Some Comments on the Legacies of British Slave-ownership Database

1 03 2013

A new website dealing with the history of slavery in the British Empire has been created. As you can see from my comments below, I have mixed feelings about it.

First, some background. Legacies of British Slave-ownership is a project led by historians at University College London. It was designed to teach the public about the impact of slave-ownership  on Britain at a crucial time in the country’s economic history. The aim of the project’s creators was to demonstrate to British people that much of the wealth of the country was based on slavery overseas.  

When slavery was abolished in the British Empire in the 1830s, parliament set up a fund to compensate the slave owners. Slave holders had to apply for compensation, of course, and had to provide documentary proof of how many slaves they had lost. The records of their applications have survived. The interesting thing is that many of these slave owners had addresses in the United Kingdom.  Some of these addresses were great country houses. The UCL project involved digitizing the records and placing them online.

I have a few observations about this website.

First, actual scanned images of the relevant primary sources are not available as part of the database. Including these images along with transcribed text of each document would have increased the reader’s sense of immediacy. This has been done with the Jeremy Bentham and Abraham Lincoln papers (see example below) and could easily have been accomplished here.  People like looking at images of the actual primary source. For one thing, it allows them to check whether it has been transcribed accurately. It also draws in the reader’s attention.

Letter from Abraham Lincoln

Second, the creators of the website could have done a better job of linking the places mentioned on the website to existing online maps. For instance, the addresses of some of the absentee slaveholders are country houses that still exist in England. A few are even open to the public.  A link to the relevant address on Google Maps could easily have been inserted. Doing so would have allowed readers to see where in the UK the absentee slaveholders were concentrated or to look for slaveholders in localities of interest to them. It would be nice to able to Google Street View those properties. Such links also might have encouraged people to visit the properties. The overseas plantations mentioned in the documents should have received the same treatments If the creators of the website thought that creating such links were too much work, they could have created a function to crowdsource this task to the public.

Third, the website has few images! Human beings are visual creatures.  Pictures of the slaveholders, their residences, etc., should have been included. The absence of images makes the website look a bit amateurish or at least like something from say, 1999. I know that there are sometimes copyright issues but there are plenty of public domain images of some of the individuals mentioned in the database.

That being said, there is a great deal of value in this website.

My readers in Canada may be particularly interested in the references to absentee slaveholders who were living in Canada when they filed their claims.  See screen grab image below:

Search - Legacies of British Slave-ownership Canada

 

If you type “Canada” into the search engine, you will see a number of references to slaveholders with Canadian addresses who received compensation after 1833. For instance, you will see that James William Johnston, a lawyer and Conservative politician in Nova Scotia, received £514 15S 7d for his losses when the slaves on the Mount Salas estate in St Andrew Parish in Jamaica were freed.

Sir John A. Macdonald, who married a white Jamaican woman in 1867, is also mentioned in the database, although the exact way in which he had a financial interest in slavery isn’t clearly established.





Marc Levinson on Bank Regulation During the American Civil War

28 02 2013

Marc Levinson has published a great post on the Bloomberg Echoes blog about the banking and currency law introduced in the US in 1863 to help finance the Civil War. This law also established the foundations of the modern US banking system, or at least the broad outlines of the system that existed up until 1933.

Here is the key part of Levinson’s blog post:

Many of the regulatory concepts put in place in 1863 are still with us today. But in one important way, the nation’s earliest bank regulations were stricter than today’s. Congress made national bank shareholders doubly liable — if a national bank became unable to repay depositors or other creditors, its shareholders could be forced to ante up the par value of their shares, in addition to the amount they had already invested. Double liability proved a recipe for keeping banks sound. It was discontinued in the 1930s, but the comptroller’s examiners are still paying visits to national banks today.

This is a crucial point. Double liability meant that if a bank failed and went into administration, the bankruptcy court would force shareholders to pay an amount up to the par or nominal value of their stock. In other words, they would lose more than the purchase price of their shares. Double liability also meant that bank shareholders had a strong incentive to monitor the bank’s lending. Under today’s limited liability regime, they have less of an incentive to do so. Needless to say, the owners’ incentive is even stronger under a regime of unlimited liability, which would have allowed creditors to seize the personal assets of the shareholders.

