The Mechanics of the 1720s Schemes for the Reduction of Public Debt in France and England, and the Subsequent Rise of Speculation in Early Equity Markets
The Mechanics of the 1720s Schemes for the Reduction of Public Debt in France and England, and the Subsequent Rise of Speculation in Early Equity Markets
Student Number: 7421133.
This thesis is 8,349 words long, excluding the bibliography.
This thesis is submitted in part fulfilment of the requirement for the degree of Bachelor of Arts in the Honours School of Economics and Economic History at the University of Manchester.
Table of Contents
• Background History: p. 3-4.
• Introduction: p. 5-7.
• Section 1: p. 8-14.
• Section 2: p. 15-23.
• Section 3: p. 24-28.
• Section 4: p. 29-35.
• Conclusion: p. 36.
• Bibliography: p. 37-38.
A brief background history
The many costly wars of Louis XIV and the conflicts over the issue of Spanish succession (1701-1714), dominated the direction of European funds in the latter years of the seventeenth century and the early eighteenth century, leading to the creation of successive amounts of public debt to finance the many campaigns taking place. Throughout this time, a financial revolution would take place, whereby systems that pooled wealth and supplied easy credit would be created; giving rise to a new class of businessmen who would grow rich from lending both to the English and French governments the money to continue their feverish war-mongering. The creation of institutions such as the Bank of England in 1694, and the formation of wealthy banking families and goldsmiths such as the Paris Brothers in France, would surface on the back of the need for credit. Through the issue of all kinds of annuities with different maturity rates, all commanding their own set of interest; both countries would commit themselves to servicing debt, many times struggling to pay off the interest. Much as in the case of modern economies these issues would ultimately
Student Number: 7421133.
This thesis is 8,349 words long, excluding the bibliography.
This thesis is submitted in part fulfilment of the requirement for the degree of Bachelor of Arts in the Honours School of Economics and Economic History at the University of Manchester.
Table of Contents
• Background History: p. 3-4.
• Introduction: p. 5-7.
• Section 1: p. 8-14.
• Section 2: p. 15-23.
• Section 3: p. 24-28.
• Section 4: p. 29-35.
• Conclusion: p. 36.
• Bibliography: p. 37-38.
A brief background history
The many costly wars of Louis XIV and the conflicts over the issue of Spanish succession (1701-1714), dominated the direction of European funds in the latter years of the seventeenth century and the early eighteenth century, leading to the creation of successive amounts of public debt to finance the many campaigns taking place. Throughout this time, a financial revolution would take place, whereby systems that pooled wealth and supplied easy credit would be created; giving rise to a new class of businessmen who would grow rich from lending both to the English and French governments the money to continue their feverish war-mongering. The creation of institutions such as the Bank of England in 1694, and the formation of wealthy banking families and goldsmiths such as the Paris Brothers in France, would surface on the back of the need for credit. Through the issue of all kinds of annuities with different maturity rates, all commanding their own set of interest; both countries would commit themselves to servicing debt, many times struggling to pay off the interest. Much as in the case of modern economies these issues would ultimately