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Lombard Street (Bagehot)

Lombard Street (Bagehot)

BIBLIOGRAPHY

In the second half of the nineteenth century, world financial activity was centered in London. Within the city, the core of the financial district was Lombard Street, named after the bankers and financiers from northern Italy who centuries before had established their businesses there. In 1873, Walter Bagehot, editor of The Economist magazine, published a book that explained the workings of the London financial market. He titled it Lombard Street: A Description of the Money Market.

Lombard Street quickly became the main resource for understanding the workings of the London financial industry, replacing Henry Thorntons Enquiry into the Nature and Effects of the Paper Credit of Great Britain, published seven decades earlier in 1802. In Lombard Street, Bagehot briefly surveyed the origins of the London market and the reasons for its existence before undertaking a detailed description of the functions of a host of financial market participants, both public and private.

Lombard Street examines both the technical workings of the market and the governments policy actions within the market, as determined by the chancellor of the Exchequer and the directors of the Bank of England. It describes the activities of joint-stock banks, private banks, and bill brokers, all of which was of great interest to large numbers of contemporary readers. But the signal contribution of Lombard Street is Bagehots discussion of how the Bank of England should behave toward other banks, especially when the money market was under stress.

The Bank Charter Act of 1844 had separated the Bank of England into an Issue Department, which issued bank notes backed by gold reserves, and a Banking Department, which was free to behave like an ordinary commercial bank. Critics of the Bank Act, including Bagehots father-in-law James Wilson, founder of The Economist, argued throughout the 1850s and 1860s that the Banks support of the money market during commercial crises was crucial and that the Bank of England should hold larger reserves of gold to meet the increased demand for gold during such periods. However, none of the critics developed a well-rounded case for the Bank to act as a central bank before Bagehot wrote.

Bagehot recognized that, though the Bank of England had no legal obligation to act as the nations central bank, it in fact had done so since before 1800. Because the Bank kept the gold reserve for the entire economy, it had no choice but to act as a central bank. This meant that the Bank of England had to meet the banking systems liquidity needs during crises and that the Bank should act as lender of last resort when the increased demand to hold gold by individuals threatened the ability of solvent banks to meet their commitments.

Although the principle that the Bank of England would act as the banking systems lender of last resort was widely accepted after 1873, the British government implemented no legislation requiring the Bank to do so. Rather, the government assumed that the Bank would conduct its business appropriately. The Bank in fact did not hold larger gold reserves after 1873; in relation to the size of the banking system, the Banks reserve shrank. The absence of any major crises over the next four decades prevents historians from knowing how the Bank of England would have behaved during a crisis.

SEE ALSO Economic Crises; Finance; Financial Instability Hypothesis; Financial Markets; Fleet Street; Lender of Last Resort; Wall Street

BIBLIOGRAPHY

Bagehot, Walter. [1873] 1999. Lombard Street: A Description of the Money Market. New York: John Wiley & Sons.

Thornton, Henry. [1802] 1978. An Enquiry into the Nature and Effects of the Paper Credit of Great Britain, ed. F. A. von Hayek. Fairfield, NJ: A. M. Kelley.

Wood, John H. 2003. Bagehots Lender of Last Resort: A Hollow Hallowed Tradition. The Independent Review 7 (3): 343351.

Neil T. Skaggs

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"Lombard Street (Bagehot)." International Encyclopedia of the Social Sciences. . Encyclopedia.com. 16 Aug. 2017 <http://www.encyclopedia.com>.

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Lombard

Lombard a member of a Germanic people who invaded Italy in the 6th century, and who settled in what became Lombardy. The name of this people comes from Italian lombardo, representing late Latin Langobardus, of Germanic origin, from the base of the adjective long + the ethnic name Bardi. The name Longobard is now also used by modern scholars.

In the Middle Ages, the term Lombard was used for bankers and money-lenders from Lombardy, and from this was applied generally to anyone engaged in banking and money-lending. Lombard Street in the City of London, containing many of the principal London banks, was so named because it was formerly occupied by bankers from Lombardy.
all Lombard Street to a China Orange very long odds against; the expression dates from the early 19th century, although a China orange taken as the type of something worthless is recorded earlier.

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Lombard

Lombard one of the Langobardi who conquered Italy in VI and from whom Lombardy took its name; native of Lombardy; moneychanger or banker of this nationality XIV (whence Lombard Street in London); †bank, pawnshop XVII. — MDu., MLG. lombaerd or F. lombard — It. lombardo, repr. medL. Lango-, Longobardus — Gmc. *Laŋgobarðaz, -an- (OE. pl. Langbeardas, -an), f. *laŋga- LONG1 + ethnic name Bardi.

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Lombards

Lombards Germanic peoples who inhabited the area e of the lower River Elbe until driven w by the Romans in ad 9. In 568, they invaded n Italy under Alboin and conquered much of the country, adopting Catholicism and Latin customs. The Lombard kingdom reached its peak under Liutprand (d.744). It went into decline after defeat by the Franks under Charlemagne (775).