 

Marc Levinson is a great researcher and writer. I enjoyed his two previous books (see above) and am looking forward to hearing him speak in about three weeks at the Business History Conference in Columbus, Ohio.  He will be speaking on “The Financial Crisis of 2008-2013: A Historical Perspective.”





Kristin Hall on Lysol as a Contraceptive

28 02 2013

The current issue of Enterprise and Society features an interesting article by a PhD student at the University of Waterloo.

Kristin Hall, “Selling Sexual Certainty? Advertising Lysol as a Contraceptive in the United States and Canada, 1919–1939”

During the interwar period, Lysol Disinfectant was sold throughout Canada and the United States as a contraceptive douche for women. In fact, Lysol became the leading over-the-counter contraceptive sold on the euphemistically termed “feminine hygiene” market. Though the sale of contraceptives were illegal in both Canada and the United States since the latter part of the nineteenth century, by the 1920s, astute manufacturers were selling goods with supposedly contraceptive properties, including vaginal jellies, foaming tablets, and as was the case with Lysol, vaginal douches. As contemporaries argued, advertising played a central role in the success of the feminine hygiene industry.

Hall is part of a rising generation of North American business/social historians.





Is All Finance Good Finance? What are the Lessons of Antebellum US History?

15 02 2013

Common sense tells us that financial institutions can create value.  There is rigorous academic research demonstrating that the existence of financial institutions has a strongly positive impact on economic growth. It would be hard to run a modern economy without financial institutions.  That finance is, within limits, a good thing, a no-brainer. That being said, there may be a law of diminishing returns to financialization.  In 2009, the head of the Financial Services Authority in the UK said that “some of the financial activities which proliferated over the last ten years were socially useless.” Needless to say, this idea has been robustly contested. The debate continues.

Can historians contribute to this debate?  You bet.  Chris Colvin, an economic historian who works at the Queen’s University Management School in Belfast, has published a review of a recent article by Matthew Jaremski (Colgate University) and Peter Rousseau (Vanderbilt University). The article, “Banks, free banks, and U.S. economic growth” examines the impact of the creation of banks on the economic performance of US counties in the period between 1837 and 1862. During this period, the legal barriers to establishing a bank were quite limited and the number of banks in the US increased dramatically. The authors attempt to determine whether the free banking regime actually helped the economy to develop.  You can read an ungated version of the paper here.

Abstract:

The “Federalist financial revolution” may have jump-started the U.S. economy into modern growth, but the Free Banking System (1837-1862) did not play a direct role in sustaining it. Despite lowering entry barriers and extending banking into developing regions, we find in county-level data that free banks had little or no effect on growth. The result is not just a symptom of the era, as state-chartered banks seem to have strong and positive effects on manufacturing and urbanization.

In an earlier draft of the article, Jaremski and Rousseau wrote:

Even our most optimistic estimates indicate  that a 10% increase in the number of free banks would have increased the growth of manufacturing capital by less than 0.5% per decade, compared to a 3.3% increase in growth for a  10% increase in charter banks. The results lead one to ask if the National Banking Acts of 1863 and 1864 and the 10% tax on state bank notes that followed had significant impacts on economic  development by encouraging the exit of banks that were not growth promoting and replacing them with new banks that were.

In other words, simply expanding the number of banks in a community isn’t going to boost its overall economy. The special tax on banknotes that the federal government imposed during the Civil War appears to have had a positive effect on the real economy by forcing some of the free banks out of business.

The piece by Jaremski and Rousseau will doubtless interest many historians of banking.  I suppose it also speaks to the broader debate about whether the financialization of the economy is necessarily a good thing. At a time when policymakers in many countries are talking about rebalancing the economy away from financial services and towards the production of visible goods, the article provides important food for thought.  This paper may even interest proponents of the Tobin Tax.





Lever Brothers in North America

13 02 2013

Warning: Self-Promotion Alert

The journal Business History has just published an article I wrote: A successful British MNE in the backyard of American big business: Explaining the performance of the American and Canadian subsidiaries of Lever Brothers 1888–1914 See here.

Ad for Sunlight Soap, 1915.

