On the evening of 16th October 1834, London’s skyline was dramatically illuminated by a catastrophic fire that engulfed the Palace of Westminster, home to the British Parliament. This event, known as the Burning of Parliament, marked a significant moment in British history, not only for its destruction of the medieval palace but also for its connection to an outdated financial system that had shaped England’s economy for centuries.
The Tally Stick System
At the heart of this disaster lay the humble tally stick, a seemingly simple wooden accounting tool that had played a crucial role in England’s financial history for over 700 years.
A Medieval Financial Innovation
Tally sticks were introduced in England by King Henry I in the 12th century as a method of recording debts and payments to the Royal Exchequer. This system was ingeniously simple yet effective:
- A stick was notched to represent the amount of the debt or payment.
- The stick was then split lengthwise, with one half (the “stock”) retained by the Exchequer and the other (the “foil”) given to the debtor.
- When the debt was settled, the two halves were matched to verify the transaction.
Economic Impact
The tally stick system had several advantages that contributed to England’s economic prosperity:
- Prevention: The unique grain of each stick made forgery extremely difficult.
- Liquidity: Tally sticks could be used as a form of currency, circulating in the economy as representatives of value.
- Economic Stability: By providing a reliable method of accounting and a form of money not controlled by private banks, tally sticks helped stabilize the English economy.
The Fateful Day
By the early 19th century, the tally stick system had become obsolete, replaced by more modern accounting methods. In 1826, the system was officially abandoned, leaving the Exchequer with a vast accumulation of redundant tally sticks[1].
A Careless Disposal
On the morning of 16th October 1834, two workmen, Joshua Cross and Patrick Furlong, were tasked with burning the obsolete tally sticks in the furnaces beneath the House of Lords[1]. Despite warnings about the potential dangers, the burning continued throughout the day, with the workers carelessly overloading the furnaces[1].
The Fire Ignites
By late afternoon, signs of trouble were evident. Visitors to the House of Lords reported uncomfortably hot floors and visible smoke, yet these warnings went unheeded[4]. At around 6 pm, flames were finally spotted emerging from the floor of the House of Lords, marking the beginning of a conflagration that would rage through the night[1][4].
The Inferno and Its Aftermath
The fire spread rapidly, fueled by the wooden interiors and fanned by strong winds. Londoners gathered in their thousands to witness the spectacle, while firefighters and volunteers fought desperately to save what they could[5].
Heroic Efforts
James Braidwood, head of the London Fire Engine Establishment, led the firefighting efforts with 12 engines and 64 men[1]. Their primary focus became saving the historic Westminster Hall, with the Chancellor of the Exchequer reportedly crying, “Damn the House of Commons, let it blaze away! But save, O save the Hall!”[6]
The Aftermath
By morning, the fire had destroyed most of the Palace of Westminster, including the House of Commons and the House of Lords[4]. Westminster Hall was saved, thanks to heroic efforts and a fortunate change in wind direction[6].
Conclusion
The Burning of Parliament in 1834 marked the fiery end of an era. The tally stick system, which had served as a cornerstone of England’s financial stability for centuries, literally went up in flames. While the fire resulted in the construction of the iconic Parliament building we know today, it also symbolized the transition from medieval financial practices to the modern banking system dominated by the Bank of England.
This event serves as a poignant reminder of how seemingly mundane administrative decisions can have far-reaching consequences, and how the tools that shape our economic systems can leave lasting imprints on history, even in their destruction.
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