The Bank of England and the British currency were therefore at risk from drains of gold leaving the country or being withdrawn internally, which reduced the backing for its banknotes. In 1847, heavy drains occurred, and the Act was 'suspended' when the Bank of England was presented with a letter from the government indemnifying the Bank for a breach of the Act. The crisis in the money market ended almost immediately, without any breach of the Act.
As a result, the Bank of England and British currency were exposed to potential losses due to gold drains from the country or internal withdrawals, which reduced the backing for its banknotes. In 1847, significant gold drains took place, and the Act was temporarily halted when the Bank of England received a letter from the government absolving it of any liability under the Act. The financial crisis in the money market subsided rapidly without any breach of the Act.