... of these factors is the most important. One of the crucial factors in the process of industrialization was the availability of cheap capital. This was the result of the progressive lowering of the rate of interest until it reached 3% in the 1750s. In 1757 the 3% Consolidated Stock was introduced, bringing together several issues into one.1 This made borrowing cheaper and encouraged investment in industry. Combined with the development of local banking systems, which made the mobilization of savings more efficient, this enabled many entrepreneurs to purchase the equipment needed to go into business. As the initial outlay in many cases was not great, the careful 'recycling' of profits would soon facilitate expansion. The low cost of borrowing also resulted in the enlargement of estates by landowners, who raised money by mortgaging their properties. Where large areas of land were controlled by a single landowner, it was easier ...

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