 prospect of further, 380, 382, 412–3, 715 and monetary policy, 115, 126, 135–6, talk of in 1964, 198, 203–4, 206, 208, 251–2, 466–7, 687, 692 211, 214–5 Radcliffe, 113 Devaluation, 1967 other, 291 aftermath, 372, 378–80, 382, 393, 420 see also gilt-edged market announcement, 243, 374 Decimalisation, 343–6 as solution, 372 Deflation,15 , 82, 135, 377–8, 719 associated measures, 241, 308, 396, Deflationary measures,209 , 224, 265, 402, 406–7, 412 299, 378, 421, 430 balance of payments, 376 De L’Isle, Lord, 537 Bank’s view, 199, 223, 237, 373, 377 Dell, Edmund, 741, 745–6, 794 BIS view, 241 De Moubray, Guy, 62, 286, 339, 357, consequences, 333 448–9, 450n fears of further, 378–80, 382, 413 Deming, Fred, 420n floating,237 Deming Group, 420 forward intervention, 244, 731, 745 Denmark, 418 gilts and money markets, 460, 477 Department of Economic Affairs (DEA), Gold Pool, 393 130, 238, 290 inevitability, 235–6, 239, 241 Department of Trade j-curve, 372 banking supervision legislation, 617, 620 money supply, 397 London and County Securities, 546 reserves, 389, 391, 406, 407, 412 Slater Walker, 560 sterling crisis, 198

864 Index

Devaluation (cont.) dollar standard, 144 sterling holders, 373, 405 euromarkets, 182–6, 191, 479, 762 support for sterling, 228, 239–40, 243 gold anchor, 157 timing, 239, 243, 247 gold market, 394 US view, 241 gold reserves, 138 War Book, 218 gold shortage, 138 other, 403–4, 482 IMF, 165 Dibbs, Alex, 533–4 international reserve, 395 Dicks-Mireaux, Leslie, 130, 357, 397, pressure on, 138, 372, 379, 415, 716–7, 458–9, 463, 468 761 Dillon, Douglas, 177, 188 price of gold, 158, 160–1, 187, 189, Directive (under 1946 Act), 81–2, 92, 395, 710 432–3 stabilization fund, 141 Disclosure, by clearing banks, 67, 354, sterling area, 146 393, 441–2, 444–7, 551 sterling balances, 409, 735, 736 Discount houses support for, 421, 717 asset portfolios, swaps, 166 CCC, 499, 502, 516 UK devaluation, 147, 196, 203, 213, control of credit, 295–6, 430 243 discount market, 102–4 other, 708, 715, 717, 719, 721, 733 MLR, 516–7, 683 Domestic credit expansion (DCE) role, 79–80, 82, 104, 287–9, 305, 309, 1968–70, 376, 399–402, 452–3, 456–60, 477–8, 482 463, 466 and short-maturity gilts, 497 1976 target, 645, 659, 671, 679, 755 supervision of, 62, 589, 594 apparent death of, 649 other, 38, 59, 130, 374, 446 article in the Quarterly Bulletin, 452 Discount Office gilt sales, 670 end of, 361, 609–10 IMF, 463 secondary banking crisis, 526, 542, IMF Seminar, 396, 398, 452–3, 458 569, 578 Polak, Jacques, 396, 398, 401, 456, 459 work of, 38, 62, 104, 278, 296, 305, 434, other, 482, 489, 494, 667, 692, 704, 748, 479, 590–1, 596–7, 599, 601, 605–7, 754, 831 611, 616 see also money supply Discount market, 58, 82, 100, 103–4, Donoughue, Bernard, 745 118, 239, 277–8, 295, 299, 305, 434, Dow, Christopher 478, 482, 498, 502–3, 515, 517, 585, career, 647 683, 697, see also London Discount exchange rate, 712n, 720, 763–4, 765 Market Association monetary base control, 689 Dividend Pay and Loans Office,39 monetary policy, 648, 653–7, 677, 686 Dollar, Canadian, 422 other, 119, 381, 615, 775–6, 778, 825–6 Dollar, US Down, Alastair, 792, 794, 799–800 Burmah Oil, 792–6 Downey, Gordon, 552 certificates of deposit,481 Downing Street, 199, 202, 215 convertibility, 386 Draconis, 670, 751 devaluation, 161, 164, 422–3, 710, 717 Drawing Office,39 , 332, 598 defence of, 249 Dresdner Bank, 762 dollar holdings, 217, 228, 233–5, 276, Duck, Nigel, 675, 688–9 383, 386, 419, 422 Dyson, Jim, 540

Index 865

Eagle Star Insurance Company, 533–4, 553 Euromarkets, 182–7, 423–6 Earmarking, 159n European Economic Community (EEC) EBS Investments (EBSI), 568 banking directive, see banking Eccleston, Harry, 342 supervision Economica, 450 committee of twenty, 737 Economic Intelligence Department (EID) European Union, 4 formation of, 128, 823 exchange control, 767, 769 reorganisation, 357, 361 Groupe de Contact, see banking other, 129, 363, 397, 439, 451, 454, 460, supervision 481, 486, 648, 689, 705, 824 harmonisation of monetary Economic Journal, 448, 651, 688 instruments, 648–9, 678 Economic Trends, 232, 456, 458 IMF Special Drawing Rights, 420 Economist, The, 98, 105, 154, 158, 159n, monetary base control, 689 226–7, 501, 507, 527, 536, 623, 658 negotiations over UK entry, 180, 237, Economists 284, 390, 406, 418 Bank, 51, 54, 99, 128–9, 134, 447, 452, sterling in the 1970s, 711, 714, 717 653, 706, 826 Treaty of Rome, 4–5 devaluation, 214 European Free Trade Area (EFTA), 12 financial stability, 424 European Monetary Union (EMU)/ Treasury, 199, 213, 716 European Monetary System (EMS), Keynesian, 20 764, 766, 769 long haired, 474 European Payments Union (EPU), 50, Radcliffe, 87–8, 90, 100, 110–1, 116–7, 144, 148, 151, 157, 163 119–20, 124, 128, 184 European Union, see European other, 2, 6, 27, 33, 135, 148, 459, 463, Economic Community 501, 668, 676, 754, 760, 777, 779 Evening News, The, 430, 808 E. D. Sassoon Banking Corporation, 569 Evening Standard, 260, 271 Edward Bates and Sons/Holdings, 525, Exchange control 556, 564–8, 571, 581, 615 abolition, 766, 772–3, 783 see also EBS Investments Alec Cairncross, 419 Eichengreen, Barry, 142, 245 authorised banks, 591 Einzig, Paul, 184 Bank’s management of, 38–9, 41, 50, Eire, 340 57, 59, 108, 122, 210, 338 Elasticity pessimism, 712 Bank staff employed, 40, 59, 212, 361, Electricity Council, 535, 727 611 Emminger, Otmar, 420, 422 Bank’s view on, 172, 173, 210–2 Equity Capital for Industry Limited costs of management, 67, 73, 74, 212, (ECI), 804–6 347, 351, 353, 359 Erskine, Murray, 569 Exchange Control Act 1947, 39, 59, 591 Establishment Department, 37, 39, 357, Hayek, 212 361 in support of sterling/reserves, 767 Eton College, 42, 47, 98, 130, 560 Kahn, 220 Euro-currency market, 374, 423, 426, overseas investment, 213 584, 731 Radcliffe, 116 Eurodollar borrowing, by HMG, 727, relaxation, 768 736, 763 SCNI, 358 Eurodollars, 50, 183–6, 424–6, 439, 479, sterling area, 146, 711 516 sterling contingency plans, 44, 415, 418

866 Index

Exchange control (cont.) wider bands, 22, 154, 472, 767 SSDs, 700–1 see also floating exchange rate, forward use of, 21, 59, 151, 157, 172, 174, 191, intervention, snake 206, 209–12, 223, 333, 372, 391, 406, Executive Director, UK, IMF (and 418, 713, 719, 731 alternate), 167–8, 178, 336, 377, 738, Exchange control, other countries, 141, 741 144, 248 Executive Directors, Bank of England Exchange Control and Overseas, 38–9 remuneration, 56, 365 Exchange Control Department, creation role, 32, 37, 48–9, 361, 366, 369, 777, of, 361 809, 823–5 Exchange Equalisation Account (EEA) SCNI, 359, 369–70 Bank’s management, 38, 57, 59, 108, Exim Bank/Eximbank, 203, 215, 235n 707 costs of management, 67, 73, 352–3, Fabian Society, 809 359, 812 Facial hair, 49 purpose and operation, 22, 60–1, Fairfields (Fairfield Shipbuilding and 141–2, 206, 219, 358, 712, 731 Engineering Co), 325–6, 333, 353–4 Exchange Rate Fairfield Rowan,326 1979 Conservative government, 831 Farrant, Richard, 616, 633 Committee of Twenty, 8, 737 Faulkner, Eric, 491–2, 518, 530, 549, 787 Common Agricultural Policy, 648 Fay, Judge Edgar, 529, 635–6 depreciation, 149, 740–1 Fay Report, see Crown Agents devaluation, 237, 245 Federal Reserve/Fed effective rate, 708, 736 FOMC, 209, 418 exchange controls, 767 sterling devaluation, 243, 247, 249, 378 fixed rates, 21–2, 137, 416, 422, 447, swap facilities, 197, 203, 222, 228, 377, 710, 737, 765 383–4 fixed vs. floating, 237 other, 25, 27, 51, 140, 159n, 161, 165–6, flexible rates, 21, 151, 237, 416 193, 214, 234, 242, 369, 417–8, 424, IMF, 749, 756 426, 456, 712, 738, 749, 777 inflation,19 , 137, 760, 764 Federal Reserve Bank of New York management, 11, 18 (FRBNY), 160, 162, 188, 465, 749 misalignment, 2 Federal Reserve Bulletin, 90 and monetary policy, 19, 684–5, 705, Feldman, Marty, 474 742ff, 760, 773 Fenton, Roy parity, 139, 148 working party on re-fixing sterling, pegged rates, 5, 19, 21–2, 25, 139ff, 714–5 143, 145, 147, 152, 173, 251, 396, other, 333, 336–7, 379, 405, 731 426, 508, 711–2, 714, 737, 765 Ferras, Gabriel, 222 policy, 22, 105, 691, 705, 711, 712ff, Fforde, John 732, 740, 741–2, 749, 763, 764, 831 Bank of England Annual Report, 133 real rates, 709, 763 Bank of England independence, 177 regimes, 19, 139, 417–8, 423 Bank of England Quarterly Bulletin, responsibility between Bank and 131 Treasury, 19, 707, 712 Bank Rate, 92, 171, 238, 428 stabilisation, 684 banking supervision, 63, 590, 592, sterling balances, 222, 405, 735–6 600–8, 612, 617, 619–21, 630, 637

