So to get the necessary money, the government set up the Bank of England in 1694. Lenders could pay into the bank with cash and they would receive bank notes against government bonds. Within less than two weeks, William III had raised the £1.2 million necessary to restrengthen the country’s navy.
The foundation of the Bank of England proved to be a huge turning point for the country. And with the loan secured, England could fund all of the industries required to bulk up its navy. This included the agricultural sector and the country’s ironworks, which provided materials used for building ships.
The kingdoms of England and Scotland unified in 1707 to become the Kingdom of Great Britain. And with a healthy bank and a booming industry, this kingdom became very powerful. William III’s strengthened navy fought to make Great Britain a principal player on the global stage into the 19th century.