Preliminary Programme

Wed 18 March
    08.30 - 10.30
    11.00 - 13.00
    14.00 - 16.00
    16.30 - 18.30

Thu 19 March
    08.30 - 10.30
    11.00 - 13.00
    14.00 - 16.00
    16.30 - 18.30

Fri 20 March
    08.30 - 10.30
    11.00 - 13.00
    14.00 - 16.00
    16.30 - 18.30

Sat 21 March
    08.30 - 10.30
    11.00 - 13.00
    14.00 - 16.00
    16.00 - 17.00

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Wednesday 18 March 2020 11.00 - 13.00
B-2 ECO11 Early Financial Markets in Europe and Asia
P.N. van Eyckhof 2, 002
Network: Economic History Chair: Christiaan van Bochove
Organizer: Christiaan van Bochove Discussants: -
Tomas de Albuquerque : The Portuguese Financial Market in the Eighteenth Century. The Investment Portfolios of their Investors
Recently, there has been renewed interest in the study of the financial market. Studies on the institutions, role of the state, market products and investors are perfuse. Recent studies such as Carlos, Fletcher and Neal (2015) and Smith (2018) analyse the English India Company’s shareholders’ investment portfolios to further understand ... (Show more)
Recently, there has been renewed interest in the study of the financial market. Studies on the institutions, role of the state, market products and investors are perfuse. Recent studies such as Carlos, Fletcher and Neal (2015) and Smith (2018) analyse the English India Company’s shareholders’ investment portfolios to further understand their composition and weight of each financial product. Carlos et al (2015), concluded there exists an increase of investments on financial products, but the majority of portfolios aren’t diversified. They say that 80% of financial investments are only in the company.
Conversely, financial development is deeply related to the economic growth, and the enforcement of institutions that protect the property rights diminish risk and boost investment. Considering this institutional factors, historians have considered the country’s political constitution and have pointed out parliamentary regimes, for checks and balances on the monarch’s power, developing earlier capital markets.
However, a comparative study of how markets work between countries with different political framework, is still missing. I propose to study the Portuguese case, based on the shareholders of the Portuguese colonial companies in the eighteenth century.
I will focus on the shareholders with ten or more shares, and build their portfolio investments looking at company shares, short time loans and public debt. I intend to understand the composition of these portfolios and how diversified they were. I expect this comparative approach will tell us which were the critical differences between Portugal and other more developed financial markets.
References:
CARLOS, Ann, FLETCHER, Erin & NEAL, Larry, «Share portfolios in the early years of financial capitalism: London, 1690-1730» in Economic History Review, 68, 2, 2015, pp.574-599
SMITH, Edmond, «The global interests of London’s commercial community, 1599-1625: investment in the East India Company», in Economic History Review, 00, 0, 2018, pp.1-29 (Show less)

Íñigo Ena Sanjuán : Municipal Debt and State-formation in the Eighteenth-century Crown of Aragon
After the Treaties of Utrecht and Rastatt, the Spanish monarchy lost most of its European territories. The ancient Crown of Aragon suffered a dramatic dismembering: some territories, namely Aragon, Valencia, Majorca, and Catalonia, continued to belong to the Spanish king, but Naples, Sicily, Sardinia, and Minorca were given to other ... (Show more)
After the Treaties of Utrecht and Rastatt, the Spanish monarchy lost most of its European territories. The ancient Crown of Aragon suffered a dramatic dismembering: some territories, namely Aragon, Valencia, Majorca, and Catalonia, continued to belong to the Spanish king, but Naples, Sicily, Sardinia, and Minorca were given to other European monarchs as a compensation. Immediately after the signing of the peace, rulers changed the political, fiscal, and financial structures of the kingdoms by reforming institutions and implementing new policies; however, what remained in all cases was debt, more concretely that of the municipalities. During the whole 18th century, Southern European monarchies tried to amortise that debt, but the fiscal structure of the municipalities, the type of loans (redeemable annuities), and, more importantly, the attitude of creditors (which were mainly ecclesiastical institutions) and local elites prevented rulers from succeeding.

This almost unknown process, the restructuring of the debt of the municipalities, was a key process in the formation of the states of Southern Catholic Europe. In fact, what I argue is that debt was a major political tool in the hands of creditors and local oligarchies (which were generally the same people or families) to participate in the government of the monarchies. Furthermore, I try to demonstrate that, after its dismemberment, the Crown of Aragon continued to exist through common practices and beliefs which survived, in part, thanks to the persistence of local indebtment.

