This book is concerned with developments in three main areas of monetary history: domestic commercial banking; monetary policy; and the UKâ€™s international financial position. For ease of analysis the 160 years under study are arranged into three clear chronological divisons. Part 1 covers the years 1826-1913, a period in which the UK emerged as the worldâ€™s leading economic power. It was in these years that an extensive and fully-operative domestic banking system was established. Part 2 covers 1914 to 1939 â€“ the years which marked a break in the traditional monetary arrangements of the Victorian and Edwardian eras. Part 3 covers 1939-1986 when the dominance of state influence within the domestic money markets was re-established by the Second World War and the acceptance by the authorities of the obligation to â€˜manageâ€™ the economy which meant that successive postwar governments took direct responsibility for the conduct of monetary and credit policy.