History of Money and Banking in England

Polish astronomer, Copernicus, first enunciated the theory upon which our modern money system is based. His thesis was condemned as heretical and placed upon the Roman Index. His theories, however, were resurrected two centuries later by the English empiricist, John Locke, Philosopher of the Bank of England

The first money was leather disks, branded with the mark of the owner of the cattle the disks represented. Indeed such leather disks were still in use on the droving roads of North Wales in the l9th Century. Until the industrial revolution, the ownership of beasts of various kinds was the chief form of wealth. The cattle owner needed to trade both for necessities like iron and luxuries like gold, but it was not always convenient for his trading partners to take the cattle there and then, so they took instead a leather disk which represented one head of cattle. The Latin word for cattle is “pecus” and our modem word 'pecuniary', meaning 'money matters', derives from it. That is historical proof if any was necessary, of the derivation of the first money. There is one thing of immense importance to notice here. The owner of the cattle made and issued the money, which represented wealth

During the 15th and 16th centuries, Europe was rent by wars and the chief owners of wealth were the feudal nobles. Much of their wealth was in the form of gold and silver plate and when they needed coin, they pawned the plate with the gold smith who had strong rooms. It also became practice to deposit gold plate with the goldsmiths for safekeeping. In either case, the goldsmiths gave a receipt, signed on parchment. Holders of these parchments found it convenient to use them to pay for large purchases, rather than go to the goldsmith and withdraw the gold they had deposited with him. The new owner of the parchment found it equally convenient to pass it on in payment for purchases. The goldsmiths' parchments were therefore direct ancestors of modern bank notes. This was a new development, for whilst the original money, leather disks, was issued by the owner of the cattle they represented, the parchments were issued by a third party, and the results were revolutionary. It was the goldsmith's signature upon the parchments, which made it acceptable as a means of payment and so enable it to pass from hand to hand. In this way, the power of creating money fell into the hands of those who were neither the owners nor the creators of wealth but merely its custodians. It was inevitable that the gold smiths should notice that a large percentage of their clients left their valuables in the bank almost indefinitely. In fact, and the ratio remained constant for centuries, only 1 in 10 of the receipts issued by the gold smiths came back with a demand for payment in gold. It was a simple deduction on the goldsmith's part that they could therefore lend money, at interest, not in the form of gold coin, but in the form of signed parchments and they could safely do so at the ratio of 10-1 of their actual holdings of gold. This is the basis of modem banking now known as the fractional reserve system.

In 1688, James II was driven off the throne by his son in law William III. The King asked a wealthy English merchant by the name of William Paterson to underwrite the cost of the war against France.

Paterson saw the opportunity to profit from the situation and enlisted some friends to help him set up a privately owned bank as part of the deal with King William.

Paterson and his associates were permitted to charter an exclusive joint stock bank with limited liability to be called the Bank of England.

Established by an Act of Parliament and operating under Royal Charter, the Bank of England opened for business on July 27, 1694. The bank was authorized to issue its own bank notes as legal tender. Then in 1743, something happened that not only changed the course of history but in the ensuing years would set the course of history back then, and even to this day still sets the course of history.

A German goldsmith and banker, Moses Amschel Bauer, had a son, Mayer Amschel

Rothschild. He in turn had 5 sons; Amschel Mayer Rothschild, Solomon Mayer Rothschild,

Karl Mayer Rothschild, James Mayer Rothschild. They became the Central Banks of

Germany, Austria, Italy and France respectively.

Nathan Mayer Rothschild, the third son, founded the London branch of the House of Rothschild in 1809, where it became N.M. Rothschild & Sons at New Court, where its head quarters are today.

On Sunday June 18, 1815, a battle was fought at La Belle Alliance, a suburb of Brussels Belgium, seven miles south of Waterloo. The first military report to London early in the battle indicated that Napoleon appeared to be winning. Everyone believing Wellington to be defeated began to sell off stock on the English stock market causing stocks to plummet.

