Organisational flexibility and governance in a civil-law regime: Scottish partnership banks during the Industrial Revolution

Graeme Acheson

    Research output: Contribution to journalArticle

    5 Citations (Scopus)

    Abstract

    Unlike their English counterparts, Scottish partnership banks during the Industrial Revolution operated under partnership law which was similar to the French société en commandite. The article suggests that the definitive feature of this partnership law was that it permitted partnerships to separate ownership from control and stock to be traded. Archival evidence also suggests that Scottish partnership banks had mechanisms to ameliorate potential insider opportunism arising from the separation of ownership from control. The available evidence also suggests that the ability of Scottish banks to separate ownership from control may have contributed to the relative stability of the banking system.
    LanguageEnglish
    Pages505-529
    JournalBusiness History
    Volume53
    Issue number4
    DOIs
    Publication statusPublished - 27 Jul 2011

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    Organizational governance
    Civil law
    Organizational flexibility
    Industrial revolution
    Ownership
    Banking system
    Insider
    Opportunism

    Cite this

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    title = "Organisational flexibility and governance in a civil-law regime: Scottish partnership banks during the Industrial Revolution",
    abstract = "Unlike their English counterparts, Scottish partnership banks during the Industrial Revolution operated under partnership law which was similar to the French soci{\'e}t{\'e} en commandite. The article suggests that the definitive feature of this partnership law was that it permitted partnerships to separate ownership from control and stock to be traded. Archival evidence also suggests that Scottish partnership banks had mechanisms to ameliorate potential insider opportunism arising from the separation of ownership from control. The available evidence also suggests that the ability of Scottish banks to separate ownership from control may have contributed to the relative stability of the banking system.",
    author = "Graeme Acheson",
    note = "Reference text: Ackrill, M., & Hannah, L. (2001). Barclays: The business of banking, 1690–1996. Cambridge: Cambridge University Press. Anderson, G.M., & Tollison, R.D. (1983). The myth of the corporation as a creation of the state. International Review of Law and Economics, 3(1), 107–120. Ashley, W. (1923). The economic organisation of England. London: Longmans, Green & Co. Baucells, M., & Lippman, S.A. (2001). Justice delayed is justice denied: A cooperative game theoretic analysis of hold-up in co-ownership. Cardozo Law Review, 22(3–4), 1191– 1250. Beck, T., Demirgu¨ c¸-Kunt, A., & Levine, R. (2003). Law and finance: Why does legal origin matter? Journal of Comparative Economics, 31(4), 653–675. Bell, G.J. (1858). Commentaries on the laws of Scotland (6th ed.). Edinburgh: T. & T. Clark. Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillan. Bissett, A. (1847). A practical treatise on the law of partnership. London: Stevens, Norton, Benning & Co. Blair, M.M. (2003). Locking in capital: What corporate law achieved for business organisers in the nineteenth century. UCLA Law Review, 51(2), 387–455. 526 G.G. Acheson et al. Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Boase, C.W. (1864). A century of banking in Dundee. Dundee: James P. Mathew & Co. Brown, R. (1903). Early Scottish joint-stock companies. Glasgow: Carter and Pratt. Cameron, A. (1995). Bank of Scotland 1695–1995: A very singular institution. Edinburgh: Mainstream Publishing. Cameron, R. (1967). Banking in the early stages of industrialization: A study in comparative economic history. New York: Oxford University Press. Campbell, S. (1933). The economic and social effect of usury laws in the eighteenth century. Transactions of the Royal Historical Society, 16, 197–210. Campbell, R.H. (1967). The law and the joint-stock company in Scotland. In P.L. Payne (Ed.), Studies in Scottish business history (pp. 136–151). London: Frank Cass and Co. Carr, J., Gleid, S., & Mathewson, F. (1989). Unlimited liability and free banking in Scotland. Journal of Economic History, 49(4), 974–978. Checkland, S.G. (1968). Banking history and economic development: Seven systems. Scottish Journal of Political Economy, 15(2), 144–166. Checkland, S.G. (1975). Scottish banking: A history. 