▁Britain ' s ▁pan ic ▁of ▁ 1 8 2 5 ▁to ▁f ru ition . ▁Al ong ▁with ▁the ▁industrial ▁revolution ▁came ▁rapid ▁develop ments ▁in ▁fin ance ▁and ▁bank ing . ▁Also ▁in ▁the ▁period ▁leading ▁up ▁to ▁the ▁crisis , ▁Britain ▁remained ▁heavily ▁involved ▁in ▁the ▁enorm ously ▁expensive ▁French ▁Revolution ary ▁and ▁Napole onic ▁Wars . ▁ ▁The ▁crash ▁occurred ▁after ▁a ▁period ▁of ▁w art ime ▁fin ance ▁in ▁which ▁Britain ▁susp ended ▁the ▁gold ▁standard ▁as ▁a ▁temporary ▁w art ime ▁measure . ▁Exp ansion ary ▁mon et ary ▁policy ▁proved ▁prof itable ▁for ▁the ▁entire ▁financial ▁sector . ▁But ▁when ▁the ▁war ▁ended , ▁and ▁the ▁government ▁moved ▁to ▁re inst ate ▁the ▁gold ▁standard ▁and ▁res ume ▁c ash ▁pay ments , ▁the ▁economy ▁contract ed . ▁ ▁In ▁prepar ation ▁for ▁res uming ▁convert ibility , ▁the ▁Bank ▁of ▁England ▁raised ▁interest ▁rates , ▁am ass ed ▁a ▁stock ▁of ▁gold , ▁and ▁re called ▁notes ▁from ▁circul ation . ▁This ▁caused ▁def lation ▁but ▁allowed ▁the ▁Bank ▁to ▁res ume ▁full ▁convert ibility ▁in ▁ 1 8 2 1 . ▁And ▁while ▁econom ists ▁and ▁histor ians ▁generally ▁provide ▁non - conf lic ting ▁accounts ▁of ▁the ▁events ▁which ▁lead ▁up ▁to ▁the ▁crash , ▁a ▁number ▁of ▁different ▁arguments ▁have ▁been ▁made ▁over ▁what ▁the ▁most ▁important ▁factors ▁were , ▁with ▁varying ▁weight ▁assigned ▁by ▁different ▁exper ts . ▁ ▁The ories ▁William ▁A ck worth ' s ▁ 1 9 2