Chapter

‘Rivalry and Collaboration’: Relations between Buenos Aires Merchant Bankers and European Bankers in the Issue of Argentine Government Bonds in the 1880s

Carlos Marichal

in Financial Centres and International Capital Flows in the Nineteenth and Twentieth Centuries

Published in print July 2011 | ISBN: 9780199603503
Published online September 2011 | e-ISBN: 9780191729249 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199603503.003.0004
‘Rivalry and Collaboration’: Relations between Buenos Aires Merchant Bankers and European Bankers in the Issue of Argentine Government Bonds in the 1880s

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In this chapter attention is focused on the role of merchant and investment bankers on both sides of the Atlantic who were key actors in establishing bridges between the financial markets of Latin America and those of Europe in the 1880's. The focus is on Argentina because it was the largest debtor in Latin America in this decade and because it was able to place bonds on different European financial markets, including London, Paris, Berlin, and Brussels. The main argument of the chapter is that a full understanding of international capital flows requires an understanding of the dynamics of actors in both the emerging financial markets of debtor states and in the mature financial markets of the main capital supplying nations. A comparative review of Argentine international bond issues in the 1880s reveals the key role of local merchant bankers in establishing alliances with European bankers that were essential to placement of loans as well as to the increase of foreign direct investments.

Keywords: capital flows; foreign loans; bonds; banks; bankers; Britain; France; Germany; Argentina; financial markets; railway construction

Chapter.  11473 words.  Illustrated.

Subjects: Business History

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