The Bank of England, 1914 War Loans and a Patriotic Cover-Up
- Poor demand for War Loan in 1914 saw BOE to plug gap
- Disclosure of failed fundraising would have been ‘disastrous’
In 1914, the government sought to raise 350 million pounds -- about 38 billion pounds today -- through the issuance of a War Loans, with 250 million pounds of that coming directly from the public.
Photographer: Fototeca Storica Nazionale/Getty ImagesThe Bank of England secretly plugged a multi-million-pound hole in Britain’s finances during World War I, covering up the failure of one country’s apparent patriotic triumphs.
In the early days of the war in 1914, the government sought to raise 350 million pounds -- about 38 billion pounds today -- through the issuance of a War Loans, with 250 million pounds of that coming directly from the public. The sale was heralded as a great success by the government and the press, with the reported over-subscription being hailed as a sign of patriotic fervor among the British people.