Course:History 344 Nasty Families/Professions/Banking
Banking in Stuart England
The Stuart Age in England represented a large shift in what is considered a financial revolution. This was facilitated by changing views and practical uses of currency linked to new ways in which money lending and banking was handled, particularly in the second half of the Stuart period. The end result of this culminated in the creation of the First Bank of England.[1] What made the financial situation revolutionary during this period was its move from a working class/gentry-controlled institution to a financial class in its own right.
Coinage and Goldsmiths
At the turn of the century, the currency of England was still bulky and coins were an inconvenience, as they were administered more by content of the coins opposed to the face value.[2] Many forms of coinage themselves, whether they had been legitimately minted or not, were considered to be illegal, but were still found in circulation due to ease of trade by comparison to the barter system. This facilitated the rise of goldsmiths as bankers.[3] The rise of goldsmiths as money holders/lenders began to create a paper currency system.[4] While it was mostly goldsmiths who practiced this, the number of goldsmiths was a limiting factor, which left room for those who had the ability to hold and lend money to gain a foot hold in the financial and archaic banking system. These groups often facilitated the creation of an insurance system which skyrocketed during the Stuart period.[5]
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The advantages to a money lending and holding system, and the eventual creation of the First Bank of England, should be noted as a function of the availability of currency. The population of the country was booming, and the distribution of wealth based on content of minted coins was becoming a difficult and dated process to keep track of, while paper currency was convenient so long as the wealth could be backed up. This was a stratified system at the beginning of the century; however, by 1694, with the assimilation of several of the banking institutions/factions, the system became a more regulated and centralized institution.
- ↑ Yian Ye, Richard Wilson, "Commercial development and the evolution of political cultures: Ming/Qing China and 17th Century England" (East Asia 19, 1998), 158.
- ↑ Debra Glassman, “Currency Depreciation in Early Modern England and France” (Explorations in Economic History 25, 1988), 75.
- ↑ Ibid., 75.
- ↑ Ibid., 412
- ↑ Ye, Wilson, 163
BN: Good start. Could now have more info, the topics could be divided into categories/new pages, and what it means for gentlemen.