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Huge amounts of capital are exported from Britain Huge amounts of British capital are invested abroad, in the United States, parts of the British Empire, and Argentina. The total reaches billions of pounds. Britain‘s later economic problems may be partly due to the neglect of British industry during this period.
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The US Civil War
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US Legal Tender Act and the issue of Greenbacks The United States Treasury starts issuing notes that are not convertible into gold or silver but are legal tender for all purposes except payment of customs duties.
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The Latin Monetary Union This comprises France, Italy, Belgium, Switzerland, and later Greece. The gold and silver coins of each country are legal tender throughout the union.
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Meiji restoration in Japan Japan‘s isolationist policy is ended. |
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Plentiful
silver supplies cause fall in value of After 1870 there is a vast increase in the amount of silver coming on to world markets because of new mines and the demonetization of silver as European countries switch to the gold standard. As a result the undebased silver coinage of India, and the currencies of China, Japan and south east Asia, countries comprising half the world‘s population, suffer an unprecedented fall in value.
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Franco-Prussian War
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Bank panic in the US and Germany Lacking a central bank or lender of last resort able and willing to supply sufficient liquidity to quell crisis in their early stages, the US proves prone to bank panics. As in 1857 the panic spreads across the Atlantic and causes many bank failures in Germany.
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Bank of Prussia becomes the German Reichsbank On becoming the national bank of the whole of Germany it absorbs and replaces the note issues of about 30 other state banks with its own notes.
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Bank of Japan founded
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Bank panic in the US
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British dollars minted for colonies in the Far East Most of the British dollars are minted in Bombay. |
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Japan officially adopts the gold standard
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