Competition and financial stability Essay Example | Topics and Well Written Essays - 2000 words

Competition and financial stability - Essay Example The competition is always seen as a requirement necessary for efficiency of the banking system. Although varied theoretical and empirical studies have attempted to argue that monopoly offer banks higher incentives to improve their financial performance, competition in the banking sector have also enabled banks to compete favorably; thus enabling banks to achieve their demanding needs effectively (Schinasi and International Monetary Fund, 2006). This is because of the notion that vulnerability and restraints on competition are necessary for preserving the stability of the banking system in the current financial market; therefore, the essay offers a critical assessment of the trade-offs between competition in the banking system and financial stability. Advantages of Competition Competition is desirable in the banking system because it contributes to increased competitive business performance across the banking sector (Marinc, 2012). The charter-value for competition stability theory as sumes that the more concentrated and less competitive banking systems, the higher chances of becoming more stable. The contrasting perspective to this theory is that a more concentrated banking structure may lead to more bank frailty. Boyd, De Nicolo and Jalal (2010) argue that market control in banking system increases profits, but bank steadiness ignores the prospective impact of market powers for banks. The authors argue that the higher interest rates in the banking sector may induce the banking industries to assume greater risks; hence, they find a positive relationship between concentration and bank fragility (Kohn, 2003). Many banking system support competition feebleness and this had significantly contributed to financial volatility in many banks across Canada and the UK. Therefore, the less bank rivalry, the less credit rationing and higher chance of malfunction in case loans are subjected to multiplicative reservations. Competition and higher level of concentration in the b anking sector can also create a positive impact on liability menace. Boyd, De, Jalal and International Monetary Fund (2009) argue that less competition in banking system can contribute to more financial stability in case information about the probability distribution of liquidity of the depositor is private. Allen, Carletti, Gale and Centre for Economic Policy Research (2011) assert that it is crucial to prevent banks from taking excessive risks in the competitive markets. Hence, the deposit interest rate ceilings are vital even with capital requirements. Beck, Beck and World Bank (2008) argues that concentration is not a consistent rivalry signal in the banking sector; thus, the bank illiquidity can augment in any fiscal market structure. Therefore, lower competition in the banking system is crucial because it enables banking relationships to endure for a long period. Drawbacks of Competition Competition in the financial market can impact steadiness in the banking system in diverse ways; first, competition can impact financial stability is through the interbank market system and through the payment system channels. Allen and Gale (2000) argue that perfect competition can prevent banks from offering liquidity to other banks that have been strike by short-term liquidity shortage. Therefore, there is no bank that will have adequate incentive to offer liquidity to the banks that have problems in case all banks are price takers.

Black Men and Public Spaces Essay Example for Free

Black Men and Public Spaces Essay The name of the story is Black Men and Public Spaces. It was written by Brent Staples in 1986. Brent Staples is a black man who whenever in public is met with fear from others because of his races stereotype. Feeling like a potential perpetrator can be just as unnerving as feeling like a potential victim. Staples has the ability to alter public space by his physical behavior, his dress and his verbal reaction. Black men have a reputation of being rapist, murders and gang members, therefore many people get worried when a young black man is around. So Staples has learned how to change his perception or level of threat to others. He accomplishes this by his physical behavior. The way he walks or acts around others can change there mood. Now Staples notices if people are frightened by him. Brent Staples attempts to introduce people to something most all are guilty of, but pay little attention to. Using accounts from his own and others’ experiences, Staples essay portrays the racist tendency of people to assume black men are potentially violent and dangerous. Stereotypes are so common in our world today and people don’t even notice how bad they portray it. I hate seeing that a man had to force himself to change the way he acts and portrays himself in public. Why should someone change their ways? It made me think of a time when I was getting gas on Green River Road near Washington Avenue. I was almost done when a car with two black men pulled up and stepped out of their car. I was nervous so I stopped and got into my car real quick. Now that I think about it those men weren’t doing anything, just grabbing some late night food. How could I be that bad of a person? I know now that was wrong of me and I’m working on it. I hope someday society will realize what they are doing and change it. Not just for their sake but for mankind. Staples was viewed as a rapist, murder, and etcetera, all because he was a black man. But in reality he was just as uncomfortable as everyone who looked at him differently. Brent Staples tries to make people aware of what they are guilty of and someday all will realize.

Banking Structures and Regulation in the UK

Banking Structures and Regulation in the UK Part 1 Bank Structure and Regulation in the UK The uks banking system falls into the â€Å"restricted universal† category because banks are discouraged from owning commercial concerns. It is made up of: commercial banks consisting of the â€Å"big bang† uk banks, HSBC (Hong Kong Shanghai Banking Corporation), the Royal Bank of Scotland group, HBOS (Halifax Bank of Scotland) and Barclays, with tier 1 capital in 2005 ranging from $35 billion (HSBC) to $19 billion (Barclays) and the group together with about a dozen or so other major banks including Lloyds-TSB ($ 2.5 billion), abbey national, standard chartered and Alliance and Leicester ($ 2.5 billion). The big four, and some of the other banks, engage in retail, wholesale and investment banking, and some have insurance subsidiaries. By the turn of the century, many of the traditional English merchant had been bought by foreign concerns, beginning with Deutsches purchase of Morgan Grenfell bank in 1988. Kleinwort Benson was bought by Dresdner, and the Warburgs by the union bank of Switzerland. Barings having collapsed in 1995 was bought by ING, but Later closed. Some building societies converted to banks following the building societies Act,  1986. Effective January 1987, the Act allowed building societies to convert to bank plc status, to be supervised by bank of England and protected from hostile takeover for five years. Most of the top ten (by the size) building societies in 1986 had, by the new century, given up their mutual status. The early conversions were Abbey National (1989), Bristol and west, Cheltenham and Gloucester (1992; a subsidiary of Lloyds TSB). Building societies that converted between 1995-7 were the Halifax (after a merger with Leeds BS), Alliance Leicester, Northern Rock and Woolwich (taken over by Barclays in 2000). Birmingham Midshires was purchased by the Halifax in 1999; Bradford Bingly converted in 2000. Building societies have a long history in British retail finance. Member of the a society paid subscriptions, and once there was enough funding, a selection procedure determined the member who would receive funds for house purchase or building. In 1945 permanent societies began to form, members kept a share a (deposit) account at a society and could, after period of time, expect to be granted a mortgage. Over time, depositor and mortgages were not necessarily from the same group. As mutual organisation, every customer (depositor or borrower) has a share in the society, with the right to vote on key managerial change. Each vote carries  the same weight, independent of the size of deposit mortgage or loan. In 1984, an informal but effective cartel linking the building societies dissolved after Abbey National broke ranks,(2008 Abbey bank merger with European bank Santander) by the time, many of the large societies viewed the â€Å"big four† and other banks as their main competitor. The Building Societies Act (1986) took effect in January 1987, and allowed building societies to offer a full range of retail banking services typical of a bank. The Act specified the financial activities a building society could undertake, namely: Offering a money transmission service through cheque books and credit cards. Personal loans, unsecured. Foreign currency exchange. Investment management and advice. Stock broking. Provision and underwriting of insurance, Expansion into other Eu states. Real estate services. However, there important restrictions: 90% of the building societys asset had to be resident mortgage, and wholesale money plus deposit could not exceed 20% of liabilities, subsequently raised to 40% then 50%. In 1986 act also gave these organisations the option of converting to bank status and as a results, the number of building societies fell dramatically as table1.1 shows The investment banking industry is dominated by major us and European banks including Goldman sachs, Morgen Stenly, Lehman Brothers, Merrill Lynch, uBS, Deutsche bank and credit Suisse. In additions the main uk banks also have investment banking subsidiaries (e.g. Barclays Capital). There are few independent uk merchant banks as most have been acquired by overseas investment and commercial banks. Recent Changes in Retail banking structure To operate in the retail markets, bank have traditionally required an extensive branch network. However, technological developments in particular the growth in automated teller machine (ATM) networks, telephone/internet banking, mobile phones and interactive digital television have enabled a new type of bank to emerge that does not need branches to conduct business. In uk the pioneer was First Direct, which began as a telephone bank in 1989 and is an operation of HSBC, one of the large clearing banks. By 