When did Railway Mania reach its peak in the United Kingdom?
Railway Mania reached its zenith in 1846. That year, 263 Acts of Parliament passed for setting up new railway companies.
Questions about Railway Mania
Short answers, pulled from the story.
What caused the collapse of Railway Mania in the mid-1840s?
The Bank of England increased interest rates in late 1845 which made government bonds more attractive than railways. Banks began reinvesting in bonds instead and money flowed out of railways to undercut the boom.
How many miles of railway were built during the Railway Mania period between 1844 and 1846?
A total of thousands of miles of railway line were constructed from projects authorized between 1844 and 1846. This compared to modern UK route mileage of around 10,000 miles today.
Who was George Hudson and what role did he play in Railway Mania?
George Hudson developed routes in the North and Midlands while serving as a Member of Parliament. He amalgamated small railway companies but his practices ultimately failed due to fraud involving dividends paid from capital rather than profits.
Why did middle-class families lose their savings during the Railway Mania crash?
Families on modest incomes had sunk entire savings into new companies because shares required only a 10% deposit initially. Companies called in the remainder of due payments when speculation collapsed and investors faced total loss.