REJOINDER
| Author | R. H. Campbell |
| DOI | http://doi.org/10.1111/j.1467-9485.1965.tb00750.x |
| Date | 01 February 1965 |
| Published date | 01 February 1965 |
REJOINDER
R.
H.
CAMPBELL
MR.
Taylor’s main point is that
I
ignored the way in which a restric-
tion
of
credit may have been forced on the banks through an adverse
balance
of
payments reducing their limited cash reserves.
I
cannot
understand the accusation that
I
ignored the balance
of
payments.
Later in my article
I
stressed the impossibility
of
ignoring
it
in any
discussion of the economic development
of
Scotland in the eighteenth
century.’ Otherwise, what was the point
of
my statement that,
‘
in
the
short run the need for such imports
(of
grain) was a factor in arresting
growth more potent than any other
’?
If
my criticism
of
the banks is
retained in this context, it means
I
am suggesting the unimportance
of
Scottish banking in the country’s development.
I
should have thought
this brought Mr. Taylor and myself into substantial agreement, He
simply elaborates the mechanics, which
I
could not do in a review.
I
suspect, however, that it is my relegation
of
the banks to an
insignificant role
that
Mr. Taylor resents. His article does nothing
to cause a revision of this point
of
view. At most he advances the
argument, which
I
have just suggested my review incorporated, that
there were substantial limitations on the total credit which the banks
could make available; he does not deal with the other criticism, that
the banks did not lend in the directions, either geographical or by
economic sector,
that
were most necessary for the growth of the
Scottish economy. These were the criticisms of contemporary bor-
rowers whose views are as relevant
to
a history of banking as those
of bankers.
The real root of disagreement between
us
is that Mr Taylor sees
stability
of
the banking structure as overwhelmingly desirable in the
eighteenth century and
I
do
not. He therefore criticises the Ayr
Bank which did not act in accordance with canons he would uphold.
I
am not able to deal with such
a
dogmatic position in a rejoinder;
I
can only assert that from a study of industrial and commercial
concerns, and
of
particular areas,
I
believe that unorthodox finance
made a vital, though by no means overriding, contribution to Scottish
economic growth. This contribution remained positive in spite
of
the
1
The earlier reference to which
Mr.
Taylor refers
is
not nearly
so
im-
1
I4
portant
as
that
on
pages
22-23.
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