2002 First Direct had around 1 million customer and offered a full range of retail bank services, from cheque accounts to personal loans. Over half of the customers First Direct regularly use internet to access their account. Most of the other established banks in the uk have followed the lead of HSBC and started up a remote banking service that allows customers to access their account using the telephone, internet or mobile phone. The british Bankers association (2002) reported that , in 2001, one third of all bank accounts were accessed through the telephone or internet. Of these remote transactions, it is the internet that now dominates, accounting for 167 million transaction in 2001 compared with 127 million telephone transactions. In late 1980s numbers of branch declined because of technology innovation. the introduction of ATMs (at the branch and remote location grew significantly. there was also a substantial growth in electronic funds transfer at point of sale (EFTPOS) terminals from 4,640 in 1993 to 8,984 in 1997 further reflecting the trend to supplement tradition with new distribution channels. These terminals are placed in retail stores, shopping centres , petrol stations and so on. That process credit and debit cards payments. The number of such terminals is believed to have exceed 11000 by 2004. Some of the banks proved pay-in machines out side the banks branches for 24/7. The reason for shifts from branches to other means of financial service firms desire to improve operating efficiency as well as customers increasing demands to access banking services outside traditional hours. As the banks and building societies branches fall rapidly the unemployment increased. The fall in staff employed is particularly noticeable for retail banks (it fell by round 75,000 between 1990 and 1996), although retail bank employment increased from then onwards by over 45,000 to reach just over 346000 by the of 2004. But from early 2008 to 2009 many branches closed because of recession (banking crisis), and by 2010 RBS plc will closed 300 more branches, in results 3,500 bank staff will become jobless. The increased in employment after 1996 is imputable to building societies conversion to bank plc. In addition there has been a substantial increase in employment by foreign banks since 1996 up to 2001 reflecting the booming capital markets activity of foreign owned investment banks in London. The graph shows that all the main banks have maintained relatively stable staff levels in recent years. It should noted that RBS acquired NatWest in 2000, large decline in NatWest is mirror by the increased at Royal Bank of Scotland. In 2004 330,700 staff were employed by Major Bank British Groups. Interesting to note that 63 per cent were female, of whom 76,300 were employed as part time worker. Throughout the 1995 there has been a gradual increase in the number of part time employed in the banking sector mainly in retail banking sector. Again the general decline in total employment in the banking sector and the increase in part time employment, are indicators of the banks desire to improve their operating efficiently. Recent development in the uk financial system. There has been a tremendous change in the uk financial system since the early 1980s. The change that have been taken place can be analysed in a systematic way. This analyse adapted from Llewellyn (19985, 1991), provides a framework for assessing and interpreting the more specific discussion of event in financial market. Some of the main force leading to the modification of any financial system are. Change in the market environment. Change in the portfolio preferences of user of financial intermediation services. Change in the preference of and constraints on the providers of financial intermediation services. The interaction of these forces produces financial innovation, which is essentially the development of new financial instruments and techniques of financial intermediation, and structural change in the financial system with appearance of new financial markets and change in the organisation and behaviour of institutions. Over the postwar period up to the end of the 1960s the uk financial system was characterised by strict demarcation between the various types of financial insititusions. So banks provides banking services and building societies provides housing finance services. As a consequence there was also little competition between the different types of institution. There was also little competition within a particular financial markets as, for example, banks and building societies operated cartels which set interest rates. Similarly within stock markets, restrictive practise, in particular the existence of minimum non negotiable commission, had the effect of reducing competition. In 1971 reform of the banking