 

By the 1880s, Lever Brothers, an ancestor of today’s Unilever, was had emerged as a major player in the British soap industry. Its brands, such as Sunlight, could be found in all parts of the United Kingdom. The firm then decided to become a multinational. After 1888, Lever Brothers expanded into the United States and Canada. The surviving archival evidence suggests that the Canadian subsidiary was more successful than the American one in the period before 1914 (after that point the US operation became very successful . My article tries to explain why this was the case. It considers a number of factors that help to explain why this was the case. Some of the factors considered, such as differences between the Canadian and American tariffs, Canada’s more robust system of trademark protection, and differences in anti-trust law in the two North American countries. These are all themes very familiar to business historians. I also draw on the literature on identity economics and argues that the greater success enjoyed by Lever Brothers in Canada was, in part, rooted in Canada’s strongly British identity. The impact of identities on the policy makers, managers, and consumers who collectively shaped the two North American subsidiaries is assessed.





Conference on the History of Business and Economic Forecasting

11 02 2013

 

Friday 22 March 2013

University of Reading, Whiteknights, Reading

Forecasts have had a profound impact on economic behaviour. Optimistic forecasts can generate booms, whilst pessimistic forecasts can tip an economy into recession. In the twentieth century forecasting has become big business, with governments, banks and private consultancies all producing regular annual, monthly or even weekly forecasts. Forecasts cover commodity prices, equity prices, interest rates, inflation rates, gross domestic product, and so on.  Forecasts influence the policies of governments, the strategies of firms and the positions taken by speculators.

This conference reviews that growth of the forecasting industry, with special reference to the US and UK. It addresses the philosophical roots of forecasting, the development of practical forecasting methods, the evolution of the commercial market for forecasts, and the impact of forecasting on business consultancy. The conference brings together experts from a range of relevant disciplines, including business and economic history, economics and econometrics and mathematics and statistics.

Whilst there is no charge for attendance at this conference it is recommended that you register early to secure a place. Please contact Amanda Harvey by email a.h.harvey@reading.ac.uk

 Draft Programme

 Registration

  • From 9:30

Session 1 Chair: Professor Peter Scott (Henley Business School, University of Reading)

  • 10.00  Professor Walter Friedman (Harvard Business School) ‘The rise of business forecasting in the United States’

11.00   Coffee

Session 2 Chair: Mr. John Aldrich (Department of Economics, University of Southampton)

  • 11.30  Professor Kerry Patterson (Department of Economics, University of Reading) and Professor Terence C. Mills (School of Business and Economics, University of Loughborough)‘The development of econometric techniques and their influence on economic forecasting in Britain [provisional]
  • 12.15  Professor Mark Wardman (Institute of Transport Studies, University of Leeds) ‘Forecasting railway passenger demand’

1.00 Lunch

Session 3: Chair: Dr. Eileen Magnello (Department of Science and Technology Studies, University College London)

  • 2.00 Professor Marcel Boumans (Faculty of Economics and Business, University of Amsterdam) ‘Model-based expert consensus in economic forecasting’
  • 2.45 Professor Nick Bingham (Department of Mathematics, Imperial College London) ‘The impact of probability and statistical theory on the development of forecasting’ [provisional] 

3.30     Tea

Session 4: Chair: Dr. Lisa Bud-Frierman (Centre for Institutional Performance, University of Reading)

  • 4.00 Dr Christopher McKenna (Said Business School, University of Oxford) and Mr Antonio E. Weiss (Birkbeck College, University of London) ‘Management Consulting and Market for Economic Forecasting’ [provisional]

4.45     General discussion

5.00     Drinks

6.00    Dinner





Journalists’ Failures versus Historians’ Failures

7 02 2013

The quality of US economics journalism has been severely criticized in the blogosphere in the last few days. Brad DeLong has called for the better press corps, using a recent piece by Tom Friedman (of The World Is Flat fame) to illustrate his point. Friedman wrote:  “India has a weak central government but a really strong civil society…. China has a muscular central government but a weak civil society…. Egypt… has a weak government and a very weak civil society…. But there is one thing all three have in common: gigantic youth bulges under the age of 30, increasingly connected by technology but very unevenly educated.”

Friedman’s piece is unintentionally hilarious. As DeLong pointed out, China’s age pyramid is quite different from those of the other two societies, thanks to the famous One Child policy.

China Age Pyramid

Virtually every educated person on this planet knows about the One Child policy. A few days ago I was teaching the students in my history of globalisation class about fertility rates, Malthus, and the Demographic Transition. At least half of these first-year university students in England already knew about the One Child policy.  Friedman, who travels to Asia frequently, appears to have forgotten about it.