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"Lombards." World Encyclopedia. . Encyclopedia.com. 16 Aug. 2017 <http://www.encyclopedia.com>.

"Lombards." World Encyclopedia. . Encyclopedia.com. (August 16, 2017). http://www.encyclopedia.com/environment/encyclopedias-almanacs-transcripts-and-maps/lombards

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Lombard Street

Lombard Street, in London, England. It is a street of banks and financial houses that takes its name from the Lombard merchants and moneylenders who settled there in the 13th cent.

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"Lombard Street." The Columbia Encyclopedia, 6th ed.. . Encyclopedia.com. 16 Aug. 2017 <http://www.encyclopedia.com>.

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Lombards

Lombards (lŏm´bərdz, –bärdz), ancient Germanic people. By the 1st cent. AD the Lombards were settled along the lower Elbe. After obscure migrations they were allowed (547) by Byzantine Emperor Justinian I to settle in Pannonia and Noricum (modern Hungary and E Austria). In 568, under the leadership of Alboin, they invaded N Italy and established a kingdom with Pavia as its capital. They soon penetrated deep into central and S Italy, but Ravenna, the Pentapolis (Rimini, Ancona, Fano, Pesaro, and Senigallia), and much of the coast remained under Byzantine rule while Rome and the Patrimony of St. Peter (see Papal States) were kept by the papacy. After Alboin's death (572?) and the brief reign of Cleph (d. 575), no king was elected and Lombard Italy fell under the disunited rule of 36 dukes. The Lombard duchies of Spoleto and Benevento in central and S Italy were set up independently. In 584 the Lombard nobles united to elect Cleph's son, Authari, as the new king in order to strengthen themselves against the enmity of the Franks, the Byzantines, and the popes.

The Lombard kingdom reached its height in the 7th and 8th cent. Paganism and Arianism, which were at first prevalent among the Lombards, gradually gave way to Catholicism. Roman culture and Latin speech were accepted, and the Catholic bishops emerged as chief magistrates in the cities. Lombard law combined Germanic and Roman traditions. King Liutprand (712–44) consolidated the kingdom through his legislation and reduced Spoleto and Benevento to vassalage. One of his successors, Aistulf, took Ravenna (751) and threatened Rome. Pope Stephen II appealed to the Frankish King Pepin the Short, who invaded Italy; the Lombards lost the territories comprised in the Donation of Pepin to the papacy. After Aistulf's death King Desiderius renewed (772) the attack on Rome. Charlemagne, Pepin's successor, intervened, defeated the Lombards, and was crowned (774) with the Lombard crown at Pavia. Of the Lombard kingdom only the duchy of Benevento remained, and it was conquered in the 11th cent. by the Normans. The iron crown of the Lombard kings (now kept at Monza, Italy) was also used for the coronation (951) of Otto I (the first Holy Roman emperor) as king of Italy and for the crowning of several succeeding emperors. The Lombards left their name to the Italian region of Lombardy. The chief historian of the Lombards was Paul the Deacon.

See T. Hodgkin, Italy and Her Invaders, Vol. V and VI (1895, repr. 1967); P. Villari, Barbarian Invasions of Italy (2 vol., tr. 1902); J. T. Hallenbeck, Pavia and Rome: The Lombard Monarchy and the Papacy in the Eighth Century (1982).

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Lombard

Lombard, village (1990 pop. 39,408), Du Page co., NE Ill., a residential suburb of Chicago; inc. 1869. Plastics are produced. The village is known for its lilacs.

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Lombard

LombardAssad, aubade, avant-garde, backyard, ballade, bard, Bernard, bombard, canard, card, charade, chard, couvade, croustade, Cunard, facade, glissade, guard, hard, ill-starred, interlard, lard, Montagnard, nard, pard, petard, pomade, promenade, regard, retard, rodomontade, roulade, saccade, Sade, salade, sard, shard, unmarred, unscarred, yard •Bayard • galliard • Savoyard •Svalbard •bombarde, Lombard •Goddard • blackguard • vanguard •Asgard • safeguard • Midgard •bodyguard • lifeguard • Bogarde •coastguard • mudguard • rearguard •fireguard • Kierkegaard • diehard •blowhard •Jacquard, placard •flashcard • railcard • racecard • Picard •scorecard • showcard • phonecard •Ballard, mallard •Willard • Abelard • bollard • Barnard •Maynard, reynard •communard • Oudenarde • Stoppard •Gerard • Everard • brassard •Hansard, mansard •Trenchard • Ostade • leotard •boulevard • scrapyard • farmyard •barnyard • graveyard • brickyard •shipyard •dockyard, stockyard •foreyard • courtyard • boatyard •woodyard • junkyard • churchyard

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