Which reason explains why joint stock companies were created to fund
british colonial settlements instead of the option suggested in this excerpt?
reasons or motives for the raising of a public stock
to be employed for the peopling and discovering of such
countries as may be found most convenient for the supply
of those defects which this realm of england most
requires
where colonies are founded for a public (welfare), they
may continue in better obedience and become more
industrious than where private men are absolute backers
of a voyage. men of better behavior and quality will engage
themselves in a public service, which carries more
reputation with it, than a private, which is for the most part
ignominious in the end, because it is presumed to aim at a
profit and is subject to rivalry, fraud, and envy, and when it
is at the greatest height of fortune can hardly be tolerated
because of the jealousy of the state.
- "reasons for raising a fund to settle america on the
value of colonies to england," 1607
o
a. private investors had to have public guarantees in order to invest
in establishing overseas colonies.
o
b. groups of investors, rather than the state, shared responsibility for
the financial risks of the settlement.
o
c. the state had a greater ability to raise funds for colonial
settlements than private investors.
o
d. state-funded colonial settlements would return greater profits to
the state than privately funded settlements