The Global Securities Market: A History

By Ranald C. Michie | Go to book overview

2
Advances and Setbacks: 1720–1815

PROGRESS IN THE EIGHTEENTH CENTURY, 1720–89

During the eighteenth century the global securities market grew in size and importance, with stock exchanges being established in several major European financial centres and in the 1780s extending overseas to the newly independent United States. The basis of this market remained government debt created for military purposes, whether for the incessant conflicts within Europe or the expenses incurred in gaining independence from colonial masters, as in the case of the United States. These debts were increasingly organized in a transferable form suitable for trading in the securities markets. Governments were also more conscious of the need to maintain the confidence of investors and mostly refrained from cancelling their borrowings unilaterally or failing to make interest payments when they fell due. Such was the growing belief in the guaranteed nature of government debt that it also attracted more distant investors. Amsterdam emerged as the centre of a global market for government debt used by both borrowers and investors from across Europe and later the United States. In contrast, the eighteenth century was not a period when joint-stock companies flourished once the excesses of the speculative bubble of 1719–20 was over. Only a small nucleus of companies existed whose shares were actively traded and these were more proxies for government debt, such as the Bank of England and the English East India Company. Even in Amsterdam activity centred increasingly on government debt rather than on shares in such as the VOC. Promotion of joint-stock companies was on a local or small scale, generating little by way of a market beyond the confines of a restricted group of investors. After 1720 the fortunes of the eighteenth-century global securities market rose and fell in line with government borrowing and their commitment to servicing their debts.

The speculative bubble of 1719–20 had few long-term implications for Amsterdam, then the world's largest securities market, as it had remained on the fringes of the frenzied buying and selling. That was not the case with Paris, the epicentre of speculation. Once the French government had

-38-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Global Securities Market: A History
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Preface vi
  • List of Tables xi
  • Introduction 1
  • 1: Origins, Trends, and Reversals: 1100–1720 17
  • 2: Advances and Setbacks: 1720–1815 38
  • 3: New Beginnings and New Developments: 1815–50 60
  • 4: Exchanges and Networks: 1850–1900 83
  • 5: The Triumph of the Market: 1900–14 119
  • 6: Crisis, Crash, and Control: 1914–39 155
  • 7: Suppression, Regulation, and Evasion: 1939–70 205
  • 8: A Transatlantic Revolution: 1970–90 253
  • 9: A Worldwide Revolution: Securities Markets from 1990 297
  • Conclusion 333
  • Notes 341
  • Bibliography 376
  • Index 389
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 399

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.