▁worked ▁with ▁the ▁Tre as ury ▁as ▁the ▁agent ▁medi ating ▁fis cal ▁trans fers ▁home ▁and ▁abroad ▁during ▁one ▁of ▁history ' s ▁most ▁expensive ▁wars ▁up ▁to ▁that ▁time . ▁ ▁London ' s ▁private ▁banks ▁and ▁foreign ▁mer ch ants ▁fle eing ▁ext ort ion ▁expanded ▁business ▁within ▁the ▁city . ▁ ▁Country ▁banks ▁expanded ▁rapidly ▁across ▁Britain ▁between ▁ 1 7 8 0 ▁and ▁ 1 8 1 0 . ▁After ▁the ▁Bank ▁of ▁England ▁susp ended ▁convert ibility ▁and ▁lifted ▁restrictions ▁against ▁issu ing ▁small ▁notes ▁in ▁ 1 7 9 7 , ▁small ▁country ▁banks ▁could ▁profit ▁by ▁issu ing ▁small ▁den om ination ▁notes ▁to ▁replace ▁circul ating ▁co ins . ▁ ▁From ▁war ▁to ▁peace ▁ ▁Tre as ury ▁Emer ging ▁from ▁war ▁and ▁dep riv ed ▁of ▁tax ation ▁re venue , ▁the ▁Tre as ury ▁found ▁itself ▁struggling ▁to ▁service ▁the ▁massive ▁government ▁deb t ▁accum ulated ▁during ▁war . ▁ ▁Bank ▁of ▁England ▁To ▁compens ate ▁for ▁the ▁de ple tion ▁of ▁its ▁own ▁prof itable ▁w art ime ▁re venue ▁streams , ▁the ▁Bank ▁of ▁England ▁had ▁to ▁find ▁ways ▁to ▁replace ▁the ▁re venue ▁previously ▁brought ▁in ▁through ▁w art ime ▁bond ▁issu ances . ▁ ▁Capital ▁mark ets ▁London ' s ▁capital ▁mark ets ▁respond ed ▁to ▁the ▁ret irement ▁of ▁high - y ield ing ▁government ▁b onds ▁by ▁producing ▁what ▁Larry ▁Ne al ▁refers ▁to ▁as ▁a ▁" bew ilder ing ▁array " ▁of ▁new ▁financial ▁assets