Then there are the important issues that the media doesn’t talk about. As readers of this blog will know, I’m interested in the ratings agencies that evaluate the safety of various types of bonds, including sovereign debt. Some pretty spectacular problems with the ratings agencies were revealed by the 2008 GFC, when securities previously rated as excellent were revealed to be worthless. It is pretty clear in retrospect that the ratings agencies, which have a privileged position under US law, had an obvious conflict of interest (i.e., a good reason to give a falsely positive rating). That’s because the ratings agencies are typically paid by the person giving the rating rather than the consumer of the data. (There are some ratings agencies that don’t take money from the entity being rated and instead rely on subscriptions).

The Franken Amendment to the 2010 Dodd-Frank law would have eliminated this conflict of interest by requiring a firm issuing a security to contact the Securities and Exchange Commission (SEC), which would then choose a rating agency to do the work of evaluating it.  However, a member of Congress succeeded in delaying the implementation of the Franken Amendment until December 2012 so that it could be “studied”. It is now 2013 and the study of the Franken Amendment is somehow, mysterious, not yet finished.  As the Center of Economic and Policy Research pointed out, neither the New York Times nor the Washington Post have investigated why the measure has been delayed.  These are the two well-funded, left-leaning newspapers with a heritage of serious investigative journalism [think Watergate] that one would expect to shine some light on this issue.

Clearly the press corps isn’t doing its job. Neither, however, are academic historians.

Here’s why I would condemn the historical profession and, in particular, specialists in late 20th century US history, for their failure to investigate. The ratings agencies owe much of their power to the fact they are designated as Nationally Recognized Statistical Rating Organizations or NRSROs. Since 1975, the US government (the SEC actually) produces a list of approved NRSROs that has become a global standard: if they want access to US capital markets, a security issuer needs to go through a NRSRO. They are gatekeepers. A few months ago Sam Bowman wrote an interesting blog post in which he argued that the NRSROs were “quasi-governmental” agencies rather than genuine private companies. He is right that they owe their privileges to state favour, but they are privately-owner commercial enterprises. That’s why they need to be watched so carefully– they operate in the profitable twilight zone between free enterprise and state monopoly.

The whole category of the NRSRO was created by the SEC in 1975.  The decision-making process at the SEC is murky, of course, but it is striking that no academic historian has studied the political history of the making of this category and its preservation. Why was this category created in 1975? What were the names of the specific individuals who were pushing for it? Was its creation opposed by members of Congress? What was the attitude of the CRAs, borrowers, lender, and other stakeholders to this innovation?

Today, it is routine to hear politicians in Greece, Italy, and elsewhere denounce the ratings agencies. Economists have spilled a lot of ink on the subject as well.  Given the sheer importance of NRSROs such as S&P, Moody’s, and Fitch you might have thought historians would investigate this topic, perhaps by doing a bit of oral history, using open archival materials, and maybe putting in a few FOI requests. However, I know of no secondary literature on the creation of this category in 1975. No articles. No books.

The non-existence of this literature represents a massive failure on the part of the historical profession. On Monday, the Justice Department launched a $5 billion lawsuit against S&P for its role in the mortgage meltdown. Hopefully the headlines about the lawsuit will encourage some academic historian to publish something on the momentous events of 1975.





2013 Coleman Prize

6 02 2013

The Association of Business Historians invites submissions for consideration for the
2013 Coleman Prize. This prestigious prize is open to PhD dissertations in Business
History either having a British subject or completed at a British University. All
dissertations completed in the calendar years 2011 and 2012 are eligible (with the
exception of previous submissions). The value of the prize is £250. Named in honour
of the British Business Historian Donald Coleman, this prize is awarded annually by
the Association of Business Historians to recognise excellence in new research in
Britain. The Prize is sponsored by the Taylor & Francis Group, a scholarly publisher
which makes available original manuscript collections, rare printed books and other
primary source materials in microform and electronic format. It is a condition of
eligibility for the Prize that short-listed finalists present their findings at the
Association’s annual conference, to be held at the Lancashire Business School,
Preston, UK. For more information see here.