In this paper, the evolution of the debt of five cities in three different monarchies between 1715 and 1788 is examined. The restructuring agreements, the assemblies of creditors, and the political, fiscal, economic, and social consequences derived from the renegotiation of the municipal debt of the five cases are compared to each other, in an attempt to find parallelisms and differences between them. The paper is mainly based on sources from municipal and ecclesiastical archives, in order to study the same phenomenon from diverse but complementary perspectives. It intends to engage with wider discussions on state-formation and political economy. (Show less)

Jiajia Liu : The Early History of the Financial Capitalism in Shanghai - International Competition and Market Capture in the World Periphery, Late 19th Century to Early 20th Century
This research concerns a historical investigation in the birth and development of the Shanghai stock exchange as a symbol of China's encounter with the Western financial capitalism. Concretely, it focuses on the ways in which the production of price information came to be organized in the center-peripheral network (theoretical framework ... (Show more)
This research concerns a historical investigation in the birth and development of the Shanghai stock exchange as a symbol of China's encounter with the Western financial capitalism. Concretely, it focuses on the ways in which the production of price information came to be organized in the center-peripheral network (theoretical framework in international relations) with the international settlers, the British in particular (together with the French, the Dutch, the Germans, the Americans, the Japanese, etc.). Questions to be addressed are: a) how should the development of the stock exchange be related to the historically unique set of legal arrangements with respect to foreign or international settlements within this Asian 'port city' ? b) in which ways do agreements with respect to the production of prices reflect the international rivalries of that time?

The focus on Shanghai of this research topic is academically significant in multiple ways. First of all, initial financial capitalism in Shanghai is unique in that represents the account of an 'imported' capitalism rather than a reaction to an indigenous demand. Both the birth and the evolution of the stock exchange go hand in hand with the mercantile history of the city, more specifically through the foreign merchants and merchant houses dominating international trade, and this within the intricate legal fabric related to the city's international settlement (in which the stock exchange was located). Secondly, Shanghai, initiated as one of the earliest international trading port after the first Opium War, developed into an international financial center not only for China but also for the whole Asian region. The nature and complexities of the city's mercantile and financial networks with cities in the region have been pointed out before, but have only recently come to be addressed quantitatively. Thirdly, there has been a remarkable absence of literature on this topic both in English and Chinese.

Unlike the positivist approach, in which data is collected in order to corroborate of falsify a hypothesis set at the beginning of the research, this project's method is succinctly inductive. Data gathering (both quantitative and qualitative) and theory-building are no separate undertakings, but are constructed so as to inform each other at all stages of the project. Borrowing from ethnography and related disciplines, the project will attempt to reconstruct the problem consciousness as it existed in the historically contingent setting of the nineteenth century Asian periphery, and as it, so we assume, informed the decision-making with respect to the (organization of the) production of prices.

Given that it was the North China Herald which was given the right to produce prices for Shanghai on a weekly basis after 1904, an important mainstay of the project will be with the role of financial journalism in the production of price sensitive information. In this way, the project connects to a strand in economic historical literature that highlights both the role of microstructures and the importance of judicial arrangements. The collection of a high-frequency (weekly) database for stocks and stock prices during the period of consideration is an important and integral aspect of the research under discussion. (Show less)

Jaco Zuijderduijn : Imprisonment for Public Debt: Merchants, Loan Guarantees, and Reprisals in the Medieval Economy
The paper discusses a common type of security in medieval finance: the community responsibility system, which exposed guarantors to reprisals. Evidence shows the community responsibility system frequently led to reprisals, especially against merchants who were either imprisoned for debt, or had their commodities confiscated. This type of security was mainly ... (Show more)
The paper discusses a common type of security in medieval finance: the community responsibility system, which exposed guarantors to reprisals. Evidence shows the community responsibility system frequently led to reprisals, especially against merchants who were either imprisoned for debt, or had their commodities confiscated. This type of security was mainly used by cities to guarantee loans. Often they did not do this to borrow money the city required itself, but rather to provide the ruler with loan guarantees: travelling citizens acted as collateral, and thus played a crucial role in enabling the ruler to create sovereign debt. Cities’ willingness to provide this financial service for many centuries, while exposing their merchants to reprisals in the process, must be seen in the context of Charles Tilly’s model of an ongoing exchange where cities provided financial services and rulers compensated them with political and economic privileges.
Network: economics

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