British Economic History

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one,is that foreign investments had higher returns than the domestic ones,but there is a dispute here about whether these funds were pushed out because the domestic rates of return were fading or because the rates of return abroad were higher. However,when in 1982 Edelstein examined a sample of 566 home and overseas ,first and second class,equity,preference and debenture securities,he proved that returns from foreign investment were higher. More specifically,for some sub-periods between 1870 and 1913,overseas first and second class investments yielded annually 5.72% while the equivalent percentage for domestic investments was 4.60%.The second reason for investing abroad is represented by J.A. Hobson's work and has to do with the distribution of the national income. What Hobson supports,was that too little of Britain's national income was allocated to wage earners,who did most of the nation's consumption and most of the income was distributed to property owners. ...

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during their first years,with consequent results on the growth rates of British per capita incomes.

In this context of massive capital exports,in order to see if there were sufficient funds from the financial sector for the industries,it would be better to distinguish old well established industries,from the new small and medium sized ones.

Industrial gains from the financial sector

Throughout the period we are looking at,we are seeing greater concentration and amalgamation of the clearing banks. Since these clearing banks,after these amalgamations,had at their disposal a lot of resources that they were dispersed all over the country,one would expect that these massive branches ...

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