Index 867

banking system, 330–1, 439, 440 profits, 67, 69–72, 74–6, 351–4, 359, career, 51, 701–2, 826 774, 810–12, 817–22 cash deposits scheme, 307–8, 439 reserves, 67–8, 70, 72, 347, 353–4, 359, ceilings, 300, 309, 428–9, 432–4, 521 795, 811–2, 817, 819–21 clearing banks’ disclosure, 446 Finance Corporation for Industry (FCI), CCC, 485–90, 494–5, 505–6, 514 320–4, 354, 540, 803–4 DCE, 402 Finance For Industry (FFI), 322, 804 gilt-edged market operations, 302, Finance houses, 62, 269–70, 297–8, 302, 469–74, 477, 494, 497–8, 669, 691–3 330, 430, 432, 485–6, 491–2, 500, Grand Old Duke of York, 669 506, 522, 578, 593, 598–9, 612 industrial finance,791 , 806 Finance Houses Association (FHA), 270, Keogh, 580, 590 429n, 432, 492, 506, 593–5, 612–3, MLR, 509, 669–70 629 money, 451, 463, 669–70 Financial Times, 14, 127–8, 360, 544–5, money market operations, 305, 477–9, 551, 649, 678, 686, 689, 768, 770 502 Finch, David monetary policy, 649, 655–6, 687, 689, 1976 crisis, 748–9, 752–5 695–6, 698, 703 monetary base control, 659, 676, 678, monetary targets, 658–9, 687–8 703 public relations, 777 Finvest, 528 Radcliffe, 85, 100 First Arabian Corporation, 565–6 reserve asset ratio, 675 First National City Bank, 481 reserve currency, 182, 406 First National Finance Corporation Rolls-Royce, 488, 787–8 (FNFC), 533–5, 546–8, 552–3, 572 secondary banking crisis, 549, 559, 637 Fiscal agent, 177 special deposits, 301 Fisher, Irving, 27, 78 sterling, 408, 715–6 Fisher, John, 50, 58, 254 other, 44, 94, 130, 165, 237–8, 380, 397, Fleming, Marcus, 21–2 405, 437, 600, 636, 676, 695, 782, Flemming, John, 826 799, 807 Floating exchange rate Fiat money, 5 1950s discussion, 146–56 Fiduciary issue, 60, 340, 505 breakdown of Bretton Woods, 422, Figgures, Frank, 410, 432, 437, 473, 490 710n Films, about the Bank, 76n, 776 CCC, 508 Finances, Bank of England devaluation, 218–9, 237–8, 372, 379 bankers’ balances, 66–7, 75, 347, 354, exchange control, 419 810–1, 813 exchange-rate policy, 708, 712–3, 715, capital, 34, 72, 562 718, 742, 765 cash ratio deposit scheme, 64 forward exchange, 730 charges to government, 64, 73–5, gilts, 513 351–4, 813–4 interwar, 142, 146 ‘dividend’ payment to HMT, 72, 347, managed, 140, 142 351, 353–4, 774, 812, 819–20, 830 monetary policy, 704–5, 721, 831 expenditure, 41n, 67–70, 72, 74, 347, Radcliffe, 87 351, 354, 359, 810–3, 815–7 schemes for, 181, 187, 196 income, 61, 64–8, 72, 346–7, 354, 359, sterling area, 405, 413–8 811, 813–4, 817 theory, 6, 22, 721

868 Index

Foot, Michael, 698, 704 exchange controls, 59, 209 Forbes, Archibald, 429, 491–2, 503–4, exchange rate in 1970s, 707, 715, 538, 787–8 718–20, 745–6, 749 Ford, Gerald (US President), 753 floating rate, 219, 415 Ford Motor Credit Company, 296 forward intervention, 205–6, 245, 732 Foreign banks in London, 226, 269, 328, increases in, 179, 191, 220, 382, 386, 492, 612, 780–1, 784 388, 419, 720–1, 760, 762–3, 772 Foreign-currency Bonds, 757–8 manipulation of, 166, 229–33, 235, Foreign-currency borrowing, 210, 391, 373, 389, 721–3 721, 723, 726–7, 757–8 pressure on, 153–4, 175–6, 202, 205, Foreign Exchange Committee (FEC), 784 215–6, 224, 236–8, 243, 383, 720 Foreign Exchange and Currency Deposit Robot, 148 Brokers’ Association (FECDBA), sterling area, 145, 378, 407–9, 411, 413, 784–5 714, 734–5 Foreign Exchange Division (see Gold and other, 28, 59, 207–8, 732, 771 Foreign Exchange Office) See also Cecil King, Gold Pool, swaps Foreign exchange intervention Forsyth, John, 669n 1968–71, 384–9, 415–6 Forth Port Authority, 795n 1970s, 712, 714–5, 720, 722–3, 761, Forward intervention 763, 767 1964–67, 205–6, 244–5, 731, 773 1976, 740, 743, 746–8, 750 1970s, 731–2 policy, 764, 772, 773 oversold position, 236, 244–5 spot intervention, 732 profits/losses, 244–5 other, 174, 684, 711, 739 view of Radcliffe, 206 see also forward intervention, swaps, Fowler, Henry, 215–6, 383, 421 sterling crises France Foreign exchange markets Bank courses, 340 bear squeeze, 215, 217, 220 Bonn meeting 1968, 420–2 closed, 712, 717 capital controls, 769 forward market, 107, 157, 198, 205–6, devaluation 1948, 145 730, 732 devaluation, 1957, 153 Roy Bridge comments, 245, 713 devaluation 1958, 196 state of/conditions in, 191, 203, 206–8, devaluation 1969, 386, 418 412, 417, 420, 477, 530, 717, 750, economic planning, 290 760 Gold Pool, 189, 225, 394–5 tactics, 174, 731–2, 746–7 sterling agreements, 412, 758 other, 58, 177, 489, 707, 722, 809 support for sterling, 215–7 see also forward intervention, Foreign wine, 415 Exchange Committee, swaps other, 14, 142, 180, 568, 692 Foreign exchange reserves Franklin National Bank, 625 adequacy, 174, 195, 382 Franks, Sir Oliver (later Lord Franks) balance of payments, 13, 139, 174, 250 candidate for Governor, 167–8 composition, 188, 389–91 Radcliffe, 88 contingency planning, 413 other, 91, 255, 264, 268–9 devaluation, 243, 382 Fraser, Ian, 806 dollar portfolio, 228, 233–5 Fratianni, Michele, 678 euromarkets, 183 French Revolution, 14

Index 869

Freshfields,606 , 798 CCC, 484, 488–9, 492–6, 497–9, Friedman, Milton, 20, 23, 136, 142, 186, 500–1, 508, 513–4 402, 417n, 447, 451, 468, 474, 676, conversions, 105, 113 751 criticism of Bank, 448, 662 Frimpong-Ansah, Jonathan, 738 Fforde’s views on, 470–1 Fringe banks, 278, 525–8, 534, 537, 544, Grand Old Duke of York, 669 547, 554, 570, 575, 578–80, 599, interest rates, 282–6 605–7, 611, 613, 637 maturity profile,283 , 303–4, 475, 496 Fringe Banks Standing Committee, ministerial interest in, 691–4 535–6 market tactics, 1960s, 265–8, 302–4, Fry, Richard, 99n, 219 468–77, 492–3 FU Committee, see devaluation market tactics, 1970s, 664–70 Functions, Bank of England, 56–64, 101, origins, 104–7 589 over-subscription, 303, 694–5 Radcliffe, 89, 102, 107–8, 114, 116 Gaitskell, Hugh, 109, 110n tap stocks, 106–7, 285, 302, 469–71, Galpin, Rodney 476, 497, 500, 660, 668, 689, 694 banking supervision, 590, 600, 606, Watling Street, battle/siege of, 694–5 610, 612, 615, 621 other, 48, 58, 102, 194, 251, 263, 274, Crown Agents, 554, 636 280, 381, 399–400, 460, 467, 520, Edward Bates, 565, 567 680, 699–700, 703, 774, 809, 824, restructuring of Bank, 826 826 secondary banking crisis, 533, 546 See also debt management Slater Walker, 558 Glyn Mills, 47, 329, 366, 595 Treasury bill syndicate, 498–9 Godber, Lord, 319 Wallace Brothers, 571 Gold, Joseph, 164 Gatekeeper, 63 Gold and Foreign Exchange Office,713 Geddes, Reay Gold convertibility, 138 Industrial Reorganisation Committee, Gold market, London, 158–9, 161–2, 324 180–1, 188–90, 224, 374, 383, 393–5 Shipbuilding Inquiry, 325–6 Gold Pool General Agreements to Borrow (GAB), collapse, 145, 372, 374, 392, 393–6 164, 175, 181, 201, 374, 403 earmarking, 159n General Agreement on Tariffs and Trade French withdrawal, 225, 394–5 (GATT), 3, 50, 151 operation, 162, 187–90, 224–5, 248 Germany, see West Germany gold reserves, George, Edward (Eddie, later Lord), 56, Gold robbery, 60n 693, 695, 698, 702, 738, 826 Gold standard, 15, 25, 78, 105, 138, Gerrard and Reid, 589 140–1, 143–4, 784 Gilbert, Milton, 222 Goldman, Samuel, 193, 211, 308, 446, 507 Gilletts, 130 Goldsmith, James, 559–60, 562 Gill, Malcolm, 53, 220, 612, 620, 629–30, Gonville and Caius College, Cambridge, 830 519 Gilmour, Ian, 147n Goode, Richard, 375, 381 Gilt-edged market Goodhart, Charles ARIEL, 666–7 career, 130, 172 Bank’s views in 1960s, 471–5 CCC, 491, 521

