Church funds used for credit in eighteenth- and nineteenth-century rural Sweden

Abstract

ABSTRACT Private lenders are still considered to have been the dominant lenders in the eighteenth and nineteenth centuries, although various types of institutional lenders appeared from the late 1700s onwards. This paper analyses one of the earlier and probably underestimated institutional lenders in northern Europe, the Church, using Sweden as a case study. As late as 1834, the Swedish church lent about the same amount of money as all other credit institutions combined. Using a government survey from 1857 with data from 400 parishes, and accounts from 14 parishes 1770–1890, we can show that all parishes had funds, with about 80–90 per cent of the capital in loans. The funds were growing in size and lending was extensive, primarily for constructing new church buildings. However, the funds also played an important role in the local economy. The largest funds and most extensive lending were found in areas with landed estates and high levels of urbanisation, while funds in poorer areas were considered to be poor relief funds. Lending from church funds declined after the 1860s, but not rapidly. The church was probably seen as an attractive option when money was needed, located close by and controlled by the parishioners.