The Bank Charter Act cannot be maintained...

Edward Lloyd's 1858 pamphlet addresses Sir G. Cornnewall Lewis, Chancellor of the Exchequer, proposing reforms to the Bank Charter Act of 1844. Lloyd argues that financial panics arise from inadequate currency supply during monetary crises, citing the panics of 1847 and 1857. He contends the Act fails because it constrains money supply precisely when expansion is needed most. Lloyd advocates for a "relaxing clause" permitting the Bank of England to increase note circulation during periods of pressure, while maintaining contraction during stable times. He cites historical precedent, including the 1793 panic's mitigation through Exchequer Bill advances, and criticizes Sir Robert Peel's oversight in designing legislation that encouraged speculation through low interest rates while providing no mechanism for panic relief. Lloyd proposes establishing a minimum 4 percent discount rate to moderate monetary oscillations and protect solvent commerce from credit collapse.