 

Please note that the deadline for submission of entries for the 2013 Coleman Prize for PhD dissertation has now been extended to 28.02.13. We particularly encourage PhD students who have successfully completed in 2012 to apply. If you are aware of recent PhDs who are not members of ABH but are eligible we would be grateful if you bring this opportunity to their attention. Details of the competition are in the attachment.





War of 1812

31 01 2013

Each week, the BBC Radio 4 show “In Our Time” tackles a historical topic. The host, Melvyn Bragg, will interview three academic experts. This week, they were dealing with the Anglo-American War of 1812.

This week’s three experts were:

Kathleen Burk
Professor of Modern and Contemporary History at University College London

Lawrence Goldman
Fellow in Modern History at St Peter’s College, University of Oxford

Frank Cogliano
Professor of American History at the University of Edinburgh

You can listen here. Unlike BBC TV shows, which can only be viewed in the UK, you can listen to this programme anywhere in the world. Moreover, every single In Our Time broadcast (585 in total) is available online.

The In Our Time website provides a list of sources for every show. I’ve pasted this week’s list below.

Carl Benn, The War of 1812 (Osprey, 2002)

George Robert Gleig, A Narrative of the Campaigns of the British Army: at Washington, Baltimore, and New Orleans by an officer (John Murray, 1821)

Donald R. Hickey, The War of 1812: A Forgotten Conflict (University of Illinois Press, 1989)

Reginald Horsman, The Causes of the War of 1812 (Various publishers, 1962)

Reginald Horsman, The Diplomacy of the New Republic, 1776-1815 (Harlan Davidson, 1985)

Lawrence Kaplan, Entangling Alliances with None: American Foreign Policy in theAge of Jefferson (Kent State University Press, 1987)

Andrew Lambert, The Challenge: Britain Against America in the Naval War of 1812(Faber and Faber, 2012)

Jon Latimer, 1812: War with America (Harvard University Press, 2007)

Bradford Perkins, The Creation of a Republican Empire, 1776-1865 (Cambridge University Press, 1993)

Leonard Sadosky, Revolutionary Negotiations: Indians, Empires, and Diplomats in the Founding of America (University of Virginia Press, 2009)

J. C. A. Stagg, The War of 1812: Conflict for a Continent (Cambridge University Press, 2012)

Alan Taylor, The Civil War of 1812: American Citizens, British Subjects, Irish Rebels and Indian Allies (Knopf, 2010)





“Who Owns the Words That Come Out of Your Mouth?”

20 01 2013

Winston Churchill in 1942. Please note that this photograph was taken by an employee of the United States government is therefore in the public domain. Image courtesy of the Library of Congress. http://www.loc.gov/pictures/item/owi2001045696/PP/

“Who Owns the Words That Come Out of Your Mouth?”

We listen to the Freakonomics Radio program almost every week. The show is usually entertaining and enlightening. The latest episode is unusually good. (Click here to listen)

It’s basically on the subject of copyright law and intellectual property rights more generally. The show begins with an interview with Barry Singer, the author of a recent book on Winston Churchill. Singer explains that copyright over every spoken or written statement ever made by Winston Churchill remains in the hands of his descendants. In other words, if you want to quote something Churchill said, you have to pay them a royalty. The hosts use Singer’s experience as a jumping off point for a wide-ranging discussion that covers the differences between UK and US copyright law and the question of whether intellectual property rights have become too strong and are actually impeding creativity and economic development. They interview Rohan Silva, a policy advisor to David Cameron, who fears that the UK’s excessively strong protection for intellectual property may be discouraging technological innovation. The founders of Google have said that they would have been unable to start their company in the UK because of the intellectual property laws.

Regardless of whether you are a fan of Intellectual Property or an admirer of the late Aaron Swartz, you will find this broadcast to be very interesting. Among the interesting facts presented in this podcast are:

1)      The US legal doctrine of “fair use” (which allows you to quote published statements without paying a royalty) does not exist in British law.  (In Commonwealth countries, there is the concept of “fair dealing” but it appears to be more protective of copyright holders than the US fair use doctrine).

2)      The price per word to quote Clementine Churchill is greater than that to quote her husband Winston.

3)      If a newly-minted PhD in economics publishes an article in a top economics journal, he or she can expect to raise their lifetime earnings by $100,000.  (I suspect that the figure for historians is lower, simply because in our biblio-centric discipline publishing a book is what is valued by potential employers).