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Herman Albert, Geschichtliche Entwickelung des Zinsfusses in Deutschland, 1895-1908 Leipzig 1910 , p. 36. Averages 1910-1913, 1924-1930, 1926-1934, compiled by the National Bureau of Economic Research from various published sources. Deutsche Bundesbank publications. IMF, International Financial Statistics. OECD, Financial Statistics Monthly. state of the market and the currency. A 9.97 average and a high of 20 is computed for 1924, the first year of stabilization. After a dip in 1924,...

Detailed History Of Longterm British Government Bond Yields

During the sixteen years before World War I broke out, English bond yields rose most of the time. By 1907 consols yielded more than 3 for the first time since 1888. This represented a peacetime price decline of 29 , or almost half of the total decline from the highs of 1897 to the lows of 1920. By 1912, consols were down to 7212, to yield 3.45 , a yield that had not been much exceeded since 1848, and was well above the decennial average yields of seven of the decades of the nineteenth century....

General Background

In England the nineteenth century was one of rapid economic growth, of hard money, and of declining interest rates. The Industrial Revolution ran its full course. Railroads and factories transformed the economy, and the population quadrupled. Commerce increased fourteenfold. 424 Specie payments were resumed soon after the end of the Napoleonic Wars, and the gold value of the pound was maintained throughout the century. Commodity prices ended the century far below their high wartime levels at...

Annuities The Census

In the Middle Ages the census was a normal form of investment in land and a regular instrument of state credit. 156 Farmers, nobles, and states sold a census secured by their lands, monopolies, and tax receipts this was usually licit, rarely considered usury, and very extensive. A census was an obligation to pay an annual return from fruitful property. 157 These contracts somewhat resembled the modern annuity, by which term the census is usually rendered, and also resembled the modern mortgage....

The Bill Of Exchange

As early as the twelfth century, and probably much earlier, the remittance of foreign exchange was combined with credit. In Genoa, for example, foreign exchange was bought or sold, payable at the next Champagne Fair. These great fairs, held several times a year, which brought together importers and exporters from all over Europe, were at times largely financed by Italian bankers. A standard bill of exchange for foreign remittance was developed and became a common instrument of credit in the...

Background The Republic

The Romans were a nation of farmers and soldiers. They left manufacture, commerce, and banking largely to foreigners. Cato said In preference to farming one might seek gain by commerce on the seas, were it not so perilous, and in money lending, if it were honorable. . . . How much worse the money lender was considered by our forefathers than the thief. . . . Nevertheless, Plutarch says that Cato himself invested in mercantile loans, probably secretly. This attitude probably explains why so few...

Greek Interest Rates

Although there were many forms of credit in classical Greece, a precise classification of interest rates according to the term or form of loan or according to the type of debtor or creditor is often impossible. More often than not historians quote an Athenian interest rate as the prevailing rate on normal safe loans or as the customary interest rate. Ranges of rates are often quoted by centuries. These vagaries are probably not due to errors of omission but rather are a consequence of the...