system, through a package of measure know as competition and credit control, led to the removal of the banking system cartel and greater competition within the industry. However, most of the deregulation of the financial system occurred after 1980, with the aim of introducing greater compe tition, alongside this deregulation there was a parallel trend to tighten up the prudential intermediation services. In 1980 controls on banking lending were abandoned, leaving banks free to expand into new areas and one areas which was targeted was housing finance. Banks therefore entered into competition with building societies. Which led to building societies abandoning their cartel arrangement, and in 1986 to the building societies act, which relaxed to some extent, the constraints imposed on building societies. Competition in uk banking the Cruickshank report The terms of reference for the enquiry were to examine innovation, competition and efficient in the retail banking industry in the uk, to see how these compared with international standards and to consider options for change. The enquiry team reported in March 2000(Cruickshank 2000). The report identifies that banks are treated differently from other industries in many respects, including high regulatory barriers to entry and diluted exposure to competition law. This special treatment is likely to be the result of an informal contract between government and banks, designed to deliver confident in the banking system. However the report argues that this special treatment of the industry has allowed banks to escape the rigours of effective competition. This conclusion is supported by reference to the fact that the return on equity for uk banks is well in excess of their cost of capital. The three areas of retail banking investigated in depth were, the payment system; services to personal customers (current accounts, saving products, personal loans, mortgages and credit cards); and services to small and medium-sized businesses (current accounts and external finance). Competition problems were found in each area. However, the report noted that, as a result of new entrants into the market for the supply of services to personal customers, competition is increasing and prices should fall in the future. The most severe competition problems were found in the payments services and as the current account is one of the main products provided to retail and small business customers, restrictions in payments services have an impact on other retail banking markets. The uk payments system consists of a series of unregulated networks (such as the bankers automated clearing services and ATM networks) mostly controlled by the main banks. Access to the system is restricted to banks or similar institutions. This clearing creates barriers to entry and therefore stifles innovation and competition. The Cruickshank committee recommended the establishment of a payments system regulator with power to deliver competitive outcomes. The government has instead proposed that the office of fair trading (OFT) be given new power to promote competition in payment system. The Cruickshank reviews also concluded that the supply of banking services to small and medium sized business was less competitive than the supply to personal customers. The market is more concentrated and has higher barriers to entry. As a consequence the government referred the problem to the competition commission. The competition commission confirmed that a complex monopoly exists in the supply of banking services to small and medium- sized business(competition commission 2002). It recommended a number of measures to reduce restrictive practices, including allowing small business customer to switch account to other banks quickly and with minimum cost. VSA Banking Structure and Regulation The central bank and bank supervisory function in the VSA have evolved to create a VS banking and financial structure which, by the late 20th century, was notably different from those in other western countries. Several factors explain its unique structure. First VS regulators have been far more inclined to seek statutory remedies in the event of a new problem, resulting in a plethora of legislation. Second the protection of small depositors has been considered an important objective since the 1930s. Third, concern about potential collusion among banks and between banks and regulators has received as much weight in the VSA as measures were put in place to preserve the stability of the banking system. However, two important financial reforms could result in gradual but major change in the structure of VS banking over the first decade of the new century. The most PART 2 1: CALL OPTION A OPTION that give the HOLDER the right but not the obligation to Buy a stated quantity of the underlying