Walter Bagehot

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Walter Bagehot, mezzotint by Norman Hirst, after a photograph. (credit: Courtesy of the trustees of the British Museum; photograph, J.R. Freeman & Co. Ltd.)

(born Feb. 3, 1826, Langport, Somerset, Eng. — died March 24, 1877, Langport) English economist, political analyst, and journalist. While working in his uncle's bank, Bagehot wrote literary essays and economic articles that led to his involvement with The Economist. As its editor from 1860, he helped make it one of the leading business and political journals in the world. His classic The English Constitution (1867) describes how the British system of government really operates behind its facade. His other works include Physics and Politics (1872), one of the earliest attempts to apply the concept of evolution to societies, and Lombard Street (1873), a study of banking methods. His literary essays have been continually republished.

For more information on Walter Bagehot, visit Britannica.com.

The English economist, social theorist, and literary critic Walter Bagehot (1826-1877) was virtually the founder in England of political psychology and political sociology.

Walter Bagehot, born on Feb. 23, 1826, at Langport, Somerset, came of well-to-do, middle-class banking stock with literary leanings. At Bristol College (1839-1842) he was deeply influenced by studying anthropology with J. C. Prichard. He then spent 4 years at University College, London, where he and some friends formed a debating society. They also wandered about London in search of the great free-trade and Chartist orators. Even more crucial was his year of reading for a master's degree, especially in moral philosophy and political economy and in the early-19th-century English poets. Out of this reading came his first published essays, literary and economic, in a Unitarian journal, the Prospective Review. Yet he fumbled in finding his vocation, spending several wretched years reading for the bar at Lincoln's Inn before he decided against law as a career.

Bagehot sent letters back from a holiday trip in Paris which were published in seven installments as "Letters on the French Coup d'Etat of 1851." He was absorbed with the problem of national character and saw the convergence between culture, social structure, and personality structure.

Victorian England was neither the time nor the place for a free-wheeling writer's career, except perhaps in fiction. Bagehot was too closely in touch with the reality principle to forsake a day-to-day base for a career as a man of letters. He decided upon a life as a banker.

In 1857, his life changed. He met James Wilson, founder and editor of the Economist, a political, literary, and financial weekly. Bagehot married Wilson's daughter, and when Wilson died suddenly, Bagehot became managing director and then editor, a post he held until his death. Every week he wrote several leaders, or editorials, on the money market and political trends.

Three Great Books

The new direction of his writings bore fruit in the three great books of his career. The first, The English Constitution (1867), is the one for which he is best known. It described and analyzed not how the Constitution was supposed to work but how it did actually work, especially in its fusion of powers rather than formal separation of powers, with stress on the Cabinet as "a hyphen which joins, a buckle which fastens" the legislative and executive parts of the state.

His second book, Physics and Politics (1872), made less of a splash but dug deeper. From his reading in the evolutionists and anthropologists Bagehot asked what the new sciences could show about the source of political societies and their development from primitive human life. He used as an evolutionary frame a scheme of three stages: the preliminary age, when the problem was to get any sort of government started; the fighting age, when cohesion was sought through enlarging loyalties and through custom and law; and the age of discussion, when innovation broke the "cake of custom" and offered freer choices to the members of society.

His third book, Lombard Street (1873), a classic in financial writing, was an exposition of how the money market actually works. In the last decade of his life Bagehot became immersed not only in the normal functioning of the money market but also in its neuroses, pathology, and therapy, so that his suggestions for getting greater liquidity by enlarging the central gold reserves and his invention of the treasury bill as a means of government borrowing were taken seriously.

Bagehot died at Langport on March 24, 1877. The only unfulfilled part of his life lay in the frustration of his ambition to be a member of Parliament. A man of ironic detachment and biting wit, he lacked any warmth of relation to an audience and the needed "common touch."

His pamphlet "Parliamentary Reform" clearly shows that, while he was formally a liberal, his deeper instincts were those of a Burkean conservative; that he had little enchantment with the liberal and radical cult of the common man; and that membership in the polity was for him not a "leaves-of-grass" abstraction but an operational fact which depended on political education and intelligence. His viability rests with his profound understanding of political psychology.

Further Reading

Norman St. John-Stevas, ed., The Collected Works of Walter Bagehot (4 vols., 1965-1968), supersedes the editions by R. H. Hutton (1889) and by Mrs. Russell Barrington (1915). Bagehot's The English Constitution has been reprinted many times; see the editions by Lord Balfour (1933) and R. H. S. Crossman (1963). Good editions of Bagehot's Physics and Politics are by Jacques Barzun (1948) and Hans Kohn (1956). Hartley Withers's edition of Bagehot's Lombard Street (1915) is also recommended. A selection of Bagehot's political and historical essays, including "Letters on the French Coup d'Etat of 1851," is in Norman St. John-Stevas, ed., Bagehot's Historical Essays (1965).

