SECTION A2 - Economic developments

• Road System improved and transport systems due to increased demand for goods.

• Previously responsibility of local parishes in poor state

• Roman roads were the exception, passable throughout the year.

• First Turnpike Act was passed in 1665 - allowed creation of new toll roads

• Toll paid by travellers on road, paid for their upkeep

• Invaluable linking major towns.

• Road System improved and transport systems due to increased demand for goods.

• Previously responsibility of local parishes in poor state

• Roman roads were the exception, passable throughout the year.

• First Turnpike Act was passed in 1665 - allowed creation of new toll roads

• Toll paid by travellers on road, paid for their upkeep

• Invaluable linking major towns.

Road System

• Crucial in market development by east and west coast of Britain.

• Coal transported from Newcastle to London

• By the end of the 17th century, Ouse, Severn and Thames used to transport agricultural and manufactured goods.

Water Transport

• Mid 17th century - London became the largest city of Western Europe with a population of around 400,000. By 1700, the population 575,000.

• Success = heart of roads and shipping networks

• London was the economic, political and religious capital of England.

• Eg Legal system - Inns of Court - high profile lawyers went there.

Growth of London

A number of chartered companies whose interest was in trade and exploration.

E.g

East India Company (1600)

Levant Company (1592)

Muscovy (1555)

Chartered companies

• London grew and the rise associated with trade became greater.

• Merchants became aware of their need to insure ships

• Presence of merchants, insurers, bankers, barrister and government civil servants in London led to a growth in employment in services industries

Service Industries

• Essential for development of both British economy and international trade.

• Growth of lending possible due to lowering of interest rates

• Legal limit for interest rates between 1571 and 1624 was 10% lowered to 8% between 1615 and 1714 - more attractive

Banking

• Royal landowners faced disaster in the decade after the civil war commonwealth- consfiscated land and remove capital

• Moved to London to protect assests

• ABBOTS - first money scrivened firm established flourished in 1650, charged fee for his services - £1,137,646 passed through his account

Money Scriveners

• Second half of the 17th Century saw a boom in the success of the gold smith bankers

• Original job was to find and hold precious metals in vaults, then gold

• used to be deposited in royal mint but siezed by Charles I in 1640

• Goldsmiths - safer option and able to charge interest (6% loans)

• Charles in debt to group of goldsmith bankers 1672, reformed banking lowers interest rate

Goldsmith Bankers

• introduced in 1601 in order to regulate - separate insurance court to deal with insurance matters.

• First part of the century, British merchants were reluctant to part with large sums of money to take out insurance.

• British racing against Dutch, more peopple took out insurance as needed to therefore it was cheaper (dropped by 75%).

• London leading marine insurance market in the world.

Marine Insurance

• 1688, Edward Lloyd opened his coffee house in London developed into world’s first insurance market.

• Space for merchants ,shipowners to talk about weather to latest prices of tradeable commodities.

• First coffee house was opened in Oxford in 1650 by a Turkish merchant, many more sprang up in succession.

LLoyd’s of London

• Germany state funded fire insurance in 1688

• Records show a scheme created by Charles I in 1681 and the Friendly Society in 1688.

• Booming market in the 18th century.

Fire insurance