Nathan Rothschild received the news on June 20 from his personal courier, a man named Rothworth that Wellington had received reinforcements from the Prussians under Gebhard Blucher and had turned the tide in favour of Wellington. Nathan Rothschild then bought up all stocks at rock bottom prices. On June 21 at 11:00 a.m., Wellington's envoy, Major Henry Percy, informed the war office that Napoleon had been beaten in a bitter eight-hour battle, losing one third of his men. By now, Nathan Rothschild controlled the British economy and forced England to set up a new Bank of England which he then owned and controlled while his brother James Mayer Rothschild owned and controlled the Bank of France.

After his defeat at Waterloo, Napoleon was exiled to the island of Saint Helena in the South Atlantic. Before leaving, he said, 'When a government is dependant for money upon bankers, they and not the leaders of government, control the situation, since the hand that gives is above the hand that takes, financiers are without patriotism and without decency.'

Napoleon died in 1821 at Saint Helena. He had written in his will, “I die before my time, killed by the English oligarchy and its hired assassins”.

In his History of His Own Times (1693), Bishop Burnet wrote, “the fear of centralization of the money power was indeed the grounds upon which the Tories and Commons fought so bitterly against founding of the Bank of England, thinking that the bank would grow to be a monopoly. All the money in England would come into their hands and they would, in a few years, become the masters of stock and wealth of the nation”.

  • Rothschild’s London House place loans of 6,500 million pounds worth of foreign loans during the first ninety years of existence.
  • Lionel Rothschild made 18 government loans during his career totaling 1,600 million pounds sterling to the British Government.
  • Lionel Rothschild funded the 16,000,000 pounds the British Government needed to fight the Crimean War.
  • Nathan Rothschild became paymaster-general and chief broker to England’s Army.
  • British Prime Minister, Benjamin Disraeli, brought Egypt’s 177,000 shares in the Suez Canal for 4,000,000 pounds with money credited from N & M Rothschild & Sons on the 15th November, 1875.
  • Nathanial Mayer Lord Rothschild funded Lenin with 1,000,000 rubles.
  • Edmund Rothschild funded the first seven settlements in Palestine.
  • Rothschild’s’ built the Northern Railway, Le Chemin de Fer du Nord Railway and the Kaiser Ferdinand Nordbahn Railway.
  • Rothschild’s founded Alliance Insurance and own Reuters Newsagency.
  • In 1936, after the abdication of Edward VIII, he fled to the house of Schloss Enzesfeld, owned by Eugene Von Rothschild.

Today N.M Rothschild & Sons Ltd of New Court is:

  • Key Bullion broker in the English Commonwealth.
  • Owner and Operator of the Royal Mint Refinery.
  • Gold agent to the Bank of England.
  • And sets the price of gold bullion twice a day.

                        “Portrait of a Dynasty” Frederick Morton

Monday June 27, 2005, “Bank of England warns on debts”.

The Bank said it feared some vulnerabilities may be building in the long term since some customers and financial institutions are continuing to increase their levels of indebtedness. In June it said that household debts, including mortgages totaled 1.83 trillion pound.

Abraham Lincoln –

The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy and more selfish than bureaucracy. It denounces, as public enemies, all who question its methods or throw light upon its crimes.


Social credit movement was first formed in Australia on the 25th October 1930, founded in Perth then established in Sydney, Brisbane and Melbourne in December of that year.

It was formed in Canada in 1935 in the province of Alberta where William Aberhart organized the social credit party and led it to victory in the provincial election of 1935. Social credit doctrine is now in place in Madagascar.

The Solomon Islands have a Social Credit Party led by former Prime Minister Manasseh Sogavare. Mr. Sogavare said the party aims to truly represent the grassroots.

Social Credit has nothing to do with Socialism, Catholicism or Religion it is about the government of the day using money for the benefit of the people and not the multi-million dollar profits of bankers.



  1. To make the government the only institution entrusted with the creation of credit.
  2. Abolition of all taxation.
  3. To increase consumer purchasing power by selling goods and services at fixed prices at less than cost as calculated by producers.
  4. The government to reimburse producers for the losses they would otherwise sustain to cover the cost of production out of new money thus creating debt free money in the economy.
  5. To create an honest, fair and just banking system.

Jeff Davy


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