870 Index

Goodhart, Charles (cont.) Griffiths, Brian,289 , 462, 502, 685n, DCE, 399, 400, 453, 456, 457, 458 698–9, 810 gilt-edged market, 668, 689 Grindlays Bank, 760 monetary policy, 646, 647, 655, 656, Group of Ten (G10), 214–6, 242, 375, 676–8, 686 419, 421, 426, 614–5, 625, 710, 737, monetary targets, 657, 658, 671, 687 762 monetary base control, 676, 688, 754 Group on Monetary Policy, 437, 465, 467, money supply, 455, 467, 649, 652, 679 485–6 ‘The importance of money’, 452, 464–6 Guardian, The, 525n Radcliffe, 117 Guernsey, 300, 562 reserve asset ratio, 674, 675 Guevara, Che (Ernesto), xix SSDs, 521, 674, 687 Guilder, 422 other, 357, 398, 399, 455, 459, 460, 464, Guindey, Guillaume, 159 468, 469, 654, 668, 670, 673, 676, Gurkha Regiment, 63n 696, 698, 701, 704, 721, 767, 807, Guth, Wilfried, 379 826 Guy Butler & Co., 287 Goodhart’s law, 400n Goodson, Harry, 496 Hall, Frank, 600, 602 Gordon, Charles, 535, 580 Hall, Richard, 335n, 526 Gordon Riots, 63 Hall, Robert, 84–5, 88, 94, 121, 135, 155, Gore Browne, Tommy, 494 170, 172 Gorton, John, (Australian prime Hallett, Richard, 335n, 716, 718, 788 minister), 410 Halsbury, Lord, 345, 366 Goschen Rule, 191, 192n Halsbury Committee, 345, 366 Government Bonds, see gilt-edged Hambro, Charles, 43, 45, 47, 110, 124, Government Broker 330, 369, 425, 560 CCC, 492–7, 500, 513 Hambro, Jack, 43 evidence given to Radcliffe,101 , 107–8 Hambros (Bank), 47, 533, 560, 564, 566, role, 63, 106, 265, 469–71, 473–4, 689 730 other, 99, 102, 662, 666, 694 Hamburger, Michael, 468 see also Mullens & Co. Hanbury-Williams, John, 44–5, 47, 110, Government budget constraint, 20–1 168, 369 Governor Hancock, David, 768 appointment, 48, 52, 369 Hansard, 134 remuneration, 55–6, 363 Hansen, Alvin, 2 also see Cameron Cobbold, Gordon Harcourt, Lord, 88, 124, 167 Richardson, Leslie O’Brien, Rowley Harrod, Roy, 119–20, 135, 161, 168, 186, Cromer 380 Graduate recruitment, 41, 53–4, 130, 363, Harmood Banner, 532 366, 447 Haslam, Eric, 335, 338, 378 Grafftey-Smith, Jeremy ‘Jinx’, 569 Haw Par, 558–9 Graham, Andrew, 807 Hawker, Cyril, 49, 56, 113, 263, 445 Graham, Stuart, 540, 549 Hayek, Friedrich von, 78n, 211 Great Depression, 2, 79, 140, 142, 183n, Hayes, Alfred, 160–1, 168, 193, 235, 234n 240–1 Greece, 11 Healey, Denis Greenwells, 458, 676 1976 crisis, 749–51, 753, 755

Index 871

Burmah rescue, 792, 797, 800 career, 32, 52, 826, 829 eurodollar loan, 727 CCC, 485, 496, 507 exchange rate, 742, 744–5 credit control, 292, 296, 308, 435 gilts, 684, 691–2 Crown Agents, 528, 554, 636 money supply, 654, 657–9, 679 gilt-edged market operations, 114, 302, MLR, 670, 683 304, 473–5, 496, 498 proposed banking legislation, 622 illness of Maurice Parsons, 404 Slater Walker, 563 industrial finance,319 , 804 special deposits/SSDs, 660, 688 liquidity ratio, 279–81 view of economics, 702 Mersey Docks and Harbour Board, 791 other, 519, 523, 829 money, 397, 508 Heasman, Roy, 128–9, 220, 298, 357 money market operations, 276, 288–9, Heath, Edward 299, 499 gilt-edged market, 513 Rolls-Royce, 787 relationship with Leslie O’Brien, 518, SCOOP, 529, 530 787 secondary banking crisis, 535–42, 549, other, 520, 521n, 523, 645 557, 560, 572, 584, 654 Heath Government, 523, 526, 644, 788, special deposits, 263, 275 804 use of Bank Rate, 238, 294 see also Conservative government, Wilson Committee, 807 1970–4 other, 97, 100, 197, 343, 353, 358, 380, Hedley-Miller, Mary, 391, 752 415, 437, 448, 716, 801, 808–10 Henderson, David, 20 Holtrop, Marius, 28, 216, 222, 379 Henderson, Hubert, 135 Hong Kong, 409, 558, 735, 750 Henry Thornton Lecture, 764 Hongkong and Shanghai Banking Herstatt Corporation, 337 failure, 548, 625 Hooley, Frank, 562, 577 and foreign exchange losses, 730–1 Hoover, Herbert (US President), 234n Hill Samuel Hotson, Anthony, 698 exposure to Herstatt failure, 731 Houblon, Sir John, 99n, 226 failed merger with Slater Walker, 559 Houblon Tankard, 99 other, 532 Houblon-Norman Fund, 51, 129 Hire purchase controls House of Commons, 133, 356, 376, 699, refrigerators, 273 755 other, 83, 108, 113, 170, 209, 252, 258, Houthakker, Hendrik, 417 262–5, 268–9, 273, 292, 294, 296, Hove Conference (seminar), 459, 461–4 378, 430, 435, 491, 522, 535, 647 Howe, Geoffrey Hirsch, Fred, 249, 420n exchange control, 768–70 Hoar, Stanley, 319 Minister of Trade, 606 Hollom, Sir Jasper other, 698–701, 765, 832 assistance to commodity traders, 333 Hydro Conduit Corporation, 767 Bank of England finances 75, 353–4, Hyperinflation, 2 820–2 Bank of England Quarterly Bulletin, 132 Iklé, Max, 165, 216 banking supervision, 301 Import controls, see controls banking system, 329, 445–66 Incomes and Corporation Taxes Act 597, Burmah Oil, 793–801 1970

872 Index

Incomes policy hyperinflation, 2 Bank’s view, 270, 291, 508, 653 incomes policy, 249, 270, 291, 644, pay pause, 270 651, 653 scepticism about value, 223 interest rates, 283, 310, 468, 513, 662 used in effort to control inflation, 137, monetary policy, 6, 16, 19, 402–3, 174, 249, 252, 283, 284, 373, 644, 653–4, 678, 698–9 651, 697, 705, 716, 741 money growth, 25, 79, 463, 508, 522, Independence, Bank of England 652, 657–9, 832 Bank’s finances,64 , 811–2, 819, 822 output, 7, 16 banking supervision, 618, 773 sources, 83, 124, 137, 508, 705 case for 16, 21, 26, 169 stagflation, 6, 10, 484 exchange rate, 744, 746 unemployment, 20, 23, 26, 373, 751 interest rates, 225, 685 United States, 158, 395, 705 London as financial centre,774 other, 15, 21, 26, 179, 226, 261, 267, nineteenth century, 773 282, 365, 394, 468, 526, 547, 662, Radcliffe, 109, 114, 121 668–9, 693, 701, 703, 811 reconsideration of in 1970s, 775–6, Inland Revenue, 597, 782 778–9 Institute of Bankers, 57, 339, 578 secondary banking crisis, 584 Institute of Bankers in Scotland, 671n threats to, 359, 482 Institutional Shareholders Committee tradition of, 34 (ISC), 802 Wilson, 370 Inter-bank market, 287, 479–81, 516, 520, India, 44, 52, 87n, 147, 154, 568, 758 529, 675, 780, 785 Industrial and Commercial Finance Inter-Bank Research Organisation Corporation (ICFC), 320, 322–4, (IBRO), 781 354, 802–4 Interest Bearing Eligible Liabilities see also FCI, FFI (3i) (IBELs), 522, 649, 659, 674, 687–8, Industrial finance,318 , 774, 801–4, 808, 700 826 Interest Equalisation Tax (United States), Industrial Finance Unit (IFU), 774, 803 185 Industrial Reorganisation Corporation Interest rates (IRC), 324–5, 354, 786, 803–4 Bank setting, 118, 126, 225, 438 Inflation banks’ cartel, 500 1950s, 82–3, 86, 137, 154 Bank’s finances,347 , 354 1960s, 5, 23, 373, 645 CCC, 491, 508, 513–5, 520–3 1970s, 483–4, 510, 513–4, 645–6, 648 controls, 25, 29–30 Bank’s finances,354 , 583 euromarkets, 183 clearing banks’ capital, 551 expectations, 398, 669, 689 control, 21, 93, 252, 256, 258, 467, 831 fringe banks, 525, 529, 534 cost-push, 6, 173, 270, 291, 466, 652 gilts, 105, 106, 473–4, 477, 496, 689 devaluation, 378, 402 inter-bank, 520 exchange rate, 137, 144, 154, 173, interest-rate policy, 104–5, 118, 137, 714–6, 720, 764 284, 309–10, 376, 399, 470, 477, 482, expectations, 22, 24–6, 154, 283, 469, 490, 644–6, 684–5, 704, 717 645, 648 international differential, 193, 222, 239, euromarkets, 374, 423 261, 276, 761, 767 fixed exchange rate, 22, 422 international cooperation, 171, 228

Index 873

investment, 82, 135, 199, 647, 720 Smithsonian, 711 long-term, 19, 105, 112, 267, 470 Special Drawing Rights, 420, 719 monetary analysis, 19–20 staff Papers,28 monetary policy, 19, 25, 51, 66, 427, sterling balances, 407, 417, 436, 736 438, 477, 653–4, 680–7 sterling convertibility, 157 money, 24, 79, 136, 450, 653, 662, 687, support for sterling, 165, 170, 174–81, 697, 700 191, 197–8, 209, 228, 241, 248, 715 Radcliffe, 112, 135, 199, 461, 466 International monetary reform, 419–23, real, 86, 126, 402 714, 717 short-term 104, 486, 489, 672–3, 686 see Committee of Twenty, Bonn structure, 105, 112, 135–6, 283, 297 Conference, SDRs sterling, 22, 105, 205, 647, 684, 720, Iran, borrowing from, 727 744 Irish leak, 434–5 see also Bank Rate, Minimum Lending Irmler, Heinrich, 420 Rate Israel-British Bank, 548, 625 International Clearing Union, 143 Issue Department, 60, 67, 90, 106–8, International monetarism, 15, 760 113–4, 141, 302–3, 469–70, 492, 675, International Monetary Fund (IMF) 793–5, 801, 811 1976 crisis and negotiations, 657–62, Issue Department deposits, 675 737–48 Italy, 11, 145, 189, 241, 340, 717, 769 beginnings, 3, 139, 143–5 Bank of England account, 39 J-curve, 380 ceilings on lending, 298, 302, 429 Jacobsson, Per, 164, 177–8, 187, 337, 345n conditionality, 178, 372–81, 450–9, 715 Jacomb, Sir Martin, 580 Committee of Twenty, 737–8 James, Henry, 657n DCE targets, 396–401, 462 Japan, devaluation 1967, 235ff, 374 support for sterling, 240, 377, 412 euromarkets, 186 other, 4, 11–2, 157, 738 exchange rate, 139 Jay, Douglas, 125, 127, 198, 290 floating rates, 379, 715 Jay, Peter, 125, 410, 454, 474, 662n, 751n, foreign exchange reserves, 379, 715 760 General Agreements to Borrow, 164, Jenkin, Patrick, 799 374 Jenkins Committee (on Company Law), Gilts, 381, 470, 474–5, 660 445 gold price, 160, 162 Jenkins, Hugh, 537 gold crisis, 393 Jenkins, Roy international monetary system, 181, Brutus, 415 187, 736 controls on bank lending, 431, 436, 438 memorandum of understanding, 399 DCE, 400–1 monetary base control, 659, 675, 689 disclosure of central bank assistance, monetary targets, 703, 762 393 oil facility, 719, 737 gilt-edged market, 474–5 Robot, 148, 150 SCNI, 358 secondments to, 49–51, 62, 167–8, sterling, 373, 376, 382 336–7 other, 329, 421 seminars, 397–400, 455, 458, 464–5, Jessel, D.C.G., 478 470–2 Joge, Sven, 408

