The Bank of England was established in 1694, and the first private British banks were found in the early 1700s. The background of those who invested in factories and machinery was quite diverse and cannot be identified as belonging to a single class of people. The domestic savings rate was high, and therefore savings was the primary way to finance investment. The manufacturers reinvested a substantial portion of their profit into their company. The industrialists used long-term capital to expand their present operations and short-term capital to acquire raw materials, maintain inventories, pay wages.
Author: Elise S. Brezis