THE GLOBAL EXPORT OF CAPITAL FROM GREAT BRITAIN, 1865-1914
The Global Export of Capital from Great Britain, 1865-1914 A Statistical Survey Irving Stone Professor of Economics and Finance Baruch College City University of New York
First published in Great Britain 1999 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representati ves throughout the world A cata1ogue record for this book is avai1ab1e from the British Library. ISBN 978-1-349-14718-2 ISBN 978-1-349-14716-8 (ebook) DOI 10.1007/978-1-349-14716-8 First pub1ished in the United States of America 1999 by ST. MARTIN'S PRESS, INC., Scholar1y and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 ISBN 978-0-312-21845-4 Library of Congress Cataloging-in-Publication Data Stone, Irving, 1923- The global export of capital from Great Britain, 1865-1914 : a statistical survey I Irving Stone. p. cm. Includes bibliographical references and index. ISBN 978-0-312-21845-4 (cloth) I. Investments, British-Statistics-History-19th century. 2. Investments, British-Statistics -History-20th century. I. Title. HG4538.S76 1998 332'.042-dc21 98-34840 Irving Stone 1999 CIP Softcoverreprint of the bardeover 1st edition 1999 978-0-333-72563-4 All rights reserved. No reproduction, copy or Iransmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or Iransmitted save with wri tten permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. 10 9 8 7 6 5 4 3 08 07 06 05 04 03 02 01 2 I 00 99
To the memory of Daniel Jesse Stone
Contents List of Tables viii Preface and Acknowledgements xi I Summary of Findings 1 Pre-1914 British Foreign Investment: Recipients and Composition 3 2 Pre-1914 British Capital Market and British Capital Exports 6 3 Regional Capital Flows in British Foreign Investment 19 4 British Capital Exports: An Overview 28 II Statistical Tables 1 Major Recipients of British Capital Exports, Annual Data, 1865-1914 41 2 Ranking Tables - Major Recipients of British Capital Exports During Five-year Periods, by Broad Industrial Group, 1865-1914 382 3 Security Composition of British Capital Exports, By Broad Industrial Group, 1865-1914 394 4 Special Summaries 404 Appendices A Original Jenks-Simon Sources B Simon's Methodology Select Bibliography 419 421 428 vii
List of Tables 1 British capital exports, United States, 1865-1914 42 2 British capital exports, Canada, 1865-1914 52 3 British capital exports, Argentina, 1865-1914 62 4 British capital exports, Australia, 1865-1914 72 5 British capital exports, India, 1865-1914 82 6 British capital exports, South Africa (total), 1865-1914 92 7 British capital exports, Brazil, 1865-1914 102 8 British capital exports, Russia (total), 1865-1914 112 9 British capital exports, New Zealand, 1865-1914 122 10 British capital exports, Mexico, 1865-1914 132 11 British capital exports, Japan, 1865-1914 142 12 British capital exports, China, 1865-1914 152 13 British capital exports, Egypt, 1865-1914 162 14 British capital exports, Chile, 1865-1914 172 15 British capital exports, France, 1865-1914 182 16 British capital exports, Rhodesia, 1865-1914 192 17 British capital exports, Turkey (total), 1865-1914 202 18 British capital exports, Italy, 1865-1914 212 19 British capital exports, Austria-Hungary, 1865-1914 222 20 British capital exports, Peru, 1865-1914 232 21 British capital exports, Spain, 1865-1914 242 22 British capital exports, Uruguay, 1865-1914 252 23 British capital exports, Cuba, 1865-1914 262 24 British capital exports, Germany, 1865-1914 272 25 British capital exports, Greece, 1865-1914 282 26 British capital exports, Europe, 1865-1914 292 27 British capital exports, North America, 1865-1914 302 28 British capital exports, South America, 1865-1914 312 29 British capital exports, Africa, 1865-1914 322 30 British capital exports, Asia, 1865-1914 332 31 British capital exports, Latin America, 1865-1914 342 32 British capital exports, Independent Nations, 1865-1914 352 33 British capital exports, British Empire, 1865-1914 362 34 British capital exports, Grand Total, 1865-1914 372 35 Ranked recipients of British capital exports, by broad industrial group, Government-Total, 1865-1914 383 viii