874 Index

John Brown and Co., 403 King, Cecil Johnian Society, 702 claim that Leslie O’Brien was sacked, Johns, Douglas, 590n 518 Johnson, Burton, 537 claim to have been offered post of Johnson, H.G. (Harry), 111, 417, 459–60, Governor, 227 462–3 reserves and resignation, 233, 366, Johnson, Lyndon B. (US President), 193, 379–80 199, 214–5, 240, 242, 420 value of payment to non-executive Johnson Matthey failure, 583n, 638 directors, 56 Joint Standing Committee (JSC), 784–5 King, Wilfred, 120, 257 Jones, Aubrey, 291, 379, 441–2, 651 Kinross, John, 323 Jones, William, 88 Kings Arms Yard, 41 Jordan, Jerry, 464 Kirbyshire, John, 53n, 380, 670, 738 J.P. Morgan, 168 Knobl, Adalbert, 703 Knowles and Foster, 204 Kafka, Alexandre, 738 Kondratieff cycle,10 Kahn, Lord, Korean War, 3, 13 Report on sterling 1966, 219–20 Kuwait, 409, 733, 735 Report on sterling 1971, 220 Kynaston, David, 538n, 572, 771 costs of sterling crises, 228, 243, 245 Kaldor, Nicholas, 105, 218–9, 238, 396, 651 Labour Government Kearton, Sir Frank, 324 1945–50, 34 Kennedy, John F. (US President), 160, 1964–70, 198, 207, 225, 233, 248, 250, 162, 181, 276 324, 440, 443, 812 Kennington, Ivor, 560 1974–79, 712, 742, 770 Kent, Pen, 752 Laidler, David, 468 Keogh, James (Jim) Latin America, 3, 380, 415 blame for the secondary banking crisis, Law Courts Branch, 41, 590n, 816–7 579–80, 590, 605, 609–10, 830 Lawson, Nigel, 768, 770 Crown Agents, 528, 636 Layton, Derrick, 720 Fringe banks, 526, 578–9, 637 Lazards, 96, 806 Fringe Banks Standing Committee, Lee, Sir Frank 535–6 Bank Rate, 261, 272 London and County, 532–4 exchange control, 173 Slater Walker, 557 gilt-edged market, 266–7, 284 Wallace Brothers, 569 Gold Pool, 189 other, 305, 434, 540, 545, 606, 788 special deposits, 262, 264 Keswick, William, 45, 96–7 other, 47n, 130, 172, 276, 352–3 Keynes, John Maynard (Lord), 50, 79–80, Legh, Piers, 211–2 110, 119, 135, 143, 181, 453 Leigh-Pemberton, Robert (Robin), 567, Keynesian economics, 6, 19–21, 23, 44, 638 79–80, 134, 381, 454, 647, 696, 712 Lender of last resort, 1, 24, 30, 57, 65, 78, Keyser Ullman, 533–4, 548 82, 503, 585–8, 799 Kidder Peabody, 168 Lend Lease, 50, 143 Kindersley, Lord (Robert) (1st Baron Letter of Intent Kindersley), 45, 47, 96–7, 99, 166, 1965, 450 366 1967, 374–6, 397

Index 875

1969, 400 money market operations, 299, 685 1976, 645, 671, 756, 760 Treasury bill tender, 103, 278, 287–8, Leutweiler, Fritz, 408 502–3 Lever, Harold other, 474, 666 gilt-edged market, 691–2 see also, discount market, and money money, 397, 670, 679 market other, 410, 806 London Gazette, 67 Leyland Motors, 556 London School of Economics (LSE), 51, Liability management, 672–4 81, 87, 120, 130, 358, 369, 676, 807 Libya, 258, 413 London Stock Exchange, 63, 105, 239, Lifeboat, see secondary banking crisis 332, 492, 496–7, 510, 532, 535, 566, Liquidity ratio, 27–8, 81, 84–5, 89, 94–5, 666–7, 806 252, 254, 257, 278–82, 297, 301, 309, Lovell, Arnold, 396, 453 399, 437, 448, 485–6, 488–9, 507, Luce, John, 53n, 439, 448, 529 524, 585, 648 Luxembourg, 565, 625, 766 Lithiby, John, 50 Lyall, William, 540 Littler, Geoffrey,738 , 749, 754, 821 Lloyd, Charles, 96 M3- see money growth Lloyd, Selwyn, 172, 268, 270, 272–3, 284, Macdonald, Donald, 216 345 MacDougall, Donald, 149, 199, 437 Lloyds & BOLSA International, 330 MacGillivray, Greville, 337 Lloyds Bank MacLeod, Iain, 376 bank mergers, 327–8, 440 Macmillan Committee, 83, 85, 87, 111, Rolls-Royce, 787–8, 790 135–6, 318, 399 secondary banking crisis, 530, 535, Macmillan, Harold 539–40, 552 monetary policy, 81, 93, 172, 265, 284 other, 55, 88, 219, 266, 491, 740 Radcliffe, 83, 122 Lloyds Bank Review, 154 sacks the Chancellor, 270, 273 Lloyds Lugano, 548, 625 other, 84, 96, 167, 193 Local authority money markets, 301, 479, Machine Tool Trades Association, 258 481, 507, 781, 813 Mais Lecture, 685, 764 Local authorities/authority, 108, 203, 391, Mais, Lord, 685n 723 McDowall, Jack, 439 Loehnis, Anthony, 776–8, 825–6 Makins, Sir Roger, 86, 100, 108, 123, 157, Lombard Banking, 595 262 Lombard Street, 192n McKinsey & Co, 355–8 London, see City, the Mallett, David, 568, 612n London and County Securities, 523, Malta, 413 531–5, 545–6, 552, 581, 605 Malaysia, 409, 411–3, 733 London Business School, 652, 701, 706, Management consultants, see McKinsey 760 Management Development Division, 357 London Discount Market Association Management Services Department, 357 (LDMA) Manchester Guardian, The, 99, CCC, 492, 497, 499 see also The Guardian credit control, 295 Mandel, Hans, 216 devaluation, 477–8 Manila, 750 MLR, 515 Manser, William, 248–9

876 Index

Mansion House speeches Minimum Lending Rate (MLR) October 1958, 156 abandoned, 686 October 1959, 128 introduction, 509, 510 October 1967, 442 operation as formula, 515–17, 520, October 1968, 454–5 523, 531, 680 October 1969, 402 operation as administered rate, 680, October 1970, 467 688, 694, 697, 699, 701, 718 October 1973, 646, 802, 804 review of arrangements, 679–85 October 1975, 654 sterling, 718, 743, 744, 747, 751, 759, October 1976, 670 761 reproduced in the Bulletin, 132 other, 648, 660, 669–70, 672, 675, 832 other, 169, 402 Minimum Sterling Proportions (MSPs) Marshall Plan, 3, 143–5, 183 see sterling balances Martin, William Chesney, 161, 165, 168, Mishkin, Frederic, 25 193–4, 214, 240–2, 378, 419 Mitchell, Derek, 75–8, 188, 720, 727, 734, Martins Bank, 327–9 738, 748, 753 Matthews, Pat, 533–4 McMahon, Billy, 410 Maudling, Reginald, 181, 270, 273, 282, McMahon, Christopher (Kit) 592 Bank independence, 777–9 Masonic Lodge, 56 career, 130, 207, 405, 829 Meade, James, 146, 148, 150, 251, 416–7 CCC, 486, 490, 495, 501 Medens Trust, 535 devaluation, 237–8, 240 Meltzer, Allan, 78–9, 712 exchange control, 767–9 Mercantile Credit, 535, 580 exchange rate, 715–6, 718, 740, 744, Merger of Issue and Banking Department 747–8, 751–2, 754, 760–1, 764 suggested, 811 forward operations, 732 Mergers monetary targets, 458, 653 clearing banks, 327–31, 439–40, 485, monetary union, 766 545 money, 397, 399, 437, 450–1, 454–5, FCI/ICFC, 322, 324, 804 464, 468 other, 318, 324, 559, 590 ‘Operation of monetary policy since see also City Panel Radcliffe’, 460–3 Merriman, Hugh, 496 sterling contingency planning, 379, Mersey Docks and Harbour Board 413–6 (MDHB), 790–1 sterling agreements and balances, Messina conference, 150 407–8, 410, 735–6, 757–8 MIAS property group, 592 view on ceilings, 298 Middleton, Peter, 652, 696 other, 291, 335, 396, 425, 619, 701, 727, Midland Bank 738, 763, 825, 830–1 acquires stake in Montagu Trust, 330 Modigliani, Franco, 451 CCC, 491, 501 Monetarism, 466, 676, 696, 703 euromarkets, 183 see also international monetarism Knowles and Foster, 204 Monetarist, 22, 28, 464, 645, 652–3, 655, Rolls-Royce, 787–8, 790 657, 677, 702–3, 760, 779 secondary banking crisis, 535, 538–40, Monetary aggregates 549, 552, 567 broad money, 29, 78, 453, 523 other, 44, 266, 327, 698, 829 M1, 424, 467, 653, 677, 679, 687, Midland Bank Review, 86 695–6, 700, 703

