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Banking as an Emerging Technology: Hoares Bank 1702-1742

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  • Peter Temin
  • Hans-Joachim Voth
Abstract
Analysis of the financial revolution in England has often focused on changes in public debt management and the interest rates paid by the state. Much less is known about the evolution of the financial system providing credit to individual borrowers. We document the transition from goldsmith to banker in the case of Richard Hoare, and examine the operation of the loan market during the early eighteenth century. Learning how to use the relatively new technology of deposit banking was crucial for the bank's success and survival. Innovation during the early stages of the British Industrial Revolution was not limited to manufacturing and transport, but played a critical role also in the service sector.

Suggested Citation

  • Peter Temin & Hans-Joachim Voth, 2003. "Banking as an Emerging Technology: Hoares Bank 1702-1742," Working Papers 93, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:93
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    References listed on IDEAS

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    Cited by:

    1. Hoffman, Philip T. & Postel-Vinay, Gilles & Rosenthal, Jean-Laurent, 2015. "Entry, information, and financial development: A century of competition between French banks and notaries," Explorations in Economic History, Elsevier, vol. 55(C), pages 39-57.
    2. Temin, Peter & Voth, Hans-Joachim, 2004. "Financial Repression in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714," CEPR Discussion Papers 4452, C.E.P.R. Discussion Papers.
    3. Wan, Junmin, 2024. "Bubble occurrence and landing," Journal of Financial Stability, Elsevier, vol. 70(C).
    4. Peter Temin & Hans‐Joachim Voth, 2008. "Interest Rate Restrictions in a Natural Experiment: Loan Allocation and the Change in the Usury Laws in 1714," Economic Journal, Royal Economic Society, vol. 118(528), pages 743-758, April.
    5. Temin, Peter & Voth, Hans-Joachim, 2005. "Credit rationing and crowding out during the industrial revolution: evidence from Hoare's Bank, 1702-1862," Explorations in Economic History, Elsevier, vol. 42(3), pages 325-348, July.
    6. Colvin, Christopher L., 2015. "The past, present and future of banking history," QUCEH Working Paper Series 15-05, Queen's University Belfast, Queen's University Centre for Economic History.
    7. Peter Temin & Hans-Joachim Voth, 2004. "Riding the South Sea Bubble," American Economic Review, American Economic Association, vol. 94(5), pages 1654-1668, December.
    8. Voth, Joachim, 2005. "Credit Rationing and Crowding Out During the Industrial Revolution," Department of Economics, Working Paper Series qt4qw3v8q6, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    9. Peter Temin & Hans-Joachim Voth, 0000. "The Speed of the Financial Revolution: Evidence from Hoare's Bank," Working Papers 212, Barcelona School of Economics.
    10. Patrick K. O’Brien & Nuno Palma, 2019. "Danger To The Old Lady Of Threadneedle Street? The Bank Restriction Act And The Regime Shift To Paper Money, 1797-18211," Working Papers 0082, Utrecht University, Centre for Global Economic History.
    11. Gary B. Gorton, 2016. "The History and Economics of Safe Assets," NBER Working Papers 22210, National Bureau of Economic Research, Inc.
    12. Stephen F. Quinn & William Roberds, 2008. "The evolution of the check as a means of payment: a historical survey," Economic Review, Federal Reserve Bank of Atlanta, vol. 93(4).
    13. Schwarzberg, Raphaelle, 2010. "Becoming a London goldsmith in the seventeenth century: social capital and mobility of apprentices and masters of the guild," Economic History Working Papers 28446, London School of Economics and Political Science, Department of Economic History.
    14. Peter Temin & Joachim Voth, 2005. "Private borrowing during the financial revolution: Hoare’s Bank and its customers, 1702-1724," Economics Working Papers 860, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    Keywords

    Banking and credit; english industrial revolution; interest rate determination; credit rationing; technological change and learning;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N83 - Economic History - - Micro-Business History - - - Europe: Pre-1913
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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