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