Economics - Theses
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ItemExport credit insurance schemes and manufactured exports with particular reference to Australia 1960-1972( 1975)Credit insurance, which may be regarded as a part of casualty insurance, is a means of reducing the risk in credit operations, whether for domestic or overseas transactions. The terms “insurance” and "guarantee" are often used interchangeabley. For example, in Australia there is the Export Payments Insurance Corporation, and the counterpart organisation in the United Kingdom is the Export Credits Guarantee Department. The second half of the 19th century saw attempts by private companies in Europe to apply insurance principles to credit risks (domestic or domestic and export credit risks). But most were destined to failure because they considered it their duty not only to meet the claims of their clients but also to come to their financial assistance, so failing to distinguish between the function of insurance and banking. In Britain, Australia played a part in developing export credit insurance as it is now known when financial difficulties in Australia in the 1890's made British merchants shipping goods to Australia lose confidence in bills drawn on their Australian buyers. This led to a demand for insurance to cover the export credit risks. The few companies that were formed to meet this demand failed because they underwrote too many export risks and carried the whole of the loss, thereby giving the insured no inducement to limit his commitments. The risks in foreign trade covered by these private companies in the 19th century were only commercial risks with political risks excluded because of their large potential losses. Commercial risks refer to the financial position of the importer and his ability to meet the debts when due, whilst political risks relate to factors beyond the control of the importer, such as war in his country, which prevent payment. The reasons for the failure of credit insurance in Britain were not lost on Mr. Cuthbert Heath, a member of Lloyd's, and it was he who formulated the two basic principles upon which credit insurance (whether domestic or overseas) is now based. These were: (1) the risks covered must be a genuine average of all risks; and (2) cover should not be provided for the whole of the credit risk. He appeared on the credit insurance scene near the end of the 19th century, although it was not until 1903 that the Excess Insurance Company, established by him in 1894, commenced underwriting credit insurance. (From Introduction)
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ItemRailways and the development of Victoria, 1860-1900( 1973)This thesis attempts to assess the role of the railways in the economic development of Victoria in the nineteenth century. Although both forward and backward linkages are examined the main emphasis is on the forward linkage effects of the provision of railway services and reductions in freight rates. Considerable attention is devoted to the criteria used in formulating railway tariff policies. Throughout the nineteenth century railway managers were expected to operate the railways without incurring deficits but at the same time there were constant pressures, from both within and outside parliament, for railways to play a developmental role regardless of revenue considerations. There was no satisfactory resolution of the conflict between the rating criteria, and consequently railway rate adjustments tended to be ad hoc political responses to changing economic and social circumstances. In Victoria the railways were built and operated by the state and in a very real way they served as the instrument for the implementation of the social philosophy of the community. This was particularly so in regard to the development of agriculture and the railways were an essential complement to the land legislation which aimed at settling a considerable agricultural population in the countryside. Not only did the railways provide the essential transport infrastructure for an export orientated economy, but the extension of lines and downward adjustments of freight rates helped agriculture to remain viable during a long period of falling prices and declining yields. The railways exercised a considerable influence over the geographical pattern of economic activity in Victoria. In particular the differential rating system stimulated the growth of processing industries and commercial activity in Melbourne to the detriment of the inland towns. Preferential rates were used to attract the Riverina trade to Melbourne and in some cases were consciously used to favour metropolitan over provincial manufacturers. By providing an efficient and cheap transport system which served nearly every part of the colony the Victorian railways played an indispensible role in the economic development of Victoria in the nineteenth century. Railway investment and rating policies served the economic and social aspirations of the people then and provided the basis for further continuing development.