Jump to ContentJump to Main Navigation
Accounting for the Fall of SilverHedging Currency Risk in Long-Distance Trade with Asia, 1870-1913$
Users without a subscription are not able to see the full content.

Michael Schiltz

Print publication date: 2020

Print ISBN-13: 9780198865025

Published to Oxford Scholarship Online: October 2020

DOI: 10.1093/oso/9780198865025.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use.date: 27 January 2022

‘On an Even Keel’

‘On an Even Keel’

Hedging Exchange Rate Risk on the Branch Network Level

Chapter:
(p.67) 4 ‘On an Even Keel’
Source:
Accounting for the Fall of Silver
Author(s):

Michael Schiltz

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198865025.003.0004

Drawing on descriptive evidence from journalistic outlets in nineteenth-century Shanghai, this chapter reconstructs the debate on how fluctuations in the silver price could be accommodated in bill finance. It is demonstrated that this was effectuated by means of the ‘even keel’, a management strategy arguably pioneered by the Hongkong and Shanghai Banking Corporation (HSBC). Concretely, amounts of bills bought were matched by amounts of bills sold; bankers used ‘swap’ operations (i.e., they simultaneously purchased and sold bills in one currency for bills in another currency for the same quantity, in order to offset them) in order to eliminate exchange rate risk. This is shown quantitatively by means of flow-of-funds data of the Yokohama Specie Bank. The chapter concludes with several admonitions for existing macro-historical research.

Keywords:   hedging exchange rate risk, HSBC, ‘even keel’ policy, bank management history, flow-of-funds, gold and silver

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .