“Pay Me my Money” : the British credit crises of 1772.

Credit Crisis of 1772.

In the mid 1760’s, the British empire having colonized different states, accumulated enormous wealth.

This extraordinary achievement created overoptimism and rapid credit expansion by British banks.

All these came to an unceremonious end when Alexander Fordyce, one of the partners of the banking house: “Neal, James, Fordyce and Down”, fled to France to escape paying his debts.

This triggered panic among creditors and they began visiting banks demanding for instant cash withdrawal.

This financial Crisis then spread to Scotland, Netherlands and other parts of Europe, even to British American Colonies.

Historians believe this crisis is one of the triggers of the Boston Tea party protest and the American revolution.