Index 877

M3/£M3, 17, 28, 423, 452, 467, 483, Monetary targets, 508–9, 520–2, 647–9, 653–8, 667, adopted in 1976, 452, 644–5, 657, 671 670–4, 678–9, 700, 761, 832 discussion in 1975, 657 M5, 696 early use of phrase in Bank, 458 monetary base, 17, 21–2, 29, 78, 80, other, 684ff 449, 675–8, 688–9, 696, 698–9 Moneylenders Acts, 596, 602 narrow money, 458, 467 Money markets, Monetary base control, 675, 688–9, 698–9 Bank’s operations, 102, 286, 289, 304, Monetary Control, green paper, 832 305, 309, 674, 687, 703, 780 Monetary Control Review, 692, 696 Banking supervision, 609, 610 Monetary Policy CCC, 485, 486, 496, 502, 509, 510, 520 1950s, 66, 76, 77, 83, 84, 85, 90, 92, Crown Agents, 554, 555 106, 447 devaluation, 469, 477, 478 1960s, 460, 461, 463, 479, 588 Discount Office,38 1970s, 649, 653, 655, 658, 671, 685, discount houses, 482 695–9, 701, 702, 772, 773 FCI, 540 Banks, 485, 487 local authority, 479 Bank’s independence, 169, 508, 773, origins, 104 775–8 overnight lending, 299, 305, 477–9 Bank’s role, 58, 64, 79, 109, 110, 466 Radcliffe, 107 CCC, 427, 498, 500, 508, 511, 514–6, secondary banking crisis, 524ff, 545, 598–9, 685 548, 553, 569, 581, 784 controls, 255, 300, 661 other, 49, 165, 468, 660, 704, 826 debt management, 61, 80, 82, 112, 115, see also Certificates of Deposit, 137, 495 discount market, inter-bank, and exchange rate, 19, 22, 64, 156, 173, 251, local authority 402, 426, 447, 679, 704, 760 Money multiplier, 17, 27–9, 398, 644 external, 61, 684 Money Study Group, 463n, 468, 501, 674 exchange controls, 769, 771 Money supply (and money stock), euromarkets, 423–4, 426 Bank, 449, 450, 454, 459, 460, 463, 662 fiscal policy, 176, 653 CCC, 514 HMT, 35, 437–8, 458, 465, 467, 487, control of, 30, 80, 91, 93, 95, 106, 452, 646–7, 702 465, 474, 496, 521, 651, 652, 676, implementation, 26–7, 57, 165, 309, 679, 699, 769, 832 648 definition, 396, 398, 453, 467 indicators, 457, 655–6 DCE, 396, 401, 402, 452, 453, 457–60, monetary aggregates, 452, 458, 657, 687 467, 494 monetary analysis, 19, 21, 144, 426, determination, 451 447, 679, 704 effects of,400 , 453, 454, 455, 457 money supply, 467, 526, 645, 648, 679, eurocurrency, 423 689 exchange rate, 684 Radcliffe, 64, 83–4, 88–9, 101–4, fixed exchange rate, 22 115–27, 133, 136–7, 252, 588–9 gilts, 399, 496, 502, 513, 692 United States, 144, 484 growth of, 397, 401, 449, 453, 467, 493, see also controls 494, 516, 519, 580, 652, 657, 658, Monetary Policy Group (MPG), 646, 703, 705, 716 654–5, 666 HM Treasury, 95, 136 Monetary Review Committee, 646 IMF, 376, 428, 472

878 Index

Money supply (and money stock) (cont.) Mynors, Humphrey indicators, 650 1957 crisis, 91–2, 94 monetary analysis, 19–24, 30 Bank of England Annual Report, 133 monetary policy, 461 Bank of England finances,72 , 75, 353 process, 28, 30 Bank Rate, 172, 194, 258, 261, 276 Radcliffe, 118, 126, 136, 448 career, 32, 44–5 sterling, 670 City Panel, 331–2 target, 357, 466, 468, 645, 646, 653–6, FCI, 321–2, 326, 804 671, 679, 699, 701, 704 liquidity ratio, 281 United States, 423 Quarterly Bulletin, 131–2 other, 15, 21, 520 Radcliffe, 87, 100–1, 123–4, 129 See also domestic credit expansion and self-penned obituary, 33 monetary policy special deposits, 253–4, 263, 272 Monopoly and Mergers Commission, sterling as reserve currency, 181 328–9, 443 other, 48–9, 51–5, 96–8, 160, 167n, Montagu, Samuel, 330 193, 195, 266, 273, 425, 448 Montagu Trust, see Midland Bank Moorgate Mercantile, 535 NAIRU, 20, 26 Morgan, George, 366, 695, 761 Napoleonic Wars, 13–4 Morgan, Victor, 120, 449 National Bank, 125 Morgan Grenfell, 47, 88, 518 National Bank of Abu Dhabi, 567 Morgan Guaranty, 792 National Bank of Belgium, 236, 422 Morgan Stanley, 168 National Bank of Libya, 335n Morrison, Jack, 537 National Bank of New Zealand, 530 Morrison, Michael, 698 National Board for Prices and Incomes Morse, Jeremy (NBPI) 1968 Bonn meeting, 421 established, 290–1 banking system, 439, 441–2, 445 Report on bank dividends, charges, career, 207, 828–9 and services, 441–3, 446 Committee of Twenty, 738–40 National Coal Board, 535, 727 domestic monetary policy, 292–3, National Commercial Bank of Scotland, 296–8, 433 329 money, 465 National debt, 39, 74, 88, 105, 112, 137, sterling balances, 407–8, 411 359, 461, 473, 812 sterling contingency planning, 413, National Debt Commissioners, 58 416, 418 National Discount, 589 sterling policy, 240–2, 374, 379–80, National Economic Development 397, 714 Council (NEDC), 130, 191, 290 other, 324–5, 336, 353–4, 366, 405, 518 National Giro, 443 Moscow Narodny Bank, 183, 296 National Incomes Commission (NIC), 270 Mudd, Douglas, 424 National Institute of Economic and Social Mullens, William H. J. de W., 101 Research (NIESR) Mullens and Co., 106, 492–5 McMahon complaints in 1976, 754 see also Government Broker predictions of balance of payments Mundell, Robert, 142 deficits, 195, 428–9 Mundell-Fleming model, 20–2 sterling depreciation in 1977, 760 Museum, Bank of England, 39–40 other, 119, 130, 647

Index 879

Nationalisation and industry, 318, 320, 326, 774 Bank of England, 34–6, 43, 47, 69, other, 42–3, 45, 49, 52, 88, 141, 153, 75–6, 118, 773 168, 212, 226, 334–5, 338, 404, 410, banks, 806, 808 773, 784 see also, Bank of England Act 1946 steel Norman, Peter, 770 National Loan Act, 61 North Atlantic Treaty Organisation National Plan, 290 (NATO), 420–1 National Provincial, 91, 327–8, 545 Northern Commercial Trust, 553 National Union of Mineworkers, 88, 520 Northern Ireland National Water Council, 727 exchange control, 41 National Westminster Bank banks, 264, 505–6, 509n Edward Bates, 567 North of Scotland Hydro Electric Board, forward exchange operations, 730 727 merger of National Provincial and North Sea oil, 722, 761, 764, 769, 792–3, Westminster Banks, 328 795, 808 rumours of insolvency, 551–2 Norway, 418 SCOOP, 530 Note issue, 57–61, 65, 67, 73, 318, 340–3, secondary banking crisis, 535–5, 356, 449, 505 539–41, 545, 549, 565 see also Scottish note issue Neale, Alan, 738 Nuffield College, Oxford,51 , 119, 826 Neatby, Howard, 535 Nurkse, Ragnar, 142, 251 Nederlandsche Bank, 28 Neild, Robert, 199–200, 218 O’Brien, Professor D.P., 523 Nelson, Edward, 28 O’Brien, Leslie, (later Lord O’Brien of Neo-orthodoxy, 136 Lothbury) Netherlands, 189, 358n, 433 Bank note design, 341, 342 New Change, 41, 68, 332, 694, 770, 816, Bank of England finances,75 , 352–3, 825 812 New Zealand, 340, 378, 409, 735 Bank Rate, 63, 92, 171, 258, 260, 271, New classical economics, 19 283, 293, 431, 438 New orthodoxy, 80, 119, 136–7, 289, 448 banking supervision, 592–4, 610, 638 News Chronicle, 97 banking system, 327–30, 441, 445–7 New York stock market, 141 career, 52, 207, 227, 518 New York Times, 161 certificates of deposit,481 Newlyn, Walter, 398, 448, 502 City Panel, 231–2 Niemeyer, Otto, 36, 81, 253, 344 CCC, 490–2, 501, 504, 507, 514 Nigeria controls on bank lending, 269, 273, sterling crisis 1976, 737, 743, 746 299, 430, 432, 436, 439 other, 333, 337 decimalisation, 343–4 Nixon, Richard (US President), 417, 422, devaluation, 197, 204, 223, 237, 788 239–41, 377 Noakes, Jim, 746 euromarkets, 185, 425 Non-executive Directors, see part-time economic intelligence, 54 Directors formal directive under 1946 Act, 432 Norman, Montagu G10 Bonn meeting, 1968, 421 impact on the bank, 32, 44, 125, 359, gilt-edged operations, 107, 113–4, 267, 447, 832 285, 302, 473–6, 494, 496

880 Index

O’Brien, Leslie (cont.) Operation Twist, 112n, 304n gold price, 394 Operational research, 55 incomes policy, 291 Oppenheimer, Peter, 502 industrial finance,319 , 321–4, 804 Organisation for Economic Co-operation liquidity ratio, 280–1 and Development (OECD), 130, London as an international financial 165, 248, 381, 647, 760, 769, 775, centre, 780, 782 778 McKinsey, 354–7 OECD countries, 3, 6, 9, 17, 19, 483–4, money market operations, 277–8, 678, 741 288–9, 299, 477–8 Organisation for European Economic nature of the Bank, 52 Co-operation (OEEC), 138, 150, 163 Parsons, 153, 403–4 Organisation of Petroleum Exporting Radcliffe, 100–1, 111 Countries (OPEC), see oil Reference Library, 816 Ossola, Rinaldo, 420n Rolls-Royce, 786–90 Ossola group, 419–20 SCNI, 358, 360 Ottawa Conference 1932, 142 special deposits, 253, 255, 263, 268–9, Overnight lending, see money market 275, 280, 511 Overseas and Foreign Office, 39 Sports Club, 56, 351 Overseas Bankers Club, 780 sterling Overseas banks, 59, 295, 439, 446, 481, 1972 float, 711 578, 595, 598, 614 exchange rate, 716 Overseas Department support operations, 215–6, 236, 382, becomes part of CBID, 128 383 created in 1957, 39 bear squeeze, 217 re-established in 1964, 361 sterling balances, 222, 410, 733 secondments, 336 training schemes, 54 other, 52, 163, 211, 337, 363, 484, 761 other, 32, 53, 81, 84, 130, 172, 244, 291, 326, 369, 397, 460–2, 529, 580, 636, Padmore, Sir Thomas,94 739, 830 Page, John Observer, The, 223, 462–3, 805–6 banking supervision, 599, 607, 609 Off-shore banking career, 53, 62 Irish leak, 434–5 CCC, 486–9, 504–6, 514, 516 Oil gilt-edged market, 494–5, 497–9, 662, facility, 719, 741 666, 668–9, 694 price rises, 6, 520, 531, 644, 707, 719, monetary policy, 308, 657n, 660, 670–2 737, 739, 741, 756–7, 772 MLR, 508–11, 515, 679–80, 683 producers’ cartel (OPEC), 6, 520, 756 reduction in role, 823–6, 828, 830 Official Sterling Area (OSA), see sterling SSDs, 521, 649, 673, 678 area other, 530, 564, 570, 636, 726, 777, 779, Old Lady (of Threadneedle Street), 117, 788, 808–9, 811 358, 637, 777, 833 Paish, Frank, 118, 120, 130 Old Lady, The, 365, 580 Pakenham, Lord, 125–6 Old orthodoxy, 136, 258 Pakistan, 195 Open market operations, 19, 23, 27, 30, Paraguay, 377 57, 78, 80, 83, 104, 136, 252, 398, Parker Tribunal, see Bank Rate leak 427, 461, 468, 502, 509, 522, 646, Parkin, Michael, 468, 502 672, 689 Parlours, 40, 45, 298, 537, 540

