The Impact Of Industrialisation: BANKING

Question 1

How many banks were established by the 1800’s

Answer 1

In 1784, then Bank of England had established 119 banks in the country but by 1800 this number had expanded to 800

Question 2

How did banking work in the 18th century

Answer 2

People would deposit their gold with goldsmiths in return for receipts or cheques which made it more secure to borrow funds etc. This development helped the economy grown since it made transactions easier and safer.

Question 3

When could country banks issue banks notes and how did it help

Answer 3

1797 which gave employers an effective way of paying wages from a central fund

Question 4

When was the cap removed that prevented joint stock banks and why?

Answer 4

1826- expanding industrialisation demonstrated the need for Larger financial institutions to take advantage of business opportunities

Question 5

When was the first joint stock bank and what was it called

Answer 5

1826- Lancashire Banking Company

Question 6

How many joint stock banks by 1866

Answer 6

155 with 850 branches which provided a source of capital for entrepreneurs e.g Richard Arkwright’s water frame 1769