Brief von Josef Steindl an Amit Bhaduri

Steindl, Josef

A-1050 Wien Schwarzb rngasse 10/17 If'V 13,1981 Dear Amit, On reading an (older) paper on England by one economist lere in the journal of the Arbeiterkammer 1 can seo how right you are in stressing th$ separation of industry and banks in England. There is a book which I have not yet got hold of: Samuels, Groves, Goddard, Company Finance in Europe London 1975 Ee argues that owing to the traditional reluctinoe of industry in Britain to indobt itself and borrow from the banks investment lack3 the 00ope of action which it has incontinental Eruope 5 to a large extent the alienati on is probably caused by the banks who find their foreign business more profitable and therefore charge much higher credit cost there than continental bakns t their h me industries An i’lustrati n >f this very peculiar backgraund >f the British scene is t be seen in my figures on lending and borroping by sect rs which I collected f r my savings paper U K Met acquisition of financial assets by sector Hauseh Id Public Industrial Financial Overseas Residual 3ect or +C raaerfi:' al £ miJli ons per ; annum i960 -64 500 -749 89 39 53 69 1965-72 958 - 594 115 - 163 - 292 -44 1973-80 7666 -7110 -1584 - 95 712 210 That is between 19$0 and 1972 the industrial-corn orcial sector has actually been a net ledder , a situation not paralleled as far as 1 can seeg in any other c >untry. On these quasi historical rounds reater there is a divergence of interests bitween industry and the banks \in Britain than in other countries. I do not think the same can be argued Mth respect to the U.S. and I therefore question your putting them side by side while I would elaborate the peculiar position of Britain more I hope y u are rewriting the passages on the Ear d,liar market My fumbling ver that was meant merely as a pr VXJti n I have really no idea n the subject I am influe ced.by the prejudice that anks ^ always 1 eild 1 ng and b rr w sh rt thats their j-b must hurry With ^ b st wisches Y urs

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