List of Tables IX 36 Ranked recipients of British capital exports, by broad industrial group, Government, Colonial and Provincial, 1865-1914 384 37 Ranked recipients of British capital exports, by broad industrial group, Government, National, 1865-1914 385 38 Ranked recipients of British capital exports, by broad industrial group, Railways- Total, 1865-1914 386 39 Ranked recipients of British capital exports, by broad industrial group, Railways- Foreign, 1865-1914 387 40 Ranked recipients of British capital exports, by broad industrial group, Public Utilities, 1865-1914 388 41 Ranked recipients of British capital exports, by broad industrial group, Financial, 1865-1914 389 42 Ranked recipients of British capital exports, by broad industrial group, Raw Materials, 1865-1914 390 43 Ranked recipients of British capital exports, by broad industrial group, Industrial and Miscellaneous, 1865-1914 391 44 Ranked recipients of British capital exports, by broad industrial group, Private, 1865-1914 392 45 Ranked recipients of British capital exports, by broad industrial group, Grand Total, 1865-1914 393 46 Security composition of British capital exports, by broad industrial group, Government, 1865-1914 395 47 Security composition of British capital exports, by broad industrial group, Railways-Total, 1865-1914 396 48 Security composition of British capital exports, by broad industrial group, Public Utilities, 1865-1914 397 49 Security composition of British capital exports, by broad industrial group, Financial, 1865-1914 399 50 Security composition of British capital exports, by broad industrial group, Raw Materials, 1865-1914 400 51 Security composition of British capital exports, by broad industrial group, Industrial and Miscellaneous, 1865-1914 401 52 Security composition of British capital exports, by broad industrial group, Shipping, 1865-1914 402 53 Security composition of British capital exports, by broad industrial group, Private, 1865-1914 402 54 Security composition of British capital exports, by broad industrial group, Grand Total, 1865-1914 403
X List of Tables 55 Number of countries and colonies participating in the British capital market, by broad industrial group, 1865-1914 405 56 Composition of British capital exports within each fiveyear period, by broad industrial group, 1865-1914 (percentage distribution) 406 57 Major regions of British mining investment, 1865-1914 (percentage distribution) 407 58 British investment in overseas manufacturing, 1865-1914 408 59 Distribution of British overseas capital calls, by continent, 1865-1914 409 60 Industrial composition of British capital calls to each continent, 1865-1914 410 61 Major recipients of British capital exports, ranked, 1865-1914 411 62 Industrial composition of British capital exports to the ten major recipients, 1865-1914 (percentage distribution) 412 63 Distribution of capital calls, by type of security, fifteen major recipients, 1865-1914 413 64 Industrial composition of capital calls by climatic-ethnic region, 1865-1914 (percentage distribution) 414 65 Industrial composition of capital calls within each climatic-ethnic region, 1865-1914 (percentage distribution) 415 66 Distribution of interest rates- debentures, 1865-1914 416 67 Major recipients of British capital exports within the British Empire, 1865-1914 418
Preface and Acknowledgements The study is based upon original data on British capital exports in the form of capital calls made during the 1865-1914 period collected by Leland H. Jenks and Matthew Simon. At a later stage of the research, Simon was assisted by Harvey H. Segal. All three are deceased. Leland H. Jenks is, of course, well known as a pioneer writer on the history of British foreign investment. His scholarship and lucid style were truly distinguished. Matthew Simon, recognized for his work on the United States balance of payments in the nineteenth century, was an expert not only on the balance of payments but had a wide knowledge of the history of British foreign investment. His enormous capacity for work was not diminished by long periods of serious illness. I am deeply indebted to two colleagues at Baruch College for their invaluable assistance. Professor Ashok Vora, whose command of programming for the main frame computer made possible the tabulations necessary for this study. Professor Andrew Lavender has my gratitude for his rigorous editing. I must also express my appreciation to my research assistants for their painstaking assistance: Arlene Sosanie, Mickey W ohl, Alejandra Leon and Albert Murphy. At various stages of the research, the National Science Foundation (award SOC-7813404), the Social Science Research Council, the American Council of Learned Societies and the Research Foundation of the City University of New York provided essential financial support. IRVING STONE xi