chapter  2
The Growth of the UK Money Stock, Household Encashable Assets and Financial-Sector Credits by End Use 1880-1962
Pages 5

Introduction An empirical base is presented in this chapter to illustrate the changes in the UK financial system over the 18801962 period. It is a counterpart of the previous chapter describing the qualitative environmental developments which influenced the financial structure over these years. The graphs and tables record the absolute amounts and the rates of growth of the consolidated assets and liabilities of the main UK financial institutions. In turn, these assets and liabilities are disaggregated in order to show the levels and the growth rates of certain important financial variables: bank and non-bank financial institutions' assets, the money stock broadly and narrowly defined, the financial institutions' public-and privatesector credits, and the liabilities of the State-run savings schemes. Indicatively, on some of the graphs, gross domestic private expenditure has been plotted so as both to show the graphical association between it and some of the financial stocks which are held to affect it, and to illustrate the relative size and rates of growth of some of these financial stocks. At a glance it seems that the existence of these stocks warrants consideration.'