1.2 The Impact of Industrialisation in Britain Flashcards
When was the Bank of England established?
1694
How many banks were there by 1784?
119 excluding London
Why was a secure financial basis fundamental to industrial development?
it allowed capital to be available to fund business ventures and the start up and running costs
How many banks were there by 1808?
800
Who were the first recognised bankers in Britain?
Goldsmiths
What happened to the Royal Mint?
- people lost faith in the Royal Mint after Charles I stole from it in 1640
- as a result people began to deposit their gold with the smiths in return for receipts or bills of exchange -the beginning of paper currency
How did the Goldsmiths help the economy to grow?
-people looked towards the Goldsmith to secure deposits and a means to borrow funds and this helped the economy to grow because it made financial transactions much easier and safer which resulted in new businesses accessing funds more effectively so that they could become better established
Outside of London, how was transactions made?
Instituions accepted deposits and money would be moved from one account to another instead of withdrawing money which offered a safe and efficient means of transaction which consequently encouraged further dealings that promoted mutual growth
When were the county banks granted permission to issue bank notes?
1797
How did bank notes aid economic development?
it gave employers an effective way of paying wages from a central fund
