A New Book on Anglo-American Trade and Finance: A Review

Abstract

One of the most striking features of the 19th century was the development of a form of international economy that brought the impressive increases in commerce, prosperity, and standards of living characteristic of that era, and which as a result of two World Wars has so largely disappeared. It was an economy marked, among other things, by the evolution of central banks, the gold standard, the dominant financial position of the London money market, a belief in the sanctity of contracts, expanding markets for both raw materials and manufactured goods, opportunities for large profits, and private business concerns whose credit was often higher than that of the governments to which they owed allegiance. This economic system was also subject to business cycles, periodic unemployment, and fluctuating prices; but these aspects of its operations seem not to have affected men's thinking at the time in so influential a manner as has subsequently been the case. Among the business characters that both contributed to and profited from this stimulating environment was the merchant banker or, as he subsequently became, the investment banker and international financier. Dr. Hidy has taken as a subject for study the history of the Barings, one of the most illustrious of the international banking families, during the period 1763-1861, the century that elapsed between the Seven Years' War and the American Civil War. During a considerable part of this period the Barings were recognized in London as the chief of the "American houses," and it is entirely proper that Dr. Hidy's attention should be focused chiefly on the American business of the Barings, more especially since his main source of information was the Baring Papers in the Canadian Public Archives. Basically the approach employed by Dr. Hidy is that of a chronological account of a very large number of financing operations undertaken by the Barings. In order that these annals may be seen in