Book contents
- Frontmatter
- Contents
- List of tables and charts
- Preface
- Abbreviations
- Introduction
- 1 Industrial development in the Austro-Hungarian Monarchy 1873–1914
- 2 Industrialization in the Czech Lands
- 3 Evolution of the financial structure
- 4 The relationship of banks to industry: the Viennese Great Banks
- 5 The relationship of banks to industry: the Czech banks
- 6 Sources of industrial credit
- 7 The role of the banks
- Appendixes
- Notes
- Select bibliography
- Index
4 - The relationship of banks to industry: the Viennese Great Banks
Published online by Cambridge University Press: 05 January 2012
- Frontmatter
- Contents
- List of tables and charts
- Preface
- Abbreviations
- Introduction
- 1 Industrial development in the Austro-Hungarian Monarchy 1873–1914
- 2 Industrialization in the Czech Lands
- 3 Evolution of the financial structure
- 4 The relationship of banks to industry: the Viennese Great Banks
- 5 The relationship of banks to industry: the Czech banks
- 6 Sources of industrial credit
- 7 The role of the banks
- Appendixes
- Notes
- Select bibliography
- Index
Summary
The purpose of the next two chapters is to take a closer look at the relationship of financial institutions to individual branches and firms, particularly in the period after 1873. The present chapter deals primarily with the activities of the Vienna-centered banks, while chapter 5 deals with banks located within the Czech Lands. Before going into a micro-level examination, however, it is useful to take a brief overview of the major currents in bank-industry relations throughout the nineteenth and early twentieth century.
From such a macro-economic or macro-historical viewpoint, there were four major periods in the development of the relationship between banks and industry:
1800–53
In this period the capital market was dominated by the National Bank and a few private banking houses. As indicated in the preceding chapter, these banks had little to do with industry. At the same time the capital market as a whole was poorly developed. While in some instances credit was granted by the large banks to aristocrats involved with mining or manufacture on their own lands, both short and long-term credit remained outside the reach of almost all small manufacturers. In several cases the government sought in vain to procure assistance from the banks for a projected joint stock steam engine company, and finally was itself forced to intercede with financial aid. Prior to the 1850s there was little industrial promotion; the few joint stock firms of this period were usually formed by families, or by small groups of business associates, rather than through shares placed upon the market.
- Type
- Chapter
- Information
- Banking and Industrialization in Austria-HungaryThe Role of Banks in the Industrialization of the Czech Crownlands, 1873–1914, pp. 91 - 121Publisher: Cambridge University PressPrint publication year: 1976