instrument at a specified price on or with in a predetermined period of time. 1.1: PuT OPTION A OPTION that give the HOLDER the right but not the obligation to Sell a stated quantity of the underlying instrument at a specified price on or within a predetermined period of time. CALL OPTION So=  £3.00 X =  £3.25 Period until maturity = 1 year Upwards price at 1 year =  £6.00 Downwards price at year =  £1.50 Risk free interest = 5% T= 0 T=1 Uso = 6.00 So = 3 Dso = 1.50 Max (uso X, 0) (6-3.25,0) = 2.75 Co = Max (Dso X, 0) (1.50- 3.25 , 0)= 0 6xY + (1+rf)Z P.Fo = 1x Y+Z 1.5x Y+(1+rf)Z Create a portfolio today by Y(number of shares) in BRIGHT Ventures plc and deposit  £Z at risk free interest rate for 1 year. Today P.F = 1xY+Z After One year If the shares price increase  £ 6xY+ (1+rf)Z = 2.75 If the shares price decrease  £ 1.5xY+(1+rf)Z=0 6.0xY+1.05Z=2.75 1.5xY+1.05Z=0 4.5Y= 2.75 Y= 2.75/4.5 Y= 0.61111 1.50.61111+1.05Z=0 0.9167+1.05Z=0 1.05Z= 0.9167 Z= -0.9167/1.05 Z= 0.873 P.F = 1xY+Z P.F = 30.61111+ 0.873 P.F= 0.96033 PuT OPTION So=  £3.00 X =  £3.25 Period until maturity = 1 year Upwards price at 1 year =  £6.00 Downwards price at year =  £1.50 Risk free interest = 5% Uso= 6.00 So = 3 Dso= 1.50 Max (X uso , 0) (3.25- 6, 0)= 0 Po= Max (X- dso, 0) (3.25-1.50, 0)= 1.75 6.0xY+(1+rf)Z P.Fo= 1xY+Z 1.5xY+(1+rf)Z Create a portfolio today by Y(number of shares) in BRIGHT Ventures plc and deposit  £Z at risk free interest rate for 1 year. Today P.F = 1xY+Z After One year If the shares price increase  £ 6xY+ (1+rf)Z = 0 If the shares price decrease  £ 1.5xY+(1+rf)Z= 1.75 6.0xY+1.05Z=0 1.5xY+1.05Z=1.75 4.5Y= 1.75 Y= -1.75/4.5 Y= 0.3889 6x 0.3889 + 1.05Z = 0 -2.3334 + 1.05Z = 0 1.05Z= 2.3334 Z= 2.3334/ 1.05 Z= 2.2223 P.F= 1xY+Z P.F = 3x 0.3889 + 2.2223 P.F= 1.0556 Put-Call-Parity The Put + underlying Security price = call + P.V[ X] P.V[X]= exercise price / 1 + rf P.V[X]= 3.095 Put + 3.00 = 0.96033 + 3.095 Put + 3.00= 4.05533 Put = 4.05533 3.00 Put = 1.05533 Black scholes Model Co = SxN (d1) Xe⠁ »rt N (d2) d1= ln (S/X)+ (r + v ²/2)t V √ t d2= d1 -V √ t d1 = ln (3/3.25) + (0.05 + 0.40 ²/2)1 0.40√ 1 d1= 0.0800+ ( 0.05 + .16/2)1 0.4 d1= 0.0800 + 0.13 .04 d1= 0.125 d2= 0.125 0.4 √ 1 d2= 0.275 d1= 0.125 d2= 0.275 N(d1)= Pr [Z ≠¤ 0.125] = 0.8944 N(d2)= Pr [Z ≠¤- 0.275] = 0.3936 Co = SN (d1) Xe⠁ »rt N(d2) Co = 3x 0.8944 3.25e⠁ »0.05 (0.3936) C0 = 2.6832 3.25 x 0.9512 x 0.3936 C0 = 2.6832 1.2168 Co= 1.4664

Behavior Changes of MDMA :: Illegal Drugs Medical Psychology Ecstasy Essays

Behavior Changes of MDMA The secondary effects on behavior are expressed in several ways that differ from one person to the next. These effects can range from memory impairment and anxiety, to depression and mood swings. They are a direct result of the chemical changes within the body that occur when someone uses ecstasy. I will discuss the range of effects in more detail, with explanations that get to the root causes for each. One of the major behavior changes, after the effects of the drug have worn off, is a symptom of the reduced levels of serotonin in the brain. As ecstasy infiltrates the brain tissues, its effects cause the brain to produce copious amounts of serotonin. Following such an extreme release of this neurotransmitter, the brain goes through of period of time in which it has a below normal level of serotonin. This reduced level creates elevated levels of anxiety in users, and can often result in panic attacks that persist for several months following the use of the drug. However, it is important to note that, according to a study from the European Journal of Pharmacology (Gurtman, et al, 2002); "whether such effects are a direct result of MDMA use†¦ is, at present, uncertain." This admission goes to show that correlation doesn't mean causation, and that until further research can be done we can only speculate about the relationship between the two. Another side effect, that is reported to be affected by the levels of serotonin in the brain, is that of memory functioning. Several different areas of memory are included in this assertion, including cognitive capacity, recall over time, and planning ability. It is suggested that heavy users, when compared to a control group, have a harder time with primary areas of brain functioning that relate to memory. In a study conducted at the University of Cologne, in Germany (Gouzoulis- Mayfrank, et. al, 2004), research indicates that, "findings of relatively low memory performance associated with heavy ecstasy use have been relatively consistent across different studies and user populations." This assertion is fairly recent in the literature, which would suggest that the findings have taken note of the broad range of studies that came before it. With that said, it's hard to ignore the idea that a drug that induces such euphoric effects on the mindset of an