The best biography of Bagehot is Alastair Buchan, The Spare Chancellor: The Life of Walter Bagehot (1959). The best bibliography is in Norman St. John-Stevas, Walter Bagehot: A Study of His Life and Thought (1959). See also Leslie Stephen, Studies of a Biographer, vol, 3 (1902; published in one volume, 1907); C. H. Driver, "Walter Bagehot and the Social Psychologists," in Fossey John Cobb Hearnshaw, ed., The Social and Political Ideas of Some Representative Thinkers of the Victorian Age (1933); Herbert Read, Collected Essays in Literary Criticism (1938; 2d ed. 1951); Max Lerner, "Walter Bagehot: A Credible Victorian," in his Ideas Are Weapons (1939); George Malcolm Young, Today and Yesterday (1948); Asa Briggs, Victorian People (1954); and Walter Edwards Houghton, The Victorian Frame of Mind, 1830-1870 (1957).

(1826-77) English journalist; editor of The Economist 1861-77. Best known for The English Constitution (1867), in which he distinguished between the ‘dignified’ and the ‘efficient’ parts of the constitution. The monarchy and other dignified parts of the constitution existed to give popular legitimacy to the inconspicuous cabinet—the ‘buckle’ which fastened the legislature to the executive. Bagehot wished to distinguish the ‘living reality’ of the constitution, in contrast to its ‘paper description’—an aim which has made him an enduring source for political scientists ever since.

Bagehot, Walter (1826-77). Journalist. From a banking family in Langport (Som.), his father a unitarian, Bagehot attended University College London and began to study law. But he moved into banking, wrote copiously, and from 1860 edited his father-in-law James Wilson's paper The Economist. Though capable of brilliant writing and subtle insights, much of Bagehot's work is marred by a habitual superciliousness towards the ‘stupid’ masses and his inability to resist a bon mot. His best-known work, The English Constitution, which came out in the 1860s, was enormously successful and seriously misleading. Written at the time of Victoria's seclusion after Albert's death, it is understandable that Bagehot should have exaggerated the weakness of the monarchy: ‘the queen must sign her own death warrant if the two Houses unanimously send it up to her’ is more piquant than profound.

Quotes:

"An ambassador is not simply an agent; he is also a spectacle."

"So long as war is the main business of nations, temporary despotism -- despotism during the campaign -- is indispensable."

"An element of exaggeration clings to the popular judgment: great vices are made greater, great virtues greater also; interesting incidents are made more interesting, softer legends more soft."

"The most intellectual of men are moved quite as much by the circumstances which they are used to as by their own will. The active voluntary part of a man is very small, and if it were not economized by a sleepy kind of habit, its results would be null."

"It is often said that men are ruled by their imaginations; but it would be truer to say they are governed by the weakness of their imaginations."

"One of the greatest pains to human nature is the pain of a new idea."

See more famous quotes by Walter Bagehot

Portrait of Walter Bagehot.

Walter Bagehot (pronounced /ˈbædʒət/ BA-jət) (3 February 1826 – 24 March 1877) was a British businessman, essayist, and journalist who wrote extensively about literature, government, and economic affairs.

Contents 1 Early Years 2 Career 3 Works 4 References 5 Literature 6 External links

Early Years

Bagehot was born in Langport, Somerset, England on 3 February 1826. His father, Thomas Walter Bagehot, was managing director and vice-chairman of Stuckey's Banking Company. He attended University College London, where he studied mathematics and in 1848 earned a master's degree in intellectual and moral philosophy.^[1] In April 1848, Bagehot was sworn as a Special Constable in anticipation of Chartist riots in London.^[2]

Career

Bagehot was called to the bar by Lincoln's Inn, but preferred to join his father in 1852 in his family's shipping and banking business. He wrote for various periodicals, and in 1855 founded the National Review with his friend Richard Holt Hutton.^[3][4] Later becoming editor-in-chief of The Economist, which had been founded by his father-in-law, James Wilson, in 1860, Bagehot expanded The Economist's reporting on the United States and on politics and is considered to have increased its influence among policymakers over the seventeen years he served as editor. In honour of his contributions, the paper's weekly commentary on current affairs in the UK is entitled "Bagehot," just as its "Lexington" column addresses the United States, "Charlemagne" addresses Europe, "Banyan" addresses Asia, and "Buttonwood" addresses economic affairs.