Index 881

Parsons, Maurice Ponto, Jurgen, 762 BOLSA, 330, 403 Poole, William, 677, 704 career, 32, 49–50, 56, 207, 226–7, Portal, Lord, 343 403–4 Portals, 342–3 devaluation, 196, 219, 247–8 Portsmore, Frederick, 152 exchange control, 173, 211 Portugal, 11, 147n floating rate, 152–3 Posner, Michael, 238, 242, 396, 437, 454, gold, 159n, 161–2, 188, 190n 457, 468, 754n sterling, 157, 164, 177, 197, 408, 415 Post Office,58 , 344, 355, 443 other, 101, 130, 184, 204, 254, 273, 338, Powell, Enoch, 120 369, 405, 423n, 429, 446 Powell, Frederick, 50 Part, Sir Antony, 782 Premises, Bank Part-time Directors Bank Buildings, 41 background and duties, 47–8, 56 Finsbury Circus, 40 Bank Rate, 96–8, 123, 127 Governor’s flat,41 Radcliffe, 110, 114–5 New Change, 40–1, 68, 332, 816 SCNI, 359, 369–70 19 Old Jewry, 41 Wilson Committee, 370 Old Street, 40 ‘Pay pause’, 172, 270 Regent Arcade House, 40 Payton, Stanley, 335n, 337, 735, 761 Threadneedle Street (Head Office), 38, Peacock Committee, 36, 50 40, 42, 63, 340, 816 Peacock, Edward, 43, see also Peacock Tokenhouse Yard/Kings Arms Yard, 41 Committee Press Peake, Sir Harold, 431 and the Bank, 50, 669, 774–5, 777–8 Peat Marwick Mitchell, 560 Bank Rate leak, 96, 98 Peddie, Peter, 798 City issues, 204, 330, 332–3, 805 Pember and Boyle, 694 conduct of monetary policy, 114, 453, Pepper, Gordon, 458, 463, 502, 676, 689, 473–4, 493, 501, 686, 695 698–9 reactions to the Radcliffe report, Peppiatt, Hugh, 606 117–9, 121–2, 127 Peppiatt, Kenneth, 48–50, 56, 254, 477 perks for Bank staff, 365–6 Peston, Maurice, 468 secondary banking crisis, 544–5, 551, Pethwick-Lawrence, Lord, 125, 127, 266 580, 605 Phillips, A.W. (Bill), 22–3, sterling, 156, 200, 223, 421, 713, 732, see also Phillips curve 760 Phillips, C.A., 27 other, 358, 442 Phillips curve, 22–3, 373, 466, 651 Press Officer,50 , 366, 695, 761, 777 Picquet (Military guard), 63–4 Pressnell, Leslie, 122, 150, 358 Piercy, Lord, 43, 323 Preston, George, 160, 185, 215, 383, 408 Pilkington Brothers, 47, 366 Prevention of Fraud (Investments) Act Pitblado, David, 178 1958, 591, 597 Pliatzky, Leo, 199 Price controls, 16, 651, 712 Plowden, Lord, 807 Price, Lionel, 401, 468, 677n, 703, 741 Pöhl, Karl Otto, 748n, 766 Price Waterhouse, 560, 566, 568, 570 Polak, Jacques, 164, 181, 396, 398, 402, Prideaux, John, 549, 552 456, 459 Principal of the Discount Office,62 –3, Policy Committee, 356, 390, 714 524, 590–1, 609 Polwarth, Lord, 505 see also Clarke, and Keogh

882 Index

Printing Works, 37, 39–42, 68, 131–2, Bank of England Annual Report 62 340–1, 356, 361, 816 Bank of England response, 128–34 Profitability, see clearing banks, Bank Bank Rate, 90, 122, 123, 171, 194, 199, finances 201, 252, 260, 431, 509 Property Bank/Treasury relations, 61, 108–10, boom, 524, 526–7, 531, 580 113, 122 controls on lending, 269, 292, 519, 660 banking supervision 588, 592 secondary banking crisis, 528, 534–5, Cameron Cobbold’s private letter to 547–8, 552–5, 557, 564, 566, 569–71, Radcliffe, 88–90 585 constitution and functions of the Bank, Protection of Depositors Act 1963, 506, 48, 57, 350, 360, 369, 370 536, 594–7, 607–8, 617, 619 credit counterparts, 28 Prudential Assurance, 551, 553 debt management, 107, 112, 113, 252, Prudential returns, see banking 265, 267, 303, 471, 472 supervision economists’ reaction, 117, 118, 119, Psychological warfare, 194, 243, 309 448 Public-choice analysis, 26 eurodollar market, 409 Public sector borrowing, 251, 284, 727, evidence, 77, 100–2, 111 755 foreign exchange market, 784 Public Sector Borrowing Requirement forward intervention, 206 (PSBR), 28–9, 200, 400, 653, 655, giro bank, 443 657–8, 662, 679, 687, 689, 692, liquidity/ratio, 257, 278, 398, 399, 448 696–7, 700, 705, 748, 752–3, 755, monetary policy, 124, 135–7, 291, 297, 797–8 309, 398, 464, 466, 479 openness, 115–6 Qatar and Dubai Currency Board, 335n Parker inquiry, 97–9 Quantity theory, 19–20, 27, 135, 450 political reaction, 124–7, 265 Quarterly Bulletin, Bank of England press reaction, 116–8, 127–8 Cameron Cobbold’s view, 90 report and recommendations, 112–16 HM Treasury, 132–3 special deposits, 253–6 introduction, 116, 131–2 statistics, 55, 447 ‘The importance of money’, 452 ten years after, 459–63, 479 unpublished article on central bank Treasury bill tender, 277, 278, 286 assistance, 392–3 witnesses, 417 unpublished article on money supply, other, 49, 76, 91, 93, 94, 167, 260, 358, 451, 454, 464–5 431, 440, 442, 501, 773, 775, 779, Other, 58, 208, 305, 308, 358, 394, 401, 806, 809 425, 452, 456–8, 461–2, 464, 467, see also Bank Rate leak, part-time 525, 598, 624–5, 627, 647, 649, 671, directors, statistics, monetary policy 689, 693, 695, 698, 708, 763, 809 Radcliffean view, 135, 194, 375 Quinn, Brian, 695, 763, 776, 828 Ralli Brothers, 557 Rasminsky, Louis, 216 Radcliffe Committee Raw, Charles, 528 announcement, 57 Raw, Rupert, 196, 408, 410, 412, 528 assessment, 134–7 Rawlinson, Anthony, 738 background and appointment, 64, 77, Reaction functions, 26–7 83 Reading, Brian, 130

Index 883

Reconstruction Finance Corporation, monetary policy, 646, 654–8, 660, 233–4 670–1, 676, 684–6, 688, 691, 696, Rees-Mogg, William, 151–2, 410, 416, 699 545, 652 role/organisation of Bank, 776, 823–31 Regulation, see banking supervision secondary banking crisis, 536, 538–9, Regulation Q, 183, 185, 481 543, 572, 577, 579, 581, 583–5 Reichsbank, 214 Slater Walker, 559, 563 Reid, Margaret, 544–5, 581, 589, 638n, Wallace Brothers, 569, 571 731n Wilson Committee, 807–8 Re-intermediation, 515, 523, 701 other, 331, 338, 370, 521, 693, 730, 740, Reorganisation, Bank 777, 809–10, 821 Republic of Ireland, 409 Rickatson-Hatt, Bernard, 50 Reserve assets, 31, 489, 500, 503–4, 506, Rickett, Sir Dennis, 152, 157, 173, 515, 552, 565, 644, 672 188–90, 240, 291, 326, 441 Reserve ratio, 29–30, 309, 485, 488–9, Ritchie, Alec, 540 500–1, 506–7, 674–7 Robarts, David, 91, 254–5, 263, 281, 429, Reserves, banking 433 Bank of England, 67–8, 70, 72, 347, Robens, Lord, 357, 807 353–4, 359, 795, 811–2, 817, 819–21 Robertson, Dennis, 51, 119, 137, 251 cash, 30, 136, 398, 449 Robbins, Lord, 87, 94–5, 117, 119, 126–7, clearing bank, 65, 79, 104, 106, 136 148n, 153–4, 254, 462 hidden reserves/disclosure, 441–2, ‘Robot’ Plan, 147–9, 152n, 416 444–5, 591 Roll, Eric, 193, 226, 366 Reserves, see foreign exchange reserves Rolls-Royce, 488, 774, 784–90, 801–2 Reserve-asset ratio, 500, 503–4, 506–7, Roman law, 601 511, 598–9, 644, 672, 674, 695–6, Room 1 and Room 2, 38 699–700, 832 Roosa bonds, 222, 383 Reserve Bank of New Zealand, Roosa, Robert, 177, 188, 193 134n, 334 Rootham, Jasper, 50, 53–4, 182, 184, 213, Revelstoke Committee, 47n 405 Revell, Jack, 623 Rothschilds, 446n, 560 Reynolds News, 98, 117, 127 Round tripping, 520 Rhodesia, Southern, 5, 210, 770 Rowan, Sir Leslie, 147, 154 Rhodesia and Nyasaland, Bank of, 337 Royal Bank, 329 Richardson, Gordon (later, Lord Royal Bank of Canada, 792 Richardson of Duntisbourne) Royal Bank of Scotland, 329, 539–40 1976 sterling crisis, 745, 749, 755 Royal Insurance, 168 banking supervision, 604–8, 615, 618, Royal Mint, 344–6 622, 628, 630–4 Rueff, Jaques,406 Burmah Oil, 792, 799–800 Rumins, John, 358, 581, 809, 821 career, 366, 518–9, 829–30 Runciman, Robert, 540 Crown Agents, 554, 555, 636 Ryrie, William (Bill), 225, 394, 414, 676, directional guidance, 520 741, 752, 757 exchange control, 768 foreign currency borrowing, 726, 762, St Lukes, see Printing Works 763 Sachs, Jeffrey,142 industrial finance,774 , 791, 802–5 Sadd, Sir Clarence, 43

