The Industrial Revolution

Bibliographic data

Monograph

Identifikator:: 1027928145

URN:: urn:nbn:de:zbw-retromon-159926

Document type:: Monograph

Author:: Cunningham, William http://d-nb.info/gnd/128907487

Title:: The Industrial Revolution

Place of publication:: Cambridge

Publisher:: The University Press

Year of publication:: 1922

Scope:: xxii S., S. 404-886

Digitisation:: 2021

Collection:: Economics Books

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146 PARLIAMENTARY COLBERTISM natter of fact this fear proved illusory. The security and facilities for investment, offered by the Funds, tended to the more rapid formation of capital, and conferred lasting venefits on the trading community. From this time on- wards it became a usual thing for careful men to trade upon borrowed capital, since they found they could habitually obtain the loan of it on easy terms. During the latter part of the seventeenth century England was hampered in every way, both as to internal development, and commerce, and colonisation, by lack of capital; and the banking system which was inaugurated in 1696 had an enormous influence in remedying these evils. 218. It was probably inevitable that, until a consider- able body of experience had been accumulated, there should be many and serious blunders as to the nature of credit, and the conditions under which the forms of credit are available to serve as money. The men of the eighteenth century found shat they had a new and very powerful economic instrument Phy wilture in their hands, and they only gradually discovered how to ditions of use it wisely. Strictly speaking credit is not wealth?, though re ey a man who has credit is able to procure the use of other ecognised, neople’s wealth. The forms of credit supply a method of anticipating expected wealth, and of obtaining immediate control over certain sums of money, because of expectations in regard to the future. Whenever the expectations are mistaken, and the actual wealth obtained falls short of the anticipated wealth, there is a danger of serious loss. By the judicious restriction of his advances, the banker may check over-sanguine speculation as to possible gain in the future. His readiness to grant loans on easy terms is of course an encouragement to speculation; it increases the quantity of paper money available, and tends to raise the rates of prices, and to render business more remunerative. On the other hand, the action of bankers in suddenly withdrawing accustomed facilities may create a feeling of alarm and distrust, which will make men unwilling to accept paper monev at all. and cause a sudden fall in values of every kind. 4.1). 1689 —1776. hut gave ppportuni- ea for trading on borrowed raprtal. 1 On the difficulties of various trading companies who sunk their wealth in soncessions and had no circulating capital see below, p. 466.

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