Importance of Electricity

IMPORTANCE OF ELECTRICITY The greatest scientific achievement of the nineteenth century is the discovery of electricity. The twentieth century is making use of electricity so extensively that it has almost changed the face of the earth. â€Å"Electricity—carrier of light and power, devourer of time and space, bearer of human speech over land and sea, is the greatest servant of man, though it is itself unknown. Lenin saw Russia's hydro-electrical potentialities. The application of electricity to industry and agriculture was Lenin's dream. In India, we have staked our whole future on a rapid growth of our hydroelectric power. The modern age is the age of machinery. The true object of substituting human labour by mechanical labour is to find greater leisure for man. Machines must be driven by natural power. And the most pervasive of all sources of natural power is electricity, mechanical, hydro wind followed by electronics now-a-days. Look at life today in a modern city. Electricity regulates the clock that rouses us from bed; boils the water that makes our tea, cooks our food on heat-proof cooking ranges or cookers; works the radio and TV that tell us the news; rings the bell that announces a visitor; carries our telegraphic message to distant places; conveys us to our office in luxurious tram-cars and trains; takes us to our room somewhere in some multi-stroied building on elevators; electricity lifts; refrigerates the food to keep it completely fresh; lights our rooms when the sun goes down; warms it in winter and cools it in summer; in short, does everything for our comfort and convenience with the utmost efficiency at all hours. To generate and harness electricity on a large scale means the development of machinery capable of doing so. The various multipurpose schemes, which we are running at such a heavy cost over the years, are for the production of large-scale electricity. But most of our electricity was based on coal: the total output was lamentably low. Now that such multipurpose schemes as those of Bhakra Nangal, Damodar Valley or Hirakud have made it possible to provide to even remote villages with electric powers, and help change life beyond recognition. India's resources for generating electricity are second to no other country in the world. Even some Atomic plants have generating electricity. Importance of Electricity IMPORTANCE OF ELECTRICITY The greatest scientific achievement of the nineteenth century is the discovery of electricity. The twentieth century is making use of electricity so extensively that it has almost changed the face of the earth. â€Å"Electricity—carrier of light and power, devourer of time and space, bearer of human speech over land and sea, is the greatest servant of man, though it is itself unknown. Lenin saw Russia's hydro-electrical potentialities. The application of electricity to industry and agriculture was Lenin's dream. In India, we have staked our whole future on a rapid growth of our hydroelectric power. The modern age is the age of machinery. The true object of substituting human labour by mechanical labour is to find greater leisure for man. Machines must be driven by natural power. And the most pervasive of all sources of natural power is electricity, mechanical, hydro wind followed by electronics now-a-days. Look at life today in a modern city. Electricity regulates the clock that rouses us from bed; boils the water that makes our tea, cooks our food on heat-proof cooking ranges or cookers; works the radio and TV that tell us the news; rings the bell that announces a visitor; carries our telegraphic message to distant places; conveys us to our office in luxurious tram-cars and trains; takes us to our room somewhere in some multi-stroied building on elevators; electricity lifts; refrigerates the food to keep it completely fresh; lights our rooms when the sun goes down; warms it in winter and cools it in summer; in short, does everything for our comfort and convenience with the utmost efficiency at all hours. To generate and harness electricity on a large scale means the development of machinery capable of doing so. The various multipurpose schemes, which we are running at such a heavy cost over the years, are for the production of large-scale electricity. But most of our electricity was based on coal: the total output was lamentably low. Now that such multipurpose schemes as those of Bhakra Nangal, Damodar Valley or Hirakud have made it possible to provide to even remote villages with electric powers, and help change life beyond recognition. India's resources for generating electricity are second to no other country in the world. Even some Atomic plants have generating electricity.

How significant was James Simpsons role in solving the problem of surgery during the 19th century?

