Skip to main content Accessibility help
×
Hostname: page-component-5c6d5d7d68-wpx84 Total loading time: 0 Render date: 2024-08-18T00:32:10.793Z Has data issue: false hasContentIssue false

2 - Was there a capital shortage in the first half of the nineteenth century in Germany?

Published online by Cambridge University Press:  10 December 2009

Get access

Summary

Among the answers to the question as to why Germany's economic development until the middle of the nineteenth century remained so strikingly behind that of England, the argument that capital for industrialisation was lacking has played a comparatively major role for a long time. It has only occasionally been challenged, and then rather in passing. Certainly the sources themselves, and above all the records of companies, suggest a certain bias in this direction. Naturally we hear more of complaints about the lack of capital than about the opposite. But it will be demonstrated below that this thesis is not self-evidently correct, and that there are good grounds for examining it rather more precisely, and on the whole for relativising it.

When one reads of a ‘lack of capital’ we must appreciate that many different things can be meant. Here lies a source of great misunderstanding, because many authors do not clearly explain what they mean. By a lack of capital (or of finance) we can understand either

  1. (a) an inadequate flow of purchasing power, or

  2. (b) an inadequate stock of capital.

Depending on which flow is observed, judgements can be made in respect of the size of

  1. (1) the collective savings of an economic system,

  2. (2) the collective supply of investible funds, or

  3. (3) the credit supply in a specified period.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 1991

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×