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How Did New York Replace London as the Financial Centre of the World? A Book Review Options
Hope123
Posted: Friday, June 17, 2016 12:13:15 PM

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Location: Burlington, Ontario, Canada
I always wondered but never bothered to find out exactly how the question above happened. We are all interested in money and what might happen to the global economy. Disclaimer - I have read only this book review, not the book, and have not checked any facts. It is FYI only for those interested.

From the book - "The End of Alchemy by Mervyn King - Money, Banking, and the Future of the Global Economy". Delancey Place's book review.

Copyright 2016


http://delanceyplace.com/index.php

Comments would be interesting.




Equality is when you see a person - not a label.
Drag0nspeaker
Posted: Tuesday, June 21, 2016 4:04:56 AM

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Location: Livingston, Scotland, United Kingdom
Hi - I just saw this question, and haven't had a chance to look at your link (and definitely won't read the book).

However, from all the odd bits of things I have read and seen, I think it is communication lines.

In the beginning there was telegraph. It was set up in the USA - between states, not out to other countries - then in Britain and Europe internationally - then through the commonwealth, connecting London to Canada, India, Africa, Australia, Hong Kong and the West Indies. This was followed by phone communication in the same pattern.

London had better telegraph and phone connection with the neighbours of the USA than the USA had.

I was a telephone engineer in the 1960s and I remember that (operator-connected) calls from Europe to USA were all set up via London.
A caller in Paris (for example) would ask the operator for a number in Austin Tx. The Paris operator would call a London operator to set up a line to the USA. An operator in White Plains NY would then connect it on to Texas.
Directly-dialled international calls (when they were set up in the late 1960s) were routed over the same cables, so all calls from Europe to the USA went through London.

I don't know, but I can quite believe, that a call from the USA to Australia would go White Plains, London, India, Hong Kong, Australia.

Telex and private banking communications were the same. Banks in Europe connecting with banks in the USA would go via a Clearing House in London.

With the advent of wireless communications and satellites and so on, London's importance as the hub connecting Europe to the USA died away, though it is still important. Oddly enough, bank transfers from (for example) France to Holland might well go through a Clearing House in London or Switzerland.

This is one of the arguments that 'big business' has for staying in the European Union. London City (the one square mile in the middle of London) derives a lot of its income from money "passing through". The Euro bankers have threatened to deal directly with each other if the UK leaves the EU.


Wyrd bið ful aræd - bull!
Hope123
Posted: Wednesday, June 22, 2016 10:57:49 AM

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Joined: 3/23/2015
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Location: Burlington, Ontario, Canada
Interesting, Drago. I would never have thought of that as a reason but it very well could be one. (You've done a lot of interesting things in your short lifespan!)

Equality is when you see a person - not a label.
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