1695–1973. Glasgow: Collins. Cheffins, B.R. (2001). History and the global corporate governance revolution: The UK perspective. Business History, 43(4), 87–118. Cheffins, B.R. (2008). Corporate ownership and control: British business transformed. Oxford: Oxford University Press. Christie, J.R. (1909). Joint stock enterprise in Scotland before the companies acts. Juridical Review, 21(2), 128–147. Clapham, J. (1944). The Bank of England: A history. London: Cambridge University Press. Clark, F.W. (1864). A treatise on the law of partnership and joint-stock companies according to the law of Scotland. Edinburgh: T. & T. Clark. Cooke, C.A. (1951). Corporation, trust and company. Cambridge, MA: Harvard University Press. Cottrell, P., & Newton, L. (1999). Banking liberalization in England and Wales 1826–1844. In R. Sylla, R. Tilly, & G. Tortella (Eds.), The state, the financial system and economic modernization (pp. 75–117). Cambridge: Cambridge University Press. Cowen, T., & Kroszner, R. (1989). Scottish banking before 1845: A model for laissez-faire? Journal of Money, Credit and Banking, 21(2), 221–231. De Roover, R. (1946). The Medici Bank organization and management. Journal of Economic History, 6(1), 24–52. De Roover, R. (1963). The rise and decline of the Medici Bank. Cambridge, MA: Harvard University Press. Dow, S.C., & Smithin, J. (1992). Free banking in Scotland, 1695–1845. Scottish Journal of Political Economy, 39(4), 374–390. DuBois, A.D. (1938). The English business company after the Bubble Act, 1720–1800. New York: Oxford University Press. Fama, E., & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 24(2), 301–325. Fohlin, C. (2007). Does civil law tradition and universal banking crowd out securities markets? Pre-World War I Germany as counter-example. Enterprise and Society, 8(3), 602–641. Freedeman, C.E. (1979). Joint stock enterprise in France, 1807–1867. Chapel Hill: University of North Carolina Press. Freeman, M., Pearson, R., & Taylor, J. (2007). ‘Different and better?’: Scottish joint-stock companies and the law, c.1720–1845. English Historical Review, 122(1), 61–81. Grossman, P.Z. (1995). The market for shares of companies with unlimited liability: The case of American Express. Journal of Legal Studies, 24(1), 63–85. Gugler, K., Mueller, D.C., & Yortoglu, B.B. (2004). Corporate governance and the returns on investment. Journal of Law and Economics, 48(2), 589–633. Guinnane, T., Harris, R., Lamoreaux, N.R., & Rosenthal, J.-L. (2007). Putting the corporation in its place. Enterprise and Society, 8(3), 687–729. Hansmann, H., Kraakman, R., & Squire, R. (2006). Law and the rise of the firm. Harvard Law Review, 119(5), 1336–1403. Harris, R. (2000). Industrializing English law: Entrepreneurship and business organization. Cambridge: Cambridge University Press. Business History 527 Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Hickson, C.R., & Turner, J.D. (2003). Trading in the shares of unlimited liability banks in nineteenth century Ireland: The Bagehot hypothesis. Journal of Economic History, 63(4), 931–958. Hickson, C.R., & Turner, J.D. (2004). Free banking and the stability of early joint-stock banking. Cambridge Journal of Economics, 28(6), 903–919. Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behaviour, agency costs and capital structure. Journal of Financial Economics, 3(4), 305–360. Joplin, T. (1827). An essay on the general principles and present practice of banking in England and Scotland. London: Baldwin, Cradock & Joy and J. Ridgway. Kerr, A.W. (1884). History of banking in Scotland. London: Adam and Charles Black. Kraakman, R.R., Davies, P., Hansmann, H., Hetig, G., Hopt, K.J., Kanda, H., et al. (2004). The anatomy of corporate law: A comparative and functional approach. Oxford: Oxford University Press. Lamoreaux, N. (1986). Banks, kinship, and economic development: The New England case. Journal of Economic History, 46(3), 647–667. Lamoreaux, N.R. (1998). Partnerships, corporations, and the theory of the firm. American Economic Review Papers and Proceedings, 88(2), 66–71. Lamoreaux, N.R., & Rosenthal, J.-L. (2005). Legal regime and contractual flexibility: A comparison of business’s organizational choices in France and the United States during the era of industrialization. American Law and Economics Review, 7(1), 28–61. La Porta, R., Lopez-De-Silanes, F., & Shleifer, A. (2008). The economic consequences of legal origins. Journal of Economic Literature, 46(2), 285–332. La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R.W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113–1155. La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R.W. