The first time of trial came in 1825.

In that year the Bank directors allowed their stock of bullion to fall in the most alarming manner: On Dec.

24, 1824, the coin and bullion in the Bank was L 10,721,000 On Dec.

25, 1825, it was reduced to L 1,260,000 and the consequence was a panic so tremendous that its results are well remembered after nearly fifty years.

In the next period of extreme trial--in 1837-9--the Bank was compelled to draw for 2,000,000 L.
on the Bank of France; and even after that aid the directors permitted their bullion, which was still the currency reserve as well as the banking reserve, to be reduced to 2,404,000 L.: a great alarm pervaded society, and generated an eager controversy, out of which ultimately emerged the Act of 1844.