What Is the Old Lady?
Let me tell you directly: the 'Old Lady' is an eighteenth-century nickname for the Bank of England. It's a shortened form of the Old Lady of Threadneedle Street, pointing to the bank's location right in the heart of London.
Key Takeaways
- The Old Lady, or the Old Lady of Threadneedle Street, is a colloquial nickname for the Bank of England.
- This nickname originates from a 1797 satirical cartoon regarding the suspension of gold redemption under the Restriction Act of 1797.
- The nickname has since appeared in cartoons, newspapers, books, and common usage to refer to the Bank.
Understanding the Old Lady
You need to know that the Old Lady nickname for the Bank of England comes from a 1797 political cartoon by James Gillray. In that cartoon, titled 'Political Ravishment, or The Old Lady of Threadneedle Street in Danger!', there's a woman dressed in one- and two-pound notes, sitting on a chest labeled 'Bank of England.' Prime Minister William Pitt is shown forcibly kissing her while grabbing for gold coins in her pocket. The woman shouts, 'Murder! murder! Rape! murder! O you Villain! what have I kept my Honor untainted so long, to have it broke up by you at last? O Murder! Rape! Ravishment! Ruin! Ruin! Ruin!!!'
This image was a commentary on Prime Minister William Pitt the Younger's recent move under the Bank Restriction Act of 1797, where the bank stopped redeeming notes for gold and switched to paper money payments only. The Act came about due to a potential bank run after heavy note issuance to fund the war with France, sparked by French forces landing near Fishguard.
That moment tested public trust in paper currency and the prime minister's authority to enforce such changes. It marked the first time the Bank's notes weren't backed by gold. Opposition Whig leaders in Parliament called the Act a breach of private contracts and compared the Bank to an old woman tricked by a con artist—Pitt himself. That's what inspired Gillray's cartoon.
The portrayal of the Bank as an old woman caught on, and it kept showing up in political cartoons, headlines, and everyday financial talk.
History of the Bank of England
The Bank of England, which now acts as the central bank for the whole United Kingdom, started in 1694 and set the model for most central banks around the world today. At first, it functioned as a retail bank too. Its initial major crisis hit in 1720 with the South Sea Company, which took on some of Britain's national debt and got trading rights in what's now South America. South Sea stock prices skyrocketed, then crashed, wiping out fortunes for many.
In 1734, the bank relocated to Threadneedle Street from its original spot on Walbrook.
Another crisis in 1825 led the Bank of England to establish branches nationwide for better currency control. Then in 1866, it declined to rescue the failing discount house Overend Gurney, burdened by bad loans. That event broadened the Old Lady's role as a lender of last resort to struggling financial institutions.
Other articles for you
Highest in, first out (HIFO) is a rare inventory accounting method that uses the most expensive items first to maximize COGS and minimize taxable income, though it's not recognized by GAAP.
Uncollected funds are portions of check deposits that banks hold unavailable until verified and cleared.
VAMI tracks the monthly performance of a hypothetical $1,000 investment with reinvestments over time.
Green technology encompasses environmentally friendly innovations aimed at reducing human impact on the planet and promoting sustainability.
Unfair claims practice occurs when insurers improperly avoid, delay, or reduce valid claims to minimize costs, which is illegal in many jurisdictions.
A licensee is an entity granted permission to use another's assets for business activities, often involving compensation.
A stock quote provides the current price and related data for a stock on an exchange to inform investors.
The OPEC Basket is a weighted average of oil prices from OPEC member countries, serving as a benchmark for monitoring global oil market stability.
Functional obsolescence reduces an object's usefulness due to outdated, hard-to-change design features.
A mortality table shows the probability of death for people in a specific population over a given time.