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1), 3–27. Levine, R. (1998). The legal environment, banks, and long-run economic growth. Journal of Money, Credit and Banking, 30(3), 596–613. Levine, R. (1999). Law, finance, and economic growth. Journal of Financial Intermediation, 8(1), 8–35. Mahoney, P.G. (2001). The common law and economic growth. Journal of Legal Studies, 30(2), 503–525. Malmendier, U. (2009). Law and finance ‘at the origin’. Journal of Economic Literature, 47(4), 1076–1108. Michie, R.C. (1978). The transfer of shares in Scotland, 1700–1820. Business History, 20(2), 153–164. Mitchell, B.R. (1988). British historical statistics. Cambridge: Cambridge University Press. Musacchio, A. (2008a). Laws versus contracts: Legal origins, shareholder protections, and ownership concentration in Brazil, 1890–1950. Business History Review, 82(3), 445– 473. Musacchio, A. (2008b). Do legal origins have persistent effects over time? A look at law and finance around the world c.1900 (Working paper 08-030). Harvard Business School, Boston, MA. Musacchio, A. (2008c). Can civil law countries get good institutions? Lessons from the history of creditor rights and bond markets in Brazil. Journal of Economic History, 68(1), 80–108. Musacchio, A. (2009). Experiments in financial democracy: Corporate governance and financial development in Brazil, 1882–1950. Cambridge: Cambridge University Press. Munn, C.W. (1981a). The Scottish provincial banking companies 1747–1864. Edinburgh: John Donald. Munn, C.W. (1981b). Scottish provincial banking companies: An assessment. Business History, 23(1), 19–41. Newton, L.A. (1996). Regional bank–industry relations during the mid-nineteenth century: Links between bankers and manufacturing in Sheffield, c.1850 to c.1885. Business History, 38(1), 64–83. Newton, L. (2010). The birth of joint-stock banking: England and New England compared. Business History Review, 84(1), 27–52. Newton, L., & Cottrell, P. (2006). Female investors in the first English and Welsh commercial joint-stock banks. Accounting Business and Financial History, 16(2), 315–340. 528 G.G. Acheson et al. Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Pagano, M., & Volpin, P.F. (2005). The political economy of corporate governance. American Economic Review, 95(4), 1005–1030. Parnell, H. (1828). Observations on paper money, banking, and overtrading (2nd ed.). London: James Ridgway. Pollock, F. (1877). A digest of the law of partnership. London: Stevens & Sons. Posner, R.A. (1976). The rights of creditors of affiliated corporations. University of Chicago Law Review, 43(3), 499–526. Pressnell, L. (1956). Country banking in the Industrial Revolution. Oxford: Clarendon Press. Rait, R.S. (1930). The history of the Union Bank of Scotland. Glasgow: John Smith and Son. Rajan, R.G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. Roe, M. (2006). Legal origins, politics, and modern stock markets. Harvard Law Review, 120(2), 460–526. Rothbard, M.N. (1988). The myth of free banking in Scotland. Review of Austrian Economics, 2(1), 229–245. Saville, R. (1996). Bank of Scotland: A history, 1695–1995. Edinburgh: Edinburgh University Press. Sechrest, L.J. (1991). Free banking in Scotland: A dissenting view. Cato Journal, 10(3), 799–808. Smith, A. (1776/1986). The wealth of nations, books I–III. London: Penguin. Stark, J. (1825). A treatise on the law of partnership. Edinburgh: Archibald Constable and Co. Stuckey, V. (1836). Thoughts on the improvement of the system of country banking. The Edinburgh Review, 63(2), 419–441. Stulz, R.M., & Williamson, R. (2003). Culture, openness, and finance. Journal of Financial Economics, 70(3), 313–349. Tawney, R.H. (1923). Religious thought on social and economic questions in the sixteenth and seventeenth centuries. Journal of Political Economy, 31(4), 461–493. Thomas, S.E. (1934). The rise and growth of joint-stock banking. London: Sir Issac Pitman and Sons. Watt, H. (1833). The practice of banking in Scotland and England; With observations and suggestions on the renewal of the Bank of England Charter, on the principles and regulation of joint stock banks, and on the one pound note circulation. London: Simpkin and Marshal. Weinstein, M. (2003). Share price changes and the arrival of limited liability in California. Journal of Legal Studies, 32(1), 1–25. White, E.N. (1990). Free banking during the French Revolution. Explorations in Economic History, 27(3), 251–276. White, L.H. (1995). Free banking in Britain: Theory, experience and debate 1800–1845 (2nd ed.). London: Institute of Economic Affairs. Winton, A. (1993). Limitation of liability and the ownership structure of the firm. Journal of Finance, 48(2), 487–512. Woodward, S. (1985). Limited liability in the theory of the firm. Journal of Institutional and Theoretical Economics, 141(4), 601–611. Business History 529 Down",
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    Organisational flexibility and governance in a civil-law regime: Scottish partnership banks during the Industrial Revolution. / Acheson, Graeme.

