Hoffman P., Postel-Vinay G. and Rosenthal J.-L. (1992) Private credit market in Paris

March 28, 2009

Hoffman, Philip T., Postel-Vinay, Gilles, and Rosenthal, Jean-Laurent (1992) “Private Credit Markets in Paris, 1690-1840”, The Journal of Economic History, 52/2, 293-306.

hoffmanphiliptpostelrosenthaljean-laurent

Introduction

In Ancien Régime France, “credit assumed such importance that, as one historian suggest, an 18th-century person’s very reputation was bound up with his ability to obtain loans.” Until the late 19th century, the usual intermediaries on the credit market were not banks but notaries (p.294). Notarial offices recorded families’ transactions for generations, notaries thus enjoyed a unique ability to access information on the parties’ financial history. Their intimate knowledge of a person’s position allowed them to match borrowers and lenders, often on short notice. Read the rest of this entry »