Financial Crises in Eighteenth-Century England

Julian Hoppit

The Economic History Review

New Series, Vol. 39, No. 1 (Feb., 1986), pp. 39-58

Published by: Wiley on behalf of the Economic History Society

DOI: 10.2307/2596100

https://www.jstor.org/stable/2596100

Page Count: 20

Abstract

Some confusion surrounds the dating and importance of financial crises in eighteenth-century England. By looking at the pattern of bankruptcy much of this confusion can be cleared up. Crises in public finance created few bankrupts and affected the economy less than did crises in private finance. The novelty, speculation and political uncertainty that created crises in public finance all became less significant factors in the second half of the century. But in the last third of the century the more intensive and extensive use of trade credit, along with stronger speculative tendencies encouraged by economic growth, were powerful forces creating crises of private finance. The pattern of financial crises demonstrates changing uses of finance and changing in the strength of financial ties within the domestic economy during early industrialization. It also shows how erratic and uncertain the growth process seemed at the time.

The Economic History Review © 1986 Economic History Society