    In: Business History, Vol. 53, No. 4, 27.07.2011, p. 505-529.

    Research output: Contribution to journalArticle

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    T1 - Organisational flexibility and governance in a civil-law regime: Scottish partnership banks during the Industrial Revolution

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    N1 - Reference text: Ackrill, M., & Hannah, L. (2001). Barclays: The business of banking, 1690–1996. Cambridge: Cambridge University Press. Anderson, G.M., & Tollison, R.D. (1983). The myth of the corporation as a creation of the state. International Review of Law and Economics, 3(1), 107–120. Ashley, W. (1923). The economic organisation of England. London: Longmans, Green & Co. Baucells, M., & Lippman, S.A. (2001). Justice delayed is justice denied: A cooperative game theoretic analysis of hold-up in co-ownership. Cardozo Law Review, 22(3–4), 1191– 1250. Beck, T., Demirgu¨ c¸-Kunt, A., & Levine, R. (2003). Law and finance: Why does legal origin matter? Journal of Comparative Economics, 31(4), 653–675. Bell, G.J. (1858). Commentaries on the laws of Scotland (6th ed.). Edinburgh: T. & T. Clark. Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillan. Bissett, A. (1847). A practical treatise on the law of partnership. London: Stevens, Norton, Benning & Co. Blair, M.M. (2003). Locking in capital: What corporate law achieved for business organisers in the nineteenth century. UCLA Law Review, 51(2), 387–455. 526 G.G. Acheson et al. Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Boase, C.W. (1864). A century of banking in Dundee. Dundee: James P. Mathew & Co. Brown, R. (1903). Early Scottish joint-stock companies. Glasgow: Carter and Pratt. Cameron, A. (1995). Bank of Scotland 1695–1995: A very singular institution. Edinburgh: Mainstream Publishing. Cameron, R. (1967). Banking in the early stages of industrialization: A study in comparative economic history. New York: Oxford University Press. Campbell, S. (1933). The economic and social effect of usury laws in the eighteenth century. Transactions of the Royal Historical Society, 16, 197–210. Campbell, R.H. (1967). The law and the joint-stock company in Scotland. In P.L. Payne (Ed.), Studies in Scottish business history (pp. 136–151). London: Frank Cass and Co. Carr, J., Gleid, S., & Mathewson, F. (1989). Unlimited liability and free banking in Scotland. Journal of Economic History, 49(4), 974–978. Checkland, S.G. (1968). Banking history and economic development: Seven systems. Scottish Journal of Political Economy, 15(2), 144–166. Checkland, S.G. (1975). Scottish banking: A history. 1695–1973. Glasgow: Collins. Cheffins, B.R. (2001). History and the global corporate governance revolution: The UK perspective. Business History, 43(4), 87–118. Cheffins, B.R. (2008). Corporate ownership and control: British business transformed. Oxford: Oxford University Press. Christie, J.R. (1909). Joint stock enterprise in Scotland before the companies acts. Juridical Review, 21(2), 128–147. Clapham, J. (1944). The Bank of England: A history. London: Cambridge University Press. Clark, F.W. (1864). A treatise on the law of partnership and joint-stock companies according to the law of Scotland. Edinburgh: T. & T. Clark. Cooke, C.A. (1951). Corporation, trust and company. Cambridge, MA: Harvard University Press. Cottrell, P., & Newton, L. (1999). Banking liberalization in England and Wales 1826–1844. In R. Sylla, R. Tilly, & G. Tortella (Eds.), The state, the financial system and economic modernization (pp. 75–117). Cambridge: Cambridge University Press. Cowen, T., & Kroszner, R. (1989). Scottish banking before 1845: A model for laissez-faire? Journal of Money, Credit and Banking, 21(2), 221–231. De Roover, R. (1946). The Medici Bank organization and management. Journal of Economic History, 6(1), 24–52. De Roover, R. (1963). The rise and decline of the Medici Bank. Cambridge, MA: Harvard University Press. Dow, S.C., & Smithin, J. (1992). Free banking in Scotland, 1695–1845. Scottish Journal of Political Economy, 39(4), 374–390. DuBois, A.D. (1938). The English business company after the Bubble Act, 1720–1800. New York: Oxford University Press. Fama, E., & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 24(2), 301–325. Fohlin, C. (2007). Does civil law tradition and universal banking crowd out securities markets? Pre-World War I Germany as counter-example. Enterprise and Society, 8(3), 602–641. Freedeman, C.E. (1979). Joint stock enterprise in France, 1807–1867. Chapel Hill: University of North Carolina Press. Freeman, M., Pearson, R., & Taylor, J. (2007). ‘Different and better?’: Scottish joint-stock companies and the law, c.1720–1845. English Historical Review, 122(1), 61–81. Grossman, P.Z. (1995). The market for shares of companies with unlimited liability: The case of American Express. Journal of Legal Studies, 24(1), 63–85. Gugler, K., Mueller, D.C., & Yortoglu, B.B. (2004). Corporate governance and the returns on investment. Journal of Law and Economics, 48(2), 589–633. Guinnane, T., Harris, R., Lamoreaux, N.R., & Rosenthal, J.-L. (2007). Putting the corporation in its place. Enterprise and Society, 8(3), 687–729. Hansmann, H., Kraakman, R., & Squire, R. (2006). Law and the rise of the firm. Harvard Law Review, 119(5), 1336–1403. Harris, R. (2000). Industrializing English law: Entrepreneurship and business organization. Cambridge: Cambridge University Press. Business History 527 Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Hickson, C.R., & Turner, J.D. (2003). Trading in the shares of unlimited liability banks in nineteenth century Ireland: The Bagehot hypothesis. Journal of Economic History, 63(4), 931–958. Hickson, C.R., & Turner, J.D. (2004). Free banking and the stability of early joint-stock banking. Cambridge Journal of Economics, 28(6), 903–919. Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behaviour, agency costs and capital structure. Journal of Financial Economics, 3(4), 305–360. Joplin, T. (1827). An essay on the general principles and present practice of banking in England and Scotland. London: Baldwin, Cradock & Joy and J. Ridgway. Kerr, A.W. (1884). History of banking in Scotland. London: Adam and Charles Black. Kraakman, R.R., Davies, P., Hansmann, H., Hetig, G., Hopt, K.J., Kanda, H., et al. (2004). The anatomy of corporate law: A comparative and functional approach. Oxford: Oxford University Press. Lamoreaux, N. (1986). Banks, kinship, and economic development: The New England case. Journal of Economic History, 46(3), 647–667. Lamoreaux, N.R. (1998). Partnerships, corporations, and the theory of the firm. American Economic Review Papers and Proceedings, 88(2), 66–71. Lamoreaux, N.R., & Rosenthal, J.-L. (2005). Legal regime and contractual flexibility: A comparison of business’s organizational choices in France and the United States during the era of industrialization. American Law and Economics Review, 7(1), 28–61. La Porta, R., Lopez-De-Silanes, F., & Shleifer, A. (2008). The economic consequences of legal origins. Journal of Economic Literature, 46(2), 285–332. La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R.W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113–1155. La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R.W. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1), 3–27. Levine, R. (1998). The legal environment, banks, and long-run economic growth. Journal of Money, Credit and Banking, 30(3), 596–613. Levine, R. (1999). Law, finance, and economic growth. Journal of Financial Intermediation, 8(1), 8–35. Mahoney, P.G. (2001). The common law and economic growth. Journal of Legal Studies, 30(2), 503–525. Malmendier, U. (2009). Law and finance ‘at the origin’. Journal of Economic Literature, 47(4), 1076–1108. Michie, R.C. (1978). The transfer of shares in Scotland, 1700–1820. Business History, 20(2), 153–164. Mitchell, B.R. (1988). British historical statistics. Cambridge: Cambridge University Press. Musacchio, A. (2008a). Laws versus contracts: Legal origins, shareholder protections, and ownership concentration in Brazil, 1890–1950. Business History Review, 82(3), 445– 473. Musacchio, A. (2008b). Do legal origins have persistent effects over time? A look at law and finance around the world c.1900 (Working paper 08-030). Harvard Business School, Boston, MA. Musacchio, A. (2008c). Can civil law countries get good institutions? Lessons from the history of creditor rights and bond markets in Brazil. Journal of Economic History, 68(1), 80–108. Musacchio, A. (2009). Experiments in financial democracy: Corporate governance and financial development in Brazil, 1882–1950. Cambridge: Cambridge University Press. Munn, C.W. (1981a). The Scottish provincial banking companies 1747–1864. Edinburgh: John Donald. Munn, C.W. (1981b). Scottish provincial banking companies: An assessment. Business History, 23(1), 19–41. Newton, L.A. (1996). Regional bank–industry relations during the mid-nineteenth century: Links between bankers and manufacturing in Sheffield, c.1850 to c.1885. Business History, 38(1), 64–83. Newton, L. (2010). The birth of joint-stock banking: England and New England compared. Business History Review, 84(1), 27–52. Newton, L., & Cottrell, P. (2006). Female investors in the first English and Welsh commercial joint-stock banks. Accounting Business and Financial History, 16(2), 315–340. 528 G.G. Acheson et al. Downloaded by [University of Ulster at Coleraine] at 01:19 04 October 2012 Pagano, M., & Volpin, P.F. (2005). The political economy of corporate governance. American Economic Review, 95(4), 1005–1030. Parnell, H. (1828). Observations on paper money, banking, and overtrading (2nd ed.). London: James Ridgway. Pollock, F. (1877). A digest of the law of partnership. London: Stevens & Sons. Posner, R.A. (1976). The rights of creditors of affiliated corporations. University of Chicago Law Review, 43(3), 499–526. Pressnell, L. (1956). Country banking in the Industrial Revolution. Oxford: Clarendon Press. Rait, R.S. (1930). The history of the Union Bank of Scotland. Glasgow: John Smith and Son. Rajan, R.G., & Zingales, L. (2003). The great reversals: The politics of financial development in the twentieth century. Journal of Financial Economics, 69(1), 5–50. Roe, M. (2006). Legal origins, politics, and modern stock markets. Harvard Law Review, 120(2), 460–526. Rothbard, M.N. (1988). The myth of free banking in Scotland. Review of Austrian Economics, 2(1), 229–245. Saville, R. (1996). Bank of Scotland: A history, 1695–1995. Edinburgh: Edinburgh University Press. Sechrest, L.J. (1991). Free banking in Scotland: A dissenting view. Cato Journal, 10(3), 799–808. Smith, A. (1776/1986). The wealth of nations, books I–III. London: Penguin. Stark, J. (1825). A treatise on the law of partnership. Edinburgh: Archibald Constable and Co. Stuckey, V. (1836). Thoughts on the improvement of the system of country banking. The Edinburgh Review, 63(2), 419–441. Stulz, R.M., & Williamson, R. (2003). Culture, openness, and finance. Journal of Financial Economics, 70(3), 313–349. Tawney, R.H. (1923). Religious thought on social and economic questions in the sixteenth and seventeenth centuries. Journal of Political Economy, 31(4), 461–493. Thomas, S.E. (1934). The rise and growth of joint-stock banking. London: Sir Issac Pitman and Sons. Watt, H. (1833). The practice of banking in Scotland and England; With observations and suggestions on the renewal of the Bank of England Charter, on the principles and regulation of joint stock banks, and on the one pound note circulation. London: Simpkin and Marshal. Weinstein, M. (2003). Share price changes and the arrival of limited liability in California. Journal of Legal Studies, 32(1), 1–25. White, E.N. (1990). Free banking during the French Revolution. Explorations in Economic History, 27(3), 251–276. White, L.H. (1995). Free banking in Britain: Theory, experience and debate 1800–1845 (2nd ed.). London: Institute of Economic Affairs. Winton, A. (1993). Limitation of liability and the ownership structure of the firm. Journal of Finance, 48(2), 487–512. Woodward, S. (1985). Limited liability in the theory of the firm. Journal of Institutional and Theoretical Economics, 141(4), 601–611. Business History 529 Down

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