884 Index

Sanderson, Basil, 45, 47–8, 369 Control Committee (Lifeboat), 538–41, Sangster, John, 709, 731–2, 739, 743, 759, 564, 578, 581 761, 826 cost of operations, 580–3 Samuelson, Paul, 23 Lifeboat, 538–9 Sarabex Ltd, 785 reasons for Bank’s involvement, 581–2 Sargent, J.R. (Dick), 150, 698 relations with HM Treasury, 552, 557, Saudi Arabia 584 Saudi Arabian Monetary Agency The City,533 –5, 545, 548, 555, 558, (SAMA), 723–7 562, 581, 586 sterling balances, 737 other, 523 Savery test, 613n see also banking supervision, Crown Saving, Thomas, 704 Agents, Edward Bates, fringe Sayers, Richard banks, SCOOP, Select Committee attempt by Bank to appoint him, 51 on Nationalised Industries, Slater Radcliffe Committee,87 , 100, 105, 108, Walker, Wallace Brothers 119–20, 122 Secondments (to/from Bank of England) views on role of central banks, 25, 57, academics, 129–30, 447, 449, 485, 826 134, 226 overseas, 49, 62, 335–6, 338, 723 other, 36–7, 45, 53, 62, 130, 135–6, other, 612, 776, 830 141n, 339, 449, 464–5 Secrecy Schedule 8 (Companies Act 1948), 445, Bank of England, 26, 65, 67, 72, 76, 98, 591, 594–6, 598, 620 160, 260, 359, 489, 590, 811 Scheduled Territories, 59, 210, 711 bankers’ balances, 65 Schiller, Karl, 420–2 contingency planning (sterling), 217, Schmidt, Helmut, 753, 765–6 411, 413 Scholey, David, 797–8 foreign currency borrowing, 726 Schroders, 366, 518–9, 580, 776, gold, 189, 225n 803, 825 reserves, 141, 224 Schwartz, Anna, 23, 447 Robot, 148 Schwegler, Walter, 216 Radcliffe, 90, 116 Schweitzer, Pierre-Paul, 240–2, 374–5, sterling balances, 410 459 Secretary’s Department, 37, 39, 361 Scottish clearing banks Section 123 banks, 526, 532, 572, 578, CCC, 492, 504–5 596–9, 602, 607, 612 control on advances, 301 Section 127 banks, 572, 597–8 ICFC, 322, 804 Securities Management Trust (SMT), special deposits, 256–7, 263–4, 273, 323–4 293, 299, 438–9, 511 Select Committee on Nationalised Scottish Co-Operative Wholesale Society Industries (SCNI) (SCOOP), 529–31, 581, 785 1970, 358–60 Scottish note issue, 504–5 1976, 809–10 Letters of Malachi Malagrowther, 505n 1978, 810–11 Scrimgeours, 798 banking supervision, 354, 622–3 SEANZA, 340 Bank’s finances and accounts,67 , 354, Seccombe, Marshall & Campion, 103 447, 810–13, 819–21 Secondary banking crisis, 524ff. fringe benefits,365 –6 blame, 578–81 monetary policy after Radcliffe,462

Index 885

non-Executive directors, 369–70 called secondary banking crisis, 525, 575, First, 263–5 581, 583 1960, 264 other, 318, 706, 775–6, 831 1961, 172, 176 see also Treasury and Civil Service 1965, 209, 293, 294 Committee 1966, 299 Selective employment tax (SET), 292, 298 1970, 438, 467 Selwyn, James, 54, 355 1972, 511 Shawcross, Lord, 332–3 1973, 511, 516, 517, 520, 522, 718 Shell (oil), 234, 355, 719, 792–4 1976, 660 Sheppard, David, 675, 688–9 CCC, 485, 488, 490, 496, 499, 500, Shipbuilding Inquiry Committee 502–9 (Geddes), 325–6 debate about use, 170, 268, 269, 272, Shukri, Sabih, 567 273, 437, 438, 646 Siepmann, Harry, 37, 48–9, 163, 212 design, 253–7 Singapore, 336, 409, 412–3, 558, 579n, 733 effectiveness,274 –5, 292, 297, 309, Skinner, Clarence, 410 449, 700 Skinner, Dennis, 525n fringe banks, 552 Slater, Jim, 556–60 interest payable on, 257 Slater Walker Limited (SWL), 525, 557–64 interest payable halved, 433 Slater Walker Securities Limited (SWSL), liquidity ratio, 279–81 556–64 Radcliffe, 111, 121, 253, 255, 256 Smallwood, John, 336 released Smith, William, 540 1962, 272–4, 282 Smith, Michael Babington, 45, 47 1977, 660 Smith, Sir Reginald Verdon, 88 ‘release and recall’, 672 Smithsonian Agreement reverse special deposits, 675 effective rate, 709, 720, 736, 740, 747, wider application/change in use, 301, 763 302, 307, 308, 309 other, 388, 422, 710, 733 other, 132, 252, 265, 529, 832 Snake, The, 711–2, 714, 733, 750, 765–6 see also SSDs Solomon, Robert, 243, 394, 419, 738–9 Special Drawing Rights (SDRs), 181, 374, Solow, Robert, 23 384, 408, 420, 719, 738–9, 741, 755 Somerset, David, 53, 337, 568, 678, 795, Spectator, The, 117 800, 826 Sports Club (Roehampton), 42, 56, 351 South Africa Stagflation,6 , 10, 484 gold, 159–60, 187, 394 Staff, Bank of England other, 340, 344n, 345, 412 costs, 68, 73, 769, 815 South African Reserve Bank (SARB), numbers, 40, 59, 68, 129, 212, 340, 351, 158–60, 334 356, 361, 363, 611, 815 South East Asia, 448, 569 overstaffing, 32, 131, 363, 411 Southard, Frank, 162, 177 pay and benefits,55 –6, 365–6 Southern Rhodesia, 5, 210, 770 pensions, 68–9, 72, 365, 811, 815, 817 Soviet Union, 3, 5, 187, 340, 394 recruitment, 53, 363, 365 Special buyer, 102–3 supplementary staff,54n Special Deposits training, 53–4 and Bank Rate, 262, 271, 293 see also secondments

886 Index

Stamp, Max, 50 security sterling, 179, 210n Stamp Memorial Lecture transferable sterling, 150, 157 Cameron Cobbold, 773 US co-operation (Deming group), 420 William Armstrong, 381, 462 other, 35, 101, 160, 180, 191, 256, 272, Standard Bank, 49, 571–2 276, 284, 290, 418, 441, 755, 771 Standard Chartered Bank, 570–1, 746 See also contingency plans, Standby arrangements convertibility, forward intervention, 1961 IMF, 177–8, 180 sterling balances, sterling crises 1964 IMF, 198, 201, 204 Sterling Agreements 1967 IMF, 241–3, 372, 374–5, 377–8, Basle arrangements, 164, 175, 248, 407 382–3 Basle facility, 411–2, 733–4 1969 IMF, 400–1 Sterling Area 1975 IMF, 740–1 overseas sterling area (OSA), 405–8, 1976 IMF, 749, 751, 755–7 733–7 Other, 195, 197, 227, 240, 248, 450, non sterling area (NSA), 222 716–7, 719 Sterling Area Working Party, 380, 405, Standing Committees, Bank of England, 407, 714 36–7, 47 Sterling Balances Stanton, A.H., 478 burden, 88, 139, 145–8, 155, 175, Statistics 181–2, 191, 374, 426, 707, 772 Cromer’s view, 440 Australia, 409–10, 413, 733, 735–6 monetary, 398–9, 423, 646, 702 Bahrain, 733 needs for improved provision, 54–5 guarantees, 407–9, 411–3, 417, 713, Radcliffe, 77, 90, 98, 100, 110–13, 733–7, 745, 757 115–6, 121, 128, 130, 132 Hong Kong, 409, 735 Statistical banks, 526, 598–9, 613 India, 147, 154 Steel industry Ireland, Republic of, 409, 711, 735 denationalisation, 61 Kuwait, 409, 733, 735 FCI, 320–2 Libya, 413 foreign currency borrowing, 726 Malta, 413 renationalisation, 321–2, 441 minimum sterling proportions (MSPs), Stein, Herbert, 417 409, 413, 734–6 Stenham, Cob, 537 Malaysia, 409, 411–3, 733 Sterling New Zealand, 409, 735 after Second World War,143 official,720 , 734, 737, 756–8 Burmah Oil, 795 private, 732, 756, 758–9 bear squeeze, 215, 217, 220 renegotiation 1970s, 732–7, 752 decimalisation, 344–5 Robot, float of 1972, 509, 513, 711–2, 733 Singapore, 409, 412–3, 733 forward sterling, 245, 731 Third Group Arrangements,713 , guaranteed sterling, 215, 222, 240–2, 756–9 409, 734 Yemen, 411 international currency, 147, 152, 155, other, 207, 215, 221–3, 383 249, 273, 783 see also sterling agreements, sterling reserve currency, 155, 175, 181–2, 196, area 249, 389, 406–7, 417, 426, 757 Sterling bloc, 146 role in international monetary system, Sterling crises 222 1957, 91, 92–5, 153–4, 170, 183

