4- banking and insurance

Question 1

what was the putting out system

Answer 1

work done from home
typically done by the whole family together

Question 2

What helped the boom in the cloth industry

Answer 2

international markets
exports went from £600k in 1560s to £1.5 mil just from londn in 1660s

Question 3

What percentage of exports from london were cloth trade in 1640

Answer 3

92
74 in 1660

Question 4

What were the different regions of making cloth

Answer 4

lancashire - weaving coarse cloth not for wearing
west country - broadcloths to be sent to the low countries
easta anglia, yorkshire, midlands

Question 5

What was often a success of the cloth trade

Answer 5

Merchants
would purchase the wool and hire weavers for the putting out system
they would make large profits often enough letting them marry into the gentry

Question 6

Why did this domestic system carry out through the 17th century

Answer 6

it was easy to hire and let go of labour with the flow of the market
skills were familar to peasants

Question 7

What advantages did the trade have to the fact it was based in the home

Answer 7

allowed free of tax and regulations that industries faced

Question 8

why did the cloth trade include the low countries

Answer 8

England didnt posses the skills to finish and dye the cloth
was shipped to holland to finish and sell on

Question 9

Why did the system of sending cloth to holland stop

Answer 9

the creation of new draperies

Question 10

what was the appeal of new draperies

Answer 10

they were a lighter cloth becoming more popular and stopped the long process of sending cloth to holland to be finished

Question 11

where was the cloth trade mainly based

Answer 11

norwich
colchester
east anglia

Question 12

what made those areas appealing for the cloth trade

Answer 12

they had strong trading links with the Netherlands

Question 13

Why were there dutch immigrants in England for the cloth trade

Answer 13

they were protestants getting away from a catholic rule in dutch hapsburg
with thier immigratioin they brought thier skills

Question 14

Why were the dutch immigrants resented at first

Answer 14

they had privilege in inspecting the cloth and making sure it was up to standard in which they were then able to put their stamp on it

Question 15

How was the immigration of the dutch eventually a positive

Answer 15

Their techniques were passed on
the natives could be trained in the continental methods

Question 16

How was employment effected in Colchester

Answer 16

26.4% in 1619
40% in 1699

Question 17

What was the key achievement of the dutch in east anglia

Answer 17

the worsted draperies

Question 18

what were the worsted draperies

Answer 18

cloth wove from wool not carded
wool brushed between two paddles required higher level of skill

Question 19

What was the appeal of the worsted draperies

Answer 19

versatile and cheap
appealed to a wider market than old trad. wares
expanded market
reputation of the immigrants expanded to the area so consistant business

Question 20

Why did the french Huguenots immigrate to England

Answer 20

Protestantism was banned in France so they fled the country to England

Question 21

What were the benefits of the huguenots in england

Answer 21

they were experienced skilled craftsmen, silversmiths watchmakers and weavers

Question 22

When did London become the largest city in western Europe

Answer 22

mid 17th century popl. of 400k
by 1700 575k popl.

Question 23

What helped london grown as an economy

Answer 23

banking and insurance
centre of the legal system
transport
opportunities
number of markets

Question 24

What caused the shifts towards londons economy

Answer 24

stimulated agricultural trade, therefore river trade
banking finance, secure dominance
goods pass through London’s docks for redirection
costal trade grew form 400-1400 ships in C17
growth in banking creates a new class of entrepentuers

Question 25

What was Money scrivening

Answer 25

someone who lends moeny on behalf of others
offered protected loans to feul economic expansion

Question 26

Who was a famous money scrivener

Answer 26

Robert Abbot - saw £1.3 mil go through accounts in 3 years 1652-53
taken over by his nephew
Robert Clayton - recived £3,515 per year on intrest

Question 27

Why were bills of exchange popular

Answer 27

meant that they would get intrest on payments
get more money thean the value of the goods

Question 28

When did intrest rates fall
how much by

Answer 28

1624-51 was 10%
fell to 8% after 1651

Question 29

why was the drop in intrest rates good for the economy

Answer 29

it made borrowing money look more attractive

Question 30

brokers were needed to gain credit
how was their position strengthened

Answer 30

they were able to create networks extending their contacts
especially in London

Question 31

Who were gold smith bankers

Answer 31

people who used thier reputation to give out short term loans
they would take money to melt it down to gold

Question 32

what were the numbers of goldsmith bankers

Answer 32

32 bankers in 1670
44 bankers in 1677

Question 33

why was the intrest rate so low for goldsmith bankers

Answer 33

6%
they were seen as trustworthy

Question 34

What was the appeal to the low intrest rates of goldsmith bankers

Answer 34

it encouraged smaller businesses to take out loans
allowed more people to enter the economy

Question 35

Why can banking in london be a limited reason to the economy of England

Answer 35

Mainly only from large companies
smaller businesses couldn’t take out loans so didnt require banking facilities

Question 36

Why did insurance help the economy

Answer 36

made easy profits
may also take loan from bank to pay for insurance
monay need in the first place however

Question 37

Where was insurance needed

Answer 37

Ships - pirates and traded goods
Fire - fire in of london
boost in insurance 4k houses by 1683 from NIcholas Barbon

Question 38

What was the significance of marine insurance

Answer 38

fell by 75%
promotes economic growth
made overseas trade and expansion look more appealing

Question 39

What was created to help insurance in 1601

Answer 39

assurance court
to deal with insurance matters

Question 40

Why did people not like marine insurance

Answer 40

somtimes the cost of it would cost half the price of the goods being insured
people would just take the risk
holland would get insured from english brokers