Creating Capitalism

Winner of the Economic History Society's Best First Monograph award. The emergence of the joint-stock company in nineteenth-century Britain was a culture shock for many Victorians. Though the home of the industrial revolution, the nation's economy was dominated by the private partnership, seen as the most efficient as well as the most ethical form of business organisation. The large impersonal company and the rampant speculation it was thought to encourage were viewed with downright hostility. This book argues that the existing historiography understates society's resistance to joint-stock enterprise; it employs an eclectic range of sources, from newspapers and parliamentary papers to cartoons, novels and plays, to unearth this forgotten economic debate. It explores how the legal system was gradually restructured to facilitate joint-stock enterprise, a process culminating in the limited liability legislation of the mid-1850s. This has typically been interpreted as evidence for the emergence of new, positive attitudes to speculation and economic growth, but the book demonstrates how traditional outlooks continued to influence legislation, and the way in which economic reforms were driven by political agendas. It will be relevant for anyone interested not only in the economic culture of nineteenth-century Britain, but also the twenty-first-century debate on the ethics of multi-national corporations.