Index 887

1961, 139, 165–6, 169–72, 175–80, 268 Swiss franc, 204, 758 1964, 194–206, 271–2, 277, 292 Swiss Guyerzeller Zurmont Bank, 330 1965–66, 207–17, 220–1, 223–4, 298–9 Swiss National Bank (SNB), 165, 241 other, 249–50, 404, 414, 732 Swiss watches, 415 see also devaluation, crisis 1976 Switzerland, 6, 60n, 161, 165, 171, sterling, 185, 189, 216, 233, 239–40, Stern Group, 547, 554 625, 676, 710 Stevens, Sir John, 49–50, 56, 161, 185, Sykes Memorial Lecture, 638 207, 226, 236, 518 Syndicated tender, 103, 277–8, 287–9, Stevenson Committee, see Crown Agents 498–9, 502 Stevenson, Sir Matthew, 528 Stewart, Michael, 207 Tarzan, 825n Stewart, Walter, 37 Taylor, Peter, 358, 809–10, 819 Stock and Bond services, 67, 74, 347, 351 Tew, Brian, 245, 396, 420, 443, 448 Stockholm Agreement, 384 Thatcher, Margaret, 698, 829 Stock market, 1970s peak and collapse, Thackstone, Harold, 330 526, 532, 551 Thomson, John, 281, 292, 328 Stolper-Samuelson, 741n Thompson-McCausland, Lucius,50 , 152, Stone, Jonathan, 799 182, 184, 396n Stone, Reynolds, 342 Thorneycroft, Peter Stop-go, 191, 208, 290 1957 crisis, 91–5, 269 Stopper, Edwin, 241 Radcliffe, 86–7, 90, 109–10, 120 Strikes, special deposits, 253–5 docks, 238, 240, 711 sterling, 154 miners, 719 unable to sack the Governor, 94 newspaper, 474 Thornton, Henry, 24, 78 seamen, 750 Thornton, Michael, other, 14 career, 129 SUERF, 450 money, 375–6, 397–9, 454, 457, Suez, 145, 153, 237, 249 459–61, 464, 647 Sun, The, 501, 686 other, 100, 129n, 807 Sunday Telegraph, The, 543, 805 Thornton, Ronald, 366 Sunday Times, The, 360, 528, 572, 686, Thorpe, Jeremy,532 , 534 751 Times, The, 64, 96–7, 120–1, 168, 199, Sunderland, David, 554–5, 636n 217, 357, 384, 404, 410, 415, 454, Supervision, see banking supervision 463, 474, 501, 534, 537, 544, 652, Supplementary Special Deposits (SSDs) 662, 678 abandonment, 769, 832 Third Group Arrangements, see sterling ‘corset’, 521, 659, 687–8, 700–1, 769 balances introduction, 521–3 Threadneedle Street, 337–8, 358, 460, operation, 648–9, 659, 672–4, 677, 782, 825 687–8, 700, 703 Three-day week, 549 Support operations/packages (sterling), Time inconsistency, 26 see standbys, Basle Agreements Toniolo, Gianni, 189, 225n Suzuki, Hideo, 738 Townend, John, 468 Swaps (foreign exchange), 164–6, 175, Trade Protectionism, 2, 13 203, 227, 233, 236, 320, 382–3, Trades Union Congress (TUC), 88, 109, 721–2, 732, 760, 773 651, 755

888 Index

Treasury, Her Majesty’s (HMT) NBPI, 441–3 1956 working party, 84–5 Radcliffe, 83, 86, 88, 91, 101, 108–10, Bank Rate, 93, 170, 200, 260–2, 271–2, 114–6, 120–4, 127–8, 132, 135, 276, 294 459–62 Bank finances,61 , 69, 72–5, 351–3, relationship with Bank, 34–5, 57–62, 774, 813–4, 817, 819–22, 830 75–6, 81–2, 94–5, 98, 108–10, banking supervision, 589, 591–5, 598, 114–6, 120–4, 127–8, 133, 157, 369, 600, 602, 607, 617, 619–24, 629–32, 427, 482, 773–5, 778–80, 822 636–7 reserve asset ratio, 674 Burmah Oil, 791, 793–4, 801 reserves/reserve currency, 155, 181, CCC, 486–7, 489–96, 498–9, 503–4, 234–5, 383, 391, 413, 722–3 506, 508–9 Robot, 147 cash deposits, 308 secondary banking crisis, 552, 554, ceilings, 300, 428, 432, 435–67 556, 560, 562, 583–4 City of London, The, 779, 782 special deposits, 253–5, 262, 273–4, clearing banks, 328 293, 297, 301, 512, 673 crisis measures, 170–2, 176, 202 SCNI, 358–60, 812 Crown Agents, 529, 555, 830 sterling balances, 407, 409–11, 733–6 decimalisation, 344–5 Treasury bill tender, 103, 286–7 devaluation, 196–7, 199, 217–8, 237–8 other, 48, 129–30, 176–7, 270, 290, EEA, 59–61, 141–2, 707, 731 324–5, 381, 392–3, 445–6, 647–8, euromarkets, 423n 701, 706, 721, 754n, 756, 791 exchange control, 173, 210–3, 419, Treasury bills 767–9 63-day, 289–90 exchange rate, 150–2, 154–6, 414–7, charge for Bank’s management, 73–4 707, 709, 713, 716–8, 740–6, 748, CCC, 504, 507, 510, 516–7 750, 760–1, 764 devaluation, 477 forward intervention, 206, 244–5, 732 EEA, 141–2 gilt-edged market, 114, 283, 285–6, holdings of discount market, 482 470, 472–3, 475–6, 513, 662, 670, operations, 21, 30, 80–2, 85, 102, 105, 691–3, 695n 111, 136, 254, 286, 295, 304–5, 398, gold pool, 188, 190, 225 477–9 hire-purchase, 268, 273 tender, 37, 102–4, 277–8, 286–9, IMF, 381, 396–7, 453, 455, 458–9, 753 502–3, 510, 675, 680, 683, 744 joint seminars, 291 Treasury bill rate, 66, 94, 135–6, 275–7, Khan Report, 219–20 288, 299, 307, 476, 479, 481, 485–6, liquidity ratio, 81, 84, 281–2 498, 510–11, 517–8, 680, 697 minimum lending rate, 510, 516, 675, other, 210n, 257, 448, 476, 585 679, 683 See also discount market, minimum money market, 516 lending rate monetary policy, 30, 136, 252, 437, Treasury and Civil Service Select 465–6, 646 Committee, 831 monetary targets, 645, 654–5, 671, 679, Treasury Certificates (United States),234 705, 831–2 Treasury Deposit Receipts (TDRs), 94, money supply/DCE, 399–400, 450, 253–4 453–9, 463, 467, 651–2, 671, 696, Treasury Office,38 698–9 Treaty of Rome, 5, 12

Index 889

Tribune, 97, 117 757–8, 761, 767, 771, 778, 780, 783, Triffin, Robert,187 , 406 786, 789, 797 Triffin Plan,163n also see dollar, Federal Reserve, Trinity College, Cambridge, 47, 51, Regulation Q 130 United States Treasury, 143, 157–8, Tri-partite Agreement, 142 160–3, 177, 190n, 214–5, 234, 240, Triumph Investment Trust, 535, 544, 551, 383, 412, 737, 757, 760 553 Urwick, Orr and Partners, 355 Tuesday Club, 242 Tuke, Anthony, 549 Valentine, Michael, 798 Tüngeler, Johannes, 421 Van Lennep, Jonkheer Emile, 408 Twentieth Century Banking, 535 Vaughan, Evan, 540 Vavasseur, J.H., 544 Unemployment, 2, 13–4, 20, 23, 26, 142, Vietnam War, 5 174, 258, 276, 373, 483, 529, 651–2, Volcker, Paul, 412, 418, 737, 739, 757 705, 751, 753 United Dominions Trust (UDT), 547–8, Walker, David 552–3, 572 exchange rate policy, 740–1, 764 UDT vs Kirkwood, 596 Kahn Report, 220 United Drapery, 533–4 monetary base control, 688–9, 698 United States, (also US and America) other, 753, 776, 826 Burmah Oil, 792–4, 796 Walker, Peter, 557 Commission on Money and Credit, 86 Wallace Brothers, 556, 568–72, 615 dollar securities, 175, 195, 233–5 Walters, Sir Alan, 129, 464, 645 domestic economy, 15, 372, 424, 484, Warburgs, 797–8 705, 712, 765 War Loan stock, 105 economic/monetary theory, War Loan conversion, 105–6 development, 23, 26, 80, 447, 450, Washington, 80, 130, 143–4, 154, 160–1, 461, 464, 468, 645, 677 164, 167–8, 177, 193, 201, 207, EMU, 766 226–7, 240–1, 337, 382–3, 395, 417, Euromarkets, 183–6, 188–9, 424–6 422, 458, 676, 710, 730, 738, 754, gold, 138, 157–8, 160–2, 187–90, 393n, 789 394–5 Washington initiative, 213–7 international monetary system, 140, Wass, Sir Douglas 142–5, 150, 420–2, 737–8 1976 crisis, 745–7, 753, 755, 762, 768 interest rates, 112n, 193–4, 276, 304n secondary banking crisis, 562–3, 584 and sterling, 139, 151, 166, 196–7, 199, view on monetary targets, 679, 702 201, 203, 207, 213–5, 217, 223–5, other, 602, 606, 620, 683, 782 236, 239–42, 249, 379, 383, 407, Watling Street, battle/siege of, see 411–2, 414–5, 715, 749, 751, 761–2, gilt-edged market 767 Wedd Durlacher, 496 US devaluation, 389, 394, 413 Weissmuller, Alberto, 825–6 other, 3–5, 12, 16, 23, 28, 31, 51, 62, Welfare Insurance, 565 129, 141, 162, 168, 226, 240, 328, Werner Report, 711 331, 341n, 355, 358n, 380, 415, West Germany 417–8, 434, 481–2, 493, 496–7, 544, economy, 2, 4, 6, 11, 144 563, 675, 692, 710, 717, 730, 738, Deutsche mark (DM), 420–2

890 Index

West Germany (cont.) Rowley Cromer, 201–3, 221, 225–6 Deutsche mark (DM) revaluation, 164, sterling crisis, 198–201, 205, 215, 242 169, 414, 418, 420–2, 717, 753, 758, other, 109, 291, 370, 415, 523, 745, 830 762 See also Wilson Committee gold, 157, 189 Wilson Committee, 370–1, 452, 525, 578, sterling, 208, 216–7, 241, 413, 748n 583, 696, 806–9 other, 141, 185, 195, 240, 320, 340, 342, Wincott, Harold, 120 403, 548, 625, 692, 730, 756, 765–7 Window dressing, 165–6, 383, 503, 546 Westminster Bank, 55, 328, 545 Winton, John, 328 White, Harry Dexter, 143 Witteveen, Johannes, 719, 754, 759 White, William, 483 Wood, Gilbert Whitmore, Francis, 583 coining the term ‘the Corset’, 659n Whittome, Alan other, 53n, 467, 673 disclosure, 445 Wood, Geoffrey,424 , 699, 767n gilt-edged market operations, 285–6 Woods, Sir John, 88 at IMF, 660, 748, 752–5 Woodroofe, Sir Ernest, 537 other, 53n Woolgar, Eric, 219 Whyte, G.T., 553 Working Party 3 (WP3), 165, 242, 248, Wild, Sidney, 534, 535–6, 540 381 Wiles, Chris, 460 World Bank, 43, 143, 163n, 168, 240 Williams and Glyn’s Bank, 329, 535, Worswick, G.D.N. (David), 88, 651 539–40, 762 Williams Deacon’s Bank, 329 Yield curve, see interest rates, structure William Stern, see Stern Group Yen, 413, 717, 758 Wilson, Harold Yeo, Edwin, 757 appointment of O’Brien, 226–7 Bank Rate leak, 96 ‘Z’ accounts, 107n currency speculators, 219 Zambia, 378 monetary policy, 256, 294, 299 Zawadzki, Krzysztof, 398 Radcliffe, 88, 90 Zijlstra, Jelle, 240, 749, 766