The Industrial Revolution

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Monograph

Identifikator:: 1012149900

URN:: urn:nbn:de:zbw-retromon-24397

Document type:: Monograph

Author:: Obst, Georg http://d-nb.info/gnd/11759296X

Title:: Geld-, Bank- und Börsenwesen

Edition:: 30., völlig veränd. Neuauflage

Place of publication:: Stuttgart

Publisher:: C.E. Poeschel Verlag

Year of publication:: 1937

Scope:: 1 Online-Ressource (XVI, 566 Seiten)

Digitisation:: 2018

Collection:: Business and Management Classics

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Dritter Teil. Börse und Börsengeschäfte

Collection:: Business and Management Classics

CREDIT AND CRISES 7901 grant loans. When the period of increasing inflation is allowed AD Js to continue too long, some unlooked-for incident may force the banks to reconsider their position, and suddenly refuse to continue the accommodation they have been giving to mer- chants and manufacturers. Asa consequence, some traders, who are really quite solvent, may have great difficulty in ob- taining money with which to pay their way, and will be forced either to realise their stocks at great loss, or to suspend payment. The bills of such a firm will at once become dis- credited, and those who hold them will have increased difficulty in discharging their own obligations, so that one firm after another may be dragged into the vortex and go down. Illustrations of the manner in which political changes affected the state of commercial credit have already been given in connection with the over-trading which occurred, on the cessation of hostilities with the American colonies in 1782, and again after the years of rapid progress which were suddenly checked by the outbreak of the Revolutionary War in 1793. The ‘short and feverish peace’ of 1803 did not last long enough to allow of a serious development of speculative trading, but the conditions of business in 1809-10 lured many merchants to disaster. The high range of prices in England gave an unhealthy impulse to importation, and there was also a development of speculative trading with South Americal. The sudden closing of the Baltic trade seems to have been the chief incident which brought about the actual collapse, which was extraordinarily severe, and from which there was little opportunity to recover. It is, of course, true that the alternations of peace and war were not the only causes at work in producing these results; the bad times in 1793 and 1797 were connected with the progress of the industrial revolution. The sinking of capital in factories and machinery and the making of canals® caused an internal drain on the reserve of the banks’; these years were in some ways an anticipation of the troubles caused by the railway mania‘; still the political storms were the most important factors im bringing about sudden fluctuations in trade and credit. 1 Tooke, History of Prices, 1. 276, 303. 2 Macpherson, Annals, 1v. 226. ® Nicholson, Principles of Political Economy, 11. 210. + See p. 826 below. There was frequent temptation ‘fo over- rading, 14

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