A Note on the English Capital Market as a Source of Funds for Home Investment before 1914
Bibliographic Data
| ID | 9722681 |
|---|---|
| Authors | A R Hall (corresponding author) |
| Year | 1957 |
| Volume | 24 |
| Issue | 93 |
| Pages | 59 |
| Publication date | 1957-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2551628 |
| OpenAlex | W2330410330 |
| Language | EN |
| Citations received | 4 |
It is generally believed that the London new issue market in the years before 1914 was relatively unimportant as a source of funds for home investment. Tbus Cairncross remarks that The London Stock Exchange was of minor importance [for home investment] except for issues by the British government, corporations and existing companies, particularly railways ,' and Paish comments on ' the small scale of the new issue market in home securities 2 That this view is so widely accepted is no doubt a tribute to the lasting qualities of Lavington's survey of the English capital market which, after more than a generation, is still required reading for students in this field, for it is to his analysis of the new issue market in the years immediately preceding 1914 that most subsequent writers have turned when considering this question.3 It is true, of course, that the above description of the role of the London miarket for home issues applies to the particular period with which Lavington was almost wholly concerned, especially to the years 1911-3, which provide the statistical data to illustrate his argument. If, however, Lavington had been writing a decade or so earlier and had used, for instance, data relating to the years 1896-8, he would have come to quite different conclusions about the relative importance of home and foreign issues and about the volume of funds flowing through the home new issue market. This, of course, is hardly a strong criticism of Lavington himself, who was concerned to examine the market at a particular period of time. The way in which his generalisations have been applied by later writers to the pre-1914 capital market is, however, a reflection on their historical sense. In particular, since the publication of Cairncross's study of the long-term inverse movements of home and foreign investment there has been little excuse for the application of Lavington's view of the market to the whole of the period from say 1870 to 1914. While the London market was by no means perfect, it was not so imperfect that it did not reflect quite significantly these underlying major flows of real investment. Indeed, it would have been quite surprising if it had not reflected them, particularly in the middle 1870's and for most of the
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| Unique citing works | 4 |
|---|---|
| Citations per year | 0,06 |
| Citation span | 1961 - 2014 (54) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |