Wealth making in nineteenth- and early twentieth-century Britain: Industry v. commerce and finance

Business History

Volumn 41, Issue 1, 1999, Pages 16-36

  Nicholas, Tom ^a  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL FORMATION; COMMERCIAL ACTIVITY; INDUSTRIAL HISTORY; NINETEENTH CENTURY; TWENTIETH CENTURY;

UNITED KINGDOM;

EID: 0033005696     PISSN: 00076791     EISSN: 17437938     Source Type: Journal    
DOI: 10.1080/00076799900000200     Document Type: Article

References (42)

1. W.D. Rubinstein, Capitalism, Culture and Decline in Britain, 1750-1990 (London, 1994), p.35.
2. W.D. Rubinstein, 'The Victorian Middle Classes: Wealth, Occupation and Geography', Economic History Review, Vol.30 (1977); idem, Men of Property: The Very Wealthy in Britain Since the Industrial Revolution (London, 1981); idem, Capitalism, Culture and Decline. Of course such arguments have been made by others. See for example, G. Ingham, Capitalism Divided? The City and Industry in British Social Development (London, 1984); M. Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980 (Cambridge, 1981).
3. W.D. Rubinstein, 'The Victorian Middle Classes: Wealth, Occupation and Geography', Economic History Review, Vol.30 (1977); idem, Men of Property: The Very Wealthy in Britain Since the Industrial Revolution (London, 1981); idem, Capitalism, Culture and Decline. Of course such arguments have been made by others. See for example, G. Ingham, Capitalism Divided? The City and Industry in British Social Development (London, 1984); M. Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980 (Cambridge, 1981).
4. W.D. Rubinstein, 'The Victorian Middle Classes: Wealth, Occupation and Geography', Economic History Review, Vol.30 (1977); idem, Men of Property: The Very Wealthy in Britain Since the Industrial Revolution (London, 1981); idem, Capitalism, Culture and Decline. Of course such arguments have been made by others. See for example, G. Ingham, Capitalism Divided? The City and Industry in British Social Development (London, 1984); M. Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980 (Cambridge, 1981).
5. W.D. Rubinstein, 'The Victorian Middle Classes: Wealth, Occupation and Geography', Economic History Review, Vol.30 (1977); idem, Men of Property: The Very Wealthy in Britain Since the Industrial Revolution (London, 1981); idem, Capitalism, Culture and Decline. Of course such arguments have been made by others. See for example, G. Ingham, Capitalism Divided? The City and Industry in British Social Development (London, 1984); M. Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980 (Cambridge, 1981).
6. W.D. Rubinstein, 'The Victorian Middle Classes: Wealth, Occupation and Geography', Economic History Review, Vol.30 (1977); idem, Men of Property: The Very Wealthy in Britain Since the Industrial Revolution (London, 1981); idem, Capitalism, Culture and Decline. Of course such arguments have been made by others. See for example, G. Ingham, Capitalism Divided? The City and Industry in British Social Development (London, 1984); M. Wiener, English Culture and the Decline of the Industrial Spirit, 1850-1980 (Cambridge, 1981).
7. Rubinstein's assertion about the dominance of London and of commerce is taken from income tax returns rather than probate records, but we are left in no doubt that the same inference is made on the basis of wealth data. See, for example, W.D. Rubinstein, 'British Businessmen as Wealth Holders, 1870-1914: A Response', Business History, Vol.34 No.2 (1992), pp.73-4.
8. Rubinstein's most recent research provides information on the occupation and geography of wealth holders leaving £100,000 or more in probate between 1809 and 1899. The results of this study, he suggests, mirror the results from his previous study of wealth holders leaving £500,000 or more. See, further, Rubinstein, 'British Businessmen as Wealth Holders: A Response', pp.75-6.
9. Rubinstein, Men of Property, pp.56-117.
10. Y. Cassis, 'Bankers in English Society in the Late Nineteenth Century', Economic History Review, Vol.38 (1985).
11. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
12. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
13. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
14. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
15. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
16. Among those who have taken issue with Rubinstein's findings are N.J. Morgan and M.S. Moss, 'Listing the Wealthy in Scotland', Bulletin of the Institute of Historical Research (London, 1986); M. Daunton, 'Gentlemanly Capitalism and British Industry, 1820-1914', Past and Present, No. 122 (1989); R. Pahl, 'New Rich, Old Rich, Stinking Rich?', Social History Vol.15 No.2 (1990). Rubinstein has replied in 'British Businessmen as Wealth Holders: A Response'; 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No. 132 (1991); 'Stinking Rich: A Response', Social History, Vol.16 No.3 (1991).
17. M. Daunton and W.D. Rubinstein, 'Gentlemanly Capitalism and British Industry, 1820-1914: Debate', Past and Present, No.132 (1991), p.182.
18. Rubinstein, Men of Property, pp.29-32.
19. H. Berghoff, 'British Businessmen as Wealth Holders, 1870-1914: A Closer Look', Business History, Vol.33 No.2 (1991). See also idem, 'Regional Variations in Provincial Business Biography: The Case of Birmingham, Bristol and Manchester, 1870-1914', Business History, Vol.37 (1995).
20. H. Berghoff, 'British Businessmen as Wealth Holders, 1870-1914: A Closer Look', Business History, Vol.33 No.2 (1991). See also idem, 'Regional Variations in Provincial Business Biography: The Case of Birmingham, Bristol and Manchester, 1870-1914', Business History, Vol.37 (1995).
21. Berghoff, 'British Businessmen', p.224.
22. D.J. Jeremy and C. Shaw (eds.), The Dictionary of Business Biography, 5 vols. (London, 1984-86). All those born between 1800 and 1880 on whom wealth data were available are included in the sample.
23. J. Bateman, Great Landowners of Great Britain and Ireland, 4 editions (London, 1876-83).
24. T. Nicholas, 'Businessmen and Landownership in the Late Nineteenth Century', Economic History Review (forthcoming Feb. 1999).
25. The extent of evasion and avoidance is difficult to judge because this varied with the rate of duty levied, in addition to the conditions imposed on inter vivos transfers. Lifetime giving was also likely to be motivated by other factors, such as philanthropy, age, family size, even occupation, which were not randomly distributed. See, further, Rubinstein, 'Gentlemanly Capitalism and British Industry: Debate', pp.156-8, for an exchange between Morgan and Moss and Daunton, who consider inter vivos gifts were more common among industrialists and manufacturers than among those engaged in commerce and finance, and Rubinstein, who argues the reverse. Whoever is correct, it is impossible, using the available data, to make any adjustment for evasion and avoidance of death duties and inter vivos transfer anomalies other than we have done using our period control procedure.
26. D.J. Lawday and E.J. Mann, Green's Death Duties (London, 1971).
27. G. Miller, The Machinery of Succession (Aldershot, 1996).
28. Thus we are systematically excluding the value of land for the individuals born 1800-1840 because settled land was not included in probate until 1926. For the sample cohort born between 1840 and 1880 we include the value of land, because, as already mentioned probate does not provide a way of distinguishing the value of certain assets.
29. B.R. Mitchell, British Historical Statistics (Cambridge, 1988), pp.831-2, 837-8.
30. Rubinstein, 'The Victorian Middle Class', p.608. For other instances, see idem, Men of Property p.247; idem, 'Gentlemanly Capitalism and British Industry: Debate', p. 154; idem (ed.), Wealth and the Wealthy in the Modern World (London, 1980), pp.22-3.
31. Rubinstein, 'The Victorian Middle Class', p.608. For other instances, see idem, Men of Property p.247; idem, 'Gentlemanly Capitalism and British Industry: Debate', p. 154; idem (ed.), Wealth and the Wealthy in the Modern World (London, 1980), pp.22-3.
32. Rubinstein, 'The Victorian Middle Class', p.608. For other instances, see idem, Men of Property p.247; idem, 'Gentlemanly Capitalism and British Industry: Debate', p. 154; idem (ed.), Wealth and the Wealthy in the Modern World (London, 1980), pp.22-3.
33. Rubinstein, 'The Victorian Middle Class', p.608. For other instances, see idem, Men of Property p.247; idem, 'Gentlemanly Capitalism and British Industry: Debate', p. 154; idem (ed.), Wealth and the Wealthy in the Modern World (London, 1980), pp.22-3.
34. The latter are the subject of on-going research. See further, W.D. Rubinstein, 'The Structure of Wealth Holding in Britian: A Preliminary Anatomy', Historical Research (1992). Most of Rubinstein's attention has focused on wealth holders leaving £500,000 or more between 1809 and 1939, especially in the 1977 article, 'The Victorian Middle Class', in which the notion of occupational and geographical wealth differentials was first presented.
35. The latter are the subject of on-going research. See further, W.D. Rubinstein, 'The Structure of Wealth Holding in Britian: A Preliminary Anatomy', Historical Research (1992). Most of Rubinstein's attention has focused on wealth holders leaving £500,000 or more between 1809 and 1939, especially in the 1977 article, 'The Victorian Middle Class', in which the notion of occupational and geographical wealth differentials was first presented.
36. Rubinstein, Men of Property, pp.29-32.
37. £40,000 is the threshold level imposed by Berghoff.
38. Rubinstein, Men of Property, pp.29-32.
39. 2.
40. Rubinstein, 'The Victorian Middle Class'; idem. Men of Property.
41. Rubinstein, 'The Victorian Middle Class'; idem. Men of Property.
42. Fewer wealth makers can be observed in new technology industries, probably because of the inclusion of contracting engineers. They were often self-made men, but operated in a sector not renowned for amassing large personal fortunes.