4- banking and insurance Flashcards
what was the putting out system
work done from home
typically done by the whole family together
What helped the boom in the cloth industry
international markets
exports went from £600k in 1560s to £1.5 mil just from londn in 1660s
What percentage of exports from london were cloth trade in 1640
92
74 in 1660
What were the different regions of making cloth
lancashire - weaving coarse cloth not for wearing
west country - broadcloths to be sent to the low countries
easta anglia, yorkshire, midlands
What was often a success of the cloth trade
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
Why did this domestic system carry out through the 17th century
it was easy to hire and let go of labour with the flow of the market
skills were familar to peasants
What advantages did the trade have to the fact it was based in the home
allowed free of tax and regulations that industries faced
why did the cloth trade include the low countries
England didnt posses the skills to finish and dye the cloth
was shipped to holland to finish and sell on
Why did the system of sending cloth to holland stop
the creation of new draperies
what was the appeal of new draperies
they were a lighter cloth becoming more popular and stopped the long process of sending cloth to holland to be finished
where was the cloth trade mainly based
norwich
colchester
east anglia
what made those areas appealing for the cloth trade
they had strong trading links with the Netherlands
Why were there dutch immigrants in England for the cloth trade
they were protestants getting away from a catholic rule in dutch hapsburg
with thier immigratioin they brought thier skills
Why were the dutch immigrants resented at first
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
How was the immigration of the dutch eventually a positive
Their techniques were passed on
the natives could be trained in the continental methods
How was employment effected in Colchester
26.4% in 1619
40% in 1699
What was the key achievement of the dutch in east anglia
the worsted draperies
what were the worsted draperies
cloth wove from wool not carded
wool brushed between two paddles required higher level of skill
What was the appeal of the worsted draperies
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
Why did the french Huguenots immigrate to England
Protestantism was banned in France so they fled the country to England
What were the benefits of the huguenots in england
they were experienced skilled craftsmen, silversmiths watchmakers and weavers
When did London become the largest city in western Europe
mid 17th century popl. of 400k
by 1700 575k popl.
What helped london grown as an economy
banking and insurance
centre of the legal system
transport
opportunities
number of markets
What caused the shifts towards londons economy
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
What was Money scrivening
someone who lends moeny on behalf of others
offered protected loans to feul economic expansion
Who was a famous money scrivener
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
Why were bills of exchange popular
meant that they would get intrest on payments
get more money thean the value of the goods
When did intrest rates fall
how much by
1624-51 was 10%
fell to 8% after 1651
why was the drop in intrest rates good for the economy
it made borrowing money look more attractive
brokers were needed to gain credit
how was their position strengthened
they were able to create networks extending their contacts
especially in London
Who were gold smith bankers
people who used thier reputation to give out short term loans
they would take money to melt it down to gold
what were the numbers of goldsmith bankers
32 bankers in 1670
44 bankers in 1677
why was the intrest rate so low for goldsmith bankers
6%
they were seen as trustworthy
What was the appeal to the low intrest rates of goldsmith bankers
it encouraged smaller businesses to take out loans
allowed more people to enter the economy
Why can banking in london be a limited reason to the economy of England
Mainly only from large companies
smaller businesses couldn’t take out loans so didnt require banking facilities
Why did insurance help the economy
made easy profits
may also take loan from bank to pay for insurance
monay need in the first place however
Where was insurance needed
Ships - pirates and traded goods
Fire - fire in of london
boost in insurance 4k houses by 1683 from NIcholas Barbon
What was the significance of marine insurance
fell by 75%
promotes economic growth
made overseas trade and expansion look more appealing
What was created to help insurance in 1601
assurance court
to deal with insurance matters
Why did people not like marine insurance
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
