Evolving Financial Markets and International Capital Flows: Britain, the Americas, and Australia, 1865-1914

By Lance E. Davis; Robert E. Gallman | Go to book overview

CHAPTER 8
Skipping ahead: The evolution of the world's
finance markets 1914–1990 — A brief sketch

8–1. Introduction

When World War I broke out, Britain and the four frontier countries were among the richest in the world. Britain was the most fully developed, had the best articulated and most comprehensive set of financial intermediaries, and was the world's leading creditor. Per capita income was at least as high in the United States as in Britain, and the American economy was very much the larger — in fact, the largest in the world. The financial system was also well developed; American savings had begun to exceed domestic investment requirements; and the United States had taken up the role of an international lender. Canada had experienced an exceptionally high rate of growth in the two decades before the war, a rate sustained by an unusually large Canadian capacity (and willingness) to save and invest, and by a steady inflow of foreign capital. The Canadian economy was much smaller than the American, but per capita income was gaining on that of the United States. The banking system was strong; the securities markets were small, but effective and growing; and in other respects the system of intermediation was gaining in depth and strength. These countries seemed set on a course of successful modern economic growth.

The prospects of the other two were more problematical. Australia, with abundant resources and a small modern population, may well have been the richest country in the world in 1870, and, perhaps in 1890, if richness is measured by per capita aggregate product of the population of European origin. By 1913, however, as a result of a pace of growth slower than those exhibited by the other four and of the very damaging effects of the crisis of the early 1890s, Australia, while still rich, had lost much of the advantage it had held in 1870. More troubling, financial intermediation was not well developed; and the principal private financial institutions — commercial and mortgage banks — had suffered very damaging blows in the 1890s, blows with enduring consequences. English lenders, severely hurt in the Australian financial collapse, were reluctant to resume lending to the private sector.

-839-

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.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

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
Evolving Financial Markets and International Capital Flows: Britain, the Americas, and Australia, 1865-1914
Table of contents

Table of contents

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?

Help
Full screen
/ 986

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access 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

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.