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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MISUNDERSTANDING IN REGARD TO CREDIT 447 Until considerable experience had been gained, there was A.D. 1689 . . 2 CLT 1776. special danger that the Bank, which exercised a unique in- fluence over English credit, should on the one hand aggravate the evils of a period of inflation, or on the other should induce commercial disaster by the hasty reduction of its issues. The difficulties of the directors were aggravated by the business fact that a change was coming over the habits of ordinary wn 1 traders; legitimate business was becoming more speculative "tr in character. In the days when regulated companies had kept an effective control over the conditions of commerce, and enforced a system of well-ordered trade, there was little room for enterprise in pushing business. After the Revolu- tion, the companies had so far sunk in importance that it was possible for merchants to ship goods in any quantities they preferred, and to speculate on changes in the market rate for goods. The increased possibility of borrowing capital, when opportunity for using it offered, must have enabled shrewd and well-informed men to rise rapidly to considerable affluence. The system of joint-stock trading rendered it easy for the outside public to have a part in commercial gains, without the necessity of devoting themselves to the cares of business. So many companies were formed, that transactions in their shares became increasingly frequent, and this fresh field of business opened up a new range for speculative dealing. Davenant, Hutcheson, Defoe, and all the leading economic writers of the day, complain of the rapid development of stock-exchange gambling which oc- curred at this time. The new trades, which were being opened up, and the new industrial facilities, which the credit system seemed to offer, appeared to have turned the heads of many of the men of that day. Large sums had been made, especially by bankers, and it seemed as if there were no end to the fortunes which might be acquired. There was, in consequence, great violence in the changes of prices. If a business was doing well, the gains were exaggerated, and many men were eager to rush into it, so that the price which had to be paid for shares was forced up unduly; on the other hand, if a stock fell, there seems to have been a regular rush to get rid of it, and the price fell with rapidity. especially in connec- tion with the Stock exchange.

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