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

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

oa 0 r “0 tr - 30 AT ried MISUNDERSTANDING IN REGARD TO CREDIT 451 of 1772, the inevitable reaction came. The Bank was able A.D. 1689 to support commercial credit satisfactorily for a time; but > the unexpected failure of the Heales!, a large London house, through defalcations amounting to £300,000, by one of the partners named Fordyce, involved so many other firms in disaster that a general collapse ensued, which seemed almost as serious as the bursting of the South Sea Bubble. As Fordyce had also carried on banking in Scotland, the effects of his conduct extended to that country, and brought about the fall of various trading houses. Among these was the brought newly-founded Ayr Bank, which had been much less success- failure of fully managed than its older rivals. A run began on it just %e dor a week after Fordyce had disappeared; after eight days it 177% had to stop payment. There was still £800,000 worth of its paper in circulation, and the distress the failure occasioned in Scotland could only be compared with the disaster caused by the Darien scheme? There was another outburst of commercial prosperity on ioe dogo the cessation of the American War in 1782. The sudden disaster in opening up of markets encouraged reckless speculation, and 1 it is said that the Directors of the Bank were incautious in their issues and thus fostered the evil?; but they had wisdom bo retrace their steps in time. Their gold reserve was re- duced to a very low ebb, but they thought it was possible, by carefully restricting their issues, to tide over the time till specie should arrive, in payment of goods already sent to foreign markets. The point of safety would be marked by a turn in the exchanges, and they refused to make a loan even to Government, in May 1783. It was not till the following October that the favourable signs appeared, and that they felt justified, with regard to their own safety, in extending their issues, by lending to the Government. Ten years later, with continued peace, there had been but the a great expansion of trading and there were premonitory of rade in symptoms of disaster. The period might perhaps have been Tio iided over but for the outbreak of the Revolutionary War®, Almost immediately afterwards a great firm of corn . Macleod, op. eit. 1. 504. 2 Ib. mm. 215, 8 Id. 1. 507. \ Tb. 1. 508. 5 See below, p. 674. 29.9

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