The Bank of England had a monopoly on
issuing notes in the London area. Country banks arose and issued
bearer notes payable on demand and interest-bearing notes in their
areas. The Bank of England gave to its depositors the service of
paying annually to a designee without further order.
A decision of the common law courts held that bills of exchange
(written orders to pay a given a sum on a given date) were
transferable to other people by successive endorsements. So long
distance payments no longer had to be made in coin, with all the
dangers of highway robbery.
The financial revolution of the 1690s meant that the merchant
elite could invest in government bonds or company bonds at 5-6%,
or London leases at 10%, as opposed to income from landed estates,
which was under 3%. Shareholders were no longer personally liable
for company losses. Interest on loans was no longer considered
sinful as long as it was not oppressive. The greater ability to
borrow spurred the growth of capitalism.
All brokers and stock jobbers in London and Westminster of bank
stock, bank bills, shares and interests in joint stock must be
licensed by the mayor, which shall necessitate their taking an
oath to exercise their office without fraud or collusion to the
best of his skill and knowledge as of 1697. This is to avoid the
collusion of fixing values to their own advantage.
The science of statistics made life insurance possible.
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