In 1867, he wrote a book called The English Constitution that explored the nature of the constitution of the United Kingdom, specifically the functioning of Parliament and the British monarchy and the contrasts between British and American government. The book is considered a classic and has been translated into many languages.

Bagehot also wrote Physics and Politics (1872), in which he coined the still-current expression, "the cake of custom," to describe the tension between social institutions and innovations. Lombard Street (1873), explains the world of finance and banking and focuses particularly on issues in the management of financial crises. In his contributions to sociological theory within historical studies, Bagehot may be compared to his contemporary, Henry James Sumner Maine.

Collections of Bagehot's literary, political, and economic essays were published after his death. Their subjects ranged from Shakespeare and Disraeli to the price of silver.

Every year, the British Political Studies Association awards the Walter Bagehot Prize for the best dissertation in the field of government and public administration.

Recently, Bagehot has come to people's attention in connection with the Federal Reserve's bail out of the financial system in 2008-9. Paul Tucker recently summarized Bagehot's dictum as follows: "[T]o avert panic, central banks should lend early and freely (ie without limit), to solvent firms, against good collateral, and at 'high rates.'* " This was a basis for the Federal Reserve's successful effort to deal with financial crisis. Bagehot goes on to say (Bagehot, Lombard Streetpp. 51-2), "The way in which the panic of 1825 was stopped by advancing money has been described in so broad and graphic a way that the passage has become classical. 'We lent it,' said Mr. Harman, on behalf of the Bank of England, 'by every possible means and in modes we had never adopted before; we took in stock on security, we purchased Exchequer bills, we made advances on Exchequer bills, we not only discounted outright, but we made advances on the deposit of bills of exchange to an immense amount[,] in short, by every possible means consistent with the safety of the Bank, and we were not on some occasions over-nice....' After a day or two of this treatment, the entire panic subsided, and the 'City' was quite calm."

• Paul Tucker (2009), "The Repertoire of Official Sector Interventions in the Financial System: Last Resort Lending, Market-Making, and Capital (90 KB PDF)," remarks at the Bank of Japan 2009 International Conference on the Financial System and Monetary Policy Implementation, Bank of Japan, Tokyo, May 27-28, p. 5.

Works

• The Collected Works of Walter Bagehot: Volumes 1-15, ed. Norman S. John-Stevas, New York, Oxford U. Press, (1986) ISBN 0850580390
• Emily (Mrs Russell) Barrington, ed., The Works and Life of Walter Bagehot, in 10 vols. London, Longman, Green (1915) On line.
• The Postulates of English Political Economy, with a Preface by Alfred Marshall, London, Longmans Green & Co. (1885); Google Books, online
• Economic Studies, ed. Richard Holt Hutton, London, Bombay and Calcutta, Longmans, Green (1879); New York, Augustus M. Kelley (1998) ISBN 0678008523

References

1. ^ Richard Holt Hutton, "Memoir" and "Second Memoir" (from Dictionary of National Biography), in Mrs Russell Barrington, ed., The Works and Life of Walter Bagehot, London, Longman, Green (1915)
2. ^ Hanley, Brian (2004), ""The Greatest Victorian" in the New Century: The Enduring Relevance of Walter Bagehot's Commentary on Literature, Scholarship, and Public Life", Papers on Language & Literature 40 
3. ^ Walter Bagehot by St. Norman John-Stevas THE BRITISH COUNCIL/NATIONAL BOOK LEAGUE/LONGMANS, GREEN & CO. London. (1963)
4. ^ Andrew King, John Plunkett (2005). Victorian Print Media: A Reader. Oxford University Press. pp. p. 50. ISBN 0199270376. "National Review (1855-64) was one of the most prestigious quarterlies of mid-century" 

Literature

Wikisource has original works written by or about: Walter Bagehot

Wikiquote has a collection of quotations related to: Walter Bagehot

• Brian Hanley, "'The Greatest Victorian' in the New Century: The Enduring Relevance of Walter Bagehot's Commentary on Literature, Scholarship, and Public Life", Papers on Language and Literature, (Spring 2004)
• The Pursuit of Reason: The Economist 1843-1993, Harvard Business School Press, Boston, Massachusetts ISBN 0-87584-608-4
•  John William Cousin, “Bagehot, Walter,” in A Short Biographical Dictionary of English Literature, London: J. M. Dent & Sons, 1910.
•  "Bagehot, Walter". Encyclopædia Britannica (11th ed.). 1911. 

External links

• Works by Walter Bagehot at Project Gutenberg
• Works by Walter Bagehot at Internet Archive

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