Old Lady (The Old Lady of Threadneedle Street)

Key takeaways
* “The Old Lady” is a longstanding nickname for the Bank of England, shorthand for the Old Lady of Threadneedle Street.
* The name originated from an 1797 political cartoon by James Gillray that satirized the Bank Restriction Act and the suspension of gold convertibility.
* The episode marked a turning point in public confidence in paper currency and helped cement the Bank’s image; the Bank later evolved into a modern central bank and lender of last resort.

What the nickname means
* The Old Lady (or Old Lady of Threadneedle Street) is a colloquial, slightly anthropomorphic name for the Bank of England, referring to its historic headquarters on Threadneedle Street in London.

Origin: the 1797 cartoon and the Restriction Act
* The nickname traces to James Gillray’s 1797 cartoon “Political Ravishment, or The Old Lady of Threadneedle Street in Danger!” The image depicts the Bank as an elderly woman draped in banknotes while Prime Minister William Pitt the Younger reaches for gold—an allegory of the government’s actions.
* The cartoon satirized the Bank Restriction Act of 1797, under which the Bank of England suspended redemption of banknotes for gold and paid in paper money only. The suspension was enacted during a period of financial strain—heavy wartime financing, a run on the bank, and the brief threat of French invasion near Fishguard.
* Opposition politicians likened the measure to a betrayal of contractual rights and compared the Bank to an “old woman” being swindled, a comparison that Gillray popularized.

Why it mattered
* The 1797 suspension was the first time Bank of England notes were not redeemable for gold, testing public confidence in paper money and expanding debate about the government’s role in monetary stability.
* The satirical image stuck in public and political discourse, and the phrase entered newspapers, cartoons, and everyday finance language.

Brief history of the Bank of England
* Founded in 1694, the Bank of England became a model for modern central banking. It moved to Threadneedle Street in 1734.
* Early crises shaped its role: the South Sea Bubble (1720) exposed systemic risk; the panic of 1825 led the Bank to open branches to better manage the currency; and the collapse of discount house Overend, Gurney & Co. in 1866 accelerated its evolution into a lender to failing institutions.
* Over time the Bank shifted from commercial functions toward central-bank responsibilities, including issuing currency, managing monetary policy, and acting as lender of last resort.

Legacy and usage
* Today the Old Lady remains a familiar cultural and journalistic shorthand for the Bank of England. The nickname evokes both the institution’s long history and its central role in Britain’s financial system.

Conclusion
* The “Old Lady of Threadneedle Street” began as satirical commentary on a specific political and monetary crisis but endured because it captured the public imagination. It now symbolizes the Bank of England’s historical continuity and central importance to British finance.