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The emergence of provincial debt in the county of Holland (thirteenth-sixteenth centuries)

Zuijderduijn, Jaco LU (2010) In European Review of Economic History 14(3). p.335-359
Abstract

Historians often use the concept of financial revolutions to explain the rise of the Dutch Republic, claiming that innovations in government funding allowed for marked progress in the field of public finance. The article focuses on the medieval precursors of the financial revolution, which the States of Holland brought about when they introduced province-wide public debt in the sixteenth century. The relevant techniques were already known, but predominantly used for political rather than financial purposes. Therefore techniques such as collective responsibility for debt were scarcely implemented. The article hypothesizes that sovereigns made use of the corporate personality of public bodies to increase ties with the main towns of... (More)

Historians often use the concept of financial revolutions to explain the rise of the Dutch Republic, claiming that innovations in government funding allowed for marked progress in the field of public finance. The article focuses on the medieval precursors of the financial revolution, which the States of Holland brought about when they introduced province-wide public debt in the sixteenth century. The relevant techniques were already known, but predominantly used for political rather than financial purposes. Therefore techniques such as collective responsibility for debt were scarcely implemented. The article hypothesizes that sovereigns made use of the corporate personality of public bodies to increase ties with the main towns of Holland, and thus they used collective responsibility for debt to create stability. This only became a major financial instrument at the turn of the sixteenth century, when a financial crisis forced both sovereign and main towns to reorganize the medieval system of debt servicing. This centralization was crucial for the large public debt the county of Holland created under the Dutch Republic and may even be regarded as a step in the direction of national debt.

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author
publishing date
type
Contribution to journal
publication status
published
subject
in
European Review of Economic History
volume
14
issue
3
pages
25 pages
publisher
Cambridge University Press
external identifiers
  • scopus:78650417986
ISSN
1361-4916
DOI
10.1017/S1361491610000055
language
English
LU publication?
no
id
66c1769a-6ad9-47a3-b51e-dd5f5665a56c
date added to LUP
2016-09-15 16:07:12
date last changed
2018-05-29 09:30:13
@article{66c1769a-6ad9-47a3-b51e-dd5f5665a56c,
  abstract     = {<p>Historians often use the concept of financial revolutions to explain the rise of the Dutch Republic, claiming that innovations in government funding allowed for marked progress in the field of public finance. The article focuses on the medieval precursors of the financial revolution, which the States of Holland brought about when they introduced province-wide public debt in the sixteenth century. The relevant techniques were already known, but predominantly used for political rather than financial purposes. Therefore techniques such as collective responsibility for debt were scarcely implemented. The article hypothesizes that sovereigns made use of the corporate personality of public bodies to increase ties with the main towns of Holland, and thus they used collective responsibility for debt to create stability. This only became a major financial instrument at the turn of the sixteenth century, when a financial crisis forced both sovereign and main towns to reorganize the medieval system of debt servicing. This centralization was crucial for the large public debt the county of Holland created under the Dutch Republic and may even be regarded as a step in the direction of national debt.</p>},
  author       = {Zuijderduijn, Jaco},
  issn         = {1361-4916},
  language     = {eng},
  number       = {3},
  pages        = {335--359},
  publisher    = {Cambridge University Press},
  series       = {European Review of Economic History},
  title        = {The emergence of provincial debt in the county of Holland (thirteenth-sixteenth centuries)},
  url          = {http://dx.doi.org/10.1017/S1361491610000055},
  volume       = {14},
  year         = {2010},
}