Affairs in England.

After 1832 the monopoly of the Bank of England was restricted to a circle of 65 miles around London. Within that circle strong joint-stock banks were formed, on unlimited liability, to do a true banking business, discount and deposit, but without issues of notes. Beyond that limit joint-stock banks were formed, which did issue notes on the American or Scotch plan. They called it the Scotch plan, but they managed it more in the American fashion. This extension of banking fell in with the industrial development already noticed, and with a great prosperity of cotton, silk, and iron manufactures, and with a series of good crops. The natural consequences followed —rising prices of manufactures, cheap food, demand for raw materials, easy credit, and hopeful speculation. The rapid increase of capital encouraged railroad building and American investment.