The conservative response to change 1832-46: Trade and business reform Flashcards
What is a joint stock company?
A company with a stated purpose (usually making money); capital is raised and divided into units held by different shareholders
What did the select committee on joint stock companies report in 1844?
‘For years the world had been at the mercy of anyone who chose to publish an advertisement, call himself a company and receive money for assurances and annuities
Describe the poor financial system at the time
There were few controls to limit fraudulent practise or to curb risky speculation of investors money. There was an absence of proper accounting, too
What did the 1844 Joint Stock Companies Act introduce?
Measures to regulate company finance
What were these measures?
A salaried registrar of companies was set up and it became obligatory for any company with more than 25 members and transferable shares to be on the new Companies’ Register. Every company had to produce regularly audited balance sheets
Evaluate the success of the act
It did not wipe out all the malpractise but it was an important step in the right direction
Why was the act not comprehensive?
Companies formed by special acts of parliament were exempted from the act (e.g. railway companies), which was experiencing a boom at the time, with the company directors making large fortunes. Determined attempts by Gladstone as president of the board of trade to bring in legislation to control these companies were rebuffed
Why were the railway companies exempted in this fashion?
There were strong vested interests in parliament; the majority of MPs held shares in railway companies and 90 were company directors
Where had Gladstone already had previous success in regulating the railway companies?
1840 legislation set up the Board of Trade Railway Department allowed for the inspection of railways by paid officials
Describe the problems Peel faced in terms of trade?
There was a slump in trade, exports fell sharply, causing a recession in industry
What did Peel’s financial reforms do?
Revived trade and industry
How did Peel’s financial reforms improve things?
The removal of duties from raw materials gave factories and businesses a kick start and the reduction of export duties got trade moving again. As unemployment fell and food got cheaper, Britain was on the road to a better standard of living for most of the population
What does Evans say is similar about Pitt and Peel?
They bot got things done
What does Evans say about Peel’s legislative record?
That it is second to none in 19th century politics
How was Peel able to dominate the commons according to Evans?
Through natural oratory and certainly not by flattery. He just knew more about the subject under discussion than almost anyone else in the house
