Growth Of Banking Flashcards
How many banks were in Britain in 1784?
119
How many banks were in Britain by 1800?
800
What were county banks allowed to do in 1797, and what economic benefits did this provide?
County banks also granted permission to issue bank notes - gave employers an effective method of payment
What was limiting banks growth before 1826?
A cap that prevented banks with more than 6 members to issue bank notes - prevented joint-stock banks
What was the significance of the removal of the cap in 1826?
Banking went from localised to national-scale
Why was this cap removed in 1826?
Industrialisation meant that larger financial institutions were needed to provide full advantage of British business opportunities by giving larger-scale loans etc
What was the first example of a joint-stock bank in 1826?
Lancashire Banking Company
How were joint stock banks given a rather boost in 1833?
Were also granted the right to issue cheques
How many joint stock banks were there by 1866?
154 joint stock banks with 850 branches
What was the major significance of banking for the economy?
Allowed many small scale cottage industries to invest to become larger-scale operations
What industry is an example of benefitting from banking?
Cotton industry - 1761 3 million pounds of cotton imported but by 1833 300 million pounds of cotton imported - expensive so required loans for purchase
What other machinery aided development in the cotton industry?
Arkwright’s Water Frame (1769) and Cromptons spinning mule (1779)
What 2 machines can be seen to have the biggest impact on growth in industrialisation?
Newcomen’s steam engine (1712) helped factories and Spinning Jenny (1770) helped textile industry
How was banking able to unite rich rural dwellers with urban industry?
Investment on railway helped transport, and in infrastructure which also helped industrialisation
How were the richer upper class able to benefit from the growth of banking?
Many invested into new developments, which aided them as their wealth improved and urban dwellers. Also could move assets around easily
