return ▁vent ures ▁Bank ▁of ▁England ' s ▁actions ▁of ▁rapidly ▁increasing ▁the ▁money ▁supply , ▁then ▁rapidly ▁tight ening ▁it , ▁initi ating ▁bank ▁runs ▁and ▁finally ▁ref using ▁to ▁act ▁as ▁l ender ▁of ▁last ▁resort ▁until ▁too ▁late . ▁At ▁the ▁time , ▁the ▁Bank ▁of ▁England ▁was ▁not ▁a ▁central ▁bank ▁but ▁a ▁public , ▁for - pro fit ▁bank ▁with ▁three ▁lo y alt ies : ▁its ▁share hold ers , ▁the ▁British ▁government , ▁and ▁its ▁correspond ent ▁commercial ▁bank ers . ▁The ▁Bank ▁of ▁England ▁raised ▁the ▁l ending ▁rate ▁to ▁protect ▁its ▁invest ors , ▁instead ▁of ▁lower ing ▁it ▁to ▁protect ▁the ▁public . ▁The ▁self - inter est ▁of ▁the ▁Bank ▁of ▁England ▁thereby ▁caused ▁additional ▁fail ures . ▁Although ▁bank er ▁Henry ▁Thor nt on ▁described ▁in ▁ 1 8 0 2 ▁the ▁proper ▁l ender ▁of ▁last ▁resort ▁actions ▁to ▁be ▁taken ▁by ▁a ▁central ▁bank ▁in ▁such ▁a ▁crisis , ▁it ▁was ▁not ▁until ▁the ▁Over end ▁G ur ney ▁crisis ▁of ▁ 1 8 6 6 ▁that ▁the ▁Bank ▁of ▁England ▁would ▁take ▁action ▁to ▁prevent ▁w ides p read ▁pan ic ▁withdraw als . ▁In action ▁by ▁the ▁Bank ▁of ▁England ▁led ▁to ▁a ▁system ic ▁sto pp age ▁of ▁the ▁bank ing ▁system , ▁and ▁was ▁followed ▁by ▁w ides p read ▁bank rupt cies , ▁re cess ion ▁and ▁un emp loyment . ▁ ▁Background ▁A ▁number ▁of ▁historical ▁develop ments ▁were ▁at ▁play ▁in ▁bringing