Two Portrayals of Public Debt in the Formation of Modern Italy: From the Ancien Régime to Modern Capitalism

Abstract

The unification of Italian public debts in 1861 has been analysed until now without any detailed investigation into the changes that occurred in pre-existent public finance models, particularly as regards the contextualisation of public debt within the evolving framework of Italian capitalism. The Kingdom of Sardinia imposed on the other Italian regions not merely a state, bureaucratic and administrative system, but also an economic and financial one: a modern liberal-capitalist model of northern European origin and inspiration. The transition and incorporation of the Neapolitan public debt into the Great Book of the Italian Public Debt bear witness to this change. The aim of the present article is to investigate the transformation of the Italian public debt's structure. I explore specifically the effects of the shift from registered bonds to bearer bonds in Naples, as exemplifying a more radical metamorphosis and the transition from a public finance model typical of the ancien régime to the modern liberal-capitalist one, which is characterised by the Kingdom of Sardinia.