During the 19th century, there were many attempts to perform surgery without there being any risk towards the patient. This usually meant that the surgeons had to overcome problems of pain, infection and blood loss which were the three main ways in which patients died during surgery. Many individuals discovered methods to make surgery safer. One of these men was a Scottish doctor, by the name of James Simpson, who discovered the anesthetic properties of chloroform and successfully introduced it for general medical use. Of course, there were other individuals who had used different varieties of anaesthetics before James Simpson. In 1799 Sir Humphrey Davy discovered laughing gas which reduced pain felt by patients. It was mostly used by dentists during teeth extractions, which caused excruciating pain. In 1846, J. R Lister used ‘ether' as an anaesthetic so the patient would be unconscious during operation. However this was soon dismissed as it irritated the lungs and caused the patient to cough during the operation as well as the fact that ether is highly flammable. The fact that others had already tried to come up with suitable anaesthetics that could be used in surgery shows that James Simpson's discovery had been built up with knowledge of previous attempts. It also proves that he wasn't solely responsible for discovering ‘anaesthetics'. James Simpson was appointed the Professor of Midwifery at Edinburgh University due to his interest in obstetrics. In 1847, Simpson discovered the properties of chloroform during an experiment with friends in which he learnt that it could be used to put one to sleep. It was very much up to chance that Simpson survived the chloroform dosage he administered to himself. If he had inhaled too much, subsequently passing away from an overdose, chloroform would have been seen as a dangerous substance. However, if Simpson had inhaled slightly less it would not have put him to sleep. It was his willingness to explore the possibilities of the substance that established his career as a pioneer in the field of medicine. He began to use chloroform as an efficient and effective anaesthetic used to relieve labour pains during childbirth. This theory of relieving patients from pain spread across to many other surgeons who began using this method of anaesthesia. James Simpson was able to find an actual anaesthetic that was suitable in surgery, and he took the risk of trying the chloroform himself proving that he was dedicated to improving and solving the problems of surgery. Yet, there was a lot of opposition to chloroform due to it being a new and untested gas. Surgeons did not know how much dosage to give their patients or whether there would be long-term side effects. There was also the fact that the use of chloroform caused an increase in deaths, since the patients were given a bigger dosage of chloroform that was necessary. This scared the many surgeons into not using it. There were also other who opposed chloroform because they believed that easing the pain of childbirth, it would make it unnatural and was an act against God. In addition to this, whilst the patient is unconscious surgeons became more confident and attempt more complex operations allowing infections deeper into the body and causing more blood loss. This also contributed to the rise in number of deaths since the introduction of chloroform. Yet, James Simpson soon got many people to realise that his theory was accurate and it was soon accepted. When Queen Victoria used chloroform when delivering her eighth child in 1857, the public along with many other surgeons began using it as an anaesthetic and this soon became a part of surgical practise. However although James Simpson had already tried the anaesthetic on himself, it almost immediately became clear that there were very serious side effects associated with its use and it was known to cause death in a number of instances. From 1864, numerous studies were conducted in an attempt to determine whether chloroform affected the respiratory system or the circulatory system. The major health effects of chloroform surround acute inhalation which leads to depression which is why it was used for a long time as an anaesthetic. Chronic exposure to chloroform was associated with affects on the liver, kidney, and central nervous system. The evidence that chloroform was dangerous and fatal in numerous ways added to the opposition and causes us to believe whether James Simpson really was responsible for an important breakthrough in surgery. In addition to this there were many other breakthroughs by many other people who would be considered to be more important since their discoveries caused essential progress in solving the problems of surgery. Louis Pasteur was extremely vital as he was responsible for the development of the Germ theory, along with Robert Koch. The French scientist was also accountable for the many vaccines such as Chicken cholera, Rabies and Anthrax. Of course, this was accentuated by the rivalry between Pasteur and Koch since, they were both ambitious and nationalistic and France had lost a bitter war to Germany in 1870-71. Joseph Lister was then able to use the germ theory to uncover another significant discovery: antiseptics. This included sterilisation of all equipment, including doctor's hands, throughout the surgery. His reasoning behind this was to reduce the number of patients dying from infection passed on from bacteria on clothing and apparatus. This was vital because many people were dying from infection at the time and there were no advances to decrease the numbers until Lister's antiseptics. Another individual who was able to put the germ theory to good use was John Snow, who was responsible for discovering the cause of cholera, a big killer during the 1800s. He discovered that cholera was spread by drinking water that contained bacteria. Snow was one of the first physicians to study and calculate dosages for the use of ether and chloroform as surgical anaesthetics, allowing patients to undergo surgical and other procedures without the distress and pain they would otherwise experience. He personally administered chloroform to Queen Victoria when she gave birth to the last two of her nine children, leading to wider public acceptance of obstetric anaesthesia. The fact that there were many other individuals who were able to discover other vital things prevents James Simpson from solely being responsible for solving the problems of surgery. John Snow also proves that James Simpson was not the first to come up with the idea of ‘anaesthetics', and therefore cannot really be responsible for the discovery although he played a major role in coming across chloroform. In conclusion, I believe that James Simpson's role was not very significant in the attempts to solve the problems of surgery. This is because he was able to use other people's ideas, such as John Snow, to actually discover the anaesthetic. In addition to this, there were many other individuals and factors such as War and Technology that would have impacted surgery on a bigger scale than that of James Simpson's discovery of chloroform as an anaesthetic. Although we can see his dedication in proving that chloroform was a suitable anaesthetic we can also see that there was a lot of scope for other individuals to find